Exhibit 12.1
Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends
Year Ended December 31 | ||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
(Dollars in thousands, except ratios) | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Pretax income excluding income or loss from equity investments | $ | 23,020 | $ | 395,977 | $ | 157,224 | $ | 265,688 | $ | 7,509 | ||||||||||
Adjustments: | ||||||||||||||||||||
Fixed charges | 118,075 | 99,562 | 103,251 | 87,402 | 85,044 | |||||||||||||||
Distributed income from equity investments | 5,164 | 2,167 | 1,672 | — | — | |||||||||||||||
Capitalized interest, net of amortization | 3,143 | (8,351 | ) | (16,849 | ) | (14,578 | ) | (4,248 | ) | |||||||||||
Arch Western Resources, LLC dividends on preferred membership interest | (58 | ) | (107 | ) | (85 | ) | (99 | ) | (96 | ) | ||||||||||
Total earnings | $ | 149,344 | $ | 489,248 | $ | 245,213 | $ | 338,416 | $ | 88,209 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense | $ | 105,932 | $ | 76,139 | $ | 74,865 | $ | 64,364 | $ | 72,409 | ||||||||||
Capitalized interest | 824 | 11,703 | 17,967 | 14,807 | 4,248 | |||||||||||||||
Arch Western Resources LLC dividends on preferred membership interest | 58 | 107 | 85 | 99 | 96 | |||||||||||||||
Portions of rent which represent an interest factor | 11,261 | 11,613 | 10,334 | 8,135 | 8,291 | |||||||||||||||
Total fixed charges | 118,075 | 99,562 | 103,251 | 87,405 | 85,044 | |||||||||||||||
Preferred dividends | — | 12 | 219 | 378 | 15,579 | |||||||||||||||
Total fixed charges and preferred dividends | $ | 118,075 | $ | 99,574 | $ | 103,470 | $ | 87,783 | $ | 100,623 | ||||||||||
Ratio of earnings to fixed charges | 1.26 | x | 4.91 | x | 2.37 | x | 3.86 | x | (a) |
(a) | Combined fixed charges and preference dividends exceeded earnings by $12.4 million for the year ended December 31, 2005. |