EX-12 4 f16865exv12.htm EXHIBIT 12 exv12
 

Exhibit 12
CNF INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Year Ended December 31,
                                         
(Dollars in thousands)   2005     2004     2003     2002     2001  
Fixed Charges:
                                        
Interest expense
   $ 37,501     $ 39,695     $ 29,597     $ 22,825     $ 27,009  
Capitalized interest
     136       173       241       455       864  
Amortization of debt expense
     964       3,952       1,118       1,114       857  
Dividend requirement on Series B
                                        
Preferred Stock (1)
     9,114       9,797       10,072       10,331       10,606  
Interest component of rental expense (2)
     7,733       6,590       8,976       8,974       12,675  
 
                              
Fixed Charges
   $ 55,448     $ 60,207     $ 50,004     $ 43,699     $ 52,011  
 
                              
Earnings (Loss):
                                        
Income from continuing operations before taxes (3)
   $ 351,121     $ 246,823     $ 197,517     $ 152,328     $ 85,007  
(Income) Loss from equity-method investment
     (16,061 )     (18,253 )     (20,718 )     (18,188 )     9,415  
 
                              
 
     335,060       228,570       176,799       134,140       94,422  
Fixed charges
     55,448       60,207       50,004       43,699       52,011  
Capitalized interest
     (136 )     (173 )     (241 )     (455 )     (864 )
Preferred dividend requirements (4)
     (9,114 )     (9,797 )     (10,072 )     (10,331 )     (10,606 )
 
                              
 
   $ 381,258     $ 278,807     $ 216,490     $ 167,053     $ 134,963  
 
                              
Ratio
     6.9 x     4.6 x     4.3 x     3.8 x     2.6 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.