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SCHEDULE I - CONDENSED UNCONSOLICATED FINANCIAL STATEMENTS AND NOTES TO CONDENSED UNCONSOLIDATED FINANCIAL STATEMENTS | 12 Months Ended
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Dec. 31, 2017
PPL Corp [Member] |
Condensed Unconsolidated Financial Information [Line Items] |
Schedule I - Condensed Unconsolidated Financial Information | SCHEDULE I - PPL CORPORATION CONDENSED UNCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, (Millions of Dollars, except share data)
| 2017 |  | 2016 |  | 2015
Operating Revenues | $ | — |  |  | $ | — |  |  | $ | — |
Operating Expenses |  |  |  |  |
Other operation and maintenance | 2 |  |  | 2 |  |  | 9 |
Total Operating Expenses | 2 |  |  | 2 |  |  | 9 |
Operating Loss | (2 | ) |  | (2 | ) |  | (9 | )
Other Income (Expense) - net |  |  |  |  |
Equity in earnings of subsidiaries | 1,175 |  |  | 1,915 |  |  | 711 |
Other income (expense) | (1 | ) |  | (1 | ) |  | (15 | )
Total | 1,174 |  |  | 1,914 |  |  | 696 |
Interest Expense | 8 |  |  | 8 |  |  | 9 |
Interest Expense with Affiliates | 16 |  |  | 10 |  |  | 10 |
Income Before Income Taxes | 1,148 |  |  | 1,894 |  |  | 668 |
Income Taxes | 20 |  |  | (8 | ) |  | (14 | )
Net Income | $ | 1,128 |  |  | $ | 1,902 |  |  | $ | 682 |
Total other comprehensive income (loss) | 356 |  |  | (1,050 | ) |  | (430 | )
Comprehensive Income Attributable to PPL Shareowners | $ | 1,484 |  |  | $ | 852 |  |  | $ | 252 |
Earnings Per Share of Common Stock: |  |  |  |  |
Net Income Available to PPL Common Shareowners: |  |  |  |  |
Basic | $ | 1.64 |  |  | $ | 2.80 |  |  | $ | 1.01 |
Diluted | $ | 1.64 |  |  | $ | 2.79 |  |  | $ | 1.01 |
Weighted-Average Shares of Common Stock Outstanding (in thousands) |  |  |  |  |
Basic | 685,240 |  |  | 677,592 |  |  | 669,814 |
Diluted | 687,334 |  |  | 680,446 |  |  | 672,586 |
The accompanying Notes to Condensed Unconsolidated Financial Statements are an integral part of the financial statements. SCHEDULE I - PPL CORPORATION CONDENSED UNCONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, (Millions of Dollars)
| 2017 |  | 2016 |  | 2015
Cash Flows from Operating Activities |  |  |  |  |
Net cash provided by (used in) operating activities | $ | 1,108 |  |  | $ | 1,563 |  |  | $ | 993 |
Cash Flows from Investing Activities |  |  |  |  |
Capital contributions to affiliated subsidiaries | (585 | ) |  | (308 | ) |  | (491 | )
Return of capital from affiliated subsidiaries | — |  |  | — |  |  | 112 |
Net cash provided by (used in) investing activities | (585 | ) |  | (308 | ) |  | (379 | )
Cash Flows from Financing Activities |  |  |  |  |
Issuance of equity, net of issuance costs | 453 |  |  | 144 |  |  | 203 |
Net increase (decrease) in short-term debt with affiliates | 113 |  |  | (341 | ) |  | 215 |
Payment of common stock dividends | (1,072 | ) |  | (1,030 | ) |  | (1,004 | )
Other | (21 | ) |  | (24 | ) |  | (28 | )
Net cash provided by (used in) financing activities | (527 | ) |  | (1,251 | ) |  | (614 | )
Net Increase (Decrease) in Cash and Cash Equivalents |  |  |  |  |  |  |  |
Cash and Cash Equivalents at Beginning of Period | 4 |  |  | — |  |  | — |
Cash and Cash Equivalents at End of Period | $ | — |  |  | $ | 4 |  |  | $ | — |
Supplemental Disclosures of Cash Flow Information: |  |  |  |  |
Cash Dividends Received from Subsidiaries | $ | 1,253 |  |  | $ | 1,510 |  |  | $ | 1,198 |
The accompanying Notes to Condensed Unconsolidated Financial Statements are an integral part of the financial statements. SCHEDULE I - PPL CORPORATION CONDENSED UNCONSOLIDATED BALANCE SHEETS AT DECEMBER 31, (Millions of Dollars, shares in thousands)
| 2017 |  | 2016
Assets |  |  |
Current Assets |  |  |
Cash and cash equivalents | $ | — |  |  | $ | 4 |
