EX-12 3 dex12.htm STATEMENT RE: COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES Statement re: computation of the ratio of earnings to fixed charges

Exhibit 12

AIRGAS, INC.

COMPUTATION OF FINANCIAL RATIOS

(In thousands, except ratios)

 

Ratio of Earnings to Fixed Charges

    2007     2008     2009     2010     2011  

EARNINGS COMPUTATION:

           

Add:

           

Pretax income from continuing operations before equity earnings and minority interest

    $ 257,144      $ 370,762      $ 429,353      $ 314,100      $ 406,123   

Fixed charges

      106,727        143,738        133,847        107,843        98,542   
                                        
     363,871        514,500        563,200        421,943        504,665   
                                        

Subtract:

           

Preferred dividend requirements of consolidated affiliate

      (4,589 )      (1,147 )      —          —          —     

Capitalized interest

      (502 )      (1,647 )      (3,400 )      (2,873 )      (2,336 ) 
                                        

Earnings for purposes of computation

    $ 358,780      $ 511,706      $ 559,800      $ 419,070      $ 502,329   
                                        

FIXED CHARGES COMPUTATION:

           

Interest (1)

    $ 76,227      $ 110,888      $ 101,279      $ 74,312      $ 65,055   

Estimate of the interest component of rent expense

      25,911        31,703        32,568        33,531        33,487   

Preferred dividend requirements of consolidated affiliates (2)

      4,589        1,147        —          —          —     
                                        

Fixed charges for purposes of computation

    $ 106,727      $ 143,738      $ 133,847      $ 107,843      $ 98,542   
                                        

RATIO OF EARNINGS TO FIXED CHARGES

      3.36X        3.56X        4.18X        3.89X        5.10X   

 

(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.