ALLENTOWN, Pa., Oct. 29, 2015 /PRNewswire/ -- PPL
Corporation on Thursday (10/29) announced third-quarter 2015
reported earnings of $393 million, or
$0.58 per share, a decrease from
$497 million, or $0.74 per share, a year ago.
For the first nine months of 2015, PPL's reported earnings were
$283 million, or $0.42 per share, compared with $1.04 billion, or $1.57 per share, in the first nine months of
2014. The company's results for the first nine months of 2015
reflect a loss from discontinued operations of $915 million, or $1.36 per share, resulting primarily from the
June 1 spinoff of its competitive
Supply business.
Adjusting for special items, third-quarter 2015 earnings from
ongoing operations were $347 million,
or $0.51 per share, compared with
$297 million in earnings from ongoing
operations (adjusted), or $0.44 per
share, in the third quarter of 2014. This represents a 16 percent
increase on a per-share basis.
Adjusting for special items, including results from the
discontinued operations of the Supply segment, earnings from
ongoing operations for the first nine months of 2015 were
$1.20 billion, or $1.77 per share. This compares to earnings from
ongoing operations (adjusted) of $1.02
billion, or $1.54 per share,
in the first nine months of 2014, representing a 15 percent
increase on a per-share basis.
"Backed by the strong performance of our fully regulated
portfolio, we're well-positioned once again this year to extend
PPL's proven track record of meeting or exceeding earnings
expectations and delivering on our growth commitment to
shareowners," said William H.
Spence, PPL chairman, president and Chief Executive
Officer.
Spence reaffirmed the company's 2015 forecast range for earnings
from ongoing operations of $2.15 to
$2.25 per share. The 2015 forecast for reported earnings is
$0.80 to $0.90 per share, reflecting
special items recorded through the third quarter.
"Based on higher than expected earnings from the company's
regulated operations in the United
Kingdom and our low-risk business plans, we are now
confident we can achieve 6 percent compound annual earnings growth
through 2017," Spence said. The projection is based on 2014
adjusted earnings from ongoing operations of $2.03 per share. The company had previously
projected 4 percent to 6 percent
growth.
PPL's projected earnings growth is driven by more than
$3 billion a year in
investments to expand, rebuild and modernize infrastructure
to improve service to 10 million utility customers in the U.S. and
U.K.
Earnings from PPL's U.S.-based operations, including its
corporate services organization, are expected to grow 12 to 14
percent through 2017, with 1 to 2 percent earnings growth expected
in the U.K. Regulated segment.
Third-Quarter and Year-to-Date 2015 Earnings
Details
PPL's reported earnings for the third quarter of 2015 included
net special item after-tax credits of $46
million, or $0.07 per share,
resulting primarily from foreign currency-related economic
hedges.
Reported earnings for the third quarter of 2014 included net
special item after-tax credits of $181
million, or $0.27 per share,
resulting primarily from foreign currency-related economic hedges
and discontinued operations associated with the spinoff of the
Supply segment.
Reported earnings are calculated in accordance with U.S. GAAP.
"Earnings from ongoing operations" is a non-GAAP financial measure
that is adjusted for special items, including the Supply segment's
earnings and the loss from discontinued operations associated with
the spinoff of the Supply segment. In addition, 2014 has been
adjusted to reflect the impact of dissynergies related to the
spinoff of the Supply segment. Special items and the dissynergies
are fully detailed at the end of the news release.
(Dollars in
millions, except for per share amounts)
|
|
3rd
Quarter
|
|
|
|
|
Year to
Date
|
|
|
|
|
2015
|
|
2014
|
|
%
Change
|
|
|
2015
|
|
2014
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
earnings
|
|
$
|
393
|
|
|
$
|
497
|
|
|
(21%)
|
|
|
$
|
283
|
|
|
$
|
1,042
|
|
|
(73%)
|
Reported earnings per
share
|
|
$
|
0.58
|
|
|
$
|
0.74
|
|
|
(22%)
|
|
|
$
|
0.42
|
|
|
$
|
1.57
|
|
|
(73%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
|
|
|
Year to
Date
|
|
|
|
|
2015
|
|
2014
(adjusted)
|
|
%
Change
|
|
|
2015
|
|
2014
(adjusted)
|
|
%
Change
|
Earnings from ongoing
operations
|
|
$
|
347
|
|
|
$
|
297
|
|
|
17%
|
|
|
$
|
1,195
|
|
|
$
|
1,019
|
|
|
17%
|
Earnings from ongoing
operations
per share
|
|
$
|
0.51
|
|
|
$
|
0.44
|
|
|
16%
|
|
|
$
|
1.77
|
|
|
$
|
1.54
|
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(See the tables at the end of this news release for a
reconciliation of reported earnings (loss) to earnings from ongoing
operations.)
