EX-12.A 3 ppl-6302017_ex12a.htm 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)

| Six Months Ended June 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 | $ | 900 |  |  | $ | 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 |
| 901 |  |  | 2,549 |  |  | 2,067 |  |  | 2,129 |  |  | 1,728 |  |  | 1,440 |
Total fixed charges as below | 449 |  |  | 917 |  |  | 1,054 |  |  | 1,095 |  |  | 1,096 |  |  | 1,065 |
Less: |  |  |  |  |  |  |  |  |  |  |
Capitalized interest | 2 |  |  | 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 | 447 |  |  | 913 |  |  | 893 |  |  | 898 |  |  | 850 |  |  | 819 |
Total earnings | $ | 1,348 |  |  | $ | 3,462 |  |  | $ | 2,960 |  |  | $ | 3,027 |  |  | $ | 2,578 |  |  | $ | 2,259 |
Fixed charges, as defined: |  |  |  |  |  |  |  |  |  |  |
Interest charges (c) | $ | 444 |  |  | $ | 900 |  |  | $ | 1,038 |  |  | $ | 1,073 |  |  | $ | 1,058 |  |  | $ | 1,019 |
Estimated interest component of operating rentals | 5 |  |  | 17 |  |  | 16 |  |  | 22 |  |  | 38 |  |  | 41 |
Preferred security distributions of subsidiaries on a pre-tax basis | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5 |
Total fixed charges (d) | $ | 449 |  |  | $ | 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.