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GENZYME CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Amounts in Thousands)
| Year Ended December 31, | Nine Months Ended September 30, 2004 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1999 | 2000 | 2001 | 2002 | 2003 | |||||||||||||||||
Income (loss) before income taxes | $ | 117,928 | $ | (7,462 | ) | $ | (118,343 | ) | $ | 104,211 | $ | 5,055 | $ | 348,730 | |||||||
Add: equity in loss of equity method investments | 42,696 | 44,965 | 35,681 | 16,858 | 16,743 | 12,467 | |||||||||||||||
Deduct: minority interest | (3,674 | ) | (4,625 | ) | (2,259 | ) | — | (2,232 | ) | (3,715 | ) | ||||||||||
Income (loss) before income taxes, equity in loss of equity method investments and minority interest | 156,950 | 32,878 | (84,921 | ) | 121,069 | 19,566 | 357,482 | ||||||||||||||
Add: | |||||||||||||||||||||
Fixed charges: | |||||||||||||||||||||
Portion of rents representative of the interest factor | 7,533 | 9,233 | 11,233 | 11,833 | 15,233 | 11,425 | |||||||||||||||
Amortization of debt issuance costs(1) | 1,333 | 1,148 | 2,638 | 2,964 | 3,311 | 9,249 | |||||||||||||||
Interest expense | 20,438 | 14,562 | 34,495 | 24,188 | 23,289 | 24,001 | |||||||||||||||
Amortization of capitalized interest | 3,021 | 3,287 | 3,829 | 4,178 | 5,132 | 4,308 | |||||||||||||||
Minority interest in pre-tax loss of subsidiaries that have not included fixed charges | 3,674 | 4,625 | 2,259 | — | 2,232 | 3,715 | |||||||||||||||
As adjusted income (loss) | $ | 192,949 | $ | 65,733 | $ | (30,467 | ) | $ | 164,232 | $ | 68,763 | 410,180 | |||||||||
Fixed charges: | |||||||||||||||||||||
Interest expense | $ | 20,438 | $ | 14,562 | $ | 34,495 | $ | 24,188 | $ | 23,289 | $ | 24,001 | |||||||||
Capitalized interest | 1,329 | 2,713 | 4,173 | 5,250 | 6,136 | 6,242 | |||||||||||||||
Amortization of debt issuance costs(1) | 1,333 | 1,148 | 2,638 | 2,964 | 3,311 | 9,249 | |||||||||||||||
Portion of rents representative of the interest factor | 7,533 | 9,233 | 11,233 | 11,833 | 15,233 | 11,425 | |||||||||||||||
Total fixed charges | $ | 30,633 | $ | 27,656 | $ | 52,539 | $ | 44,235 | $ | 47,969 | $ | 50,917 | |||||||||
Ratio of earnings to fixed charges(2) | 6.3 | x | 2.4 | x | — | 3.7 | x | 1.4 | x | 8.1 | x |
- (1)
- Amortization of debt issuance costs for the nine months ended September 30, 2004 includes a charge of $5.3 million to write off the unamortized portion of the debt fees associated with our 3% convertible subordinated debentures, which we redeemed in June 2004.
- (2)
- The ratio of earnings to fixed charges is not presented for the year ended December 31, 2001 because in such year fixed charges exceeded earnings (as set forth above) by $83.0 million primarily due to:
- •
- $95.6 million of charges for in-process research and development resulting from the acquisitions of Novazyme Pharmaceuticals, Inc. and Wyntek Diagnostics, Inc.; and
- •
- a loss of $25.0 million related to the sale of our Snowden-Pencer line of surgical instruments.
GENZYME CORPORATION AND SUBSIDIARIES Computation of Ratio of Earnings to Fixed Charges (Amounts in Thousands)