Third-Quarter and
Year-to-Date Earnings by Segment
|
|
|
|
3rd
Quarter
|
|
Year to
Date
|
Per
share
|
|
2015
|
|
2014
(adjusted)
|
|
2015
|
|
2014
(adjusted)
|
Earnings from
ongoing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
Regulated
|
|
$
|
0.29
|
|
|
$
|
0.28
|
|
|
$
|
1.15
|
|
|
$
|
1.01
|
|
Kentucky
Regulated
|
|
|
0.16
|
|
|
|
0.12
|
|
|
|
0.42
|
|
|
|
0.37
|
|
Pennsylvania
Regulated
|
|
|
0.08
|
|
|
|
0.08
|
|
|
|
0.28
|
|
|
|
0.29
|
|
Corporate and
Other1
|
|
|
(0.02)
|
|
|
|
(0.04)
|
|
|
|
(0.08)
|
|
|
|
(0.13)
|
|
Total
|
|
$
|
0.51
|
|
|
$
|
0.44
|
|
|
$
|
1.77
|
|
|
$
|
1.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Year to
Date
|
Special items and
dissynergy adjustments
|
|
|
2015
|
|
|
|
2014
(adjusted)
|
|
|
|
2015
|
|
|
|
2014
(adjusted)
|
|
Special items
(expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
Regulated
|
|
$
|
0.08
|
|
|
$
|
0.16
|
|
|
$
|
0.06
|
|
|
$
|
0.03
|
|
Kentucky
Regulated
|
|
|
–
|
|
|
|
–
|
|
|
|
(0.02)
|
|
|
|
–
|
|
Pennsylvania Regulated
|
|
|
–
|
|
|
|
0.01
|
|
|
|
–
|
|
|
|
–
|
|
Corporate and Other1
|
|
|
–
|
|
|
|
(0.03)
|
|
|
|
(0.03)
|
|
|
|
(0.11)
|
|
Supply/Discontinued Operations
|
|
|
(0.01)
|
|
|
|
0.13
|
|
|
|
(1.36)
|
|
|
|
0.02
|
|
Total special
items
|
|
|
0.07
|
|
|
|
0.27
|
|
|
|
(1.35)
|
|
|
|
(0.06)
|
|
Dissynergy
adjustments expense (benefit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other1
|
|
|
–
|
|
|
|
0.03
|
|
|
|
–
|
|
|
|
0.09
|
|
Total special items
and dissynergy
adjustments
|
|
$
|
0.07
|
|
|
$
|
0.30
|
|
|
$
|
(1.35)
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Year to
Date
|
Reported earnings
(loss)
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
U.K.
Regulated
|
|
$
|
0.37
|
|
|
$
|
0.44
|
|
|
$
|
1.21
|
|
|
$
|
1.04
|
|
Kentucky
Regulated
|
|
|
0.16
|
|
|
|
0.12
|
|
|
|
0.40
|
|
|
|
0.37
|
|
Pennsylvania
Regulated
|
|
|
0.08
|
|
|
|
0.09
|
|
|
|
0.28
|
|
|
|
0.29
|
|
Corporate and
Other1
|
|
|
(0.02)
|
|
|
|
(0.04)
|
|
|
|
(0.11)
|
|
|
|
(0.15)
|
|
Supply/Discontinued
Operations2
|
|
|
(0.01)
|
|
|
|
0.13
|
|
|
|
(1.36)
|
|
|
|
0.02
|
|
Total
|
|
$
|
0.58
|
|
|
$
|
0.74
|
|
|
$
|
0.42
|
|
|
$
|
1.57
|
|
|
1This
category primarily includes unallocated corporate-level financing
and other costs. For 2014, earnings from ongoing operations
(adjusted) and special items and dissynergy adjustments reflect the
impact of dissynergies related to the spinoff of the Supply
segment: Indirect O&M ($0.02 in the 3rd quarter and
$0.05 YTD), Interest ($0.01 in the 3rd quarter and $0.03
YTD), and Depreciation ($0.01 YTD).
|
|
22015
reported earnings includes five months of Supply segment earnings
and an $879 million loss reflecting the difference between PPL's
recorded value for the Supply segment and the estimated fair value,
a difference determined by PPL in conjunction with its accounting
for the spinoff.
|
(See the reconciliation tables at the end of this news
release for an itemization of special items and dissynergy
adjustments.)
Key Factors Impacting Earnings from Ongoing
Operations
U.K. Regulated Segment
PPL's U.K. Regulated segment primarily consists of the regulated
electricity delivery operations of Western Power Distribution
(WPD), serving Southwest and Central
England and South
Wales.
Earnings from ongoing operations in the third quarter of 2015
increased by $0.01 per share compared
with a year ago. This increase was primarily due to lower income
taxes and lower depreciation expense, partially offset by lower
utility revenues primarily driven by an April 1, 2015 price decrease due to the beginning
of a new eight-year price control period (RIIO-ED1).
Earnings from ongoing operations during the first nine months of
2015 increased by $0.14 per share
compared with a year ago. This increase was primarily due to lower
income taxes, lower depreciation expense and higher utility revenue
driven by an April 1, 2014 price
increase, which was partially offset by lower prices driven by an
April 1, 2015 price decrease due to
the commencement of RIIO-ED1.
Kentucky Regulated Segment
PPL's Kentucky Regulated segment primarily consists of the
regulated electricity and natural gas operations of Louisville Gas
and Electric Company and the regulated electricity operations of
Kentucky Utilities Company.
Earnings from ongoing operations in the third quarter of 2015
increased by $0.04 per share compared
with a year ago. This increase was primarily due to higher returns
on additional environmental capital investments and higher base
electricity rates effective July 1,
2015, partially offset by higher operation and maintenance
expense.
Earnings from ongoing operations during the first nine months of
2015 increased by $0.05 per share
compared with a year ago. This was primarily due to higher returns
on additional environmental capital investments and higher base
electricity rates effective July 1,
2015, partially offset by higher operation and maintenance
expense, including costs associated with the retirement of
coal-fired generation at the Cane Run facility.
Pennsylvania Regulated Segment
PPL's Pennsylvania Regulated segment consists of the regulated
electricity delivery operations of PPL Electric Utilities. Earnings
from ongoing operations in the third quarter of 2015 were the same
as a year ago.
Earnings from ongoing operations during the first nine months of
2015 decreased by $0.01 per share
compared with a year ago, driven primarily by higher depreciation
expense, higher operation and maintenance expense and higher income
tax expense, partially offset by higher transmission and
distribution margins.
Corporate and Other
PPL's Corporate and Other category primarily includes unallocated
corporate-level financing and other costs.
Corporate and Other improved by $0.02 per share in the third quarter of 2015
compared to the third quarter of 2014 (adjusted), and by
$0.05 per share for the first nine
months of 2015 compared to a year ago. This was primarily due to
the benefits of the corporate restructuring.
