Commission File Number | Registrant; State of Incorporation; Address and Telephone Number | IRS Employer Identification No. |
1-11459 | PPL Corporation (Exact name of Registrant as specified in its charter) (Pennsylvania) Two North Ninth Street Allentown, PA 18101-1179 (610) 774-5151 | 23-2758192 |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits | ||||
99.1 - | Press Release, dated February 1, 2017, announcing PPL’s financial results for the year ended December 31, 2016 and other business matters. | ||||
PPL CORPORATION | |||
By: | /s/ Stephen K. Breininger | ||
Stephen K. Breininger Vice President and Controller |
Exhibit 99.1 | ||
news release | ||
www.pplnewsroom.com | ||
Contacts: | For news media: Ryan Hill, 610-774-5997 For financial analysts: Lisa Pammer, 610-774-3316 |
• | Exceeds high end of 2016 reported earnings forecast range. |
• | Delivers 2016 earnings from ongoing operations at high end of forecast range, representing 11 percent year-over-year growth and seventh straight year above forecasted midpoint. |
• | Reaffirms 2017 forecast and expectation for 5 to 6 percent compound annual earnings growth from 2017 to 2020. |
• | Increases annualized common stock dividend 4 percent to $1.58 per share. |
(Dollars in millions, except for per share amounts) | 4th Quarter | Year | |||||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||||||||||||
Reported earnings | $ | 465 | $ | 399 | 17 | % | $ | 1,902 | $ | 682 | 179 | % | |||||||||
Reported earnings per share | $ | 0.68 | $ | 0.59 | 15 | % | $ | 2.79 | $ | 1.01 | 176 | % | |||||||||
4th Quarter | Year | ||||||||||||||||||||
2016 | 2015 | % Change | 2016 | 2015 | % Change | ||||||||||||||||
Earnings from ongoing operations | $ | 409 | $ | 294 | 39 | % | $ | 1,674 | $ | 1,489 | 12 | % | |||||||||
Earnings from ongoing operations per share | $ | 0.60 | $ | 0.43 | 40 | % | $ | 2.45 | $ | 2.21 | 11 | % |
4th Quarter | Year | ||||||||||||||
Per share | 2016 | 2015 | 2016 | 2015 | |||||||||||
Reported Earnings | |||||||||||||||
U.K. Regulated | $ | 0.48 | $ | 0.45 | $ | 1.83 | $ | 1.66 | |||||||
Kentucky Regulated | 0.12 | 0.09 | 0.58 | 0.48 | |||||||||||
Pennsylvania Regulated | 0.11 | 0.09 | 0.50 | 0.37 | |||||||||||
Corporate & Other | (0.03 | ) | (0.03 | ) | (0.12 | ) | (0.14 | ) | |||||||
Former Supply/Discontinued Operations | — | (0.01 | ) | — | (1.36 | ) | |||||||||
Total | $ | 0.68 | $ | 0.59 | $ | 2.79 | $ | 1.01 |
4th Quarter | Year | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Special items benefit (expense) | |||||||||||||||
U.K. Regulated | $ | 0.08 | $ | 0.16 | $ | 0.34 | $ | 0.22 | |||||||
Kentucky Regulated | — | — | — | (0.03 | ) | ||||||||||
Pennsylvania Regulated | — | — | — | — | |||||||||||
Corporate & Other | — | 0.01 | — | (0.03 | ) | ||||||||||
Former Supply/Discontinued Operations | — | (0.01 | ) | — | (1.36 | ) | |||||||||
Total Special Items | $ | 0.08 | $ | 0.16 | $ | 0.34 | $ | (1.20 | ) |
4th Quarter | Year | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Earnings from Ongoing Operations | |||||||||||||||
U.K. Regulated | $ | 0.40 | $ | 0.29 | $ | 1.49 | $ | 1.44 | |||||||
Kentucky Regulated | 0.12 | 0.09 | 0.58 | 0.51 | |||||||||||
Pennsylvania Regulated | 0.11 | 0.09 | 0.50 | 0.37 | |||||||||||
Corporate and Other | (0.03 | ) | (0.04 | ) | (0.12 | ) | (0.11 | ) | |||||||
Total | $ | 0.60 | $ | 0.43 | $ | 2.45 | $ | 2.21 |
Reported Earnings | Earnings from Ongoing Operations | ||||||||||||||
2017 forecast midpoint | 2016 actual | 2017 forecast midpoint | 2016 actual | ||||||||||||
