EXHIBIT 12.1
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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| Six Months |
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| Ended |
| Year Ended December 31, |
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| June 30, 2005 |
| 2004 |
| 2003 |
| 2002 |
| 2001 |
| 2000 |
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EARNINGS |
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Income from continuing operations before income from equity investees(1) |
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| $ | 94,801 |
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| $ | 129,460 |
| $ | 59,295 |
| $ | 64,836 |
| $ | 43,671 |
| $ | 77,502 |
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Add: Fixed Charges |
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| 42,259 |
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| 54,604 |
| 43,662 |
| 38,848 |
| 37,574 |
| 33,949 |
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Distributed income of equity investees |
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| 778 |
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| 444 |
| 395 |
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| — |
| — |
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Subtract: Capitalized Interest |
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| (966 | ) |
| (544 | ) | (524 | ) | (773 | ) | (153 | ) | — |
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Total Earnings(1) |
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| $ | 136,872 |
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| $ | 183,964 |
| $ | 102,828 |
| $ | 102,911 |
| $ | 81,092 |
| $ | 111,451 |
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FIXED CHARGES |
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Interest Expensed and Capitalized(3) |
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| $ | 38,997 |
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| $ | 49,198 |
| $ | 36,790 |
| $ | 32,521 |
| $ | 32,400 |
| $ | 29,356 |
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Amortization of Debt Expense |
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| 1,293 |
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| 2,537 |
| 3,787 |
| 3,676 |
| 2,667 |
| 2,051 |
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Portion of rent expense related to interest (33%) |
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| 1,969 |
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| 2,869 |
| 3,085 |
| 2,651 |
| 2,507 |
| 2,541 |
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Total Fixed Charges |
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| $ | 42,259 |
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| $ | 54,604 |
| $ | 43,662 |
| $ | 38,848 |
| $ | 37,574 |
| $ | 33,949 |
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RATIO OF EARNINGS TO FIXED CHARGES(2) |
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| 3.24x |
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| 3.37x |
| 2.36x |
| 2.65x |
| 2.16x |
| 3.28x |
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(1) For purposes of computing the ratio of earnings to fixed charges, “earnings” consist of pretax income from continuing operations plus fixed charges (excluding capitalized interest). “Fixed charges” represent interest incurred (whether expensed or capitalized), amortization of debt expense, and that portion of rental expense on operating leases deemed to be the equivalent of interest.
(2) The 2000 period includes a loss of $15.1 million related to early extinguishment of debt previously classified as extraordinary items. Effective with the FASB’s issuance of SFAS 145, “Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections” in April 2002, such items are included in income from continuing operations.
(3) Includes interest costs attributable to borrowings for inventory stored in a contango market of $9.2 million for the six months ended June 30, 2005, and $2.0 million, $1.0 million, $2.7 million, $3.2 million and $0.7 million for each of the years ended December 31, 2004, 2003, 2002, 2001 and 2000, respectively. These interest costs are included in purchases and related costs in our GMT&S segment profit as we consider interest on these borrowings a direct cost to storing the inventory.