Louisville Gas & Electric 10-K 2017 FY Annual report

Exhibit 12(a)
PPL CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Millions of Dollars)
	Year		Year			Year			Year		Year
	Ended		Ended			Ended			Ended		Ended
	Dec. 31,		Dec. 31,			Dec. 31,			Dec. 31,		Dec. 31,
	2017		2016			2015 (a)			2014 (a)		2013 (a)
Earnings, as defined:
Income from Continuing Operations Before   Income Taxes	$	1,912	$	2,550		$	2,068		$	2,129	$	1,728
Adjustment to reflect earnings from equity method   investments on a cash basis	1		(1		)	(1		)	—		—
	1,913		2,549			2,067			2,129		1,728
Total fixed charges as below	927		917			1,054			1,095		1,096
Less:
Capitalized interest	4		4			11			11		11
Interest expense and fixed charges related to discontinued operations	—		—			150			186		235
Total fixed charges included in Income from   Continuing Operations Before Income Taxes	923		913			893			898		850
Total earnings	$	2,836	$	3,462		$	2,960		$	3,027	$	2,578
Fixed charges, as defined:
Interest charges (b)	$	912	$	900		$	1,038		$	1,073	$	1,058
Estimated interest component of operating rentals	15		17			16			22		38
Total fixed charges (c)	$	927	$	917		$	1,054		$	1,095	$	1,096
Ratio of earnings to fixed charges	3.1		3.8			2.8			2.8		2.4
Ratio of earnings to combined fixed charges and   preferred stock dividends (d)	3.1		3.8			2.8			2.8		2.4

(a) Reflects PPL's former Supply segment as Discontinued Operations. See Note 8 to the Financial Statements for additional information.

(b) Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net.  

(c) Interest on unrecognized tax benefits is not included in fixed charges.

(d) 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.