Exhibit 12.1
BOARDWALK PIPELINE PARTNERS, LP
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions, except ratios)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the
Nine Months
Ended
September 30, | | | For the Year Ended
December 31, | |
| | | 2014 | | | 2013 | | | 2013 | | | 2012 | | | 2011 | | | 2010 | | | 2009 | |
Earnings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | $ | 110.3 | | | $ | 233.8 | | | $ | 250.7 | | | $ | 306.5 | | | $ | 217.4 | | | $ | 289.9 | | | $ | 163.0 | |
Equity losses in unconsolidated affiliates | | | 86.9 | | | | 0.6 | | | | 1.2 | | | | — | | | | — | | | | — | | | | — | |
Net loss attributable to noncontrolling interests | | | 9.2 | | | | 0.7 | | | | 3.5 | | | | — | | | | — | | | | — | | | | — | |
Amortization of capitalized interest | | | 2.6 | | | | 2.5 | | | | 3.4 | | | | 3.3 | | | | 3.3 | | | | 3.2 | | | | 2.8 | |
Fixed charges | | | 132.8 | | | | 131.5 | | | | 176.0 | | | | 178.4 | | | | 179.8 | | | | 160.2 | | | | 147.7 | |
Capitalized interest | | | (6.2 | ) | | | (5.1 | ) | | | (6.4 | ) | | | (4.6 | ) | | | (1.9 | ) | | | (4.1 | ) | | | (10.2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total earnings | | $ | 335.6 | | | $ | 364.0 | | | $ | 428.4 | | | $ | 483.6 | | | $ | 398.6 | | | $ | 449.2 | | | $ | 303.3 | |
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Fixed Charges: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net of capitalized interest | | $ | 121.2 | | | $ | 122.3 | | | $ | 163.5 | | | $ | 168.6 | | | $ | 173.1 | | | $ | 151.1 | | | $ | 132.3 | |
Capitalized interest | | | 6.2 | | | | 5.1 | | | | 6.4 | | | | 4.6 | | | | 1.9 | | | | 4.1 | | | | 10.2 | |
Implicit interest in rents | | | 5.4 | | | | 4.1 | | | | 6.1 | | | | 5.2 | | | | 4.8 | | | | 5.0 | | | | 5.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total fixed charges | | $ | 132.8 | | | $ | 131.5 | | | $ | 176.0 | | | $ | 178.4 | | | $ | 179.8 | | | $ | 160.2 | | | $ | 147.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratio of earnings to fixed charges | | | 2.53x | | | | 2.77x | | | | 2.43x | | | | 2.71x | | | | 2.22x | | | | 2.80x | | | | 2.05x | |
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For purposes of calculating the ratio of consolidated earnings to fixed charges:
| | • | | “earnings” is the aggregate of the following items: pre-tax income or loss from continuing operations before income or loss from equity investees; plus fixed charges; plus amortization of capitalized interest; less capitalized interest and noncontrolling interests in pre-tax income of subsidiaries that have not incurred fixed charges; and |
| | • | | “fixed charges” means the sum of the following: interest expensed and capitalized; amortized premiums, discounts and capitalized expenses related to indebtedness; and an estimate of the interest within rental expense. Fixed charges are not reduced by any allowance for funds used during construction. |
