EX-12.A 2 dex12a.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12(a) PPL CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Millions of Dollars)
12 Months 12 Months Ended Ended March 31, December 31, --------- -------------------------------------------- 2001 2000 1999 (c) 1998 (c) 1997 (c) --------- --------- --------- --------- --------- Fixed charges, as defined: Interest on long-term debt....................................... $ 339 $ 323 $ 233 $ 203 $ 196 Interest on short-term debt and other interest................... 70 64 47 33 26 Amortization of debt discount, expense and premium - net......... 6 5 4 2 2 Interest on capital lease obligations: Charged to expense............................................. 4 9 8 9 Capitalized.................................................... 1 2 2 Estimated interest component of operating rentals................ 37 25 20 18 15 ------- ------- ------- ------- ------- Total fixed charges....................................... $ 452 $ 421 $ 314 $ 266 $ 250 ======= ======= ======= ======= ======= Earnings, as defined: Net income (a)................................................... $ 572 $ 491 $ 492 $ 379 $ 296 Preferred Stock Dividend Requirements........................... 26 26 26 25 24 Less undistributed income of equity method investments.......... 89 74 56 3 (25) ------- ------- ------- ------- ------- 509 443 462 401 345 Add (Deduct): Income taxes..................................................... 338 294 174 259 238 Amortization of capitalized interest on capital leases........... 2 2 2 2 Total fixed charges as above (excluding capitalized interest on capitalized lease obligations)..................... 452 421 313 264 248 ------- ------- ------- ------- ------- Total earnings............................................ $ 1,299 $ 1,160 $ 951 $ 926 $ 833 ======= ======= ======= ======= ======= Ratio of earnings to fixed charges (b)................................ 2.87 2.75 3.03 3.48 3.33 ======= ======= ======= ======= =======
(a) 2001, 2000, 1999 and 1998 net income excluding extraordinary items. (b) Based on earnings excluding nonrecurring items, the ratio of earnings to fixed charges are: March 2001, 2.79; 2000, 2.66; 1999, 2.80; 1998, 3.10; and 1997, 3.51. (c) Ratio of earnings to fixed charges for years 1999 and prior were recalculated to give proper effect of undistributed earnings of equity method investments. 53