EX-12.01 2 ns3q1310-qex1201.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES NS 3Q13 10-Q EX12.01


 
Exhibit 12.01
NUSTAR ENERGY L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars, Except Ratio)
 
 
Nine Months
 
 
 
Ended
 
 
 
 
 
 
 
 
 
 
 
September 30,
 
Years Ended December 31,
 
2013
 
2012
 
2011 (d)
 
2010
 
2009
 
2008
Earnings:
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income tax expense, minority interest in net income of consolidated subsidiaries, and income from equity investees
$
114,316

 
$
(146,260
)
 
$
216,742

 
$
240,211

 
$
225,791

 
$
256,994

Add:
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
111,039

 
128,067

 
113,220

 
103,390

 
102,781

 
113,959

Amortization of capitalized interest
897

 
1,012

 
793

 
642

 
553

 
440

Distributions from joint ventures
5,787

 
6,364

 
14,374

 
9,625

 
9,700

 
2,835

Less: Interest capitalized
(3,299
)
 
(7,737
)
 
(5,388
)
 
(3,701
)
 
(1,650
)
 
(5,108
)
Total earnings
$
228,740

 
$
(18,554
)
 
$
339,741

 
$
350,167

 
$
337,175

 
$
369,120

Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Interest expense (a)
$
92,090

 
$
93,371

 
$
82,758

 
$
77,343

 
$
78,622

 
$
92,971

Amortization of debt issuance
costs
2,002

 
2,313

 
1,738

 
1,118

 
910

 
815

Interest capitalized
3,299

 
7,737

 
5,388

 
3,701

 
1,650

 
5,108

Rental expense interest factor (b)
13,648

 
24,646

 
23,336

 
21,228

 
21,599

 
15,065

Total fixed charges
$
111,039

 
$
128,067

 
$
113,220

 
$
103,390

 
$
102,781

 
$
113,959

Ratio of earnings to fixed charges
2.1x

 
(c)

 
3.0x

 
3.4x

 
3.3x

 
3.2x


 
(a)
The “Interest expense, net” reported in NuStar Energy L.P.’s consolidated statement of comprehensive income for includes investment income for the nine months ended September 30, 2013 of $0.5 million and for years ended December 31, 2012, 2011 and 2010 of $0.9 million, $0.8 million and $0.2 million, respectively.
(b)
The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.
(c)
For the year ended December 31, 2012, earnings were insufficient to cover fixed charges by $146.6 million. The deficiency included the effect of $271.8 million of impairment losses mainly resulting from the write-down of the carrying value of our long-lived assets related to our asphalt operations, including fixed assets, goodwill, intangible assets and other long-term assets.

(d)
Revised for discontinued operations in pre-tax income of subsidiaries that have not incurred fixed charges.