Per share | |||||||||||||||
U.K. Regulated | $ | 1.18 | $ | 1.83 | $ | 1.18 | $ | 1.49 | |||||||
Kentucky Regulated | 0.58 | 0.58 | 0.58 | 0.58 | |||||||||||
Pennsylvania Regulated | 0.50 | 0.50 | 0.50 | 0.50 | |||||||||||
Corporate and Other | (0.11 | ) | (0.12 | ) | (0.11 | ) | (0.12 | ) | |||||||
Total | $ | 2.15 | $ | 2.79 | $ | 2.15 | $ | 2.45 |
• | Unrealized gains or losses on foreign currency-related economic hedges (as discussed below). |
• | Supply segment discontinued operations. |
• | Gains and losses on sales of assets not in the ordinary course of business. |
• | Impairment charges. |
• | Workforce reduction and other restructuring effects. |
• | Acquisition and divestiture-related adjustments. |
• | Other charges or credits that are, in management's view, non-recurring or otherwise not reflective of the company's ongoing operations. |
PPL CORPORATION AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED FINANCIAL INFORMATION (1) | |||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||
(Millions of Dollars) | |||||||
December 31, | December 31, | ||||||
2016 | 2015 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 341 | $ | 836 | |||
Accounts receivable | 712 | 732 | |||||
Unbilled revenues | 480 | 453 | |||||
Fuel, materials and supplies | 356 | 357 | |||||
Current price risk management assets | 63 | 139 | |||||
Other current assets | 115 | 129 | |||||
Property, Plant and Equipment | |||||||
Regulated utility plant | 34,674 | 34,399 | |||||
Less: Accumulated depreciation - regulated utility plant | 6,013 | 5,683 | |||||
Regulated utility plant, net | 28,661 | 28,716 | |||||
Non-regulated property, plant and equipment | 413 | 516 | |||||
Less: Accumulated depreciation - non-regulated property, plant and equipment | 134 | 165 | |||||
Non-regulated property, plant and equipment, net | 279 | 351 | |||||
Construction work in progress | 1,134 | 1,315 | |||||
Property, Plant and Equipment, net | 30,074 | 30,382 | |||||
Noncurrent regulatory assets | 1,918 | 1,733 | |||||
Goodwill and other intangibles | 3,760 | 4,229 | |||||
Noncurrent price risk management assets | 336 | 156 | |||||
Other noncurrent assets | 160 | 155 | |||||
Total Assets | $ | 38,315 | $ | 39,301 | |||
Liabilities and Equity | |||||||
Short-term debt | $ | 923 | $ | 916 | |||
Long-term debt due within one year | 518 | 485 | |||||
Accounts payable | 820 | 812 | |||||
Other current liabilities | 1,576 | 1,663 | |||||
Long-term debt | 17,808 | 18,563 | |||||
Deferred income taxes and investment tax credits | 4,021 | 3,568 | |||||
Accrued pension obligations | 1,001 | 1,405 | |||||
Asset retirement obligations | 428 | 536 | |||||
Noncurrent regulatory liabilities | 899 | 945 | |||||
Other noncurrent liabilities | 422 | 489 | |||||
Common stock and additional paid-in capital | 9,848 | 9,694 | |||||
Earnings reinvested | 3,829 | 2,953 | |||||
Accumulated other comprehensive loss | (3,778 | ) | (2,728 | ) | |||
Total Liabilities and Equity | $ | 38,315 | $ | 39,301 |
(1) | The Financial Statements in this news release have been condensed and summarized for purposes of this presentation. Please refer to PPL Corporation's periodic filings with the Securities and Exchange Commission for full financial statements, including note disclosure. |
PPL CORPORATION AND SUBSIDIARIES | |||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | |||||||||||||||
(Millions of Dollars, except share data) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating Revenues | $ | 1,832 | $ | 1,780 | $ | 7,517 | $ | 7,669 | |||||||
