Exhibit 12.1
Northwest Pipeline GP
Computation of Ratio of Earnings to Fixed Charges
(Dollars in Thousands)
Computation of Ratio of Earnings to Fixed Charges
(Dollars in Thousands)
Six Months Ended | ||||||||||||||||||||||||||||
Years Ended December 31, | June 30, | |||||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | 2007 | 2008 | ||||||||||||||||||||||
(Restated) | (Restated) | (Restated) | (Restated) | (Restated) | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Income before income taxes | $ | 113,516 | $ | 119,138 | $ | 107,653 | $ | 85,668 | $ | 185,059 | $ | 97,624 | $ | 73,843 | ||||||||||||||
Add: | ||||||||||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest on long-term debt | 37,144 | 38,721 | 38,164 | 43,649 | 46,828 | 24,104 | 20,107 | |||||||||||||||||||||
Other interest expense | 3,388 | 3,368 | 3,389 | 3,824 | 5,585 | 2,538 | 2,771 | |||||||||||||||||||||
Rental expense representative of interest factor | 1,350 | 1,002 | 854 | 693 | 521 | 283 | 192 | |||||||||||||||||||||
Total fixed charges | 41,882 | 43,091 | 42,407 | 48,166 | 52,934 | 26,925 | 23,070 | |||||||||||||||||||||
Total earnings as adjusted | $ | 155,398 | $ | 162,229 | $ | 150,060 | $ | 133,834 | $ | 237,993 | $ | 124,549 | $ | 96,913 | ||||||||||||||
Fixed charges | $ | 41,882 | $ | 43,091 | $ | 42,407 | $ | 48,166 | $ | 52,934 | $ | 26,925 | $ | 23,070 | ||||||||||||||
Ratio of earnings to fixed charges | 3.71 | 3.76 | 3.54 | 2.78 | 4.50 | 4.63 | 4.20 | |||||||||||||||||||||
For the purposes of this ratio (i) earnings consist of income before fixed charges and income taxes for the Company and (ii) fixed charges consist of interest and debt expense on all indebtedness (without reduction for interest capitalized) and that portion of rental payments on operating leases estimated to represent an interest factor for the Company. |