EX-12.1 7 d263461dex121.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

Exhibit 12.1

Hanesbrands Inc.

Ratio of Earnings to Fixed Charges

(Dollars in thousands)

(Unaudited)

 

     Years Ended  
     December 31,
2011
    January 1,
2011
    January 2,
2010
    January 3,
2009
    December 29,
2007
 

Earnings, as defined:

          

Income from continuing operations before income tax expense, noncontrolling interest and income/loss from equity investees

   $ 315,877      $ 234,534      $ 59,449      $ 163,195      $ 185,321   

Fixed charges

     183,519       174,520       191,442       179,003       223,395  

Amortization of capitalized interest

     3,252       3,824       3,722       3,632       3,676  

Interest capitalized

     (2,043     (2,190     (6,559     (4,047     (2,184

Noncontrolling interest in pre-tax income

     —          (1,019     (1,173     (158     (1,195
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total earnings, as defined

   $ 500,605      $ 409,669      $ 246,881      $ 341,625      $ 409,013   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges, as defined:

          

Interest expense

   $ 148,854      $ 139,923      $ 159,222      $ 155,280      $ 201,131   

Amortized premiums, discounts and capitalized expenses related to indebtedness

     10,367       12,739       10,967       6,032       6,475  

Interest factor in rental expenses

     24,298       21,858       21,253       17,691       15,789  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges, as defined

   $ 183,519      $ 174,520      $ 191,442      $ 179,003      $ 223,395   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges

     2.73       2.35       1.29       1.91       1.83  

 

Note:   The Ratio of Earnings to Fixed Charges should be read in conjunction with our consolidated financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations incorporated by reference in this Form 10-K. The interest expense included in the fixed charges calculation above excludes interest expense relating to the Company’s uncertain tax positions. The interest factor in rental expenses is calculated as one-third of rent expense.