ALLENTOWN, Pa., Feb. 1, 2017 /PRNewswire/ -- PPL Corporation
(NYSE: PPL) on Wednesday (2/1) announced 2016 reported earnings
(GAAP) of $1.9 billion, or
$2.79 per share, compared with
$682 million, or $1.01 per share, in 2015.
The company's results for 2015 reflect the $921 million loss from discontinued operations,
or $1.36 per share, resulting
primarily from the June 1 spinoff of
its competitive supply business.
Adjusting for special items, earnings from ongoing operations
were $1.67 billion, or $2.45 per share, compared with earnings from
ongoing operations of $1.49 billion,
or $2.21 per share in 2015, an
increase of 11 percent on a per-share basis.
The company's results exceeded the high end of its 2016 reported
earnings forecast range of $2.55 to
$2.70 per share, driven by strong performance across its
regulated businesses and gains on foreign currency-related economic
hedges.
In addition, PPL's results were at the high end of its earnings
from ongoing operations forecast range of $2.30 to $2.45 per share. This marks the seventh
consecutive year PPL has exceeded the midpoint of its ongoing
earnings forecast. Reflected in both reported earnings and ongoing
earnings is a positive tax adjustment of $0.05 per share related to a benefit recorded for
the carryforward of foreign tax credits.
"The past year demonstrated the strength of our diverse
portfolio of regulated utilities as our U.S. and U.K. companies all
delivered or exceeded expected results," said William H. Spence, PPL's chairman, president and
Chief Executive Officer.
"In 2016, we executed more than $3
billion in infrastructure improvements to advance a smarter,
cleaner, more reliable energy infrastructure for our customers. At
the same time, we delivered award-winning customer service at each
of our U.S. utilities and continued to excel with industry-leading
performance in the United
Kingdom.
"As we look ahead, we're intent on making PPL even stronger for
our customers and shareowners. That includes investing an
additional $16 billion in
infrastructure improvements over the next five years to secure a
brighter energy future for generations to come and delivering
competitive earnings growth and dividend yields for
shareowners."
The company reaffirmed its 2017 earnings forecast of
$2.05 to $2.25 per share, which
reflects additional hedging to mitigate foreign currency exposure
through 2020. "Based on actions taken to date," Spence said, "we
are confident in our ability to deliver our projected 5 to 6
percent compound annual earnings growth range from 2017 to 2020
even if the exchange rate declines well below current levels. Our
currency hedging strategies have continued to strengthen our
ability to deliver this growth as we are now significantly hedged
into 2019 with room to do more."
In addition, Spence said PPL remains confident in its ability to
deliver targeted annual dividend growth of about 4 percent through
the end of the decade.
In keeping with that commitment, PPL announced that it is
increasing its common stock dividend from $0.38 per share to $0.395 per share on a quarterly basis. The
increased dividend will be payable April 3 to shareowners of
record as of March 10. The increase,
PPL's 15th in 16 years, raises the annualized dividend 4 percent
from $1.52 per share to $1.58 per share.
PPL reported fourth-quarter earnings of $465 million, or $0.68 per share, compared with reported earnings
of $399 million, or $0.59 per share, in 2015. Adjusting for special
items, fourth-quarter earnings from ongoing operations were
$409 million, or $0.60 per share, compared with $294 million, or $0.43 per share, in 2015.
Fourth-Quarter and Year-to-Date Earnings
Details
PPL's reported earnings for 2016 included net special-item
after-tax benefits of $228 million,
or $0.34 per share, due to foreign
currency-related economic hedges and a reduction in the U.K.
corporate income tax rate. Reported earnings for 2015 included net
special-item after-tax charges of $807
million, or $1.20 per share,
primarily due to a loss from discontinued operations of
$921 million, or $1.36 per share. The loss resulted primarily from
the June 1 spinoff of PPL's
competitive supply business, partially offset by a reduction in the
U.K. corporate income tax rate and foreign currency-related
economic hedges.
PPL's reported earnings for the fourth quarter of 2016 included
net special-item after-tax benefits of $56
million, or $0.08 per share,
from foreign currency-related economic hedges. Reported earnings
for the fourth quarter of 2015 included net special-item after-tax
benefits of $105 million, or
$0.16 per share, primarily from a
reduction in the U.K. corporate income tax rate and foreign
currency-related economic hedges.
As discussed in this news release, reported earnings are
calculated in accordance with U.S. Generally Accepted Accounting
Principles (GAAP). "Earnings from ongoing operations" is a non-GAAP
financial measure that is adjusted for special items, including for
2015 the former Supply segment's earnings and the loss associated
with the Supply segment spinoff. See the tables at the end of this
news release for a reconciliation of reported earnings to earnings
from ongoing operations, including an itemization of special
items.
