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EXHIBIT 12.1
SERVICE CORPORATION INTERNATIONAL
RATIO OF EARNINGS TO FIXED CHARGES
Twelve Months Ended December 31,
2000 1999
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(Thousands, except ratio amounts)
Pretax income from continuing operations ....................................... $ (516,978) $ (66,693)
Undistributed income of less than 50% owned equity investees ................... (2,510) 267
Minority interest in income of majority owned subsidiaries with fixed
charges ........................................................................ 408 (1,490)
Add fixed charges as adjusted (from below) ..................................... 319,637 276,419
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$ (199,443) $ 208,503
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Fixed charges:
Interest expense:
Corporate ................................................................. $ 275,157 $ 236,241
Financial services ........................................................ 8,833 11,805
Capitalized ............................................................... 1 1,430
Amortization of debt cost ...................................................... 6,392 1,954
1/3 of rental expense .......................................................... 29,255 26,419
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Fixed charges .................................................................. 319,638 277,849
Less: Capitalized interest .................................................... (1) (1,430)
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Fixed charges as adjusted ...................................................... $ 319,637 $ 276,419
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Ratio (earnings divided by fixed charges)* ..................................... (0.62) 0.75
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* For purposes of computing the ratio of earnings to fixed charges, earnings
consist of income from continuing operations before income taxes,
extraordinary gains, and cumulative effect of accounting change; less
undistributed income of equity investees which are less than 50% owned; plus
the minority interest of majority owned subsidiaries with fixed charges, and
fixed charges (excluding capital interest). Fixed charges consist of interest
expense, whether capitalized or expensed, amortization of debt costs and
one-third of rental expense which the Company considers representative of the
interest factor in the rentals. The decrease in the Company's ratio of
earnings to fixed charges in 2000 compared to 1999 is attributable to
restructuring and nonrecurring charges recorded (see note seventeen to the
consolidated financial statements in Item 8 of this Form 10-K) and increased
interest expense related to the Company not being able to access commercial
paper markets. Without the above mentioned restructuring and nonrecurring
charges, the ratio of earnings to fixed charges would have been 0.82 and 2.16
for the years ended December 31, 2000 and 1999.