Exhibit 12
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
Years Ended December 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Earnings: | ($ in millions) | |||||||||||||||||||
Income (loss) from continuing operations before taxes(1) | $ | (34.2 | ) | $ | 6.7 | $ | 162.7 | $ | 250.0 | $ | 225.2 | |||||||||
Add (deduct): | ||||||||||||||||||||
Earnings of non-consolidated affiliates | (1.7 | ) | (1.7 | ) | (1.7 | ) | (2.8 | ) | (3.0 | ) | ||||||||||
Distributions from affiliated companies | — | — | — | 1.5 | 1.3 | |||||||||||||||
Amortization of capitalized interest | 3.7 | 2.2 | 2.2 | 2.1 | 1.6 | |||||||||||||||
Capitalized interest | (1.9 | ) | (1.1 | ) | (0.2 | ) | (1.1 | ) | (7.4 | ) | ||||||||||
Fixed charges as described below | 225.6 | 123.1 | 67.5 | 62.0 | 54.0 | |||||||||||||||
Total | $ | 191.5 | $ | 129.2 | $ | 230.5 | $ | 311.7 | $ | 271.7 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expensed and capitalized | $ | 193.8 | $ | 98.1 | $ | 44.0 | $ | 39.7 | $ | 33.8 | ||||||||||
Estimated interest factor in rent expense(2) | 31.8 | 25.0 | 23.5 | 22.3 | 20.2 | |||||||||||||||
Total | $ | 225.6 | $ | 123.1 | $ | 67.5 | $ | 62.0 | $ | 54.0 | ||||||||||
Ratio of earnings to fixed charges(3) | 0.8 | 1.0 | 3.4 | 5.0 | 5.0 |
(1) | For the year ended December 31, 2016, income (loss) from continuing operations before taxes included $76.6 million of non-cash asset impairment restructuring charges associated with permanently closing the Henderson, NV chlor alkali plant and reconfiguring the facility to manufacture bleach and distribute caustic soda and hydrochloric acid. |
(2) | Amounts represent those portions of rent expense that are reasonable approximations of interest costs. |
(3) | The ratio coverage during the year ended December 31, 2016 was less than 1:1. We would have needed to generate additional earnings of $34.1 million to achieve a coverage of 1:1 during the year ended December 31, 2016. |