Segment and Related Information

12 Months Ended

Dec. 31, 2011

Segment and Related Information [Abstract]

Segment and Related Information

2. Segment and Related Information

(PPL and PPL Energy Supply)

Since the acquisition of LKE on November 1, 2010, PPL is organized into four segments: Kentucky Regulated, International Regulated, Pennsylvania Regulated and Supply. PPL's segments are split between its regulated and competitive businesses with its regulated businesses further segmented by geographic location.

The Kentucky Regulated segment consists primarily of LKE's regulated electric generation, transmission and distribution operations, primarily in Kentucky. This segment also includes LKE's regulated distribution and sale of natural gas in Kentucky. In addition, the Kentucky Regulated segment includes certain financing activities associated with the acquisition of LKE. See Note 10 for additional information regarding the acquisition.

The International Regulated segment primarily consists of the regulated electric distribution operations in the U.K.This includes the operating results and assets of WPD Midlands since the April 1, 2011 acquisition date recorded on a one-month lag. The International Regulated segment also includes certain acquisition-related costs and financing activities associated with the acquisition of WPD Midlands. See Note 10 for additional information regarding the acquisition.

The Pennsylvania Regulated segment includes the regulated electric transmission and distribution operations of PPL Electric.

The Supply segment primarily consists of the domestic energy marketing and trading activities, as well as the competitive generation operations of PPL Energy Supply. In 2011, 2010 and 2009, PPL Energy Supply sold certain Supply segment generation facilities and businesses. See Note 9 for additional information.

"Unallocated Costs" representone-time LKE acquisition-related costs including advisory, accounting and legal fees, certain internal costs and 2010 Bridge Facility costs.

The results of several facilities and businesses have been classified as Discontinued Operations on the Statements of Income. See Note 9 for additional information on these discontinued operations. Therefore, with the exception of “Net Income Attributable to PPL/PPL Energy Supply,” the operating results from these facilities and businesses have been excluded from the income statement data tables below.

In January 2011, PPL Energy Supply distributed its membership interest in PPL Global to its parent, PPL Energy Funding. Following the distribution, PPL Energy Supply operates in a single reportable segment, the Supply segment. PPL Energy Supply's 2010 and 2009 segment information was revised to reflect PPL Global as a Discontinued Operation. See Note 9 for additional information. The Supply segment information reported by PPL Energy Supply does not equal the Supply segment information reported by PPL because additional Supply segment functions exist at PPL. Further, certain income items, including PLR revenue and certain interest income with affiliates, exist at PPL Energy Supply but are eliminated in consolidation by PPL. Finally, certain expense items are fully allocated to the segments by PPL only.

Segment costs include direct charges, as well as an allocation of indirect corporate service costs, from PPL Services. These service costs include functions such as financial, legal, human resources and information services. See Note 16 for additional information.

Financial data for the segments are:

					PPL						PPL Energy Supply
					2011		2010		2009		2011		2010		2009
Income Statement Data
Revenues from external customers by
	product
		Kentucky Regulated
			Utility service (b)		$	2,793	$	493
		International Regulated
			Utility service (b)			1,618		727	$	684
			Energy-related businesses			35		34		32
				Total		1,653		761		716
		Pennsylvania Regulated
			Utility service (b)			1,881		2,448		3,218
		Supply
			Energy (a)			5,938		4,444		3,124	$	5,965	$	4,764	$	4,930
			Energy-related businesses			472		375		391		464		364		379
				Total		6,410		4,819		3,515		6,429		5,128		5,309
Total						12,737		8,521		7,449		6,429		5,128		5,309
Intersegment electric revenues
		Pennsylvania Regulated				11		7		74
		Supply (c)				26		320		1,806
Depreciation
		Kentucky Regulated				334		49
		International Regulated				218		117		115
		Pennsylvania Regulated				146		136		128
		Supply				262		254		212
Total						960		556		455		244		236		196
Amortization (d)
		Kentucky Regulated				27
		International Regulated				83		13		(13)
		Pennsylvania Regulated				7		(22)		312
		Supply				137		148		90
		Unallocated costs						74
Total						254		213		389		137		147		88
Unrealized (gains) losses on derivatives
	and other hedging activities (a)
		Kentucky Regulated				(2)		1
		Supply				(312)		541		329
Total						(314)		542		329		(283)		536		330
Interest income (e)
		International Regulated				4		2		1
		Pennsylvania Regulated				1		4		11
		Supply				2		2		2
Total						7		8		14		9		12		7
Interest Expense (f)
		Kentucky Regulated				217		55
		International Regulated				391		135		87
		Pennsylvania Regulated				98		99		118
		Supply				192		224		182
		Unallocated costs						80
Total						898		593		387		174		208		176
Income from Continuing
	Operations Before Income Taxes
		Kentucky Regulated				349		40
		International Regulated				358		261		290
		Pennsylvania Regulated				257		192		221
		Supply (a)				1,237		860		27
		Unallocated costs						(114)
Total						2,201		1,239		538		1,212		881		(13)
Income Taxes (g)
		Kentucky Regulated				127		16
		International Regulated				33				20
		Pennsylvania Regulated				68		57		79
		Supply				463		228		6
		Unallocated costs						(38)
Total						691		263		105		445		261		3
Deferred income taxes and investment
	tax credits (h)
		Kentucky Regulated				218		51
		International Regulated				(39)		17		12
		Pennsylvania Regulated				106		198		(23)
		Supply				299		(15)		133
Total						584		251		122		318		(25)		147
Net Income Attributable to
	PPL/PPL Energy Supply
		Kentucky Regulated				221		26
		International Regulated (i)				325		261		243				261		243
		Pennsylvania Regulated				173		115		124
		Supply (a) (j)				776		612		40		768		600		3
		Unallocated costs						(76)
Total					$	1,495	$	938	$	407	$	768	$	861	$	246
Cash Flow Data
Expenditures for long-lived assets
		Kentucky Regulated			$	465	$	152
		International Regulated				862		281	$	240			$	281	$	240
		Pennsylvania Regulated				490		411		298
		Supply				739		795		723	$	702		760		694
Total					$	2,556	$	1,639	$	1,261	$	702	$	1,041	$	934

