EX-12 7 fe-12312017xex12.htm EXHIBIT 12 Exhibit
EXHIBIT 12

FIRSTENERGY CORP.
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES

 
 
Year Ended December 31
 
 
 
2013
 
2014
 
2015
 
2016 (2)
 
2017 (2)
 
(in millions)
 
 
 
EARNINGS AS DEFINED IN REGULATION S-K:
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
 
$
375

 
$
213

 
$
578

 
$
(6,177
)
 
$
(1,724
)
 
Interest and other charges, before reduction for amounts capitalized and deferred
 
1,016

 
1,073

 
1,132

 
1,157

 
1,178

 
Capitalized interest
 
(75
)
 
(69
)
 
(68
)
 
(66
)
 
(44
)
 
Provision for income taxes (benefits)
 
195

 
(42
)
 
315

 
(3,055
)
 
895

 
Interest element of rentals charged to income (1)
 
96

 
83

 
78

 
89

 
76

 
Earnings as defined
 
$
1,607

 
$
1,258

 
$
2,035

 
$
(8,052
)
 
$
381

 
 
 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES AS DEFINED IN REGULATION S-K:
 
 
 
 
 
 
 
 
 
 
 
Interest before reduction for amounts capitalized and deferred
 
$
1,016

 
$
1,073

 
$
1,132

 
$
1,157

 
$
1,178

 
Interest element of rentals charged to income (1)
 
96

 
83

 
78

 
89

 
76

 
Fixed charges as defined
 
$
1,112

 
$
1,156

 
$
1,210

 
$
1,246

 
$
1,254

 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
 
1.45

 
1.09

 
1.68

 
N/A

 
N/A

 

(1) 
Includes the interest element of rentals where determinable plus 1/3 of rental expense where no readily defined interest element can be determined.
(2) 
The ratio of earnings to fixed charges was less than one-to-one for the years ended December 31, 2017 and 2016 resulting from pre-tax impairment charges of $2,406 and $10,665 million, respectively. Additional earnings of $873 million and $9,298 million would be required to have a one-to-one ratio of earnings to fixed charges for years ended December 31, 2017 and 2016, respectively.


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