EX-12 3 k69554ex12.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT (12) Exhibit (12) CMS ENERGY CORPORATION Ratio of Earnings to Fixed Charges and Preferred Securities Dividends and Distributions (Millions of Dollars)
Three Months Ended Years Ended December 31 - March 31, 2002 2001 2000 1999 1998 1997 ---------------------------------------------------------------------------------------------------------------------- (b) (c) (d) Earnings as defined (a) Consolidated net income $399 $(545) $ 36 $ 277 $ 242 $ 244 Discontinued operations - 185 (3) 14 12 (1) Income taxes 253 (73) 50 63 100 108 Exclude equity basis subsidiaries (31) - (171) (84) (92) (80) Fixed charges as defined, adjusted to exclude capitalized interest of $xx, $38, $48, $41, $29, and $13 million for the three months ended March 31, 2002, and the years ended December 31, 2001, 2000, 1999, 1998, and 1997, respectively 175 751 736 594 393 360 ------------------------------------------------------------- Earnings as defined $796 $ 318 $ 648 $ 864 $ 655 $ 631 ============================================================= Fixed charges as defined (a) Interest on long-term debt $131 $ 573 $ 591 $ 502 $ 318 $ 273 Estimated interest portion of lease rental 1 6 7 8 8 10 Other interest charges 8 58 38 62 47 49 Preferred securities dividends and distributions 39 152 147 96 77 67 ------------------------------------------------------------- Fixed charges as defined $179 $ 789 $ 784 $ 668 $ 450 $ 397 ============================================================= Ratio of earnings to fixed charges and preferred securities dividends and distributions 4.45 - - 1.29 1.46 1.59 =============================================================
NOTES: (a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K. (b) For the year ended December 31, 2001, fixed charges exceeded earnings by $471 million. Earnings as defined include $704 million of pretax contract losses, asset revaluations and other charges. The ratio of earnings to fixed charges and preferred securities dividends and distributions would have been 1.30 excluding these amounts. (c) For the year ended December 31, 2000, fixed charges exceeded earnings by $136 million. Earnings as defined include a $329 million pretax impairment loss on the Loy Yang investment. The ratio of earnings to fixed charges and preferred securities dividends and distributions would have been 1.25 excluding this amount. (d) Excludes a cumulative effect of change in accounting after-tax gain of $43 million.