CMS ENERGY CORPORATION
Ratio of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Dividends
(Millions of Dollars)
Year Ended December 31 | ||||||||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||||||||
(b) | (c) | (d) | ||||||||||||||||||||||||||||||
Earnings as defined(a) | ||||||||||||||||||||||||||||||||
Pretax income from continuing operations | $ | 335 | $ | 440 | $ | (317 | ) | $ | (434 | ) | $ | (773 | ) | |||||||||||||||||||
Exclude equity basis subsidiaries | 2 | (1 | ) | (22 | ) | (14 | ) | (17 | ) | |||||||||||||||||||||||
Fixed charges as defined(e) | 456 | 429 | 489 | 535 | 539 | |||||||||||||||||||||||||||
Earnings as defined(e) | $ | 793 | $ | 868 | $ | 150 | $ | 87 | $ | (251 | ) | |||||||||||||||||||||
Fixed charges as defined(a) | ||||||||||||||||||||||||||||||||
Interest on long-term debt | $ | 383 | $ | 371 | $ | 415 | $ | 492 | $ | 514 | ||||||||||||||||||||||
Estimated interest portion of lease rental | 17 | 25 | 23 | 8 | 6 | |||||||||||||||||||||||||||
Other interest charges | 58 | 35 | 53 | 37 | 21 | |||||||||||||||||||||||||||
Fixed charges as defined(e) | $ | 458 | $ | 431 | $ | 491 | $ | 537 | $ | 541 | ||||||||||||||||||||||
Preferred dividends | 17 | 17 | 12 | 11 | 10 | |||||||||||||||||||||||||||
Combined fixed charges and preferred dividends | $ | 475 | $ | 448 | $ | 503 | $ | 548 | $ | 551 | ||||||||||||||||||||||
Ratio of earnings to fixed charges | 1.73 | 2.01 | — | — | — | |||||||||||||||||||||||||||
Ratio of earnings to combined fixed | ||||||||||||||||||||||||||||||||
charges and preferred dividends | 1.67 | 1.94 | — | — | — | |||||||||||||||||||||||||||
NOTES:
(a) Earnings and fixed charges as defined in instructions for Item 503 ofRegulation S-K.
(b) For the year ended December 31, 2007, fixed charges exceeded earnings by $341 million and combined fixed charges and preferred dividends exceeded earnings by $353 million. Earnings as defined include $204 million in asset impairment charges and a $279 million charge for an electric sales contract termination.
(c) For the year ended December 31, 2006, fixed charges exceeded earnings by $450 million and combined fixed charges and preferred dividends exceeded earnings by $461 million. Earnings as defined include $459 million of asset impairment charges.
(d) For the year ended December 31, 2005, fixed charges exceeded earnings by $792 million and combined fixed charges and preferred dividends exceeded earnings by $802 million. Earnings as defined include $1.184 billion of asset impairment charges.
(e) Preferred dividends of a consolidated subsidiary are included in fixed charges, but excluded from earnings as defined because the amount was not deducted in arriving at pretax income from continuing operations.