EX-12 3 dex12.txt RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12 Conectiv Ratio of Earnings to Fixed Charges (Dollars in Thousands)
Year Ended December 31, ----------------------------------------------------------------------------------------- 2001 2000 1999 1998 1997 --------- --------- --------- ---------- --------- Income from continuing operation $ 377,522 $ 203,815 $143,493 $170,933 $106,890 --------- --------- --------- ---------- --------- Income taxes 253,486 151,275 123,079 117,857 76,040 --------- --------- --------- ---------- --------- Fixed charges: Interest on long-term debt including amortization of discount, premium and expense 142,423 166,256 149,732 133,796 78,350 Other interest 54,175 60,818 37,743 26,199 12,835 Preferred dividend require- ments of subsidiaries 18,734 20,383 19,894 17,871 10,178 --------- ---------- --------- ---------- --------- Total fixed charges 215,332 247,457 207,369 177,866 101,363 --------- ---------- --------- ---------- --------- Nonutility capitalized interest (15,119) (9,278) (3,264) (1,444) (208) --------- --------- --------- ---------- --------- Undistributed earnings of equity method investees - (4,496) - - - --------- --------- --------- ---------- --------- Earnings before extraordinary item, income taxes, and fixed charges $831,221 $588,773 $470,677 $465,212 $284,085 ========= ========= ========= ========== ========= Total fixed charges shown above $215,332 $247,457 $207,369 $177,866 $101,363 Increase preferred stock dividend requirements of subsidiaries to a pre-tax amount 3,644 5,253 6,123 4,901 3,065 --------- --------- --------- ---------- --------- Fixed charges for ratio computation $218,976 $252,710 $213,492 $182,767 $104,428 ========= ========= ========= ========== ========= Ratio of earnings to fixed charges 3.80 2.33 2.20 2.55 2.72
For purposes of computing the ratio, earnings are income from continuing operations plus income taxes and fixed charges, less nonutility capitalized interest. Fixed charges include gross interest expense, the estimated interest component of rentals, and preferred stock dividend requirements of subsidiaries. Preferred stock dividend requirements for purposes of computing the ratio have been increased to an amount representing the pre-tax earnings which would be required to cover such dividend requirements. The ratios for 2000-1997 have been restated to reflect discontinued telecommunciation operations, which is discussed in Note 5 to the Consolidated Financial Statements, included in Item 8 of Part II.