EXHIBIT (12) (a)
Exhibit (12) (a)
CMS ENERGY CORPORATION
Ratio of Earnings to Fixed Charges and Preferred Securities Dividends
and Distributions
(Millions of Dollars)
Years Ended December 31 -
2003 2002 2001 2000 1999
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Restated Restated
(b) (c) (d) (e)
Earnings as defined (a)
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Consolidated net income $ (44) $(650) $(459) $ 5 $ 277
Discontinued operations (23) 274 128 (83) (70)
Income taxes 58 (41) (94) 72 64
Exclude equity basis subsidiaries (41) (39) 68 (171) (45)
Fixed charges as defined, adjusted to
exclude capitalized interest of $9, $16,
$35, $47, and $41 million for the
years ended December 31, 2003, 2002,
2001, 2000, and 1999, respectively 608 565 631 562 625
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Earnings as defined $ 558 $ 109 $ 274 $ 385 $ 851
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Fixed charges as defined (a)
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Interest on long-term debt $ 531 404 $ 420 $ 420 $ 502
Estimated interest portion of lease rental 8 10 11 11 11
Other interest charges 59 32 83 34 58
Preferred securities dividends and
distributions 19 135 152 144 95
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Fixed charges as defined $ 617 $ 581 $ 666 $ 609 $ 666
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Ratio of earnings to fixed charges and
preferred securities dividends and distributions - - - - 1.28
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NOTES:
(a) Earnings and fixed charges as defined in instructions for Item 503 of
Regulation S-K.
(b) For the year ended December 31, 2003, fixed charges exceeded earnings by $59
million. Earnings as defined include $95 million of asset impairment charges.
The ratio of earnings to fixed charges and preferred Securities dividends and
distributions would have been 1.06 excluding these amounts.
(c) For the year ended December 31, 2002, fixed charges exceeded earnings by
$472 million. Earnings as defined include $602 million of asset impairment
charges. The ratio of earnings to fixed charges and preferred securities
dividends and distributions would have been 1.22 excluding these amounts.
(d) For the year ended December 31, 2001, fixed charges exceeded earnings by
$392 million. Earnings as defined include $323 million of asset impairment
charges.
(e) For the year ended December 31, 2000, fixed charges exceeded earnings by
$224 million. Earnings as defined include a $329 million pretax impairment loss
on the Loy Yang investment. The ratio of earnings to fixed charges and preferred
securities dividends and distributions would have been 1.17 excluding this
amount.