EX-12.1 4 ex121ratioofearningstofixe.htm EXHIBIT 12.1 Ex 12.1 Ratio of Earnings to Fixed Charges CEQP K Q4 14
Exhibit 12.1


CRESTWOOD EQUITY PARTNERS LP
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except for ratio)

 
For the Years Ended December 31,
 
2014
 
2013
 
2012
 
2011
 
2010
Earnings:
 
 
 
 
 
 
 
 
 
Pre-tax (loss) income from continuing operations before adjustment for non-controlling interest and equity earnings (including amortization of excess cost of equity investment) per statements of income
$
(9.3
)
 
$
(49.6
)
 
$
25.6

 
$
43.4

 
$
29.8

Add:
 
 
 
 
 
 
 
 
 
     Fixed charges
148.7

 
86.7

 
38.4

 
30.3

 
13.7

     Amortized capitalized interest
0.2

 
0.1

 
0.1

 
0.1

 
0.1

Less:
 
 
 
 
 
 
 
 
 
     Capitalized interest
(7.7
)
 
(3.4
)
 
(0.2
)
 
(0.2
)
 
—

Non-controlling interest in pre-tax income of subsidiary with no fixed charges(1)
(16.8
)
 
(4.9
)
 
—

 
—

 
—

     Total earnings available for fixed charges
$
115.1

 
$
28.9

 
$
63.9

 
$
73.6

 
$
43.6

 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
   Interest and debt expense
134.8

 
81.3

 
36.0

 
27.8

 
13.5

   Interest component of rent
13.9

 
5.4

 
2.4

 
2.5

 
0.2

   Total fixed charges
$
148.7

 
$
86.7

 
$
38.4

 
$
30.3

 
$
13.7

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges(2)
—

(3 
) 
—

(3 
) 
1.7

 
2.4

 
3.2


(1)
Dividend requirement of preferred securities issued by our consolidated subsidiary was paid in units and therefore were not considered a fixed charge for purposes of this computation.
(2)
For purposes of computing the ratio of earnings to fixed charges, "earnings" consists of pretax income from continuing operations before adjustment for non-controlling interest and income from equity investee plus fixed charges (excluding capitalized interest) and amortized capitalized interest. "Fixed charges" represents interest incurred (whether expensed or capitalized), amortization of debt costs and that portion of rental expense on operating leases deemed to be the equivalent of interest.
(3)
Earnings for the years ended December 31, 2014 and 2013 were inadequate to cover fixed charges.