EX-12.1 2 paa-20150630ex121413ba9.htm EX-12.1 paa_EX12-1

Exhibit 12.1

 

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in millions, except ratio data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Ended

    

    

 

 

 

June 30,

 

Year Ended December 31,

 

 

 

2015

 

2014

 

2013

 

2012

 

2011

 

2010

 

EARNINGS (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

368

 

$

1,449

 

$

1,426

 

$

1,143

 

$

1,026

 

$

510

 

add: Fixed charges

 

 

267

 

 

457

 

 

424

 

 

380

 

 

328

 

 

321

 

add: Distributed income of equity investees

 

 

102

 

 

105

 

 

55

 

 

40

 

 

23

 

 

9

 

add: Amortization of capitalized interest

 

 

3

 

 

4

 

 

3

 

 

2

 

 

2

 

 

1

 

less: Capitalized interest

 

 

(27)

 

 

(48)

 

 

(38)

 

 

(36)

 

 

(25)

 

 

(16)

 

Total Earnings

 

$

713

 

$

1,967

 

$

1,870

 

$

1,529

 

$

1,354

 

$

825

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed and capitalized (2)

 

$

237

 

$

400

 

$

371

 

$

336

 

$

298

 

$

281

 

Amortization of debt expense

 

 

5

 

 

10

 

 

10

 

 

10

 

 

10

 

 

8

 

Portion of rent expense related to interest (33.33%)

 

 

25

 

 

47

 

 

43

 

 

34

 

 

20

 

 

32

 

Total Fixed Charges

 

$

267

 

$

457

 

$

424

 

$

380

 

$

328

 

$

321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES (3)

 

 

2.67

x

 

4.30

x

 

4.41

x

 

4.03

x

 

4.13

x

 

2.57

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 leases deemed to be the equivalent of interest.

 

(2)

Includes interest costs attributable to borrowings for hedged inventory purchases of $3 million for the six months ended June 30, 2015 and $12 million, $30 million, $12 million, $20 million and $17 million for the years ended December 31, 2014, 2013, 2012, 2011 and 2010, respectively.

 

(3)

Ratios may not recalculate due to rounding.