EX-12.A 9 ppl10qexhibit12a.htm EXHIBIT 12(A) Exhibit 12(a)
Exhibit 12(a)
PPL CORPORATION AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Millions of Dollars)
 
   
12 Months
Ended
March 31,
  
12 Months
Ended
December 31,
   
2007
  
2006 (d)
  
2005 (d)
  
2004 (d)
  
2003 (d)
  
2002 (d)
Fixed charges, as defined:
                                                
Interest on long-term debt
  
$
491
    
$
482
    
$
465
    
$
491
    
$
417
    
$
486
  
Interest on short-term debt and
  other interest
    
20
      
13
      
29
      
20
      
25
      
70
  
Amortization of debt discount,
  expense and premium - net
    
10
      
11
      
23
      
8
      
41
      
25
  
Estimated interest component of
  operating rentals
    
26
      
29
      
32
      
34
      
45
      
38
  
Preferred securities distributions of
  subsidiaries on a pre-tax basis
    
24
      
24
      
5
      
5
      
45
      
79
  
                                                 
Total fixed charges (a)
  
$
571
    
$
559
    
$
554
    
$
558
    
$
573
    
$
698
  
Earnings, as defined:
                                                
Net income (b)
  
$
807
    
$
850
    
$
703
    
$
682
    
$
791
    
$
401
  
Preferred security dividend requirements
    
18
      
14
      
2
      
2
      
29
      
66
  
Less undistributed income (loss)
  of equity method investments
    
1
      
3
      
2
      
(1
)
    
(5
)
    
(9
)
     
824
      
861
      
703
      
685
      
825
      
476
  
Add:
                                                
Income taxes
    
248
      
268
      
128
      
213
      
163
      
225
  
Total fixed charges as above
  (excluding capitalized interest,
  preferred security distributions of
  subsidiaries on a pre-tax basis and
  interest expense related to discontinued
  operations)
    
487
      
481
      
512
      
525
      
500
      
579
  
                                                 
Total earnings
  
$
1,559
    
$
1,610
    
$
1,343
    
$
1,423
    
$
1,488
    
$
1,280
  
                                                 
Ratio of earnings to fixed charges
    
2.7
      
2.9
      
2.4
      
2.6
      
2.6
      
1.8
  
Ratio of earnings to combined fixed charges
  and preferred stock dividends (c)
    
2.7
      
2.9
      
2.4
      
2.6
      
2.6
      
1.8
  

(a)
  
Interest on unrecognized tax benefits is not included in fixed charges.
(b)
  
Net income excludes minority interest, income (loss) from discontinued operations and the cumulative effects of changes in accounting principles.
(c)
  
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.
(d)
  
Certain line items have been revised due to the planned sale of the Latin American businesses and the related reclassification of prior period operating results to "(Loss) Income from Discontinued Operations."