Exhibit 12.1
CHS Inc.
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
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| Nine Months |
| Years Ended August 31, |
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(Dollars in thousands) |
| 2014 |
| 2013 |
| 2012 |
| 2011 |
| 2010 |
| 2009 |
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EARNINGS: |
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Income from continuing operations before income taxes |
| $ | 999,590 |
| $ | 1,085,994 |
| $ | 1,416,571 |
| $ | 1,147,656 |
| $ | 583,835 |
| $ | 503,678 |
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ADD: |
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Fixed charges, as shown below |
| 84,849 |
| 136,206 |
| 131,641 |
| 116,885 |
| 95,462 |
| 110,748 |
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Amortization of capitalized interest |
| 2,731 |
| 3,547 |
| 3,305 |
| 3,604 |
| 3,654 |
| 3,640 |
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Distributions from equity investments |
| 62,019 |
| 62,761 |
| 75,468 |
| 137,766 |
| 89,689 |
| 80,403 |
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Investments redeemed - equity investees, cooperatives and other |
| 130,445 |
| 13,021 |
| 10,409 |
| 8,980 |
| 14,188 |
| 39,787 |
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SUBTRACT: |
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Equity in income of investees |
| (89,249 | ) | (97,350 | ) | (102,389 | ) | (131,414 | ) | (108,787 | ) | (105,754 | ) | ||||||
Noncash patronage dividends received |
| (5,058 | ) | (16,644 | ) | (10,461 | ) | (9,697 | ) | (9,918 | ) | (9,717 | ) | ||||||
Interest capitalized |
| (6,503 | ) | (10,579 | ) | (8,881 | ) | (5,487 | ) | (6,212 | ) | (5,201 | ) | ||||||
EARNINGS AS ADJUSTED |
| $ | 1,178,824 |
| $ | 1,176,956 |
| $ | 1,515,663 |
| $ | 1,268,293 |
| $ | 661,911 |
| $ | 617,584 |
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FIXED CHARGES: |
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Interest * |
| $ | 57,823 |
| $ | 99,271 |
| $ | 94,089 |
| $ | 83,045 |
| $ | 69,902 |
| $ | 85,668 |
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Amortization of debt costs |
| 5,047 |
| 9,770 |
| 12,692 |
| 11,762 |
| 4,132 |
| 4,668 |
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Appropriate portion (1/3) of rent expense ** |
| 21,978 |
| 27,165 |
| 24,859 |
| 22,078 |
| 21,429 |
| 20,413 |
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TOTAL FIXED CHARGES |
| 84,849 |
| 136,206 |
| 131,641 |
| 116,885 |
| 95,462 |
| 110,748 |
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PREFERRED DIVIDEND FACTOR: |
| 32,563 |
| 26,766 |
| 26,028 |
| 26,534 |
| 25,823 |
| 24,059 |
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COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS |
| $ | 117,412 |
| $ | 162,972 |
| $ | 157,669 |
| $ | 143,419 |
| $ | 121,285 |
| $ | 134,807 |
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RATIO |
| 10.0 |
| 7.2 |
| 9.6 |
| 8.8 |
| 5.5 |
| 4.6 |
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* Interest costs of $56.3 million, $149.1 million and $113.2 million for the nine months ended May 31, 2014 and the years ended August 31, 2013 and 2012, respectively, associated with our commitment to purchase the NCRA noncontrolling interests, were excluded from interest expense for purposes of computing the ratio of earnings to fixed charges and preferred dividends.
** 1/3 of rent expense is a reasonable approximation of the interest factor.
