EX-12.1 2 hii-ex121q22013.htm RATIO OF EARNINGS TO FIXED CHARGES HII-EX12.1 Q2 2013


Exhibit 12.1

RATIO OF EARNINGS TO FIXED CHARGES


 
 
Six Months
Ended June 30
 
Year Ended December 31
($ in millions)
 
2013
  
2012
 
2011(2)
 
2010
 
2009
 
2008(1)
Earnings:
 
 
  
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes
 
$
152

  
$
241

 
$
(4
)
 
$
199

 
$
168

 
$
(2,372
)
Amortization of Capitalized Interest
 
1

  
2

 
3

 
4

 
3

 
3

Interest Capitalized
 
—

  
(2
)
 
(2
)
 
(3
)
 
(8
)
 
(4
)
Net adjustment for earnings from affiliates
 
1

 
2

 
—

 
—

 
—

 
—

Fixed Charges:
 
 
  
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized, including amortization of debt issuance
 
59

  
119

 
106

 
43

 
44

 
44

Portion of rental expenses on operating leases deemed to be representative of the interest factor (3)
 
7

 
15

 
15

 
15

 
16

 
14

Total Earnings
 
$
220

  
$
377

 
$
118

 
$
258

 
$
223

 
$
(2,315
)
Fixed Charges:
 
$
66

  
$
134

 
$
121

 
$
58

 
$
60

 
$
58

Ratio of earnings to fixed charges
 
3.3

  
2.8

 
1.0

 
4.4

 
3.7

 
—


(1) For the year ended December 31, 2008, the company’s earnings were insufficient to cover fixed charges by $2,373 million.
(2) For the year ended December 31, 2011, the company recorded a non-cash goodwill impairment charge of $290 million.
(3) The proportion of rental expense deemed to be representative of the interest factor is one third.