Exhibit 12.1
GREAT PLAINS ENERGY INCORPORATED
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED DIVIDEND REQUIREMENTS
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||
(millions) | |||||||||||||||||||||
Net income (loss) | $ | (106.2 | ) | $ | 290.0 | $ | 213.0 | $ | 242.8 | $ | 250.2 | ||||||||||
Add | |||||||||||||||||||||
Equity investment (income) loss | (2.5 | ) | (2.0 | ) | (1.2 | ) | — | 0.2 | |||||||||||||
Income subtotal | (108.7 | ) | 288.0 | 211.8 | 242.8 | 250.4 | |||||||||||||||
Add | |||||||||||||||||||||
Income tax expense | 233.3 | 172.2 | 122.7 | 115.7 | 129.2 | ||||||||||||||||
Kansas City earnings tax | 0.4 | 0.2 | (0.5 | ) | 0.3 | 0.1 | |||||||||||||||
Total taxes on income | 233.7 | 172.4 | 122.2 | 116.0 | 129.3 | ||||||||||||||||
Interest on value of leased property | 4.9 | 5.1 | 5.2 | 5.2 | 5.5 | ||||||||||||||||
Interest on long-term debt | 252.9 | 199.8 | 193.9 | 195.0 | 195.5 | ||||||||||||||||
Interest on short-term debt | 13.1 | 13.5 | 6.1 | 5.1 | 7.6 | ||||||||||||||||
Other interest expense and amortization | 32.4 | 36.3 | 6.8 | 3.3 | 8.2 | ||||||||||||||||
Total fixed charges | 303.3 | 254.7 | 212.0 | 208.6 | 216.8 | ||||||||||||||||
Preferred dividend requirements(b) | (44.7 | ) | 26.3 | (a) | (a) | (a) | |||||||||||||||
Combined fixed charges and preferred | |||||||||||||||||||||
dividend requirements | 258.6 | 281.0 | 212.0 | 208.6 | 216.8 | ||||||||||||||||
Earnings before taxes on | |||||||||||||||||||||
income and fixed charges | $ | 428.3 | $ | 715.1 | $ | 546.0 | $ | 567.4 | $ | 596.5 | |||||||||||
Ratio of earnings to fixed charges | 1.41 | 2.81 | 2.58 | 2.72 | 2.75 | ||||||||||||||||
Ratio of earnings to combined fixed charges | |||||||||||||||||||||
and preferred dividend requirements | 1.66 | 2.54 | 2.58 | 2.72 | 2.75 | ||||||||||||||||
(a) Prior to 2016, Great Plains Energy's preferred dividends were insignificant. | |||||||||||||||||||||
(b) Preferred stock dividend requirements have been grossed up by the effective tax rate for the period. The negative preferred dividend requirement in 2017 is a result of Great Plains Energy's effective income tax rate of 183.5% in 2017 that includes the impacts of non-deductible transaction costs related to the anticipated merger with Westar and the revaluation of deferred income taxes and other initial effects resulting from the enactment of U.S. federal income tax reform. |