EX-12.1 4 h54629exv12w1.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES

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Exhibit 12.1
National Oilwell Varco, Inc.
Ratio of Earnings to Fixed Charges
(In millions, except for ratios)

|  | Years Ended December 31, |
|  | 2007 |  |  | 2006 |  |  | 2005 |  |  | 2004 |  |  | 2003 |
Income from continuing operations before income taxes and minority interest |  | $ | 2,028.9 |  |  | $ | 1,049.2 |  |  | $ | 430.0 |  |  | $ | 138.9 |  |  | $ | 121.8 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed charges (see below) |  |  | 95.2 |  |  |  | 82.1 |  |  |  | 73.6 |  |  |  | 46.2 |  |  |  | 47.5 |
Earnings before provision for taxes and fixed charges |  |  | 2,124.1 |  |  |  | 1,131.3 |  |  |  | 503.6 |  |  |  | 185.1 |  |  |  | 169.3 |
Estimated interest within rental expense |  |  | 44.9 |  |  |  | 33.4 |  |  |  | 20.7 |  |  |  | 7.8 |  |  |  | 8.6 |
Interest expense on indebtedness |  |  | 50.3 |  |  |  | 48.7 |  |  |  | 52.9 |  |  |  | 38.4 |  |  |  | 38.9 |
Total fixed charges |  |  | 95.2 |  |  |  | 82.1 |  |  |  | 73.6 |  |  |  | 46.2 |  |  |  | 47.5 |
Ratio of earnings to fixed charges |  |  | 22.3 | x |  |  | 13.8 | x |  |  | 6.8 | x |  |  | 4.0 | x |  |  | 3.6 | x