Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(AMOUNTS IN THOUSANDS, EXCEPT RATIO DATA)
(AMOUNTS IN THOUSANDS, EXCEPT RATIO DATA)
Fiscal Year | ||||||||||||||||||||||||
Pro Forma | ||||||||||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2009 | 2009(2) | |||||||||||||||||||
Interest Expense | 34,390 | 34,272 | 33,753 | 33,639 | 33,524 | 167,967 | ||||||||||||||||||
Appropriate Portion (1/3) of Rent Expense | 33,219 | 35,330 | 41,452 | 48,995 | 46,677 | 104,523 | ||||||||||||||||||
Fixed Charges | 67,609 | 69,602 | 75,205 | 82,634 | 80,201 | 272,490 | ||||||||||||||||||
Preference Security Dividends(1) | 44,408 | 21,459 | — | — | — | — | ||||||||||||||||||
Fixed Charges Plus Preference Security Dividends | 112,017 | 91,061 | 75,205 | 82,634 | 80,201 | 272,490 | ||||||||||||||||||
Pre-tax Income | 178,269 | 248,433 | 294,821 | 146,304 | 211,583 | 154,360 | ||||||||||||||||||
Fixed Charges | 67,609 | 69,602 | 75,205 | 82,634 | 80,201 | 272,490 | ||||||||||||||||||
Earnings Before Income Taxes and Fixed Charges | 245,878 | 318,035 | 370,026 | 228,938 | 291,784 | 426,850 | ||||||||||||||||||
Ratio of Earnings to Fixed Charges | 3.6 | 4.6 | 4.9 | 2.8 | 3.6 | 1.6 | ||||||||||||||||||
Ratio of Earnings to Fixed Charges and Preference Security Dividends | 2.2 | 3.5 | 4.9 | 2.8 | 3.6 | 1.6 | ||||||||||||||||||
1 | Preference security dividends represent the amount of pre-tax earnings required to pay the dividends on outstanding preference securities for each of the years presented. We made inducement payments to the holders of our preferred stock in connection with the conversions of such stock in 2005 and 2006 of $12.9 million and $10.2 million, respectively. The inducement payments were based on the net present value of the dividends that we would have been obligated to pay the preferred stockholders through the earliest date on which it was estimated that we would have had the right to convert the convertible preferred stock, net of the net present value of the dividends payable over the same period on the shares of common stock into which the Series B convertible preferred stock was convertible. Therefore, such amounts are considered to be dividends on preference securities for the periods noted and are included in the calculations of preference security dividends set forth above. | |
2 | Reflects the proposed acquisition of Tommy Hilfiger B.V. and the incurrence and repayment of debt in connection therewith. |