EX-12.01 2 vlo33112exh1201.htm EXHIBIT 12.01
Exhibit 12.01
VALERO ENERGY CORPORATION AND SUBSIDIARIES
STATEMENTS OF COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES
(Millions of Dollars)

| Three Months Ended March 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Year Ended December 31,
|  |  | 2011 |  |  | 2010 |  |  | 2009 |  |  | 2008 |  |  | 2007 |
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations before income tax expense (benefit), excluding income from equity investees | $ | (337 | ) |  |  | $ | 3,322 |  |  |  | $ | 1,481 |  |  |  | $ | (334 | ) |  |  | $ | 268 |  |  |  | $ | 6,202 |  |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed charges | 195 |  |  |  | 735 |  |  |  | 743 |  |  |  | 701 |  |  |  | 626 |  |  |  | 631 |  |
Amortization of capitalized interest | 6 |  |  |  | 23 |  |  |  | 20 |  |  |  | 18 |  |  |  | 17 |  |  |  | 13 |  |
Distributions from equity investees | — |  |  |  | — |  |  |  | 10 |  |  |  | — |  |  |  | — |  |  |  | — |  |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest capitalized | (52 | ) |  |  | (152 | ) |  |  | (90 | ) |  |  | (105 | ) |  |  | (92 | ) |  |  | (101 | ) |
Total earnings (loss) | $ | (188 | ) |  |  | $ | 3,928 |  |  |  | $ | 2,164 |  |  |  | $ | 280 |  |  |  | $ | 819 |  |  |  | $ | 6,745 |  |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net | $ | 99 |  |  |  | $ | 401 |  |  |  | $ | 484 |  |  |  | $ | 416 |  |  |  | $ | 360 |  |  |  | $ | 357 |  |
Interest capitalized | 52 |  |  |  | 152 |  |  |  | 90 |  |  |  | 105 |  |  |  | 92 |  |  |  | 101 |  |
Rental expense interest factor (a) | 44 |  |  |  | 182 |  |  |  | 169 |  |  |  | 180 |  |  |  | 174 |  |  |  | 173 |  |
Total fixed charges | $ | 195 |  |  |  | $ | 735 |  |  |  | $ | 743 |  |  |  | $ | 701 |  |  |  | $ | 626 |  |  |  | $ | 631 |  |
Ratio of earnings to fixed charges | (b) |  |  |  | — |  | x |  | — |  | x |  | (c) |  |  |  | — |  | x |  | — |  | x

(a) | The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.

(b) | For the three months ended March 31, 2012, there were no earnings to cover fixed charges which resulted in a deficiency of $383 million. The deficiency included the effect of a $595 million pre-tax impairment loss related to our Aruba Refinery as a result of our decision to shut down the refinery.

(c) | For the year ended December 31, 2009, earnings were insufficient to cover fixed charges by $421 million. The deficiency included the effect of a $222 million pre-tax impairment loss resulting from the permanent cancellation of certain capital projects classified as “construction in progress” as a result of the unfavorable impact of the economic slowdown on refining industry fundamentals during the year. The deficiency was also partially attributable to a $120 million loss contingency accrual related to our dispute of a turnover tax on export sales in Aruba.