ALLENTOWN, Pa., Nov. 1, 2016 /PRNewswire/ -- PPL Corporation
(NYSE: PPL) on Tuesday (11/1) announced third-quarter 2016 reported
earnings (GAAP) of $473 million, or
$0.69 per share, an increase from
third-quarter 2015 reported earnings of $393
million, or $0.58 per
share.
Reported earnings for the first nine months of 2016 were
$1.4 billion, or $2.11 per share, an increase from $283 million, or $0.42 per share, for the first nine months of
2015. The company's results for the first nine months of 2015
reflected a loss from discontinued operations of $915 million, or $1.36 per share, resulting primarily from the
June 1 spinoff of its competitive
generation business.
Adjusting for special items, third-quarter 2016 earnings from
ongoing operations (non-GAAP) were $427
million, or $0.63 per share,
an increase of about 23 percent compared with $347 million, or $0.51 per share, a year ago. Earnings from
ongoing operations for the first nine months of 2016 were
$1.3 billion, or $1.86 per share, compared with $1.2 billion, or $1.77 per share, for the first nine months of
2015.
"Based on PPL's continued strong performance year-to-date and
better than expected third-quarter results across our business
units, we are raising the midpoint of our 2016 ongoing earnings
forecast," said William H. Spence,
PPL's chairman, president and Chief Executive Officer.
"Moreover, as we look to the future, we remain confident in our
ability to deliver competitive compound annual earnings growth of 5
to 6 percent from 2017 to 2020 and targeted dividend growth of
about 4 percent annually over the same period," Spence said. "The
investments we are making to advance a smarter, cleaner and more
reliable energy infrastructure will drive this growth. And actions
we've taken to significantly reduce foreign currency risks bolster
our projections."
With the effect of special items recorded through the third
quarter, the company's forecast range for 2016 reported earnings is
$2.55 to $2.70 per share.
PPL's new forecast range for 2016 earnings from ongoing
operations is $2.30 to $2.45 per
share, with a midpoint of $2.38 per
share. That's an increase from the previous forecast of
$2.25 to $2.45 per share, with a midpoint of $2.35 per share.
The increased forecast reflects actions PPL took in October to
capture gains from remaining 2016 earnings hedges against a
weakening British pound and to use that value to add 2018 earnings
hedges at rates above the company's business plan assumptions of
$1.30 per pound. These previously
announced moves will have no significant impact on 2016 reported
earnings and will result in lower full-year 2016 earnings from
ongoing operations of approximately $0.06 per share. This $0.06 is reflected in PPL's increased guidance
for 2016.
Since its previous announcement on Oct.
12, the company has taken further actions to reduce foreign
currency risk, capturing about $0.06
of gains from a portion of its 2017 earnings hedges, adding more
hedges at rates above the company's business plan for 2018 and
enhancing PPL's flexibility to protect against potential declines
in the value of the British pound through 2019 and potentially
2020.
Looking beyond 2016, PPL reaffirmed its 2017 earnings guidance
of $2.05 to $2.25 per share, with a
midpoint of $2.15 per
share.
In addition, PPL said its growth plans include investing more
than $15 billion in infrastructure
improvements from 2016 through 2020, with near real-time recovery
available for more than three-quarters of that investment.
"As we pursue our long-range growth plans, our utilities
continue to be among the very best in the regions they serve,
strengthening reliability and distinguishing themselves through
award-winning customer service," Spence said. "Our focus is
maintaining this strong operational performance as we continue to
invest responsibly in the future for our shareowners and our
customers."
Third-Quarter and Year-to-Date Earnings
Details
PPL's reported earnings for the third quarter of 2016 included
net special-item after-tax benefits of $46
million, or $0.06 per share,
primarily from a further reduction in the U.K. corporate income tax
rate to become effective April 1,
2020. Reported earnings for the third quarter of 2015
included net special-item after-tax benefits of $46 million, or $0.07 per share, primarily from foreign
currency-related economic hedges.
PPL's reported earnings for the first nine months of 2016
included net special-item after-tax benefits of $172 million, or $0.25 per share, primarily due to foreign
currency-related economic hedges. Reported earnings for the first
nine months of 2015 included net special-item after-tax charges of
$912 million, or $1.35 per share, primarily due to the
June 1, 2015 spinoff of the company's
former Supply segment.
As discussed in this news release, reported earnings are
calculated in accordance with U.S. Generally Accepted Accounting
Principles (GAAP). "Earnings from ongoing operations" is a non-GAAP
financial measure that is adjusted for special items, including for
2015 the former Supply segment's earnings and the loss associated
with the Supply segment spinoff. See the tables at the end of this
news release for a reconciliation of reported earnings (loss) to
earnings from ongoing operations, including an itemization of
special items.
