EX-12.A 8 ppl-9302018_ex12a.htm EXHIBIT 12.A Exhibit


Exhibit 12(a)

PPL CORPORATION AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Millions of Dollars)
 
Nine Months Ended September 30,
 
Years Ended December 31,
 
2018
 
2017
 
2016
 
2015 (a)
 
2014 (a)
 
2013 (a)
Earnings, as defined:
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations Before Income Taxes
$
1,774

 
$
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
)
 
—

 
—

 
1,774

 
1,913

 
2,549

 
2,067

 
2,129

 
1,728

 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges as below
738

 
927

 
917

 
1,054

 
1,095

 
1,096

Less:
 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
6

 
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
732

 
923

 
913

 
893

 
898

 
850

 
 
 
 
 
 
 
 
 
 
 
 
Total earnings
$
2,506

 
$
2,836

 
$
3,462

 
$
2,960

 
$
3,027

 
$
2,578

 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges, as defined:
 
 
 
 
 
 
 
 
 
 
 
Interest charges (b)
$
730

 
$
912

 
$
900

 
$
1,038

 
$
1,073

 
$
1,058

Estimated interest component of operating rentals
8

 
15

 
17

 
16

 
22

 
38

 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges (c)
$
738

 
$
927

 
$
917

 
$
1,054

 
$
1,095

 
$
1,096

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (d)
3.4

 
3.1

 
3.8

 
2.8

 
2.8

 
2.4


(a)
Reflects PPL's former Supply segment as Discontinued Operations.
(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.