Income Taxes

3 Months Ended

Mar. 31, 2015

Income Taxes [Abstract]

Income Taxes

5. Income Taxes

Reconciliations of income taxes for the periods ended March 31 are:

(PPL)
				Three Months
				2015		2014
Federal income tax on Income from Continuing Operations Before
	Income Taxes at statutory tax rate - 35%			$	320	$	153
Increase (decrease) due to:
		State income taxes, net of federal income tax benefit			25		3
		Valuation allowance adjustments			3
		Impact of lower U.K. income tax rates			(62)		(44)
		U.S. income tax on foreign earnings - net of foreign tax credit			(1)		11
		Intercompany interest on U.K. financing entities			(8)		(2)
		Other			(9)		(7)
			Total increase (decrease)		(52)		(39)
Total income taxes				$	268	$	114

(PPL Electric)
			Three Months
			2015		2014
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%			$	51	$	48
Increase (decrease) due to:
	State income taxes, net of federal income tax benefit			10		8
	Other			(2)		(3)
		Total increase (decrease)		8		5
Total income taxes			$	59	$	53

(LKE)
			Three Months
			2015		2014
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%			$	68	$	64
Increase (decrease) due to:
	State income taxes, net of federal income tax benefit			7		7
	Valuation allowance adjustments			3
	Other			(2)		(2)
		Total increase (decrease)		8		5
Total income taxes			$	76	$	69

(LG&E)
			Three Months
			2015		2014
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%			$	30	$	29
Increase (decrease) due to:
	State income taxes, net of federal income tax benefit			3		3
	Other					(2)
		Total increase (decrease)		3		1
Total income taxes			$	33	$	30

(KU)
			Three Months
			2015		2014
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%			$	44	$	43
Increase (decrease) due to:
	State income taxes, net of federal income tax benefit			4		4
	Other			(1)		(1)
		Total increase (decrease)		3		3
Total income taxes			$	47	$	46

Other(PPL)

In February 2015, PPL and the IRS Appeals division reached a settlement on the amount of PPL's refund from its open audits for the years 1998 – 2011. The settlement was required to be reviewed and approved by the Joint Committee on Taxation (JCT) before it is considered final. In April 2015, PPL was notified that the JCT approved PPL's settlement.  Subject to a final determination of interest on the refund, PPL expects to record a tax benefit in the range of $20million to $30million in the second quarter of 2015 related to the settlement of previously unrecognized tax benefits.