(Dollars in
millions, except for
per share amounts)
|
3rd
Quarter
|
|
Year to
Date
|
|
2016
|
|
2015
|
|
%
Change
|
|
2016
|
|
2015
|
|
%
Change
|
Reported
earnings
|
$
|
473
|
|
|
$
|
393
|
|
|
20
|
%
|
|
$
|
1,437
|
|
|
$
|
283
|
|
|
408
|
%
|
Reported earnings per
share
|
$
|
0.69
|
|
|
$
|
0.58
|
|
|
19
|
%
|
|
$
|
2.11
|
|
|
$
|
0.42
|
|
|
402
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Year to
Date
|
|
2016
|
|
2015
|
|
%
Change
|
|
2016
|
|
2015
|
|
%
Change
|
Earnings from ongoing
operations
|
$
|
427
|
|
|
$
|
347
|
|
|
23
|
%
|
|
$
|
1,265
|
|
|
$
|
1,195
|
|
|
6
|
%
|
Earnings from ongoing
operations per
share
|
$
|
0.63
|
|
|
$
|
0.51
|
|
|
24
|
%
|
|
$
|
1.86
|
|
|
$
|
1.77
|
|
|
5
|
%
|
Third-Quarter and Year-to-Date Earnings by
Segment
|
3rd
Quarter
|
|
Year to
Date
|
Per
share
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Reported
earnings
|
|
|
|
|
|
|
|
U.K.
Regulated
|
$
|
0.41
|
|
|
$
|
0.37
|
|
|
$
|
1.34
|
|
|
$
|
1.21
|
|
Kentucky
Regulated
|
0.18
|
|
|
0.16
|
|
|
0.46
|
|
|
0.40
|
|
Pennsylvania
Regulated
|
0.13
|
|
|
0.08
|
|
|
0.39
|
|
|
0.28
|
|
Corporate and
Other
|
(0.03)
|
|
|
(0.02)
|
|
|
(0.08)
|
|
|
(0.11)
|
|
Former
Supply/Discontinued Operations
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(1.36)
|
|
Total
|
$
|
0.69
|
|
|
$
|
0.58
|
|
|
$
|
2.11
|
|
|
$
|
0.42
|
|
|
|
|
|
|
3rd
Quarter
|
|
Year to
Date
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Special items
(expense) benefit
|
|
|
|
|
|
|
|
U.K.
Regulated
|
$
|
0.06
|
|
|
$
|
0.08
|
|
|
$
|
0.25
|
|
|
$
|
0.06
|
|
Kentucky
Regulated
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
Pennsylvania
Regulated
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Corporate and
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.03)
|
|
Former
Supply/Discontinued Operations
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(1.36)
|
|
Total Special
items
|
$
|
0.06
|
|
|
$
|
0.07
|
|
|
$
|
0.25
|
|
|
$
|
(1.35)
|
|
|
|
|
|
|
|
|
|
|
3rd
Quarter
|
|
Year to
Date
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Earnings from
ongoing operations
|
|
|
|
|
|
|
|
U.K.
Regulated
|
$
|
0.35
|
|
|
$
|
0.29
|
|
|
$
|
1.09
|
|
|
$
|
1.15
|
|
Kentucky
Regulated
|
0.18
|
|
|
0.16
|
|
|
0.46
|
|
|
0.42
|
|
Pennsylvania
Regulated
|
0.13
|
|
|
0.08
|
|
|
0.39
|
|
|
0.28
|
|
Corporate and
Other
|
(0.03)
|
|
|
(0.02)
|
|
|
(0.08)
|
|
|
(0.08)
|
|
Total
|
$
|
0.63
|
|
|
$
|
0.51
|
|
|
$
|
1.86
|
|
|
$
|
1.77
|
|
Key Factors Impacting Earnings
U.K. Regulated Segment
PPL's U.K. Regulated segment primarily consists of the regulated
electricity delivery operations of Western Power Distribution
(WPD), serving Southwest and Central
England and South
Wales.
Reported earnings in the third quarter of 2016 increased by
$0.04 per share compared to a year
ago, and earnings from ongoing operations in the third quarter of
2016 increased by $0.06 per share.
Excluding special items, earnings results primarily reflect an
April 1, 2016 price increase and
lower operation and maintenance expense, including pension expense,
partially offset by lower sales volumes and other factors.
Reported earnings for the first nine months of 2016 increased by
$0.13 per share compared with a year
ago, and earnings from ongoing operations for the first nine months
of 2016 decreased by $0.06 per share.
Excluding special items, factors driving earnings results included
an April 1, 2015 price decrease due
to the beginning of the RIIO-ED1 eight-year price control period,
the unfavorable impact of lower British pound sterling exchange
rates, lower sales volumes and higher interest expense, partially
offset by an April 1, 2016 price
increase and lower operation and maintenance expense, including
pension expense.
Kentucky Regulated Segment
PPL's Kentucky Regulated segment primarily consists of the
regulated electricity and natural gas operations of Louisville Gas
and Electric Company and the regulated electricity operations of
Kentucky Utilities Company.
Reported earnings and earnings from ongoing operations in the
third quarter of 2016 increased by $0.02 per share compared with a year ago. The
increase was primarily driven by higher sales volumes due to
favorable weather.
Reported earnings for the first nine months of 2016 increased by
$0.06 per share compared with a year
ago, and earnings from ongoing operations for the first nine months
of 2016 increased by $0.04 per share.
