EX-12.01 15 vlo123111ex1201.htm EXHIBIT 12.01 2011 EX 12.01


Exhibit 12.01
VALERO ENERGY CORPORATION AND SUBSIDIARIES
STATEMENTS OF COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2011
 
 
2010
 
 
2009
 
 
2008
 
 
2007
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before
  income tax expense (benefit), excluding income
  from equity investee
 
$
3,322

 
 
$
1,481

 
 
$
(334
)
 
 
$
268

 
 
$
6,202

 
Add:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
735

 
 
743

 
 
701

 
 
626

 
 
631

 
Amortization of capitalized interest
 
23

 
 
20

 
 
18

 
 
17

 
 
13

 
Distributions from equity investee
 
—

 
 
10

 
 
—

 
 
—

 
 
—

 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest capitalized
 
(152
)
 
 
(90
)
 
 
(105
)
 
 
(92
)
 
 
(101
)
 
Total earnings
 
$
3,928

 
 
$
2,164

 
 
$
280

 
 
$
819

 
 
$
6,745

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
$
401

 
 
$
484

 
 
$
416

 
 
$
360

 
 
$
357

 
Interest capitalized
 
152

 
 
90

 
 
105

 
 
92

 
 
101

 
Rental expense interest factor (a)
 
182

 
 
169

 
 
180

 
 
174

 
 
173

 
Total fixed charges
 
$
735

 
 
$
743

 
 
$
701

 
 
$
626

 
 
$
631

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
5.3

x
 
2.9

x
 
(b)

 
 
1.3

x
 
10.7

x

(a)
The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.
(b)
For the year ended December 31, 2009, earnings were insufficient to cover fixed charges by $421 million. The deficiency included the effect of a $222 million pre-tax impairment loss resulting from the permanent cancellation of certain capital projects classified as “construction in progress” as a result of the unfavorable impact of the economic slowdown on refining industry fundamentals during the year. The deficiency was also partially attributable to a $120 million loss contingency accrual related to our dispute of a turnover tax on export sales in Aruba.