VALERO ENERGY CORPORATION AND SUBSIDIARIES
STATEMENTS OF COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES
AND RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Millions of Dollars)
Six Months Ended | Year Ended December 31, | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
June 30, 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 | $ | 1,339.2 | $ | 980.8 | $ | 191.5 | $ | 913.0 | $ | 530.4 | $ | 17.9 | |||||||||||
Add: | |||||||||||||||||||||||
Fixed charges | 201.6 | 395.5 | 408.9 | 143.2 | 114.6 | 80.2 | |||||||||||||||||
Amortization of capitalized interest | 3.4 | 6.2 | 5.7 | 5.3 | 5.1 | 5.2 | |||||||||||||||||
Distributions from equity investees | 19.7 | 26.5 | 4.8 | 2.8 | 9.2 | 4.0 | |||||||||||||||||
Less: | |||||||||||||||||||||||
Interest capitalized | (16.8 | ) | (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 | $ | 1,547.1 | $ | 1,363.5 | $ | 550.6 | $ | 1,040.3 | $ | 645.1 | $ | 101.5 | |||||||||||
Fixed charges: | |||||||||||||||||||||||
Interest expense, net | $ | 132.1 | $ | 261.3 | $ | 285.7 | $ | 88.5 | $ | 76.3 | $ | 55.4 | |||||||||||
Interest capitalized | 16.8 | 26.3 | 16.2 | 10.6 | 7.4 | 5.8 | |||||||||||||||||
Rental expense interest factor (1) | 52.7 | 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 | $ | 201.6 | $ | 395.5 | $ | 408.9 | $ | 143.2 | $ | 114.6 | $ | 80.2 | |||||||||||
Ratio of earnings to fixed charges | 7.7 | x | 3.4 | x | 1.3 | x | 7.3 | x | 5.6 | x | 1.3 | x | |||||||||||
Ratio of Earnings to Fixed Charges | |||||||||||||||||||||||
and Preferred Stock Dividends: | |||||||||||||||||||||||
Total earnings | $ | 1,547.1 | $ | 1,363.5 | $ | 550.6 | $ | 1,040.3 | $ | 645.1 | $ | 101.5 | |||||||||||
Total fixed charges | $ | 201.6 | $ | 395.5 | $ | 408.9 | $ | 143.2 | $ | 114.6 | $ | 80.2 | |||||||||||
Preferred stock dividends | 9.5 | 6.8 | - | - | - | - | |||||||||||||||||
Total fixed charges and | |||||||||||||||||||||||
preferred stock dividends | $ | 211.1 | $ | 402.3 | $ | 408.9 | $ | 143.2 | $ | 114.6 | $ | 80.2 | |||||||||||
Ratio of earnings to fixed charges | |||||||||||||||||||||||
and preferred stock dividends | 7.3 | 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.