Ex. 12
VECTREN UTILITY HOLDINGS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | ||||||||||
(In Thousands, Except Ratios) | ||||||||||
Twelve months | Nine months | Nine months | ||||||||
Ended | Ended | Ended | ||||||||
September 30, | September 30, | September 30, | ||||||||
2005 | 2005 | 2004 | ||||||||
Earnings: (1) | ||||||||||
Net income (2) | $ | 96,100 | $ | 64,856 | $ | 51,911 | ||||
Income taxes | 63,060 | 42,706 | 32,681 | |||||||
Equity in losses (income) of equity investee, net of distributions | - | - | (127 | ) | ||||||
Fixed Charges (See below) (3) | 68,885 | 51,411 | 50,890 | |||||||
Less: Preferred stock dividend | 6 | 4 | 11 | |||||||
Total adjusted earnings | $ | 228,039 | $ | 158,969 | $ | 135,344 | ||||
Fixed charges: (3) | ||||||||||
Total interest expense | $ | 67,991 | $ | 50,755 | $ | 50,173 | ||||
Interest component of rents | 888 | 652 | 706 | |||||||
Preferred stock dividend | 6 | 4 | 11 | |||||||
Total fixed charges | $ | 68,885 | $ | 51,411 | $ | 50,890 | ||||
Ratio of earnings to fixed charges | 3.3 | 3.1 | 2.7 |
(1) | For the purposes of computing these ratios, earnings consist of pretax net income before income (losses) from equity investees, fixed charges, and less preferred stock dividends of a consolidated subsidiary. |
(2) | Net income, as defined, is before preferred stock dividend requirement of subsidiary and cumulative effect of change in accounting principle |
(3) | Fixed charges consist of total interest, amortization of debt discount, premium and expense, the estimated portion of interest implicit in rentals, and preferred stock dividends of a consolidated subsidiary. |