EX-12.1 6 ex12-1soco9302016.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1
THE SOUTHERN COMPANY
Computation of ratio of earnings to fixed charges for
the five years ended December 31, 2015
and the year to date September 30, 2016
 
Year ended December 31,
 
 
Nine Months Ended
September 30,
 
 
2011
 
 
2012
 
 
2013
 
 
2014
 
 
2015
 
 
2016
 
---------------------------------------------Millions of Dollars-----------------------------------------------
EARNINGS AS DEFINED IN ITEM 503 OF REGULATION S-K:
 
 
 
 
 
 
 
 
 
 
Earnings Before Income Taxes
$
3,487

 
$
3,748

 
$
2,560

 
$
3,007

 
$
3,614

 
$
3,174

Distributed income of equity investees
 
—

 
 
—

 
 
—

 
 
—

 
 
—

 
 
29

Interest expense, net of amounts capitalized
 
858

 
 
861

 
 
826

 
 
835

 
 
842

 
 
914

Interest component of rental expense
 
117

 
 
98

 
 
97

 
 
113

 
 
127

 
 
106

Amortization of capitalized interest
 
3

 
 
5

 
 
2

 
 
5

 
 
5

 
 
4

AFUDC - Debt funds
 
58

 
 
62

 
 
77

 
 
86

 
 
88

 
 
56

Less: Dividends on preferred and preference stock of subsidiaries
 
(65
)
 
 
(65
)
 
 
(66
)
 
 
(68
)
 
 
(54
)
 
 
(34
)
Earnings as defined
$
4,458

 
$
4,709

 
$
3,496

 
$
3,978

 
$
4,622

 
$
4,249

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES AS DEFINED IN ITEM 503 OF REGULATION S-K:
Interest on long-term debt
$
872

 
$
857

 
$
817

 
$
824

 
$
881

 
$
892

Interest on affiliated loans
 
16

 
 
8

 
 
7

 
 
7

 
 
7

 
 
6

Interest on interim obligations
 
3

 
 
4

 
 
5

 
 
4

 
 
9

 
 
27

Amortization of debt discount, premium and expense, net
 
40

 
 
40

 
 
46

 
 
46

 
 
48

 
 
42

Other interest charges
 
(15
)
 
 
14

 
 
29

 
 
42

 
 
(15
)
 
 
4

Capitalized interest
 
20

 
 
20

 
 
14

 
 
25

 
 
36

 
 
37

Interest component of rental expense
 
117

 
 
98

 
 
98

 
 
111

 
 
127

 
 
106

Fixed charges as defined
 
1,053

 
 
1,041

 
 
1,016

 
 
1,059

 
 
1,093

 
 
1,114

Tax deductible preferred dividends
 
1

 
 
1

 
 
1

 
 
1

 
 
1

 
 
1

 
 
1,054

 
 
1,042

 
 
1,017

 
 
1,060

 
 
1,094

 
 
1,115

Non-tax deductible preferred and preference dividends
 
64

 
 
64

 
 
65

 
 
67

 
 
52

 
 
33

Ratio of net income before taxes to net income
x
1.538

 
x
1.552

 
x
1.497

 
x
1.481

 
x
1.493

 
x
1.417

Preferred and preference dividend requirements before income taxes
 
98

 
 
99

 
 
97

 
 
99

 
 
78

 
 
47

Fixed charges plus preferred and preference dividend requirements
$
1,152

 
$
1,141

 
$
1,114

 
$
1,159

 
$
1,172

 
$
1,162

RATIO OF EARNINGS TO FIXED CHARGES
 
3.87

 
 
4.13

 
 
3.14

 
 
3.43

 
 
3.94

 
 
3.66