EX-12.1 5 sempra-123117xex121.htm EXHIBIT 12.1 Exhibit


EXHIBIT 12.1
SEMPRA ENERGY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31,
 
 
2017
 
2016
 
2015
 
2014
 
2013
Earnings:
 
 
 
 
 
 
 
 
 
  Pretax income from continuing operations before income or loss
 
 
 
 
 
 
 
 
 
     from equity investees, noncontrolling interests and preferred
 
 
 
 
 
 
 
 
 
     dividends of subsidiaries
$
1,551

 
$
1,824

 
$
1,600

 
$
1,443

 
$
1,399

Add:


 


 


 


 


   Total fixed charges (from below)
812

 
706

 
681

 
640

 
628

   Amortization of capitalized interest(1)
—

 
—

 
—

 
—

 
—

   Distributed income of equity investees
39

 
53

 
83

 
61

 
51

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

 
—

 
—

 
—

 
—

Less:
 
 
 
 
 
 
 
 
 
   Interest capitalized
69

 
90

 
69

 
40

 
23

   Preference security dividend requirements of consolidated
 
 
 
 
 
 
 
 
 
      subsidiaries(2)
6

 
2

 
2

 
1

 
6

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

 
—

 
—

 
—

 
—

Total earnings for purpose of ratio
$
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)
$
803

 
$
701

 
$
677

 
$
636

 
$
620

  Estimate of interest within rental expense
3

 
3

 
2

 
3

 
2

  Preference security dividend requirements of consolidated
 
 
 
 
 
 
 
 
 
     subsidiaries(2)
6

 
2

 
2

 
1

 
6

Total fixed charges
$
812

 
$
706

 
$
681

 
$
640

 
$
628

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
2.87

 
3.53

 
3.37

 
3.29

 
3.26

 
 
 
 
 
 
 
 
 
 
 
(1) 
In computing this ratio, 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 this ratio, “Preference security dividend requirements of consolidated subsidiaries” represents the pretax earnings necessary to pay such dividends, computed at the effective tax rates for the applicable periods. In 2017, it includes the impacts of the Tax Cuts and Jobs Act of 2017.