Exhibit 12
CON-WAY INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Year Ended December 31,
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| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income (Loss) from continuing operations before income tax provision | $ | 148,072 | $ | 16,557 | $ | (90,269 | ) | $ | 134,917 | $ | 242,646 | |||||||||
Add: | ||||||||||||||||||||
Loss from equity investment (1) | — | — | — | — | 2,699 | |||||||||||||||
Interest expense, net of capitalized interest | 55,589 | 59,015 | 64,440 | 62,936 | 42,805 | |||||||||||||||
Interest component of rental expense (2) | 5,504 | 6,334 | 7,305 | 12,012 | 8,711 | |||||||||||||||
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Earnings (Loss) as adjusted | $ | 209,165 | $ | 81,906 | $ | (18,524 | ) | $ | 209,865 | $ | 296,861 | |||||||||
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Fixed Charges: | ||||||||||||||||||||
Interest expense, net of capitalized interest | $ | 55,589 | $ | 59,015 | $ | 64,440 | $ | 62,936 | $ | 42,805 | ||||||||||
Capitalized interest | — | — | 146 | 645 | 514 | |||||||||||||||
Dividend requirement on Series B Preferred Stock (3) | — | — | 3,189 | 7,134 | 7,651 | |||||||||||||||
Interest component of rental expense (2) | 5,504 | 6,334 | 7,305 | 12,012 | 8,711 | |||||||||||||||
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Fixed Charges | $ | 61,093 | $ | 65,349 | $ | 75,080 | $ | 82,727 | $ | 59,681 | ||||||||||
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Ratio of Earnings (Loss) to Fixed Charges | 3.4 x | 1.3 x | (0.2 | ) x | 2.5 x | 5.0 x | ||||||||||||||
| (1) | The year ended December 31, 2007 included a $2.7 million loss for the write-off of a receivable related to the sale of Menlo Worldwide’s membership interest in its equity investment. |
| (2) | Estimate of the interest portion of lease payments. |
| (3) | Dividends on shares of the Series B cumulative convertible preferred stock were used to pay debt service on notes issued by Con-way’s Retirement Savings Plan. The notes were repaid at maturity in January 2009. |