2017 Q4 Form 10-Q Financial Statement

#000092222417000066 Filed on November 01, 2017

View on sec.gov

Income Statement

Concept 2017 Q4 2017 Q3 2016 Q3
Revenue $1.926B $1.845B $1.889B
YoY Change 5.13% -2.33% 0.59%
Cost Of Revenue $191.0M $143.0M $151.0M
YoY Change 9.14% -5.3% -14.69%
Gross Profit $1.735B $1.702B $1.738B
YoY Change 4.71% -2.07% 2.18%
Gross Profit Margin 90.08% 92.25% 92.01%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $288.0M $284.0M $249.0M
YoY Change 10.77% 14.06% 1.63%
% of Gross Profit 16.6% 16.69% 14.33%
Operating Expenses $819.0M $966.0M $952.0M
YoY Change -13.15% 1.47% -6.21%
Operating Profit $749.0M $736.0M $786.0M
YoY Change 4.9% -6.36% 14.58%
Interest Expense -$232.0M $230.0M $223.0M
YoY Change 6.91% 3.14% 0.9%
% of Operating Profit -30.97% 31.25% 28.37%
Other Income/Expense, Net -$143.0M -$35.00M $49.00M
YoY Change -234.91% -171.43% -34.67%
Pretax Income $541.0M $471.0M $612.0M
YoY Change -10.28% -23.04% 13.33%
Income Tax $142.0M $116.0M $139.0M
% Of Pretax Income 26.25% 24.63% 22.71%
Net Earnings $78.00M $355.0M $473.0M
YoY Change -83.23% -24.95% 20.36%
Net Earnings / Revenue 4.05% 19.24% 25.04%
Basic Earnings Per Share $0.11 $0.52 $0.70
Diluted Earnings Per Share $0.11 $0.51 $0.69
COMMON SHARES
Basic Shares Outstanding 688.5M shares 686.6M shares 678.1M shares
Diluted Shares Outstanding 688.7M shares 680.3M shares

Balance Sheet

Concept 2017 Q4 2017 Q3 2016 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $485.0M $676.0M $416.0M
YoY Change 42.23% 62.5% -57.59%
Cash & Equivalents $485.0M $676.0M $416.0M
Short-Term Investments
Other Short-Term Assets $50.00M $56.00M $37.00M
YoY Change -3.85% 51.35% -79.56%
Inventory $320.0M $323.0M $346.0M
Prepaid Expenses $66.00M $101.0M $97.00M
Receivables $681.0M $617.0M $687.0M
Other Receivables $100.0M $56.00M $45.00M
Total Short-Term Assets $2.294B $2.331B $2.099B
YoY Change 10.98% 11.05% -29.8%
LONG-TERM ASSETS
Property, Plant & Equipment $33.09B $31.82B $29.97B
YoY Change 10.04% 6.16% 0.02%
Goodwill $3.258B $3.134B $3.175B
YoY Change 6.47% -1.29% -12.12%
Intangibles $697.0M $666.0M $693.0M
YoY Change -0.43% -3.9% 3.13%
Long-Term Investments
YoY Change
Other Assets $135.0M $143.0M $152.0M
YoY Change -10.6% -5.92% -60.21%
Total Long-Term Assets $6.093B $6.611B $5.970B
YoY Change -1.31% 10.74% -5.15%
TOTAL ASSETS
Total Short-Term Assets $2.294B $2.331B $2.099B
Total Long-Term Assets $6.093B $6.611B $5.970B
Total Assets $41.48B $40.76B $38.04B
YoY Change 8.26% 7.15% -3.08%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $924.0M $838.0M $741.0M
YoY Change 12.68% 13.09% -8.29%
Accrued Expenses $282.0M $322.0M $315.0M
YoY Change 4.44% 2.22% 5.0%
Deferred Revenue
YoY Change
Short-Term Debt $1.080B $1.211B $636.0M
YoY Change 17.01% 90.41% 14.18%
Long-Term Debt Due $348.0M $448.0M $443.0M
YoY Change -32.82% 1.13% -69.66%
Total Short-Term Liabilities $4.023B $4.149B $3.412B
YoY Change 4.85% 21.6% -23.63%
LONG-TERM LIABILITIES
Long-Term Debt $19.85B $19.11B $18.07B
YoY Change 11.45% 5.76% 1.83%
Other Long-Term Liabilities $441.0M $472.0M $437.0M
YoY Change 4.5% 8.01% -9.34%
Total Long-Term Liabilities $6.848B $6.807B $6.582B
YoY Change 1.14% 3.42% -3.36%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.023B $4.149B $3.412B
Total Long-Term Liabilities $6.848B $6.807B $6.582B
Total Liabilities $10.87B $10.96B $9.994B
YoY Change 2.48% 9.63% -11.39%
SHAREHOLDERS EQUITY
Retained Earnings $3.871B $4.066B $3.624B
YoY Change 1.1% 12.2% 29.85%
Common Stock $10.31B $10.13B $9.831B
YoY Change 4.71% 3.03% 2.01%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $10.76B $10.69B $9.975B
YoY Change
Total Liabilities & Shareholders Equity $41.48B $40.76B $38.04B
YoY Change 8.26% 7.15% -3.08%

Cashflow Statement

Concept 2017 Q4 2017 Q3 2016 Q3
OPERATING ACTIVITIES
Net Income $78.00M $355.0M $473.0M
YoY Change -83.23% -24.95% 20.36%
Depreciation, Depletion And Amortization $288.0M $284.0M $249.0M
YoY Change 10.77% 14.06% 1.63%
Cash From Operating Activities $707.0M $964.0M $1.060B
YoY Change 7.12% -9.06% 47.63%
INVESTING ACTIVITIES
Capital Expenditures -$981.0M -$764.0M -$736.0M
YoY Change 19.05% 3.8% -17.21%
Acquisitions
YoY Change
Other Investing Activities -$12.00M -$22.00M $17.00M
YoY Change -66.67% -229.41% 1600.0%
Cash From Investing Activities -$993.0M -$786.0M -$719.0M
YoY Change 15.47% 9.32% -19.03%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 86.00M 27.00M -406.0M
YoY Change -27.73% -106.65% -234.44%
NET CHANGE
Cash From Operating Activities 707.0M 964.0M 1.060B
Cash From Investing Activities -993.0M -786.0M -719.0M
Cash From Financing Activities 86.00M 27.00M -406.0M
Net Change In Cash -200.0M 205.0M -65.00M
YoY Change 146.91% -415.38% -149.24%
FREE CASH FLOW
Cash From Operating Activities $707.0M $964.0M $1.060B
Capital Expenditures -$981.0M -$764.0M -$736.0M
Free Cash Flow $1.688B $1.728B $1.796B
YoY Change 13.75% -3.79% 11.76%

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us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
EffectOfExchangeRateOnCashAndCashEquivalents
7000000 USD
CY2016Q3 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.35
CY2017Q3 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.35
us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.35
CY2016Q3 us-gaap Fuel Costs
FuelCosts
227000000 USD
us-gaap Fuel Costs
FuelCosts
607000000 USD
CY2017Q3 us-gaap Fuel Costs
FuelCosts
202000000 USD
us-gaap Fuel Costs
FuelCosts
576000000 USD
CY2016Q4 us-gaap Goodwill
Goodwill
3060000000 USD
CY2017Q3 us-gaap Goodwill
Goodwill
3134000000 USD
CY2016Q4 us-gaap Guarantee Obligations Current Carrying Value