(Dollars in
millions, except for per share amounts)
|
4th
Quarter
|
|
Year
|
|
2016
|
|
2015
|
|
%
Change
|
|
2016
|
|
2015
|
|
%
Change
|
Reported
earnings
|
$
|
465
|
|
|
$
|
399
|
|
|
17
|
%
|
|
$
|
1,902
|
|
|
$
|
682
|
|
|
179
|
%
|
Reported earnings per
share
|
$
|
0.68
|
|
|
$
|
0.59
|
|
|
15
|
%
|
|
$
|
2.79
|
|
|
$
|
1.01
|
|
|
176
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4th
Quarter
|
|
Year
|
|
2016
|
|
2015
|
|
%
Change
|
|
2016
|
|
2015
|
|
%
Change
|
Earnings from ongoing
operations
|
$
|
409
|
|
|
$
|
294
|
|
|
39
|
%
|
|
$
|
1,674
|
|
|
$
|
1,489
|
|
|
12
|
%
|
Earnings from ongoing
operations per share
|
$
|
0.60
|
|
|
$
|
0.43
|
|
|
40
|
%
|
|
$
|
2.45
|
|
|
$
|
2.21
|
|
|
11
|
%
|
Fourth-Quarter and Year-to-Date Earnings by
Segment
|
4th
Quarter
|
|
Year
|
Per
share
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Reported
Earnings
|
|
|
|
|
|
|
|
U.K.
Regulated
|
$
|
0.48
|
|
|
$
|
0.45
|
|
|
$
|
1.83
|
|
|
$
|
1.66
|
|
Kentucky
Regulated
|
0.12
|
|
|
0.09
|
|
|
0.58
|
|
|
0.48
|
|
Pennsylvania
Regulated
|
0.11
|
|
|
0.09
|
|
|
0.50
|
|
|
0.37
|
|
Corporate &
Other
|
(0.03)
|
|
|
(0.03)
|
|
|
(0.12)
|
|
|
(0.14)
|
|
Former
Supply/Discontinued Operations
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(1.36)
|
|
Total
|
$
|
0.68
|
|
|
$
|
0.59
|
|
|
$
|
2.79
|
|
|
$
|
1.01
|
|
|
|
4th
Quarter
|
|
Year
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Special items
benefit (expense)
|
|
|
|
|
|
|
|
U.K.
Regulated
|
$
|
0.08
|
|
|
$
|
0.16
|
|
|
$
|
0.34
|
|
|
$
|
0.22
|
|
Kentucky
Regulated
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.03)
|
|
Pennsylvania
Regulated
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Corporate &
Other
|
—
|
|
|
0.01
|
|
|
—
|
|
|
(0.03)
|
|
Former
Supply/Discontinued Operations
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(1.36)
|
|
Total Special
Items
|
$
|
0.08
|
|
|
$
|
0.16
|
|
|
$
|
0.34
|
|
|
$
|
(1.20)
|
|
|
|
4th
Quarter
|
|
Year
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Earnings from
Ongoing Operations
|
|
|
|
|
|
|
|
U.K.
Regulated
|
$
|
0.40
|
|
|
$
|
0.29
|
|
|
$
|
1.49
|
|
|
$
|
1.44
|
|
Kentucky
Regulated
|
0.12
|
|
|
0.09
|
|
|
0.58
|
|
|
0.51
|
|
Pennsylvania
Regulated
|
0.11
|
|
|
0.09
|
|
|
0.50
|
|
|
0.37
|
|
Corporate and
Other
|
(0.03)
|
|
|
(0.04)
|
|
|
(0.12)
|
|
|
(0.11)
|
|
Total
|
$
|
0.60
|
|
|
$
|
0.43
|
|
|
$
|
2.45
|
|
|
$
|
2.21
|
|
Key Factors Impacting Earnings
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.
Reported earnings in 2016 increased by $0.17 per share compared with a year ago, and
earnings from ongoing operations in 2016 increased by $0.05 per share. Excluding special items,
positive factors driving earnings results included an April 1, 2016 price increase; lower operation and
maintenance expense, including pension expense; and lower U.S.
income taxes due to a benefit recorded for the carryforward of
foreign tax credits. Negative factors driving earnings results
included the unfavorable impact of lower British pound sterling
exchange rates; an April 1, 2015
price decrease due to the beginning of the eight-year RIIO-ED1
price control period; lower sales volumes; higher interest expense;
and higher depreciation expense.
Reported earnings in the fourth quarter of 2016 increased by
$0.03 per share compared to a year
ago, and earnings from ongoing operations in the fourth quarter of
2016 increased by $0.11 per share.
Excluding special items, earnings results primarily reflect an
April 1, 2016 price increase, lower
U.S. income taxes due to a benefit recorded for the carryforward of
foreign tax credits, and lower operation and maintenance expense,
including pension expense, partially offset by the unfavorable
impact of lower British pound sterling exchange rates.
