Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||
June 30, | June 30, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||||||
Income from continuing operations before undistributed earnings of equity method investments, amortization of capitalized interest, and taxes | $ | 61.4 | 47.9 | 116.3 | 86.1 | 194.9 | 128.6 | (553.8 | ) | 177.8 | 184.9 | ||||||||||||||||||||||||||
Less undistributed earnings of equity method investments | $ | (7.9 | ) | (4.8 | ) | (7.9 | ) | (4.4 | ) | (20.6 | ) | (13.8 | ) | (16.5 | ) | (4.1 | ) | (8.2 | ) | ||||||||||||||||||
Plus distributed earnings of equity method investments | $ | 0.3 | 0.5 | 8.5 | 9.4 | 9.9 | 21.3 | 3.5 | 6.2 | 0.3 | |||||||||||||||||||||||||||
Plus amortization of capitalized interest | $ | 0.2 | 0.2 | 0.4 | 0.4 | 0.8 | 0.8 | 0.8 | 0.6 | 0.5 | |||||||||||||||||||||||||||
$ | 54.0 | 43.8 | 117.3 | 91.5 | 185.0 | 136.9 | (566.0 | ) | 180.5 | 177.5 | |||||||||||||||||||||||||||
Plus: | |||||||||||||||||||||||||||||||||||||
Fixed charges: | |||||||||||||||||||||||||||||||||||||
Other interest expense (includes amortization of deferred financing costs) | $ | 10.6 | 12.5 | 22.0 | 25.3 | 49.3 | 55.2 | 54.5 | 55.3 | 48.4 | |||||||||||||||||||||||||||
Debt discount amortization | $ | — | 2.4 | 1.7 | 5.3 | 8.6 | 13.0 | 14.0 | 13.0 | 11.1 | |||||||||||||||||||||||||||
Floor plan interest expense | $ | 7.1 | 8.0 | 14.1 | 16.1 | 33.8 | 34.2 | 61.9 | 70.7 | 56.4 | |||||||||||||||||||||||||||
Capitalized interest | $ | 0.1 | 0.1 | 0.2 | 0.2 | 0.5 | 0.9 | 4.8 | 5.5 | 7.1 | |||||||||||||||||||||||||||
Interest factor in rental expense | $ | 14.2 | 13.2 | 28.2 | 26.4 | 54.1 | 52.1 | 51.2 | 48.4 | 42.0 | |||||||||||||||||||||||||||
Total fixed charges | $ | 32.0 | 36.2 | 66.2 | 73.3 | 146.3 | 155.4 | 186.4 | 192.9 | 165.0 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||||
Capitalized interest | $ | 0.2 | 0.1 | 0.2 | 0.2 | 0.5 | 0.9 | 4.8 | 5.5 | 7.1 | |||||||||||||||||||||||||||
Earnings | $ | 85.8 | 79.9 | 183.3 | 164.6 | 330.8 | 291.4 | (384.4 | ) | 367.9 | 335.4 | ||||||||||||||||||||||||||
Ratio of earnings to fixed charges (a) | 2.7 | 2.2 | 2.8 | 2.2 | 2.3 | 1.9 | — | 1.9 | 2.0 | ||||||||||||||||||||||||||||
(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. |