Hawaiian Electric Company, Inc. PFD SER E 5% (HAWEL) 10-K 2016 FY Annual report

HEI Exhibit 12.1

Hawaiian Electric Industries, Inc.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	2016						2015						2014
Years ended December 31	(1)			(2)			(1)			(2)			(1)			(2)
(dollars in thousands)
Fixed charges
Total interest charges	$	81,974		$	89,141		$	83,936		$	89,284		$	83,458		$	88,535
Interest component of rentals	6,200			6,200			6,065			6,065			6,366			6,366
Pretax preferred stock dividend requirements of subsidiaries	2,825			2,825			2,977			2,977			2,952			2,952
Total fixed charges	$	90,999		$	98,166		$	92,978		$	98,326		$	92,776		$	97,853
Earnings
Pretax income from continuing operations	$	371,951		$	371,951		$	252,898		$	252,898		$	263,708		$	263,708
Fixed charges, as shown	90,999			98,166			92,978			98,326			92,776			97,853
Interest capitalized	(3,727		)	(3,727		)	(3,265		)	(3,265		)	(3,954		)	(3,954		)
Earnings available for fixed charges	$	459,223		$	466,390		$	342,611		$	347,959		$	352,530		$	357,607
Ratio of earnings tofixed charges	5.05			4.75			3.68			3.54			3.80			3.65

	2013						2012
Years ended December 31	(1)			(2)			(1)			(2)
(dollars in thousands)
Fixed charges
Total interest charges	$	85,315		$	90,407		$	83,020		$	89,443
Interest component of rentals	6,345			6,345			6,493			6,493
Pretax preferred stock dividend requirements of subsidiaries	2,886			2,886			2,943			2,943
Total fixed charges	$	94,546		$	99,638		$	92,456		$	98,879
Earnings
Pretax income from continuing operations	$	247,946		$	247,946		$	217,064		$	217,064
Fixed charges, as shown	94,546			99,638			92,456			98,879
Interest capitalized	(7,097		)	(7,097		)	(4,355		)	(4,355		)
Earnings available for fixed charges	$	335,395		$	340,487		$	305,165		$	311,588
Ratio of earnings to fixed charges	3.55			3.42			3.30			3.15

(1) Excluding interest on ASB deposits.

(2) Including interest on ASB deposits.

For purposes of calculating the ratio of earnings to fixed charges, “earnings” represent the sum of (i) pretax income from continuing operations (before adjustment for undistributed income or loss from equity investees) and (ii) fixed charges (as hereinafter defined, but excluding capitalized interest). “Fixed charges” are calculated both excluding and including interest on ASB’s deposits during the applicable periods and represent the sum of (i) interest, whether capitalized or expensed, (ii) amortization of debt expense and discount or premium related to any indebtedness, whether capitalized or expensed, (iii) the estimate of the interest within rental expense, and (iv) the non-intercompany preferred stock dividend requirements of HEI’s subsidiaries, increased to an amount representing the pretax earnings required to cover such dividend requirements.