Exhibit 12(b)
CNF INC.
COMPUTATION OF RATIOS OF EARNINGS (LOSS) TO COMBINED
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Year Ended December 31,
(Dollars in thousands) | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||
Combined Fixed Charges and Preferred Stock Dividends: | ||||||||||||||||||||
Interest expense | $ | 30,071 | $ | 23,558 | $ | 27,992 | $ | 29,972 | $ | 25,972 | ||||||||||
Capitalized interest | 241 | 455 | 864 | 4,636 | 5,864 | |||||||||||||||
Amortization of debt expense | 1,354 | 1,321 | 1,064 | 1,044 | 908 | |||||||||||||||
Dividend requirement on Series B Preferred Stock (1) | 10,072 | 10,331 | 10,606 | 10,808 | 10,992 | |||||||||||||||
Dividend requirement on preferred securities of subsidiary trust | 6,250 | 6,250 | 6,250 | 6,250 | 6,250 | |||||||||||||||
Interest component of rental expense (2) | 17,138 | 19,564 | 25,033 | 38,161 | 41,363 | |||||||||||||||
Fixed Charges | $ | 65,126 | $ | 61,479 | $ | 71,809 | $ | 90,871 | $ | 91,349 | ||||||||||
Earnings (Loss): | ||||||||||||||||||||
Income (Loss) from continuing operations before taxes (3) | $ | 156,016 | $ | 146,244 | $ | (695,933 | ) | $ | 261,196 | $ | 332,260 | |||||||||
(Income) Loss from equity-method investment | (20,718 | ) | (18,188 | ) | 9,415 | 560 | — | |||||||||||||
| 135,298 | 128,056 | (686,518 | ) | 261,756 | 332,260 | |||||||||||||||
Fixed charges | 65,126 | 61,479 | 71,809 | 90,871 | 91,349 | |||||||||||||||
Capitalized interest | (241 | ) | (455 | ) | (864 | ) | (4,636 | ) | (5,864 | ) | ||||||||||
Preferred dividend requirements (4) | (10,072 | ) | (10,331 | ) | (10,606 | ) | (10,808 | ) | (10,992 | ) | ||||||||||
| $ | 190,111 | $ | 178,749 | $ | (626,179 | ) | $ | 337,183 | $ | 406,753 | ||||||||||
Ratio | 2.9 | x | 2.9 | x | (8.7 | )x | 3.7 | x | 4.5 | x | ||||||||||
Deficiency in the coverage of fixed charges by earnings (loss) before fixed charges | — | — | (697,988 | ) | — | — | ||||||||||||||
| (1) | Dividends on shares of the Series B cumulative convertible preferred stock are used to pay debt service on notes issued by the CNF’s Thrift and Stock Plan. |
| (2) | Estimate of the interest portion of lease payments. |
| (3) | For the year ended December 31, 2001, results included a $652.2 million loss from restructuring charges at Forwarding and Menlo Worldwide Logistics’ $47.5 million loss from the business failure of a customer. |
| (4) | Preferred stock dividend requirements included in Combined Fixed Charges but not deducted in the determination of Income (Loss) from Continuing Operations Before Income Taxes. |