Exhibit 12.1
KINDER MORGAN, INC. AND SUBSIDIARIES
EXHIBIT 12.1 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions except ratio amounts)
Year Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Earnings: | |||||||||||||||||||
Pre-tax income before adjustment for net income attributable to noncontrolling interests and earnings from equity investments (including amortization of excess cost of equity investments) per statements of income | $ | 1,644 | $ | 1,200 | $ | 439 | $ | 2,730 | $ | 3,150 | |||||||||
Add: | |||||||||||||||||||
Fixed charges | 1,959 | 1,977 | 2,174 | 1,921 | 1,785 | ||||||||||||||
Amortization of capitalized interest | 13 | 13 | 9 | 5 | 6 | ||||||||||||||
Distributed income of equity investees | 426 | 431 | 391 | 381 | 398 | ||||||||||||||
Less: | |||||||||||||||||||
Interest capitalized from continuing operations | (66 | ) | (77 | ) | (71 | ) | (75 | ) | (52 | ) | |||||||||
Preference security dividend requirements of consolidated subsidiaries | (8 | ) | — | — | — | — | |||||||||||||
Noncontrolling interest in pre-tax income of subsidiaries with no fixed charges | (12 | ) | (11 | ) | (4 | ) | (377 | ) | (390 | ) | |||||||||
Income as adjusted | $ | 3,956 | $ | 3,533 | $ | 2,938 | $ | 4,585 | $ | 4,897 | |||||||||
Fixed charges: | |||||||||||||||||||
Interest and debt expense, net per statements of income (includes amortization of debt discount, premium, and debt issuance costs); also excludes gain or loss on early extinguishment of debt and includes capitalized interest | $ | 1,904 | $ | 1,931 | $ | 2,126 | $ | 1,882 | $ | 1,742 | |||||||||
Add: | |||||||||||||||||||
Portion of rents representative of the interest factor | 47 | 46 | 48 | 39 | 43 | ||||||||||||||
Preference security dividend requirements of consolidated subsidiaries | 8 | — | — | — | — | ||||||||||||||
Fixed charges | $ | 1,959 | $ | 1,977 | $ | 2,174 | $ | 1,921 | $ | 1,785 | |||||||||
Ratio of earnings to fixed charges | 2.02 | 1.79 | 1.35 | 2.39 | 2.74 |