EX-12 2 computationofratioofearnin.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges
EXHIBIT 12


EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - DUKE ENERGY CORPORATION
The ratio of earnings to fixed charges is calculated using the Securities and Exchange Commission guidelines.
 
Six Months Ended June 30,
 
Years Ended December 31,
(in millions)
2014(a)
 
2013
 
2012(b)
 
2011
 
2010
 
2009
Earnings as defined for fixed charges calculation
 
 
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
 
 
 
Pretax income from continuing operations(c)
 
$
532

 
$
3,787

 
$
2,291

 
$
2,297

 
$
2,097

 
$
1,770

Fixed charges
 
897

 
1,886

 
1,510

 
1,057

 
1,045

 
892

Distributed income of equity investees
 
67

 
109

 
151

 
149

 
111

 
82

Deduct:
 
 
 
 
 
 
 
 
 
 
 
 
Preferred dividend requirements of subsidiaries
 
—

 
—

 
3

 
—

 
—

 
—

Interest capitalized
 
4

 
8

 
30

 
46

 
54

 
23

Total earnings
 
$
1,492

 
$
5,774


$
3,919


$
3,457


$
3,199


$
2,721

 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest on debt, including capitalized portions
 
$
854

 
$
1,760

 
$
1,420

 
$
1,026

 
$
1,008

 
$
853

Estimate of interest within rental expense
 
43

 
126

 
87

 
31

 
37

 
39

Preferred dividend requirements
 
—

 
—

 
3

 
—

 
—

 
—

Total fixed charges
 
$
897

 
$
1,886


$
1,510


$
1,057


$
1,045


$
892

Ratio of earnings to fixed charges
 
1.7

(d) 
3.1


2.6


3.3


3.1


3.1

Ratio of earnings to fixed charges and preferred dividends combined(d)
 
1.7

(d)

3.1


2.6


3.3


3.1


3.1

(a)
The earnings to fixed charges ratio was negatively impacted by a pre-tax impairment charge of $1,388 million related to the plan to dispose of the Midwest Generation business.
(b)    Includes the results of Progress Energy, Inc. beginning on July 2, 2012.
(c)    Excludes amounts attributable to noncontrolling interests and income or loss from equity investees.
(d)    For all periods presented, Duke Energy Corporation had no preferred stock outstanding.