EX-12 10 ex12-1.txt EXHIBIT 12.1 Exhibit 12.1 THE WARNACO GROUP, INC. Computation of Ratio of Earnings to Fixed Charges
Pro Forma ------------------- Combined Last Twelve Months Fiscal Fiscal Ended ------------------------------------------------------------- Year April 5, 1998 1999 2000 2001 2002 2002 2003 -------- -------- -------- ---------- -------- ------ ---- Fixed charges: Interest expense $ 63.8 $ 81.0 $ 172.2 $ 122.8 $ 22.0 $ 31.7 $ 31.1 Interest on operating leases 31.3 53.8 59.3 45.2 27.6 27.3 24.3 ------- -------- -------- ---------- --------- ------- ------- Total fixed charges $ 95.1 $ 134.8 $ 231.5 $ 168.0 $ 49.6 $ 59.0 $ 55.4 ======= ======== ======== ========== ========= ======= ======= Pre-tax income (loss) from continuing operations $ 21.8 $ 124.4 $ (355.8) $ (710.2) $ (109.3) $ 51.0 $ 85.0 Add: Fixed charges 95.1 134.8 231.5 168.0 49.6 59.0 55.4 ------- -------- -------- ---------- --------- ------- ------- Total earnings (as defined) $ 116.9 $ 259.2 $ (124.3) $ (542.2) $ (59.7) $ 110.0 $ 140.4 ======= ======== ======== ========== ========= ======= ======= Ratio of Earnings to Fixed Charges(1) 1.23 1.92 n/a n/a n/a 1.87 2.54 ======= ======== ======== ========== ========= ======= ======= Deficit of Earnings to Fixed Charges(1) n/a n/a $ 355.8 $ 710.2 $ 109.3 n/a n/a ======= ======== ======== ========== ========= ======= =======
(1) For the purposes of computing the ratio of earnings to fixed charges, earnings are defined as income from continuing operations before income taxes, plus fixed charges and less capitaized interest. Fixed charges are defined as the sum of interest expense, including the amortization of deferred financing costs, capitalized interest, and that portion of rental expense which we believe to be represetative of an interest factor. The deficit of earnings to fixed charges represents the amount of earnings that would be required to increase the ratio of earnings to fixed charges to 1.00 in those cases where earnings are less than the total fixed charges.