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, | |||||||||||||||||||||||
2010 | 2009 (c) | 2008 (c) | 2007 (c) | 2006 (c) | 2005 (c) | |||||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 790 | $ | 538 | $ | 1,273 | $ | 1,230 | 1,061 | $ | 763 | |||||||||||||
Less earnings of equity method investments | 1 | 2 | 3 | |||||||||||||||||||||
Distributed income from equity method investments | 6 | 1 | 3 | 1 | 3 | |||||||||||||||||||
796 | 539 | 1,273 | 1,232 | 1,060 | 763 | |||||||||||||||||||
Total fixed charges as below | 485 | 513 | 568 | 609 | 559 | 569 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Capitalized interest and interest component of AFUDC | 22 | 45 | 59 | 58 | 24 | 9 | ||||||||||||||||||
Preferred security distributions of subsidiaries on a pre-tax basis | 16 | 24 | 27 | 23 | 24 | 5 | ||||||||||||||||||
Interest expense related to discontinued operations | 7 | 15 | 16 | 39 | 38 | 39 | ||||||||||||||||||
Total fixed charges included in Income from Continuing Operations Before Income Taxes | 440 | 429 | 466 | 489 | 473 | 516 | ||||||||||||||||||
Total earnings | $ | 1,236 | $ | 968 | $ | 1,739 | $ | 1,721 | $ | 1,533 | $ | 1,279 | ||||||||||||
Fixed charges, as defined: | ||||||||||||||||||||||||
Interest on long-term debt | $ | 312 | $ | 397 | $ | 478 | $ | 522 | $ | 482 | $ | 480 | ||||||||||||
Interest on short-term debt and other interest | 48 | 34 | 28 | 35 | 13 | 29 | ||||||||||||||||||
Amortization of debt discount, expense and premium - net | 80 | 15 | 12 | 8 | 11 | 23 | ||||||||||||||||||
Estimated interest component of operating rentals | 28 | 42 | 22 | 21 | 29 | 32 | ||||||||||||||||||
Preferred securities distributions of subsidiaries on a pre-tax basis | 16 | 24 | 27 | 23 | 24 | 5 | ||||||||||||||||||
Fixed charges of majority-owned share of 50% or less-owned persons | 1 | 1 | 1 | |||||||||||||||||||||
Total fixed charges (a) | $ | 485 | $ | 513 | $ | 568 | $ | 609 | $ | 559 | $ | 569 | ||||||||||||
Ratio of earnings to fixed charges | 2.5 | 1.9 | 3.1 | 2.8 | 2.7 | 2.2 | ||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends (b) | 2.5 | 1.9 | 3.1 | 2.8 | 2.7 | 2.2 |
(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. | |
(c) | Years 2005 through 2009 have been adjusted to reflect the reclassification of certain non-core generation facilities as Discontinued Operations. See Note 8 to the Financial Statements for additional information. |