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.
Reported earnings in 2016 increased by $0.10 per share compared with a year ago, and
earnings from ongoing operations in 2016 increased by $0.07 per share. Excluding special items, the
increase was driven primarily by higher base electricity rates
effective July 1, 2015, and lower
operation and maintenance expense, partially offset by higher
interest expense.
Reported earnings and earnings from ongoing operations in the
fourth quarter of 2016 increased by $0.03 per share compared with a year ago. The
increase was primarily driven by higher sales volumes due to
weather and lower operation and maintenance
expense.
Pennsylvania Regulated Segment
PPL's Pennsylvania Regulated segment consists of the regulated
electricity transmission and distribution operations of PPL
Electric Utilities.
Reported earnings and earnings from ongoing operations in 2016
increased by $0.13 per share compared
with a year ago, driven primarily by higher base electricity rates
for distribution effective Jan. 1,
2016, and higher transmission earnings from additional
capital investments, partially offset by higher depreciation
expense.
Reported earnings and earnings from ongoing operations in the
fourth quarter of 2016 increased by $0.02 per share compared with a year ago, driven
primarily by higher base electricity rates for distribution
effective Jan. 1, 2016, and higher
transmission earnings from additional capital investments,
partially offset by higher depreciation expense and a benefit
received in 2015 from 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.
The reported loss for 2016 decreased by $0.02 per share compared to a year ago, and the
reported loss for the fourth quarter was the same as a year ago.
Earnings from ongoing operations in 2016 and in the fourth quarter
were relatively flat compared to a year ago.
Earnings Forecast
|
Reported
Earnings
|
|
Earnings from
Ongoing Operations
|
|
2017 forecast
midpoint
|
|
2016
actual
|
|
2017 forecast
midpoint
|
|
2016
actual
|
Per
share
|
|
|
|
|
|
|
|
U.K.
Regulated
|
$
|
1.18
|
|
|
$
|
1.83
|
|
|
$
|
1.18
|
|
|
$
|
1.49
|
|
Kentucky
Regulated
|
0.58
|
|
|
0.58
|
|
|
0.58
|
|
|
0.58
|
|
Pennsylvania
Regulated
|
0.50
|
|
|
0.50
|
|
|
0.50
|
|
|
0.50
|
|
Corporate and
Other
|
(0.11)
|
|
|
(0.12)
|
|
|
(0.11)
|
|
|
(0.12)
|
|
Total
|
$
|
2.15
|
|
|
$
|
2.79
|
|
|
$
|
2.15
|
|
|
$
|
2.45
|
|
(See the tables at the end of this news release for a
reconciliation of 2016 reported earnings to earnings from ongoing
operations.)
PPL's lower earnings guidance in 2017 compared to 2016 results
primarily from a lower assumed British pound sterling exchange rate
in 2017, dilution from the issuance of additional equity and 2016
tax benefits that are not expected to repeat in 2017.
U.K. Regulated Segment
PPL projects lower segment earnings in 2017 compared with 2016,
due to a lower assumed foreign currency rate in 2017, lower
incentive revenues, higher interest expense, higher depreciation
expense and higher income taxes, partially offset by lower
operation and maintenance expense, including pension expense.
The remaining 2017 foreign currency exposure for this segment is
92 percent hedged at an average rate of $1.21 per pound, compared to an average rate of
$1.45 per pound in 2016.
Kentucky Regulated Segment
PPL projects relatively flat segment earnings in 2017 compared
with 2016, primarily driven by electricity and gas base rate
increases, offset by higher operation and maintenance expense and
higher depreciation expense.
Pennsylvania Regulated Segment
PPL projects relatively flat segment earnings in 2017 compared
with 2016, primarily driven by higher transmission earnings and
lower operation and maintenance expense, offset by higher
depreciation expense, higher interest expense and higher income
taxes.
Corporate and Other
PPL projects costs to be relatively flat in this category in
2017 compared with 2016.
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. With about 13,000
employees, the company is 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 2016 financial results at 8:30 a.m.
Eastern Standard Time on Wednesday,
Feb. 1. 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 90 days after the call. Interested
individuals can access the live conference call via telephone at
1-888-346-8683. International participants should call
1-412-902-4270. Participants will need to enter the following
"Elite Entry" number in order to join the conference: 3826126.
Callers can access the webcast link at
http://www.pplweb.com/investors under Events and
Presentations.
