Defined Benefits

9 Months Ended

Sep. 30, 2021

Retirement Benefits [Abstract]

Defined Benefits

10. Defined Benefits

(PPL)

Certain net periodic defined benefit costs are applied to accounts that are further distributed among capital, expense, regulatory assets and regulatory liabilities, including certain costs allocated to applicable subsidiaries for plans sponsored by PPL Services and LKE. Following are the net periodic defined benefit costs (credits) of the plans sponsored by PPL and its subsidiaries for the periods ended September 30:

	Pension Benefits
	Three Months				Nine Months
	2021		2020		2021		2020
PPL
Service cost	$	14	$	14	$	42	$	42
Interest cost	30		35		91		109
Expected return on plan assets	(64)		(62)		(191)		(185)
Amortization of:
Prior service cost	2		3		6		7
Actuarial loss	21		23		70		67
Net periodic defined benefit costs (credits) before settlements	3		13		18		40
Settlements (a)	14		13		14		13
Net periodic defined benefit costs (credits)	$	17	$	26	$	32	$	53

(a)    Settlement charges were incurred due to the amount of lump sum payment distributions from the LKE qualified pension plan. In accordance with existing regulatory accounting treatment, LG&E and KU have primarily maintained the settlement charge in regulatory assets to be amortized over fifteen years.

	Other Postretirement Benefits
	Three Months				Nine Months
	2021		2020		2021		2020
PPL
Service cost	$	2	$	2	$	5	$	5
Interest cost	4		4		12		14
Expected return on plan assets	(6)		(5)		(18)		(16)
Amortization of:
Prior service cost	—		—		1		1
Actuarial loss	(1)		—		(1)		—
Net periodic defined benefit costs	$	(1)	$	1	$	(1)	$	4

(PPL Electric, LG&E and KU)

PPL Electric is allocated costs of defined benefit plans sponsored by PPL Services and LG&E and KU are allocated costs of defined benefit plans sponsored by LKE. LG&E and KU are also allocated costs of defined benefit plans from LKS for defined benefit plans sponsored by LKE. See Note 12 for additional information on costs allocated to LG&E and KU from LKS. These allocations are based on participation in those plans, which management believes are reasonable. For the periods ended September 30, PPL Services allocated the following net periodic defined benefit costs to PPL Electric, and LKE allocated the following net periodic defined benefit costs to LG&E and KU:

	Three Months				Nine Months
	2021		2020		2021		2020
PPL Electric	$	—	$	3	$	2	$	9
LG&E	6		9		7		14
KU	1		4		—		5

(All Registrants)

The non-service cost components of net periodic defined benefit costs (credits) (interest cost, expected return on plan assets, amortization of prior service cost and amortization of actuarial gain and loss) are presented in "Other Income (Expense) - net" on the Statements of Income. See Note 13 for additional information.