EXHIBIT 12.1
BURLINGTON NORTHERN SANTA FE CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN MILLIONS, EXCEPT RATIO AMOUNTS)
(UNAUDITED)
Year ended December 31, 1998 1997 1996 1995 1994
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Earnings:
Pre-tax income $1,849 $1,404 $1,440 $334 $695
Add:
Interest and fixed charges,
excluding capitalized interest 354 344 301 220 155
Portion of rent under long-term
operating leases representative
of an interest factor 202 183 179 129 98
Amortization of capitalized interest 4 3 3 1 -
Less: Undistributed equity in earnings
of investments accounted for
under the equity method 18 17 5 27 4
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Total earnings available for fixed charges $2,391 $1,917 $1,918 $657 $944
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Fixed charges:
Interest and fixed charges $ 371 $ 362 $ 314 $ 227 $ 157
Portion of rent under long-term operating
leases representative of an interest
factor 202 183 179 129 98
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Total fixed charges $ 573 $ 545 $ 493 $ 356 $ 255
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Ratio of earnings to fixed charges 4.17x/(1)/ 3.52x/(2)/ 3.89x 1.85x/(2)/ 3.70x
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(1) Earnings for the year ended December 31, 1998 include a $67 million pre-tax
gain on the sale of substantially all of the Company's interest in Santa Fe
Pacific Pipeline Partners, L.P. Excluding this gain, the ratio for the year
ended December 31, 1998 would have been 4.06x.
(2) Earnings for the years ended December 31, 1997 and 1995, include special
charges of $90 million and $735 million (before-tax, respectively).
Excluding these charges, the ratio for the years ended December 31, 1997
and 1995 would have been 3.68x and 3.91x, respectively.