EX-12 3 aes12312017exhibit12.htm EXHIBIT 12 Exhibit


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.