XML 50 R22.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Fair Value Measurements | 6 Months Ended
--- | ---
Jun. 30, 2018
Fair Value Disclosures [Abstract] |
Fair Value Measurements | 13. Fair Value Measurements (All Registrants) Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). A market approach (generally, data from market transactions), an income approach (generally, present value techniques and option-pricing models) and/or a cost approach (generally, replacement cost) are used to measure the fair value of an asset or liability, as appropriate. These valuation approaches incorporate inputs such as observable, independent market data and/or unobservable data that management believes are predicated on the assumptions market participants would use to price an asset or liability. These inputs may incorporate, as applicable, certain risks such as nonperformance risk, which includes credit risk. The fair value of a group of financial assets and liabilities is measured on a net basis. Transfers between levels are recognized at end-of-reporting-period values. During the three and six months ended June 30, 2018 and 2017, there were no transfers between Level 1 and Level 2. See Note 1 in each Registrant's 2017 Form 10-K for information on the levels in the fair value hierarchy. Recurring Fair Value Measurements The assets and liabilities measured at fair value were:
| June 30, 2018 |  | December 31, 2017
| Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3
PPL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 852 |  |  | $ | 852 |  |  | $ | — |  |  | $ | — |  |  | $ | 485 |  |  | $ | 485 |  |  | $ | — |  |  | $ | — |
Restricted cash and cash equivalents (a) | 23 |  |  | 23 |  |  | — |  |  | — |  |  | 26 |  |  | 26 |  |  | — |  |  | — |
Special use funds (a) | 65 |  |  | 65 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Price risk management assets (b): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | 163 |  |  | — |  |  | 163 |  |  | — |  |  | 163 |  |  | — |  |  | 163 |  |  | — |
Cross-currency swaps | 100 |  |  | — |  |  | 100 |  |  | — |  |  | 101 |  |  | — |  |  | 101 |  |  | — |
Total price risk management assets | 263 |  |  | — |  |  | 263 |  |  | — |  |  | 264 |  |  | — |  |  | 264 |  |  | — |
Total assets | $ | 1,203 |  |  | $ | 940 |  |  | $ | 263 |  |  | $ | — |  |  | $ | 775 |  |  | $ | 511 |  |  | $ | 264 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Price risk management liabilities (b): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | 21 |  |  | $ | — |  |  | $ | 21 |  |  | $ | — |  |  | $ | 26 |  |  | $ | — |  |  | $ | 26 |  |  | $ | — |
Foreign currency contracts | 53 |  |  | — |  |  | 53 |  |  | — |  |  | 148 |  |  | — |  |  | 148 |  |  | — |
Total price risk management liabilities | $ | 74 |  |  | $ | — |  |  | $ | 74 |  |  | $ | — |  |  | $ | 174 |  |  | $ | — |  |  | $ | 174 |  |  | $ | — |
PPL Electric |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 489 |  |  | $ | 489 |  |  | $ | — |  |  | $ | — |  |  | $ | 49 |  |  | $ | 49 |  |  | $ | — |  |  | $ | — |
Restricted cash and cash equivalents (a) | 2 |  |  | 2 |  |  | — |  |  | — |  |  | 2 |  |  | 2 |  |  | — |  |  | — |
Total assets | $ | 491 |  |  | $ | 491 |  |  | $ | — |  |  | $ | — |  |  | $ | 51 |  |  | $ | 51 |  |  | $ | — |  |  | $ | — |
LKE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 39 |  |  | $ | 39 |  |  | $ | — |  |  | $ | — |  |  | $ | 30 |  |  | $ | 30 |  |  | $ | — |  |  | $ | — |
Total assets | $ | 39 |  |  | $ | 39 |  |  | $ | — |  |  | $ | — |  |  | $ | 30 |  |  | $ | 30 |  |  | $ | — |  |  | $ | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Price risk management liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | 21 |  |  | $ | — |  |  | $ | 21 |  |  | $ | — |  |  | $ | 26 |  |  | $ | — |  |  | $ | 26 |  |  | $ | — |
Total price risk management liabilities | $ | 21 |  |  | $ | — |  |  | $ | 21 |  |  | $ | — |  |  | $ | 26 |  |  | $ | — |  |  | $ | 26 |  |  | $ | — |
