EX-12.(A) 10 ppl-12312016ex12a.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)
 
 
 
 
 
 
 
 
 
 
 
 
 
Year
 
Year
 
Year
 
Year
 
Year
 
 
Ended
 
Ended
 
Ended
 
Ended
 
Ended
 
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
 
Dec. 31,
 
 
2016
 
2015 (a)
 
2014 (a)
 
2013 (a)
 
2012 (a)
Earnings, as defined:
 
 

 
 

 
 

 
 

 
 

Income from Continuing Operations Before
  Income Taxes
 
$
2,550

 
$
2,068

 
$
2,129

 
$
1,728

 
$
1,406

Adjustment to reflect earnings from equity method
  investments on a cash basis (b)
 
(1
)
 
(1
)
 
—

 
—

 
34

 
 
2,549

 
2,067

 
2,129

 
1,728

 
1,440

 
 
 
 
 
 
 
 
 
 
 
Total fixed charges as below
 
917

 
1,054

 
1,095

 
1,096

 
1,065

Less:
 
 
 
 
 
 
 
 
 
 
Capitalized interest
 
4

 
11

 
11

 
11

 
6

Preferred security distributions of subsidiaries
on a pre-tax basis
 
—

 
—

 
—

 
—

 
5

Interest expense and fixed charges related to discontinued operations
 
—

 
150

 
186

 
235

 
235

Total fixed charges included in Income from
  Continuing Operations Before Income Taxes
 
913

 
893

 
898

 
850

 
819

Total earnings
 
$
3,462

 
$
2,960

 
$
3,027

 
$
2,578

 
$
2,259

 
 
 
 
 
 
 
 
 
 
 
Fixed charges, as defined:
 
 
 
 
 
 
 
 
 
 
Interest charges (c)
 
$
900

 
$
1,038

 
$
1,073

 
$
1,058

 
$
1,019

Estimated interest component of operating rentals
 
17

 
16

 
22

 
38

 
41

Preferred securities distributions of subsidiaries
  on a pre-tax basis
 
—

 
—

 
—

 
—

 
5

Total fixed charges (d)
 
$
917

 
$
1,054

 
$
1,095

 
$
1,096

 
$
1,065

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
3.8

 
2.8

 
2.8

 
2.4

 
2.1

Ratio of earnings to combined fixed charges and
  preferred stock dividends (e)
 
3.8

 
2.8

 
2.8

 
2.4

 
2.1

 
 
(a)
Reflects PPL's former Supply segment as Discontinued Operations. See Note 8 to the Financial Statements for additional information.
(b)
Includes other-than-temporary impairment loss of $25 million in 2012.
(c)
Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net.  
(d)
Interest on unrecognized tax benefits is not included in fixed charges.
(e)
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.