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(1) |
Earnings and fixed charges are defined and computed in accordance
with Item 503 of Regulation S-K. |
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(2) |
This amount represents the aggregate of (a) the pre-tax
income from continuing operations of MCN and its majority-owned
subsidiaries, (b) MCN’s share of pre-tax income of its
50% owned companies, and (c) any income actually received
from less than 50% owned companies. |
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(3) |
Fixed charges added to earnings are adjusted to exclude interest
capitalized during the period for nonutility companies and the
preferred securities dividend requirements of MichCon included in
fixed charges but not deducted in the determination of pre-tax
income. |
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(4) |
Fixed charges represent (a) interest, whether expensed or
capitalized, (b) amortization of debt discount, premium and
expense, (c) an estimate of interest implicit in rentals,
and (d) preferred securities dividend requirements of
subsidiaries, increased to reflect the pre-tax earnings
requirement for MichCon. |
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(5) |
In June 1996, MCN completed the sale of The Genix Group, its
computer operations subsidiary. For purposes of calculating the
Ratio of Earnings to Fixed Charges, it has been classified as a
discontinued operation and therefore excluded from the ratio for
all periods presented. |
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(6) |
The E&P segment has been reclassified from discontinued
operations to continuing operations as described in Note 6 to the
Consolidated Financial Statements included herein. Therefore,
for purposes of calculating the Ratio of Earnings to Fixed
Charges, E&P financial information is included in the ratio
for all periods presented. |
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(7) |
For the twelve-month period ended June 30, 1999, MCN
recorded several unusual charges, consisting of property
write-downs, investment losses, restructuring charges and losses
on sale of properties, totaling $396,050,000 pre-tax
($252,511,000 net of taxes and minority interest). |
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(8) |
For the twelve-month period ended December 31, 1998, MCN
recorded several unusual charges, consisting of property
write-downs, investment losses and restructuring charges,
totaling $606,953,000 pre-tax ($389,598,000 net of taxes and
minority interest). |
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(9) |
Earnings for the twelve-month period ended June 30, 1999,
were not adequate to cover fixed charges. The amount of the
coverage deficiency was $282,913,000. The Ratio of Earnings to
Fix Charges excluding unusual charges would have been 1.63. |
