Exhibit 12.1
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except ratio data)
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| Year Ended December 31, |
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| 2014 |
| 2013 |
| 2012 |
| 2011 |
| 2010 |
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EARNINGS (1) |
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Pre-tax income from continuing operations before noncontrolling interests and income from equity investees |
| $ | 1,449 |
| $ | 1,426 |
| $ | 1,143 |
| $ | 1,026 |
| $ | 510 |
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add: Fixed charges |
| 457 |
| 424 |
| 380 |
| 328 |
| 321 |
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add: Distributed income of equity investees |
| 105 |
| 55 |
| 40 |
| 23 |
| 9 |
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add: Amortization of capitalized interest |
| 4 |
| 3 |
| 2 |
| 2 |
| 1 |
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less: Capitalized interest |
| (48 | ) | (38 | ) | (36 | ) | (25 | ) | (16 | ) | |||||
Total Earnings |
| $ | 1,967 |
| $ | 1,870 |
| $ | 1,529 |
| $ | 1,354 |
| $ | 825 |
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FIXED CHARGES (1) |
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Interest expensed and capitalized (2) |
| $ | 400 |
| $ | 371 |
| $ | 336 |
| $ | 298 |
| $ | 281 |
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Amortization of debt expense |
| 10 |
| 10 |
| 10 |
| 10 |
| 8 |
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Portion of rent expense related to interest (33.33%) |
| 47 |
| 43 |
| 34 |
| 20 |
| 32 |
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Total Fixed Charges |
| $ | 457 |
| $ | 424 |
| $ | 380 |
| $ | 328 |
| $ | 321 |
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RATIO OF EARNINGS TO FIXED CHARGES (3) |
| 4.30 | x | 4.41 | x | 4.03 | x | 4.13 | x | 2.57 | x | |||||
(1) For purposes of computing the ratio of earnings to fixed charges, “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) Includes interest costs attributable to borrowings for hedged inventory purchases of $12 million, $30 million, $12 million, $20 million and $17 million for the years ended December 31, 2014, 2013, 2012, 2011 and 2010, respectively.
(3) Ratios may not recalculate due to rounding.