KANSAS CITY SOUTHERN INDUSTRIES, INC.
AND SUBSIDIARY COMPANIES
COMPUTATION OF EARNINGS TO FIXED CHARGES
(Dollars in Millions)
Years ended December 31,
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1998 1997 1996 1995 1994
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Earnings:
Pretax Income, Excluding Equity
in Earnings (Losses) of
Unconsolidated Affiliates $ 331.5 $ 64.0 $ 167.2 $ 484.5 $ 148.9
Interest Expense on Indebtedness 66.1 63.7 59.6 77.0 53.6
Portion of Rents Representative
of an Appropriate Interest Factor 23.5 21.3 13.9 17.2 17.7
Equity in Undistributed Earnings
of 50% Owned Affiliates (2.3) 2.8 0.8 5.7 15.6
Distributed Earnings of Less
Than 50% Owned Affiliates - - 3.7 0.9 0.1
Fixed Charges of 50% Owned
Affiliates 6.0 6.0 1.3 1.3 0.9
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Income, as Adjusted $ 424.8 $ 157.8 $ 246.5 $ 586.6 $ 236.8
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Fixed Charges:
Interest Expense on Indebtedness $ 66.1 $ 63.7 $ 59.6 $ 77.0 $ 53.6
Capitalized Interest - 7.4 - - -
Portion of Rents Representative
of an Appropriate Interest Factor 23.5 21.3 13.9 17.2 17.7
Fixed Charges of 50% Owned
Affiliates 6.0 6.0 1.3 1.3 0.9
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Total Fixed Charges $ 95.6 $ 98.4 $ 74.8 $ 95.5 $ 72.2
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Ratio of Earnings to Fixed
Charges 4.44 (i) 1.60 (ii) 3.30 6.14 (iii) 3.28
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(i) Includes one-time non-cash charge resulting from the merger of a
wholly-owned subsidiary of DST Systems, Inc. (DST) with USCS
International, Inc. Excluding this one-time item, the ratio for 1998 is
4.75.
(ii) Includes one-time restructuring, asset impairment and other charges.
Excluding these one-time items, the ratio for 1997 is 3.60.
(iii) Reflects DST as a majority owned unconsolidated subsidiary through
October 31, 1995, and an unconsolidated 41% owned affiliate thereafter.
If the ratio was computed to exclude the one-time gain associated with the
November 1995 public offering of DST and associated transactions, the 1995
ratio for 1995 would have been 3.04.
Note: Exclude amortization expense on intangible debt discount
due to immateriality.