EX-12.A 7 ppl10k2007exhibit12a.htm EXHIBIT 12(A) ppl10k2007exhibit12a.htm
Exhibit 12(a)
PPL CORPORATION AND SUBSIDIARIES
 
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Millions of Dollars)
                     
   
2007
  
2006
  
2005
  
2004
  
2003
                               
Earnings, as defined:
                                        
Net income (a)
  
$
1,016
    
$
842
    
$
695
    
$
681
    
$
772
  
Preferred security dividend requirements
    
18
      
14
      
2
      
2
      
29
  
Less undistributed income (loss)
  of equity method investments
            
3
      
2
      
(1
)
    
(5
)
Income taxes
    
270
      
268
      
128
      
196
      
162
  
Total fixed charges as below
  (excluding capitalized interest,
  preferred security distributions of
  subsidiaries on a pre-tax basis and
  interest expense related to
  discontinued  operations)
    
495
      
476
      
505
      
519
      
494
  
                                         
Total earnings
  
$
1,799
    
$
1,597
    
$
1,328
    
$
1,399
    
$
1,462
  
                                         
Fixed charges, as defined:
                                        
Interest on long-term debt
  
$
522
    
$
482
    
$
465
    
$
491
    
$
417
  
Interest on short-term debt and
  other interest
    
35
      
13
      
29
      
20
      
25
  
Amortization of debt discount,
  expense and premium - net
    
8
      
11
      
23
      
8
      
41
  
Estimated interest component of
  operating rentals
    
21
      
29
      
32
      
34
      
45
  
Preferred securities distributions of
  subsidiaries on a pre-tax basis
    
23
      
24
      
5
      
5
      
45
  
                                         
Total fixed charges (b)
  
$
609
    
$
559
    
$
554
    
$
558
    
$
573
  
                                         
                                         
Ratio of earnings to fixed charges
    
3.0
      
2.9
      
2.4
      
2.5
      
2.6
  
Ratio of earnings to combined fixed charges and preferred stock dividends (c)
    
3.0
      
2.9
      
2.4
      
2.5
      
2.6
  

(a)
  
Net income excludes minority interest, discontinued operations and the cumulative effects of changes in accounting principles.
(b)
  
Interest on unrecognized tax benefits is not included in fixed charges.
(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.