EX-12.A 5 exhibit12a.htm EXHIBIT 12(A) 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)
 
                   
             
2014 (a)
  
2013 (a)
  
2012 (a)
  
2011 (a)
  
2010 (a)
Earnings, as defined:
                              
   
Income from Continuing Operations Before
                              
     
Income Taxes (b)
  
$
 2,364
  
$
 1,260
  
$
 2,009
  
$
 2,050
  
$
 1,218
   
Adjustment to reflect earnings from equity method
                              
     
investments on a cash basis (c)
    
 
    
 
    
 34
    
 1
    
 7
           
 2,364
    
 1,260
    
 2,043
    
 2,051
    
 1,225
                                         
   
Total fixed charges as below
    
 1,095
    
 1,096
    
 1,065
    
 1,022
    
 698
       
Less:
                              
       
Capitalized interest
    
 33
    
 46
    
 43
    
 42
    
 24
       
Preferred security distributions of subsidiaries
                              
         
on a pre-tax basis
    
 
    
 
    
 5
    
 23
    
 21
       
Interest expense and fixed charges related to
                              
         
discontinued operations
    
 10
    
 14
    
 12
    
 6
    
 34
   
Total fixed charges included in Income from
                              
     
Continuing Operations Before Income Taxes
    
 1,052
    
 1,036
    
 1,005
    
 951
    
 619
                                         
       
Total earnings
  
$
 3,416
  
$
 2,296
  
$
 3,048
  
$
 3,002
  
$
 1,844
                                         
Fixed charges, as defined:
                              
   
Interest charges (d)
  
$
 1,073
  
$
 1,058
  
$
 1,019
  
$
 955
  
$
 637
   
Estimated interest component of operating rentals
    
 22
    
 38
    
 41
    
 44
    
 39
   
Preferred securities distributions of subsidiaries
                              
     
on a pre-tax basis
    
 
    
 
    
 5
    
 23
    
 21
   
Fixed charges of majority-owned share of 50% or
                              
     
less-owned persons
    
 
    
 
    
 
    
 
    
 1
                                         
       
Total fixed charges (e)
  
$
 1,095
  
$
 1,096
  
$
 1,065
  
$
 1,022
  
$
 698
                                         
Ratio of earnings to fixed charges
    
 3.1
    
 2.1
    
 2.9
    
 2.9
    
 2.6
Ratio of earnings to combined fixed charges and
                              
 
preferred stock dividends (f)
    
 3.1
    
 2.1
    
 2.9
    
 2.9
    
 2.6

(a)
  
Years 2010 through 2014 reflect the reclassification of certain PPL Montana hydroelectric generating facilities and related assets as Discontinued Operations.  See Note 8 to the Financial Statements for additional information.
(b)
  
To facilitate the sale of the hydroelectric generating facilities referred to in (a) above, in December 2013, PPL Montana terminated a lease agreement which resulted in a $697 million charge.  See Note 8 to the Financial Statements for additional information.
(c)
  
Includes other-than-temporary impairment loss of $25 million in 2012.
(d)
  
Includes interest on long-term and short-term debt, as well as amortization of debt discount, expense and premium - net.
(e)
  
Interest on unrecognized tax benefits is not included in fixed charges.
(f)
  
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.

 337