EX-12.1 7 ex121ratioofearningstofixe.htm EX-12.1
Exhibit 12.1

| Mohawk Industries, Inc.
| Statement Regarding Computation of Ratio of Earnings to Fixed Charges
| (In Thousands, Except Ratio Data)
| Year Ended December 31, |
| 2012 |  | 2013 |  | 2014 |  | 2015(3) |  | 2016 | Six Months Ended July 1, 2017
Fixed charges: |  |  |  |  |  |  |  |  |  |
Portion of rent expense representative of interest(1) | 32,529 |  |  | 38,847 |  |  | 38,176 |  |  | 36,924 |  |  | 41,701 |  | 22,345 |
Capitalized interest | 4,577 |  |  | 8,167 |  |  | 9,202 |  |  | 7,091 |  |  | 5,608 |  | 3,622 |
Interest expensed | 74,713 |  |  | 92,246 |  |  | 98,207 |  |  | 71,086 |  |  | 40,547 |  | 16,595 |
Total fixed charges (2) | $ | 111,819 |  |  | 139,260 |  |  | 145,585 |  |  | 115,101 |  |  | 87,856 |  | 42,562 |
Earnings (2) : |  |  |  |  |  |  |  |  |  |
Earnings from continuing operations before income taxes | 304,492 |  |  | 445,571 |  |  | 663,891 |  |  | 748,861 |  |  | 1,241,125 |  | 613,843 |
Fixed charges | 111,819 |  |  | 139,260 |  |  | 145,585 |  |  | 115,101 |  |  | 87,856 |  | 42,562 |
Amortization of capitalized interest | 5,452 |  |  | 5,832 |  |  | 6,230 |  |  | 6,326 |  |  | 6,770 |  | 3,317 |
less: |  |  |  |  |  |  |  |  |  |
Capitalized interest | (4,577 | ) |  | (8,167 | ) |  | (9,202 | ) |  | (7,091 | ) |  | (5,608 | ) | (3,622 | )
Total earnings | $ | 417,186 |  |  | 582,496 |  |  | 806,504 |  |  | 863,197 |  |  | 1,330,143 |  | 656,100 |
Ratio of earnings to fixed charges | 3.7 |  |  | 4.1 |  |  | 5.5 |  |  | 7.4 |  |  | 15.1 |  | 15.4 |
(1)Interest portion of rental expense is estimated to equal 1/3 of such expense, which is considered a reasonable approximation of the interest factor.
(2) For the purposes of determining the ratio of earnings to fixed charges, earnings consists of the aggregate of earnings from continuing operations before income taxes plus fixed charges and amortization of capitalized interest, less total capitalized interest. Fixed charges are defined as interest expensed and capitalized plus an estimate of interest included within rental expense.
(3) Earnings (as defined above) for the year ended December 31, 2015 reflect a $122.5 million charge related to the settlement and further defense of certain polyurethane foam litigation. Excluding this litigation-related charge, earnings for the year ended December 31, 2015 would have been $985.7 million and the ratio of earnings to fixed charges would have been 8.6x.