Exhibit 12.1
Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends
Nine Months Ended September 30 | ||||||||
2008 | 2007 | |||||||
Earnings: | ||||||||
Pretax income excluding income or loss from equity investments | $ | 317,831 | $ | 101,658 | ||||
Adjustments: | ||||||||
Fixed charges | 66,814 | 71,446 | ||||||
Distributed income from equity investments | 2,167 | 1,185 | ||||||
Capitalized interest, net of amortization | (5,835 | ) | (16,299 | ) | ||||
Arch Western Resources, LLC dividends on preferred membership interest | (78 | ) | (78 | ) | ||||
Total earnings | $ | 380,899 | $ | 157,912 | ||||
Fixed charges: | ||||||||
Interest expense | 56,228 | $ | 53,142 | |||||
Capitalized interest | 8,662 | 16,622 | ||||||
Arch Western Resources, LLC dividends on preferred membership interest | 78 | 78 | ||||||
Portions of rent which represent an interest factor | 1,846 | 1,604 | ||||||
Total fixed charges | $ | 66,814 | $ | 71,446 | ||||
Preferred stock dividends | 11 | 166 | ||||||
Total fixed charges and preferred stock dividends | $ | 66,825 | $ | 71,612 | ||||
Ratio of earnings to combined fixed charges and preference dividends | 5.70x | 2.21x | ||||||