Operating Expenses | |||||||||||||||
Operation | |||||||||||||||
Fuel | 184 | 168 | 791 | 863 | |||||||||||
Energy purchases | 175 | 179 | 706 | 855 | |||||||||||
Other operation and maintenance | 453 | 533 | 1,745 | 1,938 | |||||||||||
Depreciation | 234 | 225 | 926 | 883 | |||||||||||
Taxes, other than income | 72 | 58 | 301 | 299 | |||||||||||
Total Operating Expenses | 1,118 | 1,163 | 4,469 | 4,838 | |||||||||||
Operating Income | 714 | 617 | 3,048 | 2,831 | |||||||||||
Other Income (Expense) - net | 106 | 47 | 390 | 108 | |||||||||||
Interest Expense | 217 | 226 | 888 | 871 | |||||||||||
Income from Continuing Operations Before Income Taxes | 603 | 438 | 2,550 | 2,068 | |||||||||||
Income Taxes | 138 | 33 | 648 | 465 | |||||||||||
Income from Continuing Operations After Income Taxes | 465 | 405 | 1,902 | 1,603 | |||||||||||
Income (Loss) from Discontinued Operations (net of income taxes) | — | (6 | ) | — | (921 | ) | |||||||||
Net Income | $ | 465 | $ | 399 | $ | 1,902 | $ | 682 | |||||||
Earnings Per Share of Common Stock: | |||||||||||||||
Income from Continuing Operations After Income Taxes Available to PPL Common Shareowners: | |||||||||||||||
Basic | $ | 0.68 | $ | 0.60 | $ | 2.80 | $ | 2.38 | |||||||
Diluted | $ | 0.68 | $ | 0.60 | $ | 2.79 | $ | 2.37 | |||||||
Net Income Available to PPL Common Shareowners: | |||||||||||||||
Basic | $ | 0.68 | $ | 0.59 | $ | 2.80 | $ | 1.01 | |||||||
Diluted | $ | 0.68 | $ | 0.59 | $ | 2.79 | $ | 1.01 | |||||||
Weighted-Average Shares of Common Stock Outstanding (in thousands) | |||||||||||||||
Basic | 679,641 | 673,028 | 677,592 | 669,814 | |||||||||||
Diluted | 681,863 | 676,548 | 680,446 | 672,586 |
PPL CORPORATION AND SUBSIDIARIES | |||||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||||||
(Millions of Dollars) | |||||||||||
2016 | 2015 | 2014 | |||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | $ | 1,902 | $ | 682 | $ | 1,737 | |||||
Loss (income) from discontinued operations (net of income taxes) | — | 921 | (300 | ) | |||||||
Income from continuing operations (net of income taxes) | 1,902 | 1,603 | 1,437 | ||||||||
Adjustments to reconcile Income from continuing operations (net of taxes) to net cash provided by operating activities - continuing operations | |||||||||||
Depreciation | 926 | 883 | 923 | ||||||||
Amortization | 80 | 59 | 65 | ||||||||
Defined benefit plans - expense (income) | (40 | ) | 56 | 48 | |||||||
Deferred income taxes and investment tax credits | 560 | 428 | 666 | ||||||||
Unrealized (gains) losses on derivatives, and other hedging activities | 19 | (77 | ) | (187 | ) | ||||||
Adjustment to WPD line loss accrual | — | — | 65 | ||||||||
Other | 16 | 17 | 66 | ||||||||
Change in current assets and current liabilities | |||||||||||
Accounts receivable | (15 | ) | 47 | (123 | ) | ||||||
Accounts payable | 57 | (116 | ) | 40 | |||||||
Taxes payable | 31 | (175 | ) | 161 | |||||||
Unbilled revenues | (63 | ) | 54 | 22 | |||||||
Prepayments | (4 | ) | (23 | ) | 87 | ||||||
Regulatory assets and liabilities, net | (59 | ) | 42 | (7 | ) | ||||||
Other | (31 | ) | 40 | 30 | |||||||
Other operating activities | |||||||||||
Defined benefit plans - funding | (427 | ) | (499 | ) | (384 | ) | |||||
Settlement of interest rate swaps | (9 | ) | (101 | ) | — | ||||||
Other | (53 | ) | 34 | 32 | |||||||
Net cash provided by operating activities - continuing operations | 2,890 | 2,272 | 2,941 | ||||||||
