EX-12.1 4 hrg-022315xsx4exhibit121.htm EXHIBIT 12.1
EXHIBIT 12.1
HARBINGER GROUP INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges

|  | Year ended September 30, |  | Three Months Ended December 31,
(in millions, except ratios) |  | 2010 |  | 2011 |  | 2012 |  | 2013 |  | 2014 |  | 2014
Income (loss) from continuing operations before income taxes |  | $ | (132.3 | ) |  | $ | 57.9 |  |  | $ | 25.4 |  |  | $ | 118.3 |  |  | $ | 213.2 |  |  | $ | (89.6 | )
Add back fixed charges |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | 277.0 |  |  | 249.3 |  |  | 251.0 |  |  | 511.9 |  |  | 321.9 |  |  | 80.6 |
Estimated interest within rental expense |  | 10.1 |  |  | 13.9 |  |  | 12.3 |  |  | 17.1 |  |  | 15.6 |  |  | 4.1 |
Total fixed charges |  | $ | 287.1 |  |  | $ | 263.2 |  |  | $ | 263.3 |  |  | $ | 529.0 |  |  | $ | 337.5 |  |  | $ | 84.7 |
Earnings (loss) before fixed charges |  | 154.8 |  |  | 321.1 |  |  | 288.7 |  |  | 647.3 |  |  | 550.7 |  |  | (4.9 | )
Fixed charges as above |  | 287.1 |  |  | 263.2 |  |  | 263.3 |  |  | 529.0 |  |  | 337.5 |  |  | 84.7 |
Ratio of earnings to fixed charges |  | (a) |  | 1.2 |  | 1.1 |  | 1.2 |  | 1.6 |  | (a)
Deficiency of (loss) earnings to fixed charges (a) |  | $ | (132.3 | ) |  |  |  |  |  |  |  |  |  | $ | (89.6 | )
(a) Due to losses for the year ended September 30, 2010 and three month period ended December 31, 2014, the coverage ratio was less than 1:1. We would have needed to generate additional earnings of $132.3 million and $89.6 million, respectively, in each of these periods in order to achieve a ratio of 1:1.