EXHIBIT 12.1
PG&E CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
| Nine Months Ended September 30, 2016 |
Year Ended December 31, | |||||||||||||||||||||||
| (in millions) | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Net income | $ | 711 | $ | 888 | $ | 1,450 | $ | 828 | $ | 830 | $ | 858 | ||||||||||||
Income tax (benefit) provision | (105 | ) | (27 | ) | 345 | 268 | 237 | 440 | ||||||||||||||||
Fixed charges | 1,088 | 1,284 | 1,206 | 1,012 | 931 | 919 | ||||||||||||||||||
Pre-tax earnings required to cover the preferred stock dividend of consolidated subsidiaries | (10 | ) | (14 | ) | (15 | ) | (16 | ) | (15 | ) | (17 | ) | ||||||||||||
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Total earnings | $ | 1,684 | $ | 2,131 | $ | 2,986 | $ | 2,092 | $ | 1,983 | $ | 2,200 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest on short-term borrowings and long-term debt, net | $ | 1,036 | $ | 1,218 | $ | 1,140 | $ | 942 | $ | 859 | $ | 846 | ||||||||||||
Interest on capital leases | 3 | 4 | 6 | 7 | 9 | 16 | ||||||||||||||||||
AFUDC debt | 39 | 48 | 45 | 47 | 48 | 40 | ||||||||||||||||||
Pre-tax earnings required to cover the preferred stock dividend of consolidated subsidiaries | 10 | 14 | 15 | 16 | 15 | 17 | ||||||||||||||||||
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Total fixed charges | $ | 1,088 | $ | 1,284 | $ | 1,206 | $ | 1,012 | $ | 931 | $ | 919 | ||||||||||||
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Ratios of earnings to fixed charges | 1.55 | 1.66 | 2.48 | 2.07 | 2.13 | 2.39 | ||||||||||||||||||
Total preferred stock dividends | — | — | — | — | — | — | ||||||||||||||||||
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Total combined fixed charges and preferred stock dividends | $ | 1,088 | $ | 1,284 | $ | 1,206 | $ | 1,012 | $ | 931 | $ | 919 | ||||||||||||
Ratios of earnings to combined fixed charges and preferred stock dividends | 1.55 | 1.66 | 2.48 | 2.07 | 2.13 | 2.39 | ||||||||||||||||||
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Note:
For the purpose of computing PG&E Corporation’s ratios of earnings to fixed charges and ratios of earnings to combined fixed charges and preferred stock dividends, “earnings” represent income from continuing operations adjusted for income taxes, fixed charges (excluding capitalized interest), and pre-tax earnings required to cover the preferred stock dividend of consolidated subsidiaries. “Fixed charges” include interest on long-term debt and short-term borrowings (including a representative portion of rental expense), amortization of bond premium, discount and expense, interest on capital leases, AFUDC debt, and earnings required to cover preferred stock dividends of consolidated subsidiaries. Fixed charges exclude interest on tax liabilities. “Preferred stock dividends” represent the deductible dividends and pre-tax earnings that are required to pay the dividends on outstanding preferred securities. Currently we do not have any shares of our preferred stock outstanding.
