Exhibit 12.1
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
Years Ended December 31, | ||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||
($ in millions) | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before taxes(1) | $ | 6.7 | $ | 162.7 | $ | 250.0 | $ | 225.2 | $ | 379.4 | ||||||||||
Add (deduct): | ||||||||||||||||||||
Earnings of non-consolidated affiliates | (1.7 | ) | (1.7 | ) | (2.8 | ) | (3.0 | ) | (9.6 | ) | ||||||||||
Distributions from affiliated companies | — | — | 1.5 | 1.3 | 1.4 | |||||||||||||||
Amortization of capitalized interest | 2.2 | 2.2 | 2.1 | 1.6 | 1.4 | |||||||||||||||
Capitalized interest | (1.1 | ) | (0.2 | ) | (1.1 | ) | (7.4 | ) | (1.2 | ) | ||||||||||
Fixed charges as described below | 123.1 | 67.5 | 62.0 | 54.0 | 49.5 | |||||||||||||||
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Total | $ | 129.2 | $ | 230.5 | $ | 311.7 | $ | 271.7 | $ | 420.9 | ||||||||||
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Fixed charges: | ||||||||||||||||||||
Interest expensed and capitalized | $ | 98.1 | $ | 44.0 | $ | 39.7 | $ | 33.8 | $ | 31.6 | ||||||||||
Estimated interest factor in rent expense(2) | 25.0 | 23.5 | 22.3 | 20.2 | 17.9 | |||||||||||||||
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Total | $ | 123.1 | $ | 67.5 | $ | 62.0 | $ | 54.0 | $ | 49.5 | ||||||||||
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Ratio of earnings to fixed charges | 1.0 | 3.4 | 5.0 | 5.0 | 8.5 | |||||||||||||||
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(1) | The income from continuing operations before taxes for the year ended December 31, 2011 included a pretax gain of $181.4 million as a result of remeasuring our previously held 50% equity interest in SunBelt. |
(2) | Amounts represent those portions of rent expense that are reasonable approximations of interest costs. |
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
($ in millions) | ||||||||
Earnings: | ||||||||
Income (loss) before taxes(1) | $ | (55.4 | ) | $ | 19.6 | |||
Add (deduct): | ||||||||
Earnings of non-consolidated affiliates | (0.2 | ) | (0.4 | ) | ||||
Amortization of capitalized interest | 0.5 | 0.5 | ||||||
Capitalized interest | (0.6 | ) | (0.1 | ) | ||||
Fixed charges as described below | 57.5 | 12.9 | ||||||
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Total | $ | 1.8 | $ | 32.5 | ||||
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Fixed charges: | ||||||||
Interest expensed and capitalized | $ | 49.1 | $ | 7.2 | ||||
Estimated interest factor in rent expense(2) | 8.4 | 5.7 | ||||||
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Total | $ | 57.5 | $ | 12.9 | ||||
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Ratio of earnings to fixed charges(3) | — | 2.5 | ||||||
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(1) | For the three months ended March 31, 2016, income (loss) before taxes included $76.6 million of non-cash asset impairment restructuring charges associated with permanently closing the Henderson, NV chlor alkali plant and reconfiguring the facility to manufacture bleach and distribute caustic soda and hydrochloric acid. |
(2) | Amounts represent those portions of rent expense that are reasonable approximations of interest costs. |
(3) | The ratio coverage during the three months ended March 31, 2016 was less than 1:1. We would have needed to generate additional earnings of $55.7 million to achieve a coverage of 1:1 during the three months ended March 31, 2016. |