Exhibit 99.1(b)
CNF INC.
COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollars in thousands)
Six Months Ended
June 30,
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2003 2002
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Combined Fixed Charges and
Preferred Stock Dividends:
Interest Expense $15,023 $11,523
Capitalized Interest 134 368
Amortization of Debt Expense 663 658
Dividend Requirement on Series
B Preferred Stock [1] 5,069 5,208
Dividend Requirement on Preferred
Securities of Subsidiary Trust 3,126 3,126
Interest Component of Rental
Expense [2] 15,367 11,674
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$39,382 $32,557
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Earnings:
Income Before Taxes $59,548 $69,106
Fixed Charges 39,382 32,557
Capitalized Interest (134) (368)
Preferred Dividend
Requirements [3] (5,069) (5,208)
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$93,727 $96,087
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Ratio of Earnings to Combined Fixed
Charges and Preferred Stock Dividends: 2.4x 3.0x
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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 CNF'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
deducted in the determination of Income Before Taxes.