EX-12.1 3 hii-ex121q22014.htm RATIO OF EARNINGS TO FIXED CHARGES HII-EX12.1 Q2 2014


Exhibit 12.1

RATIO OF EARNINGS TO FIXED CHARGES


 
 
Six Months Ended
June 30
 
Year Ended December 31
($ in millions)
 
2014
  
2013
 
2012
 
2011(1)
 
2010
 
2009
Earnings:
 
 
  
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes
 
$
284

  
$
394

 
$
241

 
$
(4
)
 
$
199

 
$
168

Amortization of Capitalized Interest
 
1

  
2

 
2

 
3

 
4

 
3

Interest Capitalized
 
(1
)
  
—

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

 
2

 
—

 
—

 
—

Fixed Charges:
 
 
  
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized, including amortization of debt issuance
 
57

  
118

 
119

 
106

 
43

 
44

Portion of rental expenses on operating leases deemed to be representative of the interest factor (2)
 
7

 
15

 
15

 
15

 
15

 
16

Total Earnings
 
$
347

  
$
531

 
$
377

 
$
118

 
$
258

 
$
223

Fixed Charges:
 
$
64

  
$
133

 
$
134

 
$
121

 
$
58

 
$
60

Ratio of earnings to fixed charges
 
5.4

  
4.0

 
2.8

 
1.0

 
4.4

 
3.7


(1) For the year ended December 31, 2011, the company recorded a non-cash goodwill impairment charge of $290 million.
(2) The proportion of rental expense deemed to be representative of the interest factor is one third.