(Exhibit 12.1)
Hanesbrands Inc.
Ratio of Earnings to Fixed Charges
(Dollars in thousands)
(Unaudited)
Six Months Ended July 2, 2011 | Years Ended | Six Months Ended December 30, 2006 | Year Ended July 1, 2006 | |||||||||||||||||||||||||
January 1, 2011 | January 2, 2010 | January 3, 2009 | December 29, 2007 | |||||||||||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||||||||||
Income from continuing operations before income tax expense, noncontrolling interest and income/loss from equity investees | $ | 168,942 | $ | 234,534 | $ | 59,449 | $ | 163,195 | $ | 185,321 | $ | 112,830 | $ | 417,543 | ||||||||||||||
Fixed charges | 94,077 | 174,520 | 191,442 | 179,003 | 223,395 | 90,168 | 44,366 | |||||||||||||||||||||
Amortization of capitalized interest | 1,608 | 3,824 | 3,722 | 3,632 | 3,676 | 2,024 | 4,227 | |||||||||||||||||||||
Interest capitalized | (1,047 | ) | (2,190 | ) | (6,559 | ) | (4,047 | ) | (2,184 | ) | (1,904 | ) | (4,656 | ) | ||||||||||||||
Noncontrolling interest in pre-tax income | — | (1,019 | ) | (1,173 | ) | (158 | ) | (1,195 | ) | (910 | ) | (1,224 | ) | |||||||||||||||
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Total earnings, as defined | $ | 263,580 | $ | 409,669 | $ | 246,881 | $ | 341,625 | $ | 409,013 | $ | 202,208 | $ | 460,256 | ||||||||||||||
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Fixed charges, as defined: | ||||||||||||||||||||||||||||
Interest expense | $ | 76,723 | $ | 139,923 | $ | 159,222 | $ | 155,280 | $ | 201,131 | $ | 78,692 | $ | 26,075 | ||||||||||||||
Amortized premiums, discounts and capitalized expenses related to indebtedness | 5,227 | 12,739 | 10,967 | 6,032 | 6,475 | 2,279 | — | |||||||||||||||||||||
Interest factor in rental expenses | 12,127 | 21,858 | 21,253 | 17,691 | 15,789 | 9,197 | 18,291 | |||||||||||||||||||||
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Total fixed charges, as defined | $ | 94,077 | $ | 174,520 | $ | 191,442 | $ | 179,003 | $ | 223,395 | $ | 90,168 | $ | 44,366 | ||||||||||||||
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Ratio of earnings to fixed charges | 2.80 | 2.35 | 1.29 | 1.91 | 1.83 | 2.24 | 10.37 |
Note: | The Ratio of Earnings to Fixed Charges should be read in conjunction with our consolidated financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations incorporated by reference in this prospectus. The interest expense included in the fixed charges calculation above excludes interest expense relating to our uncertain tax positions. The interest factor in rental expenses is calculated as one-third of rent expense. |