EX-12 2 a2207426zex-12.htm EX-12

Exhibit 12

 

CF INDUSTRIES HOLDINGS, INC.

RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Year ended December 31,

 

(Dollars in millions) 

 

2011

 

2010

 

2009

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

Pretax earnings from continuing operations

 

$

2,645.6

 

$

687.7

 

$

695.6

 

$

1,175.4

 

$

625.9

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

229.7

 

260.3

 

6.7

 

6.9

 

6.1

 

Distributed income of equity investees

 

130.2

 

2.2

 

—

 

—

 

—

 

Amortization of capitalized interest

 

3.9

 

3.8

 

3.3

 

3.6

 

3.2

 

Less: preference security dividends of Terra Nitrogen Company, L.P.

 

(64.1

)

(23.1

)

—

 

—

 

—

 

Capitalized interest

 

(7.9

)

(7.6

)

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings for fixed charge coverage ratio calculation

 

$

2,937.4

 

$

923.3

 

$

705.6

 

$

1,185.9

 

$

635.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

Interest expensed (a) 

 

$

147.2

 

$

221.3

 

$

1.5

 

$

1.6

 

$

1.7

 

Capitalized interest

 

7.9

 

7.6

 

—

 

—

 

—

 

Estimated interest in rent expense (b) 

 

10.5

 

8.3

 

5.2

 

5.3

 

4.4

 

Preference security dividends of Terra Nitrogen Company, L.P.

 

64.1

 

23.1

 

—

 

—

 

—

 

 

 

$

229.7

 

$

260.3

 

$

6.7

 

$

6.9

 

$

6.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

12.8

x

3.5

x

105.3

x

171.9

x

104.1

x

 

(a)   Including amortized premiums, discounts, and capitalized expenses related to indebtedness. 

 

(b)   Assumes that the interest component is 13% of total rent expense in 2011 and 2010 and 14% in all prior years.