Excluding special items, the increase was primarily driven by
higher base electricity rates effective July
1, 2015, lower operation and maintenance expense and higher
returns on additional environmental capital investments, partially
offset by higher interest
expense.
Pennsylvania Regulated Segment
PPL's Pennsylvania Regulated segment consists of the regulated
electricity delivery operations of PPL Electric Utilities.
Reported earnings and earnings from ongoing operations in the
third quarter of 2016 increased by $0.05 per share compared with a year ago, driven
primarily by higher base electricity rates for distribution
effective Jan.1, 2016, and higher transmission earnings from
additional capital investments.
Reported earnings and earnings from ongoing operations for the
first nine months of 2016 increased by $0.11 per share compared with a year ago, driven
primarily by higher base electricity rates for distribution
effective Jan.1, 2016, and higher transmission earnings from
additional capital investments, partially offset by higher
depreciation expense.
Corporate and Other
PPL's Corporate and Other category primarily includes
unallocated corporate-level financing and other costs.
The reported loss in the third quarter increased by $0.01 per share compared to a year ago, and the
reported loss for the first nine months of the year decreased by
$0.03 per share compared to a year
ago. Earnings from ongoing operations in the third quarter of 2016
and for the first nine months of the year were relatively flat.
Earnings Forecast
|
Reported
Earnings
|
|
Earnings from
ongoing
operations
|
|
2016 forecast
midpoint
|
|
2015
actual
|
|
2016 forecast
midpoint
|
|
2015
actual
|
Per
share
|
|
|
|
|
|
|
|
U.K.
Regulated
|
$
|
1.66
|
|
|
$
|
1.66
|
|
|
$
|
1.41
|
|
|
$
|
1.44
|
|
Kentucky
Regulated
|
0.58
|
|
|
0.48
|
|
|
0.58
|
|
|
0.51
|
|
Pennsylvania
Regulated
|
0.49
|
|
|
0.37
|
|
|
0.49
|
|
|
0.37
|
|
Corporate and
Other
|
(0.10)
|
|
|
(0.14)
|
|
|
(0.10)
|
|
|
(0.11)
|
|
Former
Supply/Discontinued Operations
|
—
|
|
|
(1.36)
|
|
|
—
|
|
|
—
|
|
Total
|
$
|
2.63
|
|
|
$
|
1.01
|
|
|
$
|
2.38
|
|
|
$
|
2.21
|
|
(See the tables at the end of this news release for a
reconciliation of reported earnings to earnings from ongoing
operations.)
The increase in forecasted reported earnings from 2015 to 2016
is almost exclusively attributable to the results of the 2015
spinoff of the Supply segment.
The midpoint of PPL's 2016 forecast range for earnings from
ongoing operations is $2.38 per
share, which represents an increase of about 8 percent compared to
2015 earnings from ongoing operations. This increase is primarily
attributable to increases in the Pennsylvania Regulated and
Kentucky Regulated segments.
U.K. Regulated Segment
PPL projects segment reported earnings in 2016 to be relatively
flat compared to 2015. Earnings from ongoing operations
are projected to be lower in 2016 compared with 2015 due to the
unfavorable impact of lower British pound sterling exchange rates,
higher interest expense and depreciation, partially offset by
higher revenues and lower operation and maintenance expense,
including pension expense.
The remaining 2016 foreign currency exposure for this segment is
91 percent hedged at an average rate of $1.29 per pound, compared to an average hedged
rate of $1.57 per pound in 2015.
Kentucky Regulated Segment
PPL projects higher segment reported earnings and earnings from
ongoing operations in 2016 compared with 2015, primarily driven by
electric and gas base rate increases effective July 1, 2015, higher returns on additional
environmental capital investments, and lower operation and
maintenance expense, partially offset by higher depreciation and
higher interest expense.
Pennsylvania Regulated Segment
PPL projects higher segment reported earnings and earnings from
ongoing operations in 2016 compared with 2015, primarily driven by
higher base electricity rates for distribution effective
Jan. 1, 2016, and higher transmission
earnings from additional capital investments, partially offset by
higher depreciation and a benefit received in 2015 from the release
of a gross receipts tax reserve.
Corporate and Other
PPL projects relatively flat costs in this category in 2016
compared with 2015.
Headquartered in Allentown,
Pa., PPL Corporation (NYSE: PPL) is one of the largest
companies in the U.S. utility sector. PPL's seven high-performing,
award-winning utilities serve 10 million customers in the U.S. and
United Kingdom. The company and
its 13,000 employees are dedicated to providing exceptional
customer service and reliability and delivering superior value for
shareowners. To learn more, visit www.pplweb.com.
(Note: All references to earnings per share in the text and
tables of this news release are stated in terms of diluted earnings
per share unless otherwise noted.)
Conference Call and Webcast
PPL invites interested parties to listen to a live Internet
webcast of management's teleconference with financial analysts
about third-quarter 2016 financial results at 8:30 a.m. Eastern Daylight Time on Tuesday, Nov. 1. The call will be
webcast live, in audio format, along with slides of the
presentation. For those who are unable to listen to the live
webcast, a replay with slides will be accessible at
http://www.pplweb.com/investors for 90 days after the
call. Interested individuals can access the live conference call
via telephone at 1-888-317-6003. International participants should
call 1-412-317-6061. Participants in Canada should call 1-866-284-3684.
