Exhibit 12.1
CABOT CORPORATION AND CONSOLIDATED SUBSIDIARIES
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in millions, except ratios)
| Nine months ended | Fiscal year ended September 30 | |||||||||||||||||||||||
| June 30, 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Pre-tax income (loss) from continuing operations1 | $128 | $(377) | $ | 308 | $ | 210 | $ | 246 | $ | 203 | ||||||||||||||
Distributed income of affiliated companies | 8 | 14 | 25 | 8 | 6 | 4 | ||||||||||||||||||
Add fixed charges: | ||||||||||||||||||||||||
Interest on indebtedness | 40 | 53 | 55 | 62 | 46 | 39 | ||||||||||||||||||
Portion of rents representative of the interest factor | 7 | 10 | 9 | 8 | 5 | 7 | ||||||||||||||||||
Preferred stock dividend | — | — | — | — | — | — | ||||||||||||||||||
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Income (loss) as adjusted | $183 | $(300) | $ | 397 | $ | 288 | $ | 303 | $ | 253 | ||||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest on indebtedness | $ 40 | $ 53 | $ | 55 | $ | 62 | $ | 46 | $ | 39 | ||||||||||||||
Capitalized interest | 0 | 0 | 3 | 5 | 4 | 2 | ||||||||||||||||||
Portion of rents representative of the interest factor | 7 | 10 | 9 | 8 | 5 | 7 | ||||||||||||||||||
Preferred stock dividend | — | — | — | — | — | — | ||||||||||||||||||
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Total fixed charges | $ 47 | $ 63 | $ | 67 | $ | 75 | $ | 55 | $ | 48 | ||||||||||||||
Ratio of earnings to fixed charges | 3.9x | N/A | 2 | 5.9x | 3.8x | 5.5x | 5.3x | |||||||||||||||||
| (1) | Pre-tax income (loss) from continuing operations for all periods includes “certain items”, which for the nine months ended June 30, 2016 totalled a charge of $63 million. |
| (2) | The negative earnings to fixed charges ratio for the fiscal year ended September 30, 2015 was driven primarily by a pre-tax impairment charge of $562 million. The total dollar amount of the fixed charge coverage deficiency was $363 million. |
