EX-12.1 2 ex121-123114x10k.htm EXHIBIT 12.1 RATIO OF EARNINGS TO FIXED CHARGES EX 12.1-12.31.14-10K


Exhibit 12.1
Covanta Holding Corporation
Computation of Ratio of Earnings to Fixed Charges


 
 
For the Years Ended December 31, 
 
2014
 
2013 
 
2012 
 
2011 
 
2010
 
(In millions, except ratios)
Earnings as defined in Regulation S-K (1):
 
 
 
 
 
 
 
 
 
Income from continuing operations before income tax expense, equity in net income from unconsolidated investments
$
4

 
$
79

 
$
159

 
$
129

 
$
74

Capitalized interest
(2
)
 
(1
)
 
(1
)
 
(1
)
 
—

Dividends from unconsolidated investments
11

 
7

 
8

 
8

 
5

Fixed Charges
157

 
168

 
158

 
136

 
136

Total Earnings
$
170

 
$
253

 
$
324

 
$
272

 
$
215

 
 

 
 

 
 

 
 

 
 

Fixed Charges as defined in Regulation S-K (2):
 

 
 

 
 

 
 

 
 

Interest expense
$
147

 
$
159

 
$
146

 
$
123

 
$
122

Capitalized interest
2

 
1

 
1

 
1

 
—

Imputed interest on operating leases
8

 
8

 
11

 
12

 
14

Total Fixed Charges
$
157

 
$
168

 
$
158

 
$
136

 
$
136

 
 

 
 

 
 

 
 

 
 

Ratio of Earnings to Fixed Charges
1.08x

 
1.51x

 
2.05x

 
2.00x

 
1.58x

 
 

 
 
 
 

 
 

 
 

 
(1)
For purposes of computing the ratio of earnings to fixed charges, the term “earnings” shall be defined as income from continuing operations before income tax expense and equity in net income from unconsolidated investments plus dividends from unconsolidated investments and fixed charges less capitalized interest.
 
(2)
For purposes of computing the ratio of earnings to fixed charges, the term “fixed charges” shall be defined as interest expense, capitalized interest and imputed interest for operating leases.