GuaranteeObligationsCurrentCarryingValue
22000000 USD
CY2017Q3 us-gaap Guarantee Obligations Current Carrying Value
GuaranteeObligationsCurrentCarryingValue
21000000 USD
CY2016Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
612000000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
1947000000 USD
CY2017Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
471000000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
1371000000 USD
CY2016Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
139000000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
510000000 USD
CY2017Q3 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
116000000 USD
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
321000000 USD
CY2016Q3 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
4000000 USD
us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
13000000 USD
CY2017Q3 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
4000000 USD
us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
9000000 USD
CY2016Q3 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
IncomeTaxReconciliationForeignIncomeTaxRateDifferential
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us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
IncomeTaxReconciliationForeignIncomeTaxRateDifferential
-136000000 USD
CY2017Q3 us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
IncomeTaxReconciliationForeignIncomeTaxRateDifferential
-45000000 USD
us-gaap Income Tax Reconciliation Foreign Income Tax Rate Differential
IncomeTaxReconciliationForeignIncomeTaxRateDifferential
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CY2016Q3 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
214000000 USD
us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
681000000 USD
CY2017Q3 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
165000000 USD
us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
480000000 USD
CY2016Q3 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
-7000000 USD
us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
-9000000 USD
CY2017Q3 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
-5000000 USD
us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
-10000000 USD
CY2016Q3 us-gaap Income Tax Reconciliation Repatriation Of Foreign Earnings
IncomeTaxReconciliationRepatriationOfForeignEarnings
-1000000 USD
us-gaap Income Tax Reconciliation Repatriation Of Foreign Earnings
IncomeTaxReconciliationRepatriationOfForeignEarnings
-3000000 USD
CY2017Q3 us-gaap Income Tax Reconciliation Repatriation Of Foreign Earnings
IncomeTaxReconciliationRepatriationOfForeignEarnings
-8000000 USD
us-gaap Income Tax Reconciliation Repatriation Of Foreign Earnings
IncomeTaxReconciliationRepatriationOfForeignEarnings
-24000000 USD
CY2016Q3 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
13000000 USD
us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
37000000 USD
CY2017Q3 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
14000000 USD
us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
37000000 USD
us-gaap Increase Decrease In Accounts Payable Trade
IncreaseDecreaseInAccountsPayableTrade
-40000000 USD
us-gaap Increase Decrease In Accounts Payable Trade
IncreaseDecreaseInAccountsPayableTrade
-93000000 USD
us-gaap Increase Decrease In Accrued Taxes Payable
IncreaseDecreaseInAccruedTaxesPayable
40000000 USD
us-gaap Increase Decrease In Accrued Taxes Payable
IncreaseDecreaseInAccruedTaxesPayable
6000000 USD
us-gaap Increase Decrease In Interest Payable Net
IncreaseDecreaseInInterestPayableNet
32000000 USD
us-gaap Increase Decrease In Interest Payable Net
IncreaseDecreaseInInterestPayableNet
49000000 USD
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-8000000 USD
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-35000000 USD
us-gaap Increase Decrease In Other Current Liabilities
IncreaseDecreaseInOtherCurrentLiabilities
-48000000 USD
us-gaap Increase Decrease In Other Current Liabilities
IncreaseDecreaseInOtherCurrentLiabilities
-53000000 USD
us-gaap Increase Decrease In Other Operating Assets
IncreaseDecreaseInOtherOperatingAssets
-18000000 USD
us-gaap Increase Decrease In Other Operating Assets
IncreaseDecreaseInOtherOperatingAssets
-4000000 USD
us-gaap Increase Decrease In Other Operating Capital Net
IncreaseDecreaseInOtherOperatingCapitalNet
5000000 USD
us-gaap Increase Decrease In Other Operating Capital Net
IncreaseDecreaseInOtherOperatingCapitalNet
-5000000 USD
us-gaap Increase Decrease In Other Operating Liabilities
IncreaseDecreaseInOtherOperatingLiabilities
-75000000 USD
us-gaap Increase Decrease In Other Operating Liabilities
IncreaseDecreaseInOtherOperatingLiabilities
-5000000 USD
us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
34000000 USD
us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
37000000 USD
us-gaap Increase Decrease In Receivables
IncreaseDecreaseInReceivables
29000000 USD
us-gaap Increase Decrease In Receivables
IncreaseDecreaseInReceivables
-25000000 USD
us-gaap Increase Decrease In Regulatory Assets And Liabilities
IncreaseDecreaseInRegulatoryAssetsAndLiabilities
32000000 USD
us-gaap Increase Decrease In Regulatory Assets And Liabilities
IncreaseDecreaseInRegulatoryAssetsAndLiabilities
3000000 USD
CY2016Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
2234000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
3064000 shares
CY2017Q3 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
2183000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
2298000 shares
CY2016Q4 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
700000000 USD
CY2017Q3 us-gaap Intangible Assets Net Excluding Goodwill
