EX-12.1 11 a17-10186_1ex12d1.htm EX-12.1

EXHIBIT 12.1

 

STEEL DYNAMICS, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(DOLLARS IN THOUSANDS)

 

 

 

2016 (1)

 

2015

 

2014 (3)

 

2013

 

2012

 

Interest expense, including amortization of debt issuance costs

 

$

146,037

 

$

153,950

 

$

137,263

 

$

127,728

 

$

158,585

 

Capitalized interest

 

2,497

 

457

 

2,471

 

4,592

 

1,394

 

Fixed charges (a)

 

148,534

 

154,407

 

139,734

 

132,320

 

159,979

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes and before adjustment for

 

 

 

 

 

 

 

 

 

 

 

noncontrolling interests

 

564,133

 

(242,117

)

164,803

 

262,830

 

204,066

 

Amortization of capitalized interest

 

6,793

 

7,194

 

7,194

 

6,832

 

6,778

 

Less capitalized interest

 

(2,497

)

(457

)

(2,471

)

(4,592

)

(1,394

)

Adjusted earnings (losses) (b)

 

$

716,963

 

$

(80,973

)

$

309,260

 

$

397,390

 

$

369,429

 

Ratio of earnings (losses) to fixed charges (b) / (a)

 

4.83x

 

Note(2)

 

2.21x

 

3.00x

 

2.31x

 

Earnings shortfall (2)

 

 

 

$

(235,382

)

 

 

 

 

 

 

 

(1)         Adjusted earnings in 2016 of $717.0 million include $132.8 million of pretax non-cash asset impairment charges related to our Minnesota ironmaking and Metal Recycling assets.  Without the impact of these non-cash asset impairment charges, 2016 adjusted earnings would increase from $717.0 million to $849.8 million, resulting in a ratio of earnings to fixed charges of 5.72x.

 

(2)         Adjusted losses in 2015 are not sufficient to cover fixed charges by $235.4 million. Adjusted losses in 2015 include $428.5 million of pretax non-cash impairment charges related to OmniSource goodwill, trade name, property and plant, and other assets. Without the impact of these non-cash impairment charges, 2015 would reflect adjusted earnings of $347.5 million and a ratio of earnings to fixed charges of 2.20x.

 

(3)         Adjusted earnings in 2014 include $260.0 million of pretax non-cash asset impairment charges related to Minnesota ironmaking operations property, plant, and equipment. Without the impact of these non-cash asset impairment charges, 2014 adjusted earnings would be $569.3 million, resulting in a ratio of earnings to fixed charges of 4.07x.

 

For purposes of calculating our ratio of earnings to fixed charges, earnings consist of earnings from continuing operations before income taxes, extraordinary items and before adjustment for noncontrolling interests, adjusted for the portion of fixed charges deducted from the earnings, plus amortization of capitalized interest. Fixed charges consist of interest on all indebtedness, including capitalized interest, and amortization of debt issuances costs.