XML 51 R24.htm IDEA: XBRL DOCUMENT
v3.21.2

Summary of Significant Accounting Policies | 9 Months Ended
--- | ---
Sep. 30, 2021
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 2020 Form 10-K and should be read in conjunction with those disclosures. Restricted Cash and Cash Equivalents (PPL) 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
| September 30, 2021 |  |  |  | December 31, 2020
Cash and cash equivalents | $ | 4,767 |  |  |  |  | $ | 442 |
Restricted cash - current (a) | 1 |  |  |  |  | 1 |
Total Cash, Cash Equivalents and Restricted Cash | $ | 4,768 |  |  |  |  | $ | 443 |
(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." Current Expected Credit Losses (All Registrants) The following table shows changes in the allowance for credit losses for the nine months ended September 30, 2021:
| Balance at Beginning of Period |  | Charged to Income |  | Deductions (a) |  | Balance at End of Period
PPL |  |  |  |  |  |  |
Accounts Receivable - Customer and Unbilled Revenue (c) | $ | 44 |  |  | $ | 9 |  |  | $ | 17 |  |  | $ | 36 |
Other (b) | 28 |  |  | 1 |  |  | — |  |  | 29 |
PPL Electric |  |  |  |  |  |  |
Accounts Receivable - Customer and Unbilled Revenue (c) | $ | 39 |  |  | $ | 4 |  |  | $ | 11 |  |  | $ | 32 |
Other | 1 |  |  | — |  |  | — |  |  | 1 |
LG&E |  |  |  |  |  |  |
Accounts Receivable - Customer and Unbilled Revenue | $ | 3 |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 2 |
Other | — |  |  | 1 |  |  | — |  |  | 1 |
KU |  |  |  |  |  |  |
Accounts Receivable - Customer and Unbilled Revenue | $ | 2 |  |  | $ | 4 |  |  | $ | 4 |  |  | $ | 2 |
(a)Primarily related to uncollectible accounts receivable written off. (b)Primarily related to receivables at Western Kentucky Energy Corp., a subsidiary of LKE, which are fully reserved. (c)Includes $5 million related to Noncurrent Accounts Receivable – Customer included in “Other noncurrent assets” on the PPL and PPL Electric Balance Sheets at September 30, 2021. Income Taxes The TCJA included new provisions requiring that certain income, referred to as global intangible low-tax income (GILTI), earned by certain foreign subsidiaries must be included in the gross income of their U.S. shareholder. Accounting guidance allows a policy election regarding the timing of inclusion of GILTI in an entity’s financial statements. The election may be either to record deferred taxes for expected GILTI in future periods or record such taxes as a current-period expense when incurred. PPL has elected to record the tax effect of expected GILTI inclusions and thus, records deferred taxes relating to such inclusions. In light of the disposition of PPL's U.K. utility business, indefinite reinvestment is no longer relevant. As such, PPL realized the outside book-tax basis difference in those assets. Accordingly, in June 2021, a current tax liability was recorded to reflect the estimated tax cost associated with the realization of that basis difference. See Note 6 for additional discussion regarding income taxes. Asset Impairment (Excluding Investments) (PPL) During the three month-period ended June 30, 2021, Safari Energy determined that the carrying value of its solar panel inventory would not be fully recoverable due to a decrease in the net realizable value of the modules. The decrease was due primarily to the combination of the three following factors: (1) a continued decrease in the fair value of the modules on hand due to more efficient modules being available on the market, (2) the federal government's extension of certain investment tax credits which make modules on the open market eligible for those credits at higher levels of credits and (3) an increase in commodity prices for materials used in various types of solar projects, all of which place pressure on the economics of those projects, making the cost of Safari's solar panels uncompetitive. As a result, Safari Energy recorded a loss of $37 million ($28 million after-tax) in June 2021 to record the solar panels at fair value. The loss was recorded to "Other operation and maintenance" expense on the Statement of Income. Solar panel inventories of $49 million are included in "Other noncurrent assets" on PPL's Balance Sheet at September 30, 2021. PPL considered whether the events and circumstances that led to the impairment of Safari Energy's solar panels would more likely than not reduce the fair value of PPL's Distributed Energy Resources reporting unit below its carrying amount. Based on PPL's assessment, a quantitative impairment test was not required, however, a goodwill impairment charge could occur in future periods if there is a degradation of expected future cash flows or unfavorable movements in discount rates or market multiples used in determining fair value.

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

X
- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=123372394&loc=d3e18726-107790 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
Name: | us-gaap_SignificantAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration