EX-12 3 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 Dividend Requirements

(Dollars in Thousands)

 

     Year Ended December 31,

     2003

   2002

   2001

   2000

   1999

Earnings from continuing operations (a)

   $ 162,812    $ 78,528    $ 48,224    $ 166,612    $ 67,034
    

  

  

  

  

Fixed Charges:

                                  

Interest expense

     225,901      237,418      224,777      296,984      209,532

Interest on corporate-owned life insurance borrowings

     52,839      52,768      50,409      45,634      36,908

Interest applicable to rentals

     23,084      24,647      30,377      29,377      30,853
    

  

  

  

  

Total Fixed Charges

     301,824      314,833      305,563      371,995      277,293
    

  

  

  

  

Distributed income of equity investees

     —        2,916      2,769      2,686      3,728
    

  

  

  

  

Preferred Dividend Requirements:

                                  

Preferred dividends (b)

     968      399      895      1,129      1,129

Income tax required

     639      264      591      746      746
    

  

  

  

  

Total Preferred Dividend Requirements

     1,607      663      1,486      1,875      1,875
    

  

  

  

  

Total Fixed Charges and Preferred Dividend Requirements

     303,431      315,496      307,049      373,870      279,168
    

  

  

  

  

Earnings (c)

   $ 464,636    $ 396,277    $ 356,556    $ 541,293    $ 348,055
    

  

  

  

  

Ratio of Earnings to Fixed Charges

     1.54      1.26      1.17      1.46      1.26

Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements

     1.53      1.26      1.16      1.45      1.25

(a) Earnings from continuing operations consist of income from continuing operations before income taxes, cumulative effects of accounting changes and preferred dividends adjusted for undistributed earnings from equity investees.
(b) Preferred dividend requirements consist of an amount equal to the pre-tax earnings that would be required to meet dividend requirements on preferred stock.
(c) Earnings are deemed to consist of earnings 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 that represents an interest factor.