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Income Taxes (Tables)
 9 Months Ended
Sep. 30, 2018
Income Taxes [Line Items]  
Tax Reform
The final amounts reported in PPL’s 2017 federal income tax return, provisional adjustment amounts for the year ended December 31, 2017, the related measurement period adjustments and the resulting tax impact for the three and nine months ended September 30, 2018 are as follows.
 
Taxable Income (Loss) (a)
 
Adjustments per 2017 Tax Return
 
Adjustments per 2017 Tax Provision
 
September 30, 2018 Adjustment
PPL
 
 
 
 
 
Deemed Dividend
$
397

 
$
462

 
$
(65
)
Bonus Depreciation (b)
(67
)
 
—

 
(67
)
Consolidated Federal Net Operating Loss due to the TCJA(c)
(330
)
 
(462
)
 
132

   Total
$
—

 
$
—

 
$
—

 
 
 
 
 
 
PPL Electric
 
 
 
 
 
Bonus Depreciation (b)
$
(39
)
 
$
—

 
$
(39
)
Consolidated Federal Net Operating Loss reallocated due to the TCJA (c)
(68
)
 
(105
)
 
37

   Total
$
(107
)
 
$
(105
)
 
$
(2
)
 
 
 
 
 
 
LKE
 
 
 
 
 
Bonus Depreciation (b)
$
(28
)
 
$
—

 
$
(28
)
Consolidated Federal Net Operating Loss reallocated due to the TCJA (c)
(32
)
 
(45
)
 
13

   Total
$
(60
)
 
$
(45
)
 
$
(15
)
 
 
 
 
 
 
LG&E
 
 
 
 
 
Bonus Depreciation (b)
$
(17
)
 
$
—

 
$
(17
)
Consolidated Federal Net Operating Loss reallocated due to the TCJA (c)
17

 
—

 
17

   Total
$
—

 
$
—

 
$
—

 
 
 
 
 
 
KU
 
 
 
 
 
Bonus Depreciation (b)
$
(11
)
 
$
—

 
$
(11
)
Consolidated Federal Net Operating Loss reallocated due to the TCJA (c)
11

 
—

 
11

   Total
$
—

 
$
—

 
$
—


(a)
The above table reflects, for each item, the amount subject to change as a result of the TCJA and does not reflect the total amount of each item included in the return and the provision.
(b)
The TCJA increased the bonus depreciation percentage from 50% to 100% for qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023. Increases in tax depreciation reduce the Registrants' taxes payable and increase net deferred tax liabilities with no impact to “Income Taxes” on the Statements of Income.
(c)
An increase in the consolidated federal net operating loss reduces net deferred tax liabilities with the opposite effect if there is a decrease in the consolidated federal net operating loss. These increases or decreases have no impact to “Income Taxes” on the Statements of Income.
 
Income Tax Expense (Benefit)
 
Adjustments per 2017 Tax Return
 
Adjustments per 2017 Tax Provision
 
September 30, 2018 Adjustment
PPL
 
 
 
 
 
Deemed Dividend
$
139

 
$
161

 
$
(22
)
Foreign Tax Credits
(157
)
 
(205
)
 
48

Valuation of Foreign Tax Credit Carryforward
110

 
145

 
(35
)
Reduction in U.S. federal income tax rate (a)
229

 
220

 
9

   Total
$
321

 
$
321

 
$
—

 
 
 
 
 
 
 
Income Tax Expense (Benefit)
 
Adjustments per 2017 Tax Return
 
Adjustments per 2017 Tax Provision
 
September 30, 2018 Adjustment
PPL Electric
 
 
 
 
 
Reduction in U.S. federal income tax rate (a)
$
(13
)
 
$
(13
)
 
$
—

 
 
 
 
 
 
LKE
 
 
 
 
 
Reduction in U.S. federal income tax rate (a)
$
110

 
$
112

 
$
(2
)

