EX-12.A 3 0003.txt COMPUTATION OF RATION 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 Ended 12 Months Ended September 30, December 31, ------------- --------------------------------------------------- 2000 1999 (c) 1998 (c) 1997 (c) 1996 (c) ------------- --------- --------- --------- --------- Fixed charges, as defined: Interest on long-term debt............................. $ 299 $ 233 $ 203 $ 196 $ 207 Interest on short-term debt and other interest......... 57 47 33 26 17 Amortization of debt discount, expense and premium - net................................................ 5 4 2 2 2 Interest on capital lease obligations Charged to expense.................................. 6 9 8 9 13 Capitalized......................................... 1 2 2 2 Estimated interest component of operating rentals...... 23 20 18 15 8 ------------- --------- --------- --------- --------- Total fixed charges.......................... $ 390 $ 314 $ 266 $ 250 $ 249 ============= ========= ========= ========= ========= Earnings, as defined: Net income (a)......................................... $ 509 $ 478 $ 379 $ 296 $ 329 Preferred Stock Dividend Requirements.................. 26 26 25 24 28 Less undistributed income of equity method investments.......................................... 62 56 3 (25) 8 ------------- --------- --------- --------- --------- 473 448 401 345 349 Add (Deduct): Income taxes........................................... 296 174 259 238 253 Amortization of capitalized interest on capital leases............................................... 2 2 2 2 4 Total fixed charges as above (excluding capitalized interest on capital lease obligations)............... 390 313 264 248 247 ------------- --------- --------- --------- --------- Total earnings............................... $ 1,161 $ 937 $ 926 $ 833 $ 853 ============= ========= ========= ========= ========= Ratio of earnings to fixed charges (b) (c)................ 2.98 2.98 3.48 3.33 3.43 ============= ========= ========= ========= =========
(a) 2000, 1999 and 1998 net income excluding extraordinary items. (b) Based on earnings excluding one-time adjustments, the ratio of earnings to fixed charges are: September 2000, 2.65; 1999, 2.68; 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.