EX-12 2 k88013exv12.txt STATEMENT RE COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES . . . EXHIBIT (12) CMS ENERGY CORPORATION Ratio of Earnings to Fixed Charges (Millions of Dollars)
Six Months Ended Years Ended December 31 - June 30, 2004 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------ Restated Restated (b) (c) (d) (e) (f) Earnings as defined (a) Consolidated net income $ 9 $ (44) $(650) $ (459) $ 5 $ 277 Discontinued operations 2 (23) 274 128 (83) (70) Income taxes (10) 58 (41) (94) 72 64 Exclude equity basis subsidiaries (44) (41) (39) 68 (171) (45) Fixed charges as defined, adjusted to exclude capitalized interest of $3, $9, $16, $35, $47, and $41 million for the six months ended June 30, 2004 and the years ended December 31, 2003, 2002, 2001, 2000, and 1999, respectively 297 589 427 478 417 532 -------------------------------------------------------------- Earnings as defined $ 254 $ 539 $ (29) $ 121 $ 240 $ 758 ============================================================== Fixed charges as defined (a) Interest on long-term debt $ 285 $ 531 $ 404 $ 420 $ 420 $ 502 Estimated interest portion of lease rental 4 8 10 11 11 11 Other interest charges 12 59 32 83 34 58 -------------------------------------------------------------- Fixed charges as defined $ 301 $ 598 $ 446 $ 514 $ 465 $ 571 ============================================================== Ratio of earnings to fixed charges and preferred securities dividends and distributions - - - - - 1.33 =============================================================
NOTES: (a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K. (b) For the six months ended June 30, 2004, fixed charges exceeded earnings by $47 million. Earnings as defined include $125 million of asset impairment charges. The ratio of earnings to fixed charges and preferred securities dividends and distributions would have been 1.26 excluding this amount. (c) For the year ended December 31, 2003, fixed charges exceeded earnings by $59 million. Earnings as defined include $95 million of asset impairment charges. The ratio of earnings to fixed charges and preferred securities dividends and distributions would have been 1.06 excluding these amounts. (d) For the year ended December 31, 2002, fixed charges exceeded earnings by $475 million. Earnings as defined include $602 million of asset impairments charges. The ratio of earnings to fixed charges and preferred securities dividends and distributions would have been 1.28 excluding these amounts. (e) For the year ended December 31, 2001, fixed charges exceeded earnings by $393 million. Earnings as defined include $323 million of asset impairments charges. (f) For the year ended December 31, 2000, fixed charges exceeded earnings by $225 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 1.22 excluding this amount. CMS ENERGY CORPORATION Ratio of Earnings to Fixed Charges and Preferred Securities Dividends and Distributions (Millions of Dollars)
Six Months Ended Years Ended December 31 - June 30, 2004 2003 2002 2001 2000 1999 ------------------------------------------------------------------------------------------------------------------ Restated Restated (b) (c) (d) (e) (f) Earnings as defined (a) Consolidated net income $ 9 $ (44) $(650) $ (459) $ 5 $ 277 Discontinued operations 2 (23) 274 128 (83) (70) Income taxes (10) 58 (41) (94) 72 64 Exclude equity basis subsidiaries (44) (41) (39) 68 (171) (45) Fixed charges as defined, adjusted to exclude capitalized interest of $3, $9, $16, $35, $47, and $41 million for the six months ended June 30, 2004 and the years ended December 31, 2003, 2002, 2001, 2000, and 1999, respectively 309 608 565 631 562 625 -------------------------------------------------------------- Earnings as defined $ 266 $ 558 $ 109 $ 274 $ 385 $ 851 ============================================================== Fixed charges as defined (a) Interest on long-term debt $ 285 $ 531 $ 404 $ 420 $ 420 $ 502 Estimated interest portion of lease rental 4 8 10 11 11 11 Other interest charges 12 59 32 83 34 58 Preferred securities dividends and distributions 12 19 135 152 144 95 -------------------------------------------------------------- Fixed charges as defined $ 313 $ 617 $ 581 $ 666 $ 609 $ 666 ============================================================== Ratio of earnings to fixed charges and preferred securities dividends and distributions - - - - - 1.28 =============================================================
NOTES: (a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K. (b) For the six months ended June 30, 2004, fixed charges exceeded earnings by $47 million. Earnings as defined include $125 million of asset impairment charges. The ratio of earnings to fixed charges and preferred securities dividends and distributions would have been 1.25 excluding this amount. (c) For the year ended December 31, 2003, fixed charges exceeded earnings by $59 million. Earnings as defined include $95 million of asset impairment charges. The ratio of earnings to fixed charges and preferred securities dividends and distributions would have been 1.06 excluding these amounts. (d) For the year ended December 31, 2002, fixed charges exceeded earnings by $472 million. Earnings as defined include $602 million of asset impairments charges. The ratio of earnings to fixed charges and preferred securities dividends and distributions would have been 1.22 excluding these amounts. (e) For the year ended December 31, 2001, fixed charges exceeded earnings by $392 million. Earnings as defined include $323 million of asset impairments charges. (f) For the year ended December 31, 2000, fixed charges exceeded earnings by $224 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 1.17 excluding this amount.