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, (a) | ||||||||||||||||||||||
2015(a) | 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||||
Earnings, as defined: | |||||||||||||||||||||||
Income from Continuing Operations Before | |||||||||||||||||||||||
Income Taxes | $ | 1,630 | $ | 2,129 | $ | 1,728 | $ | 1,406 | $ | 922 | $ | 321 | |||||||||||
Adjustment to reflect earnings from equity method | |||||||||||||||||||||||
investments on a cash basis (b) | (2) | 34 | |||||||||||||||||||||
1,628 | 2,129 | 1,728 | 1,440 | 922 | 321 | ||||||||||||||||||
Total fixed charges as below | 816 | 1,095 | 1,096 | 1,065 | 1,022 | 698 | |||||||||||||||||
Less: | |||||||||||||||||||||||
Capitalized interest | 10 | 11 | 11 | 6 | 4 | ||||||||||||||||||
Preferred security distributions of subsidiaries | |||||||||||||||||||||||
on a pre-tax basis | 5 | 23 | 21 | ||||||||||||||||||||
Interest expense and fixed charges related to | |||||||||||||||||||||||
discontinued operations | 150 | 186 | 235 | 235 | 231 | 255 | |||||||||||||||||
Total fixed charges included in Income from | |||||||||||||||||||||||
Continuing Operations Before Income Taxes | 656 | 898 | 850 | 819 | 764 | 422 | |||||||||||||||||
Total earnings | $ | 2,284 | $ | 3,027 | $ | 2,578 | $ | 2,259 | $ | 1,686 | $ | 743 | |||||||||||
Fixed charges, as defined: | |||||||||||||||||||||||
Interest charges (c) | $ | 810 | $ | 1,073 | $ | 1,058 | $ | 1,019 | $ | 955 | $ | 637 | |||||||||||
Estimated interest component of operating rentals | 6 | 22 | 38 | 41 | 44 | 39 | |||||||||||||||||
Preferred security distributions of subsidiaries | |||||||||||||||||||||||
on a pre-tax basis | 5 | 23 | 21 | ||||||||||||||||||||
Fixed charges of majority-owned share of 50% or | |||||||||||||||||||||||
less-owned persons | 1 | ||||||||||||||||||||||
Total fixed charges (d) | $ | 816 | $ | 1,095 | $ | 1,096 | $ | 1,065 | $ | 1,022 | $ | 698 | |||||||||||
Ratio of earnings to fixed charges | 2.8 | 2.8 | 2.4 | 2.1 | 1.7 | 1.1 | |||||||||||||||||
Ratio of earnings to combined fixed charges and | |||||||||||||||||||||||
preferred stock dividends (e) | 2.8 | 2.8 | 2.4 | 2.1 | 1.7 | 1.1 |
(a) | All periods reflect PPL's former Supply segment as Discontinued Operations. See Note 8 to the Financial Statements for additional information. | |
(b) | Includes other-than-temporary impairment loss of $25 million in 2012. | |
(c) | Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net. | |
(d) | Interest on unrecognized tax benefits is not included in fixed charges. | |
(e) | 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. |
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