Exhibit 12.1
KINDER MORGAN, INC. AND SUBSIDIARIES
EXHIBIT 12.1 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions except ratio amounts)
Year Ended December 31, | |||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||
Earnings: | |||||||||||||||||||
Pre-tax income from continuing operations before cumulative effect of a change in accounting principle and before adjustment for noncontrolling interests and equity earnings (including amortization of excess cost of equity investments) per statements of income | $ | 1,873 | $ | 591 | $ | 510 | $ | 730 | $ | (3,249 | ) | ||||||||
Add: | |||||||||||||||||||
Fixed charges | 1,486 | 766 | 704 | 656 | 751 | ||||||||||||||
Amortization of capitalized interest | 5 | 5 | 4 | 4 | 3 | ||||||||||||||
Distributed income of equity investees | 311 | 200 | 132 | 128 | 158 | ||||||||||||||
Less: | |||||||||||||||||||
Interest capitalized from continuing operations | (27 | ) | (15 | ) | (13 | ) | (33 | ) | (50 | ) | |||||||||
Noncontrolling interest in pre-tax income of subsidiaries with no fixed charges | 17 | (22 | ) | (107 | ) | (83 | ) | (126 | ) | ||||||||||
Income (loss) as adjusted | $ | 3,665 | $ | 1,525 | $ | 1,230 | $ | 1,402 | $ | (2,513 | ) | ||||||||
Fixed charges: | |||||||||||||||||||
Interest and debt expense, net per statements of income (includes amortization of debt discount, premium, and debt issuance costs; excludes capitalized interest) | $ | 1,454 | $ | 718 | $ | 681 | $ | 632 | $ | 725 | |||||||||
Add: | |||||||||||||||||||
Portion of rents representative of the interest factor | 32 | 48 | 23 | 24 | 26 | ||||||||||||||
Fixed charges | $ | 1,486 | $ | 766 | $ | 704 | $ | 656 | $ | 751 | |||||||||
Ratio of earnings to fixed charges | 2.47 | 1.99 | 1.75 | 2.14 | (a) |
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(a) For the year ended December 31, 2008, fixed charges exceeded earnings by $3,264 million. In 2008, Kinder Morgan, Inc. recognized a $4,033 million non-cash goodwill impairment charge associated with its investment in Kinder Morgan Energy Partners, L. P.