EX-12.1 2 exhibit_12-1.htm STATEMENT RE COMPUTATION OF RATIOS exhibit_12-1.htm
Exhibit 12.1
STATEMENT RE COMPUTATION OF RATIOS
 
 

 
Nine Months Ended
  
Year Ended December 31,
  
 
September 30, 2009
  
2008
  
2007
  
2006
  
2005
  
2004
  
 
(in thousands, except ratios)
  
                         
Earnings:
                        
Pre-tax income (loss)(5)
 $ (44,919 ) $ 18,582   $ (43,550 ) $ 47,594   $ 27,528   $ (9,406 )
Less: income from equity investees
   90     93     358     33     82     -  
    (45,009 )   18,489     (43,908 )   47,561     27,446     (9,406 )
                                     
Fixed charges (1):
                                    
Interest expense, gross (2) (5)
   53,319     94,177     100,935     22,426     18,944     13,145  
Interest portion of rent expense
   3,874     5,163     4,098     2,241     2,512     2,696  
                                     
a) Fixed charges
   57,193     99,340     105,033     24,667     21,456     15,841  
                                     
b) Earnings for ratio (3)
 $ 12,184   $ 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
 $ (45,009 ) $ -   $ (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 (loss) from continuing operations before income taxes, less income (loss) from equity investees, plus fixed charges.
(4)  
Due to Itron's losses in the nine months ended September 30, 2009, and the years ended December 31, 2007 and 2004, the coverage ratio was less than 1:1. Additional earnings of $45,009, $43,908, and $9,406 would have been needed to achieve a coverage ratio of 1:1 in each of those respective periods.
(5)  
On January 1, 2009, we adopted FSP 14-1 and applied it retrospectively to all periods for which our convertible notes 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.