EX-12.1 6 d99347exv12w1.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 (UNAUDITED)
Nine Months Ended Year Ended December 31, September 30, ---------------------------------------------------------- ------------- 1997 1998 1999 2000 2001 2002 ---------- ---------- ---------- ---------- --------- ------------- Earnings Available for Fixed Charges: Net Income $ 111,388 $ 135,694 $ 161,187 $ 191,801 $ 132,576 $ 130,924 Adjustment for distributed earnings of equity investees (504) (239) (3,214) (2,623) 4,139 12,826 Plus - Interest expense and portion of rents representative of the interest factor, net of interest capitalized, and amortization of debt expense, discount and premium 73,070 95,227 74,808 81,218 92,280 71,761 - Federal income taxes 68,632 75,422 30,163 86,765 46,470 57,528 - Deferred federal income taxes (3,041) (5,056) 57,299 14,603 26,336 13,143 - State and Municipal income taxes 1,002 8,914 11,459 14,438 9,444 10,131 --------- --------- --------- --------- --------- --------- Total $ 250,547 $ 309,962 $ 331,702 $ 386,202 $ 311,245 $ 296,313 ========= ========= ========= ========= ========= ========= Fixed Charges: Interest on long-term debt $ 56,611 $ 68,477 $ 67,732 $ 69,691 $ 67,799 $ 58,882 Other interest expense (includes intercompany) 14,640 21,912 1,642 6,358 20,336 9,649 Portion of rents representative of the interest factor, including amounts capitalized 6,770 6,945 7,290 7,300 7,132 5,383 Amortization of debt expense, discount and premium (3,098) 275 254 210 122 306 --------- --------- --------- --------- --------- --------- Total $ 74,923 $ 97,609 $ 76,918 $ 83,559 $ 95,389 $ 74,220 ========= ========= ========= ========= ========= ========= Ratio of earnings to fixed charges 3.34 3.18 4.31 4.62 3.26 3.99
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.