Exhibit 12.01
VALERO L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratio)
Years Ended December 31, | |||||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||||||
(in thousands) | |||||||||||||||||||
Earnings: | |||||||||||||||||||
Income from continuing operations before provision for income taxes and income from equity investees | $ | 77,074 | $ | 67,177 | $ | 52,350 | $ | 42,694 | $ | 35,968 | |||||||||
Add: | |||||||||||||||||||
Fixed charges | 21,625 | 16,443 | 5,492 | 4,203 | 5,266 | ||||||||||||||
Amortization of capitalized interest | 60 | 55 | 48 | 39 | 34 | ||||||||||||||
Distributions from Skelly-Belvieu Pipeline Company | 1,373 | 2,803 | 3,590 | 2,874 | 4,658 | ||||||||||||||
Less: Interest capitalized | (192 | ) | (123 | ) | (255 | ) | (298 | ) | — | ||||||||||
Total earnings | $ | 99,940 | $ | 86,355 | $ | 61,225 | $ | 49,512 | $ | 45,926 | |||||||||
Fixed charges: | |||||||||||||||||||
Interest expense (1) | $ | 20,630 | $ | 15,291 | $ | 4,968 | $ | 3,721 | $ | 5,181 | |||||||||
Amortization of debt issuance costs | 407 | 740 | 160 | 90 | — | ||||||||||||||
Interest capitalized | 192 | 123 | 255 | 298 | — | ||||||||||||||
Rental expense interest factor (2) | 396 | 289 | 109 | 94 | 85 | ||||||||||||||
Total fixed charges | $ | 21,625 | $ | 16,443 | $ | 5,492 | $ | 4,203 | $ | 5,266 | |||||||||
Ratio of earnings to fixed charges | 4.6x | 5.3x | 11.1x | 11.8x | 8.7x | ||||||||||||||
(1) | The interest and other expense, net reported in Valero L.P.’s consolidated statements of income for the years ended December 31, 2004 and 2003 includes interest income of $221,000 and $171,000 and other expense of ($134,000) and $0, respectively. |
(2) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense. |