CONSECO FINANCE CORP. AND SUBSIDIARIES
Exhibit 12.1
Computation of Ratio of Earnings to Fixed
Charges for the years ended December 31,
2001, 2000 and 1999
(Dollars in millions)
2001 2000 1999
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Pretax income from operations:
Net income (loss).................................................. $ (102.7) $ (525.3) $ 47.9
Add income tax benefit............................................. (56.4) (262.8) (16.4)
Add extraordinary (gain) loss on extinguishment of debt............ (6.1) - 2.5
Add cumulative effect of accounting change......................... - 45.5 -
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Pretax income (loss) from operations............................ (165.2) (742.6) 34.0
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Add fixed charges:
Interest expense................................................... 1,234.4 1,152.4 341.3
Portion of rental (a).............................................. 6.9 9.4 7.2
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Fixed charges................................................... 1,241.3 1,161.8 348.5
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Adjusted earnings............................................... $1,076.1 $ 419.2 $382.5
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Ratio of earnings to fixed charges............................. (b) (c) 1.10X
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(a) Interest portion of rental is estimated to be 33 percent.
(b) For such ratio, adjusted earnings were $165.2 million less than fixed
charges. Adjusted earnings for 2001 included impairment and special
charges of $408.4 million as described in greater detail in the notes
to the accompanying consolidated financial statements.
(c) For such ratio, adjusted earnings were $742.6 million less than fixed
charges. Adjusted earnings for 2000 included impairment and special
charges of $910.0 million as described in greater detail in the notes
to the accompanying consolidated financial statements.
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