EX-12.1 2 c17472exv12w1.htm COMPUTATION OF RATIO OF EARNINGS exv12w1
 

Exhibit 12.1
Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends
                 
    Six Months Ended June 30  
    2007     2006  
Earnings:
                
Pretax income
   $ 68,526     $ 161,304  
Fixed charges, net of capitalized interest
     39,337       34,827  
 
            
Earnings before taxes and fixed charges
   $ 107,863     $ 196,131  
 
            
Fixed charges:
                
Interest expense
   $ 35,991     $ 31,995  
Capitalized interest
     10,410       6,419  
Preferred dividends
     113       187  
Arch Western Resources LLC dividends on preferred membership interest
     48       48  
Portions of rent which represent an interest factor
     3,185       2,597  
 
            
Total fixed charges
   $ 49,747     $ 41,246  
 
            
Ratio of earnings to fixed charges (1)
     2.17x       4.76x  
 
            
 
(1)   Ratio of earnings to combined fixed charges and preference dividends is computed on a total enterprise basis including our consolidated subsidiaries. Earnings consist of income from continuing operations before income taxes and are adjusted to include 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. Preference dividends are the amount of pre-tax earnings required to pay dividends on our outstanding preferred stock and Arch Western Resources, LLC’s preferred membership interest.