Forecast of
Earnings from Ongoing Operations
|
|
|
2015
forecast midpoint
|
|
2014 earnings
from ongoing
operations
(adjusted)
|
Per
share
|
|
|
|
|
|
U.K.
Regulated
|
$ 1.43
|
|
|
$ 1.37
|
|
Kentucky
Regulated
|
0.51
|
|
|
0.47
|
|
Pennsylvania
Regulated
|
0.37
|
|
|
0.40
|
|
Corporate and
Other1
|
(0.11)
|
|
|
(0.21)
|
|
Total
|
$ 2.20
|
|
|
$ 2.03
|
|
1
This category primarily includes unallocated corporate-level
financing and other costs. For 2014, earnings from ongoing
operations (adjusted) reflect the full impact of dissynergies
related to the spinoff of the Supply segment: Indirect O&M
($0.07), Interest ($0.05) and Depreciation ($0.01).
|
See the tables at the end of this news release for a
reconciliation of reported earnings to 2014 earnings from ongoing
operations (adjusted).
The midpoint of PPL's 2015 forecast earnings from ongoing
operations of $2.20 per share
represents an increase of 8.4 percent compared to 2014 earnings
from ongoing operations (adjusted). This increase is primarily
attributable to increases in the U.K. Regulated and Kentucky
Regulated segments and lower Corporate and Other charges as
detailed below.
U.K. Regulated Segment
PPL projects higher segment earnings in 2015 compared with 2014,
primarily driven by lower income taxes and lower depreciation
expense, partially offset by lower utility revenue from a price
decrease due to the commencement of RIIO-ED1 effective April 1, 2015. The remaining 2015 foreign
currency earnings exposure for this segment is fully hedged at an
average rate of $1.54 per pound.
Kentucky Regulated Segment
PPL projects higher segment earnings in 2015 compared with 2014,
primarily driven by electric and gas base rate increases effective
July 1, 2015, and returns on
additional environmental capital investments, partially offset by
higher operation and maintenance expense, higher depreciation and
higher financing costs.
Pennsylvania Regulated Segment
PPL projects lower segment earnings in 2015 compared with 2014,
primarily driven by higher operation and maintenance expense and
higher depreciation expense, partially offset by higher
transmission and distribution margins.
Corporate and Other
PPL projects lower costs in this category in 2015 compared with
2014, primarily driven by cost reductions resulting from corporate
restructuring efforts and lower income taxes.
Headquartered in Allentown,
Pa., PPL Corporation (NYSE: PPL) is one of the largest
companies in the U.S. utility sector. PPL's seven high-performing,
award-winning utilities serve 10 million customers in the U.S. and
United Kingdom. The company and
its 13,000 employees are dedicated to providing exceptional
customer service and reliability and delivering superior value for
shareowners. To learn more, visit www.pplweb.com.
(Note: All references to earnings per share in the text and
tables of this news release are stated in terms of diluted earnings
per share unless otherwise noted.)
Conference Call and Webcast
PPL invites interested parties to listen to a live Internet
webcast of management's teleconference with financial analysts
about third-quarter 2015 financial results at 8:30 a.m. Eastern Standard time on Thursday, Oct. 29. The call will be
webcast live, in audio format, along with slides of the
presentation. For those who are unable to listen to the live
webcast, a replay with slides will be accessible at
www.pplweb.com/investors for 30 days after the call.
Interested individuals can access the live conference call via
telephone at 1-888-317-6003. International participants should call
1-412-317-6061. Participants in Canada should call 1-866-284-3684.
Participants will need to enter the following "Elite Entry" number
in order to join the conference: 8202071.
"Earnings from ongoing operations," should not be considered
as an alternative to reported earnings, or net income, which is an
indicator of operating performance determined in accordance with
U.S. generally accepted accounting principles (GAAP). PPL believes
that "earnings from ongoing operations," although a non-GAAP
financial measure, is also useful and meaningful to investors
because it provides management's view of PPL's earnings excluding
the Supply segment, as the spinoff was completed June 1, 2015. Other companies may use different
measures to present financial performance. "Earnings from ongoing
operations" is adjusted for the impact of special items as
described below, which includes the Supply segment's earnings now
reflected in discontinued operations. Also included in special
items is the loss on spinoff resulting from the fair value of the
Supply segment being less than PPL's recorded value as of
June 1, 2015, the date of the
spinoff. "Earnings from ongoing operations (adjusted)" for 2014
also reflects, within the Corporate and Other category, the impact
of spinoff dissynergies that would remain with PPL after the
completion of the transaction, if left unmitigated.
"Earnings from ongoing operations" is adjusted for the impact
of special items. Special items include:
- Unrealized gains or losses on foreign currency-related
economic hedges.
- Supply segment discontinued operations.
- Loss on the spinoff of the Supply segment.
- Gains and losses on sales of assets not in the ordinary
course of business.
- Impairment charges.
- Workforce reduction and other restructuring
effects.
- Acquisition and divestiture-related adjustments.
- Other charges or credits that are, in management's view, not
reflective of the company's ongoing operations.