Net cash provided by operating activities - discontinued operations | — | 343 | 462 | ||||||||
Net cash provided by operating activities | 2,890 | 2,615 | 3,403 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Expenditures for property, plant and equipment | (2,920 | ) | (3,533 | ) | (3,674 | ) | |||||
Expenditures for intangible assets | (37 | ) | (37 | ) | (49 | ) | |||||
Purchases of other investments | — | — | (120 | ) | |||||||
Proceeds from the sale of other investments | 2 | 136 | — | ||||||||
Other investing activities | 37 | (5 | ) | 17 | |||||||
Net cash provided by (used in) investing activities - continuing operations | (2,918 | ) | (3,439 | ) | (3,826 | ) | |||||
Net cash provided by (used in) investing activities - discontinued operations | — | (149 | ) | 497 | |||||||
Net cash used in investing activities | (2,918 | ) | (3,588 | ) | (3,329 | ) | |||||
Cash Flows from Financing Activities | |||||||||||
Issuance of long-term debt | 1,342 | 2,236 | 296 | ||||||||
Retirement of long-term debt | (930 | ) | (1,000 | ) | (237 | ) | |||||
Settlement of cross-currency swaps | 46 | — | — | ||||||||
Issuance of common stock | 144 | 203 | 1,074 | ||||||||
Payment of common stock dividends | (1,030 | ) | (1,004 | ) | (967 | ) | |||||
Net increase in short-term debt | 29 | 94 | 147 | ||||||||
Other financing activities | (40 | ) | (47 | ) | (51 | ) | |||||
Net cash provided by (used in) financing activities - continuing operations | (439 | ) | 482 | 262 | |||||||
Net cash provided by (used in) financing activities - discontinued operations | — | (546 | ) | (846 | ) | ||||||
Net cash distributions to parent from discontinued operations | — | 132 | 1,167 | ||||||||
Net cash provided by (used in) financing activities | (439 | ) | 68 | 583 | |||||||
Effect of Exchange Rates on Cash and Cash Equivalents | (28 | ) | (10 | ) | (8 | ) | |||||
Net (Increase) Decrease in Cash and Cash Equivalents included in Discontinued Operations | — | 352 | (113 | ) | |||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (495 | ) | (563 | ) | 536 | ||||||
Cash and Cash Equivalents at Beginning of Period | 836 | 1,399 | 863 | ||||||||
Cash and Cash Equivalents at End of Period | $ | 341 | $ | 836 | $ | 1,399 |
Key Indicators (Unaudited) | |||||||
12 Months Ended December 31, | |||||||
Financial | 2016 | 2015 | |||||
Dividends declared per share of common stock | $ | 1.52 | $ | 1.50 | |||
Book value per share (1)(2) | $ | 14.56 | $ | 14.72 | |||
Market price per share (1) | $ | 34.05 | $ | 34.13 | |||
Dividend yield | 4.5 | % | 4.4 | % | |||
Dividend payout ratio (3)(4) | 54.5 | % | 148.5 | % | |||
Dividend payout ratio - earnings from ongoing operations (3)(5) | 62.0 | % | 67.9 | % | |||
Price/earnings ratio (3)(4) | 12.2 | 33.8 | |||||
Price/earnings ratio - earnings from ongoing operations (3)(5) | 13.9 | 15.4 | |||||
Return on common equity (4) | 19.2 | % | 5.8 | % | |||
Return on common equity - earnings from ongoing operations (5)(6) | 16.9 | % | 15.2 | % | |||
Spot rate of U.S. Dollar per British pound sterling for Balance Sheet translation (7) | $ | 1.25 | $ | 1.51 | |||
Average rate of U.S. Dollar per British pound sterling for Statement of Income translation (8) | $ | 1.45 | $ | 1.57 |
(1) | End of period. |
(2) | Based on 679,731 and 673,857 shares of common stock outstanding (in thousands) at December 31, 2016, and December 31, 2015. |
(3) | Based on diluted earnings per share. |
