Exhibit 12.1
Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends
Year Ended December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
(Dollars in thousands, except ratios) | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Pretax income excluding income or loss from equity investments | $ | 395,096 | $ | 156,210 | $ | 264,261 | $ | 6,864 | $ | 105,435 | ||||||||||
Adjustments: | ||||||||||||||||||||
Fixed charges | 99,562 | 103,251 | 87,402 | 85,044 | 68,825 | |||||||||||||||
Distributed income from equity investments | 2,167 | 1,672 | — | — | 17,678 | |||||||||||||||
Capitalized interest, net of amortization | (8,351 | ) | (16,849 | ) | (14,578 | ) | (4,248 | ) | (162 | ) | ||||||||||
Arch Western Resources, LLC dividends on preferred membership interest | (107 | ) | (85 | ) | (96 | ) | (96 | ) | (96 | ) | ||||||||||
Total earnings | $ | 488,367 | $ | 244,199 | $ | 336,989 | $ | 87,564 | $ | 191,680 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense | $ | 76,139 | $ | 74,865 | $ | 64,364 | $ | 72,409 | $ | 62,634 | ||||||||||
Capitalized interest | 11,703 | 17,967 | 14,807 | 4,248 | 162 | |||||||||||||||
Arch Western Resources, LLC dividends on preferred membership interest | 107 | 85 | 96 | 96 | 96 | |||||||||||||||
Portions of rent which represent an interest factor | 11,613 | 10,334 | 8,135 | 8,291 | 5,933 | |||||||||||||||
Total fixed charges | 99,562 | 103,251 | 87,402 | 85,044 | 68,825 | |||||||||||||||
Preferred stock dividends | 12 | 219 | 378 | 15,579 | 7,187 | |||||||||||||||
Total fixed charges and preferred stock dividends | $ | 99,574 | $ | 103,470 | $ | 87,780 | $ | 100,623 | $ | 76,012 | ||||||||||
Ratio of earnings to combined fixed charges and preference dividends | 4.90 | x | 2.36 | x | 3.84 | x | (a | ) | 2.52 | x |
(a) | Combined fixed charges and preference dividends exceeded earnings by $13.1 million for the year ended December 31, 2005. |