EX-12 2 wpc201610-kexh12.htm EXHIBIT 12 Exhibit


Exhibit 12

COMPUTATION OF RATIOS

For purposes of calculating the ratio of earnings to fixed charges, the term “earnings” is the amount resulting from adding (i) pre-tax income from continuing operations, (ii) fixed charges, (iii) distributed income of equity investments, and (iv) amortization of capitalized interest, reduced by (i) equity in earnings of equity method investments and (ii) pre-tax income from continuing operations attributable to noncontrolling interests that have not incurred fixed charges. “Fixed charges” consist of (i) interest expensed and capitalized, (ii) amortized premiums, discounts, and capitalized expenses related to indebtedness, and (iii) an estimate of the interest within rental expense.

The following table sets forth information regarding our ratio of earnings to fixed charges for the periods shown.

(Dollars in thousands)

 
Years Ended December 31,
 
2016
 
2015
 
2014
 
2013
 
2012
Income from continuing operations before income taxes
$
278,095

 
$
222,848

 
$
230,360

 
$
95,237

 
$
94,286

Fixed charges
186,231

 
196,991

 
180,689

 
110,179

 
52,193

Less: Equity in earnings of equity method investments
(64,719
)
 
(51,020
)
 
(44,116
)
 
(52,731
)
 
(62,392
)
Distributed income of equity investments
64,650

 
51,435

 
42,809

 
42,554

 
45,121

Amortization of capitalized interest
37

 
—

 
—

 
—

 
—

Net income attributable to noncontrolling interests that have not incurred fixed charges
(6,521
)
 
(6,235
)
 
(4,619
)
 
(3,847
)
 
(1,319
)
Earnings
$
457,773

 
$
414,019

 
$
405,123

 
$
191,392

 
$
127,889

 
 
 
 
 
 
 
 
 
 
Interest expense
$
183,409

 
$
194,326

 
$
178,462

 
$
108,193

 
$
50,709

Capitalized interest
503

 
329

 
163

 
—

 
—

1/3 of rental expense - interest factor
2,319

 
2,336

 
2,064

 
1,986

 
1,484

Fixed Charges
$
186,231

 
$
196,991

 
$
180,689

 
$
110,179

 
$
52,193

 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
2.46

 
2.10

 
2.24

 
1.74

 
2.45