EX-12 2 exhibit12-computationofrat.htm EXHIBIT 12 Exhibit 12 - Computation of Ratio of Earnings to Fixed Charges - Revision


Exhibit 12

HARSCO CORPORATION
Computation of Ratios of Earnings to Fixed Charges



 
YEARS ENDED DECEMBER 31
(In thousands)
2014 (a)
 
2013 (a)
 
2012 (a)
 
2011 (a)
 
2010 (a)
 
Pre-tax income from continuing operations attributable to Harsco shareholders
$
8,085

 
$
(199,381
)
(b)
$
(227,211
)
(c)
$
41,172

 
$
15,276

 
Add: Consolidated Fixed Charges computed below
67,181

 
78,637

 
80,073

 
86,608

 
97,334

 
Net adjustments for unconsolidated entities
1,558

 
(1,511
)
 
(256
)
 
(464
)
 
(214
)
 
Net adjustments for capitalized interest
(46
)
 
53

 
128

 
165

 
125

 
Consolidated Earnings Available for Fixed Charges
$
76,778

 
$
(122,202
)
(b)
$
(147,266
)
(c)
$
127,481

 
$
112,521

 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Fixed Charges:
 
 
 
 
 
 
 
 
 
 
Interest expense per financial statements (d)
$
47,111

 
$
49,654

 
$
47,381

 
$
48,735

 
$
60,623

 
Interest expense capitalized
541

 
577

 
476

 
250

 
254

 
Portion of rentals (1/3) representing a reasonable approximation of the interest factor
19,529

 
28,406

 
32,216

 
37,623

 
36,457

 
Consolidated Fixed Charges
$
67,181

 
$
78,637

 
$
80,073

 
$
86,608

 
$
97,334

 
Consolidated Ratio of Earnings to Fixed Charges
1.14

 

(b)(e)

(c) (f)
1.47

 
1.16

 

(a)
Does not include interest related to uncertain tax position obligations.
(b)
During 2013, the Company recorded a $272.3 million, non-cash pre-tax long-lived asset impairment charge, or $3.17 per basic and diluted share.
(c)
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.
(d)
Includes amortization of debt discount.
(e)
For the year ended December 31, 2013, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $200.8 million to achieve a coverage of 1:1.
(f)
For the year ended December 31, 2012, the ratio coverage was less that 1:1. We would have needed to generate additional earnings of $227.3 million to achieve a coverage of 1:1.