Participants will need to enter the following "Elite Entry" number
in order to join the conference: 2778833.
Management utilizes "Earnings from Ongoing Operations" as a
non-GAAP financial measure that should not be considered as an
alternative to reported earnings, or net income, an indicator of
operating performance determined in accordance with GAAP. PPL
believes that Earnings from Ongoing Operations is useful and
meaningful to investors because it provides management's view of
PPL's earnings performance as another criterion in making
investment decisions. In addition, PPL's management uses Earnings
from Ongoing Operations in measuring achievement of certain
corporate performance goals, including targets for certain
executive incentive compensation. Other companies may use
different measures to present financial performance.
Earnings from Ongoing Operations is adjusted for the impact
of special items. Special items are presented in the financial
tables on an after-tax basis with the related income taxes on
special items separately disclosed. Income taxes on special items,
when applicable, are calculated based on the effective tax rate of
the entity where the activity is recorded. Special items
include:
- 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.
Unrealized gains or losses on foreign currency economic
hedges include the changes in fair value of foreign currency
contracts used to hedge British-pound-sterling-denominated
anticipated earnings. The changes in fair value of these
contracts are recognized immediately within GAAP
earnings. Management believes that excluding these amounts
from Earnings from Ongoing Operations until settlement of the
contracts provides a better matching of the financial impacts of
those contracts with the economic value of PPL's underlying hedged
earnings.
Statements contained in this news release, including
statements with respect to future earnings, cash flows, dividends,
financing, regulation and corporate strategy, are "forward-looking
statements" within the meaning of the federal securities laws.
Although PPL Corporation believes that the expectations and
assumptions reflected in these forward-looking statements are
reasonable, these statements are subject to a number of risks and
uncertainties, and actual results may differ materially from the
results discussed in the statements. The following are among the
important factors that could cause actual results to differ
materially from the forward-looking statements: market demand for
energy in our service territories; weather conditions affecting
customer energy usage and operating costs; the effect of any
business or industry restructuring; the profitability and liquidity
of PPL Corporation and its subsidiaries; new accounting
requirements or new interpretations or applications of existing
requirements; operating performance of our facilities; the length
of scheduled and unscheduled outages at our generating plants;
environmental conditions and requirements and the related costs of
compliance; system conditions and operating costs; development of
new projects, markets and technologies; performance of new
ventures; asset or business acquisitions and dispositions; any
impact of severe weather on our business; receipt of necessary
government permits, approvals, rate relief and regulatory cost
recovery; capital market conditions and decisions regarding capital
structure; the impact of state, federal or foreign investigations
applicable to PPL Corporation and its subsidiaries; the outcome of
litigation against PPL Corporation and its subsidiaries; stock
price performance; the market prices of equity securities and the
impact on pension income and resultant cash funding requirements
for defined benefit pension plans; the securities and credit
ratings of PPL Corporation and its subsidiaries; political,
regulatory or economic conditions in states, regions or countries
where PPL Corporation or its subsidiaries conduct business,
including any potential effects of threatened or actual terrorism
or war or other hostilities; British pound sterling to U.S. dollar
exchange rates; new state, federal or foreign legislation,
including new tax legislation; and the commitments and liabilities
of PPL Corporation and its subsidiaries. Any such forward-looking
statements should be considered in light of such important factors
and in conjunction with PPL Corporation's Form 10-K and other
reports on file with the Securities and Exchange
Commission.
Note to Editors: Visit our media website at
www.pplnewsroom.com for additional
news and background about PPL Corporation.
