Exhibit 12(a) | ||||||||||||||||||||||||
PPL CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Millions of Dollars) | ||||||||||||||||||||||||
6 Months Ended June 30, | 12 Months Ended December 31, | |||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||||||
Income from Continuing Operations Before Income Taxes, Minority Interest and Dividends on Preferred Securities of a Subsidiary | $ | 671 | $ | 1,304 | $ | 1,124 | $ | 825 | $ | 879 | $ | 963 | ||||||||||||
Less undistributed income of equity method investments | 2 | 5 | 6 | 7 | 4 | 2 | ||||||||||||||||||
Distributed income from equity method investments | 2 | 7 | 3 | 5 | 5 | 7 | ||||||||||||||||||
Total fixed charges as below | 278 | 609 | 559 | 554 | 558 | 573 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Capitalized interest | 33 | 58 | 24 | 9 | 6 | 7 | ||||||||||||||||||
Preferred security distributions of subsidiaries on a pre-tax basis | 14 | 23 | 24 | 5 | 5 | 45 | ||||||||||||||||||
Interest expense related to discontinued operations | 3 | 33 | 35 | 35 | 28 | 27 | ||||||||||||||||||
Total fixed charges included in Income from Continuing Operations Before Income Taxes, Minority Interest and Dividends on Preferred Securities of a Subsidiary | 228 | 495 | 476 | 505 | 519 | 494 | ||||||||||||||||||
Total earnings | $ | 899 | $ | 1,801 | $ | 1,597 | $ | 1,328 | $ | 1,399 | $ | 1,462 | ||||||||||||
Fixed charges, as defined: | ||||||||||||||||||||||||
Interest on long-term debt | $ | 236 | $ | 522 | $ | 482 | $ | 465 | $ | 491 | $ | 417 | ||||||||||||
Interest on short-term debt and other interest | 12 | 35 | 13 | 29 | 20 | 25 | ||||||||||||||||||
Amortization of debt discount, expense and premium - net | 6 | 8 | 11 | 23 | 8 | 41 | ||||||||||||||||||
Estimated interest component of operating rentals | 10 | 21 | 29 | 32 | 34 | 45 | ||||||||||||||||||
Preferred securities distributions of subsidiaries on a pre-tax basis | 14 | 23 | 24 | 5 | 5 | 45 | ||||||||||||||||||
Total fixed charges (a) | $ | 278 | $ | 609 | $ | 559 | $ | 554 | $ | 558 | $ | 573 | ||||||||||||
Ratio of earnings to fixed charges | 3.2 | 3.0 | 2.9 | 2.4 | 2.5 | 2.6 | ||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends (b) | 3.2 | 3.0 | 2.9 | 2.4 | 2.5 | 2.6 |
(a) | Interest on unrecognized tax benefits is not included in fixed charges. | |
(b) | 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. |