EX-12.1 3 d308740dex121.htm EXHIBIT 12.1 EXHIBIT 12.1

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) before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees, plus fixed charges (excluding capitalized interest), plus distributed income of equity investees. “Fixed charges” represent interest incurred (whether expensed or capitalized), amortization of debt expense and an estimate of the interest within rental expense. You should read the ratio of earnings to fixed charges in conjunction with our consolidated and condensed financial statements that are incorporated by reference in this prospectus.

 

     Year ended December 31,  
     2011     2010           2009           2008           2007        
     (Dollars in millions)  

EARNINGS:

           

Income (loss) before income taxes

    $ 147,980      $ (163,751 )    $ 261,992      $ (493,466 )    $ 515,501   

Less capitalized interest

      (1,277 )      (12,474 )      (48,119 )      (42,125 )      (31,790 ) 

Deduct equity (income) loss of less than 50% owned subsidiaries

      (22,215 )      (19,469 )      (32,329 )      (31,854 )      (19,573 ) 

Add distributed income of less than 50% owned subsidiaries

      26,180        30,008        32,750        48,500        37,800   

Add fixed charges

      106,772        107,709        118,699        148,286        120,974   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   $ 257,440      $ (57,977 )    $ 332,993      $ (370,659 )    $ 622,912   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

FIXED CHARGES:

           

Interest expense, net of capitalized amounts

      97,875        86,710        57,656        94,864        75,962   

Capitalized interest

      1,277        12,474        48,119        42,125        31,790   

Interest portion of rent expense

      7,620        8,525        12,924        11,297        13,222   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Fixed Charges

    $ 106,772      $ 107,709      $ 118,699      $ 148,286      $ 120,974   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

RATIO OF EARNINGS TO FIXED CHARGES

      2.4        —   (a)      2.8        —   (a)      5.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) For the years ended December 31, 2010 and 2008, Helix recorded losses. As a result, Helix’s ratio coverage was less than 1:1. Helix would have needed to generate additional earnings of $165.7 million and $518.9 million in 2010 and 2008, respectively, to achieve coverage of 1:1 in each of those respective years.