EXHIBIT 12.1
CIT Group Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
Year Ended December 31, 2005 | Year Ended December 31, 2004 | Year Ended December 31, 2003 | Three Months Ended December 31, 2002 | Year Ended September 30, 2002 | Nine Months Ended September 30, 2001 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Net income | $ 936.4 | $ 753.6 | $ 566.9 | $141.3 | $(6,698.7 | ) | $ 263.3 | |||||
Provision for income taxes | 464.2 | 483.3 | 361.6 | 90.3 | 367.6 | 236.3 | ||||||
Earnings before provision | ||||||||||||
for income taxes | 1,400.6 | 1,236.9 | 928.5 | 231.6 | (6,331.1 | ) | 499.6 | |||||
Fixed charges: | ||||||||||||
Interest and debt | ||||||||||||
expenses on | ||||||||||||
indebtedness | 1,894.3 | 1,242.6 | 1,348.7 | 349.5 | 1,464.6 | 1,636.9 | ||||||
Minority interest | ||||||||||||
in subsidiary | ||||||||||||
trust holding | ||||||||||||
Solely debentures of the | ||||||||||||
Company, before tax | 17.7 | 17.5 | 8.8 | 4.4 | 16.9 | 14.4 | ||||||
Interest factor-one-third | ||||||||||||
of rentals on real and | ||||||||||||
personal properties | 14.3 | 13.4 | 14.4 | 3.8 | 15.6 | 13.5 | ||||||
Total fixed charges | 1,926.3 | 1,273.5 | 1,371.9 | 357.7 | 1,497.1 | 1,664.8 | ||||||
Total earnings before | ||||||||||||
provisions for income | ||||||||||||
taxes and fixed charges | $3,326.9 | $2,510.4 | $2,300.4 | $589.3 | $(4,834.0 | ) | $2,164.4 | |||||
Ratios of earnings to | ||||||||||||
fixed charges | 1.73 | x | 1.97 | x | 1.68 | x | 1.65 | x | (1) | 1.30 | x |
(1) | Earnings were insufficient to cover fixed charges by $6,331.1 million in the year ended September 30, 2002. Earnings for the year ended September 30, 2002 included a goodwill impairment charge of $6,511.7 million in accordance with SFAS 142, “Goodwill and Other Intangible Assets.” |