Exhibit 12(a)
PPL CORPORATION AND SUBSIDIARIES | |||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | |||||||||||||
(Millions of Dollars) | |||||||||||||
12 Months | 12 Months | ||||||||||||
Ended | Ended | ||||||||||||
September 30, | December 31, | ||||||||||||
2001 | 2000 | 1999 (c) | 1998 (c) | 1997 (c) | |||||||||
Fixed charges, as defined: | |||||||||||||
Interest on long-term debt | $ 350 | $ 323 | $ 233 | $ 203 | $ 196 | ||||||||
Interest on short-term debt and other interest | 55 | 64 | 47 | 33 | 26 | ||||||||
Amortization of debt discount, expense and premium - net | 7 | 5 | 4 | 2 | 2 | ||||||||
Interest on capital lease obligations: | |||||||||||||
Charged to expense | 4 | 9 | 8 | 9 | |||||||||
Capitalized | 1 | 2 | 2 | ||||||||||
Estimated interest component of operating rentals | 36 | 25 | 20 | 18 | 15 | ||||||||
Total fixed charges | $ 448 | $ 421 | $ 314 | $ 266 | $ 250 | ||||||||
Earnings, as defined: | |||||||||||||
Net income (a) | $ 612 | $ 491 | $ 492 | $ 379 | $ 296 | ||||||||
Preferred security dividend requirements | 42 | 26 | 26 | 25 | 24 | ||||||||
Less undistributed income of equity method investments | 67 | 74 | 56 | 3 | (25) | ||||||||
587 | 443 | 462 | 401 | 345 | |||||||||
Add (Deduct): | |||||||||||||
Income taxes | 327 | 294 | 174 | 259 | 238 | ||||||||
Amortization of capitalized interest on capital leases | 2 | 2 | 2 | 2 | |||||||||
Total fixed charges as above (excluding capitalized interest on capitalized lease obligations) | 448 | 421 | 313 | 264 | 248 | ||||||||
Total earnings | $ 1,362 | $ 1,160 | $ 951 | $ 926 | $ 833 | ||||||||
Ratio of earnings to fixed charges (b) | 3.04 | 2.75 | 3.03 | 3.48 | 3.33 | ||||||||
(a) | 2001, 2000, 1999 and 1998 net income excluding extraordinary items. | ||||||||||||
(b) | Based on earnings excluding nonrecurring items, the ratio of earnings to fixed charges are: | ||||||||||||
2000, 2.66; 1999, 2.80; 1998, 3.10; and 1997, 3.51. | |||||||||||||
(c) | Ratio of earnings to fixed charges for years 1999 and prior were recalculated to give proper effect of undistributed | ||||||||||||
earnings of equity method investments. |