Financial Highlights

Financial Highlights – Corporate

For the nine month periods ended September 30 (unaudited)

Click here for Reconciliations of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations for the three and nine months ended September 30, 2016 and 2015.

FINANCIAL
  2016 2015
Operating revenues (millions) $5,685 $5,889
Net income (millions) (a) $1,437 $283
Earnings from ongoing operations (millions) (b) $1,265 $1,195
Total assets (millions)(c) $38,038 $39,246
Earnings per share - Diluted (a) $2.11 $0.42
Earnings from ongoing operations per share - Diluted $1.86 $1.77
Dividends declared per share (12 months ended) $1.5175 $1.4950
Book value per share(c,d) $14.69 $15.22
Market price per share(c)   $34.57 $32.89
Market price/book value ratio 235% 216%
Dividend yield 4.4% 4.5%
Dividend payout ratio (12 months ended) (a,e) 56.2% 102.4%
Dividend payout ratio - earnings from ongoing operations (12 months ended) (e,f) 66.3% 65.9%
Price/earnings ratio (12 months ended) (a,e) 12.8 22.5
Price/earnings ratio - earnings from ongoing operations (12 months ended) (e,f) 15.1 14.5
Return on common equity (12 months ended) (a) 18.2% 8.1%
Return on common equity - earnings from ongoing operations (12 months ended) (f,g) 15.4% 15.4%
OPERATING - DOMESTIC ELECTRICITY SALES (GWh)
Retail delivered 51,405 52,535
Retail supplied 23,645 23,984
Wholesale supplied 1,596 1,789
OPERATING - INTERNATIONAL ELECTRICITY SALES (GWh)
United Kingdom 55,970 57,122

(a)  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 rules under GAAP. 2015 also includes eight months of Supply segment earnings.

(b)  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.

(c)  End of period.

(d)  Based on 679,268 and 671,792 shares of common stock outstanding (in thousands) at September 30, 2016 and September 30, 2015.

(e)  Based on diluted earnings per share.

(f)   Calculated using earnings from ongoing operations, which is a non-GAAP financial measure that includes adjustments described above in footnote (b).

(g)   2015 was adjusted to exclude the equity of PPL Energy Supply, LLC as that business was spun off in 2015.

Financial Highlights – Global

For financial information related to the operations of PPL Global, LLC, click here.

Key Dates
  earnings release Dividend Declaration Ex-Dividend Dividend Record Dividend Payment
2016 Feb. 4 Feb. 26 Mar. 8 Mar. 10 Apr. 1
  Apr. 28 May 25 June 8 June 10 July 1
  July 28 Aug. 26 Sept. 7 Sept. 9 Oct. 3
  Nov. 1 Nov. 18 Dec. 7 Dec. 9 Jan. 3, 2017
Quarterly Results

Financial Highlights