EX-12 3 arg-33112x10xkex12.htm COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES ARG - 3.31.12 - 10-K EX. 12


Exhibit 12
AIRGAS, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES


(In thousands, except ratios)            
Ratio of Earnings to Fixed Charges
2008
 
2009
 
2010
 
2011
 
2012
EARNINGS COMPUTATION:
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
Pretax income from continuing operations before
   equity earnings and minority interest
$
371,658

 
$
431,269

 
$
314,046

 
$
406,933

 
$
492,166

Fixed charges
143,738

 
133,847

 
107,843

 
98,542

 
103,227

 
$
515,396

 
$
565,116

 
$
421,889

 
$
505,475

 
$
595,393

Subtract:
 
 
 
 
 
 
 
 
 
Preferred dividend requirements of consolidated affiliate
(1,147
)
 
—

 
—

 
—

 
—

Capitalized interest
(1,647
)
 
(3,400
)
 
(2,873
)
 
(2,336
)
 
(869
)
Earnings for purposes of computation
$
512,602

 
$
561,716

 
$
419,016

 
$
503,139

 
$
594,524

FIXED CHARGES COMPUTATION:
 
 
 
 
 
 
 
 
 
Interest (1)
$
110,888

 
$
101,279

 
$
74,312

 
$
65,055

 
$
69,715

Estimate of the interest component of rent expense
31,703

 
32,568

 
33,531

 
33,487

 
33,512

Preferred dividend requirements of consolidated affiliates (2)
1,147

 
—

 
—

 
—

 
—

Fixed charges for purposes of computation
$
143,738

 
$
133,847

 
$
107,843

 
$
98,542

 
$
103,227

RATIO OF EARNINGS TO FIXED CHARGES
3.57X

 
4.20X

 
3.89X

 
5.11X

 
5.76X

 
 
 
 
 
 
 
 
 
 
(1) Includes interest expense, capitalized interest, amortization of capitalized financing costs and discount on trade receivable securitization.
 
 
 
 
 
 
 
 
 
 
(2) Preferred stock of National Welders was converted to Airgas common stock on July 3, 2007.


Note: Prior year pre-tax income amounts have been adjusted for the Company's retrospective application of the change in the method of accounting for the portion of the Company's hardgoods inventory valued using the last-in, first-out (“LIFO”) inventory costing method to the average-cost method.