EX-12.1 4 a2236708zex-12_1.htm EX-12.1

Exhibit 12.1

 

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED UNIT DISTRIBUTIONS
(in millions, except ratio data)

 

 

 

Six Months
Ended
June 30,

 

Year Ended December 31,

 

 

 

2018

 

2017

 

2016

 

2015

 

2014

 

2013

 

EARNINGS (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income from continuing operations before noncontrolling interests and income from equity investees

 

$

262

 

$

612

 

$

560

 

$

823

 

$

1,449

 

$

1,426

 

add: Fixed charges

 

262

 

613

 

588

 

548

 

457

 

424

 

add: Distributed income of equity investees

 

206

 

304

 

216

 

214

 

105

 

55

 

add: Amortization of capitalized interest

 

5

 

8

 

7

 

6

 

4

 

3

 

less: Capitalized interest

 

(13

)

(35

)

(47

)

(57

)

(48

)

(38

)

Total Earnings

 

$

722

 

$

1,502

 

$

1,324

 

$

1,534

 

$

1,967

 

$

1,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed and capitalized

 

$

230

 

$

545

 

$

524

 

$

495

 

$

410

 

$

381

 

Portion of rent expense related to interest (33.33%)

 

32

 

68

 

64

 

53

 

47

 

43

 

Total Fixed Charges

 

$

262

 

$

613

 

$

588

 

$

548

 

$

457

 

$

424

 

Series A preferred unit distributions (2)(3)

 

74

 

142

 

122

 

—

 

—

 

—

 

Series B preferred unit distributions (2)(4)

 

25

 

11

 

—

 

—

 

—

 

—

 

Total Combined Fixed Charges and Preferred Unit Distributions

 

$

361

 

$

766

 

$

710

 

$

548

 

$

457

 

$

424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES (5)

 

2.76x

 

2.45x

 

2.25x

 

2.80x

 

4.30x

 

4.41x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED UNIT DISTRIBUTIONS (2)(5)

 

2.00x

 

1.96x

 

1.86x

 

 

 

 

 

 

 

 

(1)         For purposes of computing the ratio of earnings to fixed charges and the ratio of earnings to combined fixed charges and preferred unit distributions, “earnings” consists of pre-tax income from continuing operations before income from equity investees plus fixed charges (excluding capitalized interest), distributed income of equity investees and amortization of capitalized interest. “Fixed charges” represents interest incurred (whether expensed or capitalized), amortization of debt expense (including discounts and premiums relating to indebtedness) and the portion of rental expense on leases deemed to be the equivalent of interest.

(2)         As no preferred units were outstanding for any of the years ended December 31, 2015, 2014 and 2013, no historical ratio of earnings to combined fixed charges and preferred unit distributions is presented for those years.

(3)         Distributions on our Series A convertible preferred units (the “Series A preferred units”) were paid in additional Series A preferred units for the years ended December 31, 2017 and 2016. We issued 5,413,842 and 4,646,499 additional Series A preferred units in lieu of cash distributions of $142 million and $122 million for the distributions pertaining to the years ended December 31, 2017 and 2016, respectively. Beginning with the distribution pertaining to the quarter ended March 31, 2018, distributions on our Series A preferred units will be paid in cash.

(4)         Distributions on our Series B perpetual preferred units accrue and are cumulative at a rate of 6.125% per year from October 10, 2017, the date of original issue, and are payable in cash semiannually.

(5)         Ratios may not recalculate due to rounding.