Income Taxes (Tables)

3 Months Ended

Mar. 31, 2018

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



(PPL)
	Three Months
	2018			2017
Federal income tax on Income Before Income Taxes at statutory tax rate (a)	$	119		$	186
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	15			13
Valuation allowance adjustments	7			5
Impact of lower U.K. income tax rates relative to U.S. income tax rates (a)	(7		)	(48		)
U.S. income tax on foreign earnings - net of foreign tax credit (a) (b)	1			(9		)
Impact of the U.K. Finance Acts	(1		)	(3		)
Depreciation and other items not normalized (a)	(12		)	(3		)
Interest benefit on U.K. financing entities	(5		)	(4		)
Stock-based compensation	1			(3		)
Other	(1		)	(5		)
Total increase (decrease)	(2		)	(57		)
Total income taxes	$	117		$	129


(a)	The U.S. federal corporate income tax rate was reduced from 35% to 21%, as enacted by the TCJA, effective January 1, 2018.


(b)	Lower income taxes in 2017 primarily due to the tax benefit of accelerated pension contributions made in the first quarter of 2017. The related tax benefit was recognized over the annual period as a result of utilizing an estimated annual effective tax rate.



(PPL Electric)
	Three Months
	2018			2017
Federal income tax on Income Before Income Taxes at statutory tax rate (a)	$	41		$	44
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	15			8
Depreciation and other items not normalized (a)	(7		)	(2		)
Stock-based compensation	—			(2		)
Total increase (decrease)	8			4
Total income taxes	$	49		$	48

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



(PPL Electric)
	Three Months
	2018			2017
Federal income tax on Income Before Income Taxes at statutory tax rate (a)	$	41		$	44
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	15			8
Depreciation and other items not normalized (a)	(7		)	(2		)
Stock-based compensation	—			(2		)
Other	—			—
Total increase (decrease)	8			4
Total income taxes	$	49		$	48


(a)	The U.S. federal corporate income tax rate was reduced from 35% to 21%, as enacted by the TCJA, effective January 1, 2018.

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



(LKE)
	Three Months
	2018			2017
Federal income tax on Income Before Income Taxes at statutory tax rate (a)	$	38		$	58
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	8			6
Amortization of investment tax credit	—			—
Stock-based compensation	—			—
Other	(2		)	(1		)
Total increase (decrease)	1			5
Total income taxes	$	39		$	63


(a)	The U.S. federal corporate income tax rate was reduced from 35% to 21%, as enacted by the TCJA, effective January 1, 2018.

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



(LG&E)
	Three Months
	2018			2017
Federal income tax on Income Before Income Taxes at statutory tax rate (a)	$	20		$	30
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	4			3
Other	(1		)	—
Total increase (decrease)	1			3
Total income taxes	$	21		$	33


(a)	The U.S. federal corporate income tax rate was reduced from 35% to 21%, as enacted by the TCJA, effective January 1, 2018.

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



(KU)
	Three Months
	2018			2017
Federal income tax on Income Before Income Taxes at statutory tax rate (a)	$	23		$	36
Increase (decrease) due to:
State income taxes, net of federal income tax benefit	5			4
Other	(1		)	(1		)
Total increase (decrease)	1			3
Total income taxes	$	24		$	39


(a)	The U.S. federal corporate income tax rate was reduced from 35% to 21%, as enacted by the TCJA, effective January 1, 2018.