EX-12.1 6 gxp-12312017xex121.htm GPE COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED Exhibit


Exhibit 12.1

GREAT PLAINS ENERGY INCORPORATED

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED DIVIDEND REQUIREMENTS

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
2016
 
2015
 
2014
 
2013
 
 
(millions)
Net income (loss)
 
$
(106.2
)
 
$
290.0

 
$
213.0

 
$
242.8

 
$
250.2

 
Add
 
 
 
 
 
 
 
 
 
 
 
Equity investment (income) loss
 
(2.5
)
 
(2.0
)
 
(1.2
)
 
—

 
0.2

 
Income subtotal
 
(108.7
)
 
288.0

 
211.8

 
242.8

 
250.4

 
 
 
 
 
 
 
 
 
 
 
 
 
Add
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
 
233.3

 
172.2

 
122.7

 
115.7

 
129.2

 
Kansas City earnings tax
 
0.4

 
0.2

 
(0.5
)
 
0.3

 
0.1

 
Total taxes on income
 
233.7

 
172.4

 
122.2

 
116.0

 
129.3

 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on value of leased property
 
4.9

 
5.1

 
5.2

 
5.2

 
5.5

 
Interest on long-term debt
 
252.9

 
199.8

 
193.9

 
195.0

 
195.5

 
Interest on short-term debt
 
13.1

 
13.5

 
6.1

 
5.1

 
7.6

 
Other interest expense and amortization
 
32.4

 
36.3

 
6.8

 
3.3

 
8.2

 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges
 
303.3

 
254.7

 
212.0

 
208.6

 
216.8

 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred dividend requirements(b)
 
(44.7
)
 
26.3

 
(a)
 
(a)
 
(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
Combined fixed charges and preferred
 
 
 
 
 
 
 
 
 
 
 
dividend requirements
 
258.6

 
281.0

 
212.0

 
208.6

 
216.8

 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before taxes on
 
 
 
 
 
 
 
 
 
 
 
income and fixed charges
 
$
428.3

 
$
715.1

 
$
546.0

 
$
567.4

 
$
596.5

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
1.41

 
2.81

 
2.58

 
2.72

 
2.75

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to combined fixed charges
 
 
 
 
 
 
 
 
 
 
 
and preferred dividend requirements
 
1.66

 
2.54

 
2.58

 
2.72

 
2.75

 
 
 
 
 
 
 
 
 
 
 
 
 
(a) Prior to 2016, Great Plains Energy's preferred dividends were insignificant.
(b) Preferred stock dividend requirements have been grossed up by the effective tax rate for the period. The negative preferred dividend requirement in 2017 is a result of Great Plains Energy's effective income tax rate of 183.5% in 2017 that includes the impacts of non-deductible transaction costs related to the anticipated merger with Westar and the revaluation of deferred income taxes and other initial effects resulting from the enactment of U.S. federal income tax reform.