EX-12.1 3 d910186dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in thousands)

 

     For the Year Ended December 31,  
     2014      2013      2012  

Earnings:

         

Income before income taxes

    $ (535,092 )     $ 152,951       $ 27,104   

Fixed charges

      147,550         74,291         32,210   

Amortization of capitalized interest

      1,026         —           —     

Capitalized interest

      (7,297 )       —           —     

Net loss (income) attributable to noncontrolling interest

      (32 )       (267 )       (104 ) 
  

 

 

     

 

 

     

 

 

  

Total earnings

 $ (393,845 )  $ 226,975    $ 59,210   
  

 

 

     

 

 

     

 

 

  

Fixed Charges:

Interest expense

 $ 126,693    $ 62,613    $ 26,773   

Capitalized interest

   7,297      —        —     

Amortization of investment premium

   —        —        194   

Amortization of deferred financing costs

   7,436      8,343      3,584   

Amortization of senior note discount

   2,501      554      —     

Estimate of the interest within rental expense (33.33%)

   3,623      2,781      1,659   
  

 

 

     

 

 

     

 

 

  

Total fixed charges

   147,550      74,291      32,210   
  

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges (1)

   —        2.1x      1.8x   
  

 

 

     

 

 

     

 

 

  

 

(1) Earnings were inadequate to cover fixed charges by $541.4 million for the year ended December 31, 2014 primarily related to $831.1 million of compensation expense recognized in connection with our initial public offering and restructuring transactions.

For the purpose of computing the ratio of earnings to fixed charges, the term “earnings” is the amount resulting from adding and subtracting the following items (as applicable). Add the following: (a) pre-tax income from continuing operations before adjustment for income or loss from equity investees; (b) fixed charges; (c) amortization of capitalized interest; (d) distributed income of equity investees; and (e) your share of pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges. From the total of the added items, subtract the following: (a) interest capitalized; (b) preference security dividend requirements of consolidated subsidiaries; and (c) the noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges.

The term “fixed charges” means the sum of the following: (a) interest expensed and capitalized, (b) amortized premiums, discounts and capitalized expenses related to indebtedness, (c) an estimate of the interest within rental expense, and (d) preference security dividend requirements of consolidated subsidiaries.