Exhibit 12.1
Kansas City Southern
Computation of Ratio of Earnings to Fixed Charges
Dollars in millions
2010 | 2009(i) | 2008(i) | 2007(i) | 2006(i) | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Pretax income from continuing operations, excluding equity in earnings of unconsolidated affiliates | $ | 269.5 | $ | 94.5 | $ | 227.9 | $ | 206.2 | $ | 144.7 | ||||||||||
Interest expense | 158.1 | 173.7 | 138.9 | 156.7 | 167.2 | |||||||||||||||
Portion of rents representative of an appropriate interest factor | 42.3 | 46.3 | 45.7 | 43.1 | 45.6 | |||||||||||||||
Distributed income of equity investments | 19.5 | 7.3 | 18.9 | 4.0 | 4.5 | |||||||||||||||
Pretax income as adjusted | $ | 489.4 | $ | 321.8 | $ | 431.4 | $ | 410.0 | $ | 362.0 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense | $ | 158.1 | $ | 173.7 | $ | 138.9 | $ | 156.7 | $ | 167.2 | ||||||||||
Capitalized interest | 1.3 | 2.8 | 4.4 | — | — | |||||||||||||||
Portion of rents representative of an appropriate interest factor | 42.3 | 46.3 | 45.7 | 43.1 | 45.6 | |||||||||||||||
Fixed charges before preference dividends | 201.7 | 222.8 | 189.0 | 199.8 | 212.8 | |||||||||||||||
Preference security dividend as defined by Item 503(d)(B) of Regulation S-K | 17.7 | 16.5 | 20.5 | 28.4 | 27.6 | |||||||||||||||
Total fixed charges | $ | 219.4 | $ | 239.3 | $ | 209.5 | $ | 228.2 | $ | 240.4 | ||||||||||
Ratio of earnings to fixed charges and preference dividends | 2.2 | 1.3 | 2.1 | 1.8 | 1.5 | |||||||||||||||
Ratio of earnings to fixed charges | 2.4 | 1.4 | 2.3 | 2.1 | 1.7 | |||||||||||||||
Note: Excludes amortization of capitalized interest due to immateriality.
(i) | During the first quarter of 2010, the Company elected to change its accounting policy for railgrinding costs from a capitalization method to a direct expense method. All prior periods have been adjusted to reflect the retroactive application of this change in accounting principle. |