EX-12.1 3 d91747a1ex12-1.txt STATEMENT RE: COMPUTATION OF RATIOS EXHIBIT 12.1 TRANSCONTINENTAL GAS PIPE LINE CORPORATION COMPUTATION OF EARNINGS TO FIXED CHARGES Thousands of Dollars, except ratios
Nine Months Ended September 30, Year Ended December 31, (Unaudited) -------------------------------------------------------- -------------------- 1996 1997 1998 1999 2000 2000 2001 -------- -------- -------- -------- -------- -------- -------- Earning Available for Fixed Charges: Net Income 95,543 111,388 135,694 161,187 191,801 154,783 120,815 Undistributed earnings of equity investees (382) (504) (239) (3,214) (2,623) (1,662) 4,763 Plus - Interest expense and portion of rents representative of the interest factor, net of interest capitalized and amortization of debt expense, discount and premium 69,189 73,070 95,227 74,808 81,218 60,816 53,729 Federal income taxes 88,927 68,632 75,422 30,163 86,765 55,874 61,281 Deferred federal income taxes (37,613) (3,041) (5,056) 57,299 14,603 26,263 4,496 State and Municipal income taxes 7,300 1,002 8,914 11,459 14,438 11,293 8,636 -------- -------- -------- -------- -------- -------- -------- Total 222,964 250,547 309,962 331,702 386,202 307,367 253,720 ======== ======== ======== ======== ======== ======== ======== Fixed Charges: Interest on long-term debt 56,623 56,611 68,477 67,732 69,691 52,057 49,852 Other interest expense (includes intercompany) 10,509 14,640 21,912 1,642 6,358 4,813 61 Portion of rents representative of the interest factor, including amounts capitalized 7,504 6,770 6,945 7,290 7,300 5,531 5,843 Amortization of debt expense, discount and premium (3,294) (3,098) 275 254 210 161 96 -------- -------- -------- -------- -------- -------- -------- Total 71,342 74,923 97,609 76,918 83,559 62,562 55,852 ======== ======== ======== ======== ======== ======== ======== Ratio of earnings to fixed charges 3.13 3.34 3.18 4.31 4.62 4.91 4.54
For purposes of calculating the ratio of earnings to fixed charges: (a) Earnings represent the aggregate of pre-tax income, adjusted for distributed income of equity investees, and fixed charges, net of interest capitalized. (b) Fixed charges represent interest (whether expensed or capitalized), the amortization of total debt premium, discount and expense, and that portion of rentals considered to be representative of the interest factor.