Exhibit 12(a) | ||||||||||||||||||||||
PPL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND | ||||||||||||||||||||||
PREFERRED STOCK DIVIDENDS | ||||||||||||||||||||||
(Millions of Dollars) | ||||||||||||||||||||||
9 Months | ||||||||||||||||||||||
Ended | ||||||||||||||||||||||
Sep. 30 | Years Ended December 31, | |||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||||
Income from Continuing Operations Before | ||||||||||||||||||||||
Income Taxes | $ | 1,481 | $ | 1,239 | $ | 538 | $ | 1,273 | $ | 1,230 | $ | 1,061 | ||||||||||
Adjustment to reflect earnings from equity method | ||||||||||||||||||||||
investments on a cash basis | 1 | 7 | 1 | 2 | (1) | |||||||||||||||||
1,482 | 1,246 | 539 | 1,273 | 1,232 | 1,060 | |||||||||||||||||
Total fixed charges as below | 766 | 698 | 513 | 568 | 609 | 559 | ||||||||||||||||
Less: | ||||||||||||||||||||||
Capitalized interest | 36 | 30 | 43 | 57 | 55 | 23 | ||||||||||||||||
Preferred security distributions of subsidiaries | ||||||||||||||||||||||
on a pre-tax basis | 16 | 21 | 24 | 27 | 23 | 24 | ||||||||||||||||
Interest expense and fixed charges related to | ||||||||||||||||||||||
discontinued operations | 3 | 12 | 15 | 16 | 39 | 38 | ||||||||||||||||
Total fixed charges included in Income from | ||||||||||||||||||||||
Continuing Operations Before Income Taxes | 711 | 635 | 431 | 468 | 492 | 474 | ||||||||||||||||
Total earnings | $ | 2,193 | $ | 1,881 | $ | 970 | $ | 1,741 | $ | 1,724 | $ | 1,534 | ||||||||||
Fixed charges, as defined: | ||||||||||||||||||||||
Interest charges (a) | $ | 720 | $ | 637 | $ | 446 | $ | 518 | $ | 565 | $ | 506 | ||||||||||
Estimated interest component of operating rentals | 30 | 39 | 42 | 22 | 21 | 29 | ||||||||||||||||
Preferred security distributions of subsidiaries | ||||||||||||||||||||||
on a pre-tax basis | 16 | 21 | 24 | 27 | 23 | 24 | ||||||||||||||||
Fixed charges of majority-owned share of 50% or | ||||||||||||||||||||||
less-owned persons | 1 | 1 | 1 | |||||||||||||||||||
Total fixed charges (b) | $ | 766 | $ | 698 | $ | 513 | $ | 568 | $ | 609 | $ | 559 | ||||||||||
Ratio of earnings to fixed charges | 2.9 | 2.7 | 1.9 | 3.1 | 2.8 | 2.7 | ||||||||||||||||
Ratio of earnings to combined fixed charges and | ||||||||||||||||||||||
preferred stock dividends (c) | 2.9 | 2.7 | 1.9 | 3.1 | 2.8 | 2.7 |
(a) | Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net. | |
(b) | Interest on unrecognized tax benefits is not included in fixed charges. | |
(c) | PPL, the parent holding company, does not have any preferred stock outstanding; therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges. |