ITRON, INC. - FORM 10-K - EX-12.1 - STATEMENT RE COMPUTATION OF RATIOS - February 24, 2010

Attached files

file filename
10-K - ANNUAL REPORT ON FORM 10-K FOR THE PERIOD ENDED DECEMBER 31, 2009 - ITRON, INC.form10k.htm
EX-4.6 - CREDIT FACILITY AGREEMENT NO. 2 - ITRON, INC.ex_4-6.htm
EX-23.1 - CONSENT OF ERNST & YOUNG LLP INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - ITRON, INC.ex_23-1.htm
EX-10.5 - INDEMNIFICATION AGREEMENTS - ITRON, INC.ex_10-5.htm
EX-21.1 - SUBSIDIARIES OF REGISTRANT - ITRON, INC.ex_21-1.htm
EX-31.1 - CERTIFICATE PURSUANT TO SECTION 302 - ITRON, INC.ex_31-1.htm
EX-31.2 - CERTIFICATE PURSUANT TO SECTION 302 - ITRON, INC.ex_31-2.htm
EX-32.1 - CERTIFICATE PURSUANT TO SECTION 906 - ITRON, INC.ex_32-1.htm

Exhibit 12.1
STATEMENT RE COMPUTATION OF RATIOS
 
 

   
Year Ended December 31,
  
   
2009
    
2008
    
2007
    
2006
    
2005
  
   
(in thousands, except ratios)
  
                               
Earnings:
                              
Pre-tax income (loss)(5)
   $ (46,074 )   $ 18,582     $ (43,550 )   $ 52,235     $ 27,528  
Less: income from equity investees
     277       93       358       33       82  
      (46,351 )     18,489       (43,908 )     52,202       27,446  
                                         
Fixed charges (1):
                                        
Interest expense, gross (2) (5)
     70,311       94,177       100,935       17,785       18,944  
Interest portion of rent expense
     5,241       5,163       4,098       2,241       2,512  
                                         
a) Fixed charges
     75,552       99,340       105,033       20,026       21,456  
                                         
b) Earnings for ratio (3)
   $ 29,201     $ 117,829     $ 61,125     $ 72,228     $ 48,902  
                                         
Ratios:
                                        
Earnings to fixed charges (b/a)
     - (4)     1.2       - (4)     3.6       2.3  
                                         
Deficit of earnings to fixed charges
   $ (46,351 )   $ -     $ (43,908 )   $ -     $ -  


(1)  
Fixed charges consist of interest on indebtedness and amortization of debt issuance costs plus that portion of lease rental expense representative of the interest factor.
 
(2)  
Interest expense, gross, includes amortization of prepaid debt fees and discount.
 
(3)  
Earnings for ratio consist of income (loss) from continuing operations before income taxes, less income (loss) from equity investees, plus fixed charges.
 
(4)  
Due to Itron's losses for the years ended December 31, 2009 and 2007, the coverage ratio was less than 1:1. Additional earnings of $46,351 and $43,908 would have been needed to achieve a coverage ratio of 1:1 in each of those respective periods.
 
(5)  
On January 1, 2009, we adopted FASB Staff Position (FSP) APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) (FSP 14-1) relating to our convertible senior subordinate notes issued in August 2006. (The guidance in FSP 14-1 is now embedded within ASC 470-20). We used the SEC staff’s Alternative A transition election for presenting prior financial information, and therefore, the financial information as of and for the year ended December 31, 2006 has not been adjusted and is not comparable to the financial information as of and for the years ended December 31, 2009, 2008, and 2007. Refer to Item 8: "Financial Statements and Supplementary Data Note 1: Summary of Significant Accounting Policies" for a discussion of the effects of the implementation of FSP 14-1.


ITRON, INC. Reports