Exhibit 12.1
STATEMENT RE COMPUTATION OF RATIOS
| Six Months Ended | Year Ended December 31, | |||||||||||||||||
| June 30, 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||
| (in thousands, except ratios) | ||||||||||||||||||
Earnings: | ||||||||||||||||||
Pre-tax income (loss) | $ | 56,100 | $ | (46,074) | $ | 18,582 | $ | (43,550) | $ | 52,235 | $ | 27,528 | ||||||
Less: income from equity investees | – | 277 | 93 | 358 | 33 | 82 | ||||||||||||
| 56,100 | (46,351) | 18,489 | (43,908) | 52,202 | 27,446 | |||||||||||||
Fixed charges(1) : | ||||||||||||||||||
Interest expense, gross(2) | 28,888 | 70,311 | 94,177 | 100,935 | 17,785 | 18,944 | ||||||||||||
Interest portion of rent expense | 2,457 | 5,241 | 5,163 | 4,098 | 2,241 | 2,512 | ||||||||||||
a) Fixed charges | 31,345 | 75,552 | 99,340 | 105,033 | 20,026 | 21,456 | ||||||||||||
b) Earnings for ratio(3) | $ | 87,445 | $ | 29,201 | $ | 117,829 | $ | 61,125 | $ | 72,228 | $ | 48,902 | ||||||
Ratios: | ||||||||||||||||||
Earnings to fixed charges(b/a) | 2.8 | – (4) | 1.2 | – (4) | 3.6 | 2.3 | ||||||||||||
Deficit of earnings to fixed charges | $ | – | $ | (46,351) | $ | – | $ | (43,908) | $ | – | $ | – | ||||||
| (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 (loss) from continuing operations before income taxes, less income (loss) from equity investees, plus fixed charges. |
| (4) | Due to Itron’s losses for the years ended December 31, 2009 and 2007, the coverage ratio was less than 1:1. Additional earnings of $46,351 and $43,908 would have been needed to achieve a coverage ratio of 1:1 in each of those respective periods. |