EX-12.1 22 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

GRAHAM PACKAGING HOLDINGS COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In thousands)

 

                                   Three
Months
Ended		  
     Year Ended December 31,     March 31,
2010		  
     2005     2006     2007     2008     2009    
     (In thousands)  

(Loss) income from continuing operations before income taxes(1)

    $ (37,687 )    $ (92,309 )    $ (183,323 )    $ (34,379 )    $ 51,609      $ (18,401 ) 

Plus fixed charges:

             

Interest expense

      184,995        205,405        206,017        180,278        176,897        45,384   

Capitalized interest

      6,070        9,482        5,715        3,933        3,399        1,085   

Portion of rent expense representative of interest expense

      16,197        17,912        18,343        17,343        16,767        4,362   

Plus income from equity investee

      —          —          —          —          (4 )      (31 ) 

Plus amortization of capitalized interest

      1,464        2,254        2,777        2,663        2,830        699   

Less capitalized interest

      (6,070 )      (9,482 )      (5,715 )      (3,933 )      (3,399 )      (1,085 ) 
                                                

Adjusted earnings

    $ 164,969      $ 133,262      $ 43,814      $ 165,905      $ 248,099      $ 32,013   

Fixed charges

    $ 207,262      $ 232,799      $ 230,075      $ 201,554      $ 197,063      $ 50,832   

Ratio of earnings to fixed charges

      —          —          —          —          1.3        —     

Deficiency of earnings to cover fixed charges

    $ 42,293      $ 99,537      $ 186,261      $ 35,649      $ —        $ 18,819   

 

(1) Amounts disclosed for 2005 are impacted by $0.7 million of noncontrolling interests.