Segment and Related Information

12 Months Ended

Dec. 31, 2014

Segment and Related Information [Abstract]

Segment and Related Information

2. Segment and Related Information

(PPL)

PPL is organized into foursegments: U.K. Regulated, Kentucky 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 U.K. Regulated segment consists of PPL Global which primarily includes WPD's regulated electricity distribution operations, the results of hedging the translation of WPD’s earnings from British pound sterling into U.S. dollars, and certain costs, such as U.S. income taxes, administrative costs, and allocated financing costs.

The Kentucky Regulated segment consists primarily of LKE’s regulated electricity generation, transmission and distribution operations of LG&E and KU, as well as LG&E’s regulated distribution and sale of natural gas. In addition, certain financing costs are allocated to the Kentucky Regulatedsegment.

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

The Supply segment consists primarily ofPPL Energy Supply's wholesale, retail, marketing and trading activities, as well as its competitive generation operations. In addition, certain financing and other costs are allocated to the Supply segment.

In June 2014, PPL and PPL Energy Supply, which primarily represents PPL's Supply segment, executed definitive agreements with affiliates of Riverstone to combine their competitive power generation businesses into a new, stand-alone, publicly traded company named Talen Energy. The transaction is expected to close in the second quarter of 2015. Upon completion of this transaction, PPL will no longer have a Supply segment. See Note 8 for additional information.

"Corporate and Other" primarily includes financing costs incurred at the corporate level that have not been allocated or assigned to the segments, as well as certain other unallocated costs, which is presented to reconcile segment information to PPL’s consolidated results.

Financial data for the segments are:

Income Statement Data					2014		2013		2012
Revenues from external customers by product
		U.K. Regulated
			Utility service (a)		$	2,573	$	2,359	$	2,289
			Energy-related businesses			48		44		47
				Total		2,621		2,403		2,336
		Kentucky Regulated
			Utility service (a)			3,168		2,976		2,759
		Pennsylvania Regulated
			Utility service (a)			2,044		1,866		1,760
		Supply
			Energy (b)			3,051		3,936		4,816
			Energy-related businesses			601		527		461
				Total		3,652		4,463		5,277
		Corporate and Other				14		13
Total						11,499		11,721		12,132
Intersegment electric revenues
		Supply (c)				84		51		79
Depreciation
		U.K. Regulated				337		300		279
		Kentucky Regulated				354		334		346
		Pennsylvania Regulated				185		178		160
		Supply				297		299		276
		Corporate and Other				47		31		26
Total						1,220		1,142		1,087
Amortization (d)
		U.K. Regulated				17		19		15
		Kentucky Regulated				25		22		27
		Pennsylvania Regulated				19		19		18
		Supply				163		156		126
		Corporate and Other				4		6
Total						228		222		186
Unrealized (gains) losses on derivatives and other hedging activities (b)
		U.K. Regulated				(199)		44		52
		Kentucky Regulated				12		12		11
		Supply				12		180		(36)
Total						(175)		236		27
Interest Expense
		U.K. Regulated				461		425		421
		Kentucky Regulated				219		212		219
		Pennsylvania Regulated				122		108		99
		Supply				181		216		212
		Corporate and Other				41		33
Total						1,024		994		951
Income from Continuing Operations Before Income Taxes
		U.K. Regulated				1,311		993		953
		Kentucky Regulated				501		484		263
		Pennsylvania Regulated				423		317		204
		Supply (b) (e)				246		(477)		589
		Corporate and Other (f)				(117)		(57)
Total						2,364		1,260		2,009
Income Taxes (g)
		U.K. Regulated				329		71		150
		Kentucky Regulated				189		179		80
		Pennsylvania Regulated				160		108		68
		Supply				93		(174)		220
		Corporate and Other (f)				10		(21)
Total						781		163		518
Deferred income taxes and investment tax credits (h)
		U.K. Regulated				94		(45)		26
		Kentucky Regulated				449		254		136
		Pennsylvania Regulated				87		127		114
		Supply				(110)		(291)		141
		Corporate and Other (f)				36		32
Total						556		77		417
Net Income Attributable to PPL Shareowners
		U.K. Regulated				982		922		803
		Kentucky Regulated				312		307		177
		Pennsylvania Regulated				263		209		132
		Supply (b) (e) (i)				307		(272)		414
		Corporate and Other (f)				(127)		(36)
	Total				$	1,737	$	1,130	$	1,526
Cash Flow Data						2014		2013		2012
Expenditures for long-lived assets
		U.K. Regulated			$	1,438	$	1,280	$	1,016
		Kentucky Regulated				1,262		1,434		768
		Pennsylvania Regulated				957		942		633
		Supply				431		568		736
		Corporate and Other				66		59
Total					$	4,154	$	4,283	$	3,153

		As of December 31,
		2014		2013
Balance Sheet Data
Total Assets
	U.K. Regulated	$	16,005	$	15,895
	Kentucky Regulated		13,062		12,016
	Pennsylvania Regulated		7,785		6,846
	Supply		11,025		11,408
	Corporate and Other (j)		987		94
Total		$	48,864	$	46,259

		2014		2013		2012
Geographic Data
Revenues from external customers
	U.K.	$	2,621	$	2,403	$	2,336
	U.S.		8,878		9,318		9,796
Total		$	11,499	$	11,721	$	12,132

		As of December 31,
		2014		2013
Long-Lived Assets
	U.K.	$	11,942	$	11,384
	U.S.		23,572		22,638
Total		$	35,514	$	34,022

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

(b)Includes unrealized gains and losses from economic activity. See Note 17 for additional information.

(c)See "PLR Contracts/Purchase of Accounts Receivable" in Note 14 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)2013 includes a charge of $697 million ($413 million after tax) for the termination of the lease of the Colstrip coal-fired electric generating facility. See Note 8 for additional information.

(f)2014 includes most of the costs related to the anticipated spinoff of PPL Energy Supply, including deferred income tax expense, transaction and transition costs and separation benefits for PPL Services employees. See Note 8 for additional information.

(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)2014 includes a gain of $237 million ($137 million after tax) on the sale of the Montana hydroelectric generating facilities. See Note 8 for additional information.

(j)Primarily consists of unallocated items, including cash, PP&E and the elimination of inter-segment transactions. Increase in 2014 was primarily due to increased cash on hand.

(All Registrants except PPL)

PPL Energy Supply, PPL Electric, LKE, LG&E and KU each operate within a single reportable segment.