Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2011

Goodwill and Other Intangible Assets [Abstract]

Goodwill Rollforward

20. Goodwill and Other Intangible Assets
Goodwill
(PPL and PPL Energy Supply)
The changes in the carrying amount of goodwill by segment were:
		Kentucky Regulated				International Regulated				Supply				Total
		2011		2010		2011		2010		2011		2010		2011		2010
PPL
Balance at beginning of period (a)		$	662			$	679	$	715	$	420	$	91	$	1,761	$	806
	Goodwill recognized during the period (b)			$	662		2,391						334		2,391		996
	Allocation to discontinued operations (c)												(5)				(5)
	Effect of foreign currency exchange rates						(38)		(36)						(38)		(36)
Balance at end of period (a)		$	662	$	662	$	3,032	$	679	$	420	$	420	$	4,114	$	1,761
						International Regulated				Supply				Total
						2011		2010		2011		2010		2011		2010
PPL Energy Supply
Balance at beginning of period (a)						$	679	$	715	$	86	$	91	$	765	$	806
	Derecognition (d)						(679)								(679)
	Allocation to discontinued operations (c)												(5)				(5)
	Effect of foreign currency exchange rates								(36)								(36)
Balance at end of period (a)						$		$	679	$	86	$	86	$	86	$	765

(a)       There were no accumulated impairment losses related to goodwill.

(b)       Activity in 2011 recognized as a result of the acquisition of WPD Midlands. Activity in 2010 recognized as a result of the acquisition of LKE. A portion of the goodwill related to the acquisition of LKE was allocated to the Supply segment. See Note 10for additional information.

(c)       Represents goodwill allocated to certain non-core generation facilities that were held for sale in 2010 and sold in 2011.

Other Intangible Assets

Other Intangibles
(PPL)
The gross carrying amount and the accumulated amortization of other intangible assets were:
		December 31, 2011				December 31, 2010
		Gross				Gross
		Carrying		Accumulated		Carrying		Accumulated
		Amount		Amortization		Amount		Amortization
Subject to amortization:
	Contracts (a) (b)	$	611	$	155	$	597	$	49
	Land and transmission rights (c)		263		110		256		110
	Emission allowances/RECs (d) (e) (f)		20				37
	Licenses and other (g)		265		35		242		30
Total subject to amortization			1,159		300		1,132		189
Not subject to amortization due to indefinite life:
	Land and transmission rights		16				16
	Easements (h)		199				77
Total not subject to amortization due to indefinite life			215				93
Total		$	1,374	$	300	$	1,225	$	189

(a)       Gross carrying amount for 2010 includes $394 million, which represents the fair value of contracts with terms favorable to market recognized as a result of the 2010 acquisition of LKE. The weighted average amortization period of these contracts was five years at the acquisition date. An offsetting regulatory liability was recorded related to these contracts, which is being amortized over the same weighted-average period as the intangible assets, eliminating any income statement impact. See Note6 for additional information.

(b)       Gross carrying amount for 2011 includes $10 million, which represents the fair value of customer contracts with terms favorable to market recognized as a result of the 2011 acquisition of WPD Midlands. The weighted-average amortization period of these contracts was ten years at the acquisition date. See Note 10 for additional information.

(c)       Gross carrying amount for 2010 includes $14 million, which represents the fair value of land and transmission rights recognized as a result of the 2010 acquisition of LKE. The weighted-average amortization period of these rights was 14 years at the acquisition date. An offsetting regulatory liability was recorded related to these rights, which is being amortized over the same weighted-average period as the intangible assets, eliminating any income statement impact. See Note 6 for additional information.

(d)       These emission allowances/RECs are expensed when consumed or sold. Consumption expense was $16 million, $45 million, and $32 million in 2011, 2010 and 2009. Consumption expense is expected to be insignificant in future periods.

(e)       Gross carrying amount for 2010 includes the fair value of emission allowances recognized as a result of the 2010 acquisition of LKE. An offsetting regulatory liability was recorded related to these emission allowances, which is being amortized as the emission allowances are consumed, eliminating any income statement impact. See Note 6 for additional information. The carrying amounts of these emission allowances were $5 million and $16 million as of December 31, 2011 and 2010. Consumption related to these emission allowances was $11 million and $2 million for 2011 and 2010.

(f)       During 2011 and 2010, PPL recorded $7 million and $17 million of impairment charges. See Note 18 for additional information.

(g)       "Other" includes costs for the development of licenses, the most significant of which is the COLA. Amortization of these costs begins when the related asset is placed in service. See Note 8 for additional information on the COLA.

(h)       Gross carrying amount for 2011 includes $88 million, which represents the fair value of easements recognized as a result of the 2011 acquisition of WPD Midlands. See Note10 for additional information.

Amortization Expense, Excluding Consumption of Emission Allowances / Renewable Energy Credits

Amortization expense, excluding consumption of emission allowances/RECs, was as follows:
		2011		2010		2009
Intangible assets with no regulatory offset	$	25	$	24	$	22
Intangible assets with regulatory offset		87		11
Total	$	112	$	35	$	22

Future Amortization Expense

Amortization expense for each of the next five years, excluding consumption of emission allowances/RECs, is estimated to be:
		2012		2013		2014		2015		2016
Intangible assets with no regulatory offset	$	24	$	24	$	24	$	24	$	22
Intangible assets with a regulatory offset		46		52		46		51		27
Total	$	70	$	76	$	70	$	75	$	49