EX-12.1 2 a2218230zex-12_1.htm EX-12.1

Exhibit 12.1

 

CHS Inc.

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

Nov 30

 

Years Ended August 31,

 

(in thousands) 

 

2013

 

2013

 

2012

 

2011

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

269,668

 

$

1,085,994

 

$

1,416,571

 

$

1,147,656

 

$

583,835

 

$

503,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADD:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges, as shown below

 

31,949

 

136,206

 

131,641

 

116,885

 

95,462

 

110,748

 

Amortization of capitalized interest

 

476

 

3,547

 

3,305

 

3,604

 

3,654

 

3,640

 

Distributions from equity investments

 

37,231

 

62,761

 

75,468

 

137,766

 

89,689

 

80,403

 

Investments redeemed - equity investees, cooperatives and other

 

19

 

13,021

 

10,409

 

8,980

 

14,188

 

39,787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBTRACT:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in income of investees

 

(32,678

)

(97,350

)

(102,389

)

(131,414

)

(108,787

)

(105,754

)

Noncash patronage dividends received

 

(366

)

(16,644

)

(10,461

)

(9,697

)

(9,918

)

(9,717

)

Interest capitalized

 

(2,265

)

(10,579

)

(8,881

)

(5,487

)

(6,212

)

(5,201

)

EARNINGS AS ADJUSTED

 

$

304,034

 

$

1,176,956

 

$

1,515,663

 

$

1,268,293

 

$

661,911

 

$

617,584

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest *

 

$

23,519

 

$

99,271

 

$

94,089

 

$

83,045

 

$

69,902

 

$

85,668

 

Amortization of debt costs

 

1,538

 

9,770

 

12,692

 

11,762

 

4,132

 

4,668

 

Appropriate portion (1/3) of rent expense **

 

6,892

 

27,165

 

24,859

 

22,078

 

21,429

 

20,413

 

TOTAL FIXED CHARGES

 

31,949

 

136,206

 

131,641

 

116,885

 

95,462

 

110,748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PREFERRED DIVIDEND FACTOR:

 

11,080

 

26,766

 

26,028

 

26,534

 

25,823

 

24,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

 

$

43,029

 

$

162,972

 

$

157,669

 

$

143,419

 

$

121,285

 

$

134,807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO

 

7.1

 

7.2

 

9.6

 

8.8

 

5.5

 

4.6

 

 

* - Interest costs of $11.1 million, $149.1 million and $113.2 million for the three months ended November 30, 2013 and the years ended August 31, 2013 and 2012, respectively, associated with our commitment to purchase the NCRA noncontrolling interests, were excluded from interest expense for purposes of computing the ratio of earnings to fixed charges and preferred dividends.

**- 1/3 of rent expense is a reasonable approximation of the interest factor.