EX-12.1 2 exhibit12.htm EXHIBIT Exhibit 12


 
 
 
 
 
Exhibit 12
 
INTEGRYS ENERGY GROUP, INC
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
 
 
 
 
 
 
 
Six Months Ended
For the Years Ended December 31
(Millions, except ratio)
June 30, 2013
2012

2011 (e)

2010 (e)

2009 (e)

2008 (e)

 
 
 
 
 
 
 
EARNINGS
 
 
 
 
 
 
Net income (loss) from continuing operations
$
178.3

$
294.0

$
230.0

$
245.2

$
(74.8
)
$
112.4

Provision for income taxes
106.3

149.8

133.3

162.3

81.2

59.8

 
 
 
 
 
 
 
Income from continuing operations before income taxes
284.6

443.8

363.3

407.5

6.4

172.2

 
 
 
 
 
 
 
Less:
 
 
 
 
 
 
    Undistributed earnings of less than 50% owned affiliates
(8.8
)
(16.8
)
(15.8
)
(14.8
)
(16.2
)
(16.4
)
    Preferred stock dividends of subsidiary (a)
(2.6
)
(4.7
)
(5.1
)
(5.3
)
0.3

(4.8
)
    Interest capitalized (b)




(0.2
)

 
 
 
 
 
 
 
Adjusted income (loss) from continuing operations before income taxes
273.2

422.3

342.4

387.4

(9.7
)
151.0

Total fixed charges as defined
64.1

130.0

137.7

157.6

171.6

169.8

 
 
 
 
 
 
 
Total earnings as defined
337.3

552.3

480.1

545.0

161.9

320.8

 
 
 
 
 
 
 
FIXED CHARGES
 
 
 
 
 
 
Interest expense
57.9

120.2

128.2

146.7

163.7

157.4

Interest capitalized (c)
1.6

1.0

0.3

0.6

2.6

2.0

Interest factor applicable to rentals
2.0

4.1

4.1

5.0

5.6

5.6

Preferred stock dividends of subsidiary (a)
2.6

4.7

5.1

5.3

(0.3
)
4.8

 
 
 
 
 
 
 
Total fixed charges as defined
64.1

130.0

137.7

157.6

171.6

169.8

 
 
 
 
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES
5.3

4.2

3.5

3.5

(d) 

1.9

 
 
 
 
 
 
 

(a) Preferred stock dividends of subsidiary are computed by dividing the preferred stock dividends of subsidiary by 100% minus the income tax rate.

(b) Includes interest capitalized for the nonregulated segment.

(c) Includes AFUDC.

(d) For 2009, earnings were inadequate to cover fixed charges by $9.7 million, driven by the pre-tax noncash goodwill impairment loss of $291.1 million.

(e) Certain amounts have been retrospectively adjusted due to discontinued operations.