2015 Q4 Form 10-K Financial Statement

#000092222417000010 Filed on February 17, 2017

View on sec.gov

Income Statement

Concept 2015 Q4 2015 Q3 2015 Q2
Revenue $1.780B $1.878B $1.781B
YoY Change -8.53% -0.05% -3.68%
Cost Of Revenue $179.0M $177.0M $157.0M
YoY Change -25.73% 2.31% -15.14%
Gross Profit $1.601B $1.701B $1.624B
YoY Change -6.1% -0.29% -2.4%
Gross Profit Margin 89.94% 90.58% 91.18%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $238.0M $245.0M $232.0M
YoY Change -4.42% -1.61% 85.6%
% of Gross Profit 14.87% 14.4% 14.29%
Operating Expenses $984.0M $1.015B $986.0M
YoY Change -2.09% -0.29% 0.0%
Operating Profit $617.0M $686.0M $638.0M
YoY Change -11.86% -0.29% -5.9%
Interest Expense -$226.0M $221.0M $215.0M
YoY Change 9.71% 3.76% 3.37%
% of Operating Profit -36.63% 32.22% 33.7%
Other Income/Expense, Net $47.00M $75.00M -$102.0M
YoY Change -34.72% -44.85% 37.84%
Pretax Income $438.0M $540.0M $321.0M
YoY Change -22.61% -11.62% -18.94%
Income Tax $33.00M $144.0M $71.00M
% Of Pretax Income 7.53% 26.67% 22.12%
Net Earnings $399.0M $393.0M -$757.0M
YoY Change -42.59% -20.93% -430.57%
Net Earnings / Revenue 22.42% 20.93% -42.5%
Basic Earnings Per Share $0.59 $0.58 -$1.13
Diluted Earnings Per Share $0.59 $0.58 -$1.13
COMMON SHARES
Basic Shares Outstanding 672.8M shares 670.8M shares 668.4M shares
Diluted Shares Outstanding 673.7M shares 671.3M shares

Balance Sheet

Concept 2015 Q4 2015 Q3 2015 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $836.0M $981.0M $846.0M
YoY Change -44.96% -17.42% -33.33%
Cash & Equivalents $836.0M $981.0M $846.0M
Short-Term Investments
Other Short-Term Assets $63.00M $181.0M $140.0M
YoY Change 14.55% 320.93% 185.71%
Inventory $357.0M $321.0M $315.0M
Prepaid Expenses $66.00M $86.00M $136.0M
Receivables $673.0M $713.0M $737.0M
Other Receivables $59.00M $64.00M $106.0M
Total Short-Term Assets $2.646B $2.990B $2.870B
YoY Change -56.09% -48.09% -48.17%
LONG-TERM ASSETS
Property, Plant & Equipment $30.38B $29.96B $29.22B
YoY Change 7.86% -12.89% -15.14%
Goodwill $3.550B $3.613B $3.590B
YoY Change -3.19% -13.71% -16.53%
Intangibles $679.0M $672.0M $658.0M
YoY Change 1.65% -28.21% -30.88%
Long-Term Investments
YoY Change
Other Assets $155.0M $382.0M $339.0M
YoY Change -23.65% 11.37% -5.04%
Total Long-Term Assets $6.273B $6.294B $6.156B
YoY Change -56.47% -11.16% -15.38%
TOTAL ASSETS
Total Short-Term Assets $2.646B $2.990B $2.870B
Total Long-Term Assets $6.273B $6.294B $6.156B
Total Assets $39.30B $39.25B $38.24B
YoY Change -19.57% -18.56% -20.64%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $812.0M $808.0M $902.0M
YoY Change -18.39% -33.11% -23.43%
Accrued Expenses $303.0M $300.0M $191.0M
YoY Change 1.68% -15.25% -14.35%
Deferred Revenue
YoY Change
Short-Term Debt $916.0M $557.0M $1.100B
YoY Change 9.57% -49.32% 36.14%
Long-Term Debt Due $485.0M $1.460B $1.000B
YoY Change -51.5% 521.28% 228.95%
Total Short-Term Liabilities $3.876B $4.468B $4.509B
YoY Change -47.9% -17.44% -12.55%
LONG-TERM LIABILITIES
Long-Term Debt $18.56B $17.75B $17.10B
YoY Change 8.85% -13.53% -17.85%
Other Long-Term Liabilities $489.0M $482.0M $481.0M
YoY Change -6.86% -19.8% -23.41%
Total Long-Term Liabilities $6.943B $6.811B $6.691B
YoY Change -33.78% -17.75% -21.12%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.876B $4.468B $4.509B
Total Long-Term Liabilities $6.943B $6.811B $6.691B
Total Liabilities $10.82B $11.28B $11.20B
YoY Change -39.64% -17.63% -17.88%
SHAREHOLDERS EQUITY
Retained Earnings $2.953B $2.791B $2.654B
YoY Change -54.3% -53.61% -53.99%
Common Stock $9.694B $9.637B $9.571B
YoY Change 2.69% 2.58% 2.2%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $9.919B $10.22B $9.941B
YoY Change
Total Liabilities & Shareholders Equity $39.30B $39.25B $38.24B
YoY Change -19.14% -18.56% -20.64%

Cashflow Statement

Concept 2015 Q4 2015 Q3 2015 Q2
OPERATING ACTIVITIES
Net Income $399.0M $393.0M -$757.0M
YoY Change -42.59% -20.93% -430.57%
Depreciation, Depletion And Amortization $238.0M $245.0M $232.0M
YoY Change -4.42% -1.61% 85.6%
Cash From Operating Activities $584.0M $718.0M $861.0M
YoY Change -5.35% -35.61% 37.32%
INVESTING ACTIVITIES
Capital Expenditures -$978.0M -$889.0M -$860.0M
YoY Change -9.86% -5.02% 6.17%
Acquisitions
YoY Change
Other Investing Activities $2.000M $1.000M $126.0M
YoY Change -99.73% -98.46% -214.55%
Cash From Investing Activities -$976.0M -$888.0M -$734.0M
