EX-12 4 h66288exv12.htm EX-12 exv12
Exhibit 12
TENNESSEE GAS PIPELINE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
                                         
    For the Years ended December 31,  
    2008     2007     2006     2005     2004  
Earnings
                                       
Pre-tax income from continuing operations
  $ 182     $ 244     $ 202     $ 130     $ 158  
Income from equity investee
    (13 )     (13 )     (15 )     (14 )     (13 )
 
                             
 
                                       
Pre-tax income from continuing operations before income from equity investee
    169       231       187       116       145  
 
                                       
Fixed charges
    141       139       137       135       136  
Distributed income of equity investee
    16       27       17       64        
Capitalized interest
    (3 )     (6 )     (5 )     (2 )     (1 )
 
                             
 
                                       
Total earnings available for fixed charges
  $ 323     $ 391     $ 336     $ 313     $ 280  
 
                             
 
                                       
Fixed charges
                                       
Interest and debt expense
  $ 140     $ 138     $ 136     $ 134     $ 133  
Interest component of rent
    1       1       1       1       3  
 
                             
 
                                       
Total fixed charges
  $ 141     $ 139     $ 137     $ 135     $ 136  
 
                             
 
                                       
Ratio of earnings to fixed charges
    2.3       2.8       2.5       2.3       2.1  
 
                             
     For purposes of computing these ratios, earnings means pre-tax income from continuing operations before:
  income or loss from equity investee, adjusted to reflect actual distributions from equity investments; and
 
  fixed charges;
 
    less:
 
  capitalized interest.
 
    Fixed charges means the sum of the following:
 
  interest costs, not including interest on tax liabilities which is included in income tax expense our income statement;
 
  amortization of debt costs; and
 
  that portion of rental expense which we believe represents an interest factor.