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EXHIBIT 12.1
STEEL DYNAMICS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
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| | Years Ended December 31, | | Nine Months Ended
September 30, | |
|---|
| | 2016(1) | | 2015 | | 2014(3) | | 2013 | | 2012 | | 2017 | | 2016 | |
|---|
Interest expense, including amortization of debt issuance costs | | $ | 146,037 | | $ | 153,950 | | $ | 137,263 | | $ | 127,728 | | | 158,585 | | $ | 102,020 | | $ | 109,888 | |
Capitalized interest | | | 2,497 | | | 457 | | | 2,471 | | | 4,592 | | | 1,394 | | | 1,311 | | | 1,626 | |
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Fixed charges (a) | | | 148,534 | | | 154,407 | | | 139,734 | | | 132,320 | | | 159,979 | | | 103,331 | | | 111,514 | |
Income before taxes and before adjustment for noncontrolling interests | | |
564,133 | | |
(242,117 |
) | |
164,803 | | |
262,830 | | |
204,066 | | |
773,883 | | |
561,313 | |
Amortization of capitalized interest | | | 6,793 | | | 7,194 | | | 7,194 | | | 6,832 | | | 6,778 | | | 4,639 | | | 5,189 | |
Less capitalized interest | | | (2,497 | ) | | (457 | ) | | (2,471 | ) | | (4,592 | ) | | (1,394 | ) | | (1,311 | ) | | (1,626 | ) |
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Adjusted earnings (losses) (b) | | $ | 716,963 | | $ | (80,973 | ) | $ | 309,260 | | $ | 397,390 | | $ | 369,429 | | $ | 880,542 | | $ | 676,390 | |
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Ratio of earnings (losses) to fixed charges (b) / (a) | | | 4.83x | | | Note(2 | ) | | 2.21x | | | 3.00x | | | 2.31x | | | 8.52x | | | 6.07x | |
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Earnings shortfall (2) | | | | | $ | (235,382 | ) | | | | | | | | | | | | | | | |
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- (1)
- Adjusted earnings in 2016 of $717.0 million include $132.8 million of pretax non-cash asset impairment charges related to our Minnesota ironmaking and Metal Recycling assets. Without the impact of these non-cash asset impairment charges, 2016 adjusted earnings would increase from $717.0 million to $849.8 million, resulting in a ratio of earnings to fixed charges of 5.72x.
- (2)
- Adjusted losses in 2015 are not sufficient to cover fixed charges by $235.4 million. Adjusted losses in 2015 include $428.5 million of pretax non-cash impairment charges related to OmniSource goodwill, trade name, property and plant, and other assets. Without the impact of these non-cash impairment charges, 2015 would reflect adjusted earnings of $347.5 million and a ratio of earnings to fixed charges of 2.20x.
- (3)
- Adjusted earnings in 2014 include $260.0 million of pretax non-cash asset impairment charges related to Minnesota ironmaking operations property, plant, and equipment. Without the impact of these non-cash asset impairment charges, 2014 adjusted earnings would be $569.3 million, resulting in a ratio of earnings to fixed charges of 4.07x.
For purposes of calculating our ratio of earnings to fixed charges, earnings consist of earnings from continuing operations before income taxes, extraordinary items and before adjustment for noncontrolling interests, adjusted for the portion of fixed charges deducted from the earnings, plus amortization of capitalized interest. Fixed charges consist of interest on all indebtedness, including capitalized interest, and amortization of debt issuances costs.
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STEEL DYNAMICS, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN THOUSANDS)
