EXHIBIT 12.1
United Defense Industries, Inc.
Computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to
Combined Fixed Charges and Preferred Stock Dividends
Fiscal years ended December 31, | For the three months ended March 31, | |||||||||||||||||||||||||||
1998 | 1999 | 2000 | 2001 | 2002 | 2002 | 2003 | ||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 46,495 | $ | 33,044 | $ | 25,826 | $ | 52,794 | $ | 31,194 | $ | 5,945 | $ | 6,713 | ||||||||||||||
Finance cost amortization | 5,660 | 5,791 | 2,759 | 3,938 | 3,414 | 680 | 775 | |||||||||||||||||||||
Rental expense interest factor (1) | 4,050 | 3,720 | 4,260 | 4,050 | 5,460 | 1,043 | 1,655 | |||||||||||||||||||||
Total fixed charges | $ | 56,205 | $ | 42,555 | $ | 32,845 | $ | 60,782 | $ | 40,068 | $ | 7,668 | $ | 9,143 | ||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Income before income taxes and extraordinary item(2) | $ | (116,757 | ) | $ | 5,584 | $ | 24,845 | $ | 14,676 | $ | 149,735 | $ | 21,768 | $ | 63,965 | |||||||||||||
Earnings related to investments in foreign affiliates | (1,647 | ) | (1,639 | ) | 1,262 | (10,156 | ) | (13,874 | ) | (904 | ) | (5,549 | ) | |||||||||||||||
Distributions related to investments in foreign affiliates | 20,479 | 12,279 | 1,790 | 2,765 | 5,907 | 5,701 | 19,482 | |||||||||||||||||||||
Fixed charges | 56,205 | 42,555 | 32,845 | 60,782 | 40,068 | 7,668 | 9,143 | |||||||||||||||||||||
Total earnings | $ | (41,720 | ) | $ | 58,779 | $ | 60,742 | $ | 68,067 | $ | 181,836 | $ | 34,223 | $ | 87,041 | |||||||||||||
Ratio of earnings to fixed charges: | ||||||||||||||||||||||||||||
Earnings | $ | (41,720 | ) | $ | 58,779 | $ | 60,742 | $ | 68,067 | $ | 181,836 | $ | 34,233 | $ | 87,041 | |||||||||||||
Fixed charges | $ | 56,205 | $ | 42,555 | $ | 32,845 | $ | 60,782 | $ | 40,068 | $ | 7,668 | $ | 9,143 | ||||||||||||||
Ratio | (0.74 | ) | 1.38 | 1.85 | 1.12 | 4.54 | 4.46 | 9.52 | ||||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends: | ||||||||||||||||||||||||||||
Earnings | $ | (41,720 | ) | $ | 58,779 | $ | 60,742 | $ | 68,067 | $ | 181,836 | $ | 34,233 | $ | 87,041 | |||||||||||||
Fixed charges | $ | 56,205 | $ | 42,555 | $ | 32,845 | $ | 60,782 | $ | 40,068 | $ | 7,668 | $ | 9,143 | ||||||||||||||
Ratio | (0.74 | ) | 1.38 | 1.85 | 1.12 | 4.54 | 4.46 | 9.52 |
(1) | Represents the component of rent expense believed by management to be representative of the interest factor (thirty percent of rent expense). | |
(2) | Effective January 1, 2003, we adopted FASB Statement No. 145, “Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical Corrections.” Accordingly, any gain or loss on extinguishment of debt that was previously classified as an extraordinary item in any of the periods presented above that does not meet the criteria in APB 30 for classification as an extraordinary item has been reclassified to income (loss) before income taxes and extraordinary items, in connection with the preparation of our financial statements for the three months ending March 31, 2003 and thereafter and is reflected in the earnings used to calculate the ratios shown above. |