EX-12.01 2 d51166exv12w01.htm SATEMENTS OF COMPUTATIONS OF RATIO OF EARNINGS TO FIXED CHARGES exv12w01
 

Exhibit 12.01
VALERO ENERGY CORPORATION AND SUBSIDIARIES
STATEMENTS OF COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED
CHARGES AND RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS
(Millions of Dollars)
                                                 
    Nine    
    Months    
    Ended    
    September 30,   Year Ended December 31,
    2007   2006 (1)   2005 (1)   2004   2003   2002
Ratio of Earnings to Fixed Charges:
                                                
Earnings:
                                                
Income from continuing operations before income tax expense, minority interest in net income of consolidated subsidiaries, distributions on preferred securities of subsidiary trusts, and income from equity investees
   $ 5,945     $ 7,872     $ 5,013     $ 2,726     $ 981     $ 191  
Add:
                                                
Fixed charges
     492       566       474       410       396       409  
Amortization of capitalized interest
     11       9       8       7       6       6  
Distributions from equity investees
     —       47       50       42       26       5  
Less:
                                                
Interest capitalized
     (83 )     (165 )     (65 )     (37 )     (26 )     (16 )
Distributions on preferred securities of
subsidiary trusts
     —       —       —       —       (17 )     (30 )
Minority interest in net income of NuStar
Energy L.P.
     —       —       —       —       (2 )     (14 )
 
                                                
Total earnings
   $ 6,365     $ 8,329     $ 5,480     $ 3,148     $ 1,364     $ 551  
 
                                                
Fixed charges:
                                                
Interest expense, net
   $ 264     $ 212     $ 269     $ 260     $ 261     $ 286  
Interest capitalized
     83       165       65       37       26       16  
Rental expense interest factor (2)
     145       189       140       113       92       77  
Distributions on preferred securities
of subsidiary trusts
     —       —       —       —       17       30  
 
                                                
Total fixed charges
   $ 492     $ 566     $ 474     $ 410     $ 396     $ 409  
 
                                                
 
Ratio of earnings to fixed charges
     12.9x       14.7x       11.6x       7.7x       3.4x       1.3x  
 
                                                
Ratio of Earnings to Fixed Charges and
Preferred Stock Dividends:
                                                
Total earnings
   $ 6,365     $ 8,329     $ 5,480     $ 3,148     $ 1,364     $ 551  
 
                                                
 
Total fixed charges
   $ 492     $ 566     $ 474     $ 410     $ 396     $ 409  
Preferred stock dividends
     —       3       20       19       7       —  
 
                                                
Total fixed charges and preferred stock
dividends
   $ 492     $ 569     $ 494     $ 429     $ 403     $ 409  
 
                                                
 
Ratio of earnings to fixed charges and preferred
stock dividends
     12.9x       14.6x       11.1x       7.3x       3.4x       1.3x  
 
                                                
(1)  
Amounts for 2006 and 2005 have been restated due to the presentation of the operations of the Lima Refinery as discontinued operations in the consolidated statements of income.
 
(2)  
The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.