EX-12 2 f10q033103ex12-1.txt Exhibit 12.1 VALERO ENERGY CORPORATION AND SUBSIDIARIES STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Millions of Dollars, Except Ratios)
Three Months Year Ended December 31, Ended ---------------------------------------------------- March 31, 2003 2002 2001 2000 1999 -------------- ---- ---- ---- ---- Earnings: Income from continuing operations before income tax expense, minority interest in net income of Valero L.P., distributions on preferred securities of subsidiary trusts and income from equity investees............. $ 283.7 $ 191.5 $ 913.0 $ 530.4 $ 17.9 Add: Fixed charges............................. 108.6 408.9 143.2 114.6 80.2 Amortization of capitalized interest...... 1.5 5.7 5.3 5.1 5.2 Distributions from equity investees....... 1.0 4.8 2.8 9.2 4.0 Less: Interest capitalized...................... (3.9) (16.2) (10.6) (7.4) (5.8) Distributions on preferred securities of subsidiary trusts.................... (7.5) (30.0) (13.4) (6.8) - Minority interest in net income of Valero L.P.............................. (2.4) (14.1) - - - ---- ----- ------- ----- ----- Total earnings............................... $ 381.0 $ 550.6 $ 1,040.3 $ 645.1 $ 101.5 ===== ===== ======= ===== ===== Fixed charges: Interest expense, net..................... $ 75.1 $ 285.7 $ 88.5 $ 76.3 $ 55.4 Interest capitalized...................... 3.9 16.2 10.6 7.4 5.8 Rental expense interest factor (1)........ 22.1 77.0 30.7 24.1 19.0 Distributions on preferred securities of subsidiary trusts.................... 7.5 30.0 13.4 6.8 - ---- ----- ---- ---- ---- Total fixed charges.......................... $ 108.6 $ 408.9 $ 143.2 $ 114.6 $ 80.2 ===== ===== ===== ===== ==== Ratio of earnings to fixed charges (2)....... 3.5x 1.3x 7.3x 5.6x 1.3x === === === === ===
(1) The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. (2) Valero paid no dividends on preferred stock with respect to its continuing operations during the periods indicated; therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.