Exhibit 12(a) | ||||||||||||||||||||||||
PPL CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Millions of Dollars) | ||||||||||||||||||||||||
Six Months Ended June 30, | Years Ended December 31, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 490 | $ | 596 | $ | 1,357 | $ | 1,281 | $ | 1,099 | $ | 780 | ||||||||||||
Less earnings of equity method investments | 1 | 2 | 1 | 3 | 4 | 5 | ||||||||||||||||||
Distributed income from equity method investments | 4 | 2 | 1 | 5 | 3 | 5 | ||||||||||||||||||
493 | 596 | 1,357 | 1,283 | 1,098 | 780 | |||||||||||||||||||
Total fixed charges as below | 292 | 513 | 568 | 609 | 559 | 569 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Capitalized interest and interest component of AFUDC | 14 | 45 | 59 | 58 | 24 | 9 | ||||||||||||||||||
Preferred security distributions of subsidiaries on a pre-tax basis | 12 | 24 | 27 | 23 | 24 | 5 | ||||||||||||||||||
Interest expense related to discontinued operations | 5 | 8 | 33 | 36 | 37 | |||||||||||||||||||
Total fixed charges included in Income from Continuing Operations Before Income Taxes | 266 | 439 | 474 | 495 | 475 | 518 | ||||||||||||||||||
Total earnings | $ | 759 | $ | 1,035 | $ | 1,831 | $ | 1,778 | $ | 1,573 | $ | 1,298 | ||||||||||||
Fixed charges, as defined: | ||||||||||||||||||||||||
Interest on long-term debt | $ | 199 | $ | 397 | $ | 478 | $ | 522 | $ | 482 | $ | 480 | ||||||||||||
Interest on short-term debt and other interest | 30 | 34 | 28 | 35 | 13 | 29 | ||||||||||||||||||
Amortization of debt discount, expense and premium - net | 31 | 15 | 12 | 8 | 11 | 23 | ||||||||||||||||||
Estimated interest component of operating rentals | 19 | 42 | 22 | 21 | 29 | 32 | ||||||||||||||||||
Preferred securities distributions of subsidiaries on a pre-tax basis | 12 | 24 | 27 | 23 | 24 | 5 | ||||||||||||||||||
Fixed charges of majority-owned share of 50% or less-owned persons | 1 | 1 | 1 | |||||||||||||||||||||
Total fixed charges (a) | $ | 292 | $ | 513 | $ | 568 | $ | 609 | $ | 559 | $ | 569 | ||||||||||||
Ratio of earnings to fixed charges | 2.6 | 2.0 | 3.2 | 2.9 | 2.8 | 2.3 | ||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends (b) | 2.6 | 2.0 | 3.2 | 2.9 | 2.8 | 2.3 |
(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. |