EX-12 8 cf-12312016xex12.htm RATIO OF EARNINGS TO FIXED CHARGES Exhibit


Exhibit 12
CF INDUSTRIES HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
 
 
Year ended December 31,
 
(Dollars in millions)
 
2016
 
2015
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
 
Pretax (loss) earnings from continuing operations
 
$
(226
)
 
$
1,058

 
$
2,187

 
$
2,210

 
$
2,829

 
Plus:
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
497

 
343

 
312

 
264

 
232

 
Distributed income of equity investees
 
14

 
48

 
79

 
59

 
111

 
Amortization of capitalized interest
 
9

 
2

 
1

 
4

 
4

 
Less:
 
 
 
 
 
 
 
 
 
 
 
Preference security dividends of CF Industries Nitrogen, LLC
 
(79
)
 
—

 
—

 
—

 
—

 
Preference security dividends of Terra Nitrogen Company, L.P.
 
(40
)
 
(45
)
 
(46
)
 
(66
)
 
(78
)
 
Capitalized interest
 
(166
)
 
(154
)
 
(74
)
 
(27
)
 
(9
)
 
Earnings for fixed charge coverage ratio
 
$
9

 
$
1,252

 
$
2,459

 
$
2,444

 
$
3,089

 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
 
 
 
 
 
 
 
 
 
 
Interest expensed (a)
 
$
200

 
$
133

 
$
178

 
$
152

 
$
135

 
Capitalized interest
 
166

 
154

 
74

 
27

 
9

 
Estimated interest in rent expense (b)
 
12

 
11

 
14

 
19

 
10

 
Preference security dividends of CF Industries Nitrogen, LLC
 
79

 
—

 
—

 
—

 
—

 
Preference security dividends of Terra Nitrogen Company, L.P.
 
40

 
45

 
46

 
66

 
78

 
 
 
$
497

 
$
343

 
$
312

 
$
264

 
$
232

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
0.02

x
3.6

x
7.9

x
9.3

x
13.3

x
(a) Including amortized premiums, discounts, and capitalized expenses related to indebtedness.
(b) Assumes that the interest component is 11% of total rent expense in 2016, 11% in 2015, 15% in 2014, 19% in 2013 and 11% in 2012.