EX-12.1 5 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

Ratio of Earnings to Fixed Charges

 

     Successor           Predecessor  
     Nine Months
Ended
December 31,
2007
          Three Months
Ended
March 25,
2007
   Years Ended December 31,  
             2006    2005    2004  

Earnings

                  

- Pre-tax (loss) income

   $ (5.0 )        $ 16.6    $ 140.6    $ 49.5    $ (18.6 )

- Fixed charges

     160.4            17.9      99.7      96.3      102.8  
                                          

Net earnings

   $ 155.4          $ 34.5    $ 240.3    $ 145.8    $ 84.2  
                                          

Fixed Charges

                  

- External interest expense

   $ 151.0          $ —      $ —      $ —      $ —    

- Intercompany interest expense, net

     —              15.8      91.6      88.4      93.6  

- Amortization of deferred financing costs

     7.2            —        —        —        —    

- Estimate of interest expense within rental expense

     2.2            2.1      8.1      7.9      9.2  
                                          

Total fixed charges

   $ 160.4          $ 17.9    $ 99.7    $ 96.3    $ 102.8  
                                          

Ratio of earnings to fixed charges(1)

     0.97 X          —        —        —        —    

Deficiency

     5.0            —        —        —        —    

 

(1) For purposes of computing the ratio of earnings to fixed charges, earnings consist of income before income tax plus fixed charges. Fixed charges consist of interest expense and a portion of operating rental expense that management believes is representative of the interest component of rental expense. For periods in which the ratio of earnings is less than 1.0, the amounts shown as Deficiency represent the additional earnings that would be necessary to raise the ratio to 1.0. For the Predecessor periods, the ratio of earnings to fixed charges is not meaningful, given the fact that debt was not held by the Predecessor business.