| STATEMENT RE COMPUTATION OF RATIOS | ||||||||||||||||
| Year Ended December 31, | ||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||
| (in thousands, except ratios) | ||||||||||||||||
| Earnings: | ||||||||||||||||
| Pre-tax income (loss) | $ | 32,073 | $ | (32,580 | ) | $ | 52,235 | $ | 27,528 | $ | (9,406 | ) | ||||
| Less: income from equity investees | 93 | 358 | 33 | 82 | - | |||||||||||
| 31,980 | (32,938 | ) | 52,202 | 27,446 | (9,406 | ) | ||||||||||
Fixed charges (1): | ||||||||||||||||
Interest expense, gross (2) | 80,735 | 89,965 | 17,785 | 18,944 | 13,145 | |||||||||||
| Interest portion of rent expense | 5,163 | 4,098 | 2,241 | 2,512 | 2,696 | |||||||||||
| a) Fixed charges | 85,898 | 94,063 | 20,026 | 21,456 | 15,841 | |||||||||||
b) Earnings for ratio (3) | $ | 117,878 | $ | 61,125 | $ | 72,228 | $ | 48,902 | $ | 6,435 | ||||||
| Ratios: | ||||||||||||||||
Earnings to fixed charges (b/a) | 1.4 | - | (4) | 3.6 | 2.3 | - | (4) | |||||||||
| Deficit of earnings to fixed charges | $ | - | $ | (32,938 | ) | $ | - | $ | - | $ | (9,406 | ) | ||||
(1) Fixed charges consist of interest on indebtedness and amortization of debt issuance costs plus that portion of lease rental expense representative of the interest factor. | ||||||||||
| (2) Interest expense, gross, includes amortization of prepaid debt fees and discount. | ||||||||||
(3) Earnings for ratio consist of income from continuing operations before income taxes, less income (loss) from equity investees, plus fixed charges. | ||||||||||
(4) Due to Itron's losses in the years ended December 31, 2007 and 2004, the ratio coverage was less than 1:1. Additional earnings of $32,938 and $9,406 would have been needed to achieve a coverage of 1:1 in each of those respective years. | ||||||||||