YoY Change 174.93% 1.95% -20.22%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 251.0M 302.0M -388.0M
YoY Change 53.05% -219.84% -239.07%
NET CHANGE
Cash From Operating Activities 584.0M 718.0M 861.0M
Cash From Investing Activities -976.0M -888.0M -734.0M
Cash From Financing Activities 251.0M 302.0M -388.0M
Net Change In Cash -141.0M 132.0M -261.0M
YoY Change -133.1% -1750.0% 1764.29%
FREE CASH FLOW
Cash From Operating Activities $584.0M $718.0M $861.0M
Capital Expenditures -$978.0M -$889.0M -$860.0M
Free Cash Flow $1.562B $1.607B $1.721B
YoY Change -8.23% -21.65% 19.76%

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NetPeriodicDefinedBenefitCostBenefitChangeInDiscountRatePerShare
0.05
CY2016 ppl Notional Amount Of Terminated Swaps
NotionalAmountOfTerminatedSwaps
32000000 USD
CY2016 ppl Number Of Days Notice Required To Redeem Shares
NumberOfDaysNoticeRequiredToRedeemShares
P45D
CY2015 ppl Number Of Distribution Network Operators
NumberOfDistributionNetworkOperators
4
CY2016 ppl Number Of Major Tax Jurisdictions
NumberOfMajorTaxJurisdictions
4
CY2014 ppl Other Comprehensive Income Reclassification Adjustment On Equity Investees Other Comprehensive Income Included In Net Income Tax
OtherComprehensiveIncomeReclassificationAdjustmentOnEquityInvesteesOtherComprehensiveIncomeIncludedInNetIncomeTax
0 USD
CY2015 ppl Other Comprehensive Income Reclassification Adjustment On Equity Investees Other Comprehensive Income Included In Net Income Tax
OtherComprehensiveIncomeReclassificationAdjustmentOnEquityInvesteesOtherComprehensiveIncomeIncludedInNetIncomeTax
0 USD
CY2016 ppl Other Comprehensive Income Reclassification Adjustment On Equity Investees Other Comprehensive Income Included In Net Income Tax
OtherComprehensiveIncomeReclassificationAdjustmentOnEquityInvesteesOtherComprehensiveIncomeIncludedInNetIncomeTax
0 USD
CY2014 ppl Other Nonoperating Expense Miscellaneous
OtherNonoperatingExpenseMiscellaneous
8000000 USD
CY2015 ppl Other Nonoperating Expense Miscellaneous
OtherNonoperatingExpenseMiscellaneous
17000000 USD
CY2016 ppl Other Nonoperating Expense Miscellaneous
OtherNonoperatingExpenseMiscellaneous
13000000 USD
CY2014 ppl Other Nonoperating Income Miscellaneous
OtherNonoperatingIncomeMiscellaneous
7000000 USD
CY2015 ppl Other Nonoperating Income Miscellaneous
OtherNonoperatingIncomeMiscellaneous
6000000 USD
CY2016 ppl Other Nonoperating Income Miscellaneous
OtherNonoperatingIncomeMiscellaneous
6000000 USD
CY2014 ppl Payments For Hedge Operating Activities
PaymentsForHedgeOperatingActivities
0 USD
CY2015 ppl Payments For Hedge Operating Activities
PaymentsForHedgeOperatingActivities
101000000 USD
CY2016 ppl Payments For Hedge Operating Activities
PaymentsForHedgeOperatingActivities
9000000 USD
CY2014 ppl Proceeds From Contributions From Discontinued Operations
ProceedsFromContributionsFromDiscontinuedOperations
1167000000 USD
CY2015 ppl Proceeds From Contributions From Discontinued Operations
ProceedsFromContributionsFromDiscontinuedOperations
132000000 USD
CY2016 ppl Proceeds From Contributions From Discontinued Operations
ProceedsFromContributionsFromDiscontinuedOperations
0 USD
CY2015Q4 ppl Property Plant And Equipment Net Nonregulated
PropertyPlantAndEquipmentNetNonregulated
351000000 USD
CY2016Q4 ppl Property Plant And Equipment Net Nonregulated
PropertyPlantAndEquipmentNetNonregulated
279000000 USD
CY2014 ppl Purchase Contracts
PurchaseContracts
10559000 shares
CY2015 ppl Purchase Contracts
PurchaseContracts
0 shares
CY2016 ppl Purchase Contracts
PurchaseContracts
0 shares
CY2014 ppl Purchased Power And Gas
PurchasedPowerAndGas
924000000 USD
CY2015 ppl Purchased Power And Gas
PurchasedPowerAndGas
855000000 USD
CY2016 ppl Purchased Power And Gas
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706000000 USD
CY2016Q2 ppl Repayment Of Senior Debt Related To Matured Cash Flow Hedge
RepaymentOfSeniorDebtRelatedToMaturedCashFlowHedge
460000000 USD
CY2016Q4 ppl State Loss Carryforwards And Valuation Allowances Net Spinoff Segment
StateLossCarryforwardsAndValuationAllowancesNetSpinoffSegment
77000000 USD
CY2014 ppl Stock Based Compensation
StockBasedCompensation
28000000 USD
CY2015 ppl Stock Based Compensation
StockBasedCompensation
5000000 USD
CY2016 ppl Stock Based Compensation
StockBasedCompensation
-31000000 USD
CY2015 ppl Tax Adjustments Settlements And Unusual Provisions Recorded To Continuing Operations