(a)
The U.S. federal corporate income tax rate was reduced from 35% to 21%, as enacted by the TCJA, effective January 1, 2018.
Schedule of Effective Income Tax Rate Reconciliation
Reconciliations of income taxes for the periods ended September 30 are as follows.
(PPL)
 
Three Months
 
Nine Months
 
2018
 
2017
 
2018
 
2017
Federal income tax on Income Before Income Taxes at statutory tax rate (a)
$
115

 
$
165

 
$
373

 
$
480

Increase (decrease) due to:
 

 
 

 
 

 
 

State income taxes, net of federal income tax benefit
9

 
14

 
34

 
37

Valuation allowance adjustments
5

 
4

 
17

 
9

Impact of lower U.K. income tax rates relative to U.S. income tax rates (a)
(7
)
 
(45
)
 
(20
)
 
(133
)
U.S. income tax on foreign earnings - net of foreign tax credit (a) (b)
1

 
(8
)
 
2

 
(24
)
Federal and state tax reserve adjustments
—

 
—

 
3

 
—

Impact of the U.K. Finance Acts
(4
)
 
(3
)
 
(7
)
 
(12
)
Depreciation and other items not normalized
(1
)
 
(2
)
 
(4
)
 
(7
)
Amortization of excess deferred income taxes (a)
(11
)
 
—

 
(30
)
 
—

Deferred tax impact of state tax reform (c)
—

 
—

 
9

 
—

Interest benefit on U.K. financing entities
(4
)
 
(4
)
 
(13
)
 
(12
)
Stock-based compensation
—

 
—

 
1

 
(7
)
Other
—

 
(5
)
 
(3
)
 
(10
)
Total increase (decrease)
(12
)
 
(49
)
 
(11
)
 
(159
)
Total income taxes
$
103

 
$
116

 
$
362

 
$
321



(a)
The U.S. federal corporate income tax rate was reduced from 35% to 21%, as enacted by the TCJA, effective January 1, 2018.
(b)
Lower income taxes in 2017 primarily due to the tax benefit of accelerated pension contributions made in the first quarter of 2017. The related tax benefit was recognized over the annual period as a result of utilizing an estimated annual effective tax rate.
(c)
During the second quarter of 2018, LKE recorded deferred income tax expense, primarily associated with LKE's non-regulated entities, due to the Kentucky corporate income tax rate reduction from 6% to 5%, as enacted by HB 487, effective January 1, 2018.
PPL Electric Utilities Corp [Member]  
Income Taxes [Line Items]  
Schedule of Effective Income Tax Rate Reconciliation
Reconciliations of income taxes for the periods ended September 30 are as follows.

(PPL Electric)
 
 
 
 
 
 
 
 
Three Months
 
Nine Months
 
2018
 
2017
 
2018
 
2017
Federal income tax on Income Before Income Taxes at statutory tax rate (a)
$
30

 
$
56

 
$
93

 
$
144

Increase (decrease) due to:
 

 
 

 
 

 
 

State income taxes, net of federal income tax benefit
12

 
9

 
35

 
26

Depreciation and other items not normalized
(1
)
 
(1
)
 
(4
)
 
(5
)
Amortization of excess deferred income taxes (a)
(5
)
 
—

 
(13
)
 
—

Stock-based compensation
—

 
—

 
—

 
(5
)
Other
(1
)
 
—

 
—

 
(1
)
Total increase (decrease)
5

 
8

 
18

 
15

Total income taxes
$
35

 
$
64

 
$
111

 
$
159


(a)
The U.S. federal corporate income tax rate was reduced from 35% to 21%, as enacted by the TCJA, effective January 1, 2018.
LG And E And KU Energy LLC [Member]  
Income Taxes [Line Items]  
Schedule of Effective Income Tax Rate Reconciliation
Reconciliations of income taxes for the periods ended September 30 are as follows.

