EX-12.1 7 anr-12312014x10kexhibit121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES ANR-12.31.2014-10K Exhibit 12.1


Exhibit 12.1

Alpha Natural Resources, Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(Amounts in thousands except ratio)


 
 
Years Ended December 31,
 
 
2014
 
2013
 
2012
 
2011
 
2010
Earnings:
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(930,252
)
 
$
(1,330,048
)
 
$
(2,987,144
)
 
$
(766,448
)
 
$
101,436

Adjustments:
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
299,120
 
 
301,748
 
 
225,575
 
 
178,229
 
 
83,184
 
(Expense) income from equity investees
 
(1,957
)
 
22,549
 
 
2,616
 
 
1,268
 
 
1,706
 
Amortization of capitalized interest
 
545
 
 
347
 
 
139
 
 
107
 
 
106
 
Capitalized interest
 
—
 
 
—
 
 
(1,194
)
 
(1,925
)
 
(2,152
)
 
 
$
(632,544
)
 
$
(1,005,404
)
 
$
(2,760,008
)
 
$
(588,769
)
 
$
184,280

 
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
288,466

 
$
246,588

 
$
198,147

 
$
141,914

 
$
73,463

Loss (gain) on early extinguishment of debt
 
 
2,022

 
 
40,464

 
 
(773
)
 
 
10,026

 
 
1,349

Portion of rental expense representative of interest
 
8,632
 
 
14,696
 
 
27,007
 
 
24,364
 
 
6,220
 
Capitalized interest
 
—
 
 
—
 
 
1,194
 
 
1,925
 
 
2,152
 
 
 
$
299,120

 
$
301,748

 
$
225,575

 
$
178,229

 
$
83,184

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
N/A (1)
 
 
N/A (1)
 
 
N/A (1)
 
 
N/A (1)
 
 
2.22
 


(1) 
The ratio of earnings to fixed charges was less than one-to-one for the years ended December 31, 2014, 2013, 2012 and 2011. Additional earnings of $932 million, $1,307 million, $2,986 million and $767 million, respectively, would be needed to have a one-to-one ratio of earnings to fixed charges.