TaxAdjustmentsSettlementsAndUnusualProvisionsRecordedToContinuingOperations
-12000000 USD
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4000000 USD
CY2014 ppl Tax Expense Benefits From Stock Options Exercised Offset Additional Paid In Capital
TaxExpenseBenefitsFromStockOptionsExercisedOffsetAdditionalPaidInCapital
-4000000 USD
CY2015 ppl Tax Expense Benefits From Stock Options Exercised Offset Additional Paid In Capital
TaxExpenseBenefitsFromStockOptionsExercisedOffsetAdditionalPaidInCapital
0 USD
CY2016 ppl Tax Expense Benefits From Stock Options Exercised Offset Additional Paid In Capital
TaxExpenseBenefitsFromStockOptionsExercisedOffsetAdditionalPaidInCapital
0 USD
CY2014 ppl Tax Expense Benefits From Stock Options Exercised Offset Earnings Reinvested
TaxExpenseBenefitsFromStockOptionsExercisedOffsetEarningsReinvested
0 USD
CY2015 ppl Tax Expense Benefits From Stock Options Exercised Offset Earnings Reinvested
TaxExpenseBenefitsFromStockOptionsExercisedOffsetEarningsReinvested
0 USD
CY2016 ppl Tax Expense Benefits From Stock Options Exercised Offset Earnings Reinvested
TaxExpenseBenefitsFromStockOptionsExercisedOffsetEarningsReinvested
-7000000 USD
CY2014 ppl Tax Expense Benefits In Other Comprehensive Income
TaxExpenseBenefitsInOtherComprehensiveIncome
-190000000 USD
CY2015 ppl Tax Expense Benefits In Other Comprehensive Income
TaxExpenseBenefitsInOtherComprehensiveIncome
-2000000 USD
CY2016 ppl Tax Expense Benefits In Other Comprehensive Income
TaxExpenseBenefitsInOtherComprehensiveIncome
-6000000 USD
CY2014 ppl Taxes Other Than Income Domestic Property And Other
TaxesOtherThanIncomeDomesticPropertyAndOther
58000000 USD
CY2015 ppl Taxes Other Than Income Domestic Property And Other
TaxesOtherThanIncomeDomesticPropertyAndOther
62000000 USD
CY2016 ppl Taxes Other Than Income Domestic Property And Other
TaxesOtherThanIncomeDomesticPropertyAndOther
66000000 USD
CY2014 ppl Taxes Other Than Income Foreign Property Tax Expense Benefit
TaxesOtherThanIncomeForeignPropertyTaxExpenseBenefit
157000000 USD
CY2015 ppl Taxes Other Than Income Foreign Property Tax Expense Benefit
TaxesOtherThanIncomeForeignPropertyTaxExpenseBenefit
148000000 USD
CY2016 ppl Taxes Other Than Income Foreign Property Tax Expense Benefit
TaxesOtherThanIncomeForeignPropertyTaxExpenseBenefit
135000000 USD
CY2015 ppl Taxes Other Than Income State Gross Receipts Previously Recorded Reserves
TaxesOtherThanIncomeStateGrossReceiptsPreviouslyRecordedReserves
-17000000 USD
CY2014 ppl Taxes Other Than Income State Gross Receipts Tax Expense Benefit
TaxesOtherThanIncomeStateGrossReceiptsTaxExpenseBenefit
102000000 USD
CY2015 ppl Taxes Other Than Income State Gross Receipts Tax Expense Benefit
TaxesOtherThanIncomeStateGrossReceiptsTaxExpenseBenefit
89000000 USD
CY2016 ppl Taxes Other Than Income State Gross Receipts Tax Expense Benefit
TaxesOtherThanIncomeStateGrossReceiptsTaxExpenseBenefit
100000000 USD
CY2014 ppl Total Increase Decrease To Federal Income Tax On Income From Continuing Operations At Statutory Tax Rate
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-53000000 USD
CY2015 ppl Total Increase Decrease To Federal Income Tax On Income From Continuing Operations At Statutory Tax Rate
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-259000000 USD
CY2016 ppl Total Increase Decrease To Federal Income Tax On Income From Continuing Operations At Statutory Tax Rate
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-245000000 USD
CY2015Q4 ppl Total Other Intangible Assets Finite Infinite
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1095000000 USD
CY2016Q4 ppl Total Other Intangible Assets Finite Infinite
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1142000000 USD
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U.K.StatutoryIncomeTaxRateReductionInYearOne
0.19
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0.50
CY2015Q4 ppl Undistributed Foreign Earnings Reinvested
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4600000000 USD
CY2016Q4 ppl Undistributed Foreign Earnings Reinvested
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5500000000 USD
CY2014 ppl Unrealized Gains Losses On Derivatives And Other Hedging Activities
UnrealizedGainsLossesOnDerivativesAndOtherHedgingActivities
187000000 USD
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UnrealizedGainsLossesOnDerivativesAndOtherHedgingActivities
77000000 USD
