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HOUSTON INDUSTRIES INCORPORATED
EXHIBIT 12
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HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES Exhibit 12
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(THOUSANDS OF DOLLARS)
Twelve Months Ended December 31,
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1995 1994 1993 1992 1991
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Fixed Charges as Defined:
(1) Interest on Long-Term Debt . . . . . . . $ 279,491 $ 265,494 $ 304,462 $ 338,771 $ 340,810
(2) Other Interest . . . . . . . . . . . . 21,586 25,076 15,145 23,323 42,353
(3) Preferred Dividends Factor of Subsidiary
(line 12). . . . . . . . . . . . . . . 44,933 51,718 52,399 58,204 67,433
(4) Interest Component of Rentals Charged to
Operating Expense . . . . . . . . . . 3,102 3,951 4,449 5,116 5,943
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(5) Total Fixed Charges . . . . . . . . . . $ 349,112 $ 346,239 $ 376,455 $ 425,414 $ 456,539
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Earnings as Defined:
(6) Income from Continuing Operations
Before Cumulative Effect of
Change in Accounting . . . . . . . . . . $ 397,400 $ 423,985 $ 440,531 $ 370,031 $ 484,275
(7) Income Taxes for Continuing Operations
Before Cumulative Effect of
Change in Accounting . . . . . . . . . 199,555 230,424 228,863 177,276 224,215
(8) Fixed Charges (line 5) . . . . . . . . . 349,112 346,239 376,455 425,414 456,539
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(9) Earnings from Continuing Operations
Before Cumulative Effect of Change
in Accounting, Income Taxes and Fixed
Charges . . . . . . . . . . . . . . . $ 946,067 $1,000,648 $1,045,849 $ 972,721 $1,165,029
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Preferred Dividends Factor of Subsidiary:
(10) Preferred Stock Dividends of Subsidiary $ 29,955 $ 33,583 $ 34,473 $ 39,327 $ 46,187
(11) Ratio of Pre-Tax Income from Continuing
Operations to Income from Continuing
Operations (line 6 plus line 7 divided
by line 6) . . . . . . . . . . . . . . 1.50 1.54 1.52 1.48 1.46
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(12) Preferred Dividends Factor of Subsidiary
(line 10 times line 11). . . . . . . . $ 44,933 $ 51,718 $ 52,399 $ 58,204 $ 67,433
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Ratio of Earnings from Continuing Operations
to Fixed Charges Before Cumulative
Effect of Change in Accounting
(line 9 divided by line 5) . . . . . . . . 2.71 2.89 2.78 2.29 2.55