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Income Taxes | 9 Months Ended
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Sep. 30, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | 5. Income Taxes Reconciliations of income taxes for the periods ended September 30 are as follows.
(PPL)
| Three Months |  | Nine Months
| 2017 |  | 2016 |  | 2017 |  | 2016
Federal income tax on Income Before Income Taxes at statutory tax rate - 35% | $ | 165 |  |  | $ | 214 |  |  | $ | 480 |  |  | $ | 681 |
Increase (decrease) due to: |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit | 14 |  |  | 13 |  |  | 37 |  |  | 37 |
Valuation allowance adjustments | 4 |  |  | 4 |  |  | 9 |  |  | 13 |
Impact of lower U.K. income tax rates | (45 | ) |  | (37 | ) |  | (133 | ) |  | (136 | )
U.S. income tax on foreign earnings - net of foreign tax credit (a) | (8 | ) |  | (1 | ) |  | (24 | ) |  | (3 | )
Impact of the U.K. Finance Acts (b) | (3 | ) |  | (42 | ) |  | (12 | ) |  | (42 | )
Depreciation not normalized | (2 | ) |  | — |  |  | (7 | ) |  | (6 | )
Interest benefit on U.K. financing entities | (4 | ) |  | (4 | ) |  | (12 | ) |  | (13 | )
Stock-based compensation | — |  |  | (1 | ) |  | (7 | ) |  | (12 | )
Other | (5 | ) |  | (7 | ) |  | (10 | ) |  | (9 | )
Total increase (decrease) | (49 | ) |  | (75 | ) |  | (159 | ) |  | (171 | )
Total income taxes | $ | 116 |  |  | $ | 139 |  |  | $ | 321 |  |  | $ | 510 |
(a) | Lower income taxes primarily due to the tax benefit of accelerated pension contributions made in the first quarter of 2017. The related tax benefit is recognized over the annual period as a result of utilizing an estimated annual effective tax rate.
(b) | The U.K. Finance Act 2016, enacted in September 2016, reduces the U.K. statutory income tax rate effective April 1, 2020 from 18% to 17%. As a result, PPL reduced its net deferred tax liabilities and recognized a deferred tax benefit during the three and nine months ended September 30, 2016.
(PPL Electric) |  |  |  |  |  |  |
| Three Months |  | Nine Months
| 2017 |  | 2016 |  | 2017 |  | 2016
Federal income tax on Income Before Income Taxes at statutory tax rate - 35% | $ | 56 |  |  | $ | 52 |  |  | $ | 144 |  |  | $ | 149 |
Increase (decrease) due to: |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit | 9 |  |  | 9 |  |  | 26 |  |  | 27 |
Depreciation not normalized | (1 | ) |  | (2 | ) |  | (5 | ) |  | (5 | )
Stock-based compensation | — |  |  | — |  |  | (5 | ) |  | (7 | )
Other | — |  |  | (1 | ) |  | (1 | ) |  | (2 | )
Total increase (decrease) | 8 |  |  | 6 |  |  | 15 |  |  | 13 |
Total income taxes | $ | 64 |  |  | $ | 58 |  |  | $ | 159 |  |  | $ | 162 |
(LKE) |  |  |  |  |  |  |
| Three Months |  | Nine Months
| 2017 |  | 2016 |  | 2017 |  | 2016
Federal income tax on Income Before Income Taxes at statutory tax rate - 35% | $ | 74 |  |  | $ | 74 |  |  | $ | 181 |  |  | $ | 189 |
Increase (decrease) due to: |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit | 8 |  |  | 8 |  |  | 19 |  |  | 20 |
Amortization of investment tax credit | (1 | ) |  | (1 | ) |  | (2 | ) |  | (2 | )
Stock-based compensation | — |  |  | (1 | ) |  | (1 | ) |  | (2 | )
Other | (2 | ) |  | (1 | ) |  | (2 | ) |  | (3 | )
Total increase (decrease) | 5 |  |  | 5 |  |  | 14 |  |  | 13 |
Total income taxes | $ | 79 |  |  | $ | 79 |  |  | $ | 195 |  |  | $ | 202 |
(LG&E) |  |  |  |  |  |  |
| Three Months |  | Nine Months
| 2017 |  | 2016 |  | 2017 |  | 2016
Federal income tax on Income Before Income Taxes at statutory tax rate - 35% | $ | 36 |  |  | $ | 36 |  |  | $ | 91 |  |  | $ | 90 |
Increase (decrease) due to: |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit | 4 |  |  | 4 |  |  | 10 |  |  | 10 |
Other | (1 | ) |  | (1 | ) |  | (2 | ) |  | (2 | )
Total increase (decrease) | 3 |  |  | 3 |  |  | 8 |  |  | 8 |
Total income taxes | $ | 39 |  |  | $ | 39 |  |  | $ | 99 |  |  | $ | 98 |
(KU) |  |  |  |  |  |  |
| Three Months |  | Nine Months
| 2017 |  | 2016 |  | 2017 |  | 2016
Federal income tax on Income Before Income Taxes at statutory tax rate - 35% | $ | 43 |  |  | $ | 44 |  |  | $ | 111 |  |  | $ | 117 |
Increase (decrease) due to: |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal income tax benefit | 5 |  |  | 5 |  |  | 11 |  |  | 12 |
Other | (1 | ) |  | (1 | ) |  | (2 | ) |  | (1 | )
Total increase (decrease) | 4 |  |  | 4 |  |  | 9 |  |  | 11 |
Total income taxes | $ | 47 |  |  | $ | 48 |  |  | $ | 120 |  |  | $ | 128 |

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- References No definition available. + Details
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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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