XML 221 R41.htm IDEA: XBRL DOCUMENT v3.20.2
Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2020
Derivative Instruments And Hedging Activities [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table presents the fair value and location of derivative instruments recorded on the Balance Sheets.
 June 30, 2020December 31, 2019
Derivatives designated as
hedging instruments		Derivatives not designated
as hedging instruments		Derivatives designated as
hedging instruments		Derivatives not designated
as hedging instruments
 AssetsLiabilitiesAssetsLiabilitiesAssetsLiabilitiesAssetsLiabilities
Current:        
Price Risk Management        
Assets/Liabilities (a):        
Interest rate swaps (b)$—  $10  $—  $4  $—  $—  $—  $4  
Cross-currency swaps (b)127  —  —  —  5  —  —  —  
Foreign currency contracts—  —  107  —  —  —  142  5  
Total current127  10  107  4  5  —  142  9  
Noncurrent:        
Price Risk Management        
Assets/Liabilities (a):        
Interest rate swaps (b)—  —  —  24  —  —  —  17  
Cross-currency swaps (b)74  —  —  —  149  —  —  —  
Foreign currency contracts—  —  1  —  —  —  —  —  
Total noncurrent74  —  1  24  149  —  —  17  
Total derivatives$201  $10  $108  $28  $154  $—  $142  $26  
 
(a)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.
(b)Excludes accrued interest, if applicable.
Derivative Instruments, Gain (Loss)
The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended June 30, 2020.
 Three MonthsSix Months Three MonthsSix Months
Derivative
Relationships		Derivative Gain
(Loss) Recognized in
OCI		Derivative Gain
(Loss) Recognized in
OCI		Location of
Gain (Loss)
Recognized
in Income
on Derivative		Gain (Loss)
Reclassified
from AOCI
into Income		Gain (Loss)
Reclassified
from AOCI
into
Income
Cash Flow Hedges:     
Interest rate swaps$(5) $(10) Interest expense$(2) $(5) 
Cross-currency swaps39  54  Other income (expense) - net26  32  
Total$34  $44   $24  $27  
Net Investment Hedges:    
    Foreign currency contracts$1  $1     
Derivatives Not Designated as
Hedging Instruments		Location of Gain (Loss) Recognized in
Income on Derivative		Three MonthsSix Months
Foreign currency contractsOther income (expense) - net$1  $63  
Interest rate swapsInterest expense(2) (3) 
 Total$(1) $60  
Derivatives Not Designated as
Hedging Instruments		Location of Gain (Loss) Recognized as
Regulatory Liabilities/Assets		Three MonthsSix Months
Interest rate swapsRegulatory assets - noncurrent$1  $(7) 
 
The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities for the period ended June 30, 2019.
 Three MonthsSix Months Three MonthsSix Months
Derivative
Relationships		Derivative Gain
(Loss) Recognized in
OCI 		Derivative Gain
(Loss) Recognized in
OCI 		Location of
Gain (Loss)
Recognized
in Income
on Derivative		Gain (Loss)
Reclassified
from AOCI
into Income		Gain (Loss)
Reclassified
from AOCI
into Income
Cash Flow Hedges:     
Interest rate swaps$(8) $(8) Interest expense$(2) $(4) 
Cross-currency swaps51  28  Other income (expense) - net35  7  
Total$43  $20   $33  $3  
Net Investment Hedges:     
    Foreign currency contracts$1  $1     
Derivatives Not Designated as
Hedging Instruments		Location of Gain (Loss) Recognized in
Income on Derivative		Three MonthsSix Months
Foreign currency contractsOther income (expense) - net$45  $12  
Interest rate swapsInterest expense(1) (2) 
 Total$44  $10  
Derivatives Not Designated as
Hedging Instruments		Location of Gain (Loss) Recognized as
Regulatory Liabilities/Assets		Three MonthsSix Months
Interest rate swapsRegulatory assets - noncurrent$(2) $(3) 

