Exhibit 12.1
Kansas City Southern
Computation of Ratio of Earnings to Fixed Charges
(Dollars in Millions)
| Nine Months Ended | ||||||||||||||||||||||||||||
| Years Ended December 31, | September 30, | |||||||||||||||||||||||||||
| 2013 | 2012(iii) | 2011(iv) | 2010 | 2009 | 2014 (v) | 2013 | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Pretax income from continuing operations, excluding equity in earnings of unconsolidated affiliates (i) (ii) | $ | 532.8 | $ | 597.1 | $ | 436.8 | $ | 269.5 | $ | 94.5 | $ | 526.3 | $ | 356.9 | ||||||||||||||
Interest expense | 80.6 | 100.4 | 129.1 | 158.1 | 173.7 | 54.5 | 61.2 | |||||||||||||||||||||
Portion of rents representative of an appropriate interest factor | 35.5 | 36.2 | 40.2 | 42.3 | 46.3 | 19.2 | 26.7 | |||||||||||||||||||||
Distributed income of equity investments | 12.5 | 19.8 | 18.1 | 19.5 | 7.3 | 15.8 | 6.5 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Pretax income as adjusted | $ | 661.4 | $ | 753.5 | $ | 624.2 | $ | 489.4 | $ | 321.8 | $ | 615.8 | $ | 451.3 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 80.6 | $ | 100.4 | $ | 129.1 | $ | 158.1 | $ | 173.7 | $ | 54.5 | $ | 61.2 | ||||||||||||||
Capitalized interest | 1.1 | 0.9 | 1.0 | 1.3 | 2.8 | 0.7 | 0.8 | |||||||||||||||||||||
Portion of rents representative of an appropriate interest factor | 35.5 | 36.2 | 40.2 | 42.3 | 46.3 | 19.2 | 26.7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Fixed charges before preference dividends | $ | 117.2 | $ | 137.5 | $ | 170.3 | $ | 201.7 | $ | 222.8 | $ | 74.4 | $ | 88.7 | ||||||||||||||
Preference security dividend as defined by Item 503(d)(B) of Regulation S-K | 0.3 | 0.3 | 2.2 | 17.7 | 16.5 | 0.3 | 0.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total fixed charges | $ | 117.5 | $ | 137.8 | $ | 172.5 | $ | 219.4 | $ | 239.3 | $ | 74.7 | $ | 89.0 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Ratio of earnings to fixed charges and preference dividends | 5.6 | 5.5 | 3.6 | 2.2 | 1.3 | 8.2 | 5.1 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Ratio of earnings to fixed charges | 5.6 | 5.5 | 3.7 | 2.4 | 1.4 | 8.3 | 5.1 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Note: Excludes amortization of capitalized interest due to immateriality.
| (i) | During 2013, 2012, 2011, 2010 and 2009, the Company recognized pre-tax debt retirement costs of $119.2 million, $20.1 million, $38.7 million, $68.3 million and $5.9 million, respectively, related to debt restructuring activities that occurred during the periods. |
| (ii) | During the nine months ended September 30, 2014 and September 30, 2013, the Company recognized pre-tax debt retirement costs of $6.6 million and $113.8 million, respectively, related to debt restructuring activities that occurred during the periods. |
| (iii) | During 2012, the Company recognized a pre-tax gain of $43.0 million within operating expenses for the elimination of deferred statutory profit sharing liability, net as a result of the organizational restructuring during the period. |
| (iv) | During 2011, the Company recognized a pre-tax gain of $25.6 million within operating expenses for insurance recoveries related to hurricane damage. |
| (v) | During the nine months ended September 30, 2014, the Company recognized pre-tax lease termination costs of $38.3 million, due to the early termination of certain operating leases and the related purchase of equipment. |
