Exhibit 12.1
VALERO L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratio)
Years Ended December 31, | |||||||||||||||||||
2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||
(in thousands) | |||||||||||||||||||
Earnings: | |||||||||||||||||||
Income from continuing operations | $ | 67,177 | $ | 52,350 | $ | 42,694 | $ | 35,968 | $ | 65,445 | |||||||||
Add: | |||||||||||||||||||
Fixed charges | 16,443 | 5,492 | 4,203 | 5,266 | 997 | ||||||||||||||
Amortization of capitalized interest | 55 | 48 | 39 | 34 | 32 | ||||||||||||||
Distributions from Skelly-Belvieu | 2,803 | 3,590 | 2,874 | 4,658 | 4,238 | ||||||||||||||
Less: Interest capitalized | (123 | ) | (255 | ) | (298 | ) | — | (115 | ) | ||||||||||
Total earnings | $ | 86,355 | $ | 61,225 | $ | 49,512 | $ | 45,926 | $ | 70,597 | |||||||||
Fixed charges: | |||||||||||||||||||
Interest expense (1) | $ | 15,291 | $ | 4,968 | $ | 3,721 | $ | 5,181 | $ | 777 | |||||||||
Amortization of debt issuance costs | 740 | 160 | 90 | — | — | ||||||||||||||
Interest capitalized | 123 | 255 | 298 | — | 115 | ||||||||||||||
Rental expense interest factor (2) | 289 | 109 | 94 | 85 | 105 | ||||||||||||||
Total fixed charges | $ | 16,443 | $ | 5,492 | $ | 4,203 | $ | 5,266 | $ | 997 | |||||||||
Ratio of earnings to fixed charges | 5.3x | 11.1x | 11.8x | 8.7x | 70.8x | ||||||||||||||
(1) | The interest expense, net reported in Valero L.P.’s consolidated statements of income for the years ended December 31, 2003 and 2002 includes interest income of $171,000 and $248,000, respectively. |
(2) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |