EX-12 2 sig-exhibit12.txt COMPUTATION OF RATIO OF EARNINGS 54 EX-12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In Thousands, Except Ratios) Year Ended December 31 ---------------------------- Earnings: 2000(1) 1999 1998 ------- ------- ------- Net income(2) $41,048 $46,768 $43,542 Income taxes 24,832 26,427 25,035 Fixed charges (see below) 20,469 20,371 21,166 Less AFUDC funds borrowed (1,817) (2,508) (1,465) ------- ------- ------- Total adjusted earnings $84,532 $91,058 $88,278 ------- ------- ------- Fixed charges: Total interest expense $19,894 $19,766 $20,680 Interest component of rents (3) 575 605 486 ------- ------- ------- Total fixed charges $20,469 $20,371 $21,166 ------- ------- ------- Ratio of earnings to fixed charges 4.1 4.5 4.2 (4) ======= ======= =======
Year Ended December 31 ---------------------- Earnings: 1997 1996 -------- --------- Net income(2) $45,363 $42,841 Income taxes 27,259 24,035 Fixed charges (see below) 20,916 21,910 Less AFUDC funds borrowed (797) (445) -------- ------- Total adjusted earnings $92,741 $88,341 ------- ------- Fixed charges: Total interest expense $20,460 $21,472 Interest component of rents (3) 456 438 ------- ------- Total fixed charges $20,916 $21,910 ------- ------- Ratio of earnings to fixed charges (4) 4.4 4.0 ======= =======
(1) Merger and integration related costs incurred for the year ended December 31,2000 totaled $14.1 million ($11.0 million after tax). These costs relate primarily to transaction costs, severance and other merger and acquisition integration activities. SIGECO's ratio of earnings to fixed charges for 2000 before merger and integration charges was 4.7. (2) Net income, as defined, is before preferred dividend requirements (3) One-third of rentals represents a reasonable approximation of the interest factor. (4) The ratios shown above do not reflect the fixed charge component in SIGECO's power contract with OVEC. Inclusion of the component in the computation would not have a significant effect on the ratios.