EX-12.01 7 a2012ex1201.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)

| Year Ended December 31,
| 2012 |  |  | 2011 |  |  | 2010 |  |  | 2009 |  |  | 2008 |
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations before income tax expense (benefit), excluding income from equity investees | $ | 3,702 |  |  |  | $ | 3,322 |  |  |  | $ | 1,481 |  |  |  | $ | (334 | ) |  |  | $ | 268 |  |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed charges | 711 |  |  |  | 735 |  |  |  | 743 |  |  |  | 701 |  |  |  | 626 |  |
Amortization of capitalized interest | 25 |  |  |  | 23 |  |  |  | 20 |  |  |  | 18 |  |  |  | 17 |  |
Distributions from equity investees | 1 |  |  |  | — |  |  |  | 10 |  |  |  | — |  |  |  | — |  |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest capitalized | (221 | ) |  |  | (152 | ) |  |  | (90 | ) |  |  | (105 | ) |  |  | (92 | ) |
Total earnings | $ | 4,218 |  |  |  | $ | 3,928 |  |  |  | $ | 2,164 |  |  |  | $ | 280 |  |  |  | $ | 819 |  |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net | $ | 313 |  |  |  | $ | 401 |  |  |  | $ | 484 |  |  |  | $ | 416 |  |  |  | $ | 360 |  |
Interest capitalized | 221 |  |  |  | 152 |  |  |  | 90 |  |  |  | 105 |  |  |  | 92 |  |
Rental expense interest factor (a) | 177 |  |  |  | 182 |  |  |  | 169 |  |  |  | 180 |  |  |  | 174 |  |
Total fixed charges | $ | 711 |  |  |  | $ | 735 |  |  |  | $ | 743 |  |  |  | $ | 701 |  |  |  | $ | 626 |  |
Ratio of earnings to fixed charges | 5.9 |  | x |  | 5.3 |  | x |  | 2.9 |  | x |  | (b) |  |  |  | 1.3 |  | 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 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.