EX-12.1 11 pnm12312016ex121.htm EXHIBIT 12.1 Exhibit


 
Exhibit 12.1
 
 
PNM RESOURCES, INC. AND SUBSIDIARIES
 
Ratio of Earnings to Fixed Charges
 
(In thousands, except ratio)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
 
 
2016
 
2015
 
2014
 
2013
 
2012
 
 
Fixed charges, as defined by the Securities and Exchange Commission:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized
 
$
129,592

 
$
117,932

 
$
117,337

 
$
118,880

 
$
125,379

 
 
Amortization of debt premium, discount, and expenses
 
3,779

 
3,575

 
4,194

 
3,716

 
4,023

 
 
Estimated interest factor of lease rental charges
 
2,747

 
3,298

 
4,686

 
5,847

 
5,585

 
 
Preferred dividend requirements of subsidiary
 
781

 
784

 
809

 
800

 
769

 
 
     Total Fixed Charges
 
$
136,899

 
$
125,589

 
$
127,026

 
$
129,243

 
$
135,756

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings, as defined by the Securities and Exchange Commission:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings from continuing operations before income taxes and non-controlling interest
 
$
195,174

 
$
46,153

 
$
200,647

 
$
175,069

 
$
175,035

 
 
Fixed charges as above
 
136,899

 
125,589

 
127,026

 
129,243

 
135,756

 
 
Interest capitalized
 
(7,964
)
 
(9,753
)
 
(6,256
)
 
(5,209
)
 
(5,432
)
 
 
Non-controlling interest in earnings of Valencia
 
(14,519
)
 
(14,910
)
 
(14,127
)
 
(14,521
)
 
(14,050
)
 
 
Preferred dividend requirements of subsidiary
 
(781
)
 
(784
)
 
(809
)
 
(800
)
 
(769
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings Available for Fixed Charges
 
$
308,809

 
$
146,295

 
$
306,481

 
$
283,782

 
$
290,540

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
2.26

1 
1.16

2 
2.41

3 
2.20

4 
2.14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 Earnings from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2016 includes a pre-tax loss of $15.0 million due to the write-off of regulatory disallowances and restructuring costs at PNM. If that loss was excluded, the Ratio of Earnings to Fixed Charges would have been 2.37 for 2016.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 Earnings from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2015 includes a pre-tax loss of $167.5 million due to the write-off of regulatory disallowances and restructuring costs at PNM. If that loss wase excluded, the Ratio of Earnings to Fixed Charges would have been 2.50 for 2015.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 Earnings from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2014 includes a pre-tax loss of $1.1 million due to the write-off of regulatory disallowances at PNM. If that loss was excluded, the Ratio of Earnings to Fixed Charges would have been 2.42 for 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 Earnings from continuing operations before income taxes and non-controlling interest for the year ended December 31, 2013 includes a pre-tax loss of $12.2 million due to the write-off of regulatory disallowances at PNM. If that loss was excluded, the Ratio of Earnings to Fixed Charges would have been 2.29 for 2013.