EX-12.1 3 d595888dex121.htm EXHIBIT 12.1 Exhibit 12.1

Exhibit 12.1

HARSCO CORPORATION

Computation of Ratios of Earnings to Fixed Charges

 

     Six Months
Ended
June 30

2013
    Year Ended December 31  
(In thousands)      2012     2011     2010     2009     2008  

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

   $ 48,446      $ (218,442 )(b)    $ 40,401      $ 15,161      $ 152,347      $ 337,443   

Add: Consolidated Fixed Charges computed below

     41,894        80,073        86,608        97,334        95,180        120,709   

Net adjustments for unconsolidated entities

     (581     (256     (464     (214     (94     (417

Net adjustments for capitalized interest

     (366     128        165        125        (572     (277
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated Earnings Available for Fixed Charges (c)

   $ 89,393      $ (138,497 )(b)    $ 126,710      $ 112,406      $ 246,861      $ 457,458   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated Fixed Charges:

            

Interest expense per financial statements (d)

   $ 24,598      $ 47,381      $ 48,735      $ 60,623      $ 62,746      $ 73,160   

Interest expense capitalized

     577        476        250        254        947        552   

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

     16,719        32,216        37,623        36,457        31,487        46,997   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated Fixed Charges

   $ 41,894      $ 80,073      $ 86,608      $ 97,334      $ 95,180      $ 120,709   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Consolidated Ratio of Earnings to Fixed Charges (e)

     2.13        —   (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 consolidated financial statements, under Part II, Item 8, “Financial Statements and Supplementary Data,” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.
(c) Does not include interest related to uncertain tax position obligations.
(d) Includes amortization of debt discount.
(e) For the year ended December 31, 2012, the ratio coverage was less than 1:1. The Company would have needed to generate additional earnings of $218.6 million to achieve a coverage of 1:1.