Income Taxes

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

5. Income Taxes

Reconciliations of income taxes for the periods ended March 31 are as follows.

(PPL)
	Three Months
	2017			2016
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	186		$	231
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	13			13
Valuation allowance adjustments	5			6
Impact of lower U.K. income tax rates	(48		)	(54		)
U.S. income tax on foreign earnings - net of foreign tax credit	(9		)	(2		)
Impact of the U.K. Finance Acts	(3		)	—
Depreciation not normalized	(3		)	(1		)
Interest benefit on U.K. financing entities	(4		)	(5		)
Stock-based compensation	(3		)	(8		)
Other	(5		)	(1		)
Total increase (decrease)	(57		)	(52		)
Total income taxes	$	129		$	179

(PPL Electric)
	Three Months
	2017			2016
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	44		$	53
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	8			9
Depreciation not normalized	(2		)	(1		)
Stock-based compensation	(2		)	(5		)
Total increase (decrease)	4			3
Total income taxes	$	48		$	56

(LKE)
	Three Months
	2017			2016
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	58		$	67
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	6			7
Other	(1		)	(2		)
Total increase (decrease)	5			5
Total income taxes	$	63		$	72

(LG&E)
	Three Months
	2017		2016
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	30	$	32
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	3		3
Total increase (decrease)	3		3
Total income taxes	$	33	$	35

(KU)
	Three Months
	2017			2016
Federal income tax on Income Before Income Taxes at statutory tax rate - 35%	$	36		$	42
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	4			4
Other	(1		)	—
Total increase (decrease)	3			4
Total income taxes	$	39		$	46