IntangibleAssetsNetExcludingGoodwill
666000000 USD
CY2016Q3 us-gaap Interest Expense
InterestExpense
223000000 USD
us-gaap Interest Expense
InterestExpense
671000000 USD
CY2017Q3 us-gaap Interest Expense
InterestExpense
230000000 USD
us-gaap Interest Expense
InterestExpense
669000000 USD
CY2016Q4 us-gaap Interest Payable Current
InterestPayableCurrent
270000000 USD
CY2017Q3 us-gaap Interest Payable Current
InterestPayableCurrent
322000000 USD
CY2016Q4 us-gaap Inventory Net
InventoryNet
356000000 USD
CY2017Q3 us-gaap Inventory Net
InventoryNet
323000000 USD
CY2016Q4 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
38315000000 USD
CY2017Q3 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
40758000000 USD
CY2016Q4 us-gaap Liabilities Current
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3837000000 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
2230000000 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
1754000000 USD
CY2016Q3 us-gaap Net Income Loss
NetIncomeLoss
473000000 USD
us-gaap Net Income Loss
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1437000000 USD
CY2017Q3 us-gaap Liabilities Current
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4149000000 USD
CY2016Q4 us-gaap Liabilities Noncurrent
LiabilitiesNoncurrent
6771000000 USD
CY2017Q3 us-gaap Liabilities Noncurrent
LiabilitiesNoncurrent
6807000000 USD
CY2016Q4 us-gaap Long Term Debt Current
LongTermDebtCurrent
518000000 USD
CY2017Q3 us-gaap Long Term Debt Current
LongTermDebtCurrent
448000000 USD
CY2016Q4 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
17808000000 USD
CY2017Q3 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
19110000000 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
738000000 USD
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
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us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
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CY2017Q3 us-gaap Net Income Loss
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355000000 USD
us-gaap Net Income Loss
NetIncomeLoss
1050000000 USD
CY2016Q3 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
472000000 USD
us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
1433000000 USD
CY2017Q3 us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
354000000 USD
us-gaap Net Income Loss Available To Common Stockholders Diluted
NetIncomeLossAvailableToCommonStockholdersDiluted
1048000000 USD
CY2016Q4 us-gaap Nontrade Receivables Current
NontradeReceivablesCurrent
46000000 USD
CY2017Q3 us-gaap Nontrade Receivables Current
NontradeReceivablesCurrent
96000000 USD
CY2016Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
786000000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
2334000000 USD
CY2017Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
777000000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
2275000000 USD
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52000000 USD
CY2017Q3 us-gaap Other Assets Current
OtherAssetsCurrent
56000000 USD
CY2016Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
151000000 USD
CY2017Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
143000000 USD
CY2016Q3 us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Net Of Tax
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CY2017Q3 us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Net Of Tax
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CY2016Q3 us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax
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us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax
OtherComprehensiveIncomeDefinedBenefitPlansNetUnamortizedGainLossArisingDuringPeriodTax
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CY2017Q3 us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax
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us-gaap Other Comprehensive Income Defined Benefit Plans Net Unamortized Gain Loss Arising During Period Tax
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CY2016Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
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us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
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CY2017Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
-12000000 USD
us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
195000000 USD
CY2016Q3 us-gaap Other Comprehensive Income Foreign Currency Translation Gain Loss Arising During Period Tax
OtherComprehensiveIncomeForeignCurrencyTranslationGainLossArisingDuringPeriodTax
2000000 USD
us-gaap Other Comprehensive Income Foreign Currency Translation Gain Loss Arising During Period Tax
OtherComprehensiveIncomeForeignCurrencyTranslationGainLossArisingDuringPeriodTax
4000000 USD
CY2017Q3 us-gaap Other Comprehensive Income Foreign Currency Translation Gain Loss Arising During Period Tax
OtherComprehensiveIncomeForeignCurrencyTranslationGainLossArisingDuringPeriodTax
0 USD
us-gaap Other Comprehensive Income Foreign Currency Translation Gain Loss Arising During Period Tax
OtherComprehensiveIncomeForeignCurrencyTranslationGainLossArisingDuringPeriodTax
1000000 USD
CY2016Q3 us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax
OtherComprehensiveIncomeLossAmortizationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetPriorServiceCostCreditNetOfTax
0 USD
us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax
OtherComprehensiveIncomeLossAmortizationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetPriorServiceCostCreditNetOfTax
1000000 USD
