Exhibit 99.1(b) CNF INC. COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Dollars in thousands) Nine Months Ended September 30, 2002 2001 ---------- ---------- Combined Fixed Charges and Preferred Stock Dividends: 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 Dividend Requirement on Preferred Securities of Subsidiary Trust 4,689 4,689 Interest Component of Rental Expense [2] 25,395 37,197 ---------- ---------- $56,580 $72,960 ---------- ---------- Earnings (Loss): Income (Loss) from Continuing Operations before Taxes $102,949 $(346,947) Fixed Charges 56,580 72,960 Capitalized Interest (398) (697) Preferred Dividend Requirements [3] (7,772) (7,970) ---------- ---------- $151,359 $(282,654) ---------- ---------- Ratio of Earnings (Loss) to Combined Fixed Charges and Preferred Stock Dividends: 2.7x (3.9)x ========== ========== Deficiency in the coverage of Fixed Charges by Earnings (Loss) before Fixed Charges $ - $(355,614) ========== ========== [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.