EX-12 8 f04530exv12.htm EXHIBIT 12 exv12
 

Exhibit 12

CNF INC.
COMPUTATION OF RATIOS OF EARNINGS (LOSS) TO FIXED CHARGES
Year Ended December 31,

(Dollars in thousands)

                                     
    2004     2003     2002     2001     2000  
Fixed Charges:
                                          
Interest expense
   $ 39,695     $ 29,597     $ 22,825     $ 27,009     $ 29,967  
Capitalized interest
     173       241       455       864       3,082  
Amortization of debt expense
     3,952       1,118       1,114       857       837  
Dividend requirement on Series B Preferred Stock (1)
     9,797       10,072       10,331       10,606       10,808    
Interest component of rental expense (2)
     6,590       8,976       8,974       12,675       9,830  
 
                              
Fixed Charges
   $ 60,207     $ 50,004     $ 43,699     $ 52,011     $ 54,524    
 
                              
Earnings (Loss):
                                        
Income (Loss) from continuing operations before taxes (3)
   $ 246,823     $ 197,517     $ 152,328     $ 85,007     $ 212,054    
(Income) Loss from equity-method investment
     (18,253 )     (20,718 )     (18,188 )     9,415       560  
 
                              
 
     228,570       176,799       134,140       94,422       212,614    
Fixed charges
     60,207       50,004       43,699       52,011       54,524  
Capitalized interest
     (173 )     (241 )     (455 )     (864 )     (3,082 )
Preferred dividend requirements (4)
     (9,797 )     (10,072 )     (10,331 )     (10,606 )     (10,808 )
 
                              
 
   $ 278,807     $ 216,490     $ 167,053     $ 134,963     $ 253,248    
 
                              
Ratio
     4.6 x     4.3 x     3.8 x     2.6 x     4.6 x

(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, Menlo Worldwide Logistics results included a $47.5 million loss from the business failure of a customer.
 
(4)   Preferred stock dividend requirements included in Fixed Charges but not deducted in the determination of Income (Loss) from Continuing Operations Before Income Taxes.