Management utilizes "Earnings from Ongoing Operations" as a
non-GAAP financial measure that should not be considered as an
alternative to reported earnings, or net income, an indicator of
operating performance determined in accordance with GAAP. PPL
believes that Earnings from Ongoing Operations is useful and
meaningful to investors because it provides management's view of
PPL's earnings performance as another criterion in making
investment decisions. In addition, PPL's management uses Earnings
from Ongoing Operations in measuring achievement of certain
corporate performance goals, including targets for certain
executive incentive compensation. Other companies may use
different measures to present financial performance.
Earnings from Ongoing Operations is adjusted for the impact
of special items. Special items are presented in the financial
tables on an after-tax basis with the related income taxes on
special items separately disclosed. Income taxes on special items,
when applicable, are calculated based on the effective tax rate of
the entity where the activity is recorded. Special items
include:
- Unrealized gains or losses on foreign currency-related
economic hedges (as discussed below).
- 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,
non-recurring or otherwise not reflective of the company's ongoing
operations.
Unrealized gains or losses on foreign currency economic
hedges include the changes in fair value of foreign currency
contracts used to hedge British-pound-sterling-denominated
anticipated earnings. The changes in fair value of these
contracts are recognized immediately within GAAP
earnings. Management believes that excluding these amounts
from Earnings from Ongoing Operations until settlement of the
contracts provides a better matching of the financial impacts of
those contracts with the economic value of PPL's underlying hedged
earnings.
Statements contained in this news release, including
statements with respect to future earnings, cash flows, dividends,
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 U.S. 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 factors and other matters discussed in 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 (1)
|
|
|
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(Millions of
Dollars)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
341
|
|
|
$
|
836
|
|
Accounts
receivable
|
712
|
|
|
732
|
|
Unbilled
revenues
|
480
|
|
|
453
|
|
Fuel, materials and
supplies
|
356
|
|
|
357
|
|
Current price risk
management assets
|
63
|
|
|
139
|
|
Other current
assets
|
115
|
|
|
129
|
|
Property, Plant and
Equipment
|
|
|
|
Regulated utility
plant
|
34,674
|
|
|
34,399
|
|
Less: Accumulated
depreciation - regulated utility plant
|
6,013
|
|
|
5,683
|
|
Regulated
utility plant, net
|
28,661
|
|
|
28,716
|
|
Non-regulated
property, plant and equipment
|
413
|
|
|
516
|
|
Less: Accumulated
depreciation - non-regulated property, plant and
equipment
|
134
|
|
|
165
|
|
Non-regulated
property, plant and equipment, net
|
279
|
|
|
351
|
|
Construction work in
progress
|
1,134
|
|
|
1,315
|
|
Property, Plant and
Equipment, net
|
30,074
|
|
|
30,382
|
|
Noncurrent regulatory
assets
|
1,918
|
|
|
1,733
|
|
Goodwill and other
intangibles
|
3,760
|
|
|
4,229
|
|
Noncurrent price risk
management assets
|
336
|
|
|
156
|
|
Other noncurrent
assets
|
160
|
|
|
155
|
|
Total
Assets
|
$
|
38,315
|
|
|
$
|
39,301
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term
debt
|
$
|
923
|
|
|
$
|
916
|
|
Long-term debt due
within one year
|
518
|
|
|
485
|
|
Accounts
payable
|
820
|
|
|
812
|
|
Other current
liabilities
|
1,576
|
|
|
1,663
|
|
Long-term
debt
|
17,808
|
|
|
18,563
|
|
Deferred income taxes
and investment tax credits
|
4,021
|
|
|
3,568
|
|
Accrued pension
obligations
|
1,001
|
|
|
1,405
|
|
Asset retirement
obligations
|
428
|
|
|
536
|
|
Noncurrent regulatory
liabilities
|
899
|
|
|
945
|
|
Other noncurrent
liabilities
|
422
|
|
|
489
|
|
Common stock and
additional paid-in capital
|
9,848
|
|
|
9,694
|
|
Earnings
reinvested
|
3,829
|
|
|
2,953
|
|
Accumulated other
comprehensive loss
|
(3,778)
|
|
|
(2,728)
|
|
Total Liabilities
and Equity
|
$
|
38,315
|
|
|
$
|
39,301
|
|
|
|
(1)
|
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.
|
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,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
Revenues
|
$
|
1,832
|
|
|
$
|
1,780
|
|
|
$
|
7,517
|
|
|
$
|
7,669
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Operation
|
|
|
|
|
|
|
|
Fuel
|
184
|
|
|
168
|
|
|
791
|
|
|
863
|
|
Energy
purchases
|
175
|
|
|
179
|
|
|
706
|
|
|
855
|
|
Other
operation and maintenance
|
453
|
|
|
533
|
|
|
1,745
|
|
|
1,938
|
|
Depreciation
|
234
|
|
|
225
|
|
|
926
|
|
|
883
|
|
Taxes, other than
income
|
72
|
|
|
58
|
|
|
301
|
|
|
299
|
|
Total Operating
Expenses
|
1,118
|
|
|
1,163
|
|
|
4,469
|
|
|
4,838
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
714
|
|
|
617
|
|
|
3,048
|
|
|
2,831
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) - net
|
106
|
|
|
47
|
|
|
390
|
|
|
108
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
217
|
|
|
226
|
|
|
888
|
|
|
871
|
|
|
|
|
|
|
|
|
|
Income from
Continuing Operations Before Income Taxes
|
603
|
|
|
438
|
|
|
2,550
|
|
|
2,068
|
|
|
|
|
|
|
|
|
|
Income
Taxes
|
138
|
|
|
33
|
|
|
648
|
|
|
465
|
|
|
|
|
|
|
|
|
|
Income from
Continuing Operations After Income Taxes
|
465
|
|
|
405
|
|
|
1,902
|
|
|
1,603
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Discontinued Operations (net of income taxes)
|
—
|
|
|
(6)
|
|
|
—
|
|
|
(921)
|
|
|
|
|
|
|
|
|
|
Net
Income
|
$
|
465
|
|
|
$
|
399
|
|
|
$
|
1,902
|
|
|
$
|
682
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
of Common Stock:
|
|
|
|
|
|
|
|
Income from
Continuing Operations After Income Taxes Available to PPL Common
Shareowners:
|
|
|
|
|
|
Basic
|
$
|
0.68
|
|
|
$
|
0.60
|
|
|
$
|
2.80
|
|
|
$
|
2.38
|
|
Diluted
|
$
|
0.68
|
|
|
$
|
0.60
|
|
|
$
|
2.79
|
|
|
$
|
2.37
|
|
Net Income Available
to PPL Common Shareowners:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.68
|
|
|
$
|
0.59
|
|
|
$
|
2.80
|
|
|
$
|
1.01
|
|
Diluted
|
$
|
0.68
|
|
|
$
|
0.59
|
|
|
$
|
2.79
|
|
|
$
|
1.01
|
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares of Common Stock Outstanding (in thousands)
|
|
|
|
|
|
|
|
Basic
|
679,641
|
|
|
673,028
|
|
|
677,592
|
|
|
669,814
|
|
Diluted
|
681,863
|
|
|
676,548
|
|
|
680,446
|
|
|
672,586
|
|
PPL
CORPORATION AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(Millions of
Dollars)
|
|
2016
|
|
2015
|
|
2014
|
Cash Flows from
Operating Activities
|
|
|
|
|
|
Net income
|
$
|
1,902
|
|
|
$
|
682
|
|
|
$
|
1,737
|
|
Loss (income) from
discontinued operations (net of income taxes)
|
—
|
|
|
921
|
|
|
(300)
|
|
Income from
continuing operations (net of income taxes)
|
1,902
|
|
|
1,603
|
|
|
1,437
|
|
Adjustments to
reconcile Income from continuing operations (net of taxes) to net
cash provided by operating activities - continuing
operations
|
|
|
|
|
|
Depreciation
|
926
|
|
|
883
|
|
|
923
|
|
Amortization
|
80
|
|
|
59
|
|
|
65
|
|
Defined benefit
plans - expense (income)
|
(40)
|
|
|
56
|
|
|
48
|
|
Deferred income
taxes and investment tax credits
|
560
|
|
|
428
|
|
|
666
|
|
Unrealized
(gains) losses on derivatives, and other hedging
activities
|
19
|
|
|
(77)
|
|
|
(187)
|
|
Adjustment to
WPD line loss accrual
|
—
|
|
|
—
|
|
|
65
|
|
Other
|
16
|
|
|
17
|
|
|
66
|
|
Change in current
assets and current liabilities
|
|
|
|
|
|
Accounts
receivable
|
(15)
|
|
|
47
|
|
|
(123)
|
|
Accounts
payable
|
57
|
|
|
(116)
|
|
|
40
|
|
Taxes
payable
|
31
|
|
|
(175)
|
|
|
161
|
|
Unbilled
revenues
|
(63)
|
|
|
54
|
|
|
22
|
|
Prepayments
|
(4)
|
|
|
(23)
|
|
|
87
|
|
Regulatory
