Exhibit 12.1
AutoNation, Inc.
Ratio of Earnings to Fixed Charges
(dollars in millions)
| Year Ended December 31, | ||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
Earnings | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 351.0 | $ | (1,401.4 | ) | $ | 452.9 | $ | 520.4 | $ | 582.2 | |||||||||
Adjustment to exclude earnings from equity method investees | (0.1 | ) | (0.7 | ) | (0.8 | ) | (1.7 | ) | (1.5 | ) | ||||||||||
Fixed charges | 103.7 | 201.1 | 273.7 | 259.9 | 198.9 | |||||||||||||||
Distributions from equity method investees | 1.3 | 0.3 | 1.0 | 1.6 | 1.2 | |||||||||||||||
Interest capitalized | (0.1 | ) | (0.8 | ) | (0.9 | ) | (1.1 | ) | (0.6 | ) | ||||||||||
Earnings, as defined | $ | 455.8 | $ | (1,201.5 | ) | $ | 725.9 | $ | 779.1 | $ | 780.2 | |||||||||
Fixed Charges | ||||||||||||||||||||
Floorplan interest expense(a) | $ | 37.4 | $ | 89.3 | $ | 135.8 | $ | 146.5 | $ | 112.9 | ||||||||||
Other interest expense(b) | 42.6 | 89.4 | 114.1 | 90.8 | 63.3 | |||||||||||||||
Capitalized interest costs | 0.1 | 0.8 | 0.9 | 1.1 | 0.6 | |||||||||||||||
Interest component of rent expense(a) | 23.6 | 21.6 | 22.9 | 21.5 | 22.1 | |||||||||||||||
Total Fixed Charges | $ | 103.7 | $ | 201.1 | $ | 273.7 | $ | 259.9 | $ | 198.9 | ||||||||||
Ratio of Earnings to Fixed Charges | 4.4 | (c | ) | 2.7 | 3.0 | 3.9 | ||||||||||||||
| (a) | Includes amounts pertaining to discontinued operations. |
| (b) | Other interest expense includes amortization of debt issuance costs. |
| (c) | In the year ended December 31, 2008, earnings were insufficient to cover fixed charges by $1.40 billion due to non-cash impairment charges of $1.74 billion. |