Exhibit 12.1
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED UNIT DISTRIBUTIONS
(in millions, except ratio data)
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | Nine Months Ended
September 30, | | Year Ended December 31, |
| | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 |
EARNINGS (1) | |
| | |
| | |
| | |
| | |
| | |
|
| Pre-tax income from continuing operations before noncontrolling interests and income from equity investees | $ | 496 |
| | $ | 560 |
| | $ | 823 |
| | $ | 1,449 |
| | $ | 1,426 |
| | $ | 1,143 |
|
| add: Fixed charges | 465 |
| | 588 |
| | 548 |
| | 457 |
| | 424 |
| | 380 |
|
| add: Distributed income of equity investees | 222 |
| | 216 |
| | 214 |
| | 105 |
| | 55 |
| | 40 |
|
| add: Amortization of capitalized interest | 6 |
| | 7 |
| | 6 |
| | 4 |
| | 3 |
| | 2 |
|
| less: Capitalized interest | (26 | ) | | (47 | ) | | (57 | ) | | (48 | ) | | (38 | ) | | (36 | ) |
| Total Earnings | $ | 1,163 |
| | $ | 1,324 |
| | $ | 1,534 |
| | $ | 1,967 |
| | $ | 1,870 |
| | $ | 1,529 |
|
| | | | | | | | | | | | |
FIXED CHARGES (1) | |
| | |
| | |
| | |
| | |
| | |
|
| Interest expensed and capitalized | $ | 416 |
| | $ | 524 |
| | $ | 495 |
| | $ | 410 |
| | $ | 381 |
| | $ | 346 |
|
| Portion of rent expense related to interest (33.33%) | 49 |
| | 64 |
| | 53 |
| | 47 |
| | 43 |
| | 34 |
|
| Total Fixed Charges | $ | 465 |
| | $ | 588 |
| | $ | 548 |
| | $ | 457 |
| | $ | 424 |
| | $ | 380 |
|
Preferred unit distributions (2)(3) | 105 |
| | 122 |
| | — |
| | — |
| | — |
| | — |
|
| Total Combined Fixed Charges and Preferred Unit Distributions | $ | 570 |
| | $ | 710 |
| | $ | 548 |
| | $ | 457 |
| | $ | 424 |
| | $ | 380 |
|
| | | | | | | | | | | | |
RATIO OF EARNINGS TO FIXED CHARGES (4) | 2.50x |
| | 2.25x |
| | 2.80x |
| | 4.30x |
| | 4.41x |
| | 4.03x |
|
| | | | | | | | | | | | |
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED UNIT DISTRIBUTIONS (2)(3)(4) | 2.04x |
| | 1.86x |
| | — |
| | — |
| | — |
| | — |
|
| |
(1) | For purposes of computing the ratio of earnings to fixed charges and the ratio of earnings to combined fixed charges and preferred unit distributions, “earnings” consists of pre-tax income from continuing operations before income from equity investees plus fixed charges (excluding capitalized interest), distributed income of equity investees and amortization of capitalized interest. “Fixed charges” represents interest incurred (whether expensed or capitalized), amortization of debt expense (including discounts and premiums relating to indebtedness) and the portion of rental expense on leases deemed to be the equivalent of interest. |
| |
(2) | As no preferred units were outstanding for any of the years ended December 31, 2015, 2014, 2013 and 2012, no historical ratio of earnings to combined fixed charges and preferred unit distributions are presented for those years. |
| |
(3) | The distribution requirement of our Series A convertible preferred units (the “Series A Preferred Units”) was paid in additional Series A Preferred Units for the year ended December 31, 2016 and the nine months ended September 30, 2017. We issued 4,019,916 additional Series A Preferred Units in lieu of cash distributions of $105 million for the distributions pertaining to the nine months ended September 30, 2017, and we issued 4,646,499 additional Series A Preferred Units in lieu of cash distributions of $122 million for the distributions pertaining to the year ended December 31, 2016. |
| |
(4) | Ratios may not recalculate due to rounding. |