assets and liabilities, net
|
(59)
|
|
|
42
|
|
|
(7)
|
|
Other
|
(31)
|
|
|
40
|
|
|
30
|
|
Other operating
activities
|
|
|
|
|
|
Defined benefit
plans - funding
|
(427)
|
|
|
(499)
|
|
|
(384)
|
|
Settlement of
interest rate swaps
|
(9)
|
|
|
(101)
|
|
|
—
|
|
Other
|
(53)
|
|
|
34
|
|
|
32
|
|
Net cash provided by
operating activities - continuing operations
|
2,890
|
|
|
2,272
|
|
|
2,941
|
|
Net cash provided by
operating activities - discontinued operations
|
—
|
|
|
343
|
|
|
462
|
|
Net cash provided by
operating activities
|
2,890
|
|
|
2,615
|
|
|
3,403
|
|
Cash Flows from
Investing Activities
|
|
|
|
|
|
Expenditures for
property, plant and equipment
|
(2,920)
|
|
|
(3,533)
|
|
|
(3,674)
|
|
Expenditures for
intangible assets
|
(37)
|
|
|
(37)
|
|
|
(49)
|
|
Purchases of other
investments
|
—
|
|
|
—
|
|
|
(120)
|
|
Proceeds from the
sale of other investments
|
2
|
|
|
136
|
|
|
—
|
|
Other investing
activities
|
37
|
|
|
(5)
|
|
|
17
|
|
Net cash provided by
(used in) investing activities - continuing operations
|
(2,918)
|
|
|
(3,439)
|
|
|
(3,826)
|
|
Net cash provided by
(used in) investing activities - discontinued operations
|
—
|
|
|
(149)
|
|
|
497
|
|
Net cash used in
investing activities
|
(2,918)
|
|
|
(3,588)
|
|
|
(3,329)
|
|
Cash Flows from
Financing Activities
|
|
|
|
|
|
Issuance of long-term
debt
|
1,342
|
|
|
2,236
|
|
|
296
|
|
Retirement of
long-term debt
|
(930)
|
|
|
(1,000)
|
|
|
(237)
|
|
Settlement of
cross-currency swaps
|
46
|
|
|
—
|
|
|
—
|
|
Issuance of common
stock
|
144
|
|
|
203
|
|
|
1,074
|
|
Payment of common
stock dividends
|
(1,030)
|
|
|
(1,004)
|
|
|
(967)
|
|
Net increase in
short-term debt
|
29
|
|
|
94
|
|
|
147
|
|
Other financing
activities
|
(40)
|
|
|
(47)
|
|
|
(51)
|
|
Net cash provided by
(used in) financing activities - continuing operations
|
(439)
|
|
|
482
|
|
|
262
|
|
Net cash provided by
(used in) financing activities - discontinued operations
|
—
|
|
|
(546)
|
|
|
(846)
|
|
Net cash
distributions to parent from discontinued operations
|
—
|
|
|
132
|
|
|
1,167
|
|
Net cash provided by
(used in) financing activities
|
(439)
|
|
|
68
|
|
|
583
|
|
Effect of Exchange
Rates on Cash and Cash Equivalents
|
(28)
|
|
|
(10)
|
|
|
(8)
|
|
Net (Increase)
Decrease in Cash and Cash Equivalents included in Discontinued
Operations
|
—
|
|
|
352
|
|
|
(113)
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
(495)
|
|
|
(563)
|
|
|
536
|
|
Cash and Cash
Equivalents at Beginning of Period
|
836
|
|
|
1,399
|
|
|
863
|
|
Cash and Cash
Equivalents at End of Period
|
$
|
341
|
|
|
$
|
836
|
|
|
$
|
1,399
|
|
Key Indicators
(Unaudited)
|
|
|
|
|
|
12 Months
Ended
December 31,
|
Financial
|
2016
|
|
2015
|
|
|
|
|
Dividends declared
per share of common stock
|
$
|
1.52
|
|
|
$
|
1.50
|
|
Book value per share
(1)(2)++
|
$
|
14.56
|
|
|
$
|
14.72
|
|
Market price per
share (1)
|
$
|
34.05
|
|
|
$
|
34.13
|
|
Dividend
yield
|
4.5
|
%
|
|
4.4
|
%
|
Dividend payout ratio
(3)(4)
|
54.5
|
%
|
|
148.5
|
%
|
Dividend payout ratio
- earnings from ongoing operations (3)(5)
|
62.0
|
%
|
|
67.9
|
%
|
Price/earnings ratio
(3)(4)
|
12.2
|
|
|
33.8
|
|
Price/earnings ratio
- earnings from ongoing operations (3)(5)
|
13.9
|
|
|
15.4
|
|
Return on common
equity (4)
|
19.2
|
%
|
|
5.8
|
%
|
Return on common
equity - earnings from ongoing operations
(5)(6)
|
16.9
|
%
|
|
15.2
|
%
|
Spot rate of U.S.
Dollar per British pound sterling for Balance Sheet translation
(7)
|
$
|
1.25
|
|
|
$
|
1.51
|
|
Average rate of U.S.