PPL CORPORATION
AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED FINANCIAL INFORMATION (1)
|
|
|
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(Millions of
Dollars)
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2016
|
|
2015
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
416
|
|
|
$
|
836
|
|
Accounts
receivable
|
732
|
|
|
732
|
|
Unbilled
revenues
|
393
|
|
|
453
|
|
Fuel, materials and
supplies
|
346
|
|
|
357
|
|
Current price risk
management assets
|
78
|
|
|
139
|
|
Other current
assets
|
134
|
|
|
129
|
|
Property, Plant and
Equipment
|
|
|
|
Regulated utility
plant
|
34,427
|
|
|
34,399
|
|
Less: Accumulated
depreciation - regulated utility plant
|
5,938
|
|
|
5,683
|
|
Regulated utility
plant, net
|
28,489
|
|
|
28,716
|
|
Non-regulated
property, plant and equipment
|
451
|
|
|
516
|
|
Less: Accumulated
depreciation - non-regulated property, plant and
equipment
|
155
|
|
|
165
|
|
Non-regulated
property, plant and equipment, net
|
296
|
|
|
351
|
|
Construction work in
progress
|
1,184
|
|
|
1,315
|
|
Property, Plant and
Equipment, net
|
29,969
|
|
|
30,382
|
|
Noncurrent regulatory
assets
|
1,765
|
|
|
1,733
|
|
Goodwill and other
intangibles
|
3,868
|
|
|
4,229
|
|
Noncurrent price risk
management assets
|
185
|
|
|
156
|
|
Other noncurrent
assets
|
152
|
|
|
155
|
|
Total
Assets
|
$
|
38,038
|
|
|
$
|
39,301
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term
debt
|
$
|
636
|
|
|
$
|
916
|
|
Long-term debt due
within one year
|
443
|
|
|
485
|
|
Accounts
payable
|
741
|
|
|
812
|
|
Other current
liabilities
|
1,592
|
|
|
1,663
|
|
Long-term
debt
|
18,069
|
|
|
18,563
|
|
Deferred income taxes
and investment tax credits
|
3,943
|
|
|
3,568
|
|
Accrued pension
obligations
|
878
|
|
|
1,405
|
|
Asset retirement
obligations
|
413
|
|
|
536
|
|
Noncurrent regulatory
liabilities
|
911
|
|
|
945
|
|
Other noncurrent
liabilities
|
437
|
|
|
489
|
|
Common stock and
additional paid-in capital
|
9,831
|
|
|
9,694
|
|
Earnings
reinvested
|
3,624
|
|
|
2,953
|
|
Accumulated other
comprehensive loss
|
(3,480)
|
|
|
(2,728)
|
|
Total Liabilities
and Equity
|
$
|
38,038
|
|
|
$
|
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
Revenues
|
$
|
1,889
|
|
|
$
|
1,878
|
|
|
$
|
5,685
|
|
|
$
|
5,889
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Operation
|
|
|
|
|
|
|
|
Fuel
|
227
|
|
|
228
|
|
|
607
|
|
|
695
|
|
Energy
purchases
|
151
|
|
|
177
|
|
|
531
|
|
|
676
|
|
Other operation and
maintenance
|
417
|
|
|
482
|
|
|
1,292
|
|
|
1,405
|
|
Depreciation
|
232
|
|
|
226
|
|
|
692
|
|
|
658
|
|
Taxes, other than
income
|
76
|
|
|
79
|
|
|
229
|
|
|
241
|
|
Total Operating
Expenses
|
1,103
|
|
|
1,192
|
|
|
3,351
|
|
|
3,675
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
786
|
|
|
686
|
|
|
2,334
|
|
|
2,214
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) - net
|
49
|
|
|
75
|
|
|
284
|
|
|
61
|
|
|
|
|
|
|
|
|
|
Interest
Expense
|
223
|
|
|
221
|
|
|
671
|
|
|
645
|
|
|
|
|
|
|
|
|
|
Income from
Continuing Operations Before Income Taxes
|
612
|
|
|
540
|
|
|
1,947
|
|
|
1,630
|
|
|
|
|
|
|
|
|
|
Income
Taxes
|
139
|
|
|
144
|
|
|
510
|
|
|
432
|
|
|
|
|
|
|
|
|
|
Income from
Continuing Operations After Income Taxes
|
473
|
|
|
396
|
|
|
1,437
|
|
|
1,198
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
Discontinued Operations (net of income taxes)
|
—
|
|
|
(3)
|
|
|
—
|
|
|
(915)
|
|
|
|
|
|
|
|
|
|
Net
Income
|
$
|
473
|
|
|
$
|
393
|
|
|
$
|
1,437
|
|
|
$
|
283
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
of Common Stock:
|
|
|
|
|
|
|
|
Income from
Continuing Operations After Income Taxes:
|
|
|
|
|
|
Basic
|
$
|
0.70
|
|
|
$
|
0.59
|
|
|
$
|
2.12
|
|
|
$
|
1.78
|
|
Diluted
|
$
|
0.69
|
|
|
$
|
0.59
|
|
|
$
|
2.11
|
|
|
$
|
1.78
|
|
Net
Income:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.70
|
|
|
$
|
0.58
|
|
|
$
|
2.12
|
|
|
$
|
0.42
|
|
Diluted
|
$
|
0.69
|
|
|
$
|
0.58
|
|
|
$
|
2.11
|
|
|
$
|
0.42
|
|
|
|
|
|
|
|
|
|
Weighted-Average
Shares of Common Stock Outstanding
(in thousands)
|
|
|
|
|
|
|
|
Basic
|
678,114
|
|
|
670,763
|
|
|
676,905
|
|
|
668,731
|
|
Diluted
|
680,348
|
|
|
673,702
|
|
|
679,969
|
|
|
671,254
|
|
PPL
CORPORATION AND SUBSIDIARIES