Statements contained in this news release, including
statements with respect to future earnings, cash flows, financing,
regulation and corporate strategy, are "forward-looking statements"
within the meaning of the federal securities laws. Although PPL
Corporation believes that the expectations and assumptions
reflected in these forward-looking statements are reasonable, these
statements are subject to a number of risks and uncertainties, and
actual results may differ materially from the results discussed in
the statements. The following are among the important factors that
could cause actual results to differ materially from the
forward-looking statements: market demand for energy in our service
territories; weather conditions affecting customer energy usage and
operating costs; the effect of any business or industry
restructuring, including the ability of PPL Corporation to realize
all or a significant portion of the anticipated cost savings
from the corporate restructuring efforts following the Supply
business spinoff; the profitability and liquidity of PPL
Corporation and its subsidiaries; new accounting requirements or
new interpretations or applications of existing requirements;
operating performance of our facilities; the length of scheduled
and unscheduled outages at our generating plants; environmental
conditions and requirements and the related costs of compliance;
system conditions and operating costs; development of new projects,
markets and technologies; performance of new ventures; asset or
business acquisitions and dispositions; any impact of hurricanes or
other severe weather on our business; receipt of necessary
government permits, approvals, rate relief and regulatory cost
recovery; capital market conditions and decisions regarding capital
structure; the impact of state, federal or foreign investigations
applicable to PPL Corporation and its subsidiaries; the outcome of
litigation against PPL Corporation and its subsidiaries; stock
price performance; the market prices of equity securities and the
impact on pension income and resultant cash funding requirements
for defined benefit pension plans; the securities and credit
ratings of PPL Corporation and its subsidiaries; political,
regulatory or economic conditions in states, regions or countries
where PPL Corporation or its subsidiaries conduct business,
including any potential effects of threatened or actual terrorism
or war or other hostilities; British pound sterling to U.S. dollar
exchange rates; new state, federal or foreign legislation,
including new tax legislation; and the commitments and liabilities
of PPL Corporation and its subsidiaries. Any such forward-looking
statements should be considered in light of such important factors
and in conjunction with PPL Corporation's Form 10-K and other
reports on file with the Securities and Exchange
Commission.
Note to Editors: Visit our media website at
www.pplnewsroom.com for additional news and background about PPL
Corporation.
PPL CORPORATION
AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED FINANCIAL INFORMATION (a)
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(Millions of
Dollars)
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
|
2015
|
|
2014
(b)
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
981
|
|
$
|
1,399
|
Short-term
investments
|
|
|
|
|
|
120
|
Accounts
receivable
|
|
|
777
|
|
|
808
|
Unbilled
revenues
|
|
|
421
|
|
|
517
|
Fuel, materials and
supplies
|
|
|
321
|
|
|
381
|
Current assets of
discontinued operations
|
|
|
|
|
|
2,600
|
Other current
assets
|
|
|
490
|
|
|
334
|
Property, Plant and
Equipment
|
|
|
|
|
|
|
|
Regulated utility
plant
|
|
|
33,752
|
|
|
30,568
|
|
Less: Accumulated
depreciation - regulated utility plant
|
|
|
5,632
|
|
|
5,361
|
|
|
Regulated utility
plant, net
|
|
|
28,120
|
|
|
25,207
|
|
Non-regulated
property, plant and equipment
|
|
|
534
|
|
|
592
|
|
Less: Accumulated
depreciation - non-regulated property, plant and
equipment
|
|
|
170
|
|
|
162
|
|
|
Non-regulated
property, plant and equipment, net
|
|
|
364
|
|
|
430
|
|
Construction work in
progress
|
|
|
1,478
|
|
|
2,532
|
|
Property, Plant and
Equipment, net
|
|
|
29,962
|
|
|
28,169
|
Noncurrent regulatory
assets
|
|
|
1,627
|
|
|
1,562
|
Goodwill and other
intangibles
|
|
|
4,285
|
|
|
4,335
|
Noncurrent assets of
discontinued operations
|
|
|
|
|
|
8,317
|
Other noncurrent
assets
|
|
|
382
|
|
|
322
|
Total
Assets
|
|
$
|
39,246
|
|
$
|
48,864
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Short-term
debt
|
|
$
|
557
|
|
$
|
836
|
Long-term debt due
within one year
|
|
|
1,460
|
|
|
1,000
|
Accounts
payable
|
|
|
808
|
|
|
995
|
Current liabilities
of discontinued operations
|
|
|
|
|
|
2,775
|
Other current
liabilities
|
|
|
1,643
|
|
|
1,837
|
Long-term
debt
|
|
|
17,745
|
|
|
17,173
|
Deferred income taxes
and investment tax credits
|
|
|
3,865
|
|
|
3,359
|
Accrued pension
obligations
|
|
|
963
|
|
|
1,457
|
Asset retirement
obligations
|
|
|
539
|
|
|
324
|
Noncurrent regulatory
liabilities
|
|
|
962
|
|
|
992
|
Noncurrent
liabilities of discontinued operations
|
|
|
|
|
|
3,963
|
Other noncurrent
liabilities
|
|
|
482
|
|
|
525
|
Common stock and
additional paid-in capital
|
|
|
9,637
|
|
|
9,440
|
Earnings reinvested
(c)
|
|
|
2,791
|
|
|
6,462
|
Accumulated other
comprehensive loss
|
|
|
(2,206)
|
|
|
(2,274)
|
Total Liabilities
and Equity
|
|
$
|
39,246
|
|
$
|
48,864
|
|
|
(a)
|
The Financial
Statements in this news release have been condensed and summarized
for purposes of this presentation. Please refer to PPL
Corporation's periodic filings with the Securities and Exchange
Commission for full financial statements, including note
disclosure.
|
(b)
|
Amounts have been
reclassified to reflect the Supply segment as a discontinued
operation.
|
(c)
|
2015 reflects the
impact of the spinoff of the Supply segment and a $3.2 billion
related dividend.