Dollar per British pound sterling for Statement of Income
translation (8)
|
$
|
1.45
|
|
|
$
|
1.57
|
|
|
|
(1)
|
End of
period.
|
(2)
|
Based on 679,731 and
673,857 shares of common stock outstanding (in thousands) at
December 31, 2016, and December 31, 2015.
|
(3)
|
Based on diluted
earnings per share.
|
(4)
|
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 five months of Supply segment earnings.
|
(5)
|
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.
|
(6)
|
2015 was adjusted to
exclude the equity of PPL Energy Supply, LLC as that business was
spun off in 2015.
|
(7)
|
As of November 30,
2016 and 2015 as WPD is consolidated on a one-month lag.
|
(8)
|
Includes the impact
of foreign exchange hedges as of November 30, 2016 and 2015 as WPD
is consolidated on a one-month lag.
|
Operating -
Domestic & International Electricity Sales
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
December 31,
|
|
12 Months Ended
December 31,
|
|
|
|
|
|
Percent
|
|
|
|
|
|
Percent
|
(GWh)
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Retail
Delivered
|
|
|
|
|
|
|
|
|
|
|
|
PPL Electric
Utilities
|
8,885
|
|
|
8,433
|
|
|
5.4
|
%
|
|
36,645
|
|
|
36,984
|
|
|
(0.9)
|
%
|
LKE
|
7,184
|
|
|
6,830
|
|
|
5.2
|
%
|
|
30,829
|
|
|
30,814
|
|
|
—
|
%
|
Total
|
16,069
|
|
|
15,263
|
|
|
5.3
|
%
|
|
67,474
|
|
|
67,798
|
|
|
(0.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Retail
Supplied
|
|
|
|
|
|
|
|
|
|
|
|
LKE
(1)
|
7,184
|
|
|
6,830
|
|
|
5.2
|
%
|
|
30,829
|
|
|
30,814
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Delivered
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom
|
18,758
|
|
|
18,785
|
|
|
(0.1)
|
%
|
|
74,728
|
|
|
75,907
|
|
|
(1.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Wholesale
|
|
|
|
|
|
|
|
|
|
|
|
LKE
(2)
|
581
|
|
|
452
|
|
|
28.5
|
%
|
|
2,177
|
|
|
2,241
|
|
|
(2.9)
|
%
|
|
|
(1)
|
Represents GWh
supplied by LKE to retail customers in Kentucky, Virginia and
Tennessee.
|
(2)
|
Represents
FERC-regulated municipal and unregulated off-system
sales.
|
Reconciliation of
Segment Reported Earnings to Earnings from Ongoing
Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
4th Quarter
2016
|
(millions of
dollars)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings
|
$
|
331
|
|
|
$
|
84
|
|
|
$
|
75
|
|
|
$
|
(25)
|
|
|
$
|
465
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges, net of tax of ($31)
|
57
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57
|
|
Spinoff of the Supply
segment, net of tax of $1
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
(1)
|
|
Total Special
Items
|
57
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
56
|
|
Earnings from
Ongoing Operations
|
$
|
274
|
|
|
$
|
84
|
|
|
$
|
75
|
|
|
$
|
(24)
|
|
|
$
|
409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings
|
$
|
0.48
|
|
|
$
|
0.12
|
|
|
$
|
0.11
|
|
|
$
|
(0.03)
|
|
|
$
|
0.68
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
0.08
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.08
|
|
Total Special
Items
|
0.08
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.08
|
|
Earnings from
Ongoing Operations
|
$
|
0.40
|
|
|
$
|
0.12
|
|
|
$
|
0.11
|
|
|
$
|
(0.03)
|
|
|
$
|
0.60
|
|
Reconciliation of
Segment Reported Earnings to Earnings from Ongoing
Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date December
31, 2016
|
(millions of
dollars)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings
|
$
|
1,246
|
|
|
$
|
398
|
|
|
$
|
338
|
|
|
$
|
(80)
|
|
|
$
|
1,902
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges, net of tax of $4
|
(8)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8)
|
|
Spinoff of the Supply
segment, net of tax of $2
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
(3)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
Settlement of foreign
currency contracts, net of tax of ($108)
|
202
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
202
|
|
Change in U.K. tax
rate
|
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
Total Special
Items
|
231
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
228
|
|
Earnings from
Ongoing Operations
|
$
|
1,015
|
|
|
$
|
398
|
|
|
$
|
338
|
|
|
$
|
(77)
|
|
|
$
|
1,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings
|
$
|
1.83
|
|
|
$
|
0.58
|
|
|
$
|
0.50
|
|
|
$
|
(0.12)
|
|
|
$
|
2.79
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
(0.01)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
Settlement of foreign
currency contracts
|
0.30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.30
|
|
Change in U.K. tax
rate
|
0.05
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.05
|
|
Total Special
Items
|
0.34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.34
|
|
Earnings from
Ongoing Operations
|
$
|
1.49
|
|
|
$
|
0.58
|
|
|
$
|
0.50
|
|
|
$
|
(0.12)
|
|
|
$
|
2.45
|
|
Reconciliation of
Segment Reported Earnings to Earnings from Ongoing
Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
4th Quarter
2015
|
(millions of
dollars)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.
