EX-12 2 exhibit12ratiotofixedcharg.htm EXHIBIT Exhibit 12 Ratio to Fixed Charges (1)


Exhibit 12
 
 
 
 
 
 
 
 
 
Boyd Gaming Corporation
 
 
 
 
 
 
 
 
 
Computation of Ratio of Earnings to Fixed Charges
 
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
(In thousands, except ratio amounts)
2013
 
2012
 
2011
 
2010
 
2009
Income/(loss) from continuing operations before income taxes and (income) loss from unconsolidated affiliates
$
(115,994
)
 
$
(1,139,235
)
 
$
(10,400
)
 
$
16,246

 
$
(34,800
)
Add:
 
 
 
 
 
 
 
 
 
    Fixed charges
358,305

 
300,471

 
254,867

 
184,862

 
153,181

   Distributed income of equity investees
—

 
—

 
—

 
1,910

 
60,136

Subtract:
 
 
 
 
 
 
 
 
 
   Interest capitalized
(1,108
)
 
(700
)
 
(354
)
 
—

 
(378
)
         Earnings/(losses), as defined (1)
$
241,203

 
$
(839,464
)
 
$
244,113

 
$
203,018

 
$
178,139

 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest expensed, net of interest capitalized
$
344,330

 
$
290,004

 
$
250,731

 
$
180,558

 
$
146,830

Interest capitalized
1,108

 
700

 
354

 
—

 
378

Interest component of rental expense
12,867

 
9,767

 
3,782

 
4,304

 
5,973

         Fixed Charges (2)
$
358,305

 
$
300,471

 
$
254,867

 
$
184,862

 
$
153,181

 
 
 
 
 
 
 
 
 
 
         Ratio of earnings to fixed charges
 
 
 
 
 
 
1.1x
 
1.2x
         Deficiency of earnings to fixed charges
(117,102
)
 
(1,139,935
)
 
(10,754
)
 
—

 
—


_______________________________________________

(1) For purposes of computing this ratio, "earnings" consist of income before income taxes and income/(loss) from unconsolidated affiliates, plus fixed charges (excluding capitalized interest) and distributed income of equity investees. Current year amortization of previously capitalized interest is not included as these amounts are not material.

(2) For purposes of computing this ratio, "fixed charges" include interest whether expensed or capitalized, amortization of debt expense, discount, or premium related to indebtedness (included in interest expense), and such portion of rental expense that we deem to be a reasonable representation of the interest factor.