EX-12.1 7 itc20161231ex_121.htm RATIO OF EARNINGS TO FIXED CHARGES Exhibit


EXHIBIT 12.1
ITC HOLDINGS
Computation of Ratios of Earnings to Fixed Charges
Our ratios of earnings to fixed charges were as follows for the periods indicated in the table below:

 
Year Ended December 31,
(In millions, except ratio of earnings to fixed charges)
2016
 
2015
 
2014
 
2013
 
2012
Earnings are defined:
 
 
 
 
 
 
 
 
 
Net income
$
246

 
$
242

 
$
244

 
$
233

 
$
188

Add: Income tax provision
97

 
142

 
150

 
119

 
109

Add: Fixed charges
220

 
211

 
192

 
176

 
163

Less: Capitalized interest
9

 
7

 
5

 
8

 
7

Earnings as defined
$
554

 
$
588

 
$
581

 
$
520

 
$
453

 
 
 
 
 
 
 
 
 
 
Fixed charges are defined:
 
 
 
 
 
 
 
 
 
Interest expense — net
$
211

 
$
204

 
$
187

 
$
168

 
$
156

Add: Capitalized interest
9

 
7

 
5

 
8

 
7

Fixed charges as defined
$
220

 
$
211

 
$
192

 
$
176

 
$
163

Ratio of earnings to fixed charges
2.52

 
2.79

 
3.03

 
2.95

 
2.78

____________________________
Our ratios of earnings to fixed charges were computed based on:
•
“earnings,” which consist of net income before income taxes and fixed charges, excluding capitalized interest; and
•
“fixed charges,” which consist of interest expense including capitalized interest.