Exhibit 12.1
TRANSCONTINENTAL GAS PIPE LINE COMPANY, LLC
COMPUTATION OF EARNINGS TO FIXED CHARGES
Thousands of Dollars, except ratios
(UNAUDITED)
Year Ended December 31, | For the Nine Months Ended September 30, 2015 | For the Nine Months Ended September 30, 2016 | ||||||||||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | ||||||||||||||||||||||||
Earnings Available for Fixed Charges: | ||||||||||||||||||||||||||||
Net Income | $ | 279,658 | $ | 272,466 | $ | 374,026 | $ | 422,884 | $ | 575,457 | $ | 427,122 | $ | 384,471 | ||||||||||||||
Adjustment for undistributed income of equity investees | (851 | ) | (4,506 | ) | 4,366 | 1,022 | 40 | (152 | ) | (36 | ) | |||||||||||||||||
Plus — Interest expense and portion of rents representative of the interest factor, net of interest capitalized, and amortization of debt expense, discount and premium | 95,420 | 89,464 | 84,614 | 85,395 | 84,707 | 62,452 | 115,742 | |||||||||||||||||||||
Federal income taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Deferred federal income taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
State and Municipal income taxes | 368 | 348 | 1,303 | 384 | 167 | 1,145 | 790 | |||||||||||||||||||||
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Total | $ | 374,595 | $ | 357,772 | $ | 464,309 | $ | 509,685 | $ | 660,371 | $ | 490,567 | $ | 500,967 | ||||||||||||||
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Fixed Charges: | ||||||||||||||||||||||||||||
Interest on long-term debt | $ | 92,685 | $ | 87,056 | $ | 81,006 | $ | 81,006 | $ | 81,006 | $ | 60,755 | $ | 109,148 | ||||||||||||||
Other interest expense (includes intercompany) | (373 | ) | (130 | ) | 1,941 | 2,626 | 461 | 357 | 3,454 | |||||||||||||||||||
Portion of rents representative of the interest factor, including amounts capitalized | 1,043 | 1,274 | 1,270 | 1,265 | 3,826 | 1,045 | 3,814 | |||||||||||||||||||||
Amortization of debt expense, discount and premium | 2,383 | 1,662 | 755 | 868 | 883 | 661 | 990 | |||||||||||||||||||||
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Total | $ | 95,738 | $ | 89,862 | $ | 84,972 | $ | 85,765 | $ | 86,176 | $ | 62,818 | $ | 117,406 | ||||||||||||||
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Ratio of earnings to fixed charges | 3.91 | 3.98 | 5.46 | 5.94 | 7.66 | 7.81 | 4.27 |
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. |