EX-12.1 7 ex121ratioofearningstofixe.htm EX-12.1 Exhibit
Exhibit 12.1

 
Mohawk Industries, Inc.
 
Statement Regarding Computation of Ratio of Earnings to Fixed Charges
 
(In Thousands, Except Ratio Data)
 
 
 
 
Year Ended December 31,
 
 
2012
 
2013
 
2014
 
2015(3)
 
2016
Six Months Ended
July 1, 2017
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Portion of rent expense representative of interest(1)
32,529

 
38,847

 
38,176

 
36,924

 
41,701

22,345

Capitalized interest
4,577

 
8,167

 
9,202

 
7,091

 
5,608

3,622

Interest expensed
74,713

 
92,246

 
98,207

 
71,086

 
40,547

16,595

Total fixed charges (2)
$
111,819

 
139,260

 
145,585

 
115,101

 
87,856

42,562

 
 
 
 
 
 
 
 
 
 
 
Earnings (2) :
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes
304,492

 
445,571

 
663,891

 
748,861

 
1,241,125

613,843

Fixed charges
111,819

 
139,260

 
145,585

 
115,101

 
87,856

42,562

Amortization of capitalized interest
5,452

 
5,832

 
6,230

 
6,326

 
6,770

3,317

less:
 
 
 
 
 
 
 
 
 
 
Capitalized interest
(4,577
)
 
(8,167
)
 
(9,202
)
 
(7,091
)
 
(5,608
)
(3,622
)
 
 
 
 
 
 
 
 
 
 
 
Total earnings
$
417,186

 
582,496

 
806,504

 
863,197

 
1,330,143

656,100

 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
3.7

 
4.1

 
5.5

 
7.4

 
15.1

15.4

 
 
 
 
 
 
 
 
 
 
 
(1)Interest portion of rental expense is estimated to equal 1/3 of such expense, which is considered a reasonable approximation of the interest factor.
(2) For the purposes of determining the ratio of earnings to fixed charges, earnings consists of the aggregate of earnings from continuing operations before income taxes plus fixed charges and amortization of capitalized interest, less total capitalized interest. Fixed charges are defined as interest expensed and capitalized plus an estimate of interest included within rental expense.
(3) Earnings (as defined above) for the year ended December 31, 2015 reflect a $122.5 million charge related to the settlement and further defense of certain polyurethane foam litigation. Excluding this litigation-related charge, earnings for the year ended December 31, 2015 would have been $985.7 million and the ratio of earnings to fixed charges would have been 8.6x.