Exhibit 12.1
Kansas City Southern
Computation of Ratio of Earnings to Fixed Charges
Dollars in millions
Years Ended December 31, | Three Months Ended March 31, | |||||||||||||||||||||||||||
2013 | 2012 (ii) | 2011 (iii) | 2010 | 2009 | 2014 (iv) | 2013 | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Pretax income from continuing operations, excluding equity in earnings of unconsolidated affiliates (i) | $ | 532.8 | $ | 597.1 | $ | 436.8 | $ | 269.5 | $ | 94.5 | $ | 137.3 | $ | 153.0 | ||||||||||||||
Interest expense | 80.6 | 100.4 | 129.1 | 158.1 | 173.7 | 18.7 | 23.7 | |||||||||||||||||||||
Portion of rents representative of an appropriate interest factor | 35.5 | 36.2 | 40.2 | 42.3 | 46.3 | 7.1 | 9.0 | |||||||||||||||||||||
Distributed income of equity investments | 12.5 | 19.8 | 18.1 | 19.5 | 7.3 | 8.0 | — | |||||||||||||||||||||
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Pretax income as adjusted | $ | 661.4 | $ | 753.5 | $ | 624.2 | $ | 489.4 | $ | 321.8 | $ | 171.1 | $ | 185.7 | ||||||||||||||
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Fixed Charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 80.6 | $ | 100.4 | $ | 129.1 | $ | 158.1 | $ | 173.7 | $ | 18.7 | $ | 23.7 | ||||||||||||||
Capitalized interest | 1.1 | 0.9 | 1.0 | 1.3 | 2.8 | 0.2 | 0.3 | |||||||||||||||||||||
Portion of rents representative of an appropriate interest factor | 35.5 | 36.2 | 40.2 | 42.3 | 46.3 | 7.1 | 9.0 | |||||||||||||||||||||
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Total fixed charges | $ | 117.2 | $ | 137.5 | $ | 170.3 | $ | 201.7 | $ | 222.8 | $ | 26.0 | $ | 33.0 | ||||||||||||||
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Ratio of earnings to fixed charges | 5.6 | 5.5 | 3.7 | 2.4 | 1.4 | 6.6 | 5.6 | |||||||||||||||||||||
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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 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. |
(iii) | During 2011, the Company recognized a pre-tax gain of $25.6 million within operating expenses for insurance recoveries related to hurricane damage. |
(iv) | During the three months ended March 31, 2014, the Company recognized pre-tax lease termination costs of $29.9 million and pre-tax debt retirement costs of $6.6 million. |