Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Instruments And Hedging Activities [Line Items]

Fair Value and Balance Sheet Location of Derivative Instruments

The following table presents the fair value and location of derivative instruments recorded on the Balance Sheets.



	December 31, 2016								December 31, 2015
	Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments				Derivatives designated as hedging instruments				Derivatives not designated as hedging instruments
	Assets		Liabilities		Assets		Liabilities		Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps (b)	$	—	$	—	$	—	$	4	$	—	$	24	$	—	$	5
Cross-currency swaps (b)	32		—		—		—		35		—		—		—
Foreign currency contracts	—		—		31		21		10		—		94		1
Total current	32		—		31		25		45		24		94		6
Noncurrent:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps (b)	—		—		—		27		—		—		—		42
Cross-currency swaps (b)	156		—		—		—		51		—		—		—
Foreign currency contracts	—		—		180		6		—		—		105		—
Total noncurrent	156		—		180		33		51		—		105		42
Total derivatives	$	188	$	—	$	211	$	58	$	96	$	24	$	199	$	48


(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.

Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet

The following tables present the pre-tax effect of derivative instruments recognized in income, OCI or regulatory assets and regulatory liabilities.



Derivative Relationships	Derivative Gain (Loss) Recognized in OCI (Effective Portion)			Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
2016
Cash Flow Hedges:
Interest rate swaps	$	(21	)	Interest Expense	$	(7	)	$	—
Cross-currency swaps	130			Other Income (Expense) - net	116			—
				Interest Expense	3			—
Total	$	109			$	112		$	—
Net Investment Hedges:
Foreign currency contracts	$	2

2015
Cash Flow Hedges:
Interest rate swaps	$	(34	)	Interest Expense	$	(11	)	$	—
				Discontinued operations	—			(77		)
Cross-currency swaps	60			Other Income (Expense) - net	49			—
				Interest Expense	2			—
Commodity contracts				Discontinued operations	13			7
Total	$	26			$	53		$	(70	)
Net Investment Hedges:
Foreign currency contracts	$	9



Derivative Relationships	Derivative Gain (Loss) Recognized in OCI (Effective Portion)			Location of Gain (Loss) Recognized in Income on Derivative	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)

2014
Cash Flow Hedges:
Interest rate swaps	$	(91	)	Interest Expense	$	(18	)	$	2
Cross-currency swaps	58			Other Income (Expense) - net	57			—
				Interest Expense	4			—
Commodity contracts				Discontinued operations	42			—
Total	$	(33	)		$	85		$	2
Net Investment Hedges:
Foreign currency contracts	$	23



Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized in Income on Derivative	2016			2015			2014
Foreign currency contracts	Other Income (Expense) - net	$	384		$	122		$	121
Interest rate swaps	Interest Expense	(7		)	(8		)	(8		)
	Total	$	377		$	114		$	113



Derivatives Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	2016		2015			2014
Interest rate swaps	Regulatory assets - noncurrent	$	—	$	(22	)	$	(66	)



Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized as Regulatory Liabilities/Assets	2016		2015		2014
Interest rate swaps	Regulatory assets - noncurrent	$	7	$	1	$	(12	)

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.



	Assets							Liabilities
			Eligible for Offset							Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received	Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2016
Treasury Derivatives
PPL	$	399	$	27	19	$	353	$	58	$	27	$	3	$	28
LKE	—		—		—	—		31		—		3		28
LG&E	—		—		—	—		31		—		3		28



	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2015
Treasury Derivatives
PPL	$	295	$	25	$	—	$	270	$	72	$	25	$	9	$	38
LKE	—		—		—		—		47		—		9		38
LG&E	—		—		—		—		47		—		9		38

Credit Risk-Related Contingent Features

At December 31, 2016, 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:



	PPL		LKE		LG&E
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features	$	13	$	13	$	13
Aggregate fair value of collateral posted on these derivative instruments	3		3		3
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a)	10		10		10


(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]

Fair Value and Balance Sheet Location of Derivative Instruments

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.



	December 31, 2016				December 31, 2015
	Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps	$	—	$	4	$	—	$	5
Total current	—		4		—		5
Noncurrent:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps	—		27		—		42
Total noncurrent	—		27		—		42
Total derivatives	$	—	$	31	$	—	$	47


(a)	Represents the location on the Balance Sheets.

Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet

The following table presents the pre-tax effect of derivative instruments designated as cash flow hedges that are recognized in regulatory assets. All derivative instruments designated as cash flow hedges were terminated in 2015 and there is no activity in the current period.



