EX-12 2 hsc-ex12_20121231x10k.htm EX-12 HSC-EX12_2012.12.31-10K


Exhibit 12

HARSCO CORPORATION
Computation of Ratios of Earnings to Fixed Charges



 
YEARS ENDED DECEMBER 31
(In thousands)
2012

2011

2010

2009

2008
Pre-tax income from continuing operations attributable to Harsco shareholders (a)
$
(218,442
)
(b)
$
40,401

 
$
15,161

 
$
152,347

 
$
337,443

Add: Consolidated Fixed Charges computed below
80,073

 
86,608

 
97,334

 
95,180

 
120,709

Net adjustments for unconsolidated entities
(256
)
 
(464
)
 
(214
)
 
(94
)
 
(417
)
Net adjustments for capitalized interest
128

 
165

 
125

 
(572
)
 
(277
)
Consolidated Earnings Available for Fixed Charges (c)
$
(138,497
)
(b)
$
126,710

 
$
112,406

 
$
246,861

 
$
457,458

 
 
 
 
 
 
 
 
 
 
Consolidated Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense per financial statements (d)
$
47,381

 
$
48,735

 
$
60,623

 
$
62,746

 
$
73,160

Interest expense capitalized
476

 
250

 
254

 
947

 
552

Portion of rentals (1/3) representing a reasonable approximation of the interest factor
32,216

 
37,623

 
36,457

 
31,487

 
46,997

Consolidated Fixed Charges
$
80,073

 
$
86,608

 
$
97,334

 
$
95,180

 
$
120,709

 
 
 
 
 
 
 
 
 
 
Consolidated Ratio of Earnings to Fixed Charges
(1.73
)
(b)
1.46

 
1.15

 
2.59

 
3.79


(a)
On January 1, 2009, the Company adopted changes issued by the Financial Accounting Standards Board related to consolidation accounting and reporting. These changes, among others, require that minority interests be renamed noncontrolling interests and that a company present a consolidated net income measure that includes the amount attributable to such noncontrolling interests for all periods presented.  For the computation above, income attributable to noncontrolling interests have been excluded from pre-tax income.
(b)
In the fourth quarter of 2012, the Company incurred a $265.0 million, pre-tax goodwill impairment charge, or $3.29 per basic and diluted share. Please refer to Note 6, Goodwill and Other Intangible Assets to the Company's consolidated financial statements, under Part II, Item 8, "Financial Statements and Supplementary Data."
(c)
Does not include interest related to uncertain tax position obligations.
(d)
Includes amortization of debt discount.