Exhibit 12(a) | ||||||||||||||||||||
PPL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND | ||||||||||||||||||||
PREFERRED STOCK DIVIDENDS | ||||||||||||||||||||
(Millions of Dollars) | ||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||
Income from Continuing Operations Before | ||||||||||||||||||||
Income Taxes (a) | $ | 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 | ||||||||||||||||
1,309 | 2,116 | 2,202 | 1,246 | 539 | ||||||||||||||||
Total fixed charges as below | 1,096 | 1,065 | 1,022 | 698 | 513 | |||||||||||||||
Less: | ||||||||||||||||||||
Capitalized interest | 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 | 1,049 | 1,007 | 945 | 635 | 431 | |||||||||||||||
Total earnings | $ | 2,358 | $ | 3,123 | $ | 3,147 | $ | 1,881 | $ | 970 | ||||||||||
Fixed charges, as defined: | ||||||||||||||||||||
Interest charges (c) | $ | 1,058 | $ | 1,019 | $ | 955 | $ | 637 | $ | 446 | ||||||||||
Estimated interest component of operating rentals | 38 | 41 | 44 | 39 | 42 | |||||||||||||||
Preferred securities 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) | $ | 1,096 | $ | 1,065 | $ | 1,022 | $ | 698 | $ | 513 | ||||||||||
Ratio of earnings to fixed charges | 2.2 | 2.9 | 3.1 | 2.7 | 1.9 | |||||||||||||||
Ratio of earnings to combined fixed charges and | ||||||||||||||||||||
preferred stock dividends (e) | 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, PPL Montana terminated a lease agreement which resulted in a $697 million charge, included in "Loss on lease termination" on the Statement of Income. See Note 8 to the Financial Statements 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. |
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