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UnrealizedGainsLossesOnDerivativesAndOtherHedgingActivities
-19000000 USD
CY2015 ppl Valuation Rollforward Specific Transaction Deductions
ValuationRollforwardSpecificTransactionDeductions
44000000 USD
CY2016 ppl Valuation Rollforward Specific Transaction Deductions
ValuationRollforwardSpecificTransactionDeductions
19000000 USD
CY2016 ppl Valuation Rollforward Specific Transaction Deductions Exchange Rates
ValuationRollforwardSpecificTransactionDeductionsExchangeRates
65000000 USD
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VotesPerShareOfCommonStock
1 vote
CY2015 ppl Votes Per Share Of Common Stock
VotesPerShareOfCommonStock
1 vote
CY2016 ppl Votes Per Share Of Common Stock
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1 vote
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820000000 USD
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666000000 USD
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165000000 USD
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134000000 USD
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10000000 USD
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80000000 USD
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2700000000 USD
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2000000 USD
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9000000 USD
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5000000 USD
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CY2015 us-gaap Asset Retirement Obligation Liabilities Settled
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CY2016 us-gaap Asset Retirement Obligation Liabilities Settled
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29000000 USD
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CY2016 us-gaap Capital Expenditures Incurred But Not Yet Paid
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CashProvidedByUsedInInvestingActivitiesDiscontinuedOperations
497000000 USD
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462000000 USD
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CY2016Q4 us-gaap Commitments And Contingencies
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0.38
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0.01
CY2016Q4 us-gaap Common Stock Par Or Stated Value Per Share
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CY2015Q4 us-gaap Common Stock Shares Authorized
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CY2016Q4 us-gaap Common Stock Shares Authorized
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CY2016Q4 us-gaap Common Stock Shares Outstanding
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87000000 USD
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250000000 USD
CY2015Q4 us-gaap Deferred Tax Assets Valuation Allowance
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CY2016Q4 us-gaap Deferred Tax Liabilities Noncurrent
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CY2015Q4 us-gaap Deferred Tax Liabilities Regulatory Assets
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CY2015Q4 us-gaap Deferred Tax Liabilities Property Plant And Equipment
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CY2015Q4 us-gaap Defined Benefit Pension Plan Liabilities Noncurrent
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CY2016 us-gaap Depreciation
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63000000 USD
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198000000 USD
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CY2016 us-gaap Discontinued Operation Tax Effect Of Discontinued Operation
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CY2015Q4 us-gaap Dividend Payable Date To Be Paid Day Month And Year
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2.64
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0.71
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0.71
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0.68
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2.80
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1.01
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0.71
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0.71
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0.69
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2.79
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2068000000 USD
