Exhibit 12
AIRGAS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratios)
Ratio of Earnings to Fixed Charges | 2008 | 2009 | 2010 | 2011 | 2012 | ||||||||||||||||||
EARNINGS COMPUTATION: | |||||||||||||||||||||||
Add: | |||||||||||||||||||||||
Pretax income from continuing operations before equity earnings and minority interest | $ | 371,658 | $ | 431,269 | $ | 314,046 | $ | 406,933 | $ | 492,166 | |||||||||||||
Fixed charges | 143,738 | 133,847 | 107,843 | 98,542 | 103,227 | ||||||||||||||||||
$ | 515,396 | $ | 565,116 | $ | 421,889 | $ | 505,475 | $ | 595,393 | ||||||||||||||
Subtract: | |||||||||||||||||||||||
Preferred dividend requirements of consolidated affiliate | (1,147 | ) | — | — | — | — | |||||||||||||||||
Capitalized interest | (1,647 | ) | (3,400 | ) | (2,873 | ) | (2,336 | ) | (869 | ) | |||||||||||||
Earnings for purposes of computation | $ | 512,602 | $ | 561,716 | $ | 419,016 | $ | 503,139 | $ | 594,524 | |||||||||||||
FIXED CHARGES COMPUTATION: | |||||||||||||||||||||||
Interest (1) | $ | 110,888 | $ | 101,279 | $ | 74,312 | $ | 65,055 | $ | 69,715 | |||||||||||||
Estimate of the interest component of rent expense | 31,703 | 32,568 | 33,531 | 33,487 | 33,512 | ||||||||||||||||||
Preferred dividend requirements of consolidated affiliates (2) | 1,147 | — | — | — | — | ||||||||||||||||||
Fixed charges for purposes of computation | $ | 143,738 | $ | 133,847 | $ | 107,843 | $ | 98,542 | $ | 103,227 | |||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 3.57X | 4.20X | 3.89X | 5.11X | 5.76X | ||||||||||||||||||
(1) Includes interest expense, capitalized interest, amortization of capitalized financing costs and discount on trade receivable securitization. | |||||||||||||||||||||||
(2) Preferred stock of National Welders was converted to Airgas common stock on July 3, 2007. |
Note: Prior year pre-tax income amounts have been adjusted for the Company's retrospective application of the change in the method of accounting for the portion of the Company's hardgoods inventory valued using the last-in, first-out (“LIFO”) inventory costing method to the average-cost method.