EX-12.1 4 0004.txt EX-12.1
CONSECO, INC. AND SUBSIDIARIES Computation of Ratio of Earnings to Fixed Charges, Preferred Dividends and Distributions on Company-Obligated Mandatorily Redeemable Preferred Securities of Subsidiary Trusts for the six months ended June 30, 2000 and the year ended December 31, 1999 (Dollars in millions) Six months ended Year ended June 30, December 31, 2000 1999 ---- ---- Pretax income (loss) from operations: Net income........................................................... $(327.3) $ 595.0 Add income tax expense (benefit)..................................... (32.9) 423.1 Add minority interest................................................ 74.7 132.8 Add extraordinary charge on extinguishment of debt................... .1 - ------- -------- Pretax income (loss) from operations....................... (285.4) 1,150.9 ------- -------- Add fixed charges: Interest expense on corporate debt, including amortization........... 116.0 169.6 Interest expense on finance debt..................................... 470.2 334.2 Interest expense on investment borrowings............................ 10.0 57.9 Portion of rental(1)................................................. 11.1 20.3 ------- -------- Fixed charges................................................... 607.3 582.0 ------- -------- Adjusted earnings............................................... $ 321.9 $1,732.9 ======= ======== Ratio of earnings to fixed charges.............................. .53X(2) 2.98X ==== ====== Ratio of earnings to fixed charges, excluding interest expense on debt related to finance receivables and other investments........................................... (2) 7.06X ======= ===== Fixed charges................................................... $ 607.3 $ 582.0 Add dividends on preferred stock, including dividends on preferred stock of subsidiaries (divided by the rate of income before minority interest and extraordinary charge to pretax income)........................................... 10.4 2.4 Add distributions on Company-obligated mandatorily redeemable preferred securities of subsidiary trusts........ 115.0 204.3 ------- -------- Fixed charges................................................... $ 732.7 $ 788.7 ======= ======== Adjusted earnings............................................... $ 321.9 $1,732.9 ======= ======== Ratio of earnings to fixed charges, preferred dividends and distributions on Company-obligated mandatorily redeemable preferred securities of subsidiary trusts................... .44X(3) 2.20X ===== ======== Ratio of earnings to fixed charges, preferred dividends and distributions on Company-obligated mandatorily redeemable preferred securities of subsidiary trusts, excluding interest expense on debt related to finance receivables and other investments................................................... (3) 3.38X ===== ====== (1) Interest portion of rental is assumed to be 33 percent. (2) For such ratios, adjusted earnings were $285.4 million less than fixed charges. Adjusted earnings for the six months ended June 30, 2000, included special charges of $327.2 million as described in greater detail in the note to the accompanying consolidated financial statements entitled "Special Charges and Recent Events". (3) For such ratios, adjusted earnings were $410.8 million less than fixed charges. Adjusted earnings for the six months ended June 30, 2000, included special charges of $327.2 million as described in greater detail in the note to the accompanying consolidated financial statements entitled "Special Charges and Recent Events".