Exhibit 12.1
GENZYME CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Amounts in Thousands)
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| | Three
Months
Ended
March 31,
2005
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| | Year Ended December 31,
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| | 2000
| | 2001
| | 2002
| | 2003
| | 2004
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| Income (loss) before income taxes | | $ | (7,462 | ) | $ | (118,343 | ) | $ | 104,211 | | $ | 5,055 | | $ | 227,696 | | $ | 139,953 | |
| Add: equity in loss of equity method investments | | | 44,965 | | | 35,681 | | | 16,858 | | | 16,743 | | | 15,624 | | | 1,718 | |
| Deduct: minority interest | | | (4,625 | ) | | (2,259 | ) | | — | | | (2,232 | ) | | (5,999 | ) | | (2,194 | ) |
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| Income (loss) before income taxes, equity in loss of equity method investments and minority interest | | | 32,878 | | | (84,921 | ) | | 121,069 | | | 19,566 | | | 237,321 | | | 139,477 | |
Add: |
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| | Fixed charges: | | | | | | | | | | | | | | | | | | | |
| | | Portion of rents representative of the interest factor | | | 9,233 | | | 11,233 | | | 11,833 | | | 15,233 | | | 15,233 | | | 3,808 | |
| | | Amortization of debt issuance costs(1) | | | 1,148 | | | 2,638 | | | 2,964 | | | 3,311 | | | 10,205 | | | 956 | |
| | | Interest expense | | | 14,562 | | | 34,495 | | | 24,188 | | | 23,289 | | | 28,022 | | | 2,852 | |
| | Amortization of capitalized interest | | | 3,287 | | | 3,829 | | | 4,178 | | | 5,132 | | | 5,743 | | | 1,572 | |
| | Minority interest in pre-tax loss of subsidiaries that have not included fixed charges | | | 4,625 | | | 2,259 | | | — | | | 2,232 | | | 5,999 | | | 2,194 | |
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| As adjusted income (loss) | | $ | 65,733 | | $ | (30,467 | ) | $ | 164,232 | | $ | 68,763 | | $ | 302,523 | | $ | 150,859 | |
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Fixed charges: |
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| | Interest expense | | $ | 14,562 | | $ | 34,495 | | $ | 24,188 | | $ | 23,289 | | $ | 28,022 | | $ | 2,852 | |
| | Capitalized interest | | | 2,713 | | | 4,173 | | | 5,250 | | | 6,136 | | | 8,663 | | | 2,664 | |
| | Amortization of debt issuance costs(1) | | | 1,148 | | | 2,638 | | | 2,964 | | | 3,311 | | | 10,205 | | | 956 | |
| | Portion of rents representative of the interest factor | | | 9,233 | | | 11,233 | | | 11,833 | | | 15,233 | | | 15,233 | | | 3,808 | |
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| Total fixed charges | | $ | 27,656 | | $ | 52,539 | | $ | 44,235 | | $ | 47,969 | | $ | 62,123 | | $ | 10,280 | |
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| Ratio of earnings to fixed charges(2) | | | 2.4 | x | | — | | | 3.7 | x | | 1.4 | x | | 4.9 | x | | 14.7 | x |
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- (1)
- Amortization of debt issuance costs for the year ended December 31, 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:
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- $95.6 million of charges for in-process research and development resulting from the acquisitions of Novazyme Pharmaceuticals, Inc. and Wyntek Diagnostics, Inc.; and
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- a loss of $25.0 million related to the sale of our Snowden-Pencer line of surgical instruments.
