Exhibit 12.1
TRANSCONTINENTAL GAS PIPE LINE CORPORATION
COMPUTATION OF EARNINGS TO FIXED CHARGES
Thousands of Dollars, except ratios
(UNAUDITED)
Thousands of Dollars, except ratios
(UNAUDITED)
For the | For the | |||||||||||||||||||||||||||
Six Months | Six Months | |||||||||||||||||||||||||||
Year Ended December 31, | Ended | Ended | ||||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | June 30, 2007 | June 30, 2008 | ||||||||||||||||||||||
Earnings Available for Fixed Charges: | ||||||||||||||||||||||||||||
Net Income | $ | 193,538 | $ | 179,454 | $ | 185,315 | $ | 117,251 | $ | 172,583 | $ | 81,744 | $ | 116,466 | ||||||||||||||
Adjustment for undistributed income of equity investees | 527 | 434 | 302 | (451 | ) | (881 | ) | (923 | ) | (124 | ) | |||||||||||||||||
Plus — Interest expense and portion of rents representative of the interest factor, net of interest capitalized, and amortization of debt expense, discount and premium | 91,667 | 88,968 | 80,105 | 86,380 | 95,355 | 46,798 | 48,987 | |||||||||||||||||||||
Federal income taxes | 75,839 | 68,707 | 96,420 | 13,183 | 105,847 | 32,492 | 54,943 | |||||||||||||||||||||
Deferred federal income taxes | 28,909 | 28,331 | (1,710 | ) | 48,785 | (13,375 | ) | 11,127 | 7,087 | |||||||||||||||||||
State and Municipal income taxes | 14,143 | 14,883 | 15,229 | 25,908 | 11,400 | 7,086 | 9,410 | |||||||||||||||||||||
Total | $ | 404,623 | $ | 380,777 | $ | 375,661 | $ | 291,056 | $ | 370,929 | $ | 178,324 | $ | 236,769 | ||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||
Interest on long-term debt | $ | 84,354 | $ | 84,397 | $ | 75,603 | $ | 85,212 | $ | 88,954 | 44,466 | 43,576 | ||||||||||||||||
Other interest expense (includes intercompany) | 2,260 | 2,061 | 1,916 | (2,132 | ) | 3,046 | 616 | 3,930 | ||||||||||||||||||||
Portion of rents representative of the interest factor, including amounts capitalized | 5,188 | 1,000 | 1,205 | 1,197 | 1,043 | 556 | 510 | |||||||||||||||||||||
Amortization of debt expense, discount and premium | 1,718 | 1,797 | 1,655 | 2,439 | 2,617 | 1,298 | 1,073 | |||||||||||||||||||||
Total | $ | 93,520 | $ | 89,255 | $ | 80,379 | $ | 86,716 | $ | 95,660 | $ | 46,936 | $ | 49,089 | ||||||||||||||
Ratio of earnings to fixed charges | 4.33 | 4.27 | 4.67 | 3.36 | 3.88 | 3.80 | 4.82 |
For purposes of calculating the ratio of earnings to fixed charges:
(a) | Earnings represent the aggregate of pre-tax income, adjusted for undistributed income of equity investees, and fixed charges, net of interest capitalized. | |
(b) | Fixed charges represent interest (whether expensed or capitalized), the amortization of total debt premium, discount and expense, and that portion of rentals considered to be representative of the interest factor. |