Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Income (loss) before income taxes (1) | $ | 69,552 | $ | 100,266 | $ | 193,883 | $ | 203,577 | |||||||||
Add fixed charges: | |||||||||||||||||
Interest expense | 22,348 | 22,291 | 44,982 | 44,696 | |||||||||||||
Amortization of discount on convertible notes (2) | 4,396 | 6,214 | 8,722 | 12,345 | |||||||||||||
Amortization of debt issuance expense | 690 | 837 | 1,379 | 1,678 | |||||||||||||
Interest expense-special items (2) | — | 647 | — | 647 | |||||||||||||
Interest portion of rent expense | 3,924 | 3,844 | 7,648 | 7,593 | |||||||||||||
Adjusted income (loss) | $ | 100,910 | $ | 134,099 | $ | 256,614 | $ | 270,536 | |||||||||
Fixed charges: | |||||||||||||||||
Interest expense | $ | 22,348 | $ | 22,291 | $ | 44,982 | $ | 44,696 | |||||||||
Amortization of discount on convertible notes (2) | 4,396 | 6,214 | 8,722 | 12,345 | |||||||||||||
Amortization of debt issuance expense | 690 | 837 | 1,379 | 1,678 | |||||||||||||
Interest expense-special items (2) | — | 647 | — | 647 | |||||||||||||
Interest portion of rent expense | 3,924 | 3,844 | 7,648 | 7,593 | |||||||||||||
Fixed charges | $ | 31,358 | $ | 33,833 | $ | 62,731 | $ | 66,959 | |||||||||
Ratio of earnings to fixed charges | 3.2 | x | 4.0 | x | 4.1 | x | 4.0 | x | |||||||||
(1) | Certain of the Company’s debt agreements and indentures provide for the exclusion of various special charges from applicable financial covenant coverage calculations. The following listing of charges, which are included in the Company’s income from continuing operations before income taxes, includes certain of these excludable charges (in thousands): |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Settlement, litigation and other related charges (a) | $ | 57,702 | $ | 7,547 | $ | 67,522 | $ | 14,599 | |||||||||
Other charges (b) | 11,405 | 11,284 | 12,454 | 21,560 | |||||||||||||
Total - non-interest expense special items | $ | 69,107 | $ | 18,831 | $ | 79,976 | $ | 36,159 | |||||||||
(a) See further discussion at the "Commitment and Contingencies" note of the Notes to the Consolidated Financial Statements. | |||||||||||||||||
(b) See further discussion at the "Other Charges" caption of the "Significant Accounting Policies" note of the Notes to the Consolidated Financial Statements. | |||||||||||||||||
(2) | See the “Debt” note of the Notes to Consolidated Financial Statements. |