XML 74 R27.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Goodwill and Other Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | 18. Goodwill and Other Intangible Assets Goodwill (PPL) The changes in the carrying amount of goodwill by segment were:
| U.K. Regulated |  | Kentucky Regulated |  | Total
| 2017 |  | 2016 |  | 2017 |  | 2016 |  | 2017 |  | 2016
Balance at beginning of period (a) | $ | 2,398 |  |  | $ | 2,888 |  |  | $ | 662 |  |  | $ | 662 |  |  | $ | 3,060 |  |  | $ | 3,550 |
Effect of foreign currency exchange rates | 198 |  |  | (490 | ) |  |  |  |  |  |  |  | 198 |  |  | (490 | )
Balance at end of period (a) | $ | 2,596 |  |  | $ | 2,398 |  |  | $ | 662 |  |  | $ | 662 |  |  | $ | 3,258 |  |  | $ | 3,060 |
(a) | There were no accumulated impairment losses related to goodwill.
Other Intangible Assets (PPL) The gross carrying amount and the accumulated amortization of other intangible assets were:
| December 31, 2017 |  | December 31, 2016
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Subject to amortization: |  |  |  |  |  |  |
Contracts (a) | $ | 138 |  |  | $ | 67 |  |  | $ | 405 |  |  | $ | 325 |
Land and transmission rights | 382 |  |  | 120 |  |  | 362 |  |  | 115 |
Emission allowances/RECs (b) | 1 |  |  | — |  |  | 2 |  |  | — |
Licenses and other | 7 |  |  | 3 |  |  | 6 |  |  | 2 |
Total subject to amortization | 528 |  |  | 190 |  |  | 775 |  |  | 442 |
Not subject to amortization due to indefinite life: |  |  |  |  |  |  |
Land and transmission rights | 12 |  |  | — |  |  | 19 |  |  | — |
Easements | 347 |  |  | — |  |  | 348 |  |  | — |
Total not subject to amortization due to indefinite life | 359 |  |  | — |  |  | 367 |  |  | — |
Total | $ | 887 |  |  | $ | 190 |  |  | $ | 1,142 |  |  | $ | 442 |
(a) | Gross carrying amount in 2017 and 2016 includes the fair value at the acquisition date of the OVEC power purchase contract with terms favorable to market recognized as a result of the 2010 acquisition of LKE by PPL. Gross carrying amount in 2016 also includes the fair value at the acquisition date of coal contracts with terms favorable to market recognized as a result of the 2010 acquisition of LKE by PPL. At December 31, 2016, these coal contracts were fully amortized. Offsetting regulatory liabilities were recorded related to these contracts, which are being amortized over the same period as the intangible assets, eliminating any income statement impact. This is referred to as "regulatory offset" in the tables below. See Note 6 for additional information.
(b) | Emission allowances/RECs are expensed when consumed or sold; therefore, there is no accumulated amortization.
Current intangible assets are included in "Other current assets" and long-term intangible assets are included in "Other intangibles" on the Balance Sheets.
Amortization Expense was as follows: |  |  |  |  |
| 2017 |  | 2016 |  | 2015
Intangible assets with no regulatory offset | $ | 6 |  |  | $ | 6 |  |  | $ | 6 |
Intangible assets with regulatory offset | 9 |  |  | 24 |  |  | 51 |
Total | $ | 15 |  |  | $ | 30 |  |  | $ | 57 |
Amortization expense for each of the next five years, excluding insignificant amounts for consumption of emission allowances/RECs, is estimated to be:
| 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022
Intangible assets with no regulatory offset | $ | 6 |  |  | $ | 6 |  |  | $ | 6 |  |  | $ | 6 |  |  | $ | 6 |
Intangible assets with regulatory offset | 9 |  |  | 9 |  |  | 8 |  |  | 8 |  |  | 8 |
Total | $ | 15 |  |  | $ | 15 |  |  | $ | 14 |  |  | $ | 14 |  |  | $ | 14 |
(PPL Electric) The gross carrying amount and the accumulated amortization of other intangible assets were:
| December 31, 2017 |  | December 31, 2016
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Subject to amortization: |  |  |  |  |  |  |
Land and transmission rights | $ | 361 |  |  | $ | 117 |  |  | $ | 341 |  |  | $ | 112 |
Licenses and other | 3 |  |  | 1 |  |  | 3 |  |  | 1 |
Total subject to amortization | 364 |  |  | 118 |  |  | 344 |  |  | 113 |
Not subject to amortization due to indefinite life: |  |  |  |  |  |  |
Land and transmission rights | 13 |  |  | — |  |  | 20 |  |  | — |
Total | $ | 377 |  |  | $ | 118 |  |  | $ | 364 |  |  | $ | 113 |
Intangible assets are shown as "Intangibles" on the Balance Sheets. Amortization expense was insignificant in 2017, 2016 and 2015 and is expected to be insignificant in future years. (LKE) The gross carrying amount and the accumulated amortization of other intangible assets were:
| December 31, 2017 |  | December 31, 2016
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Subject to amortization: |  |  |  |  |  |  |
Coal contracts (a) | $ | — |  |  | $ | — |  |  | $ | 269 |  |  | $ | 269 |
Land and transmission rights | 21 |  |  | 3 |  |  | 21 |  |  | 3 |
OVEC power purchase agreement (b) | 126 |  |  | 58 |  |  | 126 |  |  | 49 |
Total subject to amortization | $ | 147 |  |  | $ | 61 |  |  | $ | 416 |  |  | $ | 321 |
(a) | Gross carrying amount represents the fair value at the acquisition date of coal contracts with terms favorable to market recognized as a result of the 2010 acquisition by PPL. An offsetting regulatory liability was recorded related to these contracts, which was amortized over the same period as the intangible asset, eliminating any income statement impact.