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(Millions of
Dollars)
|
|
|
Nine Months Ended
September 30,
|
|
2016
|
|
2015
|
Cash Flows from
Operating Activities
|
|
|
|
Net income
|
$
|
1,437
|
|
|
$
|
283
|
|
Loss from
discontinued operations (net of income taxes)
|
—
|
|
|
915
|
|
Income from
continuing operations (net of income taxes)
|
1,437
|
|
|
1,198
|
|
Adjustments to
reconcile Income from continuing operations (net of taxes) to net
cash provided by
operating activities - continuing operations
|
|
|
|
Depreciation
|
692
|
|
|
658
|
|
Amortization
|
54
|
|
|
46
|
|
Defined benefit plans
- expense (income)
|
(29)
|
|
|
44
|
|
Deferred income taxes
and investment tax credits
|
436
|
|
|
359
|
|
Unrealized (gains)
losses on derivatives, and other hedging activities
|
107
|
|
|
(17)
|
|
Other
|
11
|
|
|
35
|
|
Change in current
assets and current liabilities
|
|
|
|
Accounts
payable
|
(40)
|
|
|
(180)
|
|
Prepayments
|
(34)
|
|
|
(43)
|
|
Taxes
payable
|
40
|
|
|
(142)
|
|
Unbilled
revenues
|
32
|
|
|
91
|
|
Regulatory assets and
liabilities, net
|
(32)
|
|
|
46
|
|
Other
|
(42)
|
|
|
50
|
|
Other operating
activities
|
|
|
|
Defined benefit plans
- funding
|
(345)
|
|
|
(396)
|
|
Other
|
(57)
|
|
|
(61)
|
|
Net cash provided by
operating activities - continuing operations
|
2,230
|
|
|
1,688
|
|
Net cash provided by
operating activities - discontinued operations
|
—
|
|
|
343
|
|
Net cash provided by
operating activities
|
2,230
|
|
|
2,031
|
|
Cash Flows from
Investing Activities
|
|
|
|
Expenditures for
property, plant and equipment
|
(2,073)
|
|
|
(2,560)
|
|
Expenditures for
intangible assets
|
(23)
|
|
|
(32)
|
|
Proceeds from the
sale of other investments
|
2
|
|
|
136
|
|
Other investing
activities
|
28
|
|
|
(7)
|
|
Net cash used in
investing activities - continuing operations
|
(2,066)
|
|
|
(2,463)
|
|
Net cash used in
investing activities - discontinued operations
|
—
|
|
|
(149)
|
|
Net cash used in
investing activities
|
(2,066)
|
|
|
(2,612)
|
|
Cash Flows from
Financing Activities
|
|
|
|
Issuance of long-term
debt
|
1,241
|
|
|
1,137
|
|
Retirement of
long-term debt
|
(905)
|
|
|
—
|
|
Settlement of
cross-currency swaps
|
46
|
|
|
—
|
|
Issuance of common
stock
|
133
|
|
|
145
|
|
Payment of common
stock dividends
|
(772)
|
|
|
(750)
|
|
Net increase
(decrease) in short-term debt
|
(268)
|
|
|
(271)
|
|
Other financing
activities
|
(33)
|
|
|
(30)
|
|
Net cash provided by
(used in) financing activities - continuing operations
|
(558)
|
|
|
231
|
|
Net cash provided by
(used in) financing activities - discontinued operations
|
—
|
|
|
(546)
|
|
Net cash
distributions to parent from discontinued operations
|
—
|
|
|
132
|
|
Net cash used in
financing activities
|
(558)
|
|
|
(183)
|
|
Effect of Exchange
Rates on Cash and Cash Equivalents
|
(26)
|
|
|
(6)
|
|
Net Decrease in
Cash and Cash Equivalents included in Discontinued
Operations
|
—
|
|
|
352
|
|
Net Decrease in
Cash and Cash Equivalents
|
(420)
|
|
|
(418)
|
|
Cash and Cash
Equivalents at Beginning of Period
|
836
|
|
|
1,399
|
|
Cash and Cash
Equivalents at End of Period
|
$
|
416
|
|
|
$
|
981
|
|
Key Indicators
(Unaudited)
|
|
|
|
|
|
|
12 Months
Ended
|
|
September
30
|
Financial
|
2016
|
|
|
2015
|
|
|
|
|
|
Dividends declared
per share of common stock
|
$
|
1.5175
|
|
|
|
$
|
1.495
|
|
Book value per share
(1)(2)
|
$
|
14.69
|
|
|
|
$
|
15.22
|
|
Market price per
share (1)
|
$
|
34.57
|
|
|
|
$
|
32.89
|
|
Dividend
yield
|
4.4
|
%
|
|
|
4.5
|
%
|
Dividend payout ratio
(3)(4)
|
56.2
|
%
|
|
|
102.4
|
%
|
Dividend payout ratio
- earnings from ongoing operations (3)(5)
|
66.3
|
%
|
|
|
65.9
|
%
|
Price/earnings ratio
(3)(4)
|
12.8
|
|
|
|
22.5
|
|
Price/earnings ratio
- earnings from ongoing operations (3)(5)
|
15.1
|
|
|
|
14.5
|
|
Return on common
equity (4)
|
18.2
|
%
|
|
|
8.1
|
%
|
Return on common
equity - earnings from ongoing operations (5)(6)
|
15.4
|
%
|
|
|
15.4
|
%
|
|
|
(1)
|
End of
period
|
(2)
|
Based on 679,268 and
671,792 shares of common stock outstanding (in thousands) at
September 30, 2016 and September 30, 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 eight 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.