		PPL				PPL Energy Supply
		As of December 31,				As of December 31,
		2011		2010		2011		2010
Balance Sheet Data
Total Assets
	Kentucky Regulated (k)	$	10,229	$	10,318
	International Regulated		13,364		4,800			$	4,800
	Pennsylvania Regulated		5,610		5,189
	Supply (k)		13,445		12,530	$	13,179		11,996
Total		$	42,648	$	32,837	$	13,179	$	16,796

			PPL						PPL Energy Supply
			2011		2010		2009		2011		2010		2009
Geographic Data
Revenues from external
	customers
		U.S.	$	11,084	$	7,760	$	6,733	$	6,429	$	5,128	$	5,309
		U.K.		1,653		761		716
Total			$	12,737	$	8,521	$	7,449	$	6,429	$	5,128	$	5,309

		PPL				PPL Energy Supply
		As of December 31,				As of December 31,
		2011		2010		2011		2010
Long-Lived Assets
	U.S.	$	19,129	$	18,228	$	6,872	$	6,519
	U.K.		8,996		3,505				3,505
Total		$	28,125	$	21,733	$	6,872	$	10,024

(a)       Includes unrealized gains and losses from economic activity. See Note 19 for additional information.

(b)       See Note 1for additional information on Utility Revenue.

(c)       See "PLR Contracts/Purchase of Accounts Receivable" and "NUG Purchases" in Note 16 for a discussion of the basis of accounting between reportable segments.

(d)       Represents non-cash expense items that include amortization of nuclear fuel, regulatory assets, debt discounts and premiums,debt issuance costs, emission allowances and RECs.

(e)       Includes interest income from affiliate(s).

(f)       Includes interest expense with affiliate(s).

(g)       Represents both current and deferred income taxes, including investment tax credits.

(h)       Represents a non-cash expense item that is also included in “Income Taxes.”

(i)       For PPL Energy Supply, 2010 and 2009 were reported as Discontinued Operations. See Note 9 for additional information, including the $24 million of income tax expense recognized in 2009 by the International Regulated segment related to a correction of income tax bases for the Latin American businesses sold in 2007.

(j)       In April 2011, during the PPL Susquehanna Unit 2 refueling and generation uprate outages, a planned inspection of the Unit 2 turbine revealed cracks in certain of its low pressure turbine blades. As a precaution, PPL Susquehanna also took Unit 1 out of service in mid-May to inspect that unit's turbine blades. This inspection revealed cracked blades similar to those found in Unit 2. Replacement of these blades was completed, significantly extending these outages. The after-tax earnings impact, including reduced energy sales margins and repair expense for both units was $63 million in 2011.

(k)       A portion of the goodwill related to the 2010 LKE acquisition has been attributed to PPL's Supply segment.

(PPL Electric, LKE, LG&E and KU)

PPL Electric, LKE, LG&E and KUeach operate withina single reportable segment.