(4) | 2015 includes the impact of the $879 million loss on the spinoff of the Supply segment, reflecting the difference between PPL's recorded value for the Supply segment and the estimated fair value determined in accordance with applicable accounting rules under GAAP. 2015 also includes five months of Supply segment earnings. |
(5) | Calculated using earnings from ongoing operations, which is a non-GAAP financial measure that includes adjustments described in the text and tables of this news release. |
(6) | 2015 was adjusted to exclude the equity of PPL Energy Supply, LLC as that business was spun off in 2015. |
(7) | As of November 30, 2016 and 2015 as WPD is consolidated on a one-month lag. |
(8) | Includes the impact of foreign exchange hedges as of November 30, 2016 and 2015 as WPD is consolidated on a one-month lag. |
Operating - Domestic & International Electricity Sales (Unaudited) | |||||||||||||||||
3 Months Ended December 31, | 12 Months Ended December 31, | ||||||||||||||||
Percent | Percent | ||||||||||||||||
(GWh) | 2016 | 2015 | Change | 2016 | 2015 | Change | |||||||||||
Domestic Retail Delivered | |||||||||||||||||
PPL Electric Utilities | 8,885 | 8,433 | 5.4 | % | 36,645 | 36,984 | (0.9 | )% | |||||||||
LKE | 7,184 | 6,830 | 5.2 | % | 30,829 | 30,814 | — | % | |||||||||
Total | 16,069 | 15,263 | 5.3 | % | 67,474 | 67,798 | (0.5 | )% | |||||||||
Domestic Retail Supplied | |||||||||||||||||
LKE (1) | 7,184 | 6,830 | 5.2 | % | 30,829 | 30,814 | — | % | |||||||||
International Delivered | |||||||||||||||||
United Kingdom | 18,758 | 18,785 | (0.1 | )% | 74,728 | 75,907 | (1.6 | )% | |||||||||
Domestic Wholesale | |||||||||||||||||
LKE (2) | 581 | 452 | 28.5 | % | 2,177 | 2,241 | (2.9 | )% |
(1) | Represents GWh supplied by LKE to retail customers in Kentucky, Virginia and Tennessee. |
(2) | Represents FERC-regulated municipal and unregulated off-system sales. |
Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations | |||||||||||||||||||
(After-Tax) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
4th Quarter 2016 | (millions of dollars) | ||||||||||||||||||
U.K. | KY | PA | Corp. | ||||||||||||||||
Reg. | Reg. | Reg. | & Other | Total | |||||||||||||||
Reported Earnings | $ | 331 | $ | 84 | $ | 75 | $ | (25 | ) | $ | 465 | ||||||||
Less: Special Items (expense) benefit: | |||||||||||||||||||
Foreign currency-related economic hedges, net of tax of ($31) | 57 | — | — | — | 57 | ||||||||||||||
Spinoff of the Supply segment, net of tax of $1 | — | — | — | (1 | ) | (1 | ) | ||||||||||||
Total Special Items | 57 | — | — | (1 | ) | 56 | |||||||||||||
Earnings from Ongoing Operations | $ | 274 | $ | 84 | $ | 75 | $ | (24 | ) | $ | 409 | ||||||||
(per share - diluted) | |||||||||||||||||||
U.K. | KY | PA | Corp. | ||||||||||||||||
Reg. | Reg. | Reg. | & Other | Total | |||||||||||||||
Reported Earnings | $ | 0.48 | $ | 0.12 | $ | 0.11 | $ | (0.03 | ) | $ | 0.68 | ||||||||
Less: Special Items (expense) benefit: | |||||||||||||||||||
Foreign currency-related economic hedges | 0.08 | — | — | — | 0.08 | ||||||||||||||
Total Special Items | 0.08 | — | — | — | 0.08 | ||||||||||||||
Earnings from Ongoing Operations | $ | 0.40 | $ | 0.12 | $ | 0.11 | $ | (0.03 | ) | $ | 0.60 |
Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations | |||||||||||||||||||
(After-Tax) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Year-to-Date December 31, 2016 | (millions of dollars) | ||||||||||||||||||
U.K. | KY | PA | Corp. | ||||||||||||||||
Reg. | Reg. | Reg. | & Other | Total | |||||||||||||||
Reported Earnings | $ | 1,246 | $ | 398 | $ | 338 | $ | (80 | ) | $ | 1,902 | ||||||||
