EX-12.1 3 exhibit12-1.htm EXHIBIT 12.1 exhibit12-1.htm
 
 
 
 
EXHIBIT 12.1
 
RATIO OF EARNINGS TO FIXED CHARGES
 
We have computed the ratio of earnings to fixed charges for each of the following periods on a consolidated basis. For purposes of computing the ratio of earnings to fixed charges, “earnings” consist of pretax income (loss) from continuing operations before adjustment for noncontrolling interests in consolidated subsidiaries or income or loss from equity investees, plus distributed income of equity investees, plus fixed charges (excluding capitalized interest). “Fixed charges” represent interest incurred (whether expensed or capitalized), amortization of debt issue costs and discount, and that portion of rental expense on operating leases deemed to be the equivalent of interest. You should read the ratio of earnings to fixed charges in conjunction with our consolidated financial statements that are incorporated by reference in this prospectus.
 
   
Year ended December 31,
  
   
2014
    
2013
    
2012
    
2011
    
2010
  
   
(Dollars in millions)
  
EARNINGS:
                              
Income (loss) before income taxes
   $ 262,521     $ 143,588     $ (125,961 )   $ 1,050     $ 1,670  
Deduct income from equity investees
     (879 )     (2,965 )     (8,434 )     (22,215 )     (19,469 )
Add distributed income of equity investees
     8,790       12,260       16,230       26,180       30,008  
Less capitalized interest
     (10,419 )     (10,419 )     (4,893 )     (1,277 )     (12,474 )
Add fixed charges
     52,135       58,250       91,598       106,772       107,709  
    $ 312,148     $ 200,714     $ (31,460 )   $ 110,510     $ 107,444  
FIXED CHARGES:
                                        
Interest expense, net of capitalized amounts
   $ 22,645     $ 36,881     $ 77,938     $ 97,875     $ 86,710  
Capitalized interest
     10,419       10,419       4,893       1,277       12,474  
Interest portion of rental expense
     19,071       10,950       8,767       7,620       8,525  
Total Fixed Charges
   $ 52,135     $ 58,250     $ 91,598     $ 106,772     $ 107,709  
RATIO OF EARNINGS TO FIXED CHARGES
     6.0       3.4       --- (a)     1.0       1.0  
 
(a)
For the year ended December 31, 2012, Helix recorded a loss. As a result, Helix’s ratio coverage was less than 1:1. Helix would have needed to generate additional earnings of $123.1 million in 2012 to achieve coverage of 1:1 in that year.