EX-12.1 7 d455500dex121.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 29,
2012
    December 31,
2011
    January 1,
2011
    January 2,
2010
    January 3,
2009
 

Earnings, as defined:

          

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

   $ 263,606      $ 284,822      $ 211,304      $ 51,628      $ 137,844   

Fixed charges

     163,475       183,030       174,045       190,421       178,731  

Amortization of capitalized interest

     2,842       3,252       3,824       3,722       3,632  

Interest capitalized

     (1,155     (2,043     (2,190     (6,559     (4,047

Noncontrolling interest in pre-tax income

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total earnings, as defined

   $ 428,768      $ 469,061      $ 385,964      $ 238,039      $ 316,002   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges, as defined:

          

Interest expense

   $ 130,094      $ 148,759      $ 139,827      $ 158,567      $ 155,247   

Amortized premiums, discounts and capitalized expenses related to indebtedness

     9,168       10,367       12,739       10,967       6,032  

Interest factor in rental expenses

     24,213       23,904       21,479       20,887       17,452  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges, as defined

   $ 163,475      $ 183,030      $ 174,045      $ 190,421      $ 178,731   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges

     2.62       2.56       2.22       1.25       1.77  

 

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.