EX-12.1 7 duk-20161231x10kxexx121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - DUKE ENERGY CORPORATION Exhibit
EXHIBIT 12.1


COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - DUKE ENERGY CORPORATION
The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines.
 
Years Ended December 31,
(in millions)
2016
 
2015
 
2014
 
2013
 
  2012 (a)
Earnings as defined for fixed charges calculation
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
 
Pretax income from continuing operations(b)
 
$
3,668

 
$
3,832

 
$
3,636


$
3,204


$
1,622

Fixed charges
 
2,170

 
1,859

 
1,871

 
1,886

 
1,510

Distributed income of equity investees
 
30

 
104

 
136

 
109

 
151

Deduct:
 
 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
—

 
—

 
—

 
—

 
3

Interest capitalized
 
10

 
18

 
7

 
8

 
30

Total earnings
 
$
5,858

 
$
5,777

 
$
5,636

 
$
5,191

 
$
3,250

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest on debt, including capitalized portions
 
$
2,066

 
$
1,733

 
$
1,733

 
$
1,760

 
$
1,420

Estimate of interest within rental expense
 
104

 
126

 
138

 
126

 
87

Preferred dividend requirements of subsidiaries
 
—

 
—

 
—

 
—

 
3

Total fixed charges
 
$
2,170

 
$
1,859

 
$
1,871

 
$
1,886

 
$
1,510

Ratio of earnings to fixed charges
 
2.7

 
3.1

 
3.0

 
2.8

 
2.2

Ratio of earnings to fixed charges and preferred dividends combined(c)
 
2.7


3.1


3.0


2.8


2.2

(a)    Includes the results of Progress Energy, Inc. beginning on July 2, 2012.
(b)    Excludes amounts attributable to noncontrolling interests and income or loss from equity investees.
(c)    For the period presented, Duke Energy Corporation had no preferred stock outstanding.