Less: Special Items (expense) benefit: | |||||||||||||||||||
Foreign currency-related economic hedges, net of tax of $4 | (8 | ) | — | — | — | (8 | ) | ||||||||||||
Spinoff of the Supply segment, net of tax of $2 | — | — | — | (3 | ) | (3 | ) | ||||||||||||
Other: | |||||||||||||||||||
Settlement of foreign currency contracts, net of tax of ($108) | 202 | — | — | — | 202 | ||||||||||||||
Change in U.K. tax rate | 37 | — | — | — | 37 | ||||||||||||||
Total Special Items | 231 | — | — | (3 | ) | 228 | |||||||||||||
Earnings from Ongoing Operations | $ | 1,015 | $ | 398 | $ | 338 | $ | (77 | ) | $ | 1,674 | ||||||||
(per share - diluted) | |||||||||||||||||||
U.K. | KY | PA | Corp. | ||||||||||||||||
Reg. | Reg. | Reg. | & Other | Total | |||||||||||||||
Reported Earnings | $ | 1.83 | $ | 0.58 | $ | 0.50 | $ | (0.12 | ) | $ | 2.79 | ||||||||
Less: Special Items (expense) benefit: | |||||||||||||||||||
Foreign currency-related economic hedges | (0.01 | ) | — | — | — | (0.01 | ) | ||||||||||||
Other: | |||||||||||||||||||
Settlement of foreign currency contracts | 0.30 | — | — | — | 0.30 | ||||||||||||||
Change in U.K. tax rate | 0.05 | — | — | — | 0.05 | ||||||||||||||
Total Special Items | 0.34 | — | — | — | 0.34 | ||||||||||||||
Earnings from Ongoing Operations | $ | 1.49 | $ | 0.58 | $ | 0.50 | $ | (0.12 | ) | $ | 2.45 |
Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations | |||||||||||||||||||||||
(After-Tax) | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
4th Quarter 2015 | (millions of dollars) | ||||||||||||||||||||||
U.K. | KY | PA | Corp. | Disc. | |||||||||||||||||||
Reg. | Reg. | Reg. | & Other | Ops. | Total | ||||||||||||||||||
Reported Earnings | $ | 307 | $ | 59 | $ | 61 | $ | (23 | ) | $ | (5 | ) | $ | 399 | |||||||||
Less: Special Items (expense) benefit: | |||||||||||||||||||||||
Foreign currency-related economic hedges, net of tax of ($20) | 35 | — | — | — | — | 35 | |||||||||||||||||
Spinoff of the Supply segment: | |||||||||||||||||||||||
Discontinued operations, net of tax of ($7) | — | — | — | — | (5 | ) | (5 | ) | |||||||||||||||
Transition and transaction costs, net of tax of $6 | — | — | — | 4 | — | 4 | |||||||||||||||||
Employee transitional services, net of tax of $0 | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Separation benefits, net of tax of $1 | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||||
Other: | |||||||||||||||||||||||
Change in U.K. tax rate | 78 | — | — | — | — | 78 | |||||||||||||||||
Certain valuation allowances, net of tax of $0 | — | (4 | ) | — | — | — | (4 | ) | |||||||||||||||
Total Special Items | 113 | (4 | ) | — | 1 | (5 | ) | 105 | |||||||||||||||
Earnings from Ongoing Operations | $ | 194 | $ | 63 | $ | 61 | $ | (24 | ) | $ | — | $ | 294 |
(per share - diluted) | |||||||||||||||||||||||
U.K. | KY | PA | Corp. | Disc. | |||||||||||||||||||
Reg. | Reg. | Reg. | & Other | Ops. | Total | ||||||||||||||||||
Reported Earnings | $ | 0.45 | $ | 0.09 | $ | 0.09 | $ | (0.03 | ) | $ | (0.01 | ) | $ | 0.59 | |||||||||
Less: Special Items (expense) benefit: | |||||||||||||||||||||||
Foreign currency-related economic hedges | 0.05 | — | — | — | — | 0.05 | |||||||||||||||||
Spinoff of the Supply segment: | |||||||||||||||||||||||
Discontinued operations | — | — | — | — | (0.01 | ) | (0.01 | ) | |||||||||||||||
Transition and transaction costs | — | — | — | 0.01 | — | 0.01 | |||||||||||||||||
Other: | |||||||||||||||||||||||
Change in U.K. tax rate | 0.11 | — | — | — | — | 0.11 | |||||||||||||||||
