EX-12.1 8 a12-13979_1ex12d1.htm EX-12.1

Exhibit 12.1

 

Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends

 

 

 

Six Months Ended June 30

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

Pretax income (loss) excluding income or loss from equity investments

 

$

(709,680

)

$

66,421

 

Adjustments:

 

 

 

 

 

Fixed charges

 

165,641

 

131,944

 

Distributed income from equity investments

 

1,801

 

12,330

 

Capitalized interest, net of amortization

 

(4,764

)

1,849

 

Arch Western Resources, LLC dividends on preferred membership interest

 

(3

)

57

 

Total earnings (losses)

 

$

(547,005

)

$

212,487

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

Interest expense

 

$

153,500

 

$

76,829

 

Capitalized interest

 

6,528

 

211

 

Bridge Financing Costs related to ICG

 

—

 

49,490

 

Arch Western Resources, LLC dividends on preferred membership interest

 

(3

)

57

 

Portions of rent which represent an interest factor

 

5,617

 

5,357

 

Total fixed charges

 

$

165,641

 

$

131,944

 

Total fixed charges and preferred stock dividends

 

$

165,641

 

$

131,944

 

 

 

 

 

 

 

Ratio of earnings to combined fixed charges and preference dividends

 

 

 

1.61

x

 

Earnings consist of income from operations before income taxes and are adjusted to include only distributed income from affiliates accounted for on the equity method and fixed charges (excluding capitalized interest).  Fixed charges consist of interest incurred on indebtedness, the portion of operating lease rentals deemed representative of the interest factor and the amortization of debt expense.