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2550000000 USD
CY2014 us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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552000000 USD
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250000000 USD
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405000000 USD
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1603000000 USD
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2.19
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2.37
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55000000 USD
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24000000 USD
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16000000 USD
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745000000 USD
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724000000 USD
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893000000 USD
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8000000 USD
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28000000 USD
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31000000 USD
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19000000 USD
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53000000 USD
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2772000 shares
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2854000 shares
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367000000 USD
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35000000 USD
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23000000 USD
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262000000 USD
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482000000 USD
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518000000 USD
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1150000000 USD
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0 USD
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1000000 USD
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CY2016 us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;text-decoration:underline;">Changes in Classification</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The classification of certain amounts in the </font><font style="font-family:inherit;font-size:10pt;">2015</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2014</font><font style="font-family:inherit;font-size:10pt;"> financial statements have been changed to conform to the current presentation. These reclassifications did not affect the Registrants' net income or equity.</font></div></div>
CY2016 us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">21. New Accounting Guidance Pending Adoption</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">(All Registrants)</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;text-decoration:underline;">Accounting for Revenue from Contracts with Customers</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the Financial Accounting Standards Board (FASB) issued accounting guidance that establishes a comprehensive new model for the recognition of revenue from contracts with customers. This model is based on the core principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For public business entities, this guidance can be applied using either a full retrospective or modified retrospective transition method, beginning in annual reporting periods after December 15, 2017 and interim periods within those years. Public business entities may early adopt this guidance in annual reporting periods beginning after December 15, 2016. The Registrants will adopt this guidance effective January 1, 2018.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Registrants have performed an assessment of a significant portion of their revenue under this new guidance to determine its effect on their current revenue recognition policies, and at this time they do not believe it will have a material impact. However, the Registrants will continue to monitor the development of industry specific application guidance which could have an impact on their assessments. The Registrants will determine the transition method they will apply after the industry specific application guidance is final and the implications of using either the full retrospective or modified retrospective transition methods are known. </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;text-decoration:underline;">Accounting for Leases</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued accounting guidance for leases. This new guidance requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). For income statement purposes, the FASB retained a dual model for lessees, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Lessor accounting under the new guidance is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard. Similar to current practice, lessors will classify leases as operating, direct financing, or sales-type.