EX-12.A 11 form10q-exhibit12a.htm EXHIBIT 12(A) form10q-exhibit12a.htm
Exhibit 12(a)
PPL CORPORATION AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Millions of Dollars)
 
 
 
 
 
 
 
6 Months
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ended
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
 
Years Ended December 31,
 
 
 
 
 
 
2014 
 
2013 
 
2012 
 
2011 
 
2010 
 
2009 
Earnings, as defined:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations Before
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes (a)
$
 806 
 
$
 1,309 
 
$
 2,082 
 
$
 2,201 
 
$
 1,239 
 
$
 538 
 
 
Adjustment to reflect earnings from equity method
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
investments on a cash basis (b)
 
   
 
 
   
 
 
 34 
 
 
 1 
 
 
 7 
 
 
 1 
 
 
 
 
 
 806 
 
 
 1,309 
 
 
 2,116 
 
 
 2,202 
 
 
 1,246 
 
 
 539 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges as below
 
 548 
 
 
 1,096 
 
 
 1,065 
 
 
 1,022 
 
 
 698 
 
 
 513 
 
 
 
 
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
 
 16 
 
 
 47 
 
 
 53 
 
 
 51 
 
 
 30 
 
 
 43 
 
 
 
 
Preferred security distributions of subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
on a pre-tax basis
 
   
 
 
   
 
 
 5 
 
 
 23 
 
 
 21 
 
 
 24 
 
 
 
 
Interest expense and fixed charges related to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
discontinued operations
 
   
 
 
   
 
 
   
 
 
 3 
 
 
 12 
 
 
 15 
 
 
Total fixed charges included in Income from
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Continuing Operations Before Income Taxes
 
 532 
 
 
 1,049 
 
 
 1,007 
 
 
 945 
 
 
 635 
 
 
 431 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total earnings
$
 1,338 
 
$
 2,358 
 
$
 3,123 
 
$
 3,147 
 
$
 1,881 
 
$
 970 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges, as defined:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest charges (c)
$
 541 
 
$
 1,058 
 
$
 1,019 
 
$
 955 
 
$
 637 
 
$
 446 
 
 
Estimated interest component of operating rentals
 
 7 
 
 
 38 
 
 
 41 
 
 
 44 
 
 
 39 
 
 
 42 
 
 
Preferred security distributions of subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
on a pre-tax basis
 
   
 
 
   
 
 
 5 
 
 
 23 
 
 
 21 
 
 
 24 
 
 
Fixed charges of majority-owned share of 50% or
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
less-owned persons
 
   
 
 
   
 
 
   
 
 
   
 
 
 1 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges (d)
$
 548 
 
$
 1,096 
 
$
 1,065 
 
$
 1,022 
 
$
 698 
 
$
 513 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
 2.4 
 
 
 2.2 
 
 
 2.9 
 
 
 3.1 
 
 
 2.7 
 
 
 1.9 
Ratio of earnings to combined fixed charges and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
preferred stock dividends (e)
 
 2.4 
 
 
 2.2 
 
 
 2.9 
 
 
 3.1 
 
 
 2.7 
 
 
 1.9 

(a)
  
In September 2013, PPL Montana executed a definitive agreement to sell certain hydroelectric generating facilities.  The sale is not expected to close before the fourth quarter of 2014.  To facilitate the sale, in December 2013, PPL Montana terminated a lease agreement which resulted in a $697 million charge.  See Note 8 to the Financial Statements in PPL's 2013 Form 10-K 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.
 
143