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, | |||||||||||||||||||||||||||
| 2010 | 2009(i) | 2008(i) | 2007(i) | 2006(i) | 2011 | 2010 | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Pretax income from continuing operations, excluding equity in earnings of unconsolidated affiliates | $ | 269.5 | $ | 94.5 | $ | 227.9 | $ | 206.2 | $ | 144.7 | $ | 344.7 | $ | 186.7 | ||||||||||||||
Interest expense | 158.1 | 173.7 | 138.9 | 156.7 | 167.2 | 97.7 | 122.5 | |||||||||||||||||||||
Portion of rents representative of an appropriate interest factor | 42.3 | 46.3 | 45.7 | 43.1 | 45.6 | 30.8 | 30.7 | |||||||||||||||||||||
Distributed income of equity investments | 19.5 | 7.3 | 18.9 | 4.0 | 4.5 | 9.1 | 15.5 | |||||||||||||||||||||
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Pretax income as adjusted | $ | 489.4 | $ | 321.8 | $ | 431.4 | $ | 410.0 | $ | 362.0 | $ | 482.3 | $ | 355.4 | ||||||||||||||
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Fixed Charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 158.1 | $ | 173.7 | $ | 138.9 | $ | 156.7 | $ | 167.2 | $ | 97.7 | $ | 122.5 | ||||||||||||||
Capitalized interest | 1.3 | 2.8 | 4.4 | — | — | 0.6 | 0.9 | |||||||||||||||||||||
Portion of rents representative of an appropriate interest factor | 42.3 | 46.3 | 45.7 | 43.1 | 45.6 | 30.8 | 30.7 | |||||||||||||||||||||
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Fixed charges before preferred stock dividends | 201.7 | 222.8 | 189.0 | 199.8 | 212.8 | 129.1 | 154.1 | |||||||||||||||||||||
Preferred stock dividends | 17.7 | 16.5 | 20.5 | 28.4 | 27.6 | 2.3 | 13.4 | |||||||||||||||||||||
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Total fixed charges | $ | 219.4 | $ | 239.3 | $ | 209.5 | $ | 228.2 | $ | 240.4 | $ | 131.4 | $ | 167.5 | ||||||||||||||
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Ratio of earnings to fixed charges and preferred stock dividends | 2.2 | 1.3 | 2.1 | 1.8 | 1.5 | 3.7 | 2.1 | |||||||||||||||||||||
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Ratio of earnings to fixed charges | 2.4 | 1.4 | 2.3 | 2.1 | 1.7 | 3.7 | 2.3 | |||||||||||||||||||||
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Note: Excludes amortization of capitalized interest due to immateriality.
| (i) | During the first quarter of 2010, the Company elected to change its accounting policy for railgrinding costs from a capitalization method to a direct expense method. All prior periods have been adjusted to reflect the retroactive application of this change in accounting principle. |
