EX-12 4 a2202115zex-12.htm EX-12

Exhibit 12

 

HARSCO CORPORATION

Computation of Ratios of Earnings to Fixed Charges

 

 

 

YEARS ENDED DECEMBER 31

 

(dollars in thousands)

 

2010 (a)

 

2009 (a)

 

2008 (a)

 

2007 (a)

 

2006 (b)

 

Pre-tax income from continuing operations attributable to Harsco shareholders (c)

 

$

15,161

 

$

152,347

 

$

337,443

 

$

372,713

 

$

279,756

 

 

 

 

 

 

 

 

 

 

 

 

 

Add fixed charges computed below

 

97,334

 

95,180

 

120,709

 

129,233

 

100,635

 

 

 

 

 

 

 

 

 

 

 

 

 

Net adjustments for equity companies

 

(214

)

(94

)

(417

)

(868

)

(192

)

 

 

 

 

 

 

 

 

 

 

 

 

Net adjustments for capitalized interest

 

125

 

(572

)

(277

)

(723

)

(1,114

)

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Earnings Available for Fixed Charges

 

$

112,406

 

$

246,861

 

$

457,458

 

$

500,355

 

$

379,085

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense per financial statements (d)

 

$

60,623

 

$

62,746

 

$

73,160

 

$

81,383

 

$

60,478

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense capitalized

 

254

 

947

 

552

 

1,035

 

1,325

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

36,457

 

31,487

 

46,997

 

46,815

 

38,832

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Fixed Charges

 

$

97,334

 

$

95,180

 

$

120,709

 

$

129,233

 

$

100,635

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Ratio of Earnings to Fixed Charges

 

1.15

 

2.59

 

3.79

 

3.87

 

3.77

 

 

(a)          Does not include interest related to uncertain tax position obligations.

(b)         Pre-tax income from continuing operations (net of minority interest in net income) restated to reflect the Gas Technologies business group as a Discontinued Operation.  Portion of rentals revised to include recurring short-term rentals in the Harsco Infrastructure Segment.

(c)          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.

(d)         Includes amortization of debt discount and expense.