EX-12.1 3 paa06302017exhibit121.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1
 
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except ratio data)

 
Six Months Ended
June 30,
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
2014
 
2013
 
2012
EARNINGS (1)
 

 
 

 
 

 
 

 
 

 
 

Pre-tax income from continuing operations before noncontrolling interests and income from equity investees
$
588

 
$
560

 
$
823

 
$
1,449

 
$
1,426

 
$
1,143

add: Fixed charges
304

 
588

 
548

 
457

 
424

 
380

add: Distributed income of equity investees
136

 
216

 
214

 
105

 
55

 
40

add: Amortization of capitalized interest
3

 
7

 
6

 
4

 
3

 
2

less: Capitalized interest
(15
)
 
(47
)
 
(57
)
 
(48
)
 
(38
)
 
(36
)
Total Earnings
$
1,016

 
$
1,324

 
$
1,534

 
$
1,967

 
$
1,870

 
$
1,529

 
 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES (1)
 

 
 

 
 

 
 

 
 

 
 

Interest expensed and capitalized
$
271

 
$
524

 
$
495

 
$
410

 
$
381

 
$
346

Portion of rent expense related to interest (33.33%)
33

 
64

 
53

 
47

 
43

 
34

Total Fixed Charges
$
304

 
$
588

 
$
548

 
$
457

 
$
424

 
$
380

 
 
 
 
 
 
 
 
 
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES (2)
3.35x

 
2.25x

 
2.80x

 
4.30x

 
4.41x

 
4.03x

 
(1) 
For purposes of computing the ratio of earnings to fixed charges, “earnings” consists of pre-tax income from continuing operations before income from equity investees plus fixed charges (excluding capitalized interest), distributed income of equity investees and amortization of capitalized interest. “Fixed charges” represents interest incurred (whether expensed or capitalized), amortization of debt expense (including discounts and premiums relating to indebtedness) and the portion of rental expense on leases deemed to be the equivalent of interest.
(2) 
Ratios may not recalculate due to rounding.