EX-99 2 q2_ex99b.txt Exhibit 99.1(b) CNF INC. COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Dollars in thousands) Six Months Ended June 30, ------------------------- 2003 2002 --------- --------- Combined Fixed Charges and Preferred Stock Dividends: Interest Expense $15,023 $11,523 Capitalized Interest 134 368 Amortization of Debt Expense 663 658 Dividend Requirement on Series B Preferred Stock [1] 5,069 5,208 Dividend Requirement on Preferred Securities of Subsidiary Trust 3,126 3,126 Interest Component of Rental Expense [2] 15,367 11,674 --------- --------- $39,382 $32,557 --------- --------- Earnings: Income Before Taxes $59,548 $69,106 Fixed Charges 39,382 32,557 Capitalized Interest (134) (368) Preferred Dividend Requirements [3] (5,069) (5,208) --------- --------- $93,727 $96,087 --------- --------- Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends: 2.4x 3.0x ========= ========= [1] Dividends on shares of the Series B cumulative convertible preferred stock are used to pay debt service on notes issued by CNF'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 deducted in the determination of Income Before Taxes.