EX-12.1 4 a201510k-ex121ratioofearni.htm EX-12.1 Exhibit
Exhibit 12.1

 
Mohawk Industries, Inc.
 
Statement Regarding Computation of Earnings to Fixed Charges
 
(In Thousands, Except Ratio Data)
 
 
 
Year Ended December 31,
 
2011
 
2012
 
2013
 
2014
 
2015(3)
Fixed rent expense
$
103,416

 
97,587

 
116,541

 
114,529

 
110,771

Principal
68,944

 
65,058

 
77,694

 
76,353

 
73,847

Interest
34,472

 
32,529

 
38,847

 
38,176

 
36,924

Total
$
103,416

 
97,587

 
116,541

 
114,529

 
110,771

 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
Portion of rent expense representative of interest
34,472

 
32,529

 
38,847

 
38,176

 
36,924

Capitalized interest
6,197

 
4,577

 
8,167

 
9,202

 
7,091

Interest expensed
101,617

 
74,713

 
92,246

 
98,207

 
71,086

Total fixed charges (1)
$
142,286

 
111,819

 
139,260

 
145,585

 
115,101

 
 
 
 
 
 
 
 
 
 
Earnings (2) :
 
 
 
 
 
 
 
 
 
Earnings before income taxes
199,874

 
304,492

 
445,571

 
663,891

 
748,861

Fixed charges
142,286

 
111,819

 
139,260

 
145,585

 
115,101

Amortization of capitalized interest
5,886

 
5,452

 
5,550

 
6,230

 
6,326

less:
 
 
 
 
 
 
 
 
 
Capitalized interest
(6,197
)
 
(4,577
)
 
(8,167
)
 
(9,202
)
 
(7,091
)
 
 
 
 
 
 
 
 
 
 
Total earnings
$
341,849

 
417,186

 
582,214

 
806,504

 
863,197

 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
2.4

 
3.7

 
4.1

 
5.5

 
7.5

 
 
 
 
 
 
 
 
 
 
(1) Fixed charges are defined as interest expensed and capitalized plus an estimate of interest within rental expense
(2) Earnings consists of earnings from continuing operations before income taxes plus fixed charges and amortization of capitalized interest less total capitalized interest
(3) Earnings for the year ended December 31, 2015 (as defined in Note (2) above) reflects a $122,480 charge related to the settlement and further defense of the polyurethane foam litigation described in more detail in the Company's Annual Report on Form 10-K. Excluding the litigation-related charge, earnings for the year would be $985,677 and the ratio of earnings to fixed charges would be 8.6.