Derivative Instruments	Location of Gain (Loss)	2016		2015			2014
Interest rate swaps	Regulatory assets - noncurrent	$	—	$	(22	)	$	(66	)

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets.



Derivative Instruments	Location of Gain (Loss)	2016			2015			2014
Interest rate swaps	Interest Expense	$	(7	)	$	(8	)	$	(8	)



Derivative Instruments	Location of Gain (Loss)	2016		2015		2014
Interest rate swaps	Regulatory assets - noncurrent	$	7	$	1	$	(12	)

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.



	Assets							Liabilities
			Eligible for Offset							Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received	Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2016
Treasury Derivatives
PPL	$	399	$	27	19	$	353	$	58	$	27	$	3	$	28
LKE	—		—		—	—		31		—		3		28
LG&E	—		—		—	—		31		—		3		28



	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2015
Treasury Derivatives
PPL	$	295	$	25	$	—	$	270	$	72	$	25	$	9	$	38
LKE	—		—		—		—		47		—		9		38
LG&E	—		—		—		—		47		—		9		38

Credit Risk-Related Contingent Features



	PPL		LKE		LG&E
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features	$	13	$	13	$	13
Aggregate fair value of collateral posted on these derivative instruments	3		3		3
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a)	10		10		10


(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]

Fair Value and Balance Sheet Location of Derivative Instruments

The following table presents the fair value and the location on the Balance Sheets of derivatives not designated as hedging instruments.



	December 31, 2016				December 31, 2015
	Assets		Liabilities		Assets		Liabilities
Current:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps	$	—	$	4	$	—	$	5
Total current	—		4		—		5
Noncurrent:
Price Risk Management
Assets/Liabilities (a):
Interest rate swaps	—		27		—		42
Total noncurrent	—		27		—		42
Total derivatives	$	—	$	31	$	—	$	47


(a)	Represents the location on the Balance Sheets.

Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet

The following tables present the pre-tax effect of derivatives not designated as cash flow hedges that are recognized in income or regulatory assets.



Derivative Instruments	Location of Gain (Loss)	2016			2015			2014
Interest rate swaps	Interest Expense	$	(7	)	$	(8	)	$	(8	)



Derivative Instruments	Location of Gain (Loss)	2016		2015		2014
Interest rate swaps	Regulatory assets - noncurrent	$	7	$	1	$	(12	)



Derivative Instruments	Location of Gain (Loss)	2016		2015			2014
Interest rate swaps	Regulatory asset - noncurrent	$	—	$	(11	)	$	(33	)

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.



	Assets							Liabilities
			Eligible for Offset							Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received	Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2016
Treasury Derivatives
PPL	$	399	$	27	19	$	353	$	58	$	27	$	3	$	28
LKE	—		—		—	—		31		—		3		28
LG&E	—		—		—	—		31		—		3		28



	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2015
Treasury Derivatives
PPL	$	295	$	25	$	—	$	270	$	72	$	25	$	9	$	38
LKE	—		—		—		—		47		—		9		38
LG&E	—		—		—		—		47		—		9		38

Credit Risk-Related Contingent Features



	PPL		LKE		LG&E
Aggregate fair value of derivative instruments in a net liability position with credit risk-related contingent features	$	13	$	13	$	13
Aggregate fair value of collateral posted on these derivative instruments	3		3		3
Aggregate fair value of additional collateral requirements in the event of a credit downgrade below investment grade (a)	10		10		10


(a)	Includes the effect of net receivables and payables already recorded on the Balance Sheet.

Kentucky Utilities Co [Member]

Derivative Instruments And Hedging Activities [Line Items]

Pre-tax Gain (Loss) on Derivative Instruments Recognized in Income or on the Balance Sheet



Derivative Instruments	Location of Gain (Loss)	2016		2015			2014
Interest rate swaps	Regulatory assets - noncurrent	$	—	$	(11	)	$	(33	)

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.



	Assets							Liabilities
			Eligible for Offset							Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received	Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2016
Treasury Derivatives
PPL	$	399	$	27	19	$	353	$	58	$	27	$	3	$	28
LKE	—		—		—	—		31		—		3		28
LG&E	—		—		—	—		31		—		3		28



	Assets								Liabilities
			Eligible for Offset								Eligible for Offset
	Gross		Derivative Instruments		Cash Collateral Received		Net		Gross		Derivative Instruments		Cash Collateral Pledged		Net
December 31, 2015
Treasury Derivatives
PPL	$	295	$	25	$	—	$	270	$	72	$	25	$	9	$	38
LKE	—		—		—		—		47		—		9		38
LG&E	—		—		—		—		47		—		9		38