ALLENTOWN, Pa., Feb. 4, 2016 /PRNewswire/ -- PPL Corporation
(NYSE: PPL) on Thursday (2/4) announced 2015 reported earnings of
$682 million, or $1.01 per share, compared with $1.74 billion, or $2.61 per share, in 2014.
The company's results for 2015 reflect the loss from
discontinued operations of $921
million, or $1.36 per share,
resulting primarily from the June 1
spinoff of its competitive supply business.
Adjusting for special items, including results from the
discontinued operations of the former Supply segment, earnings from
ongoing operations were $1.49
billion, or $2.21 per share,
compared with earnings from ongoing operations (adjusted) of
$1.35 billion, or $2.03 per share in 2014, an increase of 9 percent
on a per-share basis.
The company's results exceeded the midpoint of its 2015 earnings
from ongoing operations forecast range of $2.15 to $2.25, marking the sixth consecutive
year PPL has exceeded the midpoint of its earnings forecast.
"2015 marked a pivotal year for PPL, one in which we again
delivered strong results for our shareowners while laying a firm
foundation for PPL's continued growth and success," said
William H. Spence, PPL's chairman,
president and Chief Executive Officer.
"We completed the successful spinoff of our Supply segment,
capping our strategic transformation into a high-performing, purely
regulated utility business," Spence said. "We completed
$3.5 billion in infrastructure
improvements for our customers, secured approvals for recovery of
additional utility investments in Pennsylvania and Kentucky rate cases, successfully transitioned
to a new eight-year price-control period in the United Kingdom and reduced corporate support
costs.
"Looking forward, we are well-positioned to continue to deliver
competitive earnings growth and dividend yields, all supported by a
low-risk business plan," Spence said.
The company announced its 2016 earnings forecast range of
$2.25 to $2.45 per share. In
addition, Spence said PPL expects compound annual growth through
2018 of 5 to 6 percent above 2014 earnings of $2.03 per share from ongoing operations
(adjusted).
Earnings from PPL's operations in the
United States, including its corporate services
organization, are expected to grow 11 to 13 percent through 2018,
with 1 to 3 percent earnings growth expected in the United Kingdom.
Backed by the continued strong performance and expected growth
of its utilities, PPL announced that it is increasing its common
stock dividend to $0.38 per share on
a quarterly basis. The increased dividend will be payable
April 1 to shareowners of record as
of March 10. The increase, PPL's
14th in 15 years, raises the annualized dividend from
$1.51 per share to $1.52 per share.
In closing out 2015, PPL reported fourth-quarter earnings of
$399 million, or $0.59 per share, compared with reported earnings
of $695 million, or $1.04 per share, in 2014. Adjusting for special
items, fourth-quarter earnings from ongoing operations were
$294 million, or $0.43 per share, compared with $330 million, or $0.49 per share, in 2014.
2015 Earnings Details
PPL's reported earnings for 2015 included net special-item
after-tax charges of $807 million, or
$1.20 per share.
Special items for 2015 included a loss from discontinued
operations of $921 million, or
$1.36 per share, resulting primarily
from the June 1 spinoff of its
competitive supply business, partially offset by a reduction in the
U.K. corporate income tax rate and unrealized gains on foreign
currency-related economic hedges.
PPL's reported earnings for the fourth quarter of 2015 included
net special-item after-tax credits of $105
million, or $0.16 per
share.
Special items for the fourth quarter of 2015 included reductions
to net deferred income tax liabilities resulting from a reduction
in the U.K. corporate income tax rate and unrealized gains on
foreign currency-related economic hedges.
Reported earnings are calculated in accordance with U.S. GAAP
(generally accepted accounting principles). "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 this news release.
(Dollars in
millions, except for per share amounts)
|
|
Year
|
|
Fourth
Quarter
|
|
|
2015
|
|
2014
|
|
%
Change
|
|
2015
|
|
2014
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
earnings
|
|
$
|
682
|
|
$
|
1,737
|
|
(61%)
|
|
$
|
399
|
|
$
|
695
|
|
(43%)
|
Reported earnings per
share
|
|
$
|
1.01
|
|
$
|
2.61
|
|
(61%)
|
|
$
|
0.59
|
|
$
|
1.04
|
|
(43%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
|
|
Fourth
Quarter
|
|
|
2015
|
|
2014
(adjusted)
|
|
%
Change
|
|
2015
|
|
2014
(adjusted)
|
|
%
Change
|
Earnings from ongoing
operations
|
|
$
|
1,489
|
|
$
|
1,349
|
|
10%
|
|
$
|
294
|
|
$
|
330
|
|
(11%)
|
Earnings from ongoing
operations
per share
|
|
$
|
2.21
|
|
$
|
2.03
|
|
9%
|
|
$
|
0.43
|
|
$
|
0.49
|
|
(12%)
|
(See the tables at the end of this news release for a
reconciliation of reported earnings (loss) to earnings from ongoing
operations.)
