EX-12.(A) 2 dex12a.htm COMPUTATIONS OF RATIO OF CONSOLIDATED EARNINGS TO FIXED CHARGES Computations of Ratio of Consolidated Earnings to Fixed Charges

Exhibit 12 (a)

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,  
     2010      2009      2008      2007      2006  

Earnings from continuing operations (a)

    $ 293,591       $ 200,226       $ 182,139       $ 232,224       $ 221,715   
                                            

Fixed Charges:

               

Interest expense (b)

      179,272         162,217         126,986         116,973         102,703   

Interest on corporate-owned life insurance borrowings

      68,926         68,401         58,207         55,164         52,234   

Interest applicable to rentals (b)

      4,325         22,353         23,227         22,713         21,959   
                                            

Total Fixed Charges (c)

      252,523         252,971         208,420         194,850         176,896   
                                            

Distributed income of equity investees

      —           —           —           —           —     
                                            

Preferred Dividend Requirements:

               

Preferred dividends

      970         970         970         970         970   

Income tax required

      396         404         22         368         330   
                                            

Total Preferred Dividend Requirements (d)

      1,366         1,374         992         1,338         1,300   
                                            

Total Fixed Charges and Preferred

               

Dividend Requirements

      253,889         254,345         209,412         196,188         178,196   
                                            

Earnings (e)

    $ 546,114       $ 453,197       $ 390,559       $ 427,074       $ 398,611   
                                            

Ratio of Earnings to Fixed Charges

      2.16         1.79         1.87         2.19         2.25   

Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements

      2.15         1.78         1.87         2.18         2.24   

 

  (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) As a result of consolidating variable interest entities as discussed in Note 17 of the Notes to Consolidated Financial Statements, “Variable Interest Entities,” amounts previously reported as interest applicable to rentals were reported as interest expense in 2010.

 

  (c) Fixed charges consist of all interest on indebtedness, interest on uncertain tax positions, interest on corporate-owned life insurance policies, amortization of debt discount and expense, and the portion of rental expense that represents an interest factor.

 

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

 

  (e) Earnings are deemed to consist of earnings from continuing operations, fixed charges and distributed income of equity investees.