Exhibit 12.1
WGL HOLDINGS, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges and
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
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| Twelve Months Ended September 30, | ||||||||||||||||||||
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| ($ in thousands) | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
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EARNINGS: | ||||||||||||||||||||
Pre-Tax Net Income(a) | $ | 161,320 | $ | 132,355 | $ | 233,247 | $ | 206,069 | $ | 184,477 | ||||||||||
Add: | ||||||||||||||||||||
Distributed Income (Loss) of Equity Investees | 3,194 | 1,510 | 1,240 | (549 | ) | 284 | ||||||||||||||
Total Fixed Charges | 39,484 | 37,893 | 38,583 | 42,619 | 41,218 | |||||||||||||||
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Total Earnings | $ | 203,998 | $ | 171,758 | $ | 273,070 | $ | 248,139 | $ | 225,979 | ||||||||||
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FIXED CHARGES: | ||||||||||||||||||||
Interest on long term debt | $ | 36,383 | $ | 34,512 | $ | 36,275 | $ | 39,097 | $ | 38,474 | ||||||||||
Other Interest (excluding AFUDC) | 918 | 905 | 229 | 1,447 | 869 | |||||||||||||||
Amortization of Debt Premium, Discount and Expense | 345 | 337 | 352 | 414 | 434 | |||||||||||||||
One-third of Rental Expense(b) | 1,838 | 2,139 | 1,727 | 1,661 | 1,441 | |||||||||||||||
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Total Fixed Charges | $ | 39,484 | $ | 37,893 | $ | 38,583 | $ | 42,619 | $ | 41,218 | ||||||||||
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Ratio of Earnings to Fixed Charges | 5.2 | 4.5 | 7.1 | 5.8 | 5.5 | |||||||||||||||
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FIXED CHARGES AND PRE-TAX PREFERRED STOCK DIVIDENDS: | ||||||||||||||||||||
Pre-Tax Preferred Dividend Requirement | $ | 1,320 | $ | 1,320 | $ | 1,320 | $ | 1,320 | $ | 1,320 | ||||||||||
Effective Income Tax Rate | 0.3480 | 0.3906 | 0.3981 | 0.4241 | 0.3981 | |||||||||||||||
Complement of Effective Income Tax Rate (1-Tax Rate) | 0.6520 | 0.6094 | 0.6019 | 0.5759 | 0.6019 | |||||||||||||||
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Preferred Dividend Requirement | $ | 2,025 | $ | 2,166 | $ | 2,193 | $ | 2,292 | $ | 2,193 | ||||||||||
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Combined Fixed Charges and Preferred Dividends | $ | 41,509 | $ | 40,059 | $ | 40,776 | $ | 44,911 | $ | 43,411 | ||||||||||
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Ratio of Earnings to Fixed Charges and Preferred Dividends | 4.9 | 4.3 | 6.7 | 5.5 | 5.2 | |||||||||||||||
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(a) Excludes amounts attributable to income or loss from equity investees.
(b) Management believes one-third of the total rental expense gives a reasonable estimate of total interest on rentals.