(b) | Gross carrying amount represents the fair value at the acquisition date of the OVEC power purchase contract recognized as a result of the 2010 acquisition by PPL. An offsetting regulatory liability was recorded related to this contract, which is being amortized over the same period as the intangible asset, eliminating any income statement impact. See Note 6 for additional information.
Long-term intangible assets are presented as "Other intangibles" on the Balance Sheets. Amortization expense was as follows:
| 2017 |  | 2016 |  | 2015
Intangible assets with no regulatory offset | $ | — |  |  | $ | 1 |  |  | $ | — |
Intangible assets with regulatory offset | 9 |  |  | 24 |  |  | 51 |
Total | $ | 9 |  |  | $ | 25 |  |  | $ | 51 |
Amortization expense for each of the next five years is estimated to be:
| 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022
Intangible assets with regulatory offset | $ | 9 |  |  | $ | 9 |  |  | $ | 8 |  |  | $ | 8 |  |  | $ | 8 |
(LG&E) The gross carrying amount and the accumulated amortization of other intangible assets were:
| December 31, 2017 |  | December 31, 2016
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Subject to amortization: |  |  |  |  |  |  |
Coal contracts (a) | $ | — |  |  | $ | — |  |  | $ | 124 |  |  | $ | 124 |
Land and transmission rights | 7 |  |  | 1 |  |  | 7 |  |  | 1 |
OVEC power purchase agreement (b) | 87 |  |  | 40 |  |  | 87 |  |  | 34 |
Total subject to amortization | $ | 94 |  |  | $ | 41 |  |  | $ | 218 |  |  | $ | 159 |
(a) | Gross carrying amount represents the fair value at the acquisition date of coal contracts with terms favorable to market recognized as a result of the 2010 acquisition by PPL. An offsetting regulatory liability was recorded related to these contracts, which was amortized over the same period as the intangible asset, eliminating any income statement impact.
(b) | Gross carrying amount represents the fair value at the acquisition date of the OVEC power purchase contract recognized as a result of the 2010 acquisition by PPL. An offsetting regulatory liability was recorded related to this contract, which is being amortized over the same period as the intangible asset, eliminating any income statement impact. See Note 6 for additional information.
Long-term intangible assets are presented as "Other intangibles" on the Balance Sheets. Amortization expense was as follows:
| 2017 |  | 2016 |  | 2015
Intangible assets with regulatory offset | $ | 6 |  |  | $ | 13 |  |  | $ | 24 |
Amortization expense for each of the next five years is estimated to be:
| 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022
Intangible assets with regulatory offset | $ | 6 |  |  | $ | 6 |  |  | $ | 6 |  |  | $ | 6 |  |  | $ | 6 |
(KU) The gross carrying amount and the accumulated amortization of other intangible assets were:
| December 31, 2017 |  | December 31, 2016
| Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Subject to amortization: |  |  |  |  |  |  |
Coal contracts (a) | $ | — |  |  | $ | — |  |  | $ | 145 |  |  | $ | 145 |
Land and transmission rights | 14 |  |  | 2 |  |  | 14 |  |  | 2 |
OVEC power purchase agreement (b) | 39 |  |  | 18 |  |  | 39 |  |  | 15 |
Total subject to amortization | $ | 53 |  |  | $ | 20 |  |  | $ | 198 |  |  | $ | 162 |
(a) | Gross carrying amount represents the fair value at the acquisition date of coal contracts with terms favorable to market recognized as a result of the 2010 acquisition by PPL. An offsetting regulatory liability was recorded related to these contracts, which was amortized over the same period as the intangible asset, eliminating any income statement impact.
(b) | Gross carrying amount represents the fair value at the acquisition date of the OVEC power purchase contract recognized as a result of the 2010 acquisition by PPL. An offsetting regulatory liability was recorded related to this contract, which is being amortized over the same period as the intangible asset, eliminating any income statement impact. See Note 6 for additional information.
Long-term intangible assets are presented as "Other intangibles" on the Balance Sheets. Amortization expense was as follows:
| 2017 |  | 2016 |  | 2015
Intangible assets with no regulatory offset | $ | — |  |  | $ | 1 |  |  | $ | — |
Intangible assets with regulatory offset | 3 |  |  | 11 |  |  | 27 |
Total | $ | 3 |  |  | $ | 12 |  |  | $ | 27 |
Amortization expense for each of the next five years is estimated to be:
| 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022
Intangible assets with regulatory offset | $ | 3 |  |  | $ | 3 |  |  | $ | 2 |  |  | $ | 2 |  |  | $ | 2 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration