XML 49 R36.htm IDEA: XBRL DOCUMENT

Acquisitions, Development and Divestures (Tables)

6 Months Ended

Jun. 30, 2012

Acquisitions, Development and Divestitures [Line Items]

Purchase Price and Related Purchase Price Allocation

The consideration paid for this acquisition, subject to finalization of working capital, net indebtedness and fair value adjustments, was as follows.

Aggregate enterprise consideration	$	326
Less: Estimated fair value of long-term debt outstanding assumed through consolidation (a)		258
Plus: Restricted cash debt service reserves		17
Cash consideration paid for equity interests (including estimated working capital adjustments)	$	85

(a) The estimated long-term debt assumed through consolidation consisted of $226 million aggregate principal amount of 8.857% senior secured bonds to be fully repaid by 2025, plus $8 million of debt service reserve loans, and a $24 million estimated fair value adjustment.

Preliminary Purchase Price Allocation

The following table summarizes the preliminary allocation of the purchase price to the estimated fair value of the major classes of assets acquired and liabilities assumed through consolidation, and the effective settlement of the tolling agreement through consolidation.

PP&E	$	505
Long-term debt (current and noncurrent) (a)		(258)
Tolling agreement assets eliminated (b)		(170)
Other net assets		8
Net identifiable assets acquired (c)	$	85

(a) Represents non-cash activity excluded from the Statement of Cash Flows for the six months ended June 30, 2012.

(b) Represents PPL EnergyPlus' existing assets, primarily an intangible asset, which represented PPL EnergyPlus' rights to and the related accounting for the tolling agreement with PPL Ironwood, LLC prior to the acquisition. On the acquisition date, PPL Ironwood, LLC recorded a liability, recognized at estimated fair value, for its obligation to PPL EnergyPlus. The tolling agreement assets of PPL EnergyPlus and the tolling agreement liability of PPL Ironwood, LLC eliminate in consolidation for PPL and PPL Energy Supply as a result of the acquisition, and therefore the agreement is considered effectively settled. Any difference between the tolling agreement assets and liability will result in a gain or loss on the effective settlement of the agreement. That amount is currently estimated to be insignificant.

Carrying Amount of Accrued Severance

The changes in the carrying amounts of accrued severance for the periods ended June 30, 2012 was as follows:

Pro-forma Information

The pro forma operating revenues and net income attributable to PPL for the periods ended June 30, 2011, which includes WPD Midlands as if the acquisition had occurred January 1, 2010, are as follows.

	Three Months		Six Months

Operating Revenues - PPL consolidated pro forma	$	2,587	$	5,802
Net Income Attributable to PPL - PPL consolidated pro forma		288		814

Nonrecurring Adjustments to Pro-forma Information

Nonrecurring adjustments for the periods ended June 30, 2011 include the following pre-tax credits (expenses):

	Income Statement
	Line Item	Three Months		Six Months

2011 Bridge Facility costs	Interest Expense	$	(36)	$	(43)
Foreign currency loss on 2011 Bridge Facility	Other Income (Expense) - net		(58)		(58)
Net hedge gains associated with the 2011 Bridge Facility	Other Income (Expense) - net		63		56
Hedge ineffectiveness	Interest Expense		(12)		(12)
U.K. stamp duty tax	Other Income (Expense) - net		(21)		(21)
Other acquisition-related adjustments	(a)		(42)		(52)

(a) Primarily includes advisory, accounting and legal fees recorded to "Other Income (Expense) - net" and certain separation benefits recognized during the second quarter of 2011 as noted above recorded in "Other operation and maintenance" on the Statement of Income.

PPL Energy Supply LLC [Member]

Acquisitions, Development and Divestitures [Line Items]

Purchase Price and Related Purchase Price Allocation

The consideration paid for this acquisition, subject to finalization of working capital, net indebtedness and fair value adjustments, was as follows.

Aggregate enterprise consideration	$	326
Less: Estimated fair value of long-term debt outstanding assumed through consolidation (a)		258
Plus: Restricted cash debt service reserves		17
Cash consideration paid for equity interests (including estimated working capital adjustments)	$	85

Preliminary Purchase Price Allocation

PP&E	$	505
Long-term debt (current and noncurrent) (a)		(258)
Tolling agreement assets eliminated (b)		(170)
Other net assets		8
Net identifiable assets acquired (c)	$	85

(a) Represents non-cash activity excluded from the Statement of Cash Flows for the six months ended June 30, 2012.

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References+ Details

- Definition

Tabular disclosure of an entity's restructuring reserve that occurred during the period associated with the exit from or disposal of business activities or restructurings for each major type of cost. This element may also include a description of any reversal and other adjustment made during the period to the amount of an accrued liability for restructuring activities. This element may be used to encapsulate the roll forward presentations of an entity's restructuring reserve by type of cost and in total, and explanation of changes that occurred in the period.

+ References+ Details

Three Months

Six Months

Accrued severance at the beginning of period

Severance compensation

Severance paid

Accrued severance at the end of period