EX-12 10 k75486exv12.txt STATEMENT REGARDING COMPUTATION OF CONSUMERS RATIO EXHIBIT (12) EXHIBIT (12) CONSUMERS ENERGY COMPANY Ratio of Earnings to Fixed Charges and Preferred Securities Dividends and Distributions (Millions of Dollars)
Years Ended December 31 -- 2002 2001 2000 1999 1998 ------------------------------------------------- (d) (c) (b) Earnings as defined (a) ----------------------- Consolidated net income $363 $ 199 $ 284 $ 340 $ 306 Income taxes 180 97 137 172 135 Exclude equity basis subsidiaries (38) (30) (47) (40) (38) Fixed charges as defined, adjusted to exclude capitalized interest of $12, $6, $2, $-, and $1 million for years ended December 31, 2002, 2001, 2000, 1999, and 1998, respectively 178 197 194 192 185 ------------------------------------------------- Earnings as defined $ 683 $ 463 $ 568 $ 664 $ 588 ================================================= Fixed charges as defined (a) ---------------------------- Interest on long-term debt $ 153 $ 151 $ 141 $ 140 $ 138 Estimated interest portion of lease rental 10 11 11 11 10 Other interest charges 27 41 44 41 38 Preferred securities dividends and distributions 47 44 37 30 47 ------------------------------------------------- Fixed charges as defined $ 237 $ 247 $ 233 $ 222 $ 233 ================================================= Ratio of earnings to fixed charges and preferred securities dividends and distributions 2.88 1.87 2.44 2.99 2.52 =================================================
NOTES: (a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K. (b) Excludes a cumulative effect of change-in-accounting after-tax gain of $43 million; if included, ratio would be 2.81. (c) Excludes a cumulative effect of change-in-accounting after-tax loss of $11 million; if included, ratio would be 1.81. (d) Excludes a cumulative effect of change-in-accounting after tax gain of $18 million; if included, ratio would be unchanged, since the change-in-accounting resulted from the equity based subsidiary MCV Partnership. The total net income of equity based subsidiaries are excluded from determining earnings as defined.