EX-12.1 2 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES dex121.htm


 
Exhibit 12.1



Exhibit 12.1

 

 
BNSF Railway Company and Subsidiaries
 
Computation of Ratio of Earnings to Fixed Charges
In millions, except ratio amounts
(Unaudited)
 

   
Year ended December 31,
 
   
2007
   
2006
   
2005
   
2004
   
2003
 
         
             (As Adjusted)a
   
              (As Adjusted)a
   
              (As Adjusted)a
   
              (As Adjusted)a
 
Earnings:
                             
Income before income taxes and cumulative effect of accounting
        change
  $ 3,580     $ 3,549     $ 2,856     $ 1,635     $ 1,568  
Add:
                                       
            Interest and other fixed charges, excluding capitalized interest
    87       113       127       128       144  
    Reasonable approximation of portion of rent under long-term  operating leases representative of an interest factor
    282       261       221       195       182  
   Distributed income of investees accounted for under the equity method
    4       3       4       3       3  
           Amortization of capitalized interest
    4       4       8       8       8  
 Less:
                                       
   Equity in earnings of investments
   accounted for under the equity method
    19       27       15       9       14  
Total earnings available for fixed charges
  $ 3,938     $ 3,903     $ 3,201     $ 1,960     $ 1,891  
Fixed charges:
                                       
 Interest and fixed charges
  $ 104     $ 127     $ 140     $ 138     $ 153  
      Reasonable approximation of portion of rent under long-term
            operating leases representative of an interest factor
    282       261       221       195       182  
Total fixed charges
  $ 386     $ 388     $ 361     $ 333     $ 335  
Ratio of earnings to fixed charges
    10.20 x     10.06 x     8.87 x     5.89 x     5.64 x
   a
Prior year numbers have been adjusted for the retrospective adoption of Financial Accounting Standards Board (FASB) Staff Position (FSP)
 
AUG AIR-1, Accounting for Planned Major Maintenance Activities. See Note 2 to the Consolidated Financial Statements for additional information.