EX-12.1 2 se-20161231ex121.htm EXHIBIT 12.1 Exhibit


EXHIBIT 12.1
SPECTRA ENERGY CORP
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines.
 
 
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
 
2013
 
2012
 
 
(dollars in millions)
Earnings as defined for fixed charges calculation
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
 
Pretax income from continuing operations (a)
 
$
1,139

 
$
911

 
$
1,304

 
$
1,133

 
$
1,033

Fixed charges
 
705

 
704

 
735

 
744

 
708

Distributed income of equity investees
 
161

 
612

 
646

 
348

 
324

Deduct:
 
 
 
 
 
 
 
 
 
 
Preference security dividend requirements of consolidated subsidiaries
 
29

 
20

 
23

 
26

 
27

Interest capitalized (b)
 
68

 
32

 
20

 
50

 
47

Total earnings (as defined for the Fixed Charges calculation)
 
$
1,908

 
$
2,175

 
$
2,642

 
$
2,149

 
$
1,991

Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest on debt, including capitalized portions
 
$
663

 
$
668

 
$
699

 
$
707

 
$
670

Estimate of interest within rental expense
 
13

 
16

 
13

 
11

 
11

Preference security dividend requirements of consolidated subsidiaries
 
29

 
20

 
23

 
26

 
27

Total fixed charges
 
$
705

 
$
704

 
$
735

 
$
744

 
$
708

Ratio of earnings to fixed charges
 
2.7

 
3.1

 
3.6

 
2.9

 
2.8

________ 
(a)
Excludes noncontrolling interests and earnings or loss from equity investments.
(b)
Excludes equity costs related to allowance for funds used during construction that are included in Other Income and Expenses, Net in the Consolidated Statements of Operations.