Exhibit 12
COMPUTATION OF RATIOS
For purposes of calculating the ratio of earnings to fixed charges, the term “earnings” is the amount resulting from adding (i) pre-tax income from continuing operations, (ii) fixed charges, (iii) distributed income of equity investments, and (iv) amortization of capitalized interest, reduced by (i) equity in earnings of equity method investments and (ii) pre-tax income from continuing operations attributable to noncontrolling interests that have not incurred fixed charges. “Fixed charges” consist of (i) interest expensed and capitalized, (ii) amortized premiums, discounts, and capitalized expenses related to indebtedness, and (iii) an estimate of the interest within rental expense.
The following table sets forth information regarding our ratio of earnings to fixed charges for the periods shown.
(Dollars in thousands)
Years Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Income from continuing operations before income taxes | $ | 287,794 | $ | 278,095 | $ | 222,848 | $ | 230,360 | $ | 95,237 | |||||||||
Fixed charges | 168,241 | 186,231 | 196,991 | 180,689 | 110,179 | ||||||||||||||
Less: Equity in earnings of equity method investments | (64,750 | ) | (64,719 | ) | (51,020 | ) | (44,116 | ) | (52,731 | ) | |||||||||
Distributed income of equity investments | 66,259 | 64,650 | 51,435 | 42,809 | 42,554 | ||||||||||||||
Amortization of capitalized interest | (21 | ) | 37 | — | — | — | |||||||||||||
Net income attributable to noncontrolling interests that have not incurred fixed charges | (6,317 | ) | (6,521 | ) | (6,235 | ) | (4,619 | ) | (3,847 | ) | |||||||||
Earnings | $ | 451,206 | $ | 457,773 | $ | 414,019 | $ | 405,123 | $ | 191,392 | |||||||||
Interest expense | $ | 165,775 | $ | 183,409 | $ | 194,326 | $ | 178,462 | $ | 108,193 | |||||||||
Capitalized interest | 489 | 503 | 329 | 163 | — | ||||||||||||||
1/3 of rental expense - interest factor | 1,977 | 2,319 | 2,336 | 2,064 | 1,986 | ||||||||||||||
Fixed Charges | $ | 168,241 | $ | 186,231 | $ | 196,991 | $ | 180,689 | $ | 110,179 | |||||||||
Ratio of Earnings to Fixed Charges | 2.68 | 2.46 | 2.10 | 2.24 | 1.74 |