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Successor Company
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Predecessor Company
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(In millions, except ratios)
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(In millions, except ratios)
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Year Ended December 31,
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Seven Months Ended
December 31,
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Five Months
Ended
May 31,
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2011
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2010
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2009
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2008
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2007
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2007
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Earnings:
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Pre-tax income from continuing operations before cumulative effect of a change in accounting principle and before adjustment for noncontrolling interests and equity earnings (including amortization of excess cost of equity investments) per statements of income
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$ | 708.6 | $ | 659.9 | $ | 883.3 | $ | (3,093.4 | ) | $ | 460.6 | $ | (44.8 | ) | ||||||||||
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Add:
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Fixed charges
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766.3 | 703.8 | 656.5 | 751.4 | 642.5 | 285.4 | ||||||||||||||||||
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Amortization of capitalized interest
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4.4 | 4.0 | 3.8 | 3.0 | 1.0 | 1.0 | ||||||||||||||||||
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Distributed income of equity investees
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286.6 | 219.8 | 277.0 | 241.2 | 84.6 | 47.6 | ||||||||||||||||||
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Less:
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Interest capitalized from continuing operations
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(14.5 | ) | (12.5 | ) | (32.9 | ) | (49.5 | ) | (25.4 | ) | (12.4 | ) | ||||||||||||
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Noncontrolling interests in pre-tax income of subsidiaries with no fixed charges
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(21.5 | ) | (107.4 | ) | (82.7 | ) | (126.2 | ) | (55.2 | ) | (27.0 | ) | ||||||||||||
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Income as adjusted
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$ | 1,729.9 | $ | 1,467.6 | $ | 1,705.0 | $ | (2,273.5 | ) | $ | 1,108.1 | $ | 249.8 | |||||||||||
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Fixed charges:
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Interest and debt expense, net per statements of income (includes amortization of debt discount, premium, and debt issuance costs; excludes capitalized interest)
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$ | 717.8 | $ | 680.8 | $ | 632.0 | $ | 725.3 | $ | 628.9 | $ | 275.7 | ||||||||||||
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Add:
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Portion of rents representative of the interest factor
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48.5 | 23.0 | 24.5 | 26.1 | 13.6 | 9.7 | ||||||||||||||||||
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Fixed charges
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$ | 766.3 | $ | 703.8 | $ | 656.5 | $ | 751.4 | $ | 642.5 | $ | 285.4 | ||||||||||||
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Ratio of earnings to fixed charges
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2.26 | 2.09 | 2.60 |
(a)
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1.72 |
(a)
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(a)
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For the year ended December 31, 2008 and the five months ended May 31, 2007, fixed charges exceeded earnings by $3,024.9 million and $35.6 million, respectively. In 2008, Kinder Morgan, Inc. recognized a $4,033.3 million non-cash goodwill impairment charge associated with its investment in Kinder Morgan Energy Partners, L.P. During the five months ended May 31, 2007, Kinder Morgan, Inc. recognized a $377.1 million non-cash goodwill impairment charge associated with its investment in Trans Mountain.
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