EX-12.1 2 kmi-20121231x10kxexh121.htm EXHIBIT KMI-2012.12.31-10K-Exh12.1


Exhibit 12.1
KINDER MORGAN, INC. AND SUBSIDIARIES
EXHIBIT 12.1 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions except ratio amounts)
 
Year Ended December 31,
 
2012
 
2011
 
2010
 
2009
 
2008
Earnings:
 
 
 
 
 
 
 
 
 
Pre-tax income from continuing operations before cumulative effect of a change in accounting principle and before adjustment for noncontrolling interests and equity earnings (including amortization of excess cost of equity investments) per statements of income
$
1,873

 
$
591

 
$
510

 
$
730

 
$
(3,249
)
Add:
 
 
 
 
 
 
 
 
 
Fixed charges
1,486

 
766

 
704

 
656

 
751

Amortization of capitalized interest
5

 
5

 
4

 
4

 
3

Distributed income of equity investees
311

 
200

 
132

 
128

 
158

Less:
 
 
 
 
 
 
 
 
 
Interest capitalized from continuing operations
(27
)
 
(15
)
 
(13
)
 
(33
)
 
(50
)
Noncontrolling interest in pre-tax income of subsidiaries with no fixed charges
17

 
(22
)
 
(107
)
 
(83
)
 
(126
)
Income (loss) as adjusted
$
3,665

 
$
1,525

 
$
1,230

 
$
1,402

 
$
(2,513
)
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest and debt expense, net per statements of income (includes amortization of debt discount, premium, and debt issuance costs; excludes capitalized interest)
$
1,454

 
$
718

 
$
681

 
$
632

 
$
725

Add:
 
 
 
 
 
 
 
 
 
Portion of rents representative of the interest factor
32

 
48

 
23

 
24

 
26

Fixed charges
$
1,486

 
$
766

 
$
704

 
$
656

 
$
751

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
2.47

 
1.99

 
1.75

 
2.14

 
(a)
_____________
(a) For the year ended December 31, 2008, fixed charges exceeded earnings by $3,264 million. In 2008, Kinder Morgan, Inc. recognized a $4,033 million non-cash goodwill impairment charge associated with its investment in Kinder Morgan Energy Partners, L. P.