EX-12.1 3 exhibit121ratioofearningst.htm EX-12.1

| Mohawk Industries, Inc. |  | Exhibit 12.1 |
| Statement Regarding Computation of Earnings to Fixed Charges |  |  |
| (In Thousands, Except Ratio Data) |  |  |
| Year Ended December 31, |  |  |
| 2010 |  | 2011 |  | 2012 |  | 2013 |  | 2014 |  | Three Months Ended, April 4, 2015 (3) |
Fixed rent expense | $ | 105,976 |  |  | 103,416 |  |  | 97,587 |  |  | 116,541 |  |  | 114,529 |  |  | 28,359 |  |
Principal | 70,651 |  |  | 68,944 |  |  | 65,058 |  |  | 77,694 |  |  | 76,353 |  |  | 18,906 |  |
Interest | 35,325 |  |  | 34,472 |  |  | 32,529 |  |  | 38,847 |  |  | 38,176 |  |  | 9,453 |  |
Total | $ | 105,976 |  |  | 103,416 |  |  | 97,587 |  |  | 116,541 |  |  | 114,529 |  |  | 28,359 |  |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |
Portion of rent expense representative of interest | 35,325 |  |  | 34,472 |  |  | 32,529 |  |  | 38,847 |  |  | 38,176 |  |  | 9,453 |  |
Capitalized interest | 4,240 |  |  | 6,197 |  |  | 4,577 |  |  | 8,167 |  |  | 9,202 |  |  | 2,009 |  |
Interest expensed | 133,151 |  |  | 101,617 |  |  | 74,713 |  |  | 92,246 |  |  | 98,207 |  |  | 16,449 |  |
Total fixed charges (1) | $ | 172,716 |  |  | 142,286 |  |  | 111,819 |  |  | 139,260 |  |  | 145,585 |  |  | 27,911 |  |
Earnings (2) : |  |  |  |  |  |  |  |  |  |  |  |
Earnings before income taxes | 192,648 |  |  | 199,874 |  |  | 304,492 |  |  | 445,571 |  |  | 663,891 |  |  | 28,408 |  |
Fixed charges | 172,716 |  |  | 142,286 |  |  | 111,819 |  |  | 139,260 |  |  | 145,585 |  |  | 27,911 |  |
Amortization of capitalized interest | 5,178 |  |  | 5,607 |  |  | 5,404 |  |  | 5,502 |  |  | 6,182 |  |  | 1,316 |  |
less: |  |  |  |  |  |  |  |  |  |  |  |
Capitalized interest | (4,240 | ) |  | (6,197 | ) |  | (4,577 | ) |  | (8,167 | ) |  | (9,202 | ) |  | (2,009 | ) |
Total earnings | $ | 366,303 |  |  | 341,570 |  |  | 417,138 |  |  | 582,166 |  |  | 806,456 |  |  | 55,626 |  |
Ratio of earnings to fixed charges | 2.1 |  |  | 2.4 |  |  | 3.7 |  |  | 4.1 |  |  | 5.5 |  |  | 1.9 |  |
(1) Fixed charges are defined as interest expensed and capitalized plus an estimate of interest within rental expense |  |  |  |  |  |
(2) Earnings consists of earnings from continuing operations before income taxes plus fixed charges and amortization of capitalized interest less total capitalized interest |
(3) Earnings for the three months ended April 4, 2015 (as defined in Note (2) above) reflects a $125,000 charge related to the settlement and further defense of the polyurethane foam litigation described in more detail in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended April 4, 2015. Excluding the litigation-related charge, earnings for the quarter would be $153,000 and the ratio of earnings to fixed charges would be 6.4.