EX-12 3 aes12312016ex-12.htm EXHIBIT 12
Exhibit 12
The AES Corporation and Subsidiaries
Statement Re: Calculation of Ratio of Earnings to Fixed Charges
(in millions, unaudited)

| 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012
Actual: |  |  |  |  |  |  |  |  |
Computation of earnings: |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes and equity in earnings of affiliates | $ | 137 |  |  | $ | 1,154 |  |  | $ | 1,443 |  |  | $ | 997 |  |  | $ | 79 |
Fixed charges | 1,669 |  |  | 1,556 |  |  | 1,579 |  |  | 1,590 |  |  | 1,680 |
Amortization of capitalized interest | 9 |  |  | 17 |  |  | 19 |  |  | 24 |  |  | 32 |
Distributed income of equity investees | 14 |  |  | 16 |  |  | 28 |  |  | 2 |  |  | 5 |
Less: |  |  |  |  |  |  |  |  |
Capitalized interest | (131 | ) |  | (96 | ) |  | (73 | ) |  | (56 | ) |  | (78 | )
Preference security dividend of consolidated subsidiary | (2 | ) |  | (10 | ) |  | (5 | ) |  | (6 | ) |  | (6 | )
Noncontrolling interests in pretax income of subsidiaries that have not incurred fixed charges | (40 | ) |  | (28 | ) |  | (26 | ) |  | (40 | ) |  | (4 | )
Earnings | $ | 1,656 |  |  | $ | 2,609 |  |  | $ | 2,965 |  |  | $ | 2,511 |  |  | $ | 1,708 |
Fixed charges: |  |  |  |  |  |  |  |  |
Interest expense, debt premium and discount amortization | $ | 1,509 |  |  | $ | 1,430 |  |  | $ | 1,485 |  |  | $ | 1,516 |  |  | $ | 1,580 |
Capitalized interest | 131 |  |  | 96 |  |  | 73 |  |  | 56 |  |  | 78 |
Preference security dividend of consolidated subsidiary | 2 |  |  | 10 |  |  | 5 |  |  | 6 |  |  | 6 |
Interest portion of rental expense (1) | 27 |  |  | 20 |  |  | 16 |  |  | 12 |  |  | 16 |
Fixed charges | $ | 1,669 |  |  | $ | 1,556 |  |  | $ | 1,579 |  |  | $ | 1,590 |  |  | $ | 1,680 |
Ratio of earnings to fixed charges | 0.99 |  |  | 1.68 |  |  | 1.88 |  |  | 1.58 |  |  | 1.02 |

(1) | Calculated as one-third of rental expense, which is deemed to be representative of the interest factor in rental expense.