Total Special Items | 0.16 | — | — | 0.01 | (0.01 | ) | 0.16 | ||||||||||||||||
Earnings from Ongoing Operations | $ | 0.29 | $ | 0.09 | $ | 0.09 | $ | (0.04 | ) | $ | — | $ | 0.43 |
Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations | |||||||||||||||||||||||
(After-Tax) | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Year-to-Date December 31, 2015 | (millions of dollars) | ||||||||||||||||||||||
U.K. | KY | PA | Corp. | Disc. | |||||||||||||||||||
Reg. | Reg. | Reg. | & Other | Ops.(1) | Total | ||||||||||||||||||
Reported Earnings | $ | 1,121 | $ | 326 | $ | 252 | $ | (96 | ) | $ | (921 | ) | $ | 682 | |||||||||
Less: Special Items (expense) benefit: | |||||||||||||||||||||||
Foreign currency-related economic hedges, net of tax of ($30) | 55 | — | — | — | — | 55 | |||||||||||||||||
Spinoff of the Supply segment: | |||||||||||||||||||||||
Discontinued operations, net of tax of $30 | — | — | — | — | (921 | ) | (921 | ) | |||||||||||||||
Transition and transaction costs, net of tax of $6 | — | — | — | (12 | ) | — | (12 | ) | |||||||||||||||
Employee transitional services, net of tax of $2 | — | — | — | (5 | ) | — | (5 | ) | |||||||||||||||
Separation benefits, net of tax of $3 | — | — | — | (5 | ) | — | (5 | ) | |||||||||||||||
Other: | |||||||||||||||||||||||
Change in U.K. tax rate | 78 | — | — | — | — | 78 | |||||||||||||||||
Settlement of certain income tax positions | 18 | — | — | — | — | 18 | |||||||||||||||||
WPD Midlands acquisition-related adjustment, net of tax of ($1) | 2 | — | — | — | — | 2 | |||||||||||||||||
Certain valuation allowances, net of tax of $0 | — | (12 | ) | — | — | — | (12 | ) | |||||||||||||||
LKE acquisition-related adjustment, net of tax of $0 | — | (5 | ) | — | — | — | (5 | ) | |||||||||||||||
Total Special Items | 153 | (17 | ) | — | (22 | ) | (921 | ) | (807 | ) | |||||||||||||
Earnings from Ongoing Operations | $ | 968 | $ | 343 | $ | 252 | $ | (74 | ) | $ | — | $ | 1,489 | ||||||||||
(per share - diluted) | |||||||||||||||||||||||
U.K. | KY | PA | Corp. | Disc. | |||||||||||||||||||
Reg. | Reg. | Reg. | & Other | Ops.(1) | Total | ||||||||||||||||||
Reported Earnings | $ | 1.66 | $ | 0.48 | $ | 0.37 | $ | (0.14 | ) | $ | (1.36 | ) | $ | 1.01 | |||||||||
Less: Special Items (expense) benefit: | |||||||||||||||||||||||
Foreign currency-related economic hedges | 0.08 | — | — | — | — | 0.08 | |||||||||||||||||
Spinoff of the Supply segment: | |||||||||||||||||||||||
Discontinued operations | — | — | — | — | (1.36 | ) | (1.36 | ) | |||||||||||||||
Transition and transaction costs | — | — | — | (0.02 | ) | — | (0.02 | ) | |||||||||||||||
Employee transitional services | — | — | — | (0.01 | ) | — | (0.01 | ) | |||||||||||||||
Other: | |||||||||||||||||||||||
Change in U.K. tax rate | 0.11 | — | — | — | — | 0.11 | |||||||||||||||||
Settlement of certain income tax positions | 0.03 | — | — | — | — | 0.03 | |||||||||||||||||
Certain valuation allowances | — | (0.02 | ) | — | — | — | (0.02 | ) | |||||||||||||||
LKE acquisition-related adjustment | — | (0.01 | ) | — | — | — | (0.01 | ) | |||||||||||||||
Total Special Items | 0.22 | (0.03 | ) | — | (0.03 | ) | (1.36 | ) | (1.20 | ) | |||||||||||||
Earnings from Ongoing Operations | $ | 1.44 | $ | 0.51 | $ | 0.37 | $ | (0.11 | ) | $ | — | $ | 2.21 |
(1) | Includes an $879 million charge reflecting the difference between PPL's recorded value for the Supply segment and the estimated fair value determined in accordance with applicable rules under GAAP. |
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