Exhibit 12
CF INDUSTRIES HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
Year ended December 31, | |||||||||||||||||||||
(Dollars in millions) | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Pretax (loss) earnings from continuing operations | $ | (125 | ) | $ | (226 | ) | $ | 1,058 | $ | 2,187 | $ | 2,210 | |||||||||
Plus: | |||||||||||||||||||||
Fixed charges | 459 | 497 | 343 | 312 | 264 | ||||||||||||||||
Distributed income of equity investees | 27 | 14 | 48 | 79 | 59 | ||||||||||||||||
Amortization of capitalized interest | 28 | 9 | 2 | 1 | 4 | ||||||||||||||||
Less: | |||||||||||||||||||||
Preference security dividends of CF Industries Nitrogen, LLC | (107 | ) | (79 | ) | — | — | — | ||||||||||||||
Preference security dividends of Terra Nitrogen Company, L.P. | (24 | ) | (40 | ) | (45 | ) | (46 | ) | (66 | ) | |||||||||||
Capitalized interest | (2 | ) | (166 | ) | (154 | ) | (74 | ) | (27 | ) | |||||||||||
Earnings for fixed charge coverage ratio | $ | 256 | $ | 9 | $ | 1,252 | $ | 2,459 | $ | 2,444 | |||||||||||
Fixed charges | |||||||||||||||||||||
Interest expensed (a) | $ | 315 | $ | 200 | $ | 133 | $ | 178 | $ | 152 | |||||||||||
Capitalized interest | 2 | 166 | 154 | 74 | 27 | ||||||||||||||||
Estimated interest in rent expense (b) | 11 | 12 | 11 | 14 | 19 | ||||||||||||||||
Preference security dividends of CF Industries Nitrogen, LLC | 107 | 79 | — | — | — | ||||||||||||||||
Preference security dividends of Terra Nitrogen Company, L.P. | 24 | 40 | 45 | 46 | 66 | ||||||||||||||||
$ | 459 | $ | 497 | $ | 343 | $ | 312 | $ | 264 | ||||||||||||
Ratio of earnings to fixed charges | 0.56 | x | 0.02 | x | 3.6 | x | 7.9 | x | 9.3 | x |
(a) Including amortized premiums, discounts, and capitalized expenses related to indebtedness.
(b) Assumes that the interest component is 9% of total rent expense in 2017, 11% in 2016, 11% in 2015, 15% in 2014 and 19% in 2013.