Attached files
file | filename |
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10-Q - FORM 10-Q - OLIN Corp | oln-2017930x10q.htm |
EX-32.0 - SECTION 906 CERTIFICATION STATEMENT OF CEO AND CFO - OLIN Corp | oln-ex32_2017930xq3.htm |
EX-31.2 - SECTION 302 CERTIFICATION STATEMENT OF CFO - OLIN Corp | oln-ex312_2017930xq3.htm |
EX-31.1 - SECTION 302 CERTIFICATION STATEMENT OF CEO - OLIN Corp | oln-ex311_2017930xq3.htm |
Exhibit 12
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
Earnings: | ($ in millions) | |||||||
Income (loss) before taxes(1) | $ | 56.5 | $ | (57.7 | ) | |||
Add (deduct): | ||||||||
Earnings of non-consolidated affiliates | (1.5 | ) | (1.1 | ) | ||||
Amortization of capitalized interest | 1.5 | 3.0 | ||||||
Capitalized interest | (3.0 | ) | (1.9 | ) | ||||
Fixed charges as described below | 190.9 | 171.8 | ||||||
Total | $ | 244.4 | $ | 114.1 | ||||
Fixed charges: | ||||||||
Interest expensed and capitalized | $ | 161.0 | $ | 145.5 | ||||
Estimated interest factor in rent expense(2) | 29.9 | 26.3 | ||||||
Total | $ | 190.9 | $ | 171.8 | ||||
Ratio of earnings to fixed charges(3) | 1.3 | 0.7 |
(1) | For the nine months ended September 30, 2016, income (loss) 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 nine months ended September 30, 2016 was less than 1:1. We would have needed to generate additional earnings of $57.7 million to achieve a coverage of 1:1 during the nine months ended September 30, 2016. |