2015 and
Fourth-Quarter Earnings by Segment
|
|
|
|
Year
|
|
Fourth
Quarter
|
Per
share
|
|
2015
|
|
2014
(adjusted)
|
|
2015
|
|
2014
(adjusted)
|
Earnings from
ongoing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
Regulated
|
|
$
|
1.44
|
|
|
$
|
1.37
|
|
|
$
|
0.29
|
|
|
$
|
0.36
|
|
Kentucky
Regulated
|
|
|
0.51
|
|
|
|
0.47
|
|
|
|
0.09
|
|
|
|
0.10
|
|
Pennsylvania
Regulated
|
|
|
0.37
|
|
|
|
0.40
|
|
|
|
0.09
|
|
|
|
0.10
|
|
Corporate and
Other1
|
|
|
(0.11)
|
|
|
|
(0.21)
|
|
|
|
(0.04)
|
|
|
|
(0.07)
|
|
Total
|
|
$
|
2.21
|
|
|
$
|
2.03
|
|
|
$
|
0.43
|
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
|
|
Fourth
Quarter
|
Special items and
dissynergy
adjustments
|
|
|
2015
|
|
|
|
2014
(adjusted)
|
|
|
|
2015
|
|
|
|
2014
(adjusted)
|
|
Special items
(expense) benefit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.K.
Regulated
|
|
$
|
0.22
|
|
|
$
|
0.11
|
|
|
$
|
0.16
|
|
|
$
|
0.08
|
|
Kentucky
Regulated
|
|
|
(0.03)
|
|
|
|
–
|
|
|
|
–
|
|
|
|
–
|
|
Pennsylvania Regulated
|
|
|
–
|
|
|
|
(0.01)
|
|
|
|
–
|
|
|
|
–
|
|
Corporate and Other1
|
|
|
(0.03)
|
|
|
|
(0.10)
|
|
|
|
0.01
|
|
|
|
–
|
|
Supply/Discontinued Operations
|
|
|
(1.36)
|
|
|
|
0.45
|
|
|
|
(0.01)
|
|
|
|
0.43
|
|
Total special
items
|
|
|
(1.20)
|
|
|
|
0.45
|
|
|
|
0.16
|
|
|
|
0.51
|
|
Dissynergy
adjustments expense
(benefit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other1
|
|
|
–
|
|
|
|
0.13
|
|
|
|
–
|
|
|
|
0.04
|
|
Total special items
and dissynergy
adjustments
|
|
$
|
(1.20)
|
|
|
$
|
0.58
|
|
|
$
|
0.16
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
|
|
Fourth
Quarter
|
Reported earnings
(loss)
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
U.K.
Regulated
|
|
$
|
1.66
|
|
|
$
|
1.48
|
|
|
$
|
0.45
|
|
|
|
0.44
|
|
Kentucky
Regulated
|
|
|
0.48
|
|
|
|
0.47
|
|
|
|
0.09
|
|
|
|
0.10
|
|
Pennsylvania
Regulated
|
|
|
0.37
|
|
|
|
0.39
|
|
|
|
0.09
|
|
|
|
0.10
|
|
Corporate and
Other1
|
|
|
(0.14)
|
|
|
|
(0.18)
|
|
|
|
(0.03)
|
|
|
|
(0.03)
|
|
Supply/Discontinued
Operations2
|
|
|
(1.36)
|
|
|
|
0.45
|
|
|
|
(0.01)
|
|
|
|
0.43
|
|
Total
|
|
$
|
1.01
|
|
|
$
|
2.61
|
|
|
$
|
0.59
|
|
|
|
1.04
|
|
|
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 4th quarter and $0.07 YTD), Interest
($0.02 in the 4th quarter and $0.05 YTD), and
Depreciation ($0.01 YTD).
|
|
22015 reported earnings include
discontinued operations of the former Supply
segment.
|
(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 2015 increased by
$0.07 per share compared with a year
ago. This increase was primarily due to lower income taxes, lower
depreciation expense and higher margins driven by an
April 1, 2014 price increase,
partially offset by lower prices driven by an April 1, 2015 price decrease due to the beginning
of the new eight-year price control period (RIIO-ED1).
