EX-12.1 7 d65409exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
LENNOX INTERNATIONAL INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions of Dollars Except Ratios)
                                                         
    Nine Months Ended                            
    September 30,   Year End
    2008   2007   2006   2005   2004   2003        
Earnings:
                                                       
 
                                                       
Add:
                                                       
Pretax income (loss) from continuing operations before minority interest and income or loss from equity investees
  $ 183.6     $ 246.9     $ 209.9     $ 220.5     $ (73.1 )   $ 125.3      
Fixed charges (calculated below)
    22.3       23.6       23.5       35.0       54.4       54.8      
Amortization of capitalized interest (a)
                                           
Distributed income of equity investees
          12.3       5.4             2.8                
LII’s share of pre-tax losses of equity investee for which charges arising from guarantees are included in fixed charges
                                           
             
Subtotal
    205.9       282.8       238.8       255.5       (15.9 )     180.1          
             
 
                                                       
Subtract:
                                                       
Interest capitalized (b)
    1.0       1.8       1.0                            
Preference security divdend requirements of consoldiated subsidiaries
                                           
Minority interest in pre-tax income of subsidiaries that have not incurred fixed charges
    0.2       0.7       0.5       0.3       1.0       1.7          
             
Subtotal
    1.2       2.5       1.5       0.3       1.0       1.7          
             
 
                                                       
Total earnings:
  $ 204.7     $ 280.3     $ 237.3     $ 255.2     $ (16.9 )   $ 178.4          
             
 
                                                       
Fixed Charges:
                                                       
 
                                                       
Interest expense
  $ 13.2     $ 10.8     $ 10.1     $ 19.4     $ 32.3     $ 32.0          
Capitalized interest expense (b)
    1.0       1.8       1.0                            
Amortized premiums, discounts and capialized interst expense related to indebteness (b)
    0.6       0.7       1.0       1.5       2.1       2.0          
Estimate of the interest within rental expense
    7.5       10.3       11.4       14.1       20.0       20.8          
Preference security dividend requirements of consolidated subsidiaries
                                           
             
Total fixed charges:
  $ 22.3     $ 23.6     $ 23.5     $ 35.0     $ 54.4     $ 54.8          
 
                                                       
Ratio of earnings to fixed charges:
    9.18       11.88       10.10       7.29       (c)     3.26          
             
 
(a)   Amount of amortization expense related to capitalized interest cannot be disaggregated from the normal depreciation that is recorded on a monthly basis.
 
(b)   LII began capitalizing interest expense in 2006.
 
(c)   Earnings were inadequate to cover fixed charges by $71.3 million for the year ended December 31, 2004.