EX-12.1 2 a10-k2017kraexhibit121.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1
KRATON CORPORATION
Ratio of Earnings to Fixed Charges
(In thousands)
 
 
December 31, 2017
 
December 31, 2016
 
December 31, 2015
 
December 31, 2014
 
December 31, 2013
Fixed Charges:
 
 
 
 
 
 
 
 
 
+ Interest expensed
$
121,965

 
$
136,079

 
$
26,390

 
$
25,815

 
$
27,550

+ Interest capitalized
4,042

 
5,825

 
4,185

 
3,198

 
4,180

+ Amortization of debt issuance costs
8,420

 
8,741

 
2,233

 
2,223

 
7,389

+/- Amortization of debt discount (premium)
6,169

 
7,987

 
(174
)
 
(164
)
 
(153
)
+ Estimate of interest within rental expense
1,847

 
2,026

 
1,190

 
1,231

 
3,747

Total fixed charges
142,443

 
160,658

 
33,824

 
32,303

 
42,713

Earnings:
 
 
 
 
 
 
 
 
 
+ Pre-tax income (loss)
34,762

 
12,686

 
(5,586
)
 
6,328

 
(4,862
)
- Income from equity investees
(486
)
 
(394
)
 
(406
)
 
(407
)
 
(530
)
+ Fixed charges
142,443

 
160,658

 
33,824

 
32,303

 
42,713

+ Amortization of capitalized interest
404

 
583

 
419

 
320

 
418

+ Distributed income of equity investees
439

 
409

 
363

 
487

 
422

- Interest capitalized
(4,042
)
 
(5,825
)
 
(4,185
)
 
(3,198
)
 
(4,180
)
Total Earnings
173,520

 
168,117

 
24,429

 
35,833

 
33,981

Deficiency (Surplus)
$
(31,077
)
 
$
(7,459
)
 
$
9,395

 
$
(3,530
)
 
$
8,732

Ratio of Earnings to Fixed Charges (1)
1.22

 
1.05

 
—

 
1.11

 
—

________________________________________________
(1)
Our earnings were insufficient to cover our fixed charges by approximately $9.4 million and $8.7 million for the years ended December 31, 2015 and 2013, respectively.