Earnings from ongoing operations in the fourth quarter of 2015
decreased by $0.07 per share compared
with a year ago. This decrease was primarily due to lower margins
primarily driven by an April 1, 2015
price decrease due to the commencement of RIIO-ED1 and higher
operation and maintenance expense, partially offset by lower U.K.
income taxes due to a change in tax rates and lower depreciation
expense.
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 2015 increased by
$0.04 per share compared with a year
ago. This was primarily due to higher base electricity rates
effective July 1, 2015, and higher
returns on additional environmental capital investments, partially
offset by lower sales volumes due to unfavorable weather in the
fourth quarter, and higher operation and maintenance expense,
including costs associated with the retirement of coal-fired
generation at the Cane Run facility, and higher financing costs
related to the 2015 debt issuances.
Earnings from ongoing operations in the fourth quarter of 2015
decreased by $0.01 per share compared
with a year ago. This was primarily due to lower sales volumes due
to unfavorable weather and higher financing costs, partially offset
by higher base electricity rates effective July 1, 2015, and higher returns on additional
environmental capital investments.
Pennsylvania Regulated Segment
PPL's
Pennsylvania Regulated segment consists of the regulated
electricity delivery operations of PPL Electric Utilities.
Earnings from ongoing operations in 2015 decreased by
$0.03 per share compared with a year
ago, driven primarily by higher operation and maintenance expense
and higher depreciation expense, partially offset by higher
transmission and distribution margins and the release of a gross
receipts tax reserve.
Earnings from ongoing operations in the fourth quarter of 2015
decreased by $0.01 per share compared
with a year ago. This was primarily due to higher operation
and maintenance expense, higher depreciation expense and lower
sales volumes due to unfavorable weather, partially offset by
higher transmission margins and the release of a gross receipts tax
reserve.
Corporate and Other
PPL's Corporate and Other
category primarily includes unallocated corporate-level financing
and other costs. Corporate and Other in 2015 improved by
$0.10 per share compared with a year
ago (adjusted) and $0.03 per share in
the fourth quarter compared with the previous year. This was
primarily due to the benefits of the corporate restructuring.
Forecast of
Earnings from Ongoing Operations
|
|
|
|
|
2016
forecast
midpoint
|
|
2015
actual
|
Per
share
|
|
|
|
U.K.
Regulated
|
$ 1.43
|
|
$ 1.44
|
Kentucky
Regulated
|
0.57
|
|
0.51
|
Pennsylvania
Regulated
|
0.47
|
|
0.37
|
Corporate and
Other
|
(0.12)
|
|
(0.11)
|
Total
|
$ 2.35
|
|
$ 2.21
|
(See the tables at the end of this news release for a
reconciliation of reported earnings to 2015 earnings from ongoing
operations.)
The midpoint of PPL's 2016 earnings forecast of $2.35 per share represents an increase of more
than 6 percent compared to 2015 earnings from ongoing operations.
This increase is primarily attributable to increases in the
Pennsylvania Regulated and Kentucky Regulated segments.
U.K. Regulated
Segment
PPL projects relatively flat segment earnings in 2016 compared with
2015, due to higher financing costs, depreciation expense,
currency, taxes and other expenses, partially offset by lower
operation and maintenance expense, including pension expense, and
higher gross margins.
The 2016 foreign currency exposure for this segment is 95
percent hedged at an average rate of $1.56 per pound.
Kentucky Regulated Segment
PPL projects
higher segment earnings in 2016 compared with 2015, primarily
driven by electric and gas base rate increases effective
July 1, 2015, and higher returns on
additional environmental capital investments, partially offset by
higher depreciation expense and higher financing costs.
Pennsylvania Regulated Segment
PPL projects higher
segment earnings in 2016 compared with 2015, primarily driven by a
distribution base rate increase effective Jan. 1, 2016, and higher transmission margins,
partially offset by higher depreciation, higher financing costs and
a benefit received in 2015 from the release of a gross receipts tax
reserve.
Corporate and Other
PPL projects costs to be
relatively flat in this category in 2016 compared with 2015.
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 2015 financial results at 8:30 a.m.
Eastern Standard Time on Thursday,
Feb. 4. 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: 0130109.
"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.
