EX-12.1 2 d882278dex121.htm EXHIBIT 12.1 Exhibit 12.1

Exhibit 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

     Year Ended December 31,  
(Dollars in millions, except ratios)    2010     2011     2012(1)     2013(2)     2014(2)  

Interest expensed and capitalized

      1,606        1,953        2,039        1,893        1,560   

Interest portion of rental obligations

      66        141        162        222        232   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges (A)

   1,672      2,094      2,200      2,115      1,792   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Pretax income from continuing operations before adjustment for non-controlling interests in consolidated subsidiaries

   1,936      2,835      (5,375 )    (2,360 )    (520 ) 

Income allocable to non-controlling interest in consolidated entities that have not incurred fixed charges

   (89 )    3      117      30      (112 ) 

Undistributed earnings of equity investees

   (294 )    (222 )    48      608      325   

Fixed charges, excluding capitalized interest

   1,672      2,087      2,192      2,112      1,797   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings-pretax income with applicable adjustments (B)

   3,225      4,703      (3,017 )    390      1,490   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of (B) to (A)

   1.9      2.2      (1.4 )    0.2      0.8   

 

(1) Due to ArcelorMittal’s pretax loss in 2012, the ratio coverage was less than 1:1. ArcelorMittal would have needed to generate additional earnings of $5,218 million to achieve a coverage of 1:1 for 2012.
(2) In 2013 and 2014, ArcelorMittal’s pretax results were not enough to reach a ratio of 1:1; ArcelorMittal would have needed to generate additional earnings of $1,725 million and $302 million to achieve a coverage of 1:1 for 2013 and 2014, respectively.

The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. Earnings represent consolidated pretax income from continuing operations before adjustment for non-controlling interests in consolidated subsidiaries, less income allocable to non-controlling interests in consolidated entities that have not incurred fixed charges, fixed charges, and undistributed earnings of equity investees. Equity investees are investments accounted for using the equity method of accounting. Fixed charges include interest expensed and capitalized, the interest portion of rental obligations, amortized premiums, discounts and capitalized expenses related to indebtedness. Amounts were prepared in accordance with IFRS as issued by the International Accounting Standards Board.