Defined Benefits

3 Months Ended

Mar. 31, 2015

9. Defined Benefits

(PPL, LKE and LG&E)

Certain net periodic defined benefit costs are applied to accounts that are further distributed between capital and expense, 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, LKE and its subsidiaries and LG&E for the periods ended March 31:

		Pension Benefits								Other Postretirement Benefits
		U.S.				U.K.
		2015		2014		2015		2014		2015		2014
PPL
Service cost		$	32	$	26	$	20	$	18	$	4	$	3
Interest cost			59		59		79		88		7		8
Expected return on plan assets			(79)		(74)		(131)		(130)		(7)		(6)
Amortization of:
	Prior service cost		2		5
	Actuarial (gain) loss		25		7		39		33
Net periodic defined benefit costs (credits)		$	39	$	23	$	7	$	9	$	4	$	5


LKE
Service cost		$	7	$	6	$	1	$	1
Interest cost			17		17		2		2
Expected return on plan assets			(22)		(20)		(1)		(1)
Amortization of:
	Prior service cost		2		1		1		1
	Actuarial (gain) loss		8		3
Net periodic defined benefit costs (credits)		$	12	$	7	$	3	$	3

LG&E
Interest cost		$	3	$	4
Expected return on plan assets			(5)		(5)
Amortization of:
	Prior service cost		1		1
	Actuarial (gain) loss		3		1
Net periodic defined benefit costs (credits)		$	2	$	1

(PPL Electric, LG&E and KU)

In addition to the specific plans it sponsors, LG&E is allocated costs of defined benefit plans sponsored by LKE based on its participation in those plans, which management believes are reasonable. PPL Electric and KU do not directly sponsor any defined benefit plans. PPL Electric is allocated costs of defined benefit plans sponsored by PPL Services and KU is allocated costs of defined benefit plans sponsored by LKE based on their participation in those plans, which management believes are reasonable. For the periods ended March 31, 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
	2015		2014

PPL Electric	$	8	$	5


LG&E	3	2
KU	5	3