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Exhibit 12.1
Covanta Holding Corporation
Computation of Ratio of Earnings to Fixed Charges

 
Six Months
Ended
June 30,
 
Year Ended December 31,
(dollars in millions)
2017
 
2016
 
2015
 
2014
 
2013
 
2012
Earnings as defined in Reg. S-K (1):
 
 
 
 
 
 
 
 
 
 
 
(Loss) Income from continuing operations before income tax expense, equity in net income from unconsolidated investments
$
(93
)
 
$
14

 
$
(28
)
 
$
4

 
$
79

 
$
159

Capitalized interest
(20
)
 
(26
)
 
(9
)
 
(2
)
 
(1
)
 
(1
)
Dividends from unconsolidated investments
—

 
2

 
5

 
11

 
7

 
8

Fixed charges
92


168


151


157


168


158

Total Earnings
$
(21
)
 
$
158


$
119


$
170

 
$
253

 
$
324

Fixed Charges as defined in Reg. S-K (2):
 
 
 
 
 
 
 
 
 
 
 
Interest expense
71

 
138

 
134

 
147

 
159

 
146

Capitalized interest
20

 
26

 
9

 
2

 
1

 
1

Imputed interest on operating leases
1

 
4

 
8

 
8

 
8

 
11

Total Fixed Charges
$
92


$
168


$
151


$
157


$
168


$
158

Ratio of Earnings to Fixed Charges (3)
(0.23x)

 
0.94x

 
0.79x

 
1.08x

 
1.51x

 
2.05x

 

 

 

 
 
 
 
 
 
(1)
For purposes of computing the ratio of earnings to fixed charges, the term “earnings” shall be defined as income from continuing operations before income tax expense and equity in net income from unconsolidated investments plus dividends from unconsolidated investments and fixed charges less capitalized interest.

(2)
For purposes of computing the ratio of earnings to fixed charges, the term “fixed charges” shall be defined as interest expense, capitalized interest and imputed interest for operating leases.

(3)
The ratio of earnings to fixed charges indicates a less than one-to-one coverage for the six months ended June 30, 2017 and for the years ended December 31, 2016 and 2015. Earnings available for fixed charges were inadequate to cover total fixed charges for these periods. The deficit amount for the ratio was $113 million, $10 million and $32 million for the six months ended June 30, 2017 and for the years ended December 31, 2016 and 2015, respectively.