EX-12.1 4 y83930exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(AMOUNTS IN THOUSANDS, EXCEPT RATIO DATA)
                                                 
    Fiscal Year
                                            Pro Forma
    2005   2006   2007   2008   2009   2009(2)
     
 
                                                
Interest Expense
     34,390       34,272       33,753       33,639       33,524       167,967  
 
                                                
Appropriate Portion (1/3) of Rent Expense
     33,219       35,330       41,452       48,995       46,677       104,523  
     
 
                                                
Fixed Charges
     67,609       69,602       75,205       82,634       80,201       272,490  
     
 
                                                
Preference Security Dividends(1)
     44,408       21,459       —       —       —       —  
     
 
                                                
Fixed Charges Plus Preference Security Dividends
     112,017       91,061       75,205       82,634       80,201       272,490  
     
 
                                                
Pre-tax Income
     178,269       248,433       294,821       146,304       211,583       154,360  
 
                                                
Fixed Charges
     67,609       69,602       75,205       82,634       80,201       272,490  
     
 
                                                
Earnings Before Income Taxes and Fixed Charges
     245,878       318,035       370,026       228,938       291,784       426,850  
     
 
                                                
Ratio of Earnings to Fixed Charges
     3.6       4.6       4.9       2.8       3.6       1.6  
     
 
                                                
Ratio of Earnings to Fixed Charges and Preference Security Dividends
     2.2       3.5       4.9       2.8       3.6       1.6  
     
 
1   Preference security dividends represent the amount of pre-tax earnings required to pay the dividends on outstanding preference securities for each of the years presented. We made inducement payments to the holders of our preferred stock in connection with the conversions of such stock in 2005 and 2006 of $12.9 million and $10.2 million, respectively. The inducement payments were based on the net present value of the dividends that we would have been obligated to pay the preferred stockholders through the earliest date on which it was estimated that we would have had the right to convert the convertible preferred stock, net of the net present value of the dividends payable over the same period on the shares of common stock into which the Series B convertible preferred stock was convertible. Therefore, such amounts are considered to be dividends on preference securities for the periods noted and are included in the calculations of preference security dividends set forth above.
 
2   Reflects the proposed acquisition of Tommy Hilfiger B.V. and the incurrence and repayment of debt in connection therewith.