EX-12.1 2 d216361dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES

Computation of Ratio of Earnings to Fixed Charges

(Unaudited)

 

     Years Ended December 31,  
     2015     2014     2013     2012     2011  
     ($ in millions)  

Earnings:

           

Income from continuing operations before taxes(1)

    $ 6.7      $ 162.7      $ 250.0      $ 225.2      $ 379.4   

Add (deduct):

           

Earnings of non-consolidated affiliates

      (1.7 )      (1.7 )      (2.8 )      (3.0 )      (9.6 ) 

Distributions from affiliated companies

      —          —          1.5        1.3        1.4   

Amortization of capitalized interest

      2.2        2.2        2.1        1.6        1.4   

Capitalized interest

      (1.1 )      (0.2 )      (1.1 )      (7.4 )      (1.2 ) 

Fixed charges as described below

      123.1        67.5        62.0        54.0        49.5   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 129.2      $ 230.5      $ 311.7      $ 271.7      $ 420.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

           

Interest expensed and capitalized

    $ 98.1      $ 44.0      $ 39.7      $ 33.8      $ 31.6   

Estimated interest factor in rent expense(2)

      25.0        23.5        22.3        20.2        17.9   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 123.1      $ 67.5      $ 62.0      $ 54.0      $ 49.5   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      1.0        3.4        5.0        5.0        8.5   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) The income from continuing operations before taxes for the year ended December 31, 2011 included a pretax gain of $181.4 million as a result of remeasuring our previously held 50% equity interest in SunBelt.
(2) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.

OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES

Computation of Ratio of Earnings to Fixed Charges

(Unaudited)

 

     Six Months Ended
June 30,		  
     2016     2015  
     ($ in millions)  

Earnings:

   

Income (loss) before taxes(1)

    $ (79.0 )    $ 83.3   

Add (deduct):

     

Earnings of non-consolidated affiliates

      (0.6 )      (0.8 ) 

Amortization of capitalized interest

      2.6        0.9   

Capitalized interest

      (1.6 )      (0.2 ) 

Fixed charges as described below

      115.5        37.0   
  

 

 

    

 

 

  

Total

    $ 36.9      $ 120.2   
  

 

 

    

 

 

  

Fixed charges:

     

Interest expensed and capitalized

    $ 97.7      $ 25.5   

Estimated interest factor in rent expense(2)

      17.8        11.5   
  

 

 

    

 

 

  

Total

    $ 115.5      $ 37.0   
  

 

 

    

 

 

  

Ratio of earnings to fixed charges(3)

      0.3        3.2   
  

 

 

    

 

 

  

 

(1) For the six months ended June 30, 2016, income (loss) before taxes included $76.6 million of non-cash asset impairment restructuring charges associated with permanently closing the Henderson, Nevada chlor alkali plant and reconfiguring the facility to manufacture bleach and distribute caustic soda and hydrochloric acid.

 

(2) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.

 

(3) The ratio coverage during the six months ended June 30, 2016 was less than 1:1. We would have needed to generate additional earnings of $78.6 million to achieve a coverage of 1:1 during the six months ended June 30, 2016.