Attached files
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| 8-K - 8-K - American Water Works Company, Inc. | d774727d8k.htm |
Exhibit 12.1
AMERICAN WATER WORKS COMPANY, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
| Twelve Months ended December 31, | Six Months Ended June 30, |
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| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | |||||||||||||||||||
| Income (loss) from continuing operations before income taxes |
$ | (106,206 | ) | $ | 429,424 | $ | 503,680 | $ | 631,258 | $ | 605,470 | $ | 294,495 | |||||||||||
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| Fixed Charges: |
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| Interest, dividends on mandatory redeemable preferred shares and amortization of debt discount and expenses and premium on all indebtedness |
306,979 | 325,135 | 321,687 | 316,889 | 314,908 | 150,541 | ||||||||||||||||||
| Interest factor in rentals |
12,735 | 13,243 | 11,878 | 9,958 | 8,528 | 3,843 | ||||||||||||||||||
| Interest costs from discontinued operations |
1,015 | 1,319 | 2,266 | 277 | — | — | ||||||||||||||||||
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| Total fixed charges |
320,729 | 339,697 | 335,831 | 327,124 | 323,436 | 154,384 | ||||||||||||||||||
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| Income from continuing operations plus fixed charges |
214,523 | 769,121 | 839,511 | 958,382 | 928,906 | 448,879 | ||||||||||||||||||
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| Preferred dividend requirements |
225 | 225 | 225 | 153 | 19 | — | ||||||||||||||||||
| Ratio of pre-tax income (loss) to net income (loss) |
0.48 | 1.68 | 1.65 | 1.69 | 1.64 | 1.66 | ||||||||||||||||||
| Preferred dividend factor (1) |
109 | 379 | 372 | 258 | 31 | — | ||||||||||||||||||
| Total fixed charges |
320,729 | 339,697 | 335,831 | 327,124 | 323,436 | 154,384 | ||||||||||||||||||
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| Total fixed charges and preferred dividends |
320,838 | 340,076 | 336,202 | 327,382 | 323,467 | 154,384 | ||||||||||||||||||
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| Ratio of earnings to combined fixed charges and preferred dividends (2) |
— | 2.26 | 2.50 | 2.93 | 2.87 | 2.91 | ||||||||||||||||||
For purposes of calculating the ratio of earnings to fixed charges, earnings consists of income (loss) from continuing operations before income taxes including the effect of allowance for funds used during construction, which we refer to as AFUDC, plus fixed charges. Fixed charges consist of interest expense, amortization of debt issuance costs, and a portion of rent expense that management believes is representative of the interest component of rental expense. Fixed charges have not been reduced for the effect of AFUDC. In addition, we had no preferred stock outstanding for any period presented, and accordingly, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.
| (1) | Represents the amount of pre-tax earnings required to cover the dividends associated with preferred stock without mandatory redemption requirements. |
| (2) | For the year ended December 31, 2009 earnings were insufficient to cover fixed charges and there was a deficiency of $106.3 million. |
AMERICAN WATER CAPITAL CORP.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
| Twelve Months ended December 31, | Six Months Ended June 30, |
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| 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | |||||||||||||||||||
| Income (loss) from continuing operations before income taxes |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| Fixed Charges: |
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| Interest, dividends on mandatory redeemable preferred shares and amortization of debt discount and expenses and premium on all indebtedness |
201,033 | 206,011 | 211,982 | 213,835 | 225,511 | 105,403 | ||||||||||||||||||
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| Total fixed charges |
201,033 | 206,011 | 211,982 | 213,835 | 225,511 | 105,403 | ||||||||||||||||||
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| Income from continuing operations plus fixed charges |
201,033 | 206,011 | 211,982 | 213,835 | 225,511 | 105,403 | ||||||||||||||||||
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| Total fixed charges |
201,033 | 206,011 | 211,982 | 213,835 | 225,511 | 105,403 | ||||||||||||||||||
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| Total fixed charges and preferred dividends |
201,033 | 206,011 | 211,982 | 213,835 | 225,511 | 105,403 | ||||||||||||||||||
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| Ratio of earnings to combined fixed charges and preferred dividends |
1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | ||||||||||||||||||
For purposes of calculating the ratio of earnings to fixed charges, earnings consists of income (loss) from continuing operations before income taxes including the effect of allowance for funds used during construction, which we refer to as AFUDC, plus fixed charges. Fixed charges consist of interest expense, amortization of debt issuance costs, and a portion of rent expense that management believes is representative of the interest component of rental expense. Fixed charges have not been reduced for the effect of AFUDC. In addition, we had no preferred stock outstanding for any period presented, and accordingly, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.