Exhibit 12.1
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
(in millions, except ratios)
Predecessor | Successor | |||||||||||||||||||||||||||||
Year Ended December 31, 2010 | Year Ended December 31, 2011 | Period from January 1, 2012 to October 4, 2012 | Period from Acquisition (October 5, 2012) to December 31, 2012) | Year Ended December 31, 2013 | Year Ended December 31, 2014 | Six Months Ended June 30, 2015 | ||||||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||||
Interest cost and debt expense | $ | 78 | $ | 96 | $ | 73 | $ | 18 | $ | 98 | $ | 145 | $ | 102 | ||||||||||||||||
Interest allocable to rental expense (1) | 2 | 3 | 3 | 1 | 4 | 6 | 4 | |||||||||||||||||||||||
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Total | $ | 80 | $ | 99 | $ | 76 | $ | 19 | $ | 102 | $ | 151 | $ | 106 | ||||||||||||||||
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Earnings: | ||||||||||||||||||||||||||||||
Income before income tax expense (2) | $ | 356 | $ | 347 | $ | 413 | $ | 150 | $ | 504 | $ | 325 | $ | 325 | ||||||||||||||||
Income before income tax expense attributable to noncontrolling interests | (4 | ) | (13 | ) | (13 | ) | (4 | ) | (16 | ) | (15 | ) | (2 | ) | ||||||||||||||||
Income before income tax expense attributable to redeemable noncontrolling interests | — | — | — | — | — | — | (1 | ) | ||||||||||||||||||||||
Equity in income of 50 percent or less owned affiliated companies | (26 | ) | (12 | ) | (14 | ) | (5 | ) | (21 | ) | (25 | ) | (13 | ) | ||||||||||||||||
Dividends received from 50 percent or less owned affiliated companies (3) | 15 | 11 | 5 | 6 | 14 | 14 | 10 | |||||||||||||||||||||||
Fixed charges | 80 | 99 | 76 | 19 | 102 | 151 | 106 | |||||||||||||||||||||||
Interest capitalized | (5 | ) | (7 | ) | (8 | ) | (4 | ) | (21 | ) | (78 | ) | (42 | ) | ||||||||||||||||
Amortization of previously capitalized interest | 1 | 1 | — | — | 1 | 1 | 1 | |||||||||||||||||||||||
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Total | $ | 417 | $ | 426 | $ | 459 | $ | 162 | $ | 563 | $ | 373 | $ | 384 | ||||||||||||||||
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Ratio of Earnings to Fixed Charges | 5.2 | 4.3 | 6.0 | 8.5 | 5.5 | 2.5 | 3.6 | |||||||||||||||||||||||
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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 entities in which the Partnership owns a controlling interest from the date of the Partnership’s acquisition of its controlling financial interest. |
(3) | Represents dividends received from equity-method investments, which excludes dividends from Inland Corporation, Mid-Valley Pipeline Company, Price River Terminal, LLC and West Texas Gulf Pipe Line Company from the date of the Partnership’s acquisition of its controlling financial interest. |