Exhibit 12.1
Autoliv, Inc.
Computation of Ratio of Earnings to Fixed Charges
(Dollars in millions) | Year Ended December 31, | |||||||||||||||||||
Fixed charges | 2010 | 2011 | 2012 | 2013 | 2014 | |||||||||||||||
Interest expense | $ | 66.6 | $ | 68.2 | $ | 41.7 | $ | 32.9 | $ | 63.4 | ||||||||||
Interest portion of rental expense (1) | 9.7 | 12.0 | 11.7 | 15.1 | 14.7 | |||||||||||||||
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Total | $ | 76.3 | $ | 80.2 | $ | 53.4 | $ | 48.0 | 78.1 | |||||||||||
Earnings | ||||||||||||||||||||
Income before income taxes | $ | 805.5 | $ | 828.3 | $ | 668.6 | $ | 734.0 | $ | 667.1 | ||||||||||
Earnings in Affiliates | (5.5 | ) | (6.8 | ) | (8.1 | ) | (7.3 | ) | (6.9 | ) | ||||||||||
Fixed charges + | 76.3 | 80.2 | 53.4 | 48.0 | 78.1 | |||||||||||||||
Cash from Affiliates + | 9.2 | 6.4 | 4.8 | 4.6 | 5.7 | |||||||||||||||
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Total | $ | 885.5 | $ | 908.1 | $ | 718.7 | $ | 779.3 | $ | 744.0 | ||||||||||
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Ratios of Earnings to Fixed Charges | 12x | 11x | 13x | 16x | 10X |
(1) One-third of all rental expense is deemed to be interest.
For the purpose of computing these ratios, (i) “earnings” consists of the sum of pre-tax income from continuing operations before adjustment for non-controlling interests in our consolidated subsidiaries or income or loss from equity investees; fixed charges; amortization of capitalized interest; and distributed income of equity investees; and (ii) “fixed charges” consists of the sum of interest expense (which includes amortization of premiums, discounts, and capitalized expenses related to debt issue costs, when applicable); capitalized interest; and one-third of rental expense which we believe to be a reasonable estimate of an interest factor in our leases.