- 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; 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 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2015
|
|
2014
(b)
|
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
836
|
|
$
|
1,399
|
Short-term
investments
|
|
|
|
|
|
120
|
Accounts
receivable
|
|
|
732
|
|
|
808
|
Unbilled
revenues
|
|
|
453
|
|
|
517
|
Fuel, materials and
supplies
|
|
|
357
|
|
|
381
|
Price risk management
assets - current
|
|
|
139
|
|
|
79
|
Current assets of
discontinued operations
|
|
|
|
|
|
2,592
|
Other current
assets
|
|
|
129
|
|
|
130
|
Property, Plant and
Equipment
|
|
|
|
|
|
|
|
Regulated utility
plant
|
|
|
34,399
|
|
|
30,568
|
|
Less: accumulated
depreciation - regulated utility plant
|
|
|
5,683
|
|
|
5,361
|
|
|
Regulated utility
plant, net
|
|
|
28,716
|
|
|
25,207
|
|
Non-regulated
property, plant and equipment
|
|
|
516
|
|
|
592
|
|
Less: accumulated
depreciation - non-regulated property, plant and
equipment
|
|
|
165
|
|
|
162
|
|
|
Non-regulated
property, plant and equipment, net
|
|
|
351
|
|
|
430
|
|
Construction work in
progress
|
|
|
1,315
|
|
|
2,532
|
|
Property, Plant and
Equipment, net
|
|
|
30,382
|
|
|
28,169
|
Noncurrent regulatory
assets
|
|
|
1,733
|
|
|
1,562
|
Goodwill and other
intangibles
|
|
|
4,229
|
|
|
4,335
|
Noncurrent assets of
discontinued operations
|
|
|
|
|
|
8,311
|
Other noncurrent
assets
|
|
|
311
|
|
|
203
|
Total
Assets
|
|
$
|
39,301
|
|
$
|
48,606
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Short-term
debt
|
|
$
|
916
|
|
$
|
836
|
Long-term debt due
within one year
|
|
|
485
|
|
|
1,000
|
Accounts
payable
|
|
|
812
|
|
|
995
|
Current liabilities
of discontinued operations
|
|
|
|
|
|
2,771
|
Other current
liabilities
|
|
|
1,663
|
|
|
1,837
|
Long-term
debt
|
|
|
18,563
|
|
|
17,054
|
Deferred income taxes
and investment tax credits
|
|
|
3,568
|
|
|
3,234
|
Accrued pension
obligations
|
|
|
1,405
|
|
|
1,457
|
Assets retirement
obligations
|
|
|
536
|
|
|
324
|
Noncurrent regulatory
liabilities
|
|
|
945
|
|
|
992
|
Noncurrent
liabilities of discontinued operations
|
|
|
|
|
|
3,953
|
Other noncurrent
liabilities
|
|
|
489
|
|
|
525
|
Common stock and
additional paid-in capital
|
|
|
9,694
|
|
|
9,440
|
Earnings reinvested
(c)
|
|
|
2,953
|
|
|
6,462
|
Accumulated other
comprehensive loss
|
|
|
(2,728)
|
|
|
(2,274)
|
Total Liabilities
and Equity
|
|
$
|
39,301
|
|
$
|
48,606
|
|
(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 and the adoption of new accounting guidance in
2015.
|
(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
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
(a)
|
|
|
2015
(a)
|
|
|
2014
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Revenues
|
|
$
|
1,780
|
|
$
|
1,946
|
|
$
|
7,669
|
|
$
|
7,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Operation
|
|
|
|
|
|
|
|
|
|
|
|
|
Fuel
|
|
|
168
|
|
|
217
|
|
|
863
|
|
|
965
|
Energy purchases
|
|
|
179
|
|
|
241
|
|
|
855
|
|
|
924
|
Other operation and
maintenance
|
|
|
533
|
|
|
474
|
|
|
1,938
|
|
|
1,856
|
Depreciation
|
|
|
225
|
|
|
235
|
|
|
883
|
|
|
923
|
Taxes, other than
income
|
|
|
58
|
|
|
79
|
|
|
299
|
|
|
317
|
Total Operating
Expenses
|
|
|
1,163
|
|
|
1,246
|
|
|
4,838
|
|
|
4,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
617
|
|
|
700
|
|
|
2,831
|
|
|
2,867
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) - net
|
|
|
47
|
|
|
72
|
|
|
108
|
|
|
105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
|
|
226
|
|
|
206
|
|
|
871
|
|
|
843
