Exhibit 12(a) | ||||||||||||||||||||
PPL CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND | ||||||||||||||||||||
PREFERRED STOCK DIVIDENDS | ||||||||||||||||||||
(Millions of Dollars) | ||||||||||||||||||||
2014 (a) | 2013 (a) | 2012 (a) | 2011 (a) | 2010 (a) | ||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||
Income from Continuing Operations Before | ||||||||||||||||||||
Income Taxes (b) | $ | 2,364 | $ | 1,260 | $ | 2,009 | $ | 2,050 | $ | 1,218 | ||||||||||
Adjustment to reflect earnings from equity method | ||||||||||||||||||||
investments on a cash basis (c) | 34 | 1 | 7 | |||||||||||||||||
2,364 | 1,260 | 2,043 | 2,051 | 1,225 | ||||||||||||||||
Total fixed charges as below | 1,095 | 1,096 | 1,065 | 1,022 | 698 | |||||||||||||||
Less: | ||||||||||||||||||||
Capitalized interest | 33 | 46 | 43 | 42 | 24 | |||||||||||||||
Preferred security distributions of subsidiaries | ||||||||||||||||||||
on a pre-tax basis | 5 | 23 | 21 | |||||||||||||||||
Interest expense and fixed charges related to | ||||||||||||||||||||
discontinued operations | 10 | 14 | 12 | 6 | 34 | |||||||||||||||
Total fixed charges included in Income from | ||||||||||||||||||||
Continuing Operations Before Income Taxes | 1,052 | 1,036 | 1,005 | 951 | 619 | |||||||||||||||
Total earnings | $ | 3,416 | $ | 2,296 | $ | 3,048 | $ | 3,002 | $ | 1,844 | ||||||||||
Fixed charges, as defined: | ||||||||||||||||||||
Interest charges (d) | $ | 1,073 | $ | 1,058 | $ | 1,019 | $ | 955 | $ | 637 | ||||||||||
Estimated interest component of operating rentals | 22 | 38 | 41 | 44 | 39 | |||||||||||||||
Preferred securities distributions of subsidiaries | ||||||||||||||||||||
on a pre-tax basis | 5 | 23 | 21 | |||||||||||||||||
Fixed charges of majority-owned share of 50% or | ||||||||||||||||||||
less-owned persons | 1 | |||||||||||||||||||
Total fixed charges (e) | $ | 1,095 | $ | 1,096 | $ | 1,065 | $ | 1,022 | $ | 698 | ||||||||||
Ratio of earnings to fixed charges | 3.1 | 2.1 | 2.9 | 2.9 | 2.6 | |||||||||||||||
Ratio of earnings to combined fixed charges and | ||||||||||||||||||||
preferred stock dividends (f) | 3.1 | 2.1 | 2.9 | 2.9 | 2.6 |
(a) | Years 2010 through 2014 reflect the reclassification of certain PPL Montana hydroelectric generating facilities and related assets as Discontinued Operations. See Note 8 to the Financial Statements for additional information. | |
(b) | To facilitate the sale of the hydroelectric generating facilities referred to in (a) above, in December 2013, PPL Montana terminated a lease agreement which resulted in a $697 million charge. See Note 8 to the Financial Statements for additional information. | |
(c) | Includes other-than-temporary impairment loss of $25 million in 2012. | |
(d) | Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net. | |
(e) | Interest on unrecognized tax benefits is not included in fixed charges. | |
(f) | 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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