EX-12.1 4 dex121.txt RATIO OF EARNINGS TO FIXED CHARGES DQE EXHIBIT 12.1 DQE and Subsidiaries Calculation of Ratio of Earnings to Fixed Charges and Preferred and Preference Stock Dividend Requirements (Dollar Amounts in Millions)
Six Months Year Ended December 31, Ended June 30, ------------------------------------------------------- 2002 2001 2000 1999 1998 1997 -------------- ------------------------------------------------------- FIXED CHARGES: Interest on long-debt $ 29.7 $ 62.3 $ 73.6 $ 79.4 $ 81.1 $ 87.4 Other interest 7.6 26.7 36.1 28.2 14.6 13.8 Portion of lease payments representing an interest factor 1.7 3.1 6.8 43.0 44.1 44.2 Dividend requirement (a) 7.9 16.0 14.1 14.7 15.6 21.7 -------------- ------------------------------------------------------- Total Fixed Charges $ 46.9 $ 108.1 $130.6 $165.3 $155.4 $167.1 -------------- ------------------------------------------------------- EARNINGS: Income (Loss) from continuing operations $ (80.3) $ (153.3) $138.1 $201.5 $196.7 $199.1 Income taxes 14.4 (56.1) 70.3 110.7(b) l0l.0(b) 95.8(b) Fixed charges as above 46.9 108.1 130.6 165.3 155.4 167.1 -------------- ------------------------------------------------------- Total Earnings (Loss) $ (19.0) $ (l0l.3) $339.0 $477.5 $453.1 $462.0 -------------- ------------------------------------------------------- RATIO OF EARNINGS TO FIXED CHARGES (0.41)(c) (0.94)(c) 2.60 2.89 2.92 2.76 ============= =======================================================
(a) Includes annual dividend requirements of $12.6 million for the Monthly Income Preferred Securities per year. (b) Earnings related to income taxes reflect a $3.0 million, $12.0 million and $17.0 million decrease for the twelve months ended December 31, 1999, 1998 and 1997, respectively, due to a financial statement reclassification related to Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes. The ratio of earnings to fixed charges, absent this reclassification, equals 2.86, 2.99 and 2.87 for the twelve months ended December 31, 1999, 1998 and 1997, respectively. (c) In order to achieve a ratio of earnings to fixed charges of one to one, Total Earnings would need to increase by approximately $65.9 million and $209.4 million for the six months ended June 30, 2002 and the twelve months ended December 31. 2001, respectively.