17. Other Income (Expense) - net | | | | | | | | | | | | | (PPL, PPL Energy Supply, PPL Electric, LKE, LG&E and KU) | | | | | | | | | | | | | The breakdown of "Other Income (Expense) - net" for the years ended December 31 was: | | | | | | | | | | | | | | | | | PPL | | | | | 2012 | | 2011 | | 2010 | Other Income | | | | | | | | | | | Earnings on securities in NDT funds | | $ | 22 | | $ | 24 | | $ | 20 | | Interest income | | | 5 | | | 7 | | | 8 | | AFUDC - equity component | | | 10 | | | 7 | | | 5 | | Net hedge gains associated with the 2011 Bridge Facility (a) | | | | | | 55 | | | | | Earnings (losses) from equity method investments | | | (8) | | | 1 | | | 2 | | Gain on redemption of debt (b) | | | | | | 22 | | | | | Miscellaneous - Domestic | | | 11 | | | 10 | | | 3 | | Miscellaneous - U.K. | | | 2 | | | 1 | | | 1 | | Total Other Income | | | 42 | | | 127 | | | 39 | Other Expense | | | | | | | | | | | Economic foreign currency exchange contracts (Note 19) | | | 52 | | | (10) | | | (3) | | Charitable contributions | | | 10 | | | 9 | | | 4 | | Cash flow hedges (c) | | | | | | | | | 29 | | LKE acquisition-related costs (Note 10) | | | | | | | | | 31 | | WPD Midlands acquisition-related costs (Note 10) | | | | | | 34 | | | | | Foreign currency loss on 2011 Bridge Facility (d) | | | | | | 57 | | | | | U.K. stamp duty tax (Note 10) | | | | | | 21 | | | | | Miscellaneous - Domestic | | | 16 | | | 9 | | | 7 | | Miscellaneous - U.K. | | | 3 | | | 3 | | | 2 | | Total Other Expense | | | 81 | | | 123 | | | 70 | Other Income (Expense) - net | | $ | (39) | | $ | 4 | | $ | (31) |
| | | | Successor | | | Predecessor | | | | | | | | | Two Months | | | Ten Months | | | | | Year Ended | | Year Ended | | Ended | | | Ended | | | | | December 31, | | December 31, | | December 31, | | | October 31, | | | | | 2012 | | 2011 | | 2010 | | | 2010 | LKE | | | | | | | | | | | | | | Other Income | | | | | | | | | | | | | | | Net derivative gains (losses) | | | | | | | | | | | | $ | 19 | | Interest income | | | | | $ | 1 | | | | | | | | | Earnings (losses) from equity method investments | | $ | (8) | | | 1 | | | | | | | 3 | | Life insurance | | | 1 | | | | | | | | | | 2 | | Miscellaneous | | | 3 | | | 2 | | | | | | | 1 | | Total Other Income | | | (4) | | | 4 | | | | | | | 25 | Other Expense | | | | | | | | | | | | | | | Charitable contributions | | | 4 | | | 4 | | $ | 1 | | | | 5 | | Joint-use-asset depreciation | | | | | | | | | | | | | 3 | | Miscellaneous | | | 7 | | | 1 | | | 1 | | | | 3 | | Total Other Expense | | | 11 | | | 5 | | | 2 | | | | 11 | Other Income (Expense) - net | | $ | (15) | | $ | (1) | | $ | (2) | | | $ | 14 | | | | | | | | | | | | | | | | | LG&E | | | | | | | | | | | | | | Other Income | | | | | | | | | | | | | | | Net derivative gains (losses) | | | | | | | | | | | | $ | 19 | | Miscellaneous | | $ | 1 | | | | | | | | | | 1 | | Total Other Income | | | 1 | | | | | | | | | | 20 | Other Expense | | | | | | | | | | | | | | | Charitable contributions | | | 2 | | $ | 1 | | | | | | | 2 | | Miscellaneous | | | 2 | | | 1 | | $ | 3 | | | | 1 | | Total Other Expense | | | 4 | | | 2 | | | 3 | | | | 3 | Other Income (Expense) - net | | $ | (3) | | $ | (2) | | $ | (3) | | | $ | 17 | | | | | | | | | | | | | | | | | KU | | | | | | | | | | | | | | Other Income | | | | | | | | | | | | | | | Earnings (losses) from equity method investments | | $ | (8) | | $ | 1 | | | | | | $ | 3 | | Life insurance | | | 1 | | | | | | | | | | 2 | | Miscellaneous | | | 1 | | | | | | | | | | 1 | | Total Other Income | | | (6) | | | 1 | | | | | | | 6 | Other Expense | | | | | | | | | | | | | | | Charitable contributions | | | 1 | | | 1 | | | | | | | 1 | | Joint-use-asset depreciation | | | | | | | | | | | | | 3 | | Miscellaneous | | | 1 | | | 1 | | | | | | | 1 | | Total Other Expense | | | 2 | | | 2 | | | | | | | 5 | Other Income (Expense) - net | | $ | (8) | | $ | (1) | | | | | | $ | 1 |
(a) Represents a gain on foreign currency contracts that hedged the repayment of the 2011 Bridge Facility borrowing. (b) In July 2011, as a result of PPL Electric's redemption of 7.125% Senior Secured Bonds due 2013, PPL recorded a gain on the accelerated amortization of the fair value adjustment to the debt recorded in connection with previously settled fair value hedges. (c) Represents losses reclassified from AOCI into earnings associated with discontinued hedges at PPL for debt that had been planned to be issued by PPL Energy Supply. As a result of the expected net proceeds from the sale of certain non-core generation facilities, coupled with the monetization of full-requirement sales contracts, the debt issuance was no longer needed. (d) Represents a foreign currency loss related to the repayment of the 2011 Bridge Facility borrowing. |