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Hawaiian Holdings, Inc.
Computation of Ratio of Earnings to Fixed Charges
| Year ended December 31, | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2008 | 2009 | 2010 | 2011 | 2012 | |||||||||||
| (in thousands, except for ratio) | |||||||||||||||
Earnings | ||||||||||||||||
Income (loss) before income taxes | $ | 53,209 | $ | 97,196 | $ | 81,989 | $ | (1,082 | ) | $ | 85,786 | |||||
Additions: | ||||||||||||||||
Total fixed charges (see below) | 63,574 | 66,147 | 68,034 | 71,536 | 88,836 | |||||||||||
Subtractions: | ||||||||||||||||
Interest capitalized | — | — | 2,665 | 7,771 | 10,524 | |||||||||||
Earnings as adjusted | $ | 116,783 | $ | 163,343 | $ | 147,358 | $ | 62,683 | $ | 164,098 | ||||||
Fixed Charges: | ||||||||||||||||
Interest on indebtedness, expensed or capitalized | $ | 19,289 | $ | 19,378 | $ | 15,703 | $ | 20,991 | $ | 38,447 | ||||||
Amortization of debt discount and accretion of convertible debt | 1,367 | 1,275 | 1,132 | 3,530 | 5,075 | |||||||||||
Portion of rental expense representative of the interest factor(1) | 42,918 | 45,494 | 51,199 | 47,015 | 45,314 | |||||||||||
Total fixed charges | $ | 63,574 | $ | 66,147 | $ | 68,034 | $ | 71,536 | $ | 88,836 | ||||||
Ratio of earnings to fixed charges | 1.84 | 2.47 | 2.17 | — | 1.85 | |||||||||||
Coverage deficiency | $ | — | $ | — | $ | — | $ | 8,853 | $ | — | ||||||
- (1)
- Represents a percentage of total rent expense. We used 35% for the years 2008 through 2010 and 30% for 2011 and 2012, which we believe is a reasonable estimate of the interest component of rent expense.
Hawaiian Holdings, Inc. Computation of Ratio of Earnings to Fixed Charges