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COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
December 31 (millions of dollars) | 2017 | 2016(a) | 2015(a) | 2014(a) | 2013(a)(b) | ||||||||
Earnings | |||||||||||||
Net income before adjustment for income from equity investees | 139 | 166 | 160 | 153 | 154 | ||||||||
Fixed charges | 84 | 73 | 68 | 62 | 57 | ||||||||
Distributed income (loss) of equity investees(c) | 124 | 97 | (102 | ) | 88 | 67 | |||||||
Non-controlling interests of subsidiaries that have not incurred fixed charges | – | – | – | (10 | ) | (14 | ) | ||||||
Total Earnings | 347 | 336 | 126 | 293 | 264 | ||||||||
Fixed Charges | |||||||||||||
Interest expensed and capitalized | 83 | 69 | 64 | 56 | 50 | ||||||||
Amortization of other assets | 1 | 4 | 4 | 6 | 7 | ||||||||
Total Fixed Charges | 84 | 73 | 68 | 62 | 57 | ||||||||
Ratio of Earnings/Fixed Charges | 4.13X | 4.60X | 1.85x | 4.73x | 4.63x |
- (a)
- Recast information to consolidate PNGTS for all periods presented as a result of an additional 11.81 percent in PNGTS that was acquired from a subsidiary of TransCanada on June 1, 2017. Prior to this transaction, the Partnership owned a 49.9 percent interest in PNGTS that was acquired from TransCanada on January 1, 2016. Please read Note 2 – Significant Accounting Policies – Basis of Presentation section of the Notes to the Consolidated Financial Statements included in Part IV,Item 15. "Exhibits and Financial Statement Schedules".
- (b)
- Recast information to consolidate GTN and Bison for all periods presented as a result of additional 45 percent membership interests in each of GTN and Bison that were acquired from subsidiaries of TransCanada in 2013 resulting in a 70 percent ownership in each. Please read Note 2, Significant Accounting Policies- Basis of Presentation section of the Notes to the Consolidated Financial Statements included in Part IV,Item 15. "Exhibits and Financial Statement Schedules".
- (c)
- Distributed income of equity investees for 2015 includes $199 million impairment charge on our Investment in Great Lakes. Please read Note 5-Equity Investments, Notes to the Consolidated Financial Statements included in Part IV, Item 15. "Exhibits and Financial Statement Schedules".
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES