EX-12 3 exhibit12ratioofearningsto.htm EXHIBIT 12 RATIO OF EARNINGS TO FIXED CHARGES

Exhibit 12 |  |  |  |  |  |  |  |  |
Boyd Gaming Corporation |  |  |  |  |  |  |  |  |
Computation of Ratio of Earnings to Fixed Charges |  |  |  |  |  |  |  |
(Unaudited) |  |  |  |  |  |  |  |  |
| Year Ended December 31,
(In thousands, except ratio amounts) | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Income/(loss) from continuing operations before income taxes and (income) loss from unconsolidated affiliates | $ | 170,807 |  |  | $ | 7,987 |  |  | $ | 4,061 |  |  | $ | (56,033 | ) |  | $ | (55,887 | )
Add: |  |  |  |  |  |  |  |  |
Fixed charges | 183,221 |  |  | 223,201 |  |  | 234,380 |  |  | 241,108 |  |  | 272,046 |
Distributed income of equity investees | 392 |  |  | — |  |  | — |  |  | — |  |  | — |
Subtract: |  |  |  |  |  |  |  |  |
Interest capitalized | — |  |  | (494 | ) |  | (136 | ) |  | (1,232 | ) |  | (1,108 | )
Earnings, as defined (1) | $ | 354,420 |  |  | $ | 230,694 |  |  | $ | 238,305 |  |  | $ | 183,843 |  |  | $ | 215,051 |
Fixed Charges: |  |  |  |  |  |  |  |  |
Interest expensed, net of interest capitalized | $ | 173,108 |  |  | $ | 212,692 |  |  | $ | 224,590 |  |  | $ | 230,060 |  |  | $ | 262,995 |
Interest capitalized | — |  |  | 494 |  |  | 136 |  |  | 1,232 |  |  | 1,108 |
Interest component of rental expense | 10,113 |  |  | 10,015 |  |  | 9,654 |  |  | 9,816 |  |  | 7,943 |
Fixed Charges (2) | $ | 183,221 |  |  | $ | 223,201 |  |  | $ | 234,380 |  |  | $ | 241,108 |  |  | $ | 272,046 |
Ratio of earnings to fixed charges | 1.9x |  |  | 1.0x |  |  | 1.0x |  |  | — |  |  | — |
Deficiency of earnings to fixed charges | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (57,265 | ) |  | $ | (56,995 | )

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(1) For purposes of computing this ratio, "earnings" consist of income before income taxes and income/(loss) from unconsolidated affiliates, plus fixed charges (excluding capitalized interest) and distributed income of equity investees. Current year amortization of previously capitalized interest is not included as these amounts are not material.
(2) For purposes of computing this ratio, "fixed charges" include interest whether expensed or capitalized, amortization of debt expense, discount, or premium related to indebtedness (included in interest expense), and such portion of rental expense that we deem to be a reasonable representation of the interest factor.