Accounts Receivable |  |  |
Other | 7 |  |  | 7 |
Affiliates | 17 |  |  | 10 |
Price risk management assets | 196 |  |  | 63 |
Total Current Assets | 220 |  |  | 84 |
Investments |  |  |
Affiliated companies at equity | 11,141 |  |  | 10,160 |
Other Noncurrent Assets |  |  |
Deferred income taxes | 46 |  |  | 70 |
Price risk management assets | 186 |  |  | 284 |
Other noncurrent assets | 1 |  |  | 1 |
Total Other Noncurrent Assets | 233 |  |  | 355 |
Total Assets | $ | 11,594 |  |  | $ | 10,599 |
Liabilities and Equity |  |  |
Current Liabilities |  |  |
Short-term debt with affiliates | $ | 157 |  |  | $ | 44 |
Accounts payable with affiliates | 2 |  |  | 30 |
Dividends | 273 |  |  | 259 |
Price risk management liabilities | 233 |  |  | 237 |
Other current liabilities | 19 |  |  | 20 |
Total Current Liabilities | 684 |  |  | 590 |
Deferred Credits and Other Noncurrent Liabilities | 149 |  |  | 110 |
Equity |  |  |
Common stock - $0.01 par value (a) | 7 |  |  | 7 |
Additional paid-in capital | 10,305 |  |  | 9,841 |
Earnings reinvested | 3,871 |  |  | 3,829 |
Accumulated other comprehensive loss | (3,422 | ) |  | (3,778 | )
Total Equity | 10,761 |  |  | 9,899 |
Total Liabilities and Equity | $ | 11,594 |  |  | $ | 10,599 |
(a) | 1,560,000 shares authorized; 693,398 and 679,731 shares issued and outstanding at December 31, 2017 and December 31, 2016.
The accompanying Notes to Condensed Unconsolidated Financial Statements are an integral part of the financial statements. SCHEDULE I - PPL CORPORATION NOTES TO CONDENSED UNCONSOLIDATED FINANCIAL STATEMENTS 1. Basis of Presentation PPL Corporation is a holding company and conducts substantially all of its business operations through its subsidiaries. Substantially all of its consolidated assets are held by such subsidiaries. PPL Corporation uses the equity method to account for its investments in entities in which it has a controlling financial interest. PPL Corporation's cash flow and its ability to meet its obligations are largely dependent upon the earnings of these subsidiaries and the distribution or other payment of such earnings to it in the form of dividends, loans or advances or repayment of loans and advances from it. These condensed financial statements and related footnotes have been prepared in accordance with Reg. §210.12-04 of Regulation S-X. These statements should be read in conjunction with the consolidated financial statements and notes thereto of PPL Corporation. PPL Corporation indirectly or directly owns all of the ownership interests of its significant subsidiaries. PPL Corporation relies on dividends or loans from its subsidiaries to fund PPL Corporation's dividends to its common shareowners and to meet its other cash requirements. See Note 7 to PPL Corporation's consolidated financial statements for discussions related to restricted net assets of its subsidiaries for the purposes of transferring funds to PPL in the form of distributions, loans or advances. 2. Commitments and Contingencies See Note 13 to PPL Corporation's consolidated financial statements for commitments and contingencies of its subsidiaries. Guarantees and Other Assurances PPL Corporation's subsidiaries are separate and distinct legal entities and have no obligation to pay any amounts that may become due under PPL Corporation's guarantees or other assurances or to make any funds available for such payment. PPL Corporation fully and unconditionally guarantees the payment of principal, premium and interest on all of the debt securities of PPL Capital Funding. The estimated maximum potential amount of future payments that could be required under the guarantees at December 31, 2017 was $9.7 billion. These guarantees will expire in 2073. The probability of expected payment under these guarantees is remote.
