EX-12.(A) 22 dex12a.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Computation of ratios of earnings to fixed charges

 

Exhibit 12.a

 

CNF INC.

COMPUTATION OF RATIOS OF EARNINGS (LOSS) TO FIXED CHARGES

Year Ended December 31,

 

(Dollars in thousands)

   

2002

     

2001

     

2000

     

1999

     

1998

  

Fixed Charges:

                                             

Interest expense

   

$

23,558

 

   

$

27,992

 

   

$

29,972

 

   

$

25,972

 

   

$

32,627

 

Capitalized interest

   

 

455

 

   

 

864

 

   

 

4,636

 

   

 

5,864

 

   

 

2,342

 

Amortization of debt expense

   

 

1,321

 

   

 

1,064

 

   

 

1,044

 

   

 

908

 

   

 

822

 

Dividend requirement on Series B Preferred Stock (1)

   

 

10,331

 

   

 

10,606

 

   

 

10,808

 

   

 

10,992

 

   

 

12,133

 

Interest component of rental expense (2)

   

 

19,564

 

   

 

25,033

 

   

 

38,161

 

   

 

41,363

 

   

 

40,750

 

    
  
  
  
  

Fixed Charges

   

$

55,229

 

   

$

65,559

 

   

$

84,621

 

   

$

85,099

 

   

$

88,674

 

    
  
  
  
  

Earnings (Loss):

                                             

Income (Loss) from continuing operations before taxes (3)

   

$

146,244

 

   

$

(695,933

)

   

$

261,196

 

   

$

332,260

 

   

$

253,812

 

Fixed charges

   

 

55,229

 

   

 

65,559

 

   

 

84,621

 

   

 

85,099

 

   

 

88,674

 

Capitalized interest

   

 

(455

)

   

 

(864

)

   

 

(4,636

)

   

 

(5,864

)

   

 

(2,342

)

Preferred dividend requirements (4)

   

 

(10,331

)

   

 

(10,606

)

   

 

(10,808

)

   

 

(10,992

)

   

 

(12,377

)

    
  
  
  
  
    

$

190,687

 

   

$

(641,844

)

   

$

330,373

 

   

$

400,503

 

   

$

327,767

 

    
  
  
  
  

Ratio

   

 

3.5

x

   

 

(9.8

)x

   

 

3.9

x

   

 

4.7

x

   

 

3.7

x

Deficiency in the coverage of fixed charges by earnings (loss) before fixed charges

   

 

—  

 

   

 

(707,403

)

   

 

—  

 

   

 

—  

 

   

 

—  

 

    
  
  
  
  
(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)   For the year ended December 31, 2001, results included a $652.2 million loss from restructuring charges at Emery and Menlo Worldwide Logistics’ $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.