XML 74 R26.htm IDEA: XBRL DOCUMENT

Available-for-Sale Securities

6 Months Ended

Jun. 30, 2012

Available-for-Sale Securities [Line Items]

17. Available-for-Sale Securities

(PPL, PPL Energy Supply, LKE and LG&E)

Certain short-term investments, securities held by the NDT funds and auction rate securities are classified as available-for-sale. Available-for-sale securities are carried on the Balance Sheets at fair value. Unrealized gains and losses on these securities are reported, net of tax, in OCI or are recognized currently in earnings when a decline in fair value is determined to be other-than-temporary. The specific identification method is used to calculate realized gains and losses.

(PPL and PPL Energy Supply)

The following table shows the amortized cost, the gross unrealized gains and losses recorded in AOCI, and the fair value of available-for-sale securities.

					June 30, 2012								December 31, 2011
							Gross		Gross						Gross		Gross
					Amortized		Unrealized		Unrealized				Amortized		Unrealized		Unrealized
					Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value
PPL
	NDT funds:
		Cash and cash equivalents			$	14					$	14	$	12					$	12
		Equity securities:
			U.S. large-cap			178	$	139				317		173	$	119				292
			U.S. mid/small-cap			69		58				127		67		50				117
		Debt securities:
			U.S. Treasury			86		10				96		76		10				86
			U.S. government sponsored
				agency		9		1				10		9		1				10
			Municipality			77		5	$	1		81		80		4	$	1		83
			Investment-grade corporate			32		3				35		35		3				38
			Other			2						2		2						2
		Receivables/payables, net				(1)						(1)
		Total NDT funds				466		216		1		681		454		187		1		640
	Auction rate securities					20				2		18		25				1		24
	Total				$	486	$	216	$	3	$	699	$	479	$	187	$	2	$	664

PPL Energy Supply
	NDT funds:
		Cash and cash equivalents			$	14					$	14	$	12					$	12
		Equity securities:
			U.S. large-cap			178	$	139				317		173	$	119				292
			U.S. mid/small-cap			69		58				127		67		50				117
		Debt securities:
			U.S. Treasury			86		10				96		76		10				86
			U.S. government sponsored
				agency		9		1				10		9		1				10
			Municipality			77		5	$	1		81		80		4	$	1		83
			Investment-grade corporate			32		3				35		35		3				38
			Other			2						2		2						2
		Receivables/payables, net				(1)						(1)
		Total NDT funds				466		216		1		681		454		187		1		640
	Auction rate securities					17				2		15		20				1		19
	Total				$	483	$	216	$	3	$	696	$	474	$	187	$	2	$	659

There were no securities with credit losses at June 30, 2012 and December 31, 2011.

The following table shows the scheduled maturity dates of debt securities held at June 30, 2012.

	Maturity		Maturity		Maturity		Maturity
	Less Than		1-5		5-10		in Excess
	1 Year		Years		Years		of 10 Years		Total
PPL
Amortized cost	$	5	$	84	$	61	$	76	$	226
Fair value		5		87		67		83		242

PPL Energy Supply
Amortized cost	$	5	$	84	$	61	$	73	$	223
Fair value		5		87		67		80		239

The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities for the periods ended June 30.

	Three Months				Six Months
	2012		2011		2012		2011
PPL
Proceeds from sales of NDT securities (a)	$	45	$	25	$	79	$	100
Other proceeds from sales		5				5		163
Gross realized gains (b)		8		6		13		23
Gross realized losses (b)		5		6		6		11

PPL Energy Supply
Proceeds from sales of NDT securities (a)	$	45	$	25	$	79	$	100
Other proceeds from sales		3				3
Gross realized gains (b)		8		6		13		23
Gross realized losses (b)		5		6		6		11

(a) These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust.

(b) Excludes the impact of other-than-temporary impairment charges recognized in the Statements of Income.

(PPL, LKE and LG&E)

At December 31, 2010, LG&E held $163 million aggregate principal amount of tax-exempt revenue bonds issued by Louisville/Jefferson County, Kentucky on behalf of LG&E that were purchased from the remarketing agent in 2008. During the six months ended June 30, 2011, LG&E received $163 million for its investments in these bonds when they were remarketed to unaffiliated investors. No realized or unrealized gains (losses) were recorded on these securities, as the difference between carrying value and fair value was not significant.

PPL Energy Supply LLC [Member]

Available-for-Sale Securities [Line Items]

Available-for-Sale Securities

17. Available-for-Sale Securities

(PPL, PPL Energy Supply, LKE and LG&E)

(PPL and PPL Energy Supply)

The following table shows the amortized cost, the gross unrealized gains and losses recorded in AOCI, and the fair value of available-for-sale securities.

