EX-99 3 q302_1a.txt Exhibit 99.1(a) CNF INC. COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (Dollars in thousands) Nine Months Ended September 30, 2002 2001 ---------- ---------- Fixed Charges: Interest Expense $17,336 $21,635 Capitalized Interest 398 697 Amortization of Debt Expense 990 772 Dividend Requirement on Series B Preferred Stock [1] 7,772 7,970 Interest Component of Rental Expense [2] 25,395 37,197 ---------- ---------- $51,891 $68,271 ---------- ---------- Earnings (Loss): Income (Loss) from Continuing Operations before Taxes $102,949 $(346,947) Fixed Charges 51,891 68,271 Capitalized Interest (398) (697) Preferred Dividend Requirements [3] (7,772) (7,970) ---------- ----------- $146,670 $(287,343) ---------- ----------- Ratio of Earnings (Loss) to Fixed Charges: 2.8x (4.2)x ========== =========== Deficiency in the coverage of Fixed Charges by Earnings (Loss) before Fixed Charges $ - $(355,614) ========== =========== [1] Dividends on shares of the Series B cumulative convertible preferred stock are used to pay debt service on notes issued by the Company's Thrift and Stock Plan. [2] Estimate of the interest portion of lease payments. [3] Preferred stock dividend requirements included in fixed charges but not included in the determination of Income (Loss) from Continuing Operations before Taxes.