EX-12 14 compofratio.htm COMPUTATION OF RATIO OF EARNINGS Computation of Ratio of Earnings
 

MDU RESOURCES GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

   
Years Ended December 31,
  
   
2006
  
2005
  
2004
  
2003
  
2002
  
   
(In thousands of dollars)
  
                       
Earnings Available for Fixed Charges:
                      
                       
Net Income (a)
  
$
313,535
  
$
260,697
  
$
184,805
  
$
170,956
  
$
148,444
  
                                 
Income Taxes (b)
    
165,247
    
145,779
    
93,974
    
93,751
    
86,230
  
                                 
     
478,782
    
406,476
    
278,779
    
264,707
    
234,674
  
                                 
Rents (c)
    
7,891
    
11,335
    
10,194
    
9,073
    
8,156
  
                                 
Interest (d)
    
74,865
    
56,807
    
59,101
    
54,354
    
51,393
  
                                 
Total Earnings Available for Fixed Charges
  
$
561,538
  
$
474,618
  
$
348,074
  
$
328,134
  
$
294,223
  
                                 
Preferred Dividend Requirements
  
$
685
  
$
685
  
$
685
  
$
717
  
$
756
  
                                 
Ratio of Income Before Income Taxes to Net
Income
    
152
%
  
153
%
  
145
%
  
153
%
  
158
%
                                 
Preferred Dividend Factor on Pretax Basis
    
1,041
    
1,048
    
993
    
1,097
    
1,194
  
                                 
Fixed Charges (e)
    
87,632
    
76,814
    
72,877
    
68,141
    
59,549
  
                                 
Combined Fixed Charges and Preferred Stock
Dividends
  
$
88,673
  
$
77,862
  
$
73,870
  
$
69,238
  
$
60,743
  
                                 
Ratio of Earnings to Fixed Charges
    
6.4x
    
6.2x
    
4.8x
    
4.8x
    
4.9x
  
                                 
Ratio of Earnings Fixed Charges and Preferred
Stock Dividends
    
6.3x
    
6.1x
    
4.7x
    
4.7x
    
4.8x
  
 
(a)  
Net income excludes undistributed income for equity investees.
 
(b)  
Includes income tax benefits of $4,821 associated with the cumulative effect of accounting change for the twelve months ended December 31, 2003.
 
(c)  
Represents interest portion of rents estimated at 33 1/3%.

(d)  
Represents interest, amortization of debt discount and expense on all indebtedness and amortization of interest capitalized, and excludes amortization of gains or losses on reacquired debt (which, under the Federal Energy Regulatory Commission Uniform System of Accounts, is classified as a reduction of, or increase in, interest expense in the Consolidated Statements of Income) and interest capitalized.

(e)  
Represents rents (as defined above), interest, amortization of debt discount and expense on all indebtedness, and excludes amortization of gains or losses on reacquired debt (which, under the Federal Energy Regulatory Commission Uniform System of Accounts, is classified as a reduction of, or increase in, interest expense in the Consolidated Statements of Income).