(LKE)
 
 
 
 
 
 
 
 
Three Months
 
Nine Months
 
2018
 
2017
 
2018
 
2017
Federal income tax on Income Before Income Taxes at statutory tax rate (a)
$
34

 
$
74

 
$
97

 
$
181

Increase (decrease) due to:
 

 
 

 
 

 
 

State income taxes, net of federal income tax benefit (b)
6

 
8

 
17

 
19

Amortization of investment tax credit
(1
)
 
(1
)
 
(3
)
 
(2
)
Deferred tax impact of U.S. tax reform (a)
(2
)
 
—

 
(2
)
 
—

Deferred tax impact of state tax reform (c)
—

 
—

 
9

 
—

Amortization of excess deferred income taxes (a)
(3
)
 
—

 
(14
)
 
—

Other
(2
)
 
(2
)
 
(2
)
 
(3
)
Total increase (decrease)
(2
)
 
5

 
5

 
14

Total income taxes
$
32

 
$
79

 
$
102

 
$
195

(a)
(a)
The U.S. federal corporate income tax rate was reduced from 35% to 21%, as enacted by the TCJA, effective January 1, 2018.
(b)
The Kentucky corporate income tax rate was reduced from 6% to 5%, as enacted by HB 487, effective January 1, 2018.
(c)
During the second quarter of 2018, LKE recorded deferred income tax expense, primarily associated with LKE's non-regulated entities, due to the Kentucky corporate income tax rate reduction from 6% to 5%, as enacted by HB 487, effective January 1, 2018.
Louisville Gas And Electric Co [Member]  
Income Taxes [Line Items]  
Schedule of Effective Income Tax Rate Reconciliation
Reconciliations of income taxes for the periods ended September 30 are as follows.

(LG&E)
 
 
 
 
 
 
 
 
Three Months
 
Nine Months
 
2018
 
2017
 
2018
 
2017
Federal income tax on Income Before Income Taxes at statutory tax rate (a)
$
18

 
$
36

 
$
50

 
$
91

Increase (decrease) due to:
 

 
 

 
 

 
 

State income taxes, net of federal income tax benefit (b)
3

 
4

 
9

 
10

Amortization of excess deferred income taxes (a)
(1
)
 
—

 
(6
)
 
—

Other
(2
)
 
(1
)
 
(2
)
 
(2
)
Total increase (decrease)
—

 
3

 
1

 
8

Total income taxes
$
18

 
$
39

 
$
51

 
$
99



(a)
The U.S. federal corporate income tax rate was reduced from 35% to 21%, as enacted by the TCJA, effective January 1, 2018.
(b)
The Kentucky corporate income tax rate was reduced from 6% to 5%, as enacted by HB 487, effective January 1, 2018.
Kentucky Utilities Co [Member]  
Income Taxes [Line Items]  
Schedule of Effective Income Tax Rate Reconciliation
Reconciliations of income taxes for the periods ended September 30 are as follows.

(KU)
 
 
 
 
 
 
 
 
Three Months
 
Nine Months
 
2018
 
2017
 
2018
 
2017
Federal income tax on Income Before Income Taxes at statutory tax rate (a)
$
21

 
$
43

 
$
60

 
$
111

Increase (decrease) due to:
 

 
 

 
 

 
 

State income taxes, net of federal income tax benefit (b)
3

 
5

 
10

 
11

Amortization of excess deferred income taxes (a)
(2
)
 
—

 
(8
)
 
—

Other
(1
)
 
(1
)
 
(3
)
 
(2
)
Total increase (decrease)
—

 
4

 
(1
)
 
9

Total income taxes
$
21

 
$
47

 
$
59

 
$
120



(a)
The U.S. federal corporate income tax rate was reduced from 35% to 21%, as enacted by the TCJA, effective January 1, 2018.
(b)
The Kentucky corporate income tax rate was reduced from 6% to 5%, as enacted by HB 487, effective January 1, 2018.