EX-12.1 3 f92610p4exv12w1.txt EXHIBIT 12.1 . . . EXHIBIT 12.1 COMPUTATION OF EARNINGS TO FIXED CHARGES (In thousands)
SIX MONTHS SIX MONTHS SIX MONTHS FISCAL YEAR ENDED ENDED ENDED ENDED --------------------------------------------- ----- ----- ----- 1998 1999 2000 2001 JUNE 30, 2002 DEC 29, 2002 JUNE 29, 2003 ---- ---- ---- ---- ------------- ------------ ------------- > Income (loss) before income taxes, minority interest, equity in net loss of unconsolidated company and cumulative effect of change in accounting principle (3) $(337,474) $(307,667) $(79,566) $(301,886) $363,017 $(40,651) $11,499 Fixed charges (1) (4) 21,381 25,959 46,913 156,935 564 7,048 7,223 Total earnings (losses) and fixed charges (3) $(337,474) $(307,667) $(79,566) $(301,886) $363,581 $(40,651) $18,722 Fixed charges (1) (4) 21,381 25,959 46,913 156,935 564 7,048 7,223 Ratio of earnings to fixed charges (2) N/A N/A N/A N/A 645:1 N/A 2.8:1
---------- (1) Fixed charges consist of interest expense incurred, amortization of loan fees and the portion of rental expense under operating expense deemed by the Company to be representative of the interest factor. (2) Earnings were inadequate to cover fixed charges for fiscal 1998, 1999, 2000, 2001, and the six months ended December 29, 2002, by approximately $337.5 million, $307.7 million, $79.6 million, $301.9 million, and $40.7 million. (3) Total earnings and fixed charges for the six months ended June 30, 2002 included a gain on the extinguishment of debt and other liabilities subject to compromise, and the revaluation of assets and liabilities of $396.4 million to their fair values in connection with the adoption of fresh-start reporting for the six months ended June 30, 2002. (4) In accordance with SOP 90-7, Komag, Incorporated did not record interest expense on its outstanding debt during the chapter 11 bankruptcy proceedings from August 24, 2001 through June 30, 2002.