EX-12.1 7 h03809exv12w1.txt STATEMENT RE COMPUTATION OF RATIO EXHIBIT 12.1 VALERO L.P. STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (IN THOUSANDS, EXCEPT RATIO)
YEARS ENDED DECEMBER 31, ------------------------ 2002 2001 2000 1999 1998 ---- ---- ---- ---- ---- Earnings: Income from continuing operations before provision for income taxes and income from equity investees $ 52,350 $ 42,694 $ 35,968 $ 65,445 $ 54,910 Add: Fixed charges 5,492 4,203 5,266 997 1,001 Amortization of capitalized interest 48 39 34 32 28 Distributions from Skelly-Belvieu Pipeline Company 3,590 2,874 4,658 4,238 3,692 Less: Interest capitalized (255) (298) - (115) (121) -------- -------- -------- -------- --------- Total earnings $ 61,225 $ 49,512 $ 45,926 $ 70,597 $ 59,510 ======== ======== ======== ======== ======== Fixed charges: Interest expense (1) $ 4,968 $ 3,721 $ 5,181 $ 777 $ 796 Amortization of debt issuance costs 160 90 - - - Interest capitalized 255 298 - 115 121 Rental expense interest factor (2) 109 94 85 105 84 -------- -------- -------- -------- --------- Total fixed charges $ 5,492 $ 4,203 $ 5,266 $ 997 $ 1,001 ======= ======= ======= ====== ======= Ratio of earnings to fixed charges 11.2 x 11.8x 8.7x 70.8x 59.5x ======== ======== ======== ======== ========
(1) The interest expense, net reported in the Partnership's consolidated statements of income for the years ended December 31, 2002 and 2001 includes interest income of $248,000 and $69,000, respectively. (2) The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.