EX-12.1 2 ex_12-1.htm STATEMENT RE COMPUTATION OF RATIOS ex_12-1.htm
Exhibit 12.1
STATEMENT RE COMPUTATION OF RATIOS
 
   
Three Months Ended
    
Year Ended December 31,
  
   
March 31, 2009
    
2008
    
2007
    
2006
    
2005
    
2004
  
   
(in thousands, except ratios)
  
                                     
Earnings:
                                    
Pre-tax income (loss)(5)
   $ (19,735 )   $ 18,582     $ (43,550 )   $ 47,594     $ 27,528     $ (9,406 )
Less: income from equity investees
     -       93       358       33       82       -  
      (19,735 )     18,489       (43,908 )     47,561       27,446       (9,406 )
                                                 
Fixed charges (1):
                                                
Interest expense, gross (2) (5)
     16,845       94,177       100,935       22,426       18,944       13,145  
Interest portion of rent expense
     1,237       5,163       4,098       2,241       2,512       2,696  
                                                 
a) Fixed charges
     18,082       99,340       105,033       24,667       21,456       15,841  
                                                 
b) Earnings for ratio (3)
   $ (1,653 )   $ 117,829     $ 61,125     $ 72,228     $ 48,902     $ 6,435  
                                                 
Ratios:
                                                
Earnings to fixed charges (b/a)
     -
(4)
     1.2       -
(4)
     2.9       2.3       -
(4)
                                                 
Deficit of earnings to fixed charges
   $ (19,735 )   $ -     $ (43,908 )   $ -     $ -     $ (9,406 )
 
(1)  
Fixed charges consist of interest on indebtedness and amortization of debt issuance costs plus that portion of lease rental expense representative of the interest factor.
(2)  
Interest expense, gross, includes amortization of prepaid debt fees and discount.
(3)  
Earnings for ratio consist of income from continuing operations before income taxes, less income (loss) from equity investees, plus fixed charges.
(4)  
Due to Itron's losses in the three months ended March 31, 2009, and the years ended December 31, 2007 and 2004, the ratio coverage was less than 1:1. Additional earnings of $19,735, $43,908, and $9,406 would have been needed to achieve a coverage of 1:1 in each of those respective periods.
(5)  
On January 1, 2009, we adopted FSP APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement), (FSP 14-1) and applied FSP 14-1 retrospectively to all periods for which our convertible debt was outstanding. Our convertible notes were issued in August 2006. Therefore, pre-tax income (loss) and interest expense, gross reflect this restatement beginning in the year ended December 31, 2006. Refer to Note 1 of the condensed consolidated financial statements for further disclosure of the adoption of FSP 14-1.