Exhibit 12.01
NUSTAR ENERGY L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Thousands of Dollars, Except Ratio)
 
 
Years Ended December 31,
 
2015
 
2014
 
2013
 
2012
 
2011
Earnings:
 
 
 
 
 
 
 
 
 
Income (loss) from continuing
operations before provision for
income taxes and income from
equity investees
$
320,658

 
$
220,174

 
$
(132,786
)
 
$
(132,173
)
 
$
225,771

Add:
 
 
 
 
 
 
 
 
 
Fixed charges
150,661

 
153,236

 
149,090

 
122,286

 
109,825

Amortization of capitalized interest
1,573

 
1,385

 
1,216

 
1,012

 
793

Distributions from joint ventures
2,500

 
7,587

 
7,956

 
6,364

 
14,374

Less: Interest capitalized
(5,549
)
 
(5,667
)
 
(4,501
)
 
(7,737
)
 
(5,388
)
Total earnings
$
469,843

 
$
376,715

 
$
20,975

 
$
(10,248
)
 
$
345,375

Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense, net
$
131,868

 
$
132,281

 
$
127,119

 
$
90,535

 
$
81,539

Interest capitalized
5,549

 
5,667

 
4,501

 
7,737

 
5,388

Rental expense interest factor (a)
13,244

 
15,288

 
17,470

 
24,014

 
22,898

Total fixed charges
$
150,661

 
$
153,236

 
$
149,090

 
$
122,286

 
$
109,825

Ratio of earnings to fixed charges
3.1x

 
2.5x

 
(b)

 
(c)

 
3.1x


 
(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, 2013, earnings were insufficient to cover fixed charges by $128.1 million. The deficiency included a goodwill impairment loss of $304.5 million related to the Statia terminals reporting unit.
(c)
For the year ended December 31, 2012, earnings were insufficient to cover fixed charges by $132.5 million. The deficiency included the effect of $271.8 million of impairment losses mainly resulting from the write-down of the carrying value of our long-lived assets related to our asphalt operations, including fixed assets, goodwill, intangible assets and other long-term assets.