LG&E |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 19 |  |  | $ | 19 |  |  | $ | — |  |  | $ | — |  |  | $ | 15 |  |  | $ | 15 |  |  | $ | — |  |  | $ | — |
Total assets | $ | 19 |  |  | $ | 19 |  |  | $ | — |  |  | $ | — |  |  | $ | 15 |  |  | $ | 15 |  |  | $ | — |  |  | $ | — |
| June 30, 2018 |  | December 31, 2017
| Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Price risk management liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | 21 |  |  | $ | — |  |  | $ | 21 |  |  | $ | — |  |  | $ | 26 |  |  | $ | — |  |  | $ | 26 |  |  | $ | — |
Total price risk management liabilities | $ | 21 |  |  | $ | — |  |  | $ | 21 |  |  | $ | — |  |  | $ | 26 |  |  | $ | — |  |  | $ | 26 |  |  | $ | — |
KU |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 20 |  |  | $ | 20 |  |  | $ | — |  |  | $ | — |  |  | $ | 15 |  |  | $ | 15 |  |  | $ | — |  |  | $ | — |
Total assets | $ | 20 |  |  | $ | 20 |  |  | $ | — |  |  | $ | — |  |  | $ | 15 |  |  | $ | 15 |  |  | $ | — |  |  | $ | — |
(a) | Current portion is included in "Other current assets" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets.
(b) | Current portion is included in "Price risk management assets" and "Other current liabilities" and noncurrent portion is included in "Price risk management assets" and "Other deferred credits and noncurrent liabilities" on the Balance Sheets.
Special Use Funds (PPL) The special use funds are investments restricted for paying active union employee medical costs. In May 2018, PPL received a favorable private letter ruling from the IRS permitting a transfer of excess funds from the PPL Bargaining Unit Retiree Health Plan VEBA to a new subaccount within the VEBA to be used to pay for medical claims of active bargaining unit employees. The funds are invested primarily in money market funds. Price Risk Management Assets/Liabilities - Interest Rate Swaps/Foreign Currency Contracts/Cross-Currency Swaps (PPL, LKE, LG&E and KU) To manage interest rate risk, PPL, LKE, LG&E and KU use interest rate contracts such as forward-starting swaps, floating-to-fixed swaps and fixed-to-floating swaps. To manage foreign currency risk, PPL uses foreign currency contracts such as forwards, options and cross-currency swaps that contain characteristics of both interest rate and foreign currency contracts. An income approach is used to measure the fair value of these contracts, utilizing readily observable inputs, such as forward interest rates (e.g., LIBOR and government security rates) and forward foreign currency exchange rates (e.g., GBP), as well as inputs that may not be observable, such as credit valuation adjustments. In certain cases, market information cannot practicably be obtained to value credit risk and therefore internal models are relied upon. These models use projected probabilities of default and estimated recovery rates based on historical observances. When the credit valuation adjustment is significant to the overall valuation, the contracts are classified as Level 3. Financial Instruments Not Recorded at Fair Value (All Registrants) The carrying amounts of long-term debt on the Balance Sheets and their estimated fair values are set forth below. Long-term debt is classified as Level 2. The effect of third-party credit enhancements is not included in the fair value measurement.
| June 30, 2018 |  | December 31, 2017
| Carrying Amount (a) |  | Fair Value |  | Carrying Amount (a) |  | Fair Value
PPL | $ | 20,420 |  |  | $ | 23,448 |  |  | $ | 20,195 |  |  | $ | 23,783 |
PPL Electric | 3,693 |  |  | 3,950 |  |  | 3,298 |  |  | 3,769 |
LKE | 5,510 |  |  | 5,801 |  |  | 5,159 |  |  | 5,670 |
LG&E | 1,808 |  |  | 1,884 |  |  | 1,709 |  |  | 1,865 |
KU | 2,329 |  |  | 2,480 |  |  | 2,328 |  |  | 2,605 |
(a) | Amounts are net of debt issuance costs.
The carrying amounts of other current financial instruments (except for long-term debt due within one year) approximate their fair values because of their short-term nature.

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

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration