EX-12 7 dex12.htm COMPUTATIONS OF RATIO OF CONSOLIDATED EARNINGS TO FIXED CHARGES COMPUTATIONS OF RATIO OF CONSOLIDATED EARNINGS TO FIXED CHARGES

 

Exhibit 12

 

 

WESTAR ENERGY, INC.

Computations of Ratio of Earnings to Fixed Charges and

Computations of Ratio of Earnings to Combined Fixed Charges

and Preferred and Preference Dividend Requirements

(Dollars in Thousands)

 

 

    

Year Ended December 31,


    

2002


    

2001


    

2000


  

1999


    

1998


Earnings (losses) from continuing operations (a)

  

$

(443,551

)

  

$

(123,218

)

  

$

196,538

  

$

(48,798

)

  

$

58,088

    


  


  

  


  

Fixed Charges:

                                        

Interest expense

  

 

271,529

 

  

 

269,545

 

  

 

290,879

  

 

294,104

 

  

 

226,120

Interest on Corporate-owned Life Insurance Borrowings

  

 

52,768

 

  

 

50,408

 

  

 

45,634

  

 

36,908

 

  

 

38,236

Interest Applicable to Rentals

  

 

26,394

 

  

 

28,908

 

  

 

28,898

  

 

34,252

 

  

 

32,796

    


  


  

  


  

Total Fixed Charges

  

 

350,691

 

  

 

348,861

 

  

 

365,411

  

 

365,264

 

  

 

297,152

    


  


  

  


  

Distributed income of equity investees

  

 

2,916

 

  

 

2,769

 

  

 

2,686

  

 

3,728

 

  

 

3,812

    


  


  

  


  

Preferred and Preference Dividend Requirements:

                                        

Preferred and Preference Dividends (e)

  

 

399

 

  

 

895

 

  

 

1,129

  

 

1,129

 

  

 

3,591

Income Tax Required

  

 

264

 

  

 

591

 

  

 

746

  

 

746

 

  

 

1,095

    


  


  

  


  

Total Preferred and Preference Dividend Requirements

  

 

663

 

  

 

1,486

 

  

 

1,875

  

 

1,875

 

  

 

4,686

    


  


  

  


  

Total Fixed Charges and Preferred and Preference Dividend Requirements

  

 

351,354

 

  

 

350,347

 

  

 

367,286

  

 

367,139

 

  

 

301,838

    


  


  

  


  

Earnings (losses) (b)

  

$

(89,944

)

  

$

228,412

 

  

$

564,635

  

$

320,194

 

  

$

359,052

    


  


  

  


  

Ratio of Earnings to Fixed Charges

  

 

(c)

 

  

 

(c)

 

  

 

1.55

  

 

(c)

 

  

 

1.21

Ratio of Earnings to Combined Fixed Charges and Preferred and Preference Dividend Requirements

  

 

(d)

 

  

 

(d)

 

  

 

1.54

  

 

(d)

 

  

 

1.19

 

(a)   Earnings (losses) from continuing operations consists of earnings (losses) before income taxes adjusted for minority interest and undistributed earnings from equity investees.

 

(b)   Earnings (losses) are deemed to consist of earnings (losses) from continuing operations, fixed charges and distributed income of equity investees. Fixed charges consist of all interest on indebtedness, amortization of debt discount and expense, and the portion of rental expense which represents an interest factor.

 

(c)   The company’s earnings (losses) were deficient to cover fixed charges by $440.6 million, $120.4 million and $45.1 million at December 31, 2002, 2001 and 1999, respectively.

 

(d)   The company’s earnings (losses) were deficient to cover fixed charges and preferred and preference dividend requirements by $441.3 million, $121.9 million and $46.9 million at December 31, 2002, 2001 and 1999, respectively.

 

(e)   Preferred and preference dividend requirements consist of an amount equal to the pre-tax earnings which would be required to meet dividend requirements on preferred and preference stock.