Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, | September 30, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||||||||
Income from continuing operations before undistributed earnings of equity method investments, amortization of capitalized interest, and taxes | $ | 46.6 | 43.0 | 124.8 | 99.3 | 129.0 | (517.2 | ) | 183.0 | 190.3 | 185.9 | |||||||||||||||||||||||||
Less undistributed earnings of equity method investments | $ | (7.4 | ) | (7.5 | ) | (11.7 | ) | (11.7 | ) | (13.8 | ) | (16.5 | ) | (4.1 | ) | (8.2 | ) | (4.3 | ) | |||||||||||||||||
Plus distributed earnings of equity method investments | $ | 0.3 | 0.5 | 9.7 | 21.3 | 21.3 | 3.5 | 6.2 | 0.3 | — | ||||||||||||||||||||||||||
Plus amortization of capitalized interest | $ | 0.2 | 0.2 | 0.6 | 0.6 | 0.8 | 0.8 | 0.6 | 0.5 | 0.3 | ||||||||||||||||||||||||||
$ | 39.7 | 36.2 | 123.4 | 109.5 | 137.3 | (529.4 | ) | 185.7 | 182.9 | 181.9 | ||||||||||||||||||||||||||
Plus: | ||||||||||||||||||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||||||||||
Other interest expense (includes amortization of deferred financing costs) | $ | 12.2 | 13.5 | 37.5 | 41.7 | 55.2 | 54.5 | 55.3 | 48.4 | 48.5 | ||||||||||||||||||||||||||
Debt discount amortization | $ | 1.6 | 3.1 | 7.0 | 9.9 | 13.0 | 14.0 | 12.9 | 11.1 | — | ||||||||||||||||||||||||||
Floor plan interest expense | $ | 9.0 | 9.1 | 25.9 | 27.5 | 35.6 | 64.2 | 73.1 | 58.2 | 45.2 | ||||||||||||||||||||||||||
Capitalized interest | $ | 0.1 | 0.1 | 0.4 | 0.7 | 0.9 | 4.8 | 5.5 | 7.1 | 4.0 | ||||||||||||||||||||||||||
Interest factor in rental expense | $ | 13.9 | 13.5 | 41.2 | 40.1 | 54.3 | 52.8 | 49.6 | 43.2 | 34.8 | ||||||||||||||||||||||||||
Total fixed charges | $ | 36.8 | 39.3 | 112.0 | 119.9 | 159.0 | 190.3 | 196.4 | 168.0 | 132.5 | ||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||
Capitalized interest | $ | 0.1 | 0.1 | 0.4 | 0.7 | 0.9 | 4.8 | 5.5 | 7.1 | 4.0 | ||||||||||||||||||||||||||
Earnings | $ | 76.4 | 75.4 | 235.0 | 228.7 | 295.4 | (343.9 | ) | 376.6 | 343.8 | 310.4 | |||||||||||||||||||||||||
Ratio of earnings to fixed charges | 2.1 | 1.9 | 2.1 | 1.9 | 1.9 | — | (a) | 1.9 | 2.0 | 2.3 | ||||||||||||||||||||||||||
(a) | In the year ended December 31, 2008, earnings were insufficient to cover fixed charges by $534.2 million due to a non-cash impairment charge of $643.5 million. |