|
PPL CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Income (Unaudited)
|
(Millions of
Dollars, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
2015
|
|
2014
(a)
|
|
2015
(a)
|
|
2014
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
1,878
|
|
$
|
1,879
|
|
$
|
5,889
|
|
$
|
5,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
|
228
|
|
|
240
|
|
|
695
|
|
|
748
|
|
|
Energy
purchases
|
|
|
177
|
|
|
173
|
|
|
676
|
|
|
683
|
|
|
Other operation and
maintenance
|
|
|
482
|
|
|
467
|
|
|
1,405
|
|
|
1,382
|
|
Depreciation
|
|
|
226
|
|
|
233
|
|
|
658
|
|
|
688
|
|
Taxes, other than
income
|
|
|
79
|
|
|
78
|
|
|
241
|
|
|
238
|
|
Total Operating
Expenses
|
|
|
1,192
|
|
|
1,191
|
|
|
3,675
|
|
|
3,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
686
|
|
|
688
|
|
|
2,214
|
|
|
2,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) - net
|
|
|
75
|
|
|
136
|
|
|
61
|
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
|
221
|
|
|
213
|
|
|
645
|
|
|
637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Continuing Operations Before Income Taxes
|
|
|
540
|
|
|
611
|
|
|
1,630
|
|
|
1,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes
|
|
|
144
|
|
|
201
|
|
|
432
|
|
|
534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Continuing Operations After Income Taxes
|
|
|
396
|
|
|
410
|
|
|
1,198
|
|
|
1,029
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Discontinued Operations (net of income taxes)
|
|
|
(3)
|
|
|
87
|
|
|
(915)
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
|
393
|
|
$
|
497
|
|
$
|
283
|
|
$
|
1,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
of Common Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Continuing Operations After Income Taxes Available
|
|
|
|
|
|
|
|
|
|
|
to PPL Common
Shareowners:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.59
|
|
$
|
0.61
|
|
$
|
1.78
|
|
$
|
1.58
|
|
Diluted
|
|
$
|
0.59
|
|
$
|
0.61
|
|
$
|
1.78
|
|
$
|
1.55
|
|
Net Income
Available to PPL Common Shareowners:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.58
|
|
$
|
0.74
|
|
$
|
0.42
|
|
$
|
1.60
|
|
Diluted
|
|
$
|
0.58
|
|
$
|
0.74
|
|
$
|
0.42
|
|
$
|
1.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares of Common Stock Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
670,763
|
|
|
664,432
|
|
|
668,731
|
|
|
649,561
|
|
Diluted
|
|
|
673,702
|
|
|
666,402
|
|
|
671,254
|
|
|
665,501
|
|
|
(a)
|
Amounts have been
reclassified to reflect the Supply segment as a discontinued
operation.
|
PPL CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(Millions of
Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
2015
(a)
|
|
2014
(a)
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
|
Net income
|
|
$
|
283
|
|
$
|
1,042
|
|
(Income) loss from
discontinued operations (net of income taxes)
|
|
|
915
|
|
|
(13)
|
|
Income from
continuing operations (net of income taxes)
|
|
|
1,198
|
|
|
1,029
|
|
Adjustments to
reconcile Income from continuing operations (net of taxes) to net
cash provided by operating activities - continuing
operations
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
658
|
|
|
688
|
|
|
Amortization
|
|
|
46
|
|
|
51
|
|
|
Defined benefit plans
- expense
|
|
|
44
|
|
|
37
|
|
|
Deferred income taxes
and investment tax credits
|
|
|
359
|
|
|
416
|
|
|
Unrealized gains on
derivatives, and other hedging activities
|
|
|
(17)
|
|
|
(99)
|
|
|
Adjustment to WPD
line loss accrual
|
|
|
|
|
|
65
|
|
|
Stock-based
compensation expense
|
|
|
26
|
|
|
24
|
|
|
Other
|
|
|
9
|
|
|
(1)
|
|
Change in current
assets and current liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
(180)
|
|
|
(53)
|
|
|
Unbilled
revenues
|
|
|
91
|
|
|
122
|
|
|
Taxes
payable
|
|
|
(142)
|
|
|
138
|
|
|
Other
|
|
|
53
|
|
|
(17)
|
|
Other operating
activities
|
|
|
|
|
|
|
|
|
Defined benefit plans
- funding
|
|
|
(396)
|
|
|
(290)
|
|
|
Other
|
|
|
(61)
|
|
|
53
|
|
|
|
Net cash provided by
operating activities - continuing operations
|
|
|
1,688
|
|
|
2,163
|
|
Net cash provided by
operating activities - discontinued operations
|
|
|
343
|
|
|
465
|
|
|
|
Net cash provided by
operating activities
|
|
|
2,031
|
|
|
2,628
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
|
|
Investing
activities from continuing operations:
|
|
|
|
|
|
|
|
Expenditures for
property, plant and equipment
|
|
|
(2,560)
|
|
|
(2,602)
|
|
Expenditures for
intangible assets
|
|
|
(32)
|
|
|
(36)
|
|
Purchase of other
investments
|
|
|
(15)
|
|
|
|
|
Proceeds from the
sale of other investments
|
|
|
136
|
|
|
|
|
Net decrease in
restricted cash and cash equivalents
|
|
|
5
|
|
|
12
|
|
Other investing
activities
|
|
|
3
|
|
|
(4)
|
|
|
|
Net cash used in
investing activities - continuing operations
|
|
|
(2,463)
|
|
|
(2,630)
|
|
Net cash used in
investing activities - discontinued operations
|
|
|
(149)
|
|
|
(344)
|
|
|
|
Net cash used in
investing activities
|
|
|
(2,612)
|
|
|
(2,974)
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
|
Financing
activities from continuing operations:
|
|
|
|
|
|
|
|
Issuance of long-term
debt
|
|
|
1,137
|
|
|
296
|
|
Retirement of
long-term debt
|
|
|
|
|
|
(237)
|
|
Issuance of common
stock
|
|
|
145
|
|
|
1,037
|
|
Payment of common
stock dividends
|
|
|
(750)
|
|
|
(718)
|
|
Net decrease in
short-term debt
|
|
|
(271)
|
|
|
(192)
|
|
Other financing
activities
|
|
|
(30)
|
|
|
(49)
|
|
|
|
Net cash provided by
financing activities - continuing operations
|
|
|
231
|
|
|
137
|
|
Net cash used in
financing activities - discontinued operations
|
|
|
(546)
|
|
|
(166)
|
|
Net cash
distributions to parent from discontinued operations
|
|
|
132
|
|
|
448
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
|
(183)
|
|
|
419
|
Effect of Exchange
Rates on Cash and Cash Equivalents
|
|
|
(6)
|
|
|
13
|
Net Decrease in
Cash and Cash Equivalents included in Discontinued
Operations
|
|
|
352
|
|
|
45
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
|
|
(418)
|
|
|
131
|
Cash and Cash
Equivalents at Beginning of Period
|
|
|
1,399
|
|
|
863
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
981
|
|
$
|
994
|
|
|
(a)
|
Amounts have been
reclassified to reflect the Supply segment as a discontinued
operation.
