Nine Months Ended September 30, | Years Ended December 31, | ||||||||||||||||||||||
2017 | 2016 | 2015 (a) | 2014 (a) | 2013 (a) | 2012 (a) | ||||||||||||||||||
Earnings, as defined: | |||||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | $ | 1,371 | $ | 2,550 | $ | 2,068 | $ | 2,129 | $ | 1,728 | $ | 1,406 | |||||||||||
Adjustment to reflect earnings from equity method investments on a cash basis (b) | 1 | (1 | ) | (1 | ) | — | — | 34 | |||||||||||||||
1,372 | 2,549 | 2,067 | 2,129 | 1,728 | 1,440 | ||||||||||||||||||
Total fixed charges as below | 684 | 917 | 1,054 | 1,095 | 1,096 | 1,065 | |||||||||||||||||
Less: | |||||||||||||||||||||||
Capitalized interest | 3 | 4 | 11 | 11 | 11 | 6 | |||||||||||||||||
Preferred security distributions of subsidiaries on a pre-tax basis | — | — | — | — | — | 5 | |||||||||||||||||
Interest expense and fixed charges related to discontinued operations | — | — | 150 | 186 | 235 | 235 | |||||||||||||||||
Total fixed charges included in Income from Continuing Operations Before Income Taxes | 681 | 913 | 893 | 898 | 850 | 819 | |||||||||||||||||
Total earnings | $ | 2,053 | $ | 3,462 | $ | 2,960 | $ | 3,027 | $ | 2,578 | $ | 2,259 | |||||||||||
Fixed charges, as defined: | |||||||||||||||||||||||
Interest charges (c) | $ | 676 | $ | 900 | $ | 1,038 | $ | 1,073 | $ | 1,058 | $ | 1,019 | |||||||||||
Estimated interest component of operating rentals | 8 | 17 | 16 | 22 | 38 | 41 | |||||||||||||||||
Preferred security distributions of subsidiaries on a pre-tax basis | — | — | — | — | — | 5 | |||||||||||||||||
Total fixed charges (d) | $ | 684 | $ | 917 | $ | 1,054 | $ | 1,095 | $ | 1,096 | $ | 1,065 | |||||||||||
Ratio of earnings to fixed charges | 3.0 | 3.8 | 2.8 | 2.8 | 2.4 | 2.1 | |||||||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends (e) | 3.0 | 3.8 | 2.8 | 2.8 | 2.4 | 2.1 |
(a) | Reflects PPL's former Supply segment as Discontinued Operations. |
(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. |