EXHIBIT 12.1
AGL Resources Inc.
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
Per Regulation S-K, Item 503
(Dollars in millions)
| 6 months 06/30/2003 | Calendar 2002 | 3 months 12/31/2001 | For the fiscal years ended September 30, | |||||||||||||||||||||||||
| 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 | $ | 128.7 | $ | 161.0 | $ | 38.5 | $ | 138.8 | $ | 108.3 | $ | 113.5 | $ | 119.4 | ||||||||||||||
(Income) loss from equity investees | (24.4 | ) | (27.2 | ) | (5.2 | ) | (13.6 | ) | (17.6 | ) | 19.9 | (1.5 | ) | |||||||||||||||
Pretax income as defined | 104.3 | 133.8 | 33.3 | 125.2 | 90.7 | 133.4 | 117.9 | |||||||||||||||||||||
Fixed charges (computed below) | 46.5 | 103.3 | 27.9 | 110.7 | 66.9 | 65.8 | 67.3 | |||||||||||||||||||||
Distributed income of equity investees | 7.0 | 27.0 | — | 12.2 | — | — | — | |||||||||||||||||||||
| 157.8 | 264.1 | 61.2 | 248.1 | 157.6 | 199.2 | 185.2 | ||||||||||||||||||||||
Deduct: | ||||||||||||||||||||||||||||
Preference security dividend requirements | (11.6 | ) | (22.7 | ) | (7.0 | ) | (16.4 | ) | (9.3 | ) | (9.3 | ) | (9.9 | ) | ||||||||||||||
Earnings as defined (A) | $ | 146.2 | $ | 241.4 | $ | 54.2 | $ | 231.7 | $ | 148.3 | $ | 189.9 | $ | 175.3 | ||||||||||||||
Fixed charges as defined | ||||||||||||||||||||||||||||
Interest on long-term debt | $ | 28.2 | $ | 62.4 | $ | 16.4 | $ | 57.4 | $ | 46.7 | $ | 49.7 | $ | 49.7 | ||||||||||||||
Other interest, including amortized premiums, discounts and capitalized expenses related to indebtedness | 3.3 | 11.5 | 3.3 | 31.0 | 6.9 | 4.0 | 5.1 | |||||||||||||||||||||
Estimated interest component of rentals | 3.4 | 6.7 | 1.2 | 5.9 | 4.0 | 2.8 | 2.6 | |||||||||||||||||||||
Total fixed charges (B) | $ | 34.9 | $ | 80.6 | $ | 20.9 | $ | 94.3 | $ | 57.6 | $ | 56.5 | $ | 57.4 | ||||||||||||||
Combined fixed charges and preferred dividends as defined | ||||||||||||||||||||||||||||
Interest on long-term debt | $ | 28.2 | $ | 62.4 | $ | 16.4 | $ | 57.4 | $ | 46.7 | $ | 49.7 | $ | 49.7 | ||||||||||||||
Other interest, including amortized premiums, discounts and capitalized expenses related to indebtedness | 3.3 | 11.5 | 3.3 | 31.0 | 6.9 | 4.0 | 5.1 | |||||||||||||||||||||
Estimated interest component of rentals | 3.4 | 6.7 | 1.2 | 5.9 | 4.0 | 2.8 | 2.6 | |||||||||||||||||||||
Dividends on preferred stock—pretax (calculated below) (c) | 11.6 | 22.7 | 7.0 | 16.4 | 9.3 | 9.3 | 9.9 | |||||||||||||||||||||
Total fixed charges and preferred dividends (C) | $ | 46.5 | $ | 103.3 | $ | 27.9 | $ | 110.7 | $ | 66.9 | $ | 65.8 | $ | 67.3 | ||||||||||||||
Dividends on Preferred Stock—Pretax | ||||||||||||||||||||||||||||
Earnings before income taxes (a) | $ | 128.7 | $ | 161.0 | $ | 38.5 | $ | 138.8 | $ | 108.3 | $ | 113.5 | $ | 119.4 | ||||||||||||||
Income taxes (b) | $ | 50.2 | $ | 58.0 | $ | 13.6 | $ | 49.9 | $ | 37.2 | $ | 39.1 | $ | 38.8 | ||||||||||||||
Effective tax rate (b)/(a) | 39.0 | % | 36.0 | % | 35.3 | % | 36.0 | % | 34.3 | % | 34.4 | % | 32.5 | % | ||||||||||||||
1 minus effective tax rate (gross-up factor) | 61.0 | % | 64.0 | % | 64.7 | % | 64.0 | % | 65.7 | % | 65.6 | % | 67.5 | % | ||||||||||||||
Dividends on preferred stock | $ | 7.1 | $ | 14.5 | $ | 4.5 | $ | 10.5 | $ | 6.1 | $ | 6.1 | $ | 6.7 | ||||||||||||||
Divided by gross-up factor | 61.0 | % | 64.0 | % | 64.7 | % | 64.0 | % | 65.7 | % | 65.6 | % | 67.5 | % | ||||||||||||||
Dividends on preferred stock—pretax (c) | $ | 11.6 | $ | 22.7 | $ | 7.0 | $ | 16.4 | $ | 9.3 | $ | 9.3 | $ | 9.9 | ||||||||||||||
Ratio of earnings to fixed charges (A)/(B) | 4.19 | 3.00 | 2.59 | 2.46 | 2.57 | 3.36 | 3.05 | |||||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred dividends (A)/(C) | 3.14 | 2.34 | 1.95 | 2.09 | 2.22 | 2.89 | 2.60 | |||||||||||||||||||||