CY2017Q3 us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax
OtherComprehensiveIncomeLossAmortizationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetPriorServiceCostCreditNetOfTax
0 USD
us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax
OtherComprehensiveIncomeLossAmortizationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetPriorServiceCostCreditNetOfTax
1000000 USD
CY2016Q3 us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Tax
OtherComprehensiveIncomeLossAmortizationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetPriorServiceCostCreditTax
1000000 USD
us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Tax
OtherComprehensiveIncomeLossAmortizationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetPriorServiceCostCreditTax
1000000 USD
CY2017Q3 us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Tax
OtherComprehensiveIncomeLossAmortizationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetPriorServiceCostCreditTax
1000000 USD
us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Tax
OtherComprehensiveIncomeLossAmortizationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetPriorServiceCostCreditTax
1000000 USD
CY2016Q3 us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
OtherComprehensiveIncomeLossBeforeReclassificationsNetOfTax
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us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
OtherComprehensiveIncomeLossBeforeReclassificationsNetOfTax
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CY2017Q3 us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
OtherComprehensiveIncomeLossBeforeReclassificationsNetOfTax
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us-gaap Other Comprehensive Income Loss Before Reclassifications Net Of Tax
OtherComprehensiveIncomeLossBeforeReclassificationsNetOfTax
152000000 USD
CY2016Q3 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
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us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
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CY2017Q3 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
20000000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
275000000 USD
CY2016Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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69000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesNetOfTax
62000000 USD
CY2017Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesNetOfTax
0 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesNetOfTax
-24000000 USD
CY2016Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesTax
17000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesTax
15000000 USD
CY2017Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesTax
1000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesTax
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CY2016Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossNetOfTax
-31000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossNetOfTax
-94000000 USD
CY2017Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossNetOfTax
-34000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossNetOfTax
-97000000 USD
CY2016Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossTax
-10000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossTax
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CY2017Q3 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossTax
-10000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Gain Loss Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIPensionAndOtherPostretirementBenefitPlansForNetGainLossTax
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CY2016Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
62000000 USD
us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
57000000 USD
CY2017Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
1000000 USD
us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodNetOfTax
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CY2016Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodTax
16000000 USD
us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodTax
9000000 USD
CY2017Q3 us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodTax
0 USD
us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Tax
OtherComprehensiveIncomeUnrealizedGainLossOnDerivativesArisingDuringPeriodTax
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CY2016Q3 us-gaap Other Cost Of Services
OtherCostOfServices
417000000 USD
us-gaap Other Cost Of Services
OtherCostOfServices
1292000000 USD
CY2017Q3 us-gaap Other Cost Of Services
OtherCostOfServices
397000000 USD
us-gaap Other Cost Of Services
OtherCostOfServices
1217000000 USD
CY2016Q4 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
569000000 USD
CY2017Q3 us-gaap Other Liabilities Current
OtherLiabilitiesCurrent
570000000 USD
CY2016Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
422000000 USD
CY2017Q3 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
472000000 USD
us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
12000000 USD
us-gaap Other Noncash Income Expense
OtherNoncashIncomeExpense
8000000 USD
CY2016Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
49000000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
284000000 USD
CY2017Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
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us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
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us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
-30000000 USD
us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
