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Union Electric Company
Computation of Ratio of Earnings to Fixed Charges and Combined
Fixed Charges and Preferred Stock Dividend Requirements
(in millions, except ratios)
| Year Ended December 31, | Nine Months Ended September 30, 2017 | |||||||||||||||||
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| 2012 | 2013 | 2014 | 2015(a) | 2016 | ||||||||||||||
Earnings available for fixed charges, as defined: | |||||||||||||||||||
Net income | $ | 419 | $ | 398 | $ | 393 | $ | 355 | $ | 360 | $ | 362 | |||||||
Tax expense based on income | 252 | 242 | 229 | 209 | 216 | 218 | |||||||||||||
Fixed charges(b) | 241 | 229 | 231 | 233 | 226 | 168 | |||||||||||||
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Earnings available for fixed charges, as defined | $ | 912 | $ | 869 | $ | 853 | $ | 797 | $ | 802 | $ | 748 | |||||||
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Fixed charges, as defined: | |||||||||||||||||||
Interest expense on short-term and long-term debt(b) | $ | 232 | $ | 219 | $ | 221 | $ | 224 | $ | 217 | 160 | ||||||||
Estimated interest cost within rental expense | 3 | 3 | 3 | 3 | 3 | 3 | |||||||||||||
Amortization of net debt premium, discount, and expenses | 6 | 7 | 7 | 6 | 6 | 5 | |||||||||||||
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Total fixed charges, as defined | $ | 241 | $ | 229 | $ | 231 | $ | 233 | $ | 226 | 168 | ||||||||
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Ratio of earnings to fixed charges | 3.8 | 3.8 | 3.7 | 3.4 | 3.5 | 4.5 | |||||||||||||
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Earnings required for combined fixed charges and preferred stock dividends: | |||||||||||||||||||
Preferred stock dividends | $ | 3 | $ | 3 | $ | 3 | $ | 3 | $ | 3 | 3 | ||||||||
Adjustment to pretax basis | 2 | 2 | 2 | 2 | 2 | 2 | |||||||||||||
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$ | 5 | $ | 5 | $ | 5 | $ | 5 | $ | 5 | 5 | |||||||||
Combined fixed charges and preferred stock dividend requirements | $ | 246 | $ | 234 | $ | 236 | $ | 238 | $ | 231 | $ | 173 | |||||||
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Ratio of earnings to combined fixed charges and preferred stock dividend requirements | 3.7 | 3.7 | 3.6 | 3.3 | 3.5 | 4.3 | |||||||||||||
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- (a)
- Includes a $69 million provision for the Callaway construction and operating license. See Note 2—Rate and Regulatory Matters under Part II, Item 8, of the Form 10-K for the year ended December 31, 2016, for additional information.
- (b)
- Includes net interest related to uncertain tax positions.
Union Electric Company Computation of Ratio of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Stock Dividend Requirements (in millions, except ratios)