Exhibit 99.1(a)
CNF INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
Nine Months Ended
September 30,
2002 2001
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Fixed Charges:
Interest Expense $17,336 $21,635
Capitalized Interest 398 697
Amortization of Debt Expense 990 772
Dividend Requirement on Series B
Preferred Stock [1] 7,772 7,970
Interest Component of
Rental Expense [2] 25,395 37,197
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$51,891 $68,271
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Earnings (Loss):
Income (Loss) from Continuing
Operations before Taxes $102,949 $(346,947)
Fixed Charges 51,891 68,271
Capitalized Interest (398) (697)
Preferred Dividend
Requirements [3] (7,772) (7,970)
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$146,670 $(287,343)
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Ratio of Earnings (Loss) to Fixed Charges: 2.8x (4.2)x
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Deficiency in the coverage of Fixed
Charges by Earnings (Loss)
before Fixed Charges $ - $(355,614)
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[1] Dividends on shares of the Series B cumulative convertible preferred
stock are used to pay debt service on notes issued by the Company's
Thrift and Stock Plan.
[2] Estimate of the interest portion of lease payments.
[3] Preferred stock dividend requirements included in fixed charges but not
included in the determination of Income (Loss) from Continuing Operations
before Taxes.