The following table presents the effect of cash flow hedge activity on the Statement of Income for the period ended June 30, 2020.
Location and Amount of Gain (Loss) Recognized in Income on Hedging Relationships
Three MonthsSix Months
Interest ExpenseOther Income (Expense) - netInterest ExpenseOther Income (Expense) - net
Total income and expense line items presented in the income statement in which the effect of cash flow hedges are recorded$253  $76  $501  $201  
The effects of cash flow hedges:
Gain (Loss) on cash flow hedging relationships:
Interest rate swaps:
Amount of gain (loss) reclassified from AOCI to income(2) —  (5) —  
Cross-currency swaps:
Hedged items—  (26) —  (32) 
Amount of gain (loss) reclassified from AOCI to income—  26  —  32  
Derivative Positions Eligible for Offset with Related Cash Collateral The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.
 AssetsLiabilities
  Eligible for Offset  Eligible for Offset 
GrossDerivative
Instruments		Cash
Collateral
Received		NetGrossDerivative
Instruments		Cash
Collateral
Pledged		Net
June 30, 2020        
Treasury Derivatives        
PPL$309  $—  $22  $287  $38  $—  $2  $36  
LKE—  —  —  —  28  —  2  26  
LG&E—  —  —  —  28  —  2  26  
 AssetsLiabilities
  Eligible for Offset  Eligible for Offset 
GrossDerivative
Instruments		Cash
Collateral
Received		NetGrossDerivative
Instruments		Cash
Collateral
Pledged		Net
December 31, 2019       
Treasury Derivatives       
PPL$296  $5  $14  $277  $26  $5  $—  $21  
LKE—  —  —  —  21  —  —  21  
LG&E—  —  —  —  21  —  —  21  
Credit Risk-Related Contingent Features
At June 30, 2020, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:
 PPLLKELG&E
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features
$8  $2  $2  
Aggregate fair value of collateral posted on these derivative instruments—  —  —  
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a)
8  2  2  
 
(a)Includes the effect of net receivables and payables already recorded on the Balance Sheet.
LG And E And KU Energy LLC [Member]  
Derivative Instruments And Hedging Activities [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.
 June 30, 2020December 31, 2019
 AssetsLiabilities AssetsLiabilities
Current:     
Price Risk Management     
Assets/Liabilities:     
Interest rate swaps$—  $4   $—  $4  
Total current—  4   —  4  
Noncurrent:     
Price Risk Management     
Assets/Liabilities:     
Interest rate swaps—  24   —  17  
Total noncurrent—  24   —  17  
Total derivatives$—  $28   $—  $21  
Derivative Instruments, Gain (Loss)
The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended June 30, 2020.
 Location of Gain (Loss) Recognized in  
Derivative InstrumentsIncome on DerivativesThree MonthsSix Months
Interest rate swapsInterest expense$(2) $(3) 
 Location of Gain (Loss) Recognized in  
Derivative InstrumentsRegulatory AssetsThree MonthsSix Months
Interest rate swapsRegulatory assets - noncurrent$1  $(7) 

