Exhibit 12(a) | ||||||||||||||||||||||
PPL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND | ||||||||||||||||||||||
PREFERRED STOCK DIVIDENDS | ||||||||||||||||||||||
(Millions of Dollars) | ||||||||||||||||||||||
3 Months | ||||||||||||||||||||||
Ended | ||||||||||||||||||||||
March 31, | Years Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||||
Income from Continuing Operations Before | ||||||||||||||||||||||
Income Taxes (a) | $ | 428 | $ | 1,309 | $ | 2,082 | $ | 2,201 | $ | 1,239 | $ | 538 | ||||||||||
Adjustment to reflect earnings from equity method | ||||||||||||||||||||||
investments on a cash basis (b) | 34 | 1 | 7 | 1 | ||||||||||||||||||
428 | 1,309 | 2,116 | 2,202 | 1,246 | 539 | |||||||||||||||||
Total fixed charges as below | 277 | 1,096 | 1,065 | 1,022 | 698 | 513 | ||||||||||||||||
Less: | ||||||||||||||||||||||
Capitalized interest | 8 | 47 | 53 | 51 | 30 | 43 | ||||||||||||||||
Preferred security distributions of subsidiaries | ||||||||||||||||||||||
on a pre-tax basis | 5 | 23 | 21 | 24 | ||||||||||||||||||
Interest expense and fixed charges related to | ||||||||||||||||||||||
discontinued operations | 3 | 12 | 15 | |||||||||||||||||||
Total fixed charges included in Income from | ||||||||||||||||||||||
Continuing Operations Before Income Taxes | 269 | 1,049 | 1,007 | 945 | 635 | 431 | ||||||||||||||||
Total earnings | $ | 697 | $ | 2,358 | $ | 3,123 | $ | 3,147 | $ | 1,881 | $ | 970 | ||||||||||
Fixed charges, as defined: | ||||||||||||||||||||||
Interest charges (c) | $ | 274 | $ | 1,058 | $ | 1,019 | $ | 955 | $ | 637 | $ | 446 | ||||||||||
Estimated interest component of operating rentals | 3 | 38 | 41 | 44 | 39 | 42 | ||||||||||||||||
Preferred security distributions of subsidiaries | ||||||||||||||||||||||
on a pre-tax basis | 5 | 23 | 21 | 24 | ||||||||||||||||||
Fixed charges of majority-owned share of 50% or | ||||||||||||||||||||||
less-owned persons | 1 | 1 | ||||||||||||||||||||
Total fixed charges (d) | $ | 277 | $ | 1,096 | $ | 1,065 | $ | 1,022 | $ | 698 | $ | 513 | ||||||||||
Ratio of earnings to fixed charges | 2.5 | 2.2 | 2.9 | 3.1 | 2.7 | 1.9 | ||||||||||||||||
Ratio of earnings to combined fixed charges and | ||||||||||||||||||||||
preferred stock dividends (e) | 2.5 | 2.2 | 2.9 | 3.1 | 2.7 | 1.9 |
(a) | In September 2013, PPL Montana executed a definitive agreement to sell certain hydroelectric generating facilities. The sale is not expected to close before the second half of 2014. To facilitate the sale, in December 2013, PPL Montana terminated a lease agreement which resulted in a $697 million charge. See Note 8 to the Financial Statements in PPL's 2013 Form 10-K 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. |
127