EX-12 4 hsc-ex12_20131231x10k.htm EX-12 HSC-EX12_2013.12.31-10K


Exhibit 12

HARSCO CORPORATION
Computation of Ratios of Earnings to Fixed Charges



 
YEARS ENDED DECEMBER 31
(In thousands)
2013
 
2012
 
2011
 
2010
 
2009
Pre-tax income from continuing operations attributable to Harsco shareholders
$
(191,537
)
(a)
$
(218,442
)
(b)
$
40,401

 
$
15,161

 
$
152,347

Add: Consolidated Fixed Charges computed below
78,637

 
80,073

 
86,608

 
97,334

 
95,180

Net adjustments for unconsolidated entities
(1,511
)
 
(256
)
 
(464
)
 
(214
)
 
(94
)
Net adjustments for capitalized interest
53

 
128

 
165

 
125

 
(572
)
Consolidated Earnings Available for Fixed Charges (c)
$
(114,358
)
(a)
$
(138,497
)
(b)
$
126,710

 
$
112,406

 
$
246,861

 
 
 
 
 
 
 
 
 
 
Consolidated Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expense per financial statements (d)
$
49,654

 
$
47,381

 
$
48,735

 
$
60,623

 
$
62,746

Interest expense capitalized
577

 
476

 
250

 
254

 
947

Portion of rentals (1/3) representing a reasonable approximation of the interest factor
28,406

 
32,216

 
37,623

 
36,457

 
31,487

Consolidated Fixed Charges
$
78,637

 
$
80,073

 
$
86,608

 
$
97,334

 
$
95,180

Consolidated Ratio of Earnings to Fixed Charges
—

(a)(e)
—

(b) (f)
1.46

 
1.15

 
2.59


(a)
During 2013, the Company recorded a $271.3 million, non-cash pre-tax long-lived asset impairment charge, or $3.16 per basic and diluted share.
(b)
In the fourth quarter of 2012, the Company incurred a $265.0 million, pre-tax goodwill impairment charge, or $3.29 per basic and diluted share. Please refer to Note 6, Goodwill and Other Intangible Assets to the Company's consolidated financial statements, under Part II, Item 8, "Financial Statements and Supplementary Data."
(c)
Does not include interest related to uncertain tax position obligations.
(d)
Includes amortization of debt discount.
(e)
For the year ended December 31, 2013, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $193.0 million to achieve a coverage of 1:1.
(f)
For the year ended December 31, 2012, the ratio coverage was less that 1:1. We would have needed to generate additional earnings of $218.6 million to achieve a coverage of 1:1.