EX-12.1 4 h77872exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
Enterprise Products Partners L.P.
Computation of Ratio of Earnings to Fixed Charges
(Dollars in millions)
                                                 
                                            Nine  
                                            Months Ended  
    Year Ended December 31,     September 30,  
    2005     2006     2007     2008     2009     2010  
         
Consolidated income
  $ 577.4     $ 787.6     $ 838.0     $ 1,188.9     $ 1,155.1     $ 1,153.0  
Add: Provision for taxes
    8.3       22.0       15.7       31.0       25.3       20.1  
Less: Equity in earnings from unconsolidated affiliates
    (34.6 )     (25.2 )     (10.5 )     (34.9 )     (51.2 )     (50.2 )
         
Consolidated pre-tax income before equity in earnings from unconsolidated affiliates
    551.1       784.4       843.2       1,185.0       1,129.2       1,122.9  
Add: Fixed charges
    360.8       412.2       520.0       650.3       715.1       547.3  
Amortization of capitalized interest
    2.0       9.8       11.6       13.4       15.3       12.4  
Distributed income of equity investees
    93.1       76.5       87.0       80.8       86.6       82.3  
         
Subtotal
    1,007.0       1,282.9       1,461.8       1,929.5       1,946.2       1,764.9  
Less: Capitalized interest
    (28.8 )     (66.4 )     (86.5 )     (90.7 )     (53.1 )     (33.5 )
Net income attributable to noncontrolling interest
    (4.5 )     (4.0 )     (14.8 )     (23.0 )     (26.4 )     (19.3 )
         
Total earnings
  $ 973.7     $ 1,212.5     $ 1,360.5     $ 1,815.8     $ 1,866.7     $ 1,712.1  
         
Fixed charges:
                                               
Interest expense
  $ 312.4     $ 324.2     $ 413.0     $ 540.7     $ 641.8     $ 496.9  
Capitalized interest
    28.8       66.4       86.5       90.7       53.1       33.5  
Interest portion of rental expense
    19.6       21.6       20.5       18.9       20.2       16.9  
         
Total
  $ 360.8     $ 412.2     $ 520.0     $ 650.3     $ 715.1     $ 547.3  
         
Ratio of earnings to fixed charges
    2.7x       2.9x       2.6x       2.8x       2.6x       3.1x  
         
     These computations take into account our consolidated operations and the distributed income from our equity method investees. For purposes of these calculations, “earnings” is the amount resulting from adding and subtracting the following items:
     Add the following, as applicable:
    consolidated pre-tax income from continuing operations before adjustment for income or loss from equity investees;
 
    fixed charges;
 
    amortization of capitalized interest;
 
    distributed income of equity investees; and
 
    our share of pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges.
     From the subtotal of the added items, subtract the following, as applicable:
    interest capitalized;
 
    preference security dividend requirements of consolidated subsidiaries; and
 
    the noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges.
     The term “fixed charges” means the sum of the following: interest expensed and capitalized; amortized premiums, discounts and capitalized expenses related to indebtedness; an estimate of interest within rental expense; and preference dividend requirements of consolidated subsidiaries.