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) |
_____________
(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.