|
Key Indicators
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
Financial
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share of common stock
|
|
|
$1.495
|
|
$1.485
|
Book value per share
(a)(b)(c)
|
|
|
$15.22
|
|
$21.02
|
Market price per
share (a)
|
|
|
$32.89
|
|
$32.84
|
Dividend
yield
|
|
|
4.5%
|
|
4.5%
|
Dividend payout ratio
(d)(e)
|
|
|
102.4%
|
|
103.8%
|
Dividend payout ratio
- earnings from ongoing operations (d)(f)
|
|
|
65.9%
|
|
60.1%
|
Price/earnings ratio
(d)(e)
|
|
|
22.5
|
|
23.0
|
Price/earnings ratio
- earnings from ongoing operations (d)(f)
|
|
|
14.5
|
|
13.3
|
Return on average
common equity (e)
|
|
|
7.7%
|
|
7.2%
|
Return on average
common equity - earnings from ongoing operations (f)
|
|
|
12.0%
|
|
12.5%
|
|
|
(a)
|
End of
period.
|
(b)
|
Based on 671,792 and
664,653 shares of common stock outstanding (in thousands) at
September 30, 2015, and September 30, 2014.
|
(c)
|
2015 reflects the
impact of the spinoff of the Supply segment and a $3.2 billion
related dividend.
|
(d)
|
Based on diluted
earnings per share.
|
(e)
|
2015 includes the
impact of the $879 million loss on the spinoff of the Supply
segment, reflecting the difference between PPL's recorded value for
the Supply segment and the estimated fair value determined in
accordance with applicable accounting rules under GAAP. 2015 also
includes eight months of Supply segment earnings, compared to 12
months in 2014.
|
(f)
|
The calculation for
2015 includes three months of earnings from 2014 that were adjusted
for Supply segment earnings and the impact of dissynergies related
to the spinoff of the Supply segment. 2014 was not adjusted
for such items. Earnings from ongoing operations is a non-GAAP
financial measure that includes adjustments described in the text
and tables of this news release.
|
Operating -
Domestic & International Electricity Sales
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
September 30,
|
|
9 Months Ended
September 30,
|
|
|
|
|
|
|
|
|
Percent
|
|
|
|
|
|
Percent
|
(GWh)
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Retail
Delivered
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PPL Electric
Utilities
|
|
9,423
|
|
8,945
|
|
5.3%
|
|
28,551
|
|
27,953
|
|
2.1%
|
|
LKE
|
|
8,282
|
|
8,120
|
|
2.0%
|
|
23,984
|
|
24,033
|
|
(0.2%)
|
|
|
Total
|
|
17,705
|
|
17,065
|
|
3.8%
|
|
52,535
|
|
51,986
|
|
1.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Retail
Supplied
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LKE (a)
|
|
8,282
|
|
8,120
|
|
2.0%
|
|
23,984
|
|
24,033
|
|
(0.2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Delivered
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom
|
|
17,293
|
|
17,255
|
|
0.2%
|
|
57,122
|
|
56,954
|
|
0.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Wholesale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LKE (b)
|
|
606
|
|
589
|
|
2.9%
|
|
1,789
|
|
1,851
|
|
(3.3%)
|
|
|
(a)
|
Represents GWh
supplied by LKE to retail customers in Kentucky, Virginia and
Tennessee.
|
(b)
|
Represents
FERC-regulated municipal and unregulated off-system
sales.
|
Reconciliation of
Segment Reported Earnings (Loss) to Earnings from Ongoing
Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of
dollars)
|
3rd Quarter
2015
|
|
Year-to-Date
September 30, 2015
|
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
&
|
|
Disc.
|
|
Total
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
&
|
|
Disc.
|
|
Total
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
Other
|
|
Ops.
|
|
Corp.
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
Other
|
|
Ops.(a)
|
|
Corp.
|
Reported Earnings
(Loss)
|
$
|
249
|
|
$
|
111
|
|
$
|
55
|
|
$
|
(18)
|
|
$
|
(4)
|
|
$
|
393
|
|
$
|
814
|
|
$
|
267
|
|
$
|
191
|
|
$
|
(73)
|
|
$
|
(916)
|
|
$
|
283
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54
|
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(916)
|
|
|
(916)
|
|
Transition and
transaction costs
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
(16)
|
|
|
|
|
|
(16)
|
|
Employee transitional
services
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
|
|
|
|
(4)
|
|
Separation
benefits
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
|
|
|
|
(3)
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WPD Midlands
acquisition-related adj.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
Settlement-certain
income tax positions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
Certain valuation
allowances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8)
|
|
|
|
|
|
|
|
|
|
|
|
(8)
|
|
LKE
acquisition-related adjustment
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Total Special
Items
|
|
54
|
|
|
(1)
|
|
|
|
|
|
(3)
|
|
|
(4)
|
|
|
46
|
|
|
40
|
|
|
(13)
|
|
|
|
|
|
(23)
|
|
|
(916)
|
|
|
(912)
|
Earnings from
Ongoing Operations
|
$
|
195
|
|
$
|
112
|
|
$
|
55
|
|
$
|
(15)
|
|
$
|
|
|
$
|
347
|
|
$
|
774
|
|
$
|
280
|
|
$
|
191
|
|
$
|
(50)
|
|
$
|
|
|
$
|
1,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
3rd Quarter
2015
|
|
Year-to-Date
September 30, 2015
|
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
&
|
|
Disc.
|
|
Total
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
&
|
|
Disc.
|
|
Total
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
Other
|
|
Ops.
|
|
Corp.
