Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - PPL Corp | form8k.htm |
Exhibit 99.1
Supplemental Unaudited Financial Information - PPL Global, LLC
The supplemental financial information provided below should be read in conjunction with the audited financial statements and accompanying notes of PPL Corporation in its Annual Report on Form 10-K for the fiscal year ended December 31, 2015 (the "2015 10-K") and the disclosure relevant to the U.K. Regulated Segment under Item 7. Combined Management's Discussion and Analysis of Financial Condition and Results of Operations in the 2015 10-K.
The U.K. Regulated segment consists of PPL Global, LLC which primarily includes WPD's regulated electricity distribution operations, the results of hedging the translation of WPD's earnings from British pound sterling into U.S. dollars, and certain costs such as U.S. income taxes, administrative costs and allocated financing costs. However, the Condensed Consolidated Financial information presented here excludes the allocated financing costs of $21 million and $25 million, after-tax for 2015 and 2014, respectively, that are included in the U.K. Regulated segment "Income Statement Data" as reported in Note 2 to the Financial Statements included in the 2015 10-K. In all other respects, the information presented below was prepared on the same basis as the information presented in the 2015 10-K.
| PPL Global, LLC | ||||
| Condensed Consolidated Balance Sheets | ||||
| At December 31, | ||||
| (Millions of Dollars) |
| 2015 | 2014 | |||
| Assets | ||||
| Current Assets | $ 1,051 | $ 860 | ||
| Property, Plant and Equipment, net | 12,177 | 11,683 | ||
| Goodwill | 2,888 | 3,005 | ||
| Other Noncurrent Assets | 553 | 396 | ||
| Total Assets | $ 16,669 | $ 15,944 | ||
| Liabilities and Equity | ||||
| Current Liabilities (including debt due within one year) | $ 1,636 | $ 1,365 | ||
| Long-term Debt | 7,486 | 7,347 | ||
| Deferred Credits and Other Noncurrent Liabilities | 1,492 | 1,557 | ||
| Equity | 6,055 | 5,675 | ||
| Total Liabilities and Equity | $ 16,669 | $ 15,944 | ||
| PPL Global, LLC | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| For the Years Ended December 31, |
| (Millions of Dollars) | ||||
| 2015 | 2014 | |||
| Cash Flows From Operating Activities | ||||
| Net Income | $ 1,142 | $ 1,007 | ||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||
| Depreciation | 242 | 337 | ||
| Unrealized (gains) losses on derivatives | (88) | (195) | ||
| Adjustment to WPD line loss accrual | - | 65 | ||
| Other | (15) | 99 | ||
| Changes in current assets and current liabilities | (66) | 211 | ||
| Other operating activities | ||||
| Defined benefit plans - funding | (366) | (312) | ||
| Other | 22 | (28) | ||
| Net cash provided by (used in) operating activities | 871 | 1,184 | ||
| Cash Flows from Investing Activities | ||||
| Expenditures for long-lived assets | (1,242) | (1,438) | ||
| Other | 16 | (4) | ||
| Net cash provided by (used in) investing activities | (1,226) | (1,442) | ||
| Cash Flows from Financing Activities | ||||
| Distributions to PPL | (303) | (277) | ||
| Issuance of long-term debt | 833 | - | ||
| Net increase (decrease) in short-term debt | (54) | 98 | ||
| Other | 57 | 93 | ||
| Net cash provided by (used in) financing activities | 533 | (86) | ||
| Effect of Exchange Rates on Cash and Cash Equivalents | (10) | (8) | ||
| Net Increase (Decrease) in Cash and Cash Equivalents | 168 | (352) | ||
| Cash and Cash Equivalents at Beginning of Period | 289 | 641 | ||
| Cash and Cash Equivalents at End of Period | $ 457 | $ 289 |
| PPL Global, LLC | ||||||||
| Condensed Consolidated Statements of Income | ||||||||
| For the Years Ended December 31, | ||||||||
| (Millions of Dollars) |
| 2015 | 2014 | |||
| Operating revenue | $ 2,410 | $ 2,621 | ||
| Other operation and maintenance | 477 | 482 | ||
| Depreciation | 242 | 337 | ||
| Taxes, other than income | 148 | 157 | ||
| Total operating expenses | 867 | 976 | ||
| Other Income (Expense) - net - WPD | 11 | 17 | ||
| Other Income (Expense) - net - Domestic1 | 112 | 110 | ||
| Interest Expense | 386 | 418 | ||
| Income Taxes - Foreign | 128 | 248 | ||
| Income Taxes - Domestic | 10 | 99 | ||
| Net Income | $ 1,142 | $ 1,007 | ||
1 "Other Income (Expense) -net - Domestic" is primarily comprised of the realized and unrealized hedging results from hedging the translation of WPD's earnings from British pound sterling into U.S. dollars.
| The following after-tax gains (losses), which management considers special items, also impacted the PPL Global, LLC's results. | ||||||||
| (Millions of Dollars) | ||||||||
| 2015 | 2014 | Income Statement Line Item | ||||||
| Foreign currency-related economic hedges, net of tax of ($30) and ($68)1 | $ 55 | $ 127 | Other Income (Expense) - net - Domestic | |||||
| WPD Midlands acquistion-related adjustments, net of tax of ($1) and $0 | 2 | Other operation and maintenance | ||||||
| Other: | ||||||||
| Change in U.K. tax rate2 | 78 | Income Taxes - Foreign | ||||||
| Settlement of certain income tax positions3 | 18 | Income Taxes - Domestic | ||||||
| Change in WPD line loss accrual, net of tax of $0 and $134 | (52) | Operating revenue | ||||||
| Total | $ 153 | $ 75 | ||||||
1 Represents unrealized gains (losses) on contracts that economically hedge anticipated GBP-demoninated earnings.
2 The U.K. Finance Act of 2015 reduced the U.K.'s statutory income tax rate. As a result, PPL Global, LLC reduced its net deferred tax liability and recognized a deferred tax benefit in 2015. See Note 5 to the Financial Statements of the 2015 10-K for additional information.
3 Relates to the 2015 settlement of the IRS audit for the tax years 1998-2011. See Note 5 to the Financial Statements of the 2015 10-K for additional information.
4 In March 2014, Ofgem issued its final decision on the DPCR4 line loss incentives and penalties mechanism. As a result, WPD increased its existing liability for over-recovery of line losses. See Note 6 to the Financial Statements of the 2015 10-K for additional information.