EXHIBIT 12.1
CIT GROUP INC. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
($ in millions)
Three Twelve Nine
Months Months Months
Ended Ended Ended Year Ended
December 31, September 30, September 30, December 31,
2002 2002 2001 2000
----------- ----------- ---------- -------------
(successor) (successor) (combined) (predecessor)
Net income .......................................................... $ 141.3 $(6,698.7) $ 263.3 $ 611.6
Provision for income taxes .......................................... 90.3 367.6 236.3 373.9
-------- --------- -------- --------
Earnings before provision for income taxes .......................... 231.6 (6,331.1) 499.6 985.5
-------- --------- -------- --------
Fixed charges:
Interest and debt expenses on indebtedness ........................ 340.0 1,439.3 1,619.8 2,497.7
Minority interest in subsidiary trust holding solely
debentures of the Company, before tax ........................... 4.4 16.9 14.4 19.2
Interest factor-one-third of rentals on real and
personal properties ............................................. 3.8 15.6 13.5 19.6
-------- --------- -------- --------
Total fixed charges ................................................. 348.2 1,471.8 1,647.7 2,536.5
-------- --------- -------- --------
Total earnings before provisions for income taxes
and fixed charges ............................................... $ 579.8 $(4,859.3) $2,147.3 $3,522.0
======== ========= ======== ========
Ratios of earnings to fixed charges ................................. 1.67x (1) 1.30x 1.39x
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(1) Earnings were insufficient to cover fixed charges by $6,331.1 million in
the twelve months ended September 30, 2002. Earnings for the twelve months
ended September 30, 2002 included a goodwill impairment charge of $6,511.7
million in accordance with SFAS 142, "Goodwill and Other Intangible
Assets."