Exhibit 12.1
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
Three Months Ended | ||||
March 31, 2012 | ||||
(in millions) | ||||
Fixed Charges: | ||||
Interest cost and debt expense | $ | 26 | ||
Interest allocable to rental expense(1) | 1 | |||
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Total | $ | 27 | ||
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Earnings: | ||||
Income before income tax expense(2) | $ | 105 | ||
Income before income tax expense attributable to noncontrolling interests | (4 | ) | ||
Equity in income of 50 percent or less owned affiliated companies | (2 | ) | ||
Dividends received from 50 percent or less owned affiliated companies(3) | 2 | |||
Fixed charges | 27 | |||
Interest capitalized | (2 | ) | ||
Amortization of previously capitalized interest | — | |||
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Total | $ | 126 | ||
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Ratio of Earnings to Fixed Charges | 4.7 | |||
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(1) | Represents one-third of the total operating lease rental expense which is that portion deemed to be interest. |
(2) | Represents income before income tax expense for all consolidated entities, including Mid-Valley Pipeline Company, West Texas Gulf Pipe Line Company and Inland Corporation. |
(3) | Represents dividends received from equity-method investments, which excludes dividends from Mid-Valley Pipeline Company, West Texas Gulf Pipe Line Company and Inland Corporation. |