L G And E And K U Energy L L C Unconsolidated [Member] |
Condensed Unconsolidated Financial Information [Line Items] |
Schedule I - Condensed Unconsolidated Financial Information | SCHEDULE I - LG&E and KU Energy LLC CONDENSED UNCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, (Millions of Dollars)
| 2017 |  | 2016 |  | 2015
Other Income (Expense) - net |  |  |  |  |
Equity in Earnings of Subsidiaries | $ | 397 |  |  | $ | 452 |  |  | $ | 390 |
Interest Income with Affiliate | 14 |  |  | 9 |  |  | 4 |
Total | 411 |  |  | 461 |  |  | 394 |
Interest Expense | 30 |  |  | 29 |  |  | 39 |
Interest Expense with Affiliate | 20 |  |  | 18 |  |  | 5 |
Income Before Income Taxes | 361 |  |  | 414 |  |  | 350 |
Income Tax Expense (Benefit) | 45 |  |  | (15 | ) |  | (14 | )
Net Income | $ | 316 |  |  | $ | 429 |  |  | $ | 364 |
Total other comprehensive loss | (18 | ) |  | (24 | ) |  | (1 | )
Comprehensive Income Attributable to Member | $ | 298 |  |  | $ | 405 |  |  | $ | 363 |
The accompanying Notes to Condensed Unconsolidated Financial Statements are an integral part of the financial statements. SCHEDULE I - LG&E and KU Energy LLC CONDENSED UNCONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, (Millions of Dollars)
| 2017 |  | 2016 |  | 2015
Cash Flows from Operating Activities |  |  |  |  |
Net cash provided by (used in) operating activities | $ | 401 |  |  | $ | 285 |  |  | $ | 246 |
Cash Flows from Investing Activities |  |  |  |  |  |  |  |
Capital contributions to affiliated subsidiaries | (30 | ) |  | (91 | ) |  | (140 | )
Net decrease (increase) in notes receivable from affiliates | (28 | ) |  | 47 |  |  | 73 |
Net cash provided by (used in) investing activities | (58 | ) |  | (44 | ) |  | (67 | )
Cash Flows from Financing Activities |  |  |  |  |  |  |  |
Net increase (decrease) in notes payable with affiliates | 58 |  |  | 90 |  |  | 315 |
Net increase (decrease) in short-term debt | — |  |  | (75 | ) |  | — |
Retirement of long-term debt | — |  |  | — |  |  | (400 | )
Contribution from member | — |  |  | 61 |  |  | 125 |
Distribution to member | (402 | ) |  | (316 | ) |  | (219 | )
Net cash provided by (used in) financing activities | (344 | ) |  | (240 | ) |  | (179 | )
Net Increase (Decrease) in Cash and Cash Equivalents | (1 | ) |  | 1 |  |  | — |
Cash and Cash Equivalents at Beginning of Period | 1 |  |  | — |  |  | — |
Cash and Cash Equivalents at End of Period | $ | — |  |  | $ | 1 |  |  | $ | — |
Supplemental disclosures of cash flow information: |  |  |  |  |  |  |  |
Cash Dividends Received from Subsidiaries | $ | 418 |  |  | $ | 376 |  |  | $ | 272 |
The accompanying Notes to Condensed Unconsolidated Financial Statements are an integral part of the financial statements. SCHEDULE I - LG&E and KU Energy LLC CONDENSED UNCONSOLIDATED BALANCE SHEETS AT DECEMBER 31, (Millions of Dollars)
| 2017 |  | 2016
Assets |  |  |  |  |
Current Assets |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | 1 |
Accounts receivable | 1 |  |  | — |
Accounts receivable from affiliates | 8 |  |  | 23 |
Income taxes receivable | 1 |  |  | 31 |
Notes receivable from affiliates | 1,035 |  |  | 1,007 |
Total Current Assets | 1,045 |  |  | 1,062 |
Investments |  |  |  |  |
Affiliated companies at equity | 5,209 |  |  | 5,219 |
Other Noncurrent Assets |  |  |  |  |
Deferred income taxes | 263 |  |  | 227 |
Total Assets | $ | 6,517 |  |  | $ | 6,508 |
Liabilities and Equity |  |  |  |  |
Current Liabilities |  |  |  |  |
Notes payable to affiliates | $ | 241 |  |  | $ | 179 |
Accounts payable to affiliates | 469 |  |  | 450 |
Taxes | 35 |  |  | — |
Other current liabilities | 5 |  |  | 6 |
Total Current Liabilities | 750 |  |  | 635 |
Long-term Debt |  |  |  |  |
Long-term debt | 722 |  |  | 721 |
Notes payable to affiliates | 476 |  |  | 480 |
Total Long-term Debt | 1,198 |  |  | 1,201 |
Deferred Credits and Other Noncurrent Liabilities | 6 |  |  | 5 |
Equity | 4,563 |  |  | 4,667 |
Total Liabilities and Equity | $ | 6,517 |  |  | $ | 6,508 |
