EX-12 2 a12-8832_1ex12.htm EX-12

Exhibit 12

 

INTEGRYS ENERGY GROUP, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Three Months Ended
March 31

 

For the Years Ended December 31

 

(Millions, except ratio)

 

2012

 

2011

 

2010

 

2009

 

2008

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

97.8

 

$

230.9

 

$

223.5

 

$

(70.3

)

$

114.8

 

$

181.0

 

Provision for income taxes

 

46.8

 

133.9

 

148.2

 

83.7

 

61.1

 

86.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

144.6

 

364.8

 

371.7

 

13.4

 

175.9

 

267.0

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Undistributed earnings of less than 50% owned affiliates

 

(4.1

)

(15.8

)

(14.8

)

(16.2

)

(16.4

)

3.8

 

Preferred stock dividends of subsidiary (a)

 

(1.2

)

(5.1

)

(5.3

)

0.7

 

(4.8

)

(5.2

)

Interest capitalized (b)

 

—

 

—

 

—

 

(0.2

)

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income (loss) from continuing operations before income taxes

 

139.3

 

343.9

 

351.6

 

(2.3

)

154.7

 

265.6

 

Total fixed charges as defined

 

32.7

 

138.3

 

158.8

 

172.3

 

170.5

 

174.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earnings as defined

 

$

172.0

 

$

482.2

 

$

510.4

 

$

170.0

 

$

325.2

 

$

440.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

30.5

 

$

128.8

 

$

147.9

 

$

164.8

 

$

158.1

 

$

164.5

 

Interest capitalized (c)

 

0.1

 

0.3

 

0.6

 

2.6

 

2.0

 

0.3

 

Interest factor applicable to rentals

 

0.9

 

4.1

 

5.0

 

5.6

 

5.6

 

4.6

 

Preferred stock dividends of subsidiary (a)

 

1.2

 

5.1

 

5.3

 

(0.7

)

4.8

 

5.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges as defined

 

$

32.7

 

$

138.3

 

$

158.8

 

$

172.3

 

$

170.5

 

$

174.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES

 

5.3

 

3.5

 

3.2

 

(d)

 

1.9

 

2.5

 

 

(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 segments.

 

 

 

(c)

 

Includes allowance for funds used during construction.

 

 

 

(d)

 

For 2009, earnings were inadequate to cover fixed charges by $2.3 million, driven by a pre-tax noncash goodwill impairment loss of $291.1 million.