EX-12 4 pot_ex-12.txt Exhibit 12 Potash Corporation of Saskatchewan Inc Ratio of Earnings to Fixed Charges (in millions of US dollars, except ratio amounts) (unaudited) Three Months Ended 31-Mar Year ended December 31 ----------------------------------------------------------------------------- 2001 2000 2000 1999 1998 1997 1996 ----------------------------------------------------------------------------- Actual Net income $62.40 $71.60 $198.00 ($412.00) $261.00 $297.10 $209.00 Income taxes 38.3 20.5 67.2 7.5 117.5 69.1 43.7 Interest on debt 15.8 14.5 61.6 51.5 63.8 81.4 46.8 Estimate of interest in operating leases 11.1 11.1 44.5 36.1 35.3 75.4 9.6 ----------------------------------------------------------------------------- $127.60 $117.70 $371.30 ($316.90) $477.60 $523.00 $309.10 ============================================================================= Total Fixed Charges $26.90 $25.60 $106.10 $87.60 $99.10 $156.80 $56.40 ============================================================================= Ratio of Earnings to Fixed Charges 4.74 4.6 3.5 - 4.82 3.34 5.48 ============================================================================= Pro forma (1) Pro forma net income $53.40 $162.00 Pro forma income taxes 38.3 67.2 Pro forma interest on debt 24.8 97.6 Pro forma estimate of interest in operating leases 4.2 16.7 ------------ ----------- $120.70 $343.50 ============ =========== Total Pro forma Fixed Charges $29.00 $114.30 ============ =========== Pro forma Ratio of Earnings to Fixed Charges 4.16 3 ============ =========== (1) Pro forma ratios required for 2000 and the first quarter of 2001 reflect the issuance of $600.0 million of the registrant's 7 3/4 % Notes due May 31, 2011 and the expected use of the net proceeds from the sale of the notes, including the use of approximately $207.0 million to repay short-term debt and the use of approximately $384.0 million to acquire certain nitrogen facilities in Trinidad, which would result in the termination of the lease arrangements under which we are currently operating such facilities.