EX-12.1 3 h97523exv12w1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 TENNESSEE GAS PIPELINE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS)
FOR THE YEAR ENDED DECEMBER 31, FOR THE THREE MONTHS ----------------------------------------- ENDED MARCH 31, 1997 1998 1999 2000 2001 2001 2002 ----- ----- ----- ----- ----- ----- ----- Earnings Pre-tax income from continuing operations $ 152 $ 151 $ 256 $ 237 $ 226 $ 88 $ 59 Income from equity investees (12) (12) (9) (11) (14) (5) (5) ----- ----- ----- ----- ----- ----- ----- Pre-tax income from continuing operations before income from equity investees 140 139 247 226 212 83 54 Fixed charges 144 172 129 130 122 31 32 Distributed income of equity investees 11 7 6 -- -- -- -- Capitalized interest (1) (1) (2) (6) (11) (2) (2) ----- ----- ----- ----- ----- ----- ----- Totals earnings available for fixed charges $ 294 $ 317 $ 380 $ 350 $ 323 $ 112 $ 84 ===== ===== ===== ===== ===== ===== ===== Fixed charges Interest and debt costs $ 144 $ 172 $ 129 $ 130 $ 120 $ 31 $ 32 Interest component of rent -- -- -- -- 2 -- -- ----- ----- ----- ----- ----- ----- ----- Total fixed charges $ 144 $ 172 $ 129 $ 130 $ 122 $ 31 $ 32 ===== ===== ===== ===== ===== ===== ===== Ratio of earnings to fixed charges 2.04 1.84 2.95 2.69 2.65 3.61 2.63 ===== ===== ===== ===== ===== ===== =====
For purposes of calculating these ratios: (i) "fixed charges" represent interest cost (exclusive of interest on rate refunds), amortization of debt costs and the estimated portion of rental expense representing the interest factor; and (ii) "earnings" represent the aggregate of pre-tax income from continuing operations before income from equity investees, fixed charges, and distributed income of equity investees, less capitalized interest.