Exhibit 12.1
Statement of Computation of Ratio of Earnings to Fixed Charges
(unaudited)
Sunoco Logistics Partners L.P.
(in thousands, except ratios)
Year ended December 31, | Nine months ended | |||||||||||||||||||||||
2007 | 2008 | 2009 | 2010 | 2011 | September 30, 2012 | |||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Combined interest cost and debt expense | 39,010 | 34,990 | 49,023 | 77,670 | 96,111 | 73,428 | ||||||||||||||||||
Interest allocable to rental expense(a) | 2,201 | 2,030 | 2,198 | 2,559 | 3,363 | 2,845 | ||||||||||||||||||
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Total | 41,211 | 37,020 | 51,221 | 80,229 | 99,474 | 76,273 | ||||||||||||||||||
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Earnings: | ||||||||||||||||||||||||
Income before income tax expense(b) | 120,875 | 214,480 | 250,362 | 355,998 | 346,949 | 412,306 | ||||||||||||||||||
Income before income taxes attributable to noncontrolling interests | — | — | — | (3,504 | ) | (13,225 | ) | (12,621 | ) | |||||||||||||||
Equity in income of 50 percent or less owned affiliated companies | (27,563 | ) | (22,415 | ) | (25,688 | ) | (25,757 | ) | (12,201 | ) | (14,368 | ) | ||||||||||||
Dividends received from 50 percent or less owned affiliated companies(c) | 23,866 | 22,191 | 19,189 | 14,663 | 11,420 | 4,877 | ||||||||||||||||||
Fixed charges | 41,211 | 37,020 | 51,221 | 80,229 | 99,474 | 76,273 | ||||||||||||||||||
Interest capitalized | (3,419 | ) | (3,855 | ) | (4,325 | ) | (4,545 | ) | (6,792 | ) | (7,900 | ) | ||||||||||||
Amortization of previously capitalized interest | 214 | 253 | 348 | 431 | 508 | 468 | ||||||||||||||||||
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Total | 155,184 | 247,674 | 291,107 | 417,515 | 426,133 | 459,035 | ||||||||||||||||||
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Ratio of Earnings to Fixed charges | 3.77 | 6.69 | 5.68 | 5.20 | 4.28 | 6.02 | ||||||||||||||||||
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(a) | Represents one-third of the total operating lease rental expense which is that portion deemed to be interest. |
(b) | Represents income before income tax expense for all consolidated entities, including Mid-Valley Pipeline Company, West Texas Gulf Pipe Line Company and Inland Corporation. |
(c) | Represents dividends received from equity-method investments, which excludes dividends from Mid-Valley Pipeline Company, West Texas Gulf Pipe Line Company and Inland Corporation. |