EX-12.1 2 exhibit121q420170930.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1

MTS Systems Corporation
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)

 
 
Fiscal Year Ended
 
 
September 28,
2013
 
September 27,
2014
 
October 3,
2015
 
October 1,
2016
 
September 30,
2017
Ratio of Earnings to Fixed Charges (1)
 
33.38

 
21.16

 
19.89

 
3.97

 
1.71

 
 
 
 
 
 
 
 
 
 
 
Reconciliation
 
 
 
 
 
 
 
 
 
 
Income from continuing operations before
taxes
 
$
79,254

 
$
58,443

 
$
59,172

 
$
33,512

 
$
23,798

Fixed charges
 
2,448

 
2,899

 
3,133

 
11,277

 
33,720

Earnings for computation
 
$
81,702

 
$
61,342

 
$
62,305

 
$
44,789

 
$
57,518

 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
 
 
 
 
 
 
 
 
 
Interest on indebtedness and amortization
of debt discount
 
591

 
1,003

 
1,204

 
8,926

 
31,218

Interest expense on rental expense (1/3 rent)
 
1,857

 
1,896

 
1,929

 
2,351

 
2,502

Total fixed charges
 
$
2,448

 
$
2,899

 
$
3,133

 
$
11,277

 
$
33,720

Lease expense
 
5,570

 
5,687

 
5,787

 
7,053

 
7,506

Interest income
 
(257
)
 
(311
)
 
(409
)
 
(437
)
 
(397
)
Interest expense
 
591

 
1,003

 
1,204

 
8,926

 
31,218

Net interest
 
$
334

 
$
692

 
$
795

 
$
8,489

 
$
30,821


(1) For the purposes of calculating the ratio of earnings to fixed charges, “earnings” consists of income (loss) from continuing operations before income taxes, fixed charges and amortization of capitalized interest, but excludes equity method investment earnings and capitalized interest. “Fixed charges” consists of (i) interest on indebtedness, whether expensed or capitalized, (ii) that portion of rental expense which we believe to be representative of interest (one-third of rental expense) and (iii) amortization of debt discount and expense.