EX-12 3 aes12312017exhibit12.htm EXHIBIT 12
Exhibit 12
The AES Corporation and Subsidiaries
Statement Re: Calculation of Ratio of Earnings to Fixed Charges
(in millions, unaudited)

| 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Actual: |  |  |  |  |  |  |  |  |
Computation of earnings: |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes and equity in earnings of affiliates | $ | 771 |  |  | $ | 187 |  |  | $ | 989 |  |  | $ | 1,224 |  |  | $ | 1,069 |
Fixed charges | 1,539 |  |  | 1,658 |  |  | 1,547 |  |  | 1,574 |  |  | 1,582 |
Amortization of capitalized interest | 33 |  |  | 31 |  |  | 30 |  |  | 30 |  |  | 29 |
Distributed income of equity investees | 103 |  |  | 14 |  |  | 16 |  |  | 28 |  |  | 2 |
Less: |  |  |  |  |  |  |  |  |
Capitalized interest | (130 | ) |  | (124 | ) |  | (92 | ) |  | (71 | ) |  | (51 | )
Preference security dividend of consolidated subsidiary | (1 | ) |  | (5 | ) |  | (10 | ) |  | (5 | ) |  | (6 | )
Noncontrolling interests in pretax income of subsidiaries that have not incurred fixed charges | (53 | ) |  | (40 | ) |  | (28 | ) |  | (26 | ) |  | (40 | )
Earnings | $ | 2,262 |  |  | $ | 1,721 |  |  | $ | 2,452 |  |  | $ | 2,754 |  |  | $ | 2,585 |
Fixed charges: |  |  |  |  |  |  |  |  |
Interest expense, debt premium and discount amortization | $ | 1,388 |  |  | $ | 1,509 |  |  | $ | 1,430 |  |  | $ | 1,485 |  |  | $ | 1,516 |
Capitalized interest | 130 |  |  | 124 |  |  | 92 |  |  | 71 |  |  | 51 |
Preference security dividend of consolidated subsidiary | 1 |  |  | 5 |  |  | 10 |  |  | 5 |  |  | 6 |
Interest portion of rental expense (1) | 20 |  |  | 20 |  |  | 15 |  |  | 13 |  |  | 9 |
Fixed charges | $ | 1,539 |  |  | $ | 1,658 |  |  | $ | 1,547 |  |  | $ | 1,574 |  |  | $ | 1,582 |
Ratio of earnings to fixed charges | 1.47 |  |  | 1.04 |  |  | 1.59 |  |  | 1.75 |  |  | 1.63 |

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