Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - AUTONATION, INC. | a8k12712ratioofearningstof.htm |
Exhibit 12.1
AutoNation, Inc.
Statement Regarding Computation of Ratio of Earnings to Fixed Charges
($ in millions)
Nine Months Ended | Year Ended December 31, | |||||||||||||||||||||||
Earnings | September 30, 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 348.5 | $ | 381.3 | $ | 349.2 | $ | (1,401.5 | ) | $ | 450.8 | $ | 517.1 | |||||||||||
Adjustment to exclude earnings from equity method investees | — | — | (0.1 | ) | (0.7 | ) | (0.8 | ) | (1.7 | ) | ||||||||||||||
Fixed charges | 95.8 | 120.0 | 103.7 | 201.1 | 273.7 | 259.9 | ||||||||||||||||||
Distributions from equity method investees | — | — | 1.3 | 0.3 | 1.0 | 1.6 | ||||||||||||||||||
Interest capitalized | (0.9 | ) | (1.2 | ) | (0.1 | ) | (0.8 | ) | (0.9 | ) | (1.1 | ) | ||||||||||||
Earnings, as defined | $ | 443.4 | $ | 500.1 | $ | 454.0 | $ | (1,201.6 | ) | $ | 723.8 | $ | 775.8 | |||||||||||
Fixed Charges | ||||||||||||||||||||||||
Floorplan interest expense (a) | $ | 31.8 | $ | 42.8 | $ | 37.4 | $ | 89.3 | $ | 135.8 | $ | 146.5 | ||||||||||||
Other interest expense (b) | 49.0 | 56.6 | 42.6 | 89.4 | 114.1 | 90.8 | ||||||||||||||||||
Capitalized interest costs | 0.9 | 1.2 | 0.1 | 0.8 | 0.9 | 1.1 | ||||||||||||||||||
Interest component of rent expense | 14.1 | 19.4 | 23.6 | 21.6 | 22.9 | 21.5 | ||||||||||||||||||
Total fixed charges | $ | 95.8 | $ | 120.0 | $ | 103.7 | $ | 201.1 | $ | 273.7 | $ | 259.9 | ||||||||||||
Ratio of earnings to fixed charges | 4.6 | 4.2 | 4.4 | (c) | 2.6 | 3.0 | ||||||||||||||||||
(a) | Includes floorplan interest expense associated with discontinued operations. |
(b) | Other interest expense includes amortization of debt issuance costs. |
(c) | In the year ended December 31, 2008, earnings were insufficient to cover fixed charges by $1.40 billion due to non-cash impairment charges of $1.74 billion. |