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
Other
|
|
Ops.(a)
|
|
Corp.
|
Reported Earnings
(Loss)
|
$
|
0.37
|
|
$
|
0.16
|
|
$
|
0.08
|
|
$
|
(0.02)
|
|
$
|
(0.01)
|
|
$
|
0.58
|
|
$
|
1.21
|
|
$
|
0.40
|
|
$
|
0.28
|
|
$
|
(0.11)
|
|
$
|
(1.36)
|
|
$
|
0.42
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.08
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1.36)
|
|
|
(1.36)
|
|
Transition and
transaction costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
(0.02)
|
|
Employee transitional
services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
(0.01)
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement-certain
income tax positions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03
|
|
Certain valuation
allowances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
LKE
acquisition-related adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
Total Special
Items
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
0.07
|
|
|
0.06
|
|
|
(0.02)
|
|
|
|
|
|
(0.03)
|
|
|
(1.36)
|
|
|
(1.35)
|
Earnings from
Ongoing Operations
|
$
|
0.29
|
|
$
|
0.16
|
|
$
|
0.08
|
|
$
|
(0.02)
|
|
$
|
|
|
$
|
0.51
|
|
$
|
1.15
|
|
$
|
0.42
|
|
$
|
0.28
|
|
$
|
(0.08)
|
|
$
|
|
|
$
|
1.77
|
|
|
(a)
|
Represents the Supply
segment, which includes an $879 million charge reflecting the
difference between PPL's recorded value for the Supply segment and
the estimated fair value determined in accordance with applicable
accounting rules under GAAP.
|
Reconciliation of
Segment Reported Earnings (Loss) to Earnings from Ongoing
Operations (Adjusted)
|
(After-Tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of
dollars)
|
3rd Quarter
2014
|
|
|
Year-to-Date
September 30, 2014
|
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
&
|
|
Disc.
|
|
Total
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
&
|
|
Disc.
|
|
Total
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
Other(a)
|
|
Ops.(a)
|
|
Corp.
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
Other(a)
|
|
Ops.(a)
|
|
Corp.
|
Reported Earnings
(Loss)
|
$
|
295
|
|
$
|
82
|
|
$
|
57
|
|
$
|
(24)
|
|
$
|
87
|
|
$
|
497
|
|
$
|
688
|
|
$
|
247
|
|
$
|
194
|
|
$
|
(100)
|
|
$
|
13
|
|
$
|
1,042
|
Less: Special
Items (expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
111
|
|
|
72
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
72
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply segment
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
86
|
|
|
86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16
|
|
|
16
|
|
Discontinued
operations adjustments
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
|
|
7
|
|
|
|
|
Change in tax
valuation allowances
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
|
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
(49)
|
|
|
|
|
|
(49)
|
|
Transition and
transaction costs
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
|
|
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
|
(10)
|
|
|
(13)
|
|
Separation
benefits
|
|
|
|
|
|
|
|
|
|
|
(11)
|
|
|
|
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
(11)
|
|
|
|
|
|
(11)
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in WPD line
loss accrual
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(52)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(52)
|
|
EEI
adjustments
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separation
benefits
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
(2)
|
Total Special
Items
|
|
111
|
|
|
(1)
|
|
|
2
|
|
|
(18)
|
|
|
87
|
|
|
181
|
|
|
20
|
|
|
|
|
|
(2)
|
|
|
(70)
|
|
|
13
|
|
|
(39)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dissynergies-spinoff
of Supply segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense(benefit):
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect operation
and maintenance
|
|
|
|
|
|
|
|
|
|
|
10
|
|
|
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
35
|
|
|
|
|
|
35
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
22
|
|
|
|
|
|
22
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
|
|
5
|
Total
dissynergies-spinoff of Supply segment
|
|
|
|
|
|
|
|
|
|
|
19
|
|
|
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
62
|
|
|
|
|
|
62
|
Earnings from
Ongoing Operations(Adjusted)
|
$
|
184
|
|
$
|
83
|
|
$
|
55
|
|
$
|
(25)
|
|
$
|
|
|
$
|
297
|
|
$
|
668
|
|
$
|
247
|
|
$
|
196
|
|
$
|
(92)
|
|
$
|
|
|
$
|
1,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
3rd Quarter
2014
|
|
Year-to-Date
September 30, 2014 (c)
|
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
&
|
|
Disc.
|
|
Total
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
&
|
|
Disc.
|
|
Total
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
Other(a)
|
|
Ops.(a)
|
|
Corp.
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
Other(a)
|
|
Ops.(a)
|
|
Corp.
|
Reported Earnings
(Loss)
|
$
|
0.44
|
|
$
|
0.12
|
|
$
|
0.09
|
|
$
|
(0.04)
|
|
$
|
0.13
|
|
$
|
0.74
|
|
$
|
1.04
|
|
$
|
0.37
|
|
$
|
0.29
|
|
$
|
(0.15)
|
|
$
|
0.02
|
|
$
|
1.57
|
Less: Special
Items (expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.16
|
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.11
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply segment
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.13
|
|
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
0.02
|
|
Discontinued
operations adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
0.01
|
|
|
|
|
Change in tax
valuation allowances
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
(0.07)
|
|
|
|
|
|
(0.07)
|
|
Transition and
transaction costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.02)
|
|
Separation
benefits
|
|
|
|
|
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
(0.02)
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in WPD line
loss accrual
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.08)
|
|
Separation
benefits
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Special
Items
|
|
0.16
|
|
|
|
|
|
0.01
|
|
|
(0.03)
|
|
|
0.13
|
|
|
0.27
|
|
|
0.03
|
|
|
|
|
|
|
|
|
(0.11)
|
|
|
0.02
|
|
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dissynergies-spinoff
of Supply segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense(benefit):
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect operation
and maintenance
|
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
0.05
|
|
|
|
|
|
0.05
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
0.03
|
|
|
|
|
|
0.03
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
0.01
|
Total
dissynergies-spinoff of Supply segment
|
|
|
|
|
|
|
|
|
|
|
0.03
|
|
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
0.09
|
|
|
|
|
|
0.09
|
Earnings from
Ongoing Operations(Adjusted)
|
$
|
0.28
|
|
$
|
0.12
|
|
$
|
0.08
|
|
$
|
(0.04)
|
|
$
|
|
|
$
|
0.44
|
|
$
|
1.01
|
|
$
|
0.37
|
|
$
|
0.29
|
|
$
|
(0.13)
|
|
$
|
|
|
$
|
1.54
|
|
|
(a)
|
Certain amounts have
been reclassified to reflect the Supply segment as a discontinued
operation.
