EX-12.(B) 10 dex12b.htm COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES Computation of ratios of earnings to combined fixed charges

Exhibit 12(b)

 

CNF INC.

 

COMPUTATION OF RATIOS OF EARNINGS (LOSS) TO COMBINED

FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

Year Ended December 31,

 

(Dollars in thousands)

    2003
     2002
     2001
     2000
     1999
  

Combined Fixed Charges and Preferred Stock Dividends:

                                         

Interest expense

    $ 30,071     $ 23,558     $ 27,992     $ 29,972     $ 25,972  

Capitalized interest

      241       455       864       4,636       5,864  

Amortization of debt expense

      1,354       1,321       1,064       1,044       908  

Dividend requirement on Series B Preferred Stock (1)

      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)

      17,138       19,564       25,033       38,161       41,363  
    
 
 
 
 

Fixed Charges

    $ 65,126     $ 61,479     $ 71,809     $ 90,871     $ 91,349  
    
 
 
 
 

Earnings (Loss):

                                         

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

    $ 156,016     $ 146,244     $ (695,933 )   $ 261,196     $ 332,260  

(Income) Loss from equity-method investment

      (20,718 )     (18,188 )     9,415       560       —    
    
 
 
 
 
       135,298       128,056       (686,518 )     261,756       332,260  

Fixed charges

      65,126       61,479       71,809       90,871       91,349  

Capitalized interest

      (241 )     (455 )     (864 )     (4,636 )     (5,864 )

Preferred dividend requirements (4)

      (10,072 )     (10,331 )     (10,606 )     (10,808 )     (10,992 )
    
 
 
 
 
     $ 190,111     $ 178,749     $ (626,179 )   $ 337,183     $ 406,753  
    
 
 
 
 

Ratio

      2.9 x     2.9 x     (8.7 )x     3.7 x     4.5 x

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.