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended June 30, 2019. 
 Location of Gain (Loss) Recognized in  
Derivative InstrumentsIncome on DerivativesThree MonthsSix Months
Interest rate swapsInterest expense$(1) $(2) 
 Location of Gain (Loss) Recognized in  
Derivative InstrumentsRegulatory AssetsThree MonthsSix Months
Interest rate swapsRegulatory assets - noncurrent$(2) $(3) 
Derivative Positions Eligible for Offset with Related Cash Collateral The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.
 AssetsLiabilities
  Eligible for Offset  Eligible for Offset 
GrossDerivative
Instruments		Cash
Collateral
Received		NetGrossDerivative
Instruments		Cash
Collateral
Pledged		Net
June 30, 2020        
Treasury Derivatives        
PPL$309  $—  $22  $287  $38  $—  $2  $36  
LKE—  —  —  —  28  —  2  26  
LG&E—  —  —  —  28  —  2  26  
 AssetsLiabilities
  Eligible for Offset  Eligible for Offset 
GrossDerivative
Instruments		Cash
Collateral
Received		NetGrossDerivative
Instruments		Cash
Collateral
Pledged		Net
December 31, 2019       
Treasury Derivatives       
PPL$296  $5  $14  $277  $26  $5  $—  $21  
LKE—  —  —  —  21  —  —  21  
LG&E—  —  —  —  21  —  —  21  
Credit Risk-Related Contingent Features
At June 30, 2020, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:
 PPLLKELG&E
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features
$8  $2  $2  
Aggregate fair value of collateral posted on these derivative instruments—  —  —  
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a)
8  2  2  
 
(a)Includes the effect of net receivables and payables already recorded on the Balance Sheet.
Louisville Gas And Electric Co [Member]  
Derivative Instruments And Hedging Activities [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.
 June 30, 2020December 31, 2019
 AssetsLiabilities AssetsLiabilities
Current:     
Price Risk Management     
Assets/Liabilities:     
Interest rate swaps$—  $4   $—  $4  
Total current—  4   —  4  
Noncurrent:     
Price Risk Management     
Assets/Liabilities:     
Interest rate swaps—  24   —  17  
Total noncurrent—  24   —  17  
Total derivatives$—  $28   $—  $21  
Derivative Instruments, Gain (Loss)
The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended June 30, 2020.
 Location of Gain (Loss) Recognized in  
Derivative InstrumentsIncome on DerivativesThree MonthsSix Months
Interest rate swapsInterest expense$(2) $(3) 
 Location of Gain (Loss) Recognized in  
Derivative InstrumentsRegulatory AssetsThree MonthsSix Months
Interest rate swapsRegulatory assets - noncurrent$1  $(7) 

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets for the period ended June 30, 2019. 
 Location of Gain (Loss) Recognized in  
Derivative InstrumentsIncome on DerivativesThree MonthsSix Months
Interest rate swapsInterest expense$(1) $(2) 
 Location of Gain (Loss) Recognized in  
Derivative InstrumentsRegulatory AssetsThree MonthsSix Months
Interest rate swapsRegulatory assets - noncurrent$(2) $(3) 
Derivative Positions Eligible for Offset with Related Cash Collateral The table below summarizes the derivative positions presented in the balance sheets where a right of setoff exists under these arrangements and related cash collateral received or pledged.
 AssetsLiabilities
  Eligible for Offset  Eligible for Offset 
GrossDerivative
Instruments		Cash
Collateral
Received		NetGrossDerivative
Instruments		Cash
Collateral
Pledged		Net
June 30, 2020        
Treasury Derivatives        
PPL$309  $—  $22  $287  $38  $—  $2  $36  
LKE—  —  —  —  28  —  2  26  
LG&E—  —  —  —  28  —  2  26  
 AssetsLiabilities
  Eligible for Offset  Eligible for Offset 
GrossDerivative
Instruments		Cash
Collateral
Received		NetGrossDerivative
Instruments		Cash
Collateral
Pledged		Net
December 31, 2019       
Treasury Derivatives       
PPL$296  $5  $14  $277  $26  $5  $—  $21  
LKE—  —  —  —  21  —  —  21  
LG&E—  —  —  —  21  —  —  21  
Credit Risk-Related Contingent Features
At June 30, 2020, derivative contracts in a net liability position that contain credit risk-related contingent features, collateral posted on those positions and the related effect of a decrease in credit ratings below investment grade are summarized as follows:
 PPLLKELG&E
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features
$8  $2  $2  
Aggregate fair value of collateral posted on these derivative instruments—  —  —  
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a)
8  2  2  
 
(a)Includes the effect of net receivables and payables already recorded on the Balance Sheet.