EX-12.1 2 itriex-12163011.htm STATEMENT RE COMPUTATION OF RATIOS ITRI EX-12.1 6.30.11


Exhibit 12.1
STATEMENT RE COMPUTATION OF RATIOS
 
 
 
Six Months Ended
June 30, 2011
 
Year Ended December 31,
 
 
 
 
2010
 
2009
 
2008
 
2007
 
2006 (5)
 
 
 
(in thousands, except ratios)
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax income (loss)
 
71,043

 
$
120,744

 
$
(46,074
)
 
$
18,582

 
$
(43,550
)
 
$
52,235

 
Less: income from equity investees
 
108

 
614

 
277

 
93

 
358

 
33

 
 
 
70,935

 
120,130

 
(46,351
)
 
18,489

 
(43,908
)
 
52,202

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, gross (2)
 
23,534

 
54,904

 
70,311

 
94,177

 
100,935

 
17,785

 
Interest portion of rent expense
 
3,445

 
5,125

 
5,241

 
5,163

 
4,098

 
2,241

 
 
 
 
 
 
 
 
 
 
 
 
 
 
a) Fixed charges
 
26,979

 
60,029

 
75,552

 
99,340

 
105,033

 
20,026

 
 
 
 
 
 
 
 
 
 
 
 
 
 
b) Earnings for ratio (3)
 
$
97,914

 
$
180,159

 
$
29,201

 
$
117,829

 
$
61,125

 
$
72,228

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings to fixed charges (b/a)
 
3.6

 
3.0

 
— (4)

 
1.2

 
— (4)

 
3.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deficit of earnings to fixed charges
 
$
—

 
$
—

 
$
(46,351
)
 
$
—

 
$
(43,908
)
 
$
—


(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 for the years ended December 31, 2009 and 2007, the coverage ratio was less than 1:1. Additional earnings of $46,351 and $43,908 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 Financial Accounting Standards Board (FASB) Staff Position (FSP) APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) (FSP 14-1) relating to our convertible senior subordinate notes issued in August 2006. (The guidance in FSP 14-1 is now embedded within Accounting Standards CodificationTM (ASC) 470-20). We used the SEC staff's Alternative A transition election for presenting prior financial information, and therefore the financial information as of and for the year ended December 31, 2006 has not been adjusted and is not comparable to the financial information as of and for the years ended December 31, 2010, 2009, 2008, and 2007.