EX-12.1 2 a09-11420_1ex12d1.htm EX-12.1

EXHIBIT 12.1

 

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in millions)

 

 

 

Three Months
Ended
March 31,

 

Year Ended December 31,

 

 

 

2009

 

2008

 

2007

 

2006

 

2005

 

2004

 

EARNINGS (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before taxes, noncontrolling interest and equity investments

 

$

210

 

$

430

 

$

350

 

$

278

 

$

216

 

$

130

 

add: Fixed charges

 

64

 

264

 

233

 

149

 

92

 

55

 

Distributed income of equity investees

 

2

 

10

 

2

 

1

 

1

 

—

 

Amortization of capitalized interest

 

—

 

1

 

—

 

—

 

—

 

—

 

less: Capitalized interest

 

(3

)

(17

)

(14

)

(6

)

(2

)

(1

)

Total Earnings

 

$

273

 

$

688

 

$

571

 

$

422

 

$

307

 

$

184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed and capitalized (2)

 

$

55

 

$

233

 

$

220

 

$

141

 

$

85

 

$

49

 

Amortization of debt expense

 

2

 

4

 

3

 

3

 

3

 

3

 

Portion of rent expense related to interest (33.33%)

 

7

 

27

 

10

 

5

 

4

 

3

 

Total Fixed Charges

 

$

64

 

$

264

 

$

233

 

$

149

 

$

92

 

$

55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES (3)

 

4.26

x

2.60

x

2.45

x

2.83

x

3.34

x

3.37

x

 

(1)             For purposes of computing the ratio of earnings to fixed charges, “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 operating leases deemed to be the equivalent of interest.

 

(2)             Includes interest costs attributable to borrowings for inventory stored in a contango market of $2 million for the three months ended March 31, 2009 and $21 million, $44 million, $49 million, $24 million and $2 million for each of the years ended December 31, 2008, 2007, 2006, and 2005, respectively.

 

(3)             Ratios may not recalculate due to rounding.