|
Operating -
Domestic & International Electricity Sales
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months Ended
September 30,
|
|
9 Months Ended
September 30,
|
|
|
|
|
|
Percent
|
|
|
|
|
|
Percent
|
(GWh)
|
2016
|
|
2015
|
|
Change
|
|
2016
|
|
2015
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Retail
Delivered
|
|
|
|
|
|
|
|
|
|
|
|
PPL Electric
Utilities
|
9,658
|
|
|
9,423
|
|
|
2.5
|
%
|
|
27,760
|
|
|
28,551
|
|
|
(2.8)%
|
|
LKE
|
8,681
|
|
|
8,282
|
|
|
4.8
|
%
|
|
23,645
|
|
|
23,984
|
|
|
(1.4)%
|
|
Total
|
18,339
|
|
|
17,705
|
|
|
3.6
|
%
|
|
51,405
|
|
|
52,535
|
|
|
(2.2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Retail
Supplied
|
|
|
|
|
|
|
|
|
|
|
|
LKE (1)
|
8,681
|
|
|
8,282
|
|
|
4.8
|
%
|
|
23,645
|
|
|
23,984
|
|
|
(1.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Delivered
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom
|
16,819
|
|
|
17,293
|
|
|
(2.7)
|
%
|
|
55,970
|
|
|
57,122
|
|
|
(2.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Wholesale
|
|
|
|
|
|
|
|
|
|
|
|
LKE (2)
|
606
|
|
|
606
|
|
|
—
|
%
|
|
1,596
|
|
|
1,789
|
|
|
(10.8)%
|
|
|
|
(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)
|
|
|
3rd Quarter
2016
|
(millions of
dollars)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings
|
$
|
281
|
|
|
$
|
126
|
|
|
$
|
91
|
|
|
$
|
(25)
|
|
|
$
|
473
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges, net of tax of $103
|
(193)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(193)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
Settlement of foreign
currency contracts, net of tax of ($108)
|
202
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
202
|
|
Change in U.K. tax
rate
|
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
Total Special
Items
|
46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
Earnings from
Ongoing Operations
|
$
|
235
|
|
|
$
|
126
|
|
|
$
|
91
|
|
|
$
|
(25)
|
|
|
$
|
427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings
|
$
|
0.41
|
|
|
$
|
0.18
|
|
|
$
|
0.13
|
|
|
$
|
(0.03)
|
|
|
$
|
0.69
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
(0.29)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.29)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
Settlement of foreign
currency contracts
|
0.30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.30
|
|
Change in U.K. tax
rate
|
0.05
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.05
|
|
Total Special
Items
|
0.06
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.06
|
|
Earnings from
Ongoing Operations
|
$
|
0.35
|
|
|
$
|
0.18
|
|
|
$
|
0.13
|
|
|
$
|
(0.03)
|
|
|
$
|
0.63
|
|
Reconciliation of
Segment Reported Earnings to Earnings from Ongoing
Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date
September 30, 2016
|
(millions of
dollars)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings
|
$
|
915
|
|
|
$
|
314
|
|
|
$
|
263
|
|
|
$
|
(55)
|
|
|
$
|
1,437
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges, net of tax of $34
|
(65)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(65)
|
|
Spinoff of the Supply
segment, net of tax of $2
|
—
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
(2)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
Settlement of foreign
currency contracts, net of tax of ($108)
|
202
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
202
|
|
Change in U.K. tax
rate
|
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37
|
|
Total Special
Items
|
174
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
172
|
|
Earnings from
Ongoing Operations
|
$
|
741
|
|
|
$
|
314
|
|
|
$
|
263
|
|
|
$
|
(53)
|
|
|
$
|
1,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
Reported
Earnings
|
$
|
1.34
|
|
|
$
|
0.46
|
|
|
$
|
0.39
|
|
|
$
|
(0.08)
|
|
|
$
|
2.11
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
(0.10)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.10)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
Settlement of foreign
currency contracts
|
0.30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.30
|
|
Change in U.K. tax
rate
|
0.05
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.05
|
|
Total Special
Items
|
0.25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.25
|
|
Earnings from
Ongoing Operations
|
$
|
1.09
|
|
|
$
|
0.46
|
|
|
$
|
0.39
|
|
|
$
|
(0.08)
|
|
|
$
|
1.86
|
|
Reconciliation of
Segment Reported Earnings to Earnings from Ongoing
Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
3rd Quarter
2015
|
(millions of
dollars)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.
|
|
Total
|
Reported
Earnings
|
$
|
249
|
|
|
$
|
111
|
|
|
$
|
55
|
|
|
$
|
(18)
|
|
|
$
|
(4)
|
|
|
$
|
393
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges, net of tax of ($29)
|
54
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations, net of tax of ($3)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4)
|
|
|
(4)
|
|
Transition and
transaction costs, net of tax of $1
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
Employee transitional
services, net of tax of $1
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
Separation benefits,
net of tax of $0
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
LKE
acquisition-related adjustment, net of tax of $0
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
Total Special
Items
|
54
|
|
|
(1)
|
|
|
—
|
|
|
(3)
|
|
|
(4)
|
|
|
46
|
|
Earnings from
Ongoing Operations
|
$
|
195
|
|
|
$
|
112
|
|
|
$
|
55
|
|
|
$
|
(15)
|
|
|
$
|
—
|
|
|
$
|
347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.