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition, and provides for certain practical expedients. Transition will require application of the new guidance at the beginning of the earliest comparative period presented.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Registrants are currently assessing the impact of adopting this guidance.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;text-decoration:underline;">Accounting for Financial Instrument Credit Losses</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In June 2016, the FASB issued accounting guidance that requires the use of a current expected credit loss (CECL) model for the measurement of credit losses on financial instruments within the scope of this guidance, which includes accounts receivable. The CECL model requires an entity to measure credit losses using historical information, current information and reasonable and supportable forecasts of future events, rather than the incurred loss impairment model required under current GAAP.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For public business entities, this guidance will be applied using a modified retrospective approach and is effective for fiscal years beginning after December 15, 2019, and interim periods within those years. All entities may early adopt this guidance beginning after December 15, 2018, including interim periods within those years.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Registrants are currently assessing the impact of adopting this guidance and the period they will adopt it.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;text-decoration:underline;">Simplifying the Test for Goodwill Impairment</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2017, the FASB issued accounting guidance that simplifies the test for goodwill impairment by eliminating the second step of the quantitative test. The second step of the quantitative test requires a calculation of the implied fair value of goodwill, which is determined in the same manner as the amount of goodwill in a business combination. Under this new guidance, an entity will now compare the estimated fair value of a reporting unit with its carrying value and recognize an impairment charge for the amount the carrying amount exceeds the fair value of the reporting unit. </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For public business entities, this guidance will be applied prospectively and is effective for annual or any interim goodwill impairment tests for fiscal years beginning after December 15, 2019. All entities may early adopt this guidance for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Registrants are currently assessing the impact of adopting this guidance and the period they will adopt it.</font></div></div>
CY2016 us-gaap Guarantees Indemnifications And Warranties Policies
GuaranteesIndemnificationsAndWarrantiesPolicies
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;text-decoration:underline;">Guarantees</font><font style="font-family:Arial;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">(All Registrants)</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Generally, the initial measurement of a guarantee liability is the fair value of the guarantee at its inception. However, there are certain guarantees excluded from the scope of accounting guidance and other guarantees that are not subject to the initial recognition and measurement provisions of accounting guidance that only require disclosure. See Note 13 for further discussion of recorded and unrecorded guarantees.</font></div></div>
CY2016 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;text-decoration:underline;">Use of Estimates</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></div></div>

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