					June 30, 2012								December 31, 2011
							Gross		Gross						Gross		Gross
					Amortized		Unrealized		Unrealized				Amortized		Unrealized		Unrealized
					Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value
PPL
	NDT funds:
		Cash and cash equivalents			$	14					$	14	$	12					$	12
		Equity securities:
			U.S. large-cap			178	$	139				317		173	$	119				292
			U.S. mid/small-cap			69		58				127		67		50				117
		Debt securities:
			U.S. Treasury			86		10				96		76		10				86
			U.S. government sponsored
				agency		9		1				10		9		1				10
			Municipality			77		5	$	1		81		80		4	$	1		83
			Investment-grade corporate			32		3				35		35		3				38
			Other			2						2		2						2
		Receivables/payables, net				(1)						(1)
		Total NDT funds				466		216		1		681		454		187		1		640
	Auction rate securities					20				2		18		25				1		24
	Total				$	486	$	216	$	3	$	699	$	479	$	187	$	2	$	664

PPL Energy Supply
	NDT funds:
		Cash and cash equivalents			$	14					$	14	$	12					$	12
		Equity securities:
			U.S. large-cap			178	$	139				317		173	$	119				292
			U.S. mid/small-cap			69		58				127		67		50				117
		Debt securities:
			U.S. Treasury			86		10				96		76		10				86
			U.S. government sponsored
				agency		9		1				10		9		1				10
			Municipality			77		5	$	1		81		80		4	$	1		83
			Investment-grade corporate			32		3				35		35		3				38
			Other			2						2		2						2
		Receivables/payables, net				(1)						(1)
		Total NDT funds				466		216		1		681		454		187		1		640
	Auction rate securities					17				2		15		20				1		19
	Total				$	483	$	216	$	3	$	696	$	474	$	187	$	2	$	659

There were no securities with credit losses at June 30, 2012 and December 31, 2011.

The following table shows the scheduled maturity dates of debt securities held at June 30, 2012.

	Maturity		Maturity		Maturity		Maturity
	Less Than		1-5		5-10		in Excess
	1 Year		Years		Years		of 10 Years		Total
PPL
Amortized cost	$	5	$	84	$	61	$	76	$	226
Fair value		5		87		67		83		242

PPL Energy Supply
Amortized cost	$	5	$	84	$	61	$	73	$	223
Fair value		5		87		67		80		239

The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities for the periods ended June 30.

	Three Months				Six Months
	2012		2011		2012		2011
PPL
Proceeds from sales of NDT securities (a)	$	45	$	25	$	79	$	100
Other proceeds from sales		5				5		163
Gross realized gains (b)		8		6		13		23
Gross realized losses (b)		5		6		6		11

PPL Energy Supply
Proceeds from sales of NDT securities (a)	$	45	$	25	$	79	$	100
Other proceeds from sales		3				3
Gross realized gains (b)		8		6		13		23
Gross realized losses (b)		5		6		6		11

(a) These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust.

(b) Excludes the impact of other-than-temporary impairment charges recognized in the Statements of Income.

(PPL, LKE and LG&E)

LG And E And KU Energy LLC [Member]

Available-for-Sale Securities [Line Items]

Available-for-Sale Securities

17. Available-for-Sale Securities

(PPL, PPL Energy Supply, LKE and LG&E)

(PPL and PPL Energy Supply)

The following table shows the amortized cost, the gross unrealized gains and losses recorded in AOCI, and the fair value of available-for-sale securities.

					June 30, 2012								December 31, 2011
							Gross		Gross						Gross		Gross
					Amortized		Unrealized		Unrealized				Amortized		Unrealized		Unrealized
					Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value
PPL
	NDT funds:
		Cash and cash equivalents			$	14					$	14	$	12					$	12
		Equity securities:
			U.S. large-cap			178	$	139				317		173	$	119				292
			U.S. mid/small-cap			69		58				127		67		50				117
		Debt securities:
			U.S. Treasury			86		10				96		76		10				86
			U.S. government sponsored
				agency		9		1				10		9		1				10
			Municipality			77		5	$	1		81		80		4	$	1		83
			Investment-grade corporate			32		3				35		35		3				38
			Other			2						2		2						2
		Receivables/payables, net				(1)						(1)
		Total NDT funds				466		216		1		681		454		187		1		640
	Auction rate securities					20				2		18		25				1		24
	Total				$	486	$	216	$	3	$	699	$	479	$	187	$	2	$	664

PPL Energy Supply
	NDT funds:
		Cash and cash equivalents			$	14					$	14	$	12					$	12
		Equity securities:
			U.S. large-cap			178	$	139				317		173	$	119				292
			U.S. mid/small-cap			69		58				127		67		50				117
		Debt securities:
			U.S. Treasury			86		10				96		76		10				86
			U.S. government sponsored
				agency		9		1				10		9		1				10
			Municipality			77		5	$	1		81		80		4	$	1		83
			Investment-grade corporate			32		3				35		35		3				38
			Other			2						2		2						2
		Receivables/payables, net				(1)						(1)
		Total NDT funds				466		216		1		681		454		187		1		640
	Auction rate securities					17				2		15		20				1		19
	Total				$	483	$	216	$	3	$	696	$	474	$	187	$	2	$	659

	Maturity		Maturity		Maturity		Maturity
	Less Than		1-5		5-10		in Excess
	1 Year		Years		Years		of 10 Years		Total
PPL
Amortized cost	$	5	$	84	$	61	$	76	$	226
Fair value		5		87		67		83		242

PPL Energy Supply
Amortized cost	$	5	$	84	$	61	$	73	$	223
Fair value		5		87		67		80		239

The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities for the periods ended June 30.

