XML 75 R12.htm IDEA: XBRL DOCUMENT v3.22.4
Segment and Related Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment and Related Information
(PPL)

PPL is organized into three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. PPL's segments are segmented by geographic location.

The Kentucky Regulated segment consists primarily of LG&E's and KU's regulated electricity generation, transmission and distribution operations, as well as LG&E's regulated distribution and sale of natural gas. In addition, the Kentucky Regulated segment includes certain financing and other costs at LKE.

The Pennsylvania Regulated segment includes the regulated electricity transmission and distribution operations of PPL Electric.

The Rhode Island Regulated segment includes the regulated electricity transmission and distribution and natural gas distribution operations of RIE, which was acquired on May 25, 2022.

"Corporate and Other" primarily includes financing and other costs incurred at the corporate level that have not been allocated or assigned to the segments, as well as certain non-recoverable costs resulting from commitments made to the Rhode Island Division of Public Utilities and Carriers and the Attorney General of the State of Rhode Island in conjunction with the acquisition of Narragansett Electric.

As a result of the June 14, 2021 sale of the U.K. utility business, PPL determined segment information for the U.K. Regulated segment would no longer be provided beginning with the March 31, 2021 Form 10-Q. See Note 9 for additional information.

Income Statement data for the segments and reconciliation to PPL's consolidated results for the years ended December 31 are as follows:
202220212020
Operating Revenues from external customers (a)   
Kentucky Regulated$3,811 $3,348 $3,106 
Pennsylvania Regulated3,030 2,402 2,330 
Rhode Island Regulated1,038 — — 
Corporate and Other23 33 38 
Total$7,902 $5,783 $5,474 
Depreciation   
Kentucky Regulated$685 $647 $606 
Pennsylvania Regulated393 424 403 
Rhode Island Regulated92 — — 
Corporate and Other11 11 13 
Total$1,181 $1,082 $1,022 
Amortization (b)   
Kentucky Regulated$23 $15 $19 
Pennsylvania Regulated22 19 26 
Rhode Island Regulated2 — — 
Corporate and Other5 5 13 
Total$52 $39 $58 
202220212020
Interest Expense (c)   
Kentucky Regulated$262 $249 $300 
Pennsylvania Regulated171 162 172 
Rhode Island Regulated39 — — 
Corporate and Other (d)41 507 162 
Total$513 $918 $634 
Income Before Income Taxes   
Kentucky Regulated$621 $562 $516 
Pennsylvania Regulated699 599 664 
Rhode Island Regulated(58)— — 
Corporate and Other(347)(640)(226)
Total$915 $521 $954 
Income Taxes (e)   
Kentucky Regulated$114 $94 $98 
Pennsylvania Regulated174 154 167 
Rhode Island Regulated(14)— — 
Corporate and Other(73)255 49 
Total$201 $503 $314 
Deferred income taxes and investment tax credits (f)   
Kentucky Regulated$6 $272 $64 
Pennsylvania Regulated91 79 82 
Rhode Island Regulated39 — — 
Corporate and Other43 (264)23 
Total$179 $87 $169 
Net Income   
Kentucky Regulated$507 $468 $418 
Pennsylvania Regulated525 445 497 
Rhode Island Regulated(44)— — 
Corporate and Other (d)(274)(895)(275)
Discontinued Operations42 (1,498)829 
Total$756 $(1,480)$1,469 

(a)See Note 1 and Note 3 for additional information on Operating Revenues.
(b)Represents non-cash expense items that include amortization of operating lease right-of-use assets, regulatory assets and liabilities, debt discounts and premiums and debt issuance costs.
(c)Beginning in 2021, corporate level financing costs are no longer allocated to the reportable segments and are being reported in Corporate and Other. For the year ended December 31, 2020, corporate level financing costs of $32 million, net of $8 million of income taxes, were allocated to the Kentucky Regulated segment. For the year ended December 31, 2020, an immaterial amount of financing costs was allocated to the Pennsylvania Regulated segment.
(d)2021 includes losses from the extinguishment of PPL Capital Funding debt. See Note 8 for additional information.
(e)Represents both current and deferred income taxes, including investment tax credits.
(f)Represents a non-cash expense item that is also included in "Income Taxes."

Cash Flow data for the segments and reconciliation to PPL's consolidated results for the years ended December 31 are as follows:
202220212020
Expenditures for long-lived assets   
Kentucky Regulated$917 $1,026 $966 
Pennsylvania Regulated889 904 1,154 
Rhode Island Regulated268 — — 
Corporate and Other84 49 158 
Total$2,158 $1,979 $2,278 
The following provides Balance Sheet data for the segments and reconciliation to PPL's consolidated results as of:
 As of December 31,
20222021
Total Assets  
Kentucky Regulated$16,904 $16,360 
Pennsylvania Regulated13,565 13,336 
Rhode Island Regulated6,081 — 
Corporate and Other (a)1,287 3,527 
Total$37,837 $33,223 

(a)Primarily consists of unallocated items, including cash, PP&E, goodwill, and the elimination of inter-segment transactions.

Beginning on January 1, 2023, the Kentucky Regulated segment will consist primarily of the regulated electricity generation, transmission and distribution operations conducted by LG&E and KU, as well as LG&E's regulated distribution and sale of natural gas. Prior to January 1, 2023, the Kentucky Regulated segment also included the financing activities of LKE. The financing activity of LKE will be presented in Corporate and Other beginning on January 1, 2023. As a result of this change, beginning on January 1, 2023, PPL’s segments will consist of the regulated operations of Kentucky, Pennsylvania and Rhode Island and will exclude any incremental financing activities of holding companies, which Management believes is a more meaningful presentation as it provides information on the core regulated operations of PPL.

(PPL Electric, LG&E and KU)

PPL Electric has two operating segments, distribution and transmission, which are aggregated into a single reportable segment. LG&E and KU are individually single operating and reportable segments.