The accompanying Notes to Condensed Unconsolidated Financial Statements are an integral part of the financial statements. Schedule I - LG&E and KU Energy LLC Notes to Condensed Unconsolidated Financial Statements 1. Basis of Presentation LG&E and KU Energy LLC (LKE) is a holding company and conducts substantially all of its business operations through its subsidiaries. Substantially all of its consolidated assets are held by such subsidiaries. LKE uses the equity method to account for its investments in entities in which it has a controlling financial interest. LKE's cash flow and its ability to meet its obligations are largely dependent upon the earnings of these subsidiaries and the distribution or other payment of such earnings to it in the form of dividends or repayment of loans and advances from the subsidiaries. These condensed financial statements and related footnotes have been prepared in accordance with Reg. §210.12-04 of Regulation S-X. These statements should be read in conjunction with the consolidated financial statements and notes thereto of LKE. LKE indirectly or directly owns all of the ownership interests of its significant subsidiaries. LKE relies primarily on dividends from its subsidiaries to fund LKE's distributions to its member and to meet its other cash requirements. See Note 7 to LKE's consolidated financial statements for discussions related to restricted net assets of its subsidiaries for the purposes of transferring funds to LKE in the form of distributions, loans or advances. 2. Commitments and Contingencies See Note 13 to LKE's consolidated financial statements for commitments and contingencies of its subsidiaries. Guarantees LKE provides certain indemnifications covering the due and punctual payment, performance and discharge by each party of its respective obligations. The most comprehensive of these guarantees is the LKE guarantee covering operational, regulatory and environmental commitments and indemnifications made by WKE under a 2009 Transaction Termination Agreement. This guarantee has a term of 12 years ending July 2021, and a maximum exposure of $200 million, exclusive of certain items such as government fines and penalties that may exceed the maximum. Another WKE-related LKE guarantee formerly covered other indemnifications related to the purchase price of excess power, had a term expiring in 2023, and a maximum exposure of $100 million, which excess power matter and related indemnifications had been the subject of a dispute and legal proceeding among the parties. In December 2017, the parties executed settlement agreements which resolved all claims relating to the excess power matter, and terminated such guarantee, for $11 million. Additionally, LKE has indemnified various third parties related to historical obligations for other divested subsidiaries and affiliates. The indemnifications vary by entity and the maximum exposures range from being capped at the sale price to no specified maximum. LKE could be required to perform on these indemnifications in the event of covered losses or liabilities being claimed by an indemnified party. LKE cannot predict the ultimate outcomes of the various indemnification scenarios, but does not expect such outcomes to result in significant losses above the amounts recorded. 3. Long-Term Debt See Note 7 to LKE's consolidated financial statements for the terms of LKE's outstanding senior unsecured notes outstanding. Of the total outstanding, $475 million matures in 2020 and $250 million matures in 2021. These maturities are based on stated maturities. Also see Note 7 to LKE's consolidated financial statements for the terms of LKE's $400 million note payable to a PPL affiliate. This note matures in 2026. LKE's $76 million note payable to LG&E and KU Services Company bears a variable interest rate, which resets each quarter based on LIBOR. The rate at December 31, 2017 was 2.1%. This note matures in 2019.

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