EX-12.1 20 c48789exv12w1.htm EX-12.1 EX-12.1
EXHIBIT 12.1
Kansas City Southern
Computation of Ratio of Earnings to Fixed Charges
Dollars in millions
                                         
    2008     2007     2006     2005     2004  
Earnings:
                                        
Pretax income from continuing operations, excluding equity in earnings of unconsolidated affiliates
   $ 230.7     $ 209.9     $ 147.3     $ 73.1 (i)   $ 52.5  
Interest expense
     138.9       156.7       167.2       133.5       44.4  
Portion of rents representative of an appropriate interest factor
     45.7       43.1       45.6       34.3       19.2  
Distributed income of equity investments
     18.9       4.0       4.5       8.3       8.8  
 
                              
Pretax income as adjusted
   $ 434.2     $ 413.7     $ 364.6     $ 249.2     $ 124.9  
 
                              
Fixed Charges:
                                        
Interest expense
   $ 138.9     $ 156.7     $ 167.2     $ 133.5     $ 44.4  
Capitalized interest
     4.4       —       —       —       —  
Portion of rents representative of an appropriate interest factor
     45.7       43.1       45.6       34.3       19.2  
 
                              
Fixed charges before preference dividends
     189.0       199.8       212.8       167.8       63.6  
Preference security dividend as defined by
Item 503(d)(B) of Regulation S-K
     20.5       28.4       27.6       15.4       14.2  
 
                              
Total fixed charges
   $ 209.5     $ 228.2     $ 240.4     $ 183.2     $ 77.8  
 
                              
Ratio of earnings to fixed charges and preference dividends
     2.1       1.8       1.5       1.4       1.6  
 
                              
Ratio of earnings to fixed charges
     2.3       2.1       1.7       1.5       2.0  
 
                              
Note: Excludes amortization expense on debt discount due to immateriality.
(i)   Income from continuing operations for the year ended December 31, 2005, reflects the acquisition of Grupo KCSM effective April 1, 2005, and Mexrail effective January 1, 2005. The acquisitions were accounted for as purchases and are included in the consolidated results of operations for periods following the respective acquisition dates.