Defined Benefits

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Defined Benefits

9. Defined Benefits

(PPL, LKE and LG&E)

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, LKE, and LG&E for the periods ended June 30:

	Pension Benefits
	Three Months								