Acquisitions, Development and Divestures (Tables)

9 Months Ended

Sep. 30, 2015

Acquisitions, Development and Divestitures [Line Items]

Components of Discontinued Operations

The following table summarizes PPL’s fair value analysis:

		Weighted
		Fair Value
Approach	Weighting	(in billions)
Talen Energy Market Value	50%	$	1.4
Income/Discounted Cash Flow	30%		1.1
Alternative Market (Comparable Company)	20%		0.7
Estimated Fair Value		$	3.2

Following are the components of Discontinued Operations in the Statements of Income for the periods ended September 30:

	Three Months				Nine Months
	2015		2014		2015		2014
Operating revenues			$	1,623	$	1,427	$	1,741
Operating expenses				1,429		1,328		1,593
Other Income (Expense) - net				8		(22)		6
Interest Expense (a)				47		150		145
Income (loss) before income taxes				155		(73)		9
Income tax expense (benefit)	$	3		68		(37)		(4)
Loss on spinoff						(879)
Income (Loss) from Discontinued Operations (net of income taxes)	$	(3)	$	87	$	(915)	$	13

(a)Includes interest associated with the Supply Segment with no additional allocation as the Supply segment was sufficiently capitalized.

The following major classes of assets and liabilities were distributed and removed from PPL's Balance Sheeton June 1, 2015. Additionally, the following major classes of assets and liabilities were reclassified to discontinued operations as of December 31, 2014:

			Discontinued
	Distribution on		Operations at
	June 1,		December 31,
	2015		2014
Cash and cash equivalents (a)	$	371	$	352
Restricted cash and cash equivalents		156		176
Accounts receivable and unbilled revenues		325		504
Fuels, materials and supplies		415		455
Price risk management assets		784		1,079
Other current assets		65		34
Total Current Assets		2,116		2,600
Investments		999		980
PP&E, net		6,384		6,428
Goodwill		338		338
Other intangibles		260		257
Price risk management assets		244		239
Other noncurrent assets		78		75
Total Noncurrent Assets		8,303		8,317
Total assets	$	10,419	$	10,917
Short-term debt and long-term debt due within one year	$	885	$	1,165
Accounts payable		252		361
Price risk management liabilities		763		1,024
Other current liabilities		229		225
Total Current Liabilities		2,129		2,775
Long-term debt (excluding current portion)		1,932		1,683
Deferred income taxes		1,259		1,223
Price risk management liabilities		206		193
Accrued pension obligations		244		299
Asset retirement obligations		443		415
Other deferred credits and noncurrent liabilities		103		150
Total Noncurrent Liabilities		4,187		3,963
Total liabilities	$	6,316	$	6,738
Adjustment for loss on spinoff		879
Net assets distributed	$	3,224

(a)The distribution of PPL Energy Supply’s cash and cash equivalents at June 1, 2015 is included in "Net cash provided by (used in) financing activities - discontinued operations" on the Statement of Cash Flows for the nine months ended September 30, 2015.