|
(b)
|
Represents 2014 costs
allocated to the Supply segment that remained with PPL after the
spinoff of the Supply segment.
|
(c)
|
The "If-Converted
Method" has been applied to PPL's 2011 Equity Units, resulting in
$9 million of interest charges (after-tax) being added back to
earnings and approximately 14 million shares of PPL Common Stock
being treated as outstanding. Both adjustments are only for
purposes of calculating diluted earnings per share.
|
Reconciliation of
Segment Reported Earnings (Loss) to Earnings from Ongoing
Operations (Adjusted)
|
(After-Tax)
|
(Unaudited)
|
|
|
Year-to-Date December
31, 2014
|
|
(per share - diluted)
(a)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
&
|
|
Disc.
|
|
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
Other (b)
|
|
Ops. (b)
|
|
Total
|
Reported Earnings
(Loss)
|
|
$
|
1.48
|
|
$
|
0.47
|
|
$
|
0.39
|
|
$
|
(0.18)
|
|
$
|
0.45
|
|
$
|
2.61
|
Less: Special
Items (expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.19
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
0.45
|
|
|
0.44
|
|
Change in tax
valuation allowances
|
|
|
|
|
|
|
|
|
|
|
|
(0.07)
|
|
|
|
|
|
(0.07)
|
|
Separation
benefits
|
|
|
|
|
|
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
(0.02)
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in WPD line
loss accrual
|
|
|
(0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.08)
|
|
Separation
benefits
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
(0.01)
|
Total Special
Items
|
|
|
0.11
|
|
|
|
|
|
(0.01)
|
|
|
(0.10)
|
|
|
0.45
|
|
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dissynergies-spinoff
of Supply segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense (benefit):
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect operation
and maintenance
|
|
|
|
|
|
|
|
|
|
|
|
0.07
|
|
|
|
|
|
0.07
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
0.05
|
|
|
|
|
|
0.05
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
0.01
|
Total
dissynergies-spinoff of Supply segment
|
|
|
|
|
|
|
|
|
|
|
|
0.13
|
|
|
|
|
|
0.13
|
Earnings from
Ongoing Operations (Adjusted)
|
|
$
|
1.37
|
|
$
|
0.47
|
|
$
|
0.40
|
|
$
|
(0.21)
|
|
$
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The "If-Converted
Method" has been applied to PPL's 2011 Equity Units, resulting in
$9 million of interest charges (after-tax) being added back to
earnings and approximately 11 million shares of PPL Common Stock
being treated as outstanding. Both adjustments are only for
purposes of calculating diluted earnings per share.
|
(b)
|
Certain amounts have
been reclassified to reflect the Supply segment as a discontinued
operation.
|
(c)
|
Represents 2014 costs
allocated to the Supply segment that remained with PPL after the
spinoff of the Supply segment.
|
Reconciliation of
PPL's Forecast of Reported Earnings (Loss) to Earnings from Ongoing
Operations
|
(After-Tax)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecast (per share -
diluted)
|
|
|
2015
Midpoint
|
|
|
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
High
|
|
Low
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.(a)
|
|
Total
|
|
2015
|
|
2015
|
Reported Earnings
(Loss)
|
$
|
1.49
|
|
$
|
0.49
|
|
$
|
0.37
|
|
$
|
(0.14)
|
|
$
|
(1.36)
|
|
$
|
0.85
|
|
$
|
0.90
|
|
$
|
0.80
|
Less: Special
Items (expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03
|
|
|
0.03
|
|
|
0.03
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1.36)
|
|
|
(1.36)
|
|
|
(1.36)
|
|
|
(1.36)
|
|
Transition and
transaction costs
|
|
|
|
|
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
(0.02)
|
|
|
(0.02)
|
|
|
(0.02)
|
|
Employee transitional
services
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.01)
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement of certain
income tax positions
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03
|
|
|
0.03
|
|
|
0.03
|
|
Certain valuation
allowances
|
|
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.01)
|
|
LKE
acquisition-related adjustment
|
|
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.01)
|
Total Special
Items
|
|
0.06
|
|
|
(0.02)
|
|
|
|
|
|
(0.03)
|
|
|
(1.36)
|
|
|
(1.35)
|
|
|
(1.35)
|
|
|
(1.35)
|
Earnings from
Ongoing Operations
|
$
|
1.43
|
|
$
|
0.51
|
|
$
|
0.37
|
|
$
|
(0.11)
|
|
$
|
|
|
$
|
2.20
|
|
$
|
2.25
|
|
$
|
2.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes an $879
million charge reflecting the difference between PPL's recorded
value for the Supply segment and the estimated fair value
determined in accordance with applicable rules under
GAAP.
|
Contacts:
|
For news media – Ryan
Hill, 610-774-5997
|
|
For financial
analysts – Joseph P. Bergstein, 610-774-5609
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ppl-corporation-reports-third-quarter-earnings-300168655.html
SOURCE PPL Corporation