Exhibit 12(a)2 |
THE SOUTHERN COMPANY |
Computation of ratio of earnings to fixed charges plus preferred and preference |
dividend requirements for the five years ended December 31, 2010 |
and the year to date September 30, 2011 |
Nine | ||||||||||||||||||
Months | ||||||||||||||||||
Ended | ||||||||||||||||||
Year ended December 31, | September 30, | |||||||||||||||||
2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |||||||||||||
----------------------------------------Millions of Dollars----------------------------------------- | ||||||||||||||||||
EARNINGS AS DEFINED IN ITEM 503 OF REGULATION S-K: | ||||||||||||||||||
Earnings Before Income Taxes | $ | 2,446 | $ | 2,641 | $ | 2,711 | $ | 2,604 | $ | 3,066 | $ | 3,114 | ||||||
Interest expense, net of amounts capitalized | 868 | 888 | 869 | 907 | 898 | 639 | ||||||||||||
Interest component of rental expense | 82 | 80 | 88 | 94 | 112 | 94 | ||||||||||||
Amortization of capitalized interest | 2 | 2 | 2 | 3 | 3 | 2 | ||||||||||||
AFUDC - Debt funds | 21 | 48 | 64 | 82 | 74 | 41 | ||||||||||||
Less: Dividends on preferred and preference stock of subsidiaries | (35) | (48) | (65) | (65) | (65) | (49) | ||||||||||||
Earnings as defined | $ | 3,384 | $ | 3,611 | $ | 3,669 | $ | 3,625 | $ | 4,088 | $ | 3,841 | ||||||
FIXED CHARGES AS DEFINED IN ITEM 503 OF REGULATION S-K: | ||||||||||||||||||
Interest on long-term debt | $ | 629 | 743 | 813 | 876 | 885 | 648 | |||||||||||
Interest on affiliated loans | 122 | 66 | 23 | 22 | 19 | 14 | ||||||||||||
Interest on interim obligations | 77 | 75 | 30 | 4 | 2 | 3 | ||||||||||||
Amort of debt disc, premium and expense, net | 58 | 46 | 40 | 40 | 42 | 31 | ||||||||||||
Other interest charges | 3 | 7 | 27 | 46 | 24 | (16) | ||||||||||||
Capitalized interest | 17 | 17 | 7 | 2 | 12 | 12 | ||||||||||||
Interest component of rental expense | 82 | 80 | 87 | 94 | 112 | 94 | ||||||||||||
Fixed charges as defined | 988 | 1,034 | 1,027 | 1,084 | 1,096 | 786 | ||||||||||||
Tax deductible preferred dividends | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||||||
989 | 1,035 | 1,028 | 1,085 | 1,097 | 787 | |||||||||||||
Non-tax deductible preferred and preference dividends | 33 | 46 | 64 | 64 | 64 | 48 | ||||||||||||
Ratio of net income before taxes to net income | x | 1.485 | x | 1.469 | x | 1.507 | x | 1.525 | x | 1.503 | x | 1.564 | ||||||
Preferred and preference dividend requirements before income taxes | 49 | 68 | 96 | 98 | 96 | 75 | ||||||||||||
Fixed charges plus preferred and preference dividend requirements | $ | 1,038 | $ | 1,103 | $ | 1,124 | $ | 1,183 | $ | 1,193 | $ | 862 | ||||||
RATIO OF EARNINGS TO FIXED CHARGES PLUS | ||||||||||||||||||
PREFERRED DIVIDEND REQUIREMENTS | 3.26 | 3.27 | 3.26 | 3.06 | 3.43 | 4.46 |