SOUTHERN CALIFORNIA EDISON COMPANY | | | | | | | | | | | | | | | |
RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED AND PREFERENCE STOCK | | | | |
(Millions of Dollars) | | | | | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | | | 9 Months | | 9 Months | | 12 Months |
| | | | | | | | | | | | | | | | Ended | | Ended | | Ended |
Earnings: | | | | | 2006 | | 2007 | | 2008 | | 2009 | | 2010 | | September 30, 2010 | September 30, 2011 | September 30, 2011 |
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Income from continuing operations | | | | | | | | | | | | | | | |
| before tax and noncontrolling interest | $ 1,540 | | $ 1,400 | | $ 1,246 | | $ 1,620 | | $ 1,532 | | $ 1,235 | | $ 1,378 | | $ 1,675 |
Less: Income from equity investees | - | | - | | - | | - | | - | | - | | - | | - |
Income from continuing operations before income | | | | | | | | | | | | | |
| from equity investees, tax and noncontrolling interest | 1,540 | | 1,400 | | 1,246 | | 1,620 | | 1,532 | | 1,235 | | 1,378 | | 1,675 |
Add: | | | | | | | | | | | | | | | | | | | |
Fixed charges (see below) | | 502 | | 540 | | 520 | | 535 | | 565 | | 418 | | 461 | | 612 |
Amortization of capitalized interest | 1 | | 2 | | 2 | | 2 | | 2 | | 1 | | 2 | | 3 |
Distributed income of equity investees | - | | - | | - | | - | | - | | - | | - | | - |
Loss of equity investees for which charges arising from | | | | | | | | | | | | |
| guarantees are included in fixed charges | - | | - | | - | | - | | - | | - | | - | | - |
Subtract: | | | | | | | | | | | | | | | | | | | |
Interest capitalized | | | (2) | | (3) | | (3) | | (4) | | (7) | | (5) | | (5) | | (7) |
Preference security dividend requirements of | | | | | | | | | | | | | | |
| consolidated subsidiaries - pre-tax basis | (77) | | (74) | | (75) | | (73) | | (73) | | (57) | | (69) | | (89) |
Noncontrolling interest of subsidiaries that have not | | | | | | | | | | | |
| incurred fixed charges - pre-tax basis | | (275) | | (305) | | (170) | | (94) | | - | | - | | - | | - |
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Earnings as adjusted | | | $ 1,689 | | $ 1,560 | | $ 1,520 | | $ 1,986 | | $ 2,019 | | $ 1,592 | | $ 1,767 | | $ 2,194 |
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Fixed Charges (1): | | | | | | | | | | | | | | | | | |
Interest expenses - net of capitalized interest and AFUDC | $ 399 | | $ 429 | | $ 407 | | $ 420 | | $ 429 | | $ 315 | | $ 344 | | $ 458 |
Add: AFUDC | | | | 19 | | 25 | | 27 | | 32 | | 43 | | 32 | | 32 | | 43 |
Interest expenses - net of capitalized interest | 418 | | 454 | | 434 | | 452 | | 472 | | 347 | | 376 | | 501 |
Interest capitalized (2) | | | 3 | | 3 | | 3 | | 4 | | 7 | | 5 | | 5 | | 7 |
Interest portion of rental expense (3) | 4 | | 9 | | 8 | | 6 | | 13 | | 9 | | 11 | | 15 |
Preferred and preference stock dividend | | | | | | | | | | | | | | | |
| requirement - pre-tax basis | | 77 | | 74 | | 75 | | 73 | | 73 | | 57 | | 69 | | 89 |
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Total fixed charges | | | $ 502 | | $ 540 | | $ 520 | | $ 535 | | $ 565 | | $ 418 | | $ 461 | | $ 612 |
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Ratio | | | | | 3.36 | | 2.89 | | 2.92 | | 3.71 | | 3.57 | | 3.81 | | 3.83 | | 3.58 |
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(1) | Interest expenses associated with income taxes are reflected as a component of income tax expense | | | |
| and are excluded from the determination of fixed charges. | | | | | | | | | | |
(2) | Includes fixed charges associated with Nuclear Fuel and capitalized interest of fifty-percent owned | | | | |
| partnership. The amount for 2006 is restated. | | | | | | | | | | | | | |
(3) | Rentals include the interest factor relating to certain significant rentals plus one-third of all remaining annual rentals, | | |
| except for amounts allocated to power purchase contracts that are classified as operating leases. | | | | |
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