EX-12 4 cf-12312017xex12.htm EXHIBIT 12 Exhibit


Exhibit 12
CF INDUSTRIES HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
 
 
Year ended December 31,
 
(Dollars in millions)
 
2017
 
2016
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Pretax (loss) earnings from continuing operations
 
$
(125
)
 
$
(226
)
 
$
1,058

 
$
2,187

 
$
2,210

 
Plus:
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
459

 
497

 
343

 
312

 
264

 
Distributed income of equity investees
 
27

 
14

 
48

 
79

 
59

 
Amortization of capitalized interest
 
28

 
9

 
2

 
1

 
4

 
Less:
 
 
 
 
 
 
 
 
 
 
 
Preference security dividends of CF Industries Nitrogen, LLC
 
(107
)
 
(79
)
 
—

 
—

 
—

 
Preference security dividends of Terra Nitrogen Company, L.P.
 
(24
)
 
(40
)
 
(45
)
 
(46
)
 
(66
)
 
Capitalized interest
 
(2
)
 
(166
)
 
(154
)
 
(74
)
 
(27
)
 
Earnings for fixed charge coverage ratio
 
$
256

 
$
9

 
$
1,252

 
$
2,459

 
$
2,444

 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
 
 
 
 
 
 
 
 
 
 
Interest expensed (a)
 
$
315

 
$
200

 
$
133

 
$
178

 
$
152

 
Capitalized interest
 
2

 
166

 
154

 
74

 
27

 
Estimated interest in rent expense (b)
 
11

 
12

 
11

 
14

 
19

 
Preference security dividends of CF Industries Nitrogen, LLC
 
107

 
79

 
—

 
—

 
—

 
Preference security dividends of Terra Nitrogen Company, L.P.
 
24

 
40

 
45

 
46

 
66

 
 
 
$
459

 
$
497

 
$
343

 
$
312

 
$
264

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
0.56

x
0.02

x
3.6

x
7.9

x
9.3

x
(a) Including amortized premiums, discounts, and capitalized expenses related to indebtedness.
(b) Assumes that the interest component is 9% of total rent expense in 2017, 11% in 2016, 11% in 2015, 15% in 2014 and 19% in 2013.