	Three Months				Six Months
	2012		2011		2012		2011
PPL
Proceeds from sales of NDT securities (a)	$	45	$	25	$	79	$	100
Other proceeds from sales		5				5		163
Gross realized gains (b)		8		6		13		23
Gross realized losses (b)		5		6		6		11

PPL Energy Supply
Proceeds from sales of NDT securities (a)	$	45	$	25	$	79	$	100
Other proceeds from sales		3				3
Gross realized gains (b)		8		6		13		23
Gross realized losses (b)		5		6		6		11

(a) These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust.

(b) Excludes the impact of other-than-temporary impairment charges recognized in the Statements of Income.

(PPL, LKE and LG&E)

Louisville Gas And Electric Co [Member]

Available-for-Sale Securities [Line Items]

Available-for-Sale Securities

17. Available-for-Sale Securities

(PPL, PPL Energy Supply, LKE and LG&E)

(PPL and PPL Energy Supply)

The following table shows the amortized cost, the gross unrealized gains and losses recorded in AOCI, and the fair value of available-for-sale securities.

					June 30, 2012								December 31, 2011
							Gross		Gross						Gross		Gross
					Amortized		Unrealized		Unrealized				Amortized		Unrealized		Unrealized
					Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value
PPL
	NDT funds:
		Cash and cash equivalents			$	14					$	14	$	12					$	12
		Equity securities:
			U.S. large-cap			178	$	139				317		173	$	119				292
			U.S. mid/small-cap			69		58				127		67		50				117
		Debt securities:
			U.S. Treasury			86		10				96		76		10				86
			U.S. government sponsored
				agency		9		1				10		9		1				10
			Municipality			77		5	$	1		81		80		4	$	1		83
			Investment-grade corporate			32		3				35		35		3				38
			Other			2						2		2						2
		Receivables/payables, net				(1)						(1)
		Total NDT funds				466		216		1		681		454		187		1		640
	Auction rate securities					20				2		18		25				1		24
	Total				$	486	$	216	$	3	$	699	$	479	$	187	$	2	$	664

PPL Energy Supply
	NDT funds:
		Cash and cash equivalents			$	14					$	14	$	12					$	12
		Equity securities:
			U.S. large-cap			178	$	139				317		173	$	119				292
			U.S. mid/small-cap			69		58				127		67		50				117
		Debt securities:
			U.S. Treasury			86		10				96		76		10				86
			U.S. government sponsored
				agency		9		1				10		9		1				10
			Municipality			77		5	$	1		81		80		4	$	1		83
			Investment-grade corporate			32		3				35		35		3				38
			Other			2						2		2						2
		Receivables/payables, net				(1)						(1)
		Total NDT funds				466		216		1		681		454		187		1		640
	Auction rate securities					17				2		15		20				1		19
	Total				$	483	$	216	$	3	$	696	$	474	$	187	$	2	$	659

	Maturity		Maturity		Maturity		Maturity
	Less Than		1-5		5-10		in Excess
	1 Year		Years		Years		of 10 Years		Total
PPL
Amortized cost	$	5	$	84	$	61	$	76	$	226
Fair value		5		87		67		83		242

PPL Energy Supply
Amortized cost	$	5	$	84	$	61	$	73	$	223
Fair value		5		87		67		80		239

The following table shows proceeds from and realized gains and losses on sales of available-for-sale securities for the periods ended June 30.

	Three Months				Six Months
	2012		2011		2012		2011
PPL
Proceeds from sales of NDT securities (a)	$	45	$	25	$	79	$	100
Other proceeds from sales		5				5		163
Gross realized gains (b)		8		6		13		23
Gross realized losses (b)		5		6		6		11

PPL Energy Supply
Proceeds from sales of NDT securities (a)	$	45	$	25	$	79	$	100
Other proceeds from sales		3				3
Gross realized gains (b)		8		6		13		23
Gross realized losses (b)		5		6		6		11

(a) These proceeds are used to pay income taxes and fees related to managing the trust. Remaining proceeds are reinvested in the trust.

(b) Excludes the impact of other-than-temporary impairment charges recognized in the Statements of Income.

(PPL, LKE and LG&E)

- Definition

Tabular disclosure of investments in certain debt and equity securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 10

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 310

-SubTopic 30

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Equity Security

-URI http://asc.fasb.org/extlink&oid=6511694

-Topic 320

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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-Section 50

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-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

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-Publisher FASB

-Name Accounting Standards Codification

-Glossary Debt Security

-URI http://asc.fasb.org/extlink&oid=6509901

-Topic 320

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 3, 19, 20, 21, 22, 137

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

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-Name Accounting Standards Codification

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 50

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

+ Details