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Ratio of Earnings to Fixed Charges
CLEAN HARBORS, INC. AND SUBSIDIARIES
| | For the Three Months Ended March 31, | For the Year Ended December 31, | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
Income from operations before income taxes(1) | $ | (4,087 | ) | $ | 7,302 | $ | 109,646 | $ | 38,522 | $ | 143,885 | $ | 127,730 | $ | 184,678 | |||||||
Add (Subtract): | ||||||||||||||||||||||
Capitalized interest | (1,198 | ) | (161 | ) | (1,958 | ) | (1,610 | ) | (929 | ) | (155 | ) | (451 | ) | ||||||||
Amortization of capitalized interest | 341 | 263 | 1,165 | 942 | 783 | 715 | 678 | |||||||||||||||
Fixed charges (see calculation below) | 22,303 | 21,907 | 87,654 | 89,982 | 88,570 | 54,976 | 46,260 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Income from operations before income taxes as adjusted | $ | 17,359 | $ | 29,311 | $ | 196,507 | $ | 127,836 | $ | 232,309 | $ | 183,267 | $ | 231,165 | ||||||||
Fixed charges: | ||||||||||||||||||||||
Interest expense, net | $ | 18,980 | $ | 19,438 | $ | 76,553 | $ | 77,668 | $ | 78,376 | $ | 47,287 | $ | 39,389 | ||||||||
Interest income | 150 | 151 | 626 | 819 | 507 | 846 | 798 | |||||||||||||||
Capitalized interest | 1,198 | 161 | 1,958 | 1,610 | 929 | 155 | 451 | |||||||||||||||
Amortization of capitalized interest | (341 | ) | (263 | ) | (1,165 | ) | (942 | ) | (783 | ) | (715 | ) | (678 | ) | ||||||||
Preferred stock dividend | — | — | — | — | — | — | — | |||||||||||||||
Portion of operating lease rental expenses deemed to be representative of the interest factor | 2,317 | 2,421 | 9,682 | 110,827 | 9,541 | 7,404 | 6,300 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
Fixed charges | $ | 22,303 | $ | 21,907 | $ | 87,654 | $ | 89,982 | $ | 88,570 | $ | 54,977 | $ | 46,260 | ||||||||
Ratio of earnings to fixed charges | 0.8x | 1.3x | 2.2x | 1.4x | 2.6x | 3.3x | 5.0x | |||||||||||||||
- (1)
- Our 2015 income from operations before income tax was reduced by a $32.0 million goodwill impairment charge in our Oil and Gas Field Services reporting unit, and our 2014 income from operations before income tax was reduced by a $123.4 million goodwill impairment charge in our Kleen Performance Products reporting unit. See Note 6, "Goodwill and Other Intangible Assets," to our consolidated financial statements incorporated by reference in the prospectus included in this registration statement for additional information regarding those goodwill impairment charges. Our 2012 income from operations before income tax was reduced by a $26.4 million loss on early extinguishment of debt in connection with a redemption and repurchase of our $520.0 million previously outstanding 75/8% senior secured notes.
Ratio of Earnings to Fixed Charges CLEAN HARBORS, INC. AND SUBSIDIARIES