EX-12.1 2 a12-7002_1ex12d1.htm EX-12.1

EXHIBIT 12.1

 

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in millions)

 

 

 

Three Months

 

 

 

 

 

 

 

 

 

 

 

 

 

Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

Year Ended December 31,

 

 

 

2012

 

2011

 

2010

 

2009

 

2008

 

2007

 

EARNINGS (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income from continuing operations before
noncontrolling interest and income from equity investees

 

$

250

 

$

1,026

 

$

510

 

$

572

 

$

430

 

$

350

 

add: Fixed charges

 

85

 

328

 

321

 

283

 

264

 

233

 

add: Distributed income of equity investees

 

7

 

23

 

9

 

7

 

10

 

2

 

add: Amortization of capitalized interest

 

1

 

2

 

1

 

1

 

1

 

—

 

less: Capitalized interest

 

(9

)

(25

)

(16

)

(12

)

(17

)

(14

)

Total Earnings

 

$

334

 

$

1,354

 

$

825

 

$

851

 

$

688

 

$

571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed and capitalized (2)

 

$

76

 

$

298

 

$

281

 

$

247

 

$

233

 

$

220

 

Amortization of debt expense

 

3

 

10

 

8

 

7

 

4

 

3

 

Portion of rent expense related to interest (33.33%)

 

6

 

20

 

32

 

29

 

27

 

10

 

Total Fixed Charges

 

$

85

 

$

328

 

$

321

 

$

283

 

$

264

 

$

233

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES (3)

 

3.93

x

4.13

x

2.57

x

3.00

x

2.60

x

2.45

x

 

(1)              For purposes of computing the ratio of earnings to fixed charges, “earnings” consists of pre-tax income from continuing operations before income from equity investees plus fixed charges (excluding capitalized interest), distributed income of equity investees and amortization of capitalized interest. “Fixed charges” represents interest incurred (whether expensed or capitalized), amortization of debt expense (including discounts and premiums relating to indebtedness) and the portion of rental expense on leases deemed to be the equivalent of interest.

 

(2)              Includes interest costs attributable to borrowings for inventory stored in a contango market of $2 million for the three months ended March 31, 2012 and $20 million, $17 million, $11 million, $21 million and $44 million for each of the years ended December 31, 2011, 2010, 2009, 2008 and 2007, respectively.

 

(3)              Ratios may not recalculate due to rounding.