EX-12.01 6 vlo123110ex1201.htm EX-12.01 WebFilings | EDGAR view
 

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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2010
 
 
2009
 
 
2008
 
 
2007
 
 
2006
 
Ratio of Earnings to Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before
  income tax expense (benefit), minority interest
  in net income of consolidated subsidiaries,
  and income from equity investees
 
$
1,481
 
 
 
$
(334
)
 
 
$
268
 
 
 
$
6,202
 
 
 
$
7,206
 
 
Add:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
743
 
 
 
701
 
 
 
626
 
 
 
631
 
 
 
542
 
 
Amortization of capitalized interest
 
20
 
 
 
18
 
 
 
17
 
 
 
13
 
 
 
8
 
 
Distributions from equity investees
 
10
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
47
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest capitalized
 
(90
)
 
 
(105
)
 
 
(92
)
 
 
(101
)
 
 
(145
)
 
Total earnings
 
$
2,164
 
 
 
$
280
 
 
 
$
819
 
 
 
$
6,745
 
 
 
$
7,658
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
$
484
 
 
 
$
416
 
 
 
$
360
 
 
 
$
357
 
 
 
$
232
 
 
Interest capitalized
 
90
 
 
 
105
 
 
 
92
 
 
 
101
 
 
 
145
 
 
Rental expense interest factor (a)
 
169
 
 
 
180
 
 
 
174
 
 
 
173
 
 
 
165
 
 
Total fixed charges
 
$
743
 
 
 
$
701
 
 
 
$
626
 
 
 
$
631
 
 
 
$
542
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
2.9
 
x
 
(b)
 
 
 
1.3
 
x
 
10.7
 
x
 
14.1
 
x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
  and Preferred Stock Dividends:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total earnings
 
$
2,164
 
 
 
$
280
 
 
 
$
819
 
 
 
$
6,745
 
 
 
$
7,658
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges
 
$
743
 
 
 
$
701
 
 
 
$
626
 
 
 
$
631
 
 
 
$
542
 
 
Preferred stock dividends
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
3
 
 
Total fixed charges and preferred stock dividends
 
$
743
 
 
 
$
701
 
 
 
$
626
 
 
 
$
631
 
 
 
$
545
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
  and preferred stock dividends
 
2.9
 
x
 
(b)
 
 
 
1.3
 
x
 
10.7
 
x
 
14.1
 
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.