|
|
Total
|
Reported
Earnings
|
$
|
307
|
|
|
$
|
59
|
|
|
$
|
61
|
|
|
$
|
(23)
|
|
|
$
|
(5)
|
|
|
$
|
399
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges, net of tax of ($20)
|
35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations, net of tax of ($7)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
(5)
|
|
Transition and
transaction costs, net of tax of $6
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
Employee transitional
services, net of tax of $0
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
Separation benefits,
net of tax of $1
|
—
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
(2)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
Change in U.K. tax
rate
|
78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78
|
|
Certain valuation
allowances, net of tax of $0
|
—
|
|
|
(4)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4)
|
|
Total Special
Items
|
113
|
|
|
(4)
|
|
|
—
|
|
|
1
|
|
|
(5)
|
|
|
105
|
|
Earnings from
Ongoing Operations
|
$
|
194
|
|
|
$
|
63
|
|
|
$
|
61
|
|
|
$
|
(24)
|
|
|
$
|
—
|
|
|
$
|
294
|
|
|
|
(per share -
diluted)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.
|
|
Total
|
Reported
Earnings
|
$
|
0.45
|
|
|
$
|
0.09
|
|
|
$
|
0.09
|
|
|
$
|
(0.03)
|
|
|
$
|
(0.01)
|
|
|
$
|
0.59
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
0.05
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.05
|
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
|
(0.01)
|
|
Transition and
transaction costs
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
Change in U.K. tax
rate
|
0.11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.11
|
|
Total Special
Items
|
0.16
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
(0.01)
|
|
|
0.16
|
|
Earnings from
Ongoing Operations
|
$
|
0.29
|
|
|
$
|
0.09
|
|
|
$
|
0.09
|
|
|
$
|
(0.04)
|
|
|
$
|
—
|
|
|
$
|
0.43
|
|
Reconciliation of
Segment Reported Earnings to Earnings from Ongoing
Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date December
31, 2015
|
(millions of
dollars)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.(1)
|
|
Total
|
Reported
Earnings
|
$
|
1,121
|
|
|
$
|
326
|
|
|
$
|
252
|
|
|
$
|
(96)
|
|
|
$
|
(921)
|
|
|
$
|
682
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges, net of tax of ($30)
|
55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55
|
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations, net of tax of $30
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(921)
|
|
|
(921)
|
|
Transition and
transaction costs, net of tax of $6
|
—
|
|
|
—
|
|
|
—
|
|
|
(12)
|
|
|
—
|
|
|
(12)
|
|
Employee transitional
services, net of tax of $2
|
—
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
—
|
|
|
(5)
|
|
Separation benefits,
net of tax of $3
|
—
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
—
|
|
|
(5)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
Change in U.K. tax
rate
|
78
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78
|
|
Settlement of certain
income tax positions
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
WPD Midlands
acquisition-related adjustment, net of tax of ($1)
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Certain valuation
allowances, net of tax of $0
|
—
|
|
|
(12)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12)
|
|
LKE
acquisition-related adjustment, net of tax of $0
|
—
|
|
|
(5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
Total Special
Items
|
153
|
|
|
(17)
|
|
|
—
|
|
|
(22)
|
|
|
(921)
|
|
|
(807)
|
|
Earnings from
Ongoing Operations
|
$
|
968
|
|
|
$
|
343
|
|
|
$
|
252
|
|
|
$
|
(74)
|
|
|
$
|
—
|
|
|
$
|
1,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.(1)
|
|
Total
|
Reported
Earnings
|
$
|
1.66
|
|
|
$
|
0.48
|
|
|
$
|
0.37
|
|
|
$
|
(0.14)
|
|
|
$
|
(1.36)
|
|
|
$
|
1.01
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
0.08
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.08
|
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.36)
|
|
|
(1.36)
|
|
Transition and
transaction costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
|
—
|
|
|
(0.02)
|
|
Employee transitional
services
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(0.01)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
Change in U.K. tax
rate
|
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
|
0.22
|
|
|
(0.03)
|
|
|
—
|
|
|
(0.03)
|
|
|
(1.36)
|
|
|
(1.20)
|
|
Earnings from
Ongoing Operations
|
$
|
1.44
|
|
|
$
|
0.51
|
|
|
$
|
0.37
|
|
|
$
|
(0.11)
|
|
|
$
|
—
|
|
|
$
|
2.21
|
|
|
|
(1)
|
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: Lisa Pammer, 610-774-3316
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ppl-corporation-reports-2016-earnings-300400340.html
SOURCE PPL Corporation