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Continuing Operations Before Income Taxes
|
|
|
438
|
|
|
566
|
|
|
2,068
|
|
|
2,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
Taxes
|
|
|
33
|
|
|
158
|
|
|
465
|
|
|
692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
Continuing Operations After Income Taxes
|
|
|
405
|
|
|
408
|
|
|
1,603
|
|
|
1,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Discontinued Operations (net of income taxes)
|
|
|
(6)
|
|
|
287
|
|
|
(921)
|
|
|
300
|
Net
Income
|
|
$
|
399
|
|
$
|
695
|
|
$
|
682
|
|
$
|
1,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
of Common Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing
Operations After Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
Available to PPL
Common Shareowners:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.60
|
|
$
|
0.62
|
|
$
|
2.38
|
|
$
|
2.19
|
Diluted
|
|
$
|
0.60
|
|
$
|
0.62
|
|
$
|
2.37
|
|
$
|
2.16
|
Net Income Available
to PPL Common Shareowners:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.59
|
|
$
|
1.04
|
|
$
|
1.01
|
|
$
|
2.64
|
Diluted
|
|
$
|
0.59
|
|
$
|
1.04
|
|
$
|
1.01
|
|
$
|
2.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares of Common Stock Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
673,028
|
|
|
665,205
|
|
|
669,814
|
|
|
653,504
|
Diluted
|
|
|
676,548
|
|
|
667,263
|
|
|
672,586
|
|
|
665,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2013
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
682
|
|
$
|
1,737
|
|
$
|
1,130
|
|
Loss (income) from
discontinued operations (net of income taxes)
|
|
|
921
|
|
|
(300)
|
|
|
238
|
|
Income from
continuing operations (net of income taxes)
|
|
|
1,603
|
|
|
1,437
|
|
|
1,368
|
|
Adjustments to
reconcile Income from continuing operations (net of taxes) to net
cash
|
|
|
|
|
|
|
|
|
|
|
provided by operating
activities - continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
883
|
|
|
923
|
|
|
843
|
|
|
Amortization
|
|
|
59
|
|
|
65
|
|
|
66
|
|
|
Defined benefit plans
- expense
|
|
|
56
|
|
|
48
|
|
|
125
|
|
|
Deferred income taxes
and investment tax credits
|
|
|
428
|
|
|
666
|
|
|
387
|
|
|
Unrealized (gains)
losses on derivatives, and other hedging activities
|
|
|
(77)
|
|
|
(187)
|
|
|
56
|
|
|
Adjustment to WPD
line loss accrual
|
|
|
|
|
|
65
|
|
|
45
|
|
|
Other
|
|
|
17
|
|
|
66
|
|
|
|
|
Change in current
assets and current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
47
|
|
|
(123)
|
|
|
(211)
|
|
|
Accounts
payable
|
|
|
(154)
|
|
|
40
|
|
|
127
|
|
|
Unbilled
revenues
|
|
|
54
|
|
|
22
|
|
|
(56)
|
|
|
Prepayments
|
|
|
(23)
|
|
|
87
|
|
|
39
|
|
|
Taxes
payable
|
|
|
(175)
|
|
|
161
|
|
|
51
|
|
|
Uncertain tax
positions
|
|
|
(17)
|
|
|
|
|
|
(112)
|
|
|
Other
|
|
|
99
|
|
|
23
|
|
|
(66)
|
|
Other operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
Defined benefit plans
- funding
|
|
|
(499)
|
|
|
(384)
|
|
|
(450)
|
|
|
Settlement of
interest rate swaps
|
|
|
(101)
|
|
|
|
|
|
104
|
|
|
Other
assets
|
|
|
(19)
|
|
|
9
|
|
|
11
|
|
|
Other
liabilities
|
|
|
53
|
|
|
23
|
|
|
120
|
|
|
|
Net cash provided by
operating activities - continuing operations
|
|
|
2,234
|
|
|
2,941
|
|
|
2,447
|
|
Net cash provided by
operating activities - discontinued operations
|
|
|
343
|
|
|
462
|
|
|
409
|
|
|
|
Net cash provided by
operating activities
|
|
2,577
|
|
|
3,403
|
|
|
2,856
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
Expenditures for
property, plant and equipment
|
|
|
(3,495)
|
|
|
(3,674)
|
|
|
(3,629)
|
|
Expenditures for