|
|
Total
|
Reported
Earnings
|
$
|
0.37
|
|
|
$
|
0.16
|
|
|
$
|
0.08
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.01)
|
|
|
$
|
0.58
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
0.08
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.08
|
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
|
(0.01)
|
|
Total Special
Items
|
0.08
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
|
0.07
|
|
Earnings from
Ongoing Operations
|
$
|
0.29
|
|
|
$
|
0.16
|
|
|
$
|
0.08
|
|
|
$
|
(0.02)
|
|
|
$
|
—
|
|
|
$
|
0.51
|
|
Reconciliation of
Segment Reported Earnings to Earnings from Ongoing
Operations
|
(After-Tax)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date
September 30, 2015
|
(millions of
dollars)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.(1)
|
|
Total
|
Reported
Earnings
|
$
|
814
|
|
|
$
|
267
|
|
|
$
|
191
|
|
|
$
|
(73)
|
|
|
$
|
(916)
|
|
|
$
|
283
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges, net of tax of ($10)
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
Spinoff of the Supply
segment:
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations, net of tax of $37
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(916)
|
|
|
(916)
|
|
Transition and
transaction costs, net of tax of $0
|
—
|
|
|
—
|
|
|
—
|
|
|
(16)
|
|
|
—
|
|
|
(16)
|
|
Employee transitional
services, net of tax of $2
|
—
|
|
|
—
|
|
|
—
|
|
|
(4)
|
|
|
—
|
|
|
(4)
|
|
Separation benefits,
net of tax of $1
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
(3)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
WPD Midlands
acquisition-related adjustment, net of tax of ($1)
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Settlement of certain
income tax positions
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
Certain valuation
allowances, net of tax of $0
|
—
|
|
|
(8)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8)
|
|
LKE
acquisition-related adjustment, net of tax of $0
|
—
|
|
|
(5)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
Total Special
Items
|
40
|
|
|
(13)
|
|
|
—
|
|
|
(23)
|
|
|
(916)
|
|
|
(912)
|
|
Earnings from
Ongoing Operations
|
$
|
774
|
|
|
$
|
280
|
|
|
$
|
191
|
|
|
$
|
(50)
|
|
|
$
|
—
|
|
|
$
|
1,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(per share -
diluted)
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
Disc.
|
|
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Ops.(1)
|
|
Total
|
Reported
Earnings
|
$
|
1.21
|
|
|
$
|
0.40
|
|
|
$
|
0.28
|
|
|
$
|
(0.11)
|
|
|
$
|
(1.36)
|
|
|
$
|
0.42
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
0.03
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
Settlement of certain
income tax positions
|
0.03
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
Certain valuation
allowances
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
LKE
acquisition-related adjustment
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
Total Special
Items
|
0.06
|
|
|
(0.02)
|
|
|
—
|
|
|
(0.03)
|
|
|
(1.36)
|
|
|
(1.35)
|
|
Earnings from
Ongoing Operations
|
$
|
1.15
|
|
|
$
|
0.42
|
|
|
$
|
0.28
|
|
|
$
|
(0.08)
|
|
|
$
|
—
|
|
|
$
|
1.77
|
|
|
|
(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.
|
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 (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(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)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(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.
|
Reconciliation of
PPL's Forecast of Reported Earnings to Earnings from Ongoing
Operations
|
|
(After-Tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecast (per-share -
diluted)
|
|
|
2016
Midpoint
|
|
|
|
|
U.K.
|
|
KY
|
|
PA
|
|
Corp.
|
|
|
|
High
|
|
Low
|
|
Reg.
|
|
Reg.
|
|
Reg.
|
|
&
Other
|
|
Total
|
|
2016
|
|
2016
|
Reported
Earnings
|
$
|
1.66
|
|
|
$
|
0.58
|
|
|
$
|
0.49
|
|
|
$
|
(0.10)
|
|
|
$
|
2.63
|
|
|
$
|
2.70
|
|
|
$
|
2.55
|
|
Less: Special Items
(expense) benefit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency-related economic hedges
|
(0.10)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.10)
|
|
|
(0.10)
|
|
|
(0.10)
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settlement of foreign
currency contracts
|
0.30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.30
|
|
|
0.30
|
|
|
0.30
|
|
Change in U.K. tax
rate
|
0.05
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.05
|
|
|
0.05
|
|
|
0.05
|
|
Total Special
Items
|
0.25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.25
|
|
|
0.25
|
|
|
0.25
|
|
Earnings from
Ongoing Operations
|
$
|
1.41
|
|
|
$
|
0.58
|
|
|
$
|
0.49
|
|
|
$
|
(0.10)
|
|
|
$
|
2.38
|
|
|
$
|
2.45
|
|
|
$
|
2.30
|
|
Contacts:
|
For news media – Ryan
Hill, 610-774-5997
|
|
For financial
analysts – Lisa Pammer, 610-774-3316
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ppl-corporation-reports-third-quarter-earnings-300354758.html
SOURCE PPL Corporation