EXHIBIT 12.1
THE PMI GROUP, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year ended December 31, | ||||||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||
(In thousands, except for ratios) | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Income from continuing operations before income taxes (1) | $ | 478,991 | $ | 393,122 | $ | 450,162 | $ | 432,272 | $ | 364,348 | ||||||||||
Less: Equity in earnings from unconsolidated subsidiaries | (83,554 | ) | (4,597 | ) | (44,225 | ) | (18,788 | ) | (11,880 | ) | ||||||||||
Add: Equity in earnings (losses) from unconsolidated subsidiaries with greater than 50% ownership | 764 | (31,096 | ) | 23,371 | — | — | ||||||||||||||
Add: Distributed earnings of subsidiaries with less than 50% ownership | 1,007 | 157 | 5,798 | — | — | |||||||||||||||
Fixed charges | 44,497 | 40,414 | 30,599 | 27,173 | 22,426 | |||||||||||||||
Total earnings | $ | 441,705 | $ | 398,000 | $ | 465,705 | $ | 440,657 | $ | 374,894 | ||||||||||
Fixed charges | ||||||||||||||||||||
Interest expense and distributions on mandatorily redeemable preferred securities | $ | 34,626 | $ | 24,491 | $ | 21,684 | $ | 22,822 | $ | 18,670 | ||||||||||
Interest expense of unconsolidated subsidiaries with greater than 50% ownership | 7,540 | 12,389 | 5,493 | — | — | |||||||||||||||
Interest component of rent expense (2) | 2,331 | 3,534 | 3,422 | 4,351 | 3,756 | |||||||||||||||
Total fixed charges | $ | 44,497 | $ | 40,414 | $ | 30,599 | $ | 27,173 | $ | 22,426 | ||||||||||
Ratio of earnings to fixed charges | 9.93 | 9.85 | 15.22 | 16.22 | 16.72 | |||||||||||||||
(1) | In the fourth quarter of 2003, the Company announced that it had reached a definitive agreement to sell APTIC. Following the announcement, the Company began reporting APTIC’s results as discontinued operations in the Consolidated Statements of Operations. The calculation of the ratio of earnings to fixed charges excludes discontinued operations. We restated 2002 and prior periods. |
(2) | Represents an estimated interest factor. |