Exhibit 12.1
EXHIBIT 12.1
CIT GROUP INC. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
($ in millions)
Three Months Nine Months
Year Ended Ended Year Ended Ended Year Ended Year Ended
December 31, December 31, September 30, September 30, December 31, December 31,
2003 2002 2002 2001 2000 1999
------------ ------------ ------------- ------------- ------------ ------------
(successor) (successor) (successor) (combined) (predecessor) (predecessor)
Net income ........................ $ 566.9 $141.3 $(6,698.7) $ 263.3 $ 611.6 $ 389.4
Provision for income taxes ........ 361.6 90.3 367.6 236.3 373.9 207.6
-------- ------ --------- -------- -------- --------
Earnings before provision
for income taxes ................. 928.5 231.6 (6,331.1) 499.6 985.5 597.0
-------- ------ --------- -------- -------- --------
Fixed charges:
Interest and debt expenses
on indebtedness .............. 1,319.3 340.0 1,439.3 1,619.8 2,497.7 1,293.4
Minority interest in
subsidiary trust holding
Solely debentures of the
Company, before tax .......... 8.8 4.4 16.9 14.4 19.2 19.2
Interest factor-one-third of
rentals on real and
personal properties .......... 14.4 3.8 15.6 13.5 19.6 10.6
-------- ------ --------- -------- -------- --------
Total fixed charges ............... 1,342.5 348.2 1,471.8 1,647.7 2,536.5 1,323.2
-------- ------ --------- -------- -------- --------
Total earnings before
provisions for income
taxes and fixed charges ...... $2,271.0 $579.8 $(4,859.3) $2,147.3 $3,522.0 $1,920.2
======== ====== ========= ======== ======== ========
Ratios of earnings to
fixed charges .................. 1.69x 1.67x (1) 1.30x 1.39x 1.45x
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(1) Earnings were insufficient to cover fixed charges by $6,331.1 million in
the year ended September 30, 2002. Earnings for the year ended September
30, 2002 included a goodwill impairment charge of $6,511.7 million in
accordance with SFAS 142, "Goodwill and Other Intangible Assets."