Exhibit 12
AIRGAS, INC.
COMPUTATION OF FINANCIAL RATIOS
(In thousands, except ratios)
Ratio of Earnings to Fixed Charges | 2007 | 2008 | 2009 | 2010 | 2011 | |||||||||||||||
EARNINGS COMPUTATION: | ||||||||||||||||||||
Add: | ||||||||||||||||||||
Pretax income from continuing operations before equity earnings and minority interest | $ | 257,144 | $ | 370,762 | $ | 429,353 | $ | 314,100 | $ | 406,123 | ||||||||||
Fixed charges | 106,727 | 143,738 | 133,847 | 107,843 | 98,542 | |||||||||||||||
363,871 | 514,500 | 563,200 | 421,943 | 504,665 | ||||||||||||||||
Subtract: | ||||||||||||||||||||
Preferred dividend requirements of consolidated affiliate | (4,589 | ) | (1,147 | ) | — | — | — | |||||||||||||
Capitalized interest | (502 | ) | (1,647 | ) | (3,400 | ) | (2,873 | ) | (2,336 | ) | ||||||||||
Earnings for purposes of computation | $ | 358,780 | $ | 511,706 | $ | 559,800 | $ | 419,070 | $ | 502,329 | ||||||||||
FIXED CHARGES COMPUTATION: | ||||||||||||||||||||
Interest(1) | $ | 76,227 | $ | 110,888 | $ | 101,279 | $ | 74,312 | $ | 65,055 | ||||||||||
Estimate of the interest component of rent expense | 25,911 | 31,703 | 32,568 | 33,531 | 33,487 | |||||||||||||||
Preferred dividend requirements of consolidated affiliates(2) | 4,589 | 1,147 | — | — | — | |||||||||||||||
Fixed charges for purposes of computation | $ | 106,727 | $ | 143,738 | $ | 133,847 | $ | 107,843 | $ | 98,542 | ||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 3.36X | 3.56X | 4.18X | 3.89X | 5.10X |
(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. |