Exhibit 12.1
CMS ENERGY CORPORATION
Ratio of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Dividends
(Millions of Dollars)
(Millions of Dollars)
Year Ended December 31 | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(b) | (c) | |||||||||||||||||||
Earnings as defined (a) | ||||||||||||||||||||
Pretax income from continuing operations | $ | 590 | $ | 335 | $ | 440 | $ | (317 | ) | $ | (434 | ) | ||||||||
Exclude equity basis subsidiaries | (2 | ) | 2 | (1 | ) | (22 | ) | (14 | ) | |||||||||||
Fixed charges as defined (d) | 449 | 456 | 429 | 489 | 535 | |||||||||||||||
Earnings as defined (d) | $ | 1,037 | $ | 793 | $ | 868 | $ | 150 | $ | 87 | ||||||||||
Fixed charges as defined (a) | ||||||||||||||||||||
Interest on long-term debt | $ | 394 | $ | 383 | $ | 371 | $ | 415 | $ | 492 | ||||||||||
Estimated interest portion of lease rental | 16 | 17 | 25 | 23 | 8 | |||||||||||||||
Other interest charges | 42 | 58 | 35 | 53 | 37 | |||||||||||||||
Fixed charges as defined (d) | $ | 452 | $ | 458 | $ | 431 | $ | 491 | $ | 537 | ||||||||||
Preferred dividends | 13 | 17 | 17 | 12 | 11 | |||||||||||||||
Combined fixed charges and preferred dividends | $ | 465 | $ | 475 | $ | 448 | $ | 503 | $ | 548 | ||||||||||
Ratio of earnings to fixed charges | 2.29 | 1.73 | 2.01 | — | — | |||||||||||||||
Ratio of earnings to combined fixed | ||||||||||||||||||||
charges and preferred dividends | 2.23 | 1.67 | 1.94 | — | — |
NOTES:
(a) Earnings and fixed charges as defined in instructions for Item 503 of Regulation 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) 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.