EX-12 3 tex123117ex-12.htm EXHIBIT 12 CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


EXHIBIT 12

TEREX CORPORATION
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(amounts in millions)
 
Year Ended December 31,
 
 
2017
 
 
2016
 
 
2015
 
 
2014
 
 
2013
 
EARNINGS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes
$
112.0

 
 
$
(270.7
)
 
 
$
195.7

 
 
$
278.6

 
 
$
284.2

 
Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Undistributed (income) loss of less than 50% owned investments
0.1

 
 
(0.4
)
 
 
1.6

 
 
8.4

 
 
4.8

 
Fixed charges
133.3

 
 
117.0

 
 
124.6

 
 
141.9

 
 
149.9

 
Earnings (loss)
$
245.4

 
 
$
(154.1
)
 
 
$
321.9

 
 
$
428.9

 
 
$
438.9

 
FIXED CHARGES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, including debt discount amortization
63.3

 
 
96.6

 
 
102.8

 
 
115.3

 
 
120.1

 
Amortization of debt issuance costs
4.2

 
 
5.4

 
 
5.3

 
 
7.4

 
 
8.5

 
Loss on early extinguishment of debt
52.6

 
 
0.4

 
 
0.1

 
 
2.6

 
 
5.2

 
Portion of rental expense representative of interest factor (assumed to be 33%)
13.2

 
 
14.6

 
 
16.4

 
 
16.6

 
 
16.1

 
Fixed charges
$
133.3

 
 
$
117.0

 
 
$
124.6

 
 
$
141.9

 
 
$
149.9

 
RATIO OF EARNINGS TO FIXED CHARGES
1.8

x
 
—

(1)
 
2.6

x
 
3.0

x
 
2.9

x
AMOUNT OF EARNINGS DEFICIENCY FOR COVERAGE OF FIXED CHARGES
$
—

 
 
$
271.1

 
 
$
—

 
 
$
—

 
 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CALCULATION EXCLUDING LOSS ON EARLY EXTINGUISHMENT OF DEBT:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES
2.4

x
 
—

(1)
 
2.6

x
 
3.1

x
 
3.0

x
AMOUNT OF EARNINGS DEFICIENCY FOR COVERAGE OF FIXED CHARGES
$
—

 
 
$
271.1

 
 
$
—

 
 
$
—

 
 
$
—

 
(1) less than 1.0x