Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Verisk Analytics, Inc. | y90612e8vk.htm |
| EX-1.1 - EX-1.1 - Verisk Analytics, Inc. | y90612exv1w1.htm |
EXHIBIT 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth information regarding our ratio of earnings to combined fixed
charges for the year ended December 31, 2010, as adjusted to give effect to the offering of
our 5.800% Senior Notes and the
application of the net proceeds therefrom, and for the historical periods shown. For purposes of
determining the ratio of earnings to combined fixed charges, earnings consist of income from
continuing operations before income taxes with applicable adjustments. Combined fixed charges
consist of capitalized interest credit, interest factor in rental expense and other interest and
fixed charges.
In computing the pro forma ratio,
the historical ratio is adjusted by the pro forma interest
expense amount calculated as follows:
| (1) | add to historical fixed charges the increase in interest costs resulting from the issuance of our 5.800% Senior Notes that were used to refinance our revolving credit facility; and | ||
| (2) | deduct from historical fixed charges the decrease in interest costs resulting from the retirement of any debt presently outstanding (but only for the period of time outstanding if less than one year), which will be retired with a portion of the proceeds from the offering. |
The
pro forma ratio does not reflect interest costs from our 5.800%
Senior Notes in excess of the amount
used to refinance existing debt.
| For the Fiscal Years Ended December 31, | ||||||||||||||||||||||||
| Pro Forma | ||||||||||||||||||||||||
| 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
| (in thousands, except for ratios) | ||||||||||||||||||||||||
Earnings: |
||||||||||||||||||||||||
Income from continuing operations before
income taxes |
$ | 406,650 | $ | 406,650 | $ | 264,605 | $ | 278,899 | $ | 258,147 | $ | 232,777 | ||||||||||||
Fixed charges |
51,437 | 51,437 | 51,243 | 46,130 | 36,747 | 29,823 | ||||||||||||||||||
Total earnings available for fixed charges |
$ | 458,087 | $ | 458,087 | $ | 315,848 | $ | 325,029 | $ | 294,894 | $ | 262,600 | ||||||||||||
Fixed Charges: |
||||||||||||||||||||||||
Interest expense |
$ | 34,664 | $ | 34,664 | $ | 35,265 | $ | 31,316 | $ | 22,928 | $ | 16,668 | ||||||||||||
Interest factor in rental expense (1) |
16,773 | 16,773 | 15,978 | 14,814 | 13,819 | 13,155 | ||||||||||||||||||
Total fixed charges |
$ | 51,437 | $ | 51,437 | $ | 51,243 | $ | 46,130 | $ | 36,747 | $ | 29,823 | ||||||||||||
Adjustments |
||||||||||||||||||||||||
Estimated net increase in interest expense
from refinancing |
11,470 | |||||||||||||||||||||||
Total pro forma fixed charges |
$ | 62,907 | ||||||||||||||||||||||
Ratio of Earnings to Fixed Charges |
7.3 | x | 8.9 | x | 6.2 | x | 7.0 | x | 8.0 | x | 8.8 | x | ||||||||||||
| (1) | Fixed charges consist of interest and our estimate of an appropriate portion of rental expenses representative of the interest factor. Our estimate of interest within rental expense is estimated to be one-third of rental expense. |