EX-12.1 5 dex121.txt COMPUTATION OF RATIO OF EARNINGS Exhibit 12.1 ChipPAC, Inc. Computation of Ratio of Earnings to Fixed Charges (in thousands)
Nine Months Ended Years Ended December 31, September 30, ----------------------------------------------------------------------------- 1996 1997 1998 1999 2000 2001 ----------------------------------------------------------------------------- Pre-tax income (loss) from continuing operations $(2,742) $(55,789) $52,867 $(3,997) $18,060 $(37,916) Fixed Charges: Capitalized interest (A) 510 1,122 -- -- -- -- Interest expense 5,780 10,972 13,340 21,241 39,432 27,733 Rentals: Rental expenses (B) 1,667 1,433 2,532 1,633 1,733 2,981 Total fixed charges $7,957 $13,527 $15,872 $22,874 $41,165 $30,714 Pre-tax income (loss) from continuing charges, $5,215 $(42,262) $68,739 $18,877 $59,225 $(7,202) dividend accretion Ratio of earnings to fixed charges (C) (C) 4.3x (C)(D) 1.4x (C)
(A) Capitalized interest relates to the costs of plant and building improvements in China and building improvements in Korea. (B) Amounts represented one-third operating lease rental expense as a reasonable approximation of the interest portion thereof. (C) Due to ChipPAC's losses in the twelve months ended December 31, 1996, 1997, 1999 and the nine months ended September 30, 2001, the ratio coverage was less than 1:1. In order to achieve a coverage ratio of 1:1 for those periods, ChipPAC had to generate additional earnings of $2,742, $55,789, $3,997 and $37,916 respectively. (D) Included in earnings for the year ended December 31, 1999 was a non-recurring loss of $11,842 before income taxes relating to the change of control expenses. If these expenses had not occurred, the ratio of earnings to fixed charges would have been 1.3x.