Adaptec 2002 Annual Report Download - page 110

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Exhibit 12.1
Statement of Computation of Ratio of Earnings to Fixed Charges (1)
(in thousands, except ratios)
Year Ended December 31 (2)
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
2002 2001 2000 1999 1998
−−−−−−−−−−−−−− −−−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−−
Earnings:
Income (loss) before income taxes and
before income from equity investees $ (83,865) $ (656,817) $ 177,136 $ 112,383 $ 1,298
Fixed charges:
Interest expense and amortization of debt
issuance costs 12,104 4,987 808 1,549 1,434
Rental expense interest factor (3) 4,122 5,300 2,741 1,464 785
−−−−−−−−−−−−−− −−−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−−
Total fixed charges 16,226 10,287 3,549 3,013 2,219
−−−−−−−−−−−−−− −−−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−−−− −−−−−−−−−−−−
Earnings (loss) available to cover fixed charges $ (67,639) $ (646,530) $ 180,685 $ 115,396 $ 3,517
============== =============== ============== ============== ============
Ratio of earnings to fixed charges (4) − − 50.9x 38.3x 1.6x
============== =============== ============== ============== ============
(1) The ratio of earnings to fixed charges was computed by dividing
earnings by fixed charges for the periods indicated. Earnings consist
of income (loss) before provision for income taxes less income from
equity investees plus fixed charges. Fixed charges consist of interest
charges, amortization of debt issuance costs, and that portion of
rental expense that the Company believes to be a reasonable
approximation of the interest factor included in rental expense.
(2) The Company's fiscal year ends on the last Sunday of the calendar year.
The reference to December 31 has been used as the fiscal year end for
ease of presentation.
(3) The portion of operating lease rental expense that the Company believes
to be a reasonable approximation of the interest factor is deemed to be
one−third of total operating lease rental expense.
(4) Earnings were inadequate to cover fixed charges by $83.9 million for
the fiscal year ended December 31, 2002 and by $656.8 million for the
fiscal year ended December 31, 2001.