EX-12.1 4 dex121.htm CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Exhibit 12.1)

Hanesbrands Inc.

Ratio of Earnings to Fixed Charges

(Dollars in thousands)

(Unaudited)

 

    Six  Months
Ended

July 2,
2011
    Years Ended     Six  Months
Ended

December 30,
2006
    Year Ended
July  1,
2006
 
      January 1,
2011
    January 2,
2010
    January 3,
2009
    December 29,
2007
     

Earnings, as defined:

             

Income from continuing operations before income tax expense, noncontrolling interest and income/loss from equity investees

  $ 168,942      $ 234,534      $ 59,449      $ 163,195      $ 185,321      $ 112,830      $ 417,543   

Fixed charges

    94,077        174,520        191,442        179,003        223,395        90,168        44,366   

Amortization of capitalized interest

    1,608        3,824        3,722        3,632        3,676        2,024        4,227   

Interest capitalized

    (1,047     (2,190     (6,559     (4,047     (2,184     (1,904     (4,656

Noncontrolling interest in pre-tax income

    —          (1,019     (1,173     (158     (1,195     (910     (1,224
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total earnings, as defined

  $ 263,580      $ 409,669      $ 246,881      $ 341,625      $ 409,013      $ 202,208      $ 460,256   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fixed charges, as defined:

             

Interest expense

  $ 76,723      $ 139,923      $ 159,222      $ 155,280      $ 201,131      $ 78,692      $ 26,075   

Amortized premiums, discounts and capitalized expenses related to indebtedness

    5,227        12,739        10,967        6,032        6,475        2,279        —     

Interest factor in rental expenses

    12,127        21,858        21,253        17,691        15,789        9,197        18,291   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges, as defined

  $ 94,077      $ 174,520      $ 191,442      $ 179,003      $ 223,395      $ 90,168      $ 44,366   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of earnings to fixed charges

    2.80        2.35        1.29        1.91        1.83        2.24        10.37   

 

Note: The Ratio of Earnings to Fixed Charges should be read in conjunction with our consolidated financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations incorporated by reference in this prospectus. The interest expense included in the fixed charges calculation above excludes interest expense relating to our uncertain tax positions. The interest factor in rental expenses is calculated as one-third of rent expense.