EX-12 4 g17356exv12.htm EX-12 EX-12
Exhibit 12
VULCAN MATERIALS COMPANY AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

For the Years Ended December 31
Amounts in Thousands
                                         
    2008     2007     2006     2005     2004  
 
Fixed charges:
                                       
Interest expense before capitalization credits (1)
  $ 185,176     $ 53,348     $ 31,310     $ 39,080     $ 42,260  
Amortization of financing costs
    1,880       249       363       711       611  
One-third of rental expense
    30,800       27,358       27,240       22,520       16,553  
 
                             
Total fixed charges
  $ 217,856     $ 80,955     $ 58,913     $ 62,311     $ 59,424  
 
                             
 
                                       
Earnings from continuing operations before income taxes
  $ 75,058     $ 667,502     $ 703,461     $ 480,237     $ 375,566  
Minority interest in earnings (losses) of a consolidated subsidiary
    (283 )     151       0       0       0  
Fixed charges
    217,856       80,955       58,913       62,311       59,424  
Capitalized interest credits
    (14,243 )     (5,130 )     (5,000 )     (1,934 )     (1,980 )
Amortization of capitalized interest
    2,147       2,777       1,241       1,054       839  
 
                             
Earnings before income taxes as adjusted
  $ 280,535     $ 746,255     $ 758,615     $ 541,668     $ 433,849  
 
                             
 
                                       
Ratio of earnings to fixed charges
    1.3       9.2       12.9       8.7       7.3  
 
(1)   Does not include interest cost accrued on FIN 48 (FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109”) liabilities, which are included in our income tax provision for financial statement presentation purposes. The decision to exclude FIN 48 interest cost is primarily based on the fact that such accrued interest is not a current or predictable cash flow item.