Exhibit 12
EDISON INTERNATIONAL
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED AND PREFERENCE STOCK
(Thousands of Dollars)
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED AND PREFERENCE STOCK
(Thousands of Dollars)
December 31, | ||||||||||||||||||||
2003(5) | 2004 | 2005 | 2006 | 2007 | ||||||||||||||||
EARNINGS BEFORE INCOME TAXES AND FIXED CHARGES: | ||||||||||||||||||||
Income from continuing operations before fixed charges and taxes (1) | $ | 1,856,153 | $ | 1,124,330 | $ | 2,396,513 | $ | 2,543,050 | $ | 2,420,512 | ||||||||||
Add: | ||||||||||||||||||||
Rentals (2) | 247,512 | 216,877 | 200,764 | 191,166 | 186,413 | |||||||||||||||
Allocable portion of interest on long-term contracts for the purchase of power (3) | 1,568 | 1,515 | 1,457 | 1,393 | 1,322 | |||||||||||||||
Amortization of previously capitalized fixed charges | 8,410 | 2,690 | 2,839 | 2,384 | 3,165 | |||||||||||||||
Total earnings before income taxes and fixed charges (A) | $ | 2,113,643 | $ | 1,345,412 | $ | 2,601,573 | $ | 2,737,993 | $ | 2,611,412 | ||||||||||
FIXED CHARGES (6): | ||||||||||||||||||||
Interest and amortization | $ | 988,665 | $ | 974,622 | $ | 803,932 | $ | 825,204 | $ | 776,273 | ||||||||||
Rentals (2) | 247,512 | 216,877 | 200,764 | 191,166 | 186,413 | |||||||||||||||
Capitalized interest (4) | 7,578 | 839 | 1,075 | 10,538 | 27,511 | |||||||||||||||
Allocable portion of interest on long-term contracts for the purchase of power (3) | 1,568 | 1,515 | 1,457 | 1,393 | 1,322 | |||||||||||||||
Dividends on preferred securities | 73,255 | — | — | — | — | |||||||||||||||
Subsidiary preferred and preference stock dividend requirements — pre-tax basis | 18,264 | 22,962 | 38,182 | 77,651 | 74,199 | |||||||||||||||
Total fixed charges (B) | $ | 1,336,842 | $ | 1,216,815 | $ | 1,045,410 | $ | 1,105,952 | $ | 1,065,718 | ||||||||||
RATIO OF EARNINGS TO FIXED CHARGES (A) / (B): | 1.58 | 1.11 | 2.49 | 2.48 | 2.45 | |||||||||||||||
(1) | Includes allowance for funds used during construction, accrual of unbilled revenue and minority interest. | |
(2) | Rentals include the interest factor relating to certain significant rentals plus one-third of all remaining annual rentals, except for amounts allocated to power purchase contracts that are classified as operating leases. | |
(3) | Allocable portion of interest included in annual minimum debt service requirement of supplier. | |
(4) | Includes the fixed charges associated with Nuclear Fuel and capitalized interest of fifty-percent owned partnerships. The amounts for 2003-2006 are restated. | |
(5) | Revised to exclude the income and expenses associated with discontinued operations. | |
(6) | Interest expenses associated with income taxes are reflected as a component of income tax expense and are excluded from the determination of fixed charges. |