EX-12.1 2 h25148a1exv12w1.htm RATIO OF EARNINGS TO FIXED CHARGES exv12w1
 

Exhibit 12.1

SERVICE CORPORATION INTERNATIONAL
RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)

                                         
    Twelve months ended December 31,  
    2003     2002     2001     2000     1999  
            (Restated)     (Restated)     (Restated)          
            Note 2     Note 2     Note 2          
Earnings:
                                        
Income (loss) from continuing operations before income taxes and cumulative effects of accounting changes
   $ 111,219     $ (119,850 )   $ (418,617 )   $ (465,933 )   $ (70,266 )
 
                                        
Undistributed income of less than 50% owned equity investees
     —       —       (939 )     (2,510 )     267  
Minority interest in income of majority owned subsidiaries with fixed charges
     715       706       (799 )     408       (1,490 )
Add: fixed charges as adjusted (from below)
     162,349       180,589       241,859       318,204       274,654  
 
                              
 
   $ 274,283     $ 61,445     $ (178,496 )   $ (149,831 )   $ 203,165  
 
                              
 
                                        
Fixed charges:
                                        
Interest expense:
                                        
Corporate
   $ 133,498     $ 153,770     $ 204,751     $ 273,723     $ 234,476  
Financial service
     —       —       —       8,833       11,805  
Capitalized
     —       —       —       1       1,430  
Amortization of debt cost
     9,237       7,102       6,106       6,392       1,954  
1/3 of rental expense
     19,614       19,717       31,002       29,256       26,419  
 
                              
Fixed charges
     162,349       180,589       241,859       318,205       276,084  
Less: Capitalized interest
     —       —       —       (1 )     (1,430 )
 
                              
Fixed charges as adjusted
   $ 162,349     $ 180,589     $ 241,859     $ 318,204     $ 274,654  
 
                              
 
                                        
Ratio (earnings divided by fixed charges)
     1.69       A       A       A       A  

A.   During the twelve months ended December 31, 2002, 2001, 2000, and 1999 the ratio coverage was less than 1:1. In order to achieve a coverage of 1:1, the Company would have had to generate additional income from continuing operations before income taxes and cumulative effects of accounting changes of $119,144, $420,355, $468,035, and $71,489 for the twelve months ended December 31, 2002, 2001, 2000, and 1999, respectively.