Exhibit 12
The Scotts Miracle-Gro Company
Computation of Ratio of Earnings to Fixed Charges(1)
($ IN MILLIONS) | For the Fiscal Year Ended September 30, | |||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Add: | ||||||||||||||||||||
Income from continuing operations before income taxes | $ | 337.8 | $ | 241.2 | $ | 57.6 | $ | 247.3 | $ | 225.6 | ||||||||||
Other (2) | 0.5 | 0.8 | 0.7 | (0.5 | ) | 0.3 | ||||||||||||||
Fixed Charges | 70.3 | 78.5 | 105.1 | 96.1 | 57.9 | |||||||||||||||
Deduct: | ||||||||||||||||||||
Capitalized interest | (0.8 | ) | (0.4 | ) | (0.4 | ) | (0.4 | ) | (0.4 | ) | ||||||||||
Earnings | $ | 407.8 | $ | 320.1 | $ | 163.0 | $ | 342.5 | $ | 283.4 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense | $ | 46.8 | $ | 56.4 | $ | 82.2 | $ | 70.7 | $ | 39.6 | ||||||||||
Portion of rent expense representative of interest factor (33%) | 22.7 | 21.7 | 22.5 | 25.0 | 17.9 | |||||||||||||||
Capitalized interest | 0.8 | 0.4 | 0.4 | 0.4 | 0.4 | |||||||||||||||
Fixed Charges | $ | 70.3 | $ | 78.5 | $ | 105.1 | $ | 96.1 | $ | 57.9 | ||||||||||
Ratio of Earnings to Fixed Charges | 5.8 | 4.1 | 1.6 | 3.6 | 4.9 |
(1) | Computation excludes discontinued operations. During the first quarter of fiscal 2010, all Smith & Hawken stores were closed and substantially all operational activities of Smith & Hawken were discontinued. As a result, effective in the first quarter of fiscal 2010, the Company classified Smith & Hawken as discontinued operations. Accordingly, the computations above have been retrospectively updated to recast Smith & Hawken as discontinued operations for each period presented. | |
(2) | Includes amortization of capitalized interest, adjustments for minority interests in consolidated subsidiaries and undistributed earnings of equity method investees. |