EX-12.(A) 3 k02628exv12wxay.txt STATEMENT RE: COMPUTATION OF CMS ENERGY'S RATIO FO EARNINGS Exhibit (12)(a) CMS ENERGY CORPORATION Ratio of Earnings to Combined Fixed Charges and Preferred Dividends (Millions of Dollars)
Year Ended December 31 ------------------------------------ 2005 2004 2003 2002 2001 ----- ----- ----- ----- ----- (c) (d) (e) Earnings as defined (a) Pretax income from continuing operations $(706) $ 137 $ 16 $(433) $(428) Exclude equity basis subsidiaries (17) (88) (41) (39) 68 Fixed charges as defined, adjusted to exclude capitalized interest of $38, $(25), $9, $16, and $35 million for the years ended December 31, 2005, 2004, 2003, 2002, and 2001, respectively (f) 505 649 605 518 577 ----- ----- ----- ----- ----- Earnings as defined $(218) $ 698 $ 580 $ 46 $ 217 ===== ===== ===== ===== ===== Fixed charges as defined (a) Interest on long-term debt $ 506 $ 560 $ 531 $ 404 $ 420 Estimated interest portion of lease rental 6 4 7 10 11 Other interest charges 21 49 61 34 83 Preferred dividends 10 11 15 86 98 ----- ----- ----- ----- ----- Fixed charges as defined $ 543 $ 624 $ 614 $ 534 $ 612 ===== ===== ===== ===== ===== Ratio of earnings to combined fixed charges and preferred dividends -- 1.12 -- -- -- ===== ===== ===== ===== =====
NOTES: (a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation S-K. (b) For the year ended December 31, 2005, fixed charges exceeded earnings by $761 million. Earnings as defined include $1.184 billion of asset impairment charges. (c) For the year ended December 31, 2003, fixed charges exceeded earnings by $34 million. Earnings as defined include $95 million of asset impairment charges. (d) For the year ended December 31, 2002, fixed charges exceeded earnings by $488 million. Earnings as defined include $602 million of asset impairment charges. (e) For the year ended December 31, 2001, fixed charges exceeded earnings by $395 million. Earnings as defined include $323 million of asset impairment charges. (f) For 2004, fixed charges, adjusted as defined, include $25 million of interest cost that was capitalized prior to 2004 and subsequently expensed in 2004.