Exhibit 12
AGL Resources Inc.
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
Per Regulation S-K, Item 503
(Dollars in millions)
Calendar | Transition | For the fiscal years ended September 30, | ||||||
2002 | Period | 2001 | 2000 | 1999 | 1998 | |||
Earnings as defined | ||||||||
Add: | ||||||||
Pretax income from continuing operations, before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees | ||||||||
Income before income tax | $ 161.0 | $ 38.5 | $ 138.8 | $ 108.3 | $ 113.5 | $ 119.4 | ||
(Income) loss from equity investees | (27.2) | (5.2) | (13.6) | (17.6) | 19.9 | (1.5) | ||
Pretax income as defined | 133.8 | 33.3 | 125.2 | 90.7 | 133.4 | 117.9 | ||
Fixed charges (computed below) | 103.3 | 27.9 | 110.7 | 66.9 | 65.8 | 67.3 | ||
Distributed income of equity investees | 27.0 | - | 12.2 | - | - | - | ||
264.1 | 61.2 | 248.1 | 157.6 | 199.2 | 185.2 | |||
Deduct: | ||||||||
Preference security dividend requirements | (22.7) | (7.0) | (16.4) | (9.3) | (9.3) | (9.9) | ||
Earnings as defined (A) | $ 241.4 | $ 54.2 | $ 231.7 | $ 148.3 | $ 189.9 | $ 175.3 | ||
Fixed charges as defined | ||||||||
Interest on long-term debt | $ 62.4 | $ 16.4 | $ 57.4 | $ 46.7 | $ 49.7 | $ 49.7 | ||
Other interest, including amortized premiums, discounts and capitalized expenses related to indebtedness | 11.5 | 3.3 | 31.0 | 6.9 | 4.0 | 5.1 | ||
Estimated interest component of rentals | 6.7 | 1.2 | 5.9 | 4.0 | 2.8 | 2.6 | ||
Dividends on preferred stock - pretax (calculated below) (c) | 22.7 | 7.0 | 16.4 | 9.3 | 9.3 | 9.9 | ||
Total fixed charges (B) | $ 103.3 | $ 27.9 | $ 110.7 | $ 66.9 | $ 65.8 | $ 67.3 | ||
Dividends on Preferred Stock - Pretax | ||||||||
Earnings before income taxes (a) | $ 161.0 | $ 38.5 | $ 138.8 | $ 108.3 | $ 113.5 | $ 119.4 | ||
Income taxes (b) | $ 58.0 | $ 13.6 | $ 49.9 | $ 37.2 | $ 39.1 | $ 38.8 | ||
Effective tax rate (b)/(a) | 36.0% | 35.3% | 36.0% | 34.3% | 34.4% | 32.5% | ||
1 minus effective tax rate (gross-up factor) | 64.0% | 64.7% | 64.0% | 65.7% | 65.6% | 67.5% | ||
Dividends on preferred stock | $ 14.5 | $ 4.5 | $ 10.5 | $ 6.1 | $ 6.1 | $ 6.7 | ||
Divided by gross-up factor | 64.0% | 64.7% | 64.0% | 65.7% | 65.6% | 67.5% | ||
Dividends on preferred stock - pretax (c) | $ 22.7 | $ 7.0 | $ 16.4 | $ 9.3 | $ 9.3 | $ 9.9 | ||
Ratio of combined fixed charges and preferred dividends to earnings (A)/(B) | 2.34 | 1.95 | 2.09 | 2.22 | 2.89 | 2.60 | ||