EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines.
Successor(a) | Predecessor(a) | |||||||||||||||||||
Year Ended December 31, 2008 | Year Ended December 31, 2007 | Nine Months Ended December 31, 2006 | Three Months Ended March 31, 2006 | Year Ended December 31, 2005 | Year Ended December 31, 2004 | |||||||||||||||
(in millions) | ||||||||||||||||||||
Earnings as defined for fixed charges calculation | ||||||||||||||||||||
Add: | ||||||||||||||||||||
Pretax income from continuing operations | $ | 458 | $ | 415 | $ | 102 | $ | 186 | $ | 412 | $ | 378 | ||||||||
Fixed charges | 122 | 139 | 100 | 35 | 114 | 106 | ||||||||||||||
Deduct: | ||||||||||||||||||||
Interest capitalized(b) | 19 | 30 | 14 | 3 | 7 | 5 | ||||||||||||||
Total earnings (as defined for the Fixed Charges calculation) | $ | 561 | $ | 524 | $ | 188 | $ | 218 | $ | 519 | $ | 479 | ||||||||
Fixed charges: | ||||||||||||||||||||
Interest on debt, including capitalized portions | $ | 113 | $ | 130 | $ | 95 | $ | 33 | $ | 105 | $ | 95 | ||||||||
Estimate of interest within rental expense | 9 | 9 | 5 | 2 | 9 | 11 | ||||||||||||||
Total fixed charges | $ | 122 | $ | 139 | $ | 100 | $ | 35 | $ | 114 | $ | 106 | ||||||||
Ratio of earnings to fixed charges | 4.6 | 3.8 | 1.9 | 6.2 | 4.6 | 4.5 |
(a) | See Note 1 for additional information on Predecessor and Successor reporting. |
(b) | Excludes equity costs related to AFUDC that are included in Other Income and Expenses in the Consolidated Statements of Operations. |