Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Other Intangible Assets [Line Items]

Goodwill Rollforward

18. Goodwill and Other Intangible Assets
Goodwill
(PPL)
The changes in the carrying amount of goodwill by segment were:
		U.K. Regulated				Kentucky Regulated				Supply				Total
		2014		2013		2014		2013		2014		2013		2014		2013
Balance at beginning of period (a)		$	3,143	$	3,076	$	662	$	662	$	420	$	420	$	4,225	$	4,158
	Allocation to discontinued operations (b)										(82)				(82)
	Effect of foreign currency exchange rates		(138)		67										(138)		67
Balance at end of period (a)		$	3,005	$	3,143	$	662	$	662	$	338	$	420	$	4,005	$	4,225

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

(b)Represents goodwill allocated to the Montana hydroelectric generating facilities that were sold in November 2014. See Note 8 for additionalinformation.

Other Intangible Assets

Other Intangible Assets
(PPL)
The gross carrying amount and the accumulated amortization of other intangible assets were:
		December 31, 2014				December 31, 2013
		Gross				Gross
		Carrying		Accumulated		Carrying		Accumulated
		Amount		Amortization		Amount		Amortization
Subject to amortization:
	Contracts (a)	$	408	$	250	$	408	$	202
	Land and transmission rights		359		121		331		117
	Emission allowances/RECs (b)		15				16
	Licenses and other (c)		280		25		305		45
Total subject to amortization			1,062		396		1,060		364
Not subject to amortization due to indefinite life:
	Land and transmission rights		16				16
	Easements		250				239
Total not subject to amortization due to indefinite life			266				255
Total		$	1,328	$	396	$	1,315	$	364

(a)Gross carrying amount includes the fair value at the acquisition date of the OVEC power purchase contract and coal contracts with terms favorable to market recognized as a result of the 2010 acquisition of LKE by PPL. Offsetting regulatory liabilities were recorded related to these contracts, which are being amortized over the same period as the intangible assets, eliminating any income statement impact. This is referred to as "regulatory offset" in the tables below. See Note 6 for additional information.

(b)Emission allowances/RECs are expensed when consumed or sold; therefore, there is no accumulated amortization.

(c)"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.

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

Amortization expense for the years ended December 31, excluding consumption of emission allowances/RECs of $24 million, $23 million and $12 million in 2014, 2013 and 2012, was as follows:

		2014		2013		2012
Intangible assets with no regulatory offset	$	10	$	10	$	14
Intangible assets with regulatory offset		47		51		47
Total	$	57	$	61	$	61

Future Amortization Expense

Amortization expense for each of the next five years, excluding insignificant amounts for consumption of emission allowances/RECs, is estimated to be:
		2015		2016		2017		2018		2019
Intangible assets with no regulatory offset	$	8	$	8	$	8	$	8	$	8
Intangible assets with regulatory offset		50		26		9		9		9
Total	$	58	$	34	$	17	$	17	$	17

PPL Energy Supply LLC [Member]

Goodwill and Other Intangible Assets [Line Items]

Other Intangible Assets

(PPL Energy Supply)
The gross carrying amount and the accumulated amortization of other intangible assets were:
		December 31, 2014				December 31, 2013
		Gross				Gross
		Carrying		Accumulated		Carrying		Accumulated
		Amount		Amortization		Amount		Amortization
Subject to amortization:
	Land and transmission rights	$	17	$	14	$	17	$	14
	Emission allowances/RECs (a)		10				11
	Licenses and other (b)		270		19		295		39
Total subject to amortization		$	297	$	33	$	323	$	53

(a)Emission allowances/RECs are expensed when consumed or sold; therefore, there is no accumulated amortization.

(b)"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.

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

Amortization expense for the years ended December 31, excluding consumption of emission allowances/RECs of $24 million, $23 million and $12 million in 2014, 2013, and 2012 was as follows:

		2014		2013		2012
Amortization expense	$	4	$	5	$	9

PPL Electric Utilities Corp [Member]

Goodwill and Other Intangible Assets [Line Items]

Other Intangible Assets

(PPL Electric)
The gross carrying amount and the accumulated amortization of other intangible assets were:
		December 31, 2014				December 31, 2013
		Gross				Gross
		Carrying		Accumulated		Carrying		Accumulated
		Amount		Amortization		Amount		Amortization
Subject to amortization:
	Land and transmission rights	$	321	$	105	$	293	$	102
	Licenses and other		4		1		5		1
Total subject to amortization			325		106		298		103
Not subject to amortization due to indefinite life:
	Land and transmission rights		16				16
Total		$	341	$	106	$	314	$	103

LG And E And KU Energy LLC [Member]

Goodwill and Other Intangible Assets [Line Items]

Other Intangible Assets

(LKE)
The gross carrying amount and the accumulated amortization of other intangible assets were:
		December 31, 2014				December 31, 2013
		Gross				Gross
		Carrying		Accumulated		Carrying		Accumulated
		Amount		Amortization		Amount		Amortization
Subject to amortization:
	Coal contracts (a)	$	269	$	210	$	269	$	171
	Land and transmission rights		21		2		20		2
	Emission allowances (b)		3				4
	OVEC power purchase agreement (c)		126		33		126		25
Total subject to amortization		$	419	$	245	$	419	$	198

(a)Gross carrying amount represents the fair value at the acquisition date of coal contracts with terms favorable to market recognized as a result of the 2010 acquisition by PPL. An offsetting regulatory liability was recorded related to these contracts, which is being amortized over the same period as the intangible assets, eliminating any income statement impact. See Note 6 for additional information.

