EX-12 3 aes12312016ex-12.htm EXHIBIT 12 Exhibit


Exhibit 12
The AES Corporation and Subsidiaries
Statement Re: Calculation of Ratio of Earnings to Fixed Charges
(in millions, unaudited)
 
 
2016
 
2015
 
2014
 
2013
 
2012
Actual:
 
 
 
 
 
 
 
 
 
Computation of earnings:
 
 
 
 
 
 
 
 
 
Income from continuing operations before income taxes and equity in earnings of affiliates
$
137

 
$
1,154

 
$
1,443

 
$
997

 
$
79

Fixed charges
1,669

 
1,556

 
1,579

 
1,590

 
1,680

Amortization of capitalized interest
9

 
17

 
19

 
24

 
32

Distributed income of equity investees
14

 
16

 
28

 
2

 
5

Less:
 
 
 
 
 
 
 
 
 
Capitalized interest
(131
)
 
(96
)
 
(73
)
 
(56
)
 
(78
)
Preference security dividend of consolidated subsidiary
(2
)
 
(10
)
 
(5
)
 
(6
)
 
(6
)
Noncontrolling interests in pretax income of subsidiaries that have not incurred fixed charges
(40
)
 
(28
)
 
(26
)
 
(40
)
 
(4
)
Earnings
$
1,656

 
$
2,609

 
$
2,965

 
$
2,511

 
$
1,708

 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense, debt premium and discount amortization
$
1,509

 
$
1,430

 
$
1,485

 
$
1,516

 
$
1,580

Capitalized interest
131

 
96

 
73

 
56

 
78

Preference security dividend of consolidated subsidiary
2

 
10

 
5

 
6

 
6

Interest portion of rental expense (1)
27

 
20

 
16

 
12

 
16

Fixed charges
$
1,669

 
$
1,556

 
$
1,579

 
$
1,590

 
$
1,680

Ratio of earnings to fixed charges
0.99

 
1.68

 
1.88

 
1.58

 
1.02

(1)
Calculated as one-third of rental expense, which is deemed to be representative of the interest factor in rental expense.