EX-12.B 7 a98854exv12wb.txt EXHIBIT 12.B EXHIBIT 12(b) CNF INC. COMPUTATION OF RATIOS OF EARNINGS (LOSS) TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
THREE MONTHS ENDED MARCH 31, YEAR ENDED DECEMBER 31, ---------------- --------------------------------------------------------- (DOLLARS IN THOUSANDS) 2004 2003 2003 2002 2001 2000 1999 ---------------------- ------- ------- -------- --------- --------- --------- ---------- Combined Fixed Charges and Preferred Stock Dividends: Interest expense $ 9,040 $ 9,272 $ 30,071 $ 23,558 $ 27,992 $ 29,972 $ 25,972 Capitalized interest -- 46 241 455 864 4,636 5,864 Amortization of debt expense 334 331 1,354 1,321 1,064 1,044 908 Dividend requirement on Series B Preferred Stock (1) 2,469 2,534 10,072 10,331 10,606 10,808 10,992 Dividend requirement on preferred securities of subsidiary trust -- -- 6,250 6,250 6,250 6,250 6,250 Interest component of rental expense (2) 6,486 7,383 17,138 19,564 25,033 38,161 41,363 ------- ------- -------- -------- --------- --------- -------- Fixed Charges $18,329 $19,566 $ 65,126 $ 61,479 $ 71,809 $ 90,871 $ 91,349 ======= ======= ======== ======== ========= ========= ======== Earnings (Loss): Income (Loss) from continuing operations before taxes (3) $43,326 $29,435 $156,016 $146,244 $(695,933) $ 261,196 $332,260 (Income) Loss from equity-method investment (2,392) (2,976) (20,718) (18,188) 9,415 560 -- ------- ------- -------- --------- --------- --------- -------- 40,934 26,459 135,298 128,056 (686,518) 261,756 332,260 Fixed charges 18,329 19,566 65,126 61,479 71,809 90,871 91,349 Capitalized interest -- (46) (241) (455) (864) (4,636) (5,864) Preferred dividend requirements (4) (2,469) (2,534) (10,072) (10,331) (10,606) (10,808) (10,992) ------- ------- -------- -------- --------- --------- -------- $56,794 $43,445 $190,111 $178,749 $(626,179) $ 337,183 $406,753 ======= ======= ======== ======== ========= ========= ======== Ratio 3.1x 2.2x 2.9x 2.9x (8.7)x 3.7x 4.5x Deficiency in the coverage of fixed charges by earnings (loss) before fixed charges -- -- -- -- (697,988) -- -- ======= ======= ======== ======== ========= ========= ========
----------------------------- (1) Dividends on shares of the Series B cumulative convertible preferred stock are used to pay debt service on notes issued by the CNF's Thrift and Stock Plan. (2) Estimate of the interest portion of lease payments. (3) For the year ended December 31, 2001, results included a $652.2 million loss from restructuring charges at Forwarding and Menlo Worldwide Logistics' $47.5 million loss from the business failure of a customer. (4) Preferred stock dividend requirements included in Combined Fixed Charges but not deducted in the determination of Income (Loss) from Continuing Operations Before Income Taxes.