PPL CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (Millions of Dollars) | ||||||||||||||||||||||||
Six Months Ended June 30, | Years Ended December 31, | |||||||||||||||||||||||
2009 | 2008 (c) | 2007 (c) | 2006 (c) | 2005 (c) | 2004 (c) | |||||||||||||||||||
Earnings, as defined: | ||||||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 339 | $ | 1,357 | $ | 1,281 | $ | 1,099 | $ | 795 | $ | 854 | ||||||||||||
Less earnings of equity method investments | 2 | 3 | 5 | 6 | 7 | 4 | ||||||||||||||||||
Distributed income from equity method investments | 2 | 3 | 7 | 3 | 5 | 5 | ||||||||||||||||||
339 | 1,357 | 1,283 | 1,096 | 793 | 855 | |||||||||||||||||||
Total fixed charges as below | 244 | 568 | 609 | 559 | 554 | 558 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Capitalized interest | 29 | 59 | 58 | 24 | 9 | 6 | ||||||||||||||||||
Preferred security distributions of subsidiaries on a pre-tax basis | 11 | 27 | 23 | 24 | 5 | 5 | ||||||||||||||||||
Interest expense related to discontinued operations | 2 | 8 | 35 | 36 | 37 | 30 | ||||||||||||||||||
Total fixed charges included in Income from Continuing Operations Before Income Taxes | 202 | 474 | 493 | 475 | 503 | 517 | ||||||||||||||||||
Total earnings | $ | 541 | $ | 1,831 | $ | 1,776 | $ | 1,571 | $ | 1,296 | $ | 1,372 | ||||||||||||
Fixed charges, as defined: | ||||||||||||||||||||||||
Interest on long-term debt | $ | 196 | $ | 478 | $ | 522 | $ | 482 | $ | 465 | $ | 491 | ||||||||||||
Interest on short-term debt and other interest | 15 | 28 | 35 | 13 | 29 | 20 | ||||||||||||||||||
Amortization of debt discount, expense and premium - net | 8 | 12 | 8 | 11 | 23 | 8 | ||||||||||||||||||
Estimated interest component of operating rentals | 13 | 22 | 21 | 29 | 32 | 34 | ||||||||||||||||||
Preferred securities distributions of subsidiaries on a pre-tax basis | 11 | 27 | 23 | 24 | 5 | 5 | ||||||||||||||||||
Fixed charges of majority-owned share of 50% or less-owned persons | 1 | 1 | ||||||||||||||||||||||
Total fixed charges (a) | $ | 244 | $ | 568 | $ | 609 | $ | 559 | $ | 554 | $ | 558 | ||||||||||||
Ratio of earnings to fixed charges | 2.2 | 3.2 | 2.9 | 2.8 | 2.3 | 2.5 | ||||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends (b) | 2.2 | 3.2 | 2.9 | 2.8 | 2.3 | 2.5 |
(a) | Interest on unrecognized tax benefits is not included in fixed charges. | |
(b) | 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. | |
(c) | Certain line items have been revised due to the expected sales of the Long Island generation business and the Maine hydroelectric generation business and the related reclassification of prior period operating results to "Income (Loss) from Discontinued Operations." |