EX-12.1 6 sempra-63018xex121.htm EXHIBIT 12.1 Exhibit


 
EXHIBIT 12.1
 
SEMPRA ENERGY
 
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
 
AND PREFERRED STOCK DIVIDENDS
 
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31,
 
 
 
June 30,
2018
 
2017
 
2016
 
2015
 
2014
 
2013
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
   Pretax (loss) income from continuing operations before income or loss from equity
 
 
 
 
 
 
 
 
 
 
 
 
    investees, noncontrolling interests and preferred dividends
$
(442
)
 
$
1,551

 
$
1,824

 
$
1,600

 
$
1,443

 
$
1,399

 
Add:
 
 
 
 
 
 
 
 
 
 
 
 
  Combined fixed charges and preferred stock dividends
 
 
 
 
 
 
 
 
 
 
 
 
      for purpose of ratio (from below)
680

 
812

 
706

 
681

 
640

 
628

 
   Amortization of capitalized interest(1)
—

 
—

 
—

 
—

 
—

 
—

 
   Distributed income of equity investees
24

 
39

 
53

 
83

 
61

 
51

 
   Pretax losses of equity investees for which charges arising from
 
 
 
 
 
 
 
 
 
 
 
 
      guarantees are included in fixed charges
—

 
—

 
—

 
—

 
—

 
—

 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
   Interest capitalized
35

 
69

 
90

 
69

 
40

 
23

 
   Preference security dividend requirements(2)
101

 
—

 
—

 
—

 
—

 
—

 
   Preference security dividend requirements of consolidated subsidiaries(2)
1

 
6

 
2

 
2

 
1

 
6

 
   Noncontrolling interest in pretax income of subsidiaries that have
 
 
 
 
 
 
 
 
 
 
 
 
      not incurred fixed charges
—

 
—

 
—

 
—

 
—

 
—

 
Total earnings for purpose of ratio
$
125

 
$
2,327

 
$
2,491

 
$
2,293

 
$
2,103

 
$
2,049

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
  Interest expensed and capitalized and amortization of premiums,
 
 
 
 
 
 
 
 
 
 
 
 
     discounts and capitalized expenses related to indebtedness(1)
$
576

 
$
803

 
$
701

 
$
677

 
$
636

 
$
620

 
  Estimate of interest within rental expense
2

 
3

 
3

 
2

 
3

 
2

 
  Preference security dividend requirements of consolidated subsidiaries(2)
1

 
6

 
2

 
2

 
1

 
6

 
Total fixed charges for purpose of ratio
579

 
812

 
706

 
681

 
640

 
628

 
  Preference security dividend requirements(2)
101

 
—

 
—

 
—

 
—

 
—

 
Combined fixed charges and preferred stock dividends
 
 
 
 
 
 
 
 
 
 
 
 
     for purpose of ratio
$
680

 
$
812

 
$
706

 
$
681

 
$
640

 
$
628

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges(3)
—

 
2.87

 
3.53

 
3.37

 
3.29

 
3.26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to combined fixed charges and preferred stock dividends(3)
—

 
2.87
 
3.53
 
3.37
 
3.29
 
3.26
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)  
In computing these ratios, our public utilities that follow FASB ASC Topic 980, Regulated Operations, do not add amortization of capitalized interest in determining Earnings or reduce Fixed Charges by allowance for funds used during construction.
(2)  
In computing these ratios, “Preference security dividend requirements” and “Preference security dividend requirements of consolidated subsidiaries” represent the pretax earnings necessary to pay such dividends, computed at the effective tax rates for the applicable periods.
(3)  
In the six months ended June 30, 2018, we incurred losses from operations and as a result, our earnings were insufficient to cover our fixed charges by $454 million and our combined fixed charges by $555 million.