DOLLAR AMOUNTS IN MILLIONS | |||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||
Earnings | |||||||||||||||
Consolidated pretax income from continuing operations, before equity earnings | $ | 716 | $ | 504 | $ | 353 | $ | 687 | $ | 108 | |||||
Add: fixed charges | 419 | 489 | 410 | 421 | 386 | ||||||||||
Add: distributed income from equity investments | 1 | 38 | — | 5 | (3 | ) | |||||||||
Less: capitalized interest | 9 | 8 | 7 | 13 | 17 | ||||||||||
Less: preference dividends(2) | — | 27 | 44 | 54 | 23 | ||||||||||
Total earnings | $ | 1,127 | $ | 996 | $ | 712 | $ | 1,046 | $ | 451 | |||||
Fixed charges: | |||||||||||||||
Interest and other financial charges(1) | $ | 402 | $ | 444 | $ | 353 | $ | 357 | $ | 350 | |||||
Add: interest portion of rental expense | 17 | 18 | 13 | 10 | 13 | ||||||||||
Add: preference dividends(2) | — | 27 | 44 | 54 | 23 | ||||||||||
Total fixed charges | $ | 419 | $ | 489 | $ | 410 | $ | 421 | $ | 386 | |||||
Ratio of earnings to fixed charges | 2.69 | 2.04 | 1.74 | 2.48 | 1.17 | ||||||||||
Ratio of earnings to fixed charges (excluding preference dividends) | 2.69 | 2.16 | 1.95 | 2.85 | 1.24 | ||||||||||
(1) Interest expensed and capitalized, as well as amortized premiums, discounts and capitalized expenses related to indebtedness. (2) The preference security dividend has been calculated without adjustment for income taxes as a result of the negative effective tax rate in 2013. Additionally, all preference shares were converted to common shares during 2016. | |||||||||||||||