Exhibit 12 | ||||||||||||||||||
INTEGRYS ENERGY GROUP, INC | ||||||||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | ||||||||||||||||||
Six Months Ended | For the Years Ended December 31 | |||||||||||||||||
(Millions, except ratio) | June 30, 2013 | 2012 | 2011 (e) | 2010 (e) | 2009 (e) | 2008 (e) | ||||||||||||
EARNINGS | ||||||||||||||||||
Net income (loss) from continuing operations | $ | 178.3 | $ | 294.0 | $ | 230.0 | $ | 245.2 | $ | (74.8 | ) | $ | 112.4 | |||||
Provision for income taxes | 106.3 | 149.8 | 133.3 | 162.3 | 81.2 | 59.8 | ||||||||||||
Income from continuing operations before income taxes | 284.6 | 443.8 | 363.3 | 407.5 | 6.4 | 172.2 | ||||||||||||
Less: | ||||||||||||||||||
Undistributed earnings of less than 50% owned affiliates | (8.8 | ) | (16.8 | ) | (15.8 | ) | (14.8 | ) | (16.2 | ) | (16.4 | ) | ||||||
Preferred stock dividends of subsidiary (a) | (2.6 | ) | (4.7 | ) | (5.1 | ) | (5.3 | ) | 0.3 | (4.8 | ) | |||||||
Interest capitalized (b) | — | — | — | — | (0.2 | ) | — | |||||||||||
Adjusted income (loss) from continuing operations before income taxes | 273.2 | 422.3 | 342.4 | 387.4 | (9.7 | ) | 151.0 | |||||||||||
Total fixed charges as defined | 64.1 | 130.0 | 137.7 | 157.6 | 171.6 | 169.8 | ||||||||||||
Total earnings as defined | 337.3 | 552.3 | 480.1 | 545.0 | 161.9 | 320.8 | ||||||||||||
FIXED CHARGES | ||||||||||||||||||
Interest expense | 57.9 | 120.2 | 128.2 | 146.7 | 163.7 | 157.4 | ||||||||||||
Interest capitalized (c) | 1.6 | 1.0 | 0.3 | 0.6 | 2.6 | 2.0 | ||||||||||||
Interest factor applicable to rentals | 2.0 | 4.1 | 4.1 | 5.0 | 5.6 | 5.6 | ||||||||||||
Preferred stock dividends of subsidiary (a) | 2.6 | 4.7 | 5.1 | 5.3 | (0.3 | ) | 4.8 | |||||||||||
Total fixed charges as defined | 64.1 | 130.0 | 137.7 | 157.6 | 171.6 | 169.8 | ||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 5.3 | 4.2 | 3.5 | 3.5 | (d) | 1.9 | ||||||||||||
(a) Preferred stock dividends of subsidiary are computed by dividing the preferred stock dividends of subsidiary by 100% minus the income tax rate.
(b) Includes interest capitalized for the nonregulated segment.
(c) Includes AFUDC.
(d) For 2009, earnings were inadequate to cover fixed charges by $9.7 million, driven by the pre-tax noncash goodwill impairment loss of $291.1 million.
(e) Certain amounts have been retrospectively adjusted due to discontinued operations.