2010

2009

FINANCIAL

Operating revenues (millions)

$8,077

$9,492

Net income attributable to PPL (millions)

$508

$714

Earnings from ongoing operations (millions) ^(a)

$989

$688

Total assets (millions) ^(b)

$25,913

$22,410

Earnings per share - Basic

$1.34

$1.90

Earnings per share - Diluted

$1.34

$1.89

Earnings from ongoing operations per share - Basic^(d)

$2.60

$1.82

Earnings from ongoing operations per share - Diluted^(d)

$2.60

$1.82

Dividends declared per share

$1.39

$1.36

Book value per share ^(b)

$16.46

$14.67

Market price per share ^(b)

$24.95

$32.96

Dividend yield ^(b)

5.6%

4.1%

Dividend payout ratio ^(c)

104%

72%

Dividend payout ratio - Earnings from ongoing operations ^(c,d)

53%

75%

Market price/Book value ratio ^(b)

152%

225%

Price/earnings ratio ^(b,c)

18.6

17.4

Price/earnings ratio - Earnings from ongoing operations ^(b,c,d)

9.6

18.1

Return on average common equity

8.65%

13.25%

Return on average common equity - Earnings from ongoing operations ^(d)

16.16%

13.15%

OPERATING - DOMESTIC ENERGY

Total retail electricity delivered (millions of kwh)

36,357

37,686

Total retail electricity supplied (millions of kwh)

23,398

39,993

Total wholesale electricity supplied (millions of kwh)

59,472

41,432

OPERATING - INTERNATIONAL DELIVERED

United Kingdom (millions of kwh)

26,580

27,002

(a)

“Earnings from ongoing operations” should not be considered as an alternative to reported earnings, or net income attributable to PPL, which is an indicator of operating performance determined in accordance with generally accepted accounting principles (GAAP). PPL believes that “earnings from ongoing operations,” although a non-GAAP financial measure, is also useful and meaningful to investors because it provides them with management’s view of PPL’s fundamental earnings performance as another criterion in making their investment decisions. PPL’s management also uses “earnings from ongoing operations” in measuring certain corporate performance goals. Other companies may use different measures to present financial performance.

“Earnings from ongoing operations” is adjusted for the impact of special items. Special items include:
• Energy-related economic activity (as discussed below).
• Foreign currency-related economic hedges.
• Gains and losses on sales of assets not in the ordinary course of business.
• Impairment charges (including impairments of securities in the company’s nuclear decommissioning trust funds).
• Workforce reduction and other restructuring impacts.
• Costs related to the pending E.ON U.S. acquisition, including gains or losses associated with the sale of certain full-requirement sales contracts in support of raising cash for the acquisition.
• Other charges or credits that are, in management’s view, not reflective of the company’s ongoing operations.

Energy-related economic activity includes the changes in fair value of positions used to economically hedge a portion of the economic value of PPL’s generation assets, load-following and retail activities. This economic value is subject to changes in fair value due to market price volatility of the input and output commodities (e.g., fuel and power). Also included in this special item are the ineffective portion of qualifying cash flow hedges and the premium amortization associated with options classified as economic activity. These items are included in ongoing earnings over the delivery period of the item that was hedged or upon realization. Management believes that adjusting for such amounts provides a better matching of earnings from ongoing operations to the actual amounts settled for PPL’s underlying hedged assets. Please refer to the Notes to the Consolidated Financial Statements and MD&A in PPL Corporation’s periodic filings with the Securities and Exchange Commission for additional information on energy-related economic activity.

Click on the link at the top of this schedule to reference a reconciliation of earnings from ongoing operations to reported earnings, or net income attributable to PPL. 

(b)

End of period.

(c)

Calculated using diluted shares.

(d)

Calculated using earnings from ongoing operations.