Exhibit 12 | |||||||||
TENNESSEE GAS PIPELINE COMPANY | |||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | |||||||||
(IN MILLIONS, EXCEPT FOR RATIO) | |||||||||
For The Nine Months Ended September 30, | |||||||||
2009 | 2008 | ||||||||
Earnings | |||||||||
Pre-tax income | $ | 159 | $ | 134 | |||||
Income from equity investee | (8) | (10) | |||||||
Pre-tax income before income from equity investee | 151 | 124 | |||||||
Fixed charges | 120 | 104 | |||||||
Distributed income of equity investee | 10 | 13 | |||||||
Allowance for funds used during construction | (2) | (2) | |||||||
Total earnings available for fixed charges | $ | 279 | $ | 239 | |||||
Fixed charges | |||||||||
Interest and debt expense | $ | 120 | $ | 104 | |||||
Ratio of earnings to fixed charges | 2.3 | 2.3 | |||||||
For purposes of computing these ratios, earnings means pre-tax income before: | |||||||||||||||||
- income from equity investee, adjusted to reflect actual distribution from equity investment; and | |||||||||||||||||
- fixed charges; | |||||||||||||||||
less | |||||||||||||||||
- allowance for funds used during construction. | |||||||||||||||||
�� | |||||||||||||||||
Fixed charges means the sum of the following: | |||||||||||||||||
- interest costs, not including interests on tax liabilities which is included in income tax expense on our income statement; | |||||||||||||||||
- amortization of debt costs; and | |||||||||||||||||
- that portion of rental expense which we believe represents an interest factor, which was not material for the nine months ended September 30, 2009 and 2008. |