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us-gaap Payments Of Dividends Common Stock
PaymentsOfDividendsCommonStock
772000000 USD
us-gaap Payments Of Dividends Common Stock
PaymentsOfDividendsCommonStock
800000000 USD
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
23000000 USD
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
25000000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
2073000000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
2152000000 USD
us-gaap Pension And Other Postretirement Benefit Expense
PensionAndOtherPostretirementBenefitExpense
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us-gaap Pension And Other Postretirement Benefit Expense
PensionAndOtherPostretirementBenefitExpense
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us-gaap Pension Contributions
PensionContributions
345000000 USD
us-gaap Pension Contributions
PensionContributions
558000000 USD
CY2016Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
63000000 USD
CY2017Q3 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
101000000 USD
us-gaap Proceeds From Hedge Financing Activities
ProceedsFromHedgeFinancingActivities
46000000 USD
us-gaap Proceeds From Hedge Financing Activities
ProceedsFromHedgeFinancingActivities
0 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
133000000 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
275000000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
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us-gaap Proceeds From Issuance Of Long Term Debt
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us-gaap Proceeds From Repayments Of Short Term Debt
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us-gaap Repayments Of Long Term Debt
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us-gaap Revenues
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us-gaap Revenues
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us-gaap Stock Issued During Period Shares Dividend Reinvestment Plan
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us-gaap Stock Issued During Period Shares Dividend Reinvestment Plan
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us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-weight:bold;">17. New Accounting Guidance Pending Adoption</font><font style="font-family:Arial;font-size:10pt;font-weight:bold;"> </font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">(All Registrants)</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;text-decoration:underline;">Accounting for Revenue from Contracts with Customers</font><font style="font-family:Arial;font-size:10pt;"> </font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;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%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Registrants have completed an assessment of substantially all of their revenue under this new guidance and, for those assessments that have been completed, have determined it will not have a material impact on their current revenue recognition policies. The Registrants' operating revenues are derived primarily from tariff-based sales that result from providing electricity and natural gas to customers with no defined contractual term. Tariff-based sales are within the scope of the new guidance, and operating revenues under the new guidance will be equivalent to the electricity and natural gas delivered and billed in that period (including estimated billings), which is consistent with current practice. Management is still assessing the impact of the new standard on certain revenues in the U.K. Regulated segment and does not expect there to be a material impact to current practice, however, the assessment is still ongoing.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The disclosure requirements included in the standard will result in increased information being provided to enable the users of the financial statements to understand the nature, amount, timing and uncertainty of revenue arising from contracts with customers. These disclosures will include disaggregation of revenues by geographic location, customer class or type of service, as applicable for each Registrant. Some revenue arrangements, including alternative revenue programs and lease income, are excluded from the scope of the new guidance and will be accounted for and disclosed separately from revenues from contracts with customers. The Registrants will also be required to disclose the opening and closing balances of accounts receivable and any contract assets or contract liabilities resulting from contracts with customers. </font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;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. The Registrants will adopt this guidance effective January 1, 2018 and will determine the transition method they will apply once they have completed their assessments and the implications of using either the full retrospective or modified retrospective transition methods are known.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;text-decoration:underline;">Accounting for Leases</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;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 line tests.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;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%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The standard is effective for public business entities 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%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Registrants are currently assessing the impact of adopting this guidance. The Registrants will adopt this guidance effective January 1, 2019.