EXHIBIT 12.2
Generation
Years Ended December 31, | Six Months Ended June 30, 2007 | |||||||||||||||||
2002 | 2003 | 2004 | 2005 | 2006 | ||||||||||||||
Pre-tax income from continuing operations before adjustment for income or loss from equity investees and minority interest | 607 | (416 | ) | 1,052 | 1,818 | 2,269 | 1,817 | |||||||||||
Plus: (Income) or loss from equity investees | (87 | ) | (49 | ) | 14 | 1 | 9 | (1 | ) | |||||||||
Less: Capitalized interest | (24 | ) | (15 | ) | (11 | ) | (12 | ) | (21 | ) | (13 | ) | ||||||
Pre-tax income from continuing operations after adjustment for income or loss from equity investees, minority interest, capitalized interest and preference security dividend requirements | 496 | (480 | ) | 1,055 | 1,807 | 2,257 | 1,803 | |||||||||||
Fixed charges: | ||||||||||||||||||
Interest expensed and capitalized, amortization of debt discount and premium on all indebtness | 99 | 103 | 114 | 140 | 180 | 79 | ||||||||||||
Interest component of rental expense | 149 | 195 | 222 | 266 | 242 | 122 | ||||||||||||
Total fixed charges | 248 | 298 | 336 | 406 | 422 | 201 | ||||||||||||
Pre-tax income from continuing operations after adjustment for income or loss from equity investees, capitalized interest and preference security dividend requirements plus fixed charges | 744 | (182 | ) | 1,391 | 2,213 | 2,679 | 2,004 | |||||||||||
Ratio of earnings to fixed charges | 3.0 | N/A | (a) | 4.1 | 5.5 | 6.3 | 10.0 |
(a) | For purposes of the ratio calculation, the deficiency in Generation’s earnings to achieve a one-to-one ratio of earnings to fixed charges for 2003 was approximately $480 million. Generation’s earnings for 2003 were negatively impacted by a $945 impairment charge to the long-lived assets of Boston Generating, LLC. For purposes of calculating Generation’s ratio of earnings to fixed charges for the twelve months ended December 31, 2003, fixed charges were approximately $298 million. |