EX-12.1 2 c59153exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends
                 
    Six Months Ended June 30  
    2010     2009  
Earnings:
                
Pretax income excluding income or loss from equity investments
   $ 65,309     $ 9,873  
Adjustments:
                
Fixed charges
     75,491       46,962  
Distributed income from equity investments
     4,832       2,578  
Capitalized interest, net of amortization
     2,150       1,589  
Arch Western Resources, LLC dividends on preferred membership interest
     (52 )     (38 )
 
            
Total earnings
   $ 147,730     $ 60,964  
 
            
Fixed charges:
                
Interest expense
   $ 70,208     $ 40,675  
Capitalized interest
     —       422  
Arch Western Resources, LLC dividends on preferred membership interest
     52       38  
Portions of rent which represent an interest factor
     5,231       5,827  
 
            
Total fixed charges
   $ 75,491     $ 46,962  
Total fixed charges and preferred stock dividends
   $ 75,491     $ 46,962  
 
            
Ratio of earnings to combined fixed charges and preference dividends
    1.96 x     1.30 x
 
            
Earnings consist of income from operations before income taxes and are adjusted to include only distributed income from affiliates accounted for on the equity method and fixed charges (excluding capitalized interest). Fixed charges consist of interest incurred on indebtedness, the portion of operating lease rentals deemed representative of the interest factor and the amortization of debt expense.