EX-12.2 9 h04315exv12w2.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.2 ENTERPRISE PRODUCTS OPERATING L.P. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS)
FOR THE YEAR ENDED DECEMBER 31, ------------------------------------------------------------------------ 2002 2001 2000 1999 1998 ------------------------------------------------------------------------ Consolidated income $ 96,952 $244,718 $223,068 $121,730 $ 10,057 Add: Minority interest 2,137 144 113 110 122 Provision for taxes 1,634 Less: Equity in income of unconsolidated affiliates (35,253) (25,358) (24,119) (13,477) (15,671) ------------------------------------------------------------------------ Consolidated pre-tax income before minority interest and equity in income of unconsolidated affiliates 65,470 219,504 199,062 108,363 (5,492) Add: Fixed charges 111,141 63,172 42,706 23,325 21,404 Amortization of capitalized interest 363 217 167 112 93 Distributed income of equity investees 57,662 45,054 37,267 6,008 9,117 Less: Interest capitalized (1,083) (2,946) (3,277) (153) (180) Minority interest (2,137) (144) (113) (110) (122) ------------------------------------------------------------------------ Total Earnings $231,416 $324,857 $275,812 $137,545 $ 24,820 ======================================================================== Fixed charges: Interest expense $101,580 $ 52,456 $ 33,329 $ 16,439 $ 15,057 Capitalized interest 1,083 2,946 3,277 153 180 Interest portion of rental expense 8,478 7,770 6,100 6,733 6,167 ------------------------------------------------------------------------ Total $111,141 $ 63,172 $ 42,706 $ 23,325 $ 21,404 ======================================================================== RATIO OF EARNINGS TO FIXED CHARGES 2.08x 5.14x 6.46x 5.90x 1.16x ========================================================================
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 before minority interest and 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 total of the added items, subtract the following, as applicable: interest capitalized; preference security dividend requirements of consolidated subsidiaries; and minority 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 expenses (equal to one-third of rental expense); and preference security dividend requirements of consolidated subsidiaries.