Exhibit 12.1
CHS INC.
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
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| Three Months |
| Years Ended August 31, |
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(Dollars in thousands) |
| 2016 |
| 2016 |
| 2015 |
| 2014 |
| 2013 |
| 2012 |
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EARNINGS: |
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Income from continuing operations before income taxes |
| $ | 225,554 |
| $ | 419,878 |
| $ | 768,168 |
| $ | 1,131,303 |
| $ | 1,085,994 |
| $ | 1,416,571 |
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ADD: |
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Fixed charges, as shown below |
| 47,954 |
| 176,078 |
| 119,266 |
| 107,737 |
| 128,039 |
| 125,589 |
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Amortization of capitalized interest |
| 1,490 |
| 4,806 |
| 4,696 |
| 3,663 |
| 3,547 |
| 3,304 |
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Distributions from equity investments |
| 16,393 |
| 178,464 |
| 80,917 |
| 79,685 |
| 62,761 |
| 75,468 |
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Investments redeemed - equity investees, cooperatives and other |
| 148 |
| 33,821 |
| 19,927 |
| 138,485 |
| 13,021 |
| 10,409 |
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SUBTRACT: |
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Equity in income of investees |
| (40,328 | ) | (175,777 | ) | (107,850 | ) | (107,446 | ) | (97,350 | ) | (102,389 | ) | ||||||
Noncash patronage dividends received |
| (885 | ) | (7,068 | ) | (13,035 | ) | (16,452 | ) | (16,644 | ) | (10,461 | ) | ||||||
Interest capitalized |
| (1,600 | ) | (30,343 | ) | (57,303 | ) | (8,528 | ) | (10,579 | ) | (8,881 | ) | ||||||
EARNINGS AS ADJUSTED |
| $ | 248,726 |
| $ | 599,859 |
| $ | 814,786 |
| $ | 1,328,447 |
| $ | 1,168,789 |
| $ | 1,509,610 |
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FIXED CHARGES: |
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Interest* |
| $ | 39,900 |
| $ | 144,047 |
| $ | 93,152 |
| $ | 84,925 |
| $ | 104,403 |
| $ | 99,130 |
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Amortization of debt costs |
| 2,554 |
| 7,131 |
| 7,214 |
| 7,012 |
| 9,770 |
| 12,692 |
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Appropriate portion (1/3) of rent expense** |
| 5,500 |
| 24,900 |
| 18,900 |
| 15,800 |
| 13,866 |
| 13,767 |
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TOTAL FIXED CHARGES |
| 47,954 |
| 176,078 |
| 119,266 |
| 107,737 |
| 128,039 |
| 125,589 |
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PREFERRED DIVIDEND FACTOR: |
| 45,167 |
| 162,581 |
| 143,428 |
| 67,239 |
| 26,766 |
| 26,028 |
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COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS |
| $ | 93,121 |
| $ | 338,659 |
| $ | 262,694 |
| $ | 174,976 |
| $ | 154,805 |
| $ | 151,617 |
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RATIO |
| 2.7 |
| 1.8 |
| 3.1 |
| 7.6 |
| 7.6 |
| 10.0 |
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* | Interest costs of $34.8 million, $70.8 million, $149.1 million and $113.2 million for the years ended August 31, 2015, 2014, 2013 and 2012, respectively, associated with our commitment to purchase the National Cooperative Refinery Association (“NCRA), now known as CHS McPherson Refinery Inc., noncontrolling interests were excluded from interest expense for purposes of computing the ratio of earnings to fixed charges and preferred dividends. There were no interest costs incurred associated with our commitment to purchase NCRA during the three months ended November 30, 2016 or the year ended August 31, 2016. |
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** | 1/3 of rent expense is a reasonable approximation of the interest factor. |
