Exhibit 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, | September 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 | $ | 70.4 | 52.5 | 187.1 | 139.1 | 195.8 | 129.6 | (553.1 | ) | 178.7 | 185.7 | |||||||||||||||||||||||||
Less undistributed earnings of equity method investments | $ | (9.6 | ) | (7.4 | ) | (17.5 | ) | (11.7 | ) | (20.6 | ) | (13.8 | ) | (16.5 | ) | (4.1 | ) | (8.2 | ) | |||||||||||||||||
Plus distributed earnings of equity method investments | $ | — | 0.3 | 8.5 | 9.7 | 9.9 | 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 | 0.8 | 0.6 | 0.5 | ||||||||||||||||||||||||||
$ | 61.0 | 45.6 | 178.7 | 137.7 | 185.9 | 137.9 | (565.3 | ) | 181.4 | 178.3 | ||||||||||||||||||||||||||
Plus: | ||||||||||||||||||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||||||||||
Other interest expense (includes amortization of deferred financing costs) | $ | 11.3 | 12.2 | 33.3 | 37.5 | 49.3 | 55.2 | 54.5 | 55.3 | 48.4 | ||||||||||||||||||||||||||
Debt discount amortization | $ | — | 1.6 | 1.7 | 7.0 | 8.6 | 13.0 | 14.0 | 13.0 | 11.1 | ||||||||||||||||||||||||||
Floor plan interest expense | $ | 7.0 | 8.8 | 21.1 | 24.9 | 33.7 | 34.2 | 61.8 | 70.5 | 56.2 | ||||||||||||||||||||||||||
Capitalized interest | $ | 0.2 | 0.1 | 0.4 | 0.4 | 0.5 | 0.9 | 4.8 | 5.5 | 7.1 | ||||||||||||||||||||||||||
Interest factor in rental expense | $ | 14.2 | 13.4 | 42.3 | 39.7 | 53.9 | 51.9 | 51.0 | 48.2 | 41.8 | ||||||||||||||||||||||||||
Total fixed charges | $ | 32.7 | 36.1 | 98.8 | 109.5 | 146.0 | 155.2 | 186.1 | 192.5 | 164.6 | ||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||
Capitalized interest | $ | 0.2 | 0.1 | 0.4 | 0.4 | 0.5 | 0.9 | 4.8 | 5.5 | 7.1 | ||||||||||||||||||||||||||
Earnings | $ | 93.5 | 81.6 | 277.1 | 246.8 | 331.4 | 292.2 | (384.0 | ) | 368.4 | 335.8 | |||||||||||||||||||||||||
Ratio of earnings to fixed charges (a) | 2.9 | 2.3 | 2.8 | 2.3 | 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. |