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;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%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;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%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;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 in annual reporting periods beginning after December 15, 2018, including interim periods within those years.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;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%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;text-decoration:underline;">Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2017, the FASB issued accounting guidance that changes the income statement presentation of net periodic benefit cost. This new guidance requires the service cost component to be disaggregated from other components of net benefit cost and presented in the same income statement line items as other employee compensation costs arising from services rendered during the period. The other components of net periodic benefits will be presented separately from the line items that include the service cost and outside of any subtotal of operating income. Only the service cost component is eligible for capitalization. </font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For public business entities, the guidance on the presentation of the components of net periodic benefit costs will be applied retrospectively. The guidance that limits the capitalization to the service cost component of net periodic benefit costs will be applied prospectively. This guidance is effective for fiscal years beginning after December 15, 2017 and interim periods within those years. The Registrants will adopt this guidance effective January 1, 2018.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For PPL&#8217;s, LKE&#8217;s and LG&amp;E&#8217;s U.S. defined benefit pension and PPL's and LKE's other postretirement benefit plans, the adoption of this new guidance is not expected to have a material impact on either the presentation on the income statements or the amounts capitalized and related impact to expense, as the difference between the service cost and the non-service cost components of net periodic benefit costs has not historically been and is not expected to be material in 2018.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For PPL&#8217;s U.K. defined benefit pension plans, the non-service cost components of net periodic benefit cost has been in a net-credit position for the current reporting periods and is expected to continue to be in a net-credit position for 2018. Therefore, the estimated impact of adopting this new guidance related to the non-service cost component credits to be reclassified from &#8220;Other operation and maintenance&#8221; to &#8220;Other Income (Expense)-net&#8221; on the Statements of Income is approximately </font><font style="font-family:inherit;font-size:10pt;">$130 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$90 million</font><font style="font-family:inherit;font-size:10pt;"> for the nine months ended 2017 and 2016. </font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Registrants are continuing to assess the expected 2018 impacts of adopting the guidance as the amounts will be affected by market conditions and assumptions selected at December 31, 2017. </font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;text-decoration:underline;">Improvements to Accounting for Hedging Activities</font><font style="font-family:Arial;font-size:10pt;"> </font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In August 2017, the FASB issued accounting guidance that reduces complexity when applying hedge accounting as well as improves transparency about an entity's risk management activities. This guidance eliminates recognizing hedge ineffectiveness for cash flow and net investment hedges and provides for the ability to perform subsequent effectiveness assessments qualitatively. The guidance also makes certain changes to allowable methodologies such as allowing entities to apply the short-cut method to partial-term fair value hedges of interest rate risk as well as expands the ability to apply the critical terms match method to cash flow hedges of groups of forecasted transactions. The guidance also updates certain recognition and presentation requirements as well as disclosure requirements.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">For public business entities, this guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. This standard must be adopted using a modified retrospective approach and provides for certain transition elections that must be made prior to the first effectiveness testing date after adoption.</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;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%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">(PPL, LKE, LG&amp;E and KU)</font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;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%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;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%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;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%;padding-bottom:0px;padding-top:0px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;padding-bottom:0px;padding-top:0px;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>

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