EX-12.1 4 dex121.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

Exhibit 12.1

AutoNation, Inc.

Ratio of Earnings to Fixed Charges

(dollars in millions)

 

     Year Ended December 31,  
     2009     2008     2007     2006     2005  

Earnings

          

Income (loss) from continuing operations before income taxes

   $ 351.0      $ (1,401.4   $ 452.9      $ 520.4      $ 582.2   

Adjustment to exclude earnings from equity method investees

     (0.1     (0.7     (0.8     (1.7     (1.5

Fixed charges

     103.7        201.1        273.7        259.9        198.9   

Distributions from equity method investees

     1.3        0.3        1.0        1.6        1.2   

Interest capitalized

     (0.1     (0.8     (0.9     (1.1     (0.6
                                        

Earnings, as defined

   $ 455.8      $ (1,201.5   $ 725.9      $ 779.1      $ 780.2   
                                        

Fixed Charges

          

Floorplan interest expense(a)

   $ 37.4      $ 89.3      $ 135.8      $ 146.5      $ 112.9   

Other interest expense(b)

     42.6        89.4        114.1        90.8        63.3   

Capitalized interest costs

     0.1        0.8        0.9        1.1        0.6   

Interest component of rent expense(a)

     23.6        21.6        22.9        21.5        22.1   
                                        

Total Fixed Charges

   $ 103.7      $ 201.1      $ 273.7      $ 259.9      $ 198.9   
                                        

Ratio of Earnings to Fixed Charges

     4.4        (c     2.7        3.0        3.9   

 

(a) Includes amounts pertaining to discontinued operations.
(b) Other interest expense includes amortization of debt issuance costs.
(c) In the year ended December 31, 2008, earnings were insufficient to cover fixed charges by $1.40 billion due to non-cash impairment charges of $1.74 billion.