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Summary of Significant Accounting Policies | 9 Months Ended
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Sep. 30, 2020
Accounting Policies [Abstract] |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies (All Registrants) The following accounting policy disclosures represent updates to Note 1 in each Registrant's 2019 Form 10-K and should be read in conjunction with those disclosures. Restricted Cash and Cash Equivalents (PPL and PPL Electric) Reconciliation of Cash, Cash Equivalents and Restricted Cash The following provides a reconciliation of Cash, Cash Equivalents and Restricted Cash reported within the Balance Sheets that sum to the total of the same amounts shown on the Statements of Cash Flows:
| PPL |  | PPL Electric
| September 30, 2020 |  |  |  | December 31, 2019 |  | September 30, 2020 |  | December 31, 2019 |  |
Cash and cash equivalents | $ | 746 |  |  |  |  | $ | 815 |  |  | $ | 26 |  |  | $ | 262 |  |  |
Restricted cash - current (a) | 3 |  |  |  |  | 3 |  |  | 2 |  |  | 2 |  |  |
Restricted cash - noncurrent (a) | 20 |  |  |  |  | 18 |  |  | — |  |  | — |  |  |
Total Cash, Cash Equivalents and Restricted Cash | $ | 769 |  |  |  |  | $ | 836 |  |  | $ | 28 |  |  | $ | 264 |  |  |
(a)Bank deposits and other cash equivalents that are restricted by agreement or that have been clearly designated for a specific purpose are classified as restricted cash. On the Balance Sheets, the current portion of restricted cash is included in "Other current assets," while the noncurrent portion is included in "Other noncurrent assets." Current Expected Credit Losses (All Registrants) Financing receivable collectability is evaluated using a combination of factors, including past due status based on contractual terms, trends in write-offs and the age of the receivable. Specific events, such as bankruptcies, are also considered when applicable. Adjustments to the reserve for credit losses are made when necessary based on the results of analysis, the aging of receivables and historical and industry trends. The Registrants periodically evaluate the impact of observable external factors on the collectability of the financing receivables to determine if adjustments to the reserve for credit losses should be made based on current conditions or reasonable and supportable forecasts. Accounts receivable are written off in the period in which the receivable is deemed uncollectible. (PPL and PPL Electric) PPL Electric has identified one class of financing receivables, “accounts receivable-customer”, which includes financing receivables for all billed and unbilled sales with residential and non-residential customers. All other financing receivables are classified as other. Within the credit loss model for the residential customer accounts receivables, customers are disaggregated based on their projected propensity to pay, which is derived from historical trends and the current activity of the individual customer accounts. Conversely, the non-residential customer accounts receivables are not further segmented due to the varying nature of the individual customers, which lack readily identifiable risk characteristics for disaggregation. (PPL, LKE, LG&E and KU) LKE, LG&E and KU have identified one class of financing receivables, “accounts receivable-customer”, which includes financing receivables for all billed and unbilled sales with customers. All other financing receivables are classified as other. (All Registrants) The following table shows changes in the allowance for credit losses for the nine months ended September 30, 2020:
| Balance at Beginning of Period (a) |  | Charged to Income |  | Deductions (b) |  | Balance at End of Period
PPL |  |  |  |  |  |  |
Accounts Receivable - Customer and Unbilled Revenue | $ | 30 |  |  | $ | 22 |  |  | $ | 9 |  |  | $ | 43 |
Other (c) | 27 |  |  | 2 |  |  | — |  |  | 29 |
| Balance at Beginning of Period (a) |  | Charged to Income |  | Deductions (b) |  | Balance at End of Period
PPL Electric |  |  |  |  |  |  |
Accounts Receivable - Customer and Unbilled Revenue | $ | 25 |  |  | $ | 12 |  |  | $ | 3 |  |  | $ | 34 |
Other | 1 |  |  | 1 |  |  | — |  |  | 2 |
LKE |  |  |  |  |  |  |
Accounts Receivable - Customer and Unbilled Revenue | $ | 2 |  |  | $ | 7 |  |  | $ | 5 |  |  | $ | 4 |
Other (c) | 26 |  |  | 1 |  |  | — |  |  | 27 |
LG&E |  |  |  |  |  |  |
Accounts Receivable - Customer and Unbilled Revenue | $ | 1 |  |  | $ | 4 |  |  | $ | 3 |  |  | $ | 2 |
KU |  |  |  |  |  |  |
Accounts Receivable - Customer and Unbilled Revenue | $ | 1 |  |  | $ | 3 |  |  | $ | 2 |  |  | $ | 2 |
(a)Reflects cumulative-effect adjustment upon adoption of current expected credit loss guidance. (b)Primarily related to uncollectible accounts receivable written off. (c)Primarily related to receivables at WKE, which are fully reserved. Asset Impairment (Excluding Investments) (PPL, LKE, LG&E and KU) PPL, LKE, LG&E and KU review goodwill for impairment at the reporting unit level annually or more frequently when events or circumstances indicate that the carrying amount of a reporting unit may be greater than the unit's fair value. PPL's, LKE's, LG&E's and KU's reporting units are primarily at the operating segment level. During the three month period ended March 31, 2020, PPL, LKE, LG&E and KU considered whether the economic events associated with COVID-19, which resulted in PPL’s shares experiencing volatility and a decrease in market value, would more likely than not reduce the fair value of the Registrants’ reporting units below their carrying amounts. See "Risks and Uncertainties" in Note 11 for additional information about COVID-19. Based on our assessment, a quantitative impairment test was not required for the LKE, LG&E and KU reporting units, but was required for the U.K. Regulated segment reporting unit, the allocated goodwill of which was $2.5 billion at March 31, 2020. The test did not indicate impairment of the reporting unit. During the three month periods ended June 30, 2020 and September 30, 2020, no goodwill impairment triggers were identified. However, an impairment charge could occur in future periods if PPL’s share price or any of the assumptions used in determining fair value of the reporting units are negatively impacted. (PPL) On August 10, 2020, PPL announced that it is initiating a formal process to sell its U.K. utility business. As a result of the potential sale, PPL assessed the recoverability of the assets of its U.K. utility business. See Note 9 for additional information. New Accounting Guidance Adopted (All Registrants) Accounting for Financial Instrument Credit Losses Effective January 1, 2020, the Registrants adopted accounting guidance, using a modified retrospective approach, 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 the 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 previous GAAP. The adoption of this guidance did not have a material impact on the Registrants. Accounting for Implementation Costs in a Cloud Computing Service Arrangement Effective January 1, 2020, the Registrants prospectively adopted accounting guidance that requires a customer in a cloud computing hosting arrangement that is a service contract to capitalize implementation costs consistent with internal-use software guidance for non-service arrangements. The guidance requires these capitalized implementation costs to be amortized over the term of the hosting arrangement to the statement of income line item where the service arrangement costs are recorded. The guidance also prescribes the financial statement classification of the capitalized implementation costs and cash flows associated with the arrangement. The adoption of this guidance did not have a material impact on the Registrants. (PPL, LKE, LG&E and KU) Simplifying the Test for Goodwill Impairment Effective January 1, 2020, the Registrants adopted 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 required a calculation of the implied fair value of goodwill, which was determined in the same manner as the amount of goodwill in a business combination. Under the new guidance, the fair value of a reporting unit will be compared with the carrying value and an impairment charge will be recognized if the carrying amount exceeds the fair value of the reporting unit. The adoption of this guidance did not have a material impact on the Registrants.

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