intangible assets
|
|
|
(37)
|
|
|
(49)
|
|
|
(53)
|
|
Purchases of other
investments
|
|
|
|
|
|
(120)
|
|
|
|
|
Proceeds from the
sale of other investments
|
|
|
136
|
|
|
|
|
|
|
|
Net decrease in
restricted cash and cash equivalents
|
|
|
8
|
|
|
19
|
|
|
2
|
|
Other investing
activities
|
|
|
(13)
|
|
|
(2)
|
|
|
16
|
|
|
|
Net cash used in
investing activities - continuing operations
|
|
|
(3,401)
|
|
|
(3,826)
|
|
|
(3,664)
|
|
Net cash provided by
(used in) investing activities - discontinued operations
|
|
|
(149)
|
|
|
497
|
|
|
(631)
|
|
|
|
Net cash used in
investing activities
|
|
|
(3,550)
|
|
|
(3,329)
|
|
|
(4,295)
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
Issuance of long-term
debt
|
|
|
2,236
|
|
|
296
|
|
|
2,038
|
|
Retirement of
long-term debt
|
|
|
(1,000)
|
|
|
(237)
|
|
|
|
|
Repurchase of common
stock
|
|
|
|
|
|
|
|
|
(74)
|
|
Issuance of common
stock
|
|
|
203
|
|
|
1,074
|
|
|
1,411
|
|
Payment of common
stock dividends
|
|
|
(1,004)
|
|
|
(967)
|
|
|
(878)
|
|
Contract adjustment
payments on Equity Units
|
|
|
|
|
|
(22)
|
|
|
(82)
|
|
Net increase in
short-term debt
|
|
|
94
|
|
|
147
|
|
|
405
|
|
Other financing
activities
|
|
|
(47)
|
|
|
(29)
|
|
|
(67)
|
|
|
|
Net cash provided by
financing activities - continuing operations
|
|
|
482
|
|
|
262
|
|
|
2,753
|
|
Net cash provided by
(used in) financing activities - discontinued operations
|
|
|
(546)
|
|
|
(846)
|
|
|
47
|
|
Net cash
distributions to parent from discontinued operations
|
|
|
132
|
|
|
1,167
|
|
|
(1,169)
|
|
|
|
Net cash provided by
financing activities
|
|
|
68
|
|
|
583
|
|
|
1,631
|
Effect of Exchange
Rates on Cash and Cash Equivalents
|
|
|
(10)
|
|
|
(8)
|
|
|
8
|
Net (Increase)
Decrease in Cash and Cash Equivalents included in Discontinued
Operations
|
|
|
352
|
|
|
(113)
|
|
|
175
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
|
|
(563)
|
|
|
536
|
|
|
375
|
Cash and Cash
Equivalents at Beginning of Period
|
|
|
1,399
|
|
|
863
|
|
|
488
|
Cash and Cash
Equivalents at End of Period
|
|
$
|
836
|
|
$
|
1,399
|
|
$
|
863
|
|
|
Key Indicators
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
Financial
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share of common stock
|
|
|
|
|
|
$1.50
|
|
$1.49
|
Book value per share
(a)(b)(c)
|
|
|
|
|
|
$14.72
|
|
$20.47
|
Market price per
share (a)
|
|
|
|
|
|
$34.13
|
|
$36.33
|
Dividend
yield
|
|
|
|
|
|
4.4%
|
|
4.1%
|
Dividend payout ratio
(d)(e)
|
|
|
|
|
|
148.5%
|
|
57.1%
|
Dividend payout ratio
- earnings from ongoing operations (d)(f)
|
|
|
|
|
|
67.9%
|
|
73.4%
|
Price/earnings ratio
(d)(e)
|
|
|
|
|
|
33.8
|
|
13.9
|
Price/earnings ratio
- earnings from ongoing operations (d)(f)
|
|
|
|
|
|
15.4
|
|
17.9
|
Return on common
equity (e)
|
|
|
|
|
|
5.8%
|
|
13.0%
|
Return on common
equity - earnings from ongoing operations (f)(g)
|
|
|
|
|
|
15.2%
|
|
15.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) End of
period.
|
(b) Based on
673,857 and 665,849 shares of common stock outstanding (in
thousands) at December 31, 2015, and December 31, 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 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
five months of Supply segment earnings, compared to twelve months
for 2014.
|
(f) Calculated
using earnings from ongoing operations, which is a non-GAAP
financial measure that includes adjustments described
|
in the text and tables
of this news release. 2014 was adjusted for Supply segment earnings
and the impact of dissynergies related
|
to the spinoff of the
Supply segment.
|
(g) Adjusted to
exclude the equity of PPL Energy Supply, LLC as that business was
spun off in 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating -
Domestic & International Electricity Sales
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
December 31,
|
|
12 Months Ended
December 31,
|
|
|
|
|
|
|
|
|
Percent
|
|
|
|
|
|
Percent
|
(GWh)
|
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Retail
Delivered
|
|
|
|
|
|
|
|
|
|
|
|
|
PPL
Electric Utilities
|
|
8,433
|
|
9,073
|
|
(7.1%)
|
|
36,984
|
|
37,026
|
|
(0.1%)
|
LKE
|
|
6,830
|
|
7,510
|
|
(9.1%)
|
|
30,814
|
|
31,543
|
|
(2.3%)
|
Total
|
|
15,263
|
|
16,583
|
|
(8.0%)
|
|
67,798
|
|
68,569
|
|
(1.1%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Retail
Supplied
|
|
|
|
|
|
|
|
|
|
|
|
|
LKE
(a)
|
|
6,830
|
|
7,510
|
|
(9.1%)
|
|
30,814
|
|
31,543
|
|
(2.3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Delivered
|
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom
|
|
18,785
|
|
18,859
|
|
(0.4%)
|
|
75,907
|
|
75,813
|
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Wholesale
|
|
|
|
|
|
|
|
|
|
|
|
|
LKE
(b)
|
|
452
|
|
514
|
|
(12.1%)
|
|
2,241
|
|
2,365
|
|
(5.2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
4th Quarter
2015
|
|
Year-to-Date December
31, 2015
|
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.
|
|
Total
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.(a)
|
|
Total
|
Reported Earnings
(Loss)
|
$
|
307
|
|
$
|
59
|
|
$
|
61
|
|
$
|
(23)
|
|
$
|
(5)
|
|
$
|
399
|
|
$
|
1,121
|
|
$
|
326
|
|
$
|
252
|
|
$
|
(96)
|
|
$
|
(921)
|
|
$
|
682
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35
|
|
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(921)
|
|
|
(921)
|
Transition and transaction costs
|
|
|
|
|
|
|
|
|
|
|
4
|
|
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
(12)
|
|
|
|
|
|
(12)
|
Employee
transitional services
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
|
|
|
|
|
(5)
|
Separation benefits
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
|
|
|
|
|
(5)
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in U.K. tax rate
|
|
78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
78
|
|
|
78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
78
|
Settlement of certain income tax positions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
WPD
Midlands acquisition-related adj.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Certain
valuation allowances
|
|
|
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
|
|
|
|
|
(12)
|
|
|
|
|
|
|
|
|
|
|
|
(12)
|
LKE
acquisition-related adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Total Special
Items
|
|
113
|
|
|
(4)
|
|
|
|
|
|
1
|
|
|
(5)
|
|
|
105
|
|
|
153
|
|
|
(17)
|
|
|
|
|
|
(22)
|
|
|
(921)
|
|
|
(807)
|
Earnings from
Ongoing Operations
|
$
|
194
|
|
$
|
63
|
|
$
|
61
|
|
$
|
(24)
|
|
$
|
|
|
$
|
294
|
|
$
|
968
|
|
$
|
343
|
|
$
|
252
|
|
$
|
(74)
|
|
$
|
|
|
$
|
1,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
4th Quarter
2015
|
|
Year-to-Date December
31, 2015
|
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.
|
|
Total
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.(a)
|
|
Total
|
Reported Earnings
(Loss)
|
$
|
0.45
|
|
$
|
0.09
|
|
$
|
0.09
|
|
$
|
(0.03)
|
|
$
|
(0.01)
|
|
$
|
0.59
|
|
$
|
1.66
|
|
$
|
0.48
|
|
$
|
0.37
|
|
$
|
(0.14)
|
|
$
|
(1.36)
|
|
$
|
1.01
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.05
|
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.08
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1.36)
|
|
|
(1.36)
|
Transition and transaction costs
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
(0.02)
|
Employee
transitional services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
(0.01)
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
in U.K. tax rate
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.11
|
|
|
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.11
|
Settlement of certain income tax positions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03
|
Certain
valuation allowances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
(0.02)
|
LKE
acquisition-related adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
Total Special
Items
|
|
0.16
|
|
|
|
|
|
|
|
|
0.01
|
|
|
(0.01)
|
|
|
0.16
|
|
|
0.22
|
|
|
(0.03)
|
|
|
|
|
|
(0.03)
|
|
|
(1.36)
|
|
|
(1.20)
|
Earnings from
Ongoing Operations
|
$
|
0.29
|
|
$
|
0.09
|
|
$
|
0.09
|
|
$
|
(0.04)
|
|
$
|
|
|
$
|
0.43
|
|
$
|
1.44
|
|
$
|
0.51
|
|
$
|
0.37
|
|
$
|
(0.11)
|
|
$
|
|
|
$
|
2.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(After-Tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of
dollars)
|
4th Quarter
2014
|
|
Year-to-Date December
31, 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)
|
$
|
294
|
|
$
|
65
|
|
$
|
69
|
|
$
|
(20)
|
|
$
|
287
|
|
$
|
695
|
|
$
|
982
|
|
$
|
312
|
|
$
|
263
|
|
$
|
(120)
|
|
$
|
300
|
|
$
|
1,737
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55
|
|
|
127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
127
|
|
Spinoff of the Supply
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply segment
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
291
|
|
|
291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
307
|
|
|
307
|
|
|
Discontinued
operations adjustments
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
|
|
5
|
|
|
|
|
|
Change in tax
valuation allowances
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
(46)
|
|
|
|
|
|
(46)
|
|
|
Transition and
transaction costs
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
(2)
|
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
|
|
(12)
|
|
|
(17)
|
|
|
Separation
benefits
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
(12)
|
|
|
|
|
|
(12)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in WPD line
loss accrual
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(52)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(52)
|
|
|
Separation
benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
|
|
|
|
|
|
(2)
|
|
Total Special
Items
|
|
55
|
|
|
|
|
|
|
|
|
2
|
|
|
287
|
|
|
344
|
|
|
75
|
|
|
|
|
|
(2)
|
|
|
(68)
|
|
|
300
|
|
|
305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dissynergies-spinoff
of Supply segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense(benefit):
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect operation
and maintenance
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
47
|
|
|
|
|
|
47
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
29
|
|
|
|
|
|
29
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
2
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
7
|
|
|
|
|
|
7
|
|
Total
dissynergies-spinoff of Supply segment
|
|
|
|
|
|
|
|
|
|
|
21
|
|
|
|
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
83
|
|
|
|
|
|
83
|
|
Earnings from
Ongoing Operations(Adj.)
|
$
|
239
|
|
$
|
65
|
|
$
|
69
|
|
$
|
(43)
|
|
$
|
|
|
$
|
330
|
|
$
|
907
|
|
$
|
312
|
|
$
|
265
|
|
$
|
(135)
|
|
$
|
|
|
$
|
1,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
4th Quarter
2014
|
|
Year-to-Date December
31, 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
|
|
$
|
0.10
|
|
$
|
0.10
|
|
$
|
(0.03)
|
|
$
|
0.43
|
|
$
|
1.04
|
|
$
|
1.48
|
|
$
|
0.47
|
|
$
|
0.39
|
|
$
|
(0.18)
|
|
$
|
0.45
|
|
$
|
2.61
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.08
|
|
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.19
|
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supply segment
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.43
|
|
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.46
|
|
|
0.46
|
|
|
Discontinued
operations adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
0.01
|
|
|
|
|
|
Change in tax
valuation allowances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.07)
|
|
|
|
|
|
(0.07)
|
|
|
Transition and
transaction costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02)
|
|
|
(0.02)
|
|
|
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
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
0.43
|
|
|
0.51
|
|
|
0.11
|
|
|
|
|
|
(0.01)
|
|
|
(0.10)
|
|
|
0.45
|
|
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dissynergies-spinoff
of Supply segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expense(benefit):
(b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Indirect operation
and maintenance
|
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
0.07
|
|
|
|
|
|
0.07
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
0.02
|
|
|
|
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
0.05
|
|
|
|
|
|
0.05
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01
|
|
|
|
|
|
0.01
|
|
Total
dissynergies-spinoff of Supply segment
|
|
|
|
|
|
|
|
|
|
|
0.04
|
|
|
|
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
0.13
|
|
|
|
|
|
0.13
|
|
Earnings from
Ongoing Operations (Adj.)
|
$
|
0.36
|
|
$
|
0.10
|
|
$
|
0.10
|
|
$
|
(0.07)
|
|
$
|
|
|
$
|
0.49
|
|
$
|
1.37
|
|
$
|
0.47
|
|
$
|
0.40
|
|
$
|
(0.21)
|
|
$
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 11 million shares of PPL Common Stock being treated
as outstanding. Both adjustments are only for purposes
of
|
|
|
calculating diluted
earnings per share.
|
|
Contacts:
|
For news media – Ryan
Hill, 610-774-5997
|
|
For financial
analysts – Joseph P. Bergstein Jr., 610-774-5609
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ppl-corporation-reports-2015-earnings-300215214.html
SOURCE PPL Corporation