Acquisitions, Development and Divestitures (Tables)

9 Months Ended

Sep. 30, 2021

Disposal Group, Including Discontinued Operation, Income Statement Line Items

Following are the components of discontinued operations in the Statements of Income for the periods ended September 30:


	Three Months				Nine Months
	2021		2020		2021		2020
Operating Revenues	$	—	$	485	$	1,344	$	1,575
Operating Expenses	—		235		466		684
Other Income (Expense) - net	—		46		202		242
Interest Expense (a)	—		88		209		271
Income before income taxes	—		208		871		862
Gain (Loss) on sale	—		—		(1,609)		—
Income taxes	2		44		752		157
Income (Loss) from Discontinued Operations (net of income taxes)	$	(2)	$	164	$	(1,490)	$	705

(a)No interest from corporate level debt was allocated to discontinued operations.

Disposal Group, Including Discontinued Operation, Assets and Liabilities

The following major classes of assets and liabilities of the U.K. utility business were reclassified on PPL's Balance Sheet to "Current assets held for sale" and "Current liabilities held for sale" as of December 31, 2020:


	Held for Sale at December 31, 2020
Cash and cash equivalents	$	266
Accounts receivable and unbilled revenues	389
Price risk management assets	146
Property, plant and equipment, net (a)	14,392
Goodwill	2,558
Other intangibles	413
Pension benefit asset	682
Other assets	137
Total Assets	$	18,983

Short-term debt and long-term debt due within one year	$	994
Accounts payable	220
Customer deposits	217
Accrued interest	190

Long-term debt	7,938
Total deferred income taxes	1,032
Price risk management liabilities	137
Other deferred credits and liabilities	295
Total Liabilities	$	11,023

Net assets (b)	$	7,960

(a)Depreciation of fixed assets ceased upon classification as held for sale in the first quarter of 2021.

(b)The net assets and liabilities held for sale exclude $4.0 billion of AOCI related to the U.K. utility business that are required to be included in the carrying value of an entity classified as held for sale when assessing impairment and determining the gain or loss on sale. Prior to the sale, AOCI related to the U.K. utility business was reported as a component of PPL’s equity.

Disposal Group, Including Discontinued Operation, Components of Gain (loss) on Sale

The following table summarizes the pre-tax loss recorded upon completion of the sale.


	Loss on sale for the nine month period ended September 30, 2021
Sales proceeds, net of realized foreign currency hedge losses (a)	$	10,732
Unrealized foreign currency hedge losses recognized in 2020	125
Less: Costs to sell (b)	69
Less: Carrying value (c)	12,397
Loss on sale	$	(1,609)

(a)Includes the fixed and additional consideration of £7,881 million specified in the WPD SPA, converted at a spot rate of $1.4107 per GBP, offset by $386 million of realized foreign currency hedge losses to hedge the proceeds from the sale.

(b)Includes bank advisory, legal and accounting fees to facilitate the transaction.

(c)Represents the carrying value of the U.K. utility business at the time of sale and includes the realization of AOCI of $3.6 billion, which arose primarily from currency translation adjustments and defined benefit plans associated with the U.K. utility business.