EX-12 2 a38147exv12.htm EXHIBIT 12 exv12
 

     Exhibit 12
EDISON INTERNATIONAL
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED AND PREFERENCE STOCK
(Thousands of Dollars)
                                         
    December 31,  
    2003(5)     2004     2005     2006     2007  
EARNINGS BEFORE INCOME TAXES AND FIXED CHARGES:
                                        
 
                                        
Income from continuing operations before fixed charges and taxes (1)
   $ 1,856,153     $ 1,124,330     $ 2,396,513     $ 2,543,050     $ 2,420,512  
Add:
                                        
Rentals (2)
     247,512       216,877       200,764       191,166       186,413  
Allocable portion of interest on long-term contracts for the purchase of power (3)
     1,568       1,515       1,457       1,393       1,322  
Amortization of previously capitalized fixed charges
     8,410       2,690       2,839       2,384       3,165  
 
                              
Total earnings before income taxes and fixed charges (A)
   $ 2,113,643     $ 1,345,412     $ 2,601,573     $ 2,737,993     $ 2,611,412  
 
                              
 
                                        
FIXED CHARGES (6):
                                        
Interest and amortization
   $ 988,665     $ 974,622     $ 803,932     $ 825,204     $ 776,273  
Rentals (2)
     247,512       216,877       200,764       191,166       186,413  
Capitalized interest (4)
     7,578       839       1,075       10,538       27,511  
Allocable portion of interest on long-term contracts for the purchase of power (3)
     1,568       1,515       1,457       1,393       1,322  
Dividends on preferred securities
     73,255       —       —       —       —  
Subsidiary preferred and preference stock dividend requirements — pre-tax basis
     18,264       22,962       38,182       77,651       74,199  
 
                              
Total fixed charges (B)
   $ 1,336,842     $ 1,216,815     $ 1,045,410     $ 1,105,952     $ 1,065,718  
 
                              
 
                                        
RATIO OF EARNINGS TO
FIXED CHARGES (A) / (B):
     1.58       1.11       2.49       2.48       2.45  
 
                              
 
(1)   Includes allowance for funds used during construction, accrual of unbilled revenue and minority interest.
 
(2)   Rentals include the interest factor relating to certain significant rentals plus one-third of all remaining annual rentals, except for amounts allocated to power purchase contracts that are classified as operating leases.
 
(3)   Allocable portion of interest included in annual minimum debt service requirement of supplier.
 
(4)   Includes the fixed charges associated with Nuclear Fuel and capitalized interest of fifty-percent owned partnerships. The amounts for 2003-2006 are restated.
 
(5)   Revised to exclude the income and expenses associated with discontinued operations.
 
(6)   Interest expenses associated with income taxes are reflected as a component of income tax expense and are excluded from the determination of fixed charges.