EX-12.1 4 d306800dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

Mohawk Industries, Inc.

Statement Regarding Computation of Earnings to Fixed Charges

(In Thousands, Except Ratio Data)

 

    

December 31,

    

2007

  

2008

  

2009

  

2010

  

2011

Fixed rent expense

   $123,095    139,103    130,227    105,976    103,416
  

 

  

 

  

 

  

 

  

 

Principal

   82,063    92,735    86,818    70,651    68,944

Interest

   41,032    46,368    43,409    35,325    34,472
  

 

  

 

  

 

  

 

  

 

Total

   $123,095    139,103    130,227    105,976    103,416
  

 

  

 

  

 

  

 

  

 

Fixed charges:

              

Portion of rent expense representative of interest

   $41,032    46,368    43,409    35,325    34,472

Capitalized interest

   4,446    6,419    4,469    4,240    6,197

Interest expensed

   154,469    127,050    127,031    133,151    101,617
  

 

  

 

  

 

  

 

  

 

Total fixed charges (1)

   $199,947    179,837    174,909    172,716    142,286
  

 

  

 

  

 

  

 

  

 

Earnings:

              

Earnings (loss) before income taxes

   $611,716    (1,272,472)    (77,713)    192,648    199,874

Fixed charges

   199,947    179,837    174,909    172,716    142,286

Amortization of capitalized interest

   4,395    5,043    5,377    5,178    5,607

less:

              

Capitalized interest

   (4,446)    (6,419)    (4,469)    (4,240)    (6,197)
  

 

  

 

  

 

  

 

  

 

Total earnings

   $811,612    (1,094,011)    98,104    366,302    341,570
  

 

  

 

  

 

  

 

  

 

Ratio of earnings to fixed charges

   4.1    *    **    2.1    2.4

 

 

(1)    Earnings are defined as the sum of earnings before income taxes, fixed charges and amortization of capitalized interest less capitalized interest. Fixed charges are defined as interest expensed and capitalized plus interest within rent expense, which is estimated to be one-third of rent expense.

*      Due to a loss resulting from impairment of goodwill and intangible assets in 2008, the ratio was less than 1:1. The Company would need to generate additional earnings before income taxes of $1,273,848 to achieve a ratio of 1:1.

**    Due to warrranty claims related to the performance of certain commercial carpet tile, the ratio was less than 1:1. The Company would need to generate additional earnings before income taxes of $76,805 to achieve a ratio of 1:1.