EX-12.A 3 ppl-9302016_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, (a)
 
2016
 
2015
 
2014
 
2013
 
2012
 
2011
Earnings, as defined:
 
 
 
 
 
 
 
 
 
 
 
Income from Continuing Operations Before Income Taxes
$
1,947

 
$
2,068

 
$
2,129

 
$
1,728

 
$
1,406

 
$
922

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

 
(1
)
 
—

 
—

 
34

 
—

 
1,947

 
2,067

 
2,129

 
1,728

 
1,440

 
922

 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges as below
689

 
1,054

 
1,095

 
1,096

 
1,065

 
1,022

Less:
 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
3

 
11

 
11

 
11

 
6

 
4

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

 
—

 
—

 
—

 
5

 
23

Interest expense and fixed charges related to discontinued operations
—

 
150

 
186

 
235

 
235

 
231

Total fixed charges included in Income from Continuing Operations Before Income Taxes
686

 
893

 
898

 
850

 
819

 
764

 
 
 
 
 
 
 
 
 
 
 
 
Total earnings
$
2,633

 
$
2,960

 
$
3,027

 
$
2,578

 
$
2,259

 
$
1,686

 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges, as defined:
 
 
 
 
 
 
 
 
 
 
 
Interest charges (c)
$
681

 
$
1,038

 
$
1,073

 
$
1,058

 
$
1,019

 
$
955

Estimated interest component of operating rentals
8

 
16

 
22

 
38

 
41

 
44

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

 
—

 
—

 
—

 
5

 
23

 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges (d)
$
689

 
$
1,054

 
$
1,095

 
$
1,096

 
$
1,065

 
$
1,022

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
3.8

 
2.8

 
2.8

 
2.4

 
2.1

 
1.7

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

 
2.8

 
2.8

 
2.4

 
2.1

 
1.7

(a)
 
Reflects PPL's 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.