Exhibit 12.1
KANSAS CITY SOUTHERN INDUSTRIES, INC.
AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES -
(Dollars in Millions)
Years Ended December 31, Years to date September 30,
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1995 1996 1997 1998 1999 1999 2000
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Pretax Income (Loss), excluding equity in
earnings of unconsolidated affilites $ 30.1 $ 27.2 $ (141.0) $ 68.0 $ 12.0 $ 18.6 $ 1.5
Interest Expense on Indebtedness 51.9 52.8 53.3 59.6 57.4 43.3 54.2
Portion of Rents Representative
of an Appropriate Interest Factor 15.0 11.1 17.2 17.8 17.2 12.9 14.8
Equity in Undistributed Earnings of
50% Owned Affiliates 0.2 0.7 2.3 (2.8) 3.6 3.2 1.3
Distributed Earnings of Less Than 50%
Owned Affiliates - - - - - - -
Fixed Charges of 50% Owned Affiliates 1.3 1.3 6.0 6.0 5.1 3.9 5.8
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Income (Loss) as Adjusted $ 98.5 $ 93.1 ($62.2) $ 148.6 $ 95.3 $ 81.9 $ 77.6
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Fixed Charges:
Interest Expense on Indebtedness $ 51.9 $ 52.8 $ 53.3 $ 59.6 $ 57.4 $ 43.3 $ 54.2
Capitalized Interest - - 7.4 - - - -
Portion of Rents Representative
of an Appropriate Interest Factor 15.0 11.1 17.2 17.8 17.2 12.9 14.8
Fixed Charges of 50% Owned Affiliates 1.3 1.3 6.0 6.0 5.1 3.9 5.8
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Total Fixed Charges $ 68.2 $ 65.2 $ 83.9 $ 83.4 $ 79.7 $ 60.1 $ 74.8
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Ratio of Earnings to Fixed Charges 1.44 1.43 (0.74)(a) 1.78 1.20 (b) 1.36 1.04
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(a) Includes one-time restructuring, asset impairment and other charges.
Excluding these one-time items, the ratio for 1997 is 1.51.
(b) Includes unusual costs and expenses of $12.7 million ($7.9 million after-
tax) recorded by the Transportation segment, reflecting among others,
amounts for facility and project closures, employee separations, spin-off
related costs, labor and personal injury related issues. Excluding these
one-time items, the ratio for 1999 is 1.36.
Note: Exclude amortization expense on intangible debt discount and capitalized
interest due to immateriality
Kansas City Southern Industries, Inc.
Supporting Computations for 10-K Ratio of Earnings to Fixed Charges
Years Ended December 31,
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1995 1996 1997 1998 1999 1999 2000
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Equity in Undistributed Income of
Less Than 50% Owned Affiliates:
(in thousands)
Other
Mexrail, Inc. 764 908 (1,975) 724 1,505
Grupo TFM (12,947) (3,232) 1,519 16,957
Allied Railcar - SCC
Less: Dividend
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Total Undistributed Earnings 0 764 (12,039) (5,207) 2,243 0 18,462
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Rounded to millions 0.0 0.8 (12.0) (5.2) 2.2 0.0 18.5
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Total Distributed Earnings $ - $ - $ - $ - $ - $ - $ -
Rounded $ - $ - $ - $ - $ -
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Equity in Undistributed Income of
50% Owned Affiliates (in thousands)
Other $ - $ - $ - $ - $ - $ - $ -
PABFAC 174 231 168 207 99 95 (92)
Southern Development 50 69 23 13 180 272
Southern Capital - 468 2,097 2,014 3,509 2,930 1,151
Less: Dividends - Southern Capital (5,000) -
Less: Dividends - DST - -
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Total Undistributed Earnings $ 174 $ 749 $ 2,334 $ (2,756) $ 3,621 $ 3,205 $ 1,331
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Rounded to millions $ 0.2 $ 0.7 $ 2.3 $ (2.8) $ 3.6 $ 3.2 $ 1.3
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Portion of Rents Representative
of an Appropriate Interest Factor:
(in millions)
Rental expense 45.1 33.3 51.6 53.5 51.7 38.9 44.4
Interest Factor 33.33% 33.33% 33.33% 33.33% 33.33% 33.33% 33.33%
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Total for calculation 15.0 11.1 17.2 17.8 17.2 12.9 14.8
Fixed Charges of 50% owned affiliates
IDEX - -
PABFAC 94,236 76,144
Southern Development 3,447 3,760
Bank of Ireland - -
Southern Capital 12,245,157 10,180,095
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12,342,840 10,259,999
50% 50%
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6,171,420 5,129,999
5.1