Exhibit 12(a) | ||||||||||||||||||||||||
PPL CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Millions of Dollars) | ||||||||||||||||||||||||
Nine Months Ended September 30, | Years Ended December 31, | |||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 423 | $ | 1,357 | $ | 1,281 | $ | 1,099 | $ | 780 | $ | 849 | ||||||||||||
Less earnings of equity method investments | 1 | 1 | 3 | 4 | 5 | 3 | ||||||||||||||||||
Distributed income from equity method investments | 1 | 1 | 5 | 3 | 5 | 5 | ||||||||||||||||||
423 | 1,357 | 1,283 | 1,098 | 780 | 851 | |||||||||||||||||||
Total fixed charges as below | 375 | 568 | 609 | 559 | 569 | 563 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Capitalized interest | 38 | 59 | 58 | 24 | 9 | 6 | ||||||||||||||||||
Preferred security distributions of subsidiaries on a pre-tax basis | 18 | 27 | 23 | 24 | 5 | 5 | ||||||||||||||||||
Interest expense related to discontinued operations | 3 | 8 | 35 | 36 | 37 | 30 | ||||||||||||||||||
Total fixed charges included in Income from Continuing Operations Before Income Taxes | 316 | 474 | 493 | 475 | 518 | 522 | ||||||||||||||||||
Total earnings | $ | 739 | $ | 1,831 | $ | 1,776 | $ | 1,573 | $ | 1,298 | $ | 1,373 | ||||||||||||
Fixed charges, as defined: | ||||||||||||||||||||||||
Interest on long-term debt | $ | 299 | $ | 478 | $ | 522 | $ | 482 | $ | 480 | $ | 496 | ||||||||||||
Interest on short-term debt and other interest | 25 | 28 | 35 | 13 | 29 | 20 | ||||||||||||||||||
Amortization of debt discount, expense and premium - net | 11 | 12 | 8 | 11 | 23 | 8 | ||||||||||||||||||
Estimated interest component of operating rentals | 21 | 22 | 21 | 29 | 32 | 34 | ||||||||||||||||||
Preferred securities distributions of subsidiaries on a pre-tax basis | 18 | 27 | 23 | 24 | 5 | 5 | ||||||||||||||||||
Fixed charges of majority-owned share of 50% or less-owned persons | 1 | 1 | ||||||||||||||||||||||
Total fixed charges (a) | $ | 375 | $ | 568 | $ | 609 | $ | 559 | $ | 569 | $ | 563 | ||||||||||||
Ratio of earnings to fixed charges | 2.0 | 3.2 | 2.9 | 2.8 | 2.3 | 2.4 | ||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends (b) | 2.0 | 3.2 | 2.9 | 2.8 | 2.3 | 2.4 |
(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. |