(b)Emission allowances/RECs are expensed when consumed or sold; therefore, there is no accumulated amortization.

(c)Gross carrying amount represents the fair value at the acquisition date of the OVEC power purchase contract recognized as a result of the 2010 acquisition by PPL.An offsetting regulatory liability was recorded related to this contract, which is being amortized over the same period as the intangible asset, eliminating any income statement impact.See Note 6 for additional information.

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

Amortization expense was as follows:
		2014		2013		2012
Intangible assets with no regulatory offset			$	1
Intangible assets with regulatory offset	$	47		51	$	47
Total	$	47	$	52	$	47

Future Amortization Expense

Amortization expense for each of the next five years, excluding consumption of emission allowances, is estimated to be:
		2015		2016		2017		2018		2019
Intangible assets with regulatory offset	$	50	$	26	$	9	$	9	$	9

Louisville Gas And Electric Co [Member]

Goodwill and Other Intangible Assets [Line Items]

Other Intangible Assets

(LG&E)
The gross carrying amount and the accumulated amortization of other intangible assets were:
		December 31, 2014				December 31, 2013
		Gross				Gross
		Carrying		Accumulated		Carrying		Accumulated
		Amount		Amortization		Amount		Amortization
Subject to amortization:
	Coal contracts (a)	$	124	$	98	$	124	$	81
	Land and transmission rights		7		1		7		1
	Emission allowances (b)		1				1
	OVEC power purchase agreement (c)		87		23		87		17
Total subject to amortization		$	219	$	122	$	219	$	99

(a)Gross carrying amount represents the fair value at the acquisition date of coal contracts with terms favorable to market recognized as a result of the 2010 acquisition by PPL. An offsetting regulatory liability was recorded related to these contracts, which is being amortized over the same period as the intangible assets, eliminating any income statement impact. See Note 6 for additional information.

(b)Emission allowances/RECs are expensed when consumed or sold; therefore, there is no accumulated amortization.

(c)Gross carrying amount represents the fair value at the acquisition date of the OVEC power purchase contract recognized as a result of the 2010 acquisition by PPL. An offsetting regulatory liability was recorded related to this contract, which is being amortized over the same period as the intangible asset, eliminating any income statement impact.See Note 6 for additional information.

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

Amortization expense was as follows:
		2014		2013		2012
Intangible assets with regulatory offset	$	23	$	23	$	23

Future Amortization Expense

Amortization expense for each of the next five years, excluding consumption of emission allowances, is estimated to be:
		2015		2016		2017		2018		2019
Intangible assets with regulatory offset	$	24	$	13	$	6	$	6	$	6

Kentucky Utilities Co [Member]

Goodwill and Other Intangible Assets [Line Items]

Other Intangible Assets

(KU)
The gross carrying amount and the accumulated amortization of other intangible assets were:
		December 31, 2014				December 31, 2013
		Gross				Gross
		Carrying		Accumulated		Carrying		Accumulated
		Amount		Amortization		Amount		Amortization
Subject to amortization:
	Coal contracts (a)	$	145	$	112	$	145	$	90
	Land and transmission rights		14		1		13		1
	Emission allowances (b)		2				3
	OVEC power purchase agreement (c)		39		10		39		8
Total subject to amortization		$	200	$	123	$	200	$	99

(a)Gross carrying amount represents the fair value at the acquisition date of coal contracts with terms favorable to market recognized as a result of the 2010 acquisition by PPL. An offsetting regulatory liability was recorded related to these contracts, which is being amortized over the same period as the intangible assets, eliminating any income statement impact. See Note 6 for additional information.

(b)Emission allowances/RECs are expensed when consumed or sold; therefore, there is no accumulated amortization.

(c)Gross carrying amount represents the fair value at the acquisition date of the OVEC power purchase contract recognized as a result of the 2010 acquisition by PPL.An offsetting regulatory liability was recorded related to this contract, which is being amortized over the same period as the intangible asset, eliminating any income statement impact.See Note 6 for additional information.

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

Amortization expense was as follows:
		2014		2013		2012
Intangible assets with no regulatory offset			$	1
Intangible assets with regulatory offset	$	24		28	$	24
Total	$	24	$	29	$	24

Future Amortization Expense

Amortization expense for each of the next five years, excluding consumption of emission allowances, is estimated to be:
		2015		2016		2017		2018		2019
Intangible assets with regulatory offset	$	26	$	13	$	3	$	3	$	3