Exhibit 12.1
VALERO ENERGY CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
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STATEMENTS OF COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES | ||||||||||||||||||||
AND RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS | ||||||||||||||||||||
(Millions of Dollars, Except Ratios) | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
Three Months Ended March 31, 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||
Ratio of Earnings to Fixed Charges: | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations | ||||||||||||||||||||
before income tax expense, | ||||||||||||||||||||
minority interest in net income of | ||||||||||||||||||||
Valero L.P., distributions on preferred | ||||||||||||||||||||
securities of subsidiary trusts and | ||||||||||||||||||||
income from equity investees | $ | 376.5 | $ | 980.8 | $ | 191.5 | $ | 913.0 | $ | 530.4 | $ | 17.9 | ||||||||
Add: | ||||||||||||||||||||
Fixed charges | 97.7 | 395.5 | 408.9 | 143.2 | 114.6 | 80.2 | ||||||||||||||
Amortization of capitalized interest | 1.6 | 6.2 | 5.7 | 5.3 | 5.1 | 5.2 | ||||||||||||||
Distributions from equity investees | 9.7 | 26.5 | 4.8 | 2.8 | 9.2 | 4.0 | ||||||||||||||
Less: | ||||||||||||||||||||
Interest capitalized | (9.3 | ) | (26.3 | ) | (16.2 | ) | (10.6 | ) | (7.4 | ) | (5.8 | ) | ||||||||
Distributions on preferred securities | ||||||||||||||||||||
of subsidiary trusts | - | (16.8 | ) | (30.0 | ) | (13.4 | ) | (6.8 | ) | - | ||||||||||
Minority interest in net income of | ||||||||||||||||||||
Valero L.P. | - | (2.4 | ) | (14.1 | ) | - | - | - | ||||||||||||
Total earnings | $ | 476.2 | $ | 1,363.5 | $ | 550.6 | $ | 1,040.3 | $ | 645.1 | $ | 101.5 | ||||||||
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Fixed charges: | ||||||||||||||||||||
Interest expense, net | $ | 61.8 | $ | 261.3 | $ | 285.7 | $ | 88.5 | $ | 76.3 | $ | 55.4 | ||||||||
Interest capitalized | 9.3 | 26.3 | 16.2 | 10.6 | 7.4 | 5.8 | ||||||||||||||
Rental expense interest factor (1) | 26.6 | 91.1 | 77.0 | 30.7 | 24.1 | 19.0 | ||||||||||||||
Distributions on preferred securities | ||||||||||||||||||||
of subsidiary trusts | - | 16.8 | 30.0 | 13.4 | 6.8 | - | ||||||||||||||
Total fixed charges | $ | 97.7 | �� | $ | 395.5 | $ | 408.9 | $ | 143.2 | $ | 114.6 | $ | 80.2 | |||||||
Ratio of earnings to fixed charges | 4.9 | x | 3.4 | x | 1.3 | x | 7.3 | x | 5.6 | x | 1.3 | x | ||||||||
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Ratio of Earnings to Fixed Charges | ||||||||||||||||||||
and Preferred Stock Dividends: | ||||||||||||||||||||
Total earnings | $ | 476.2 | $ | 1,363.5 | $ | 550.6 | $ | 1,040.3 | $ | 645.1 | $ | 101.5 | ||||||||
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Total fixed charges | $ | 97.7 | $ | 395.5 | $ | 408.9 | $ | 143.2 | $ | 114.6 | $ | 80.2 | ||||||||
Preferred stock dividends | 4.8 | 6.8 | - | - | - | - | ||||||||||||||
Total fixed charges and | ||||||||||||||||||||
preferred stock dividends | $ | 102.5 | $ | 402.3 | $ | 408.9 | $ | 143.2 | $ | 114.6 | $ | 80.2 | ||||||||
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Ratio of earnings to fixed charges | ||||||||||||||||||||
and preferred stock dividends | 4.6 | x | 3.4 | x | 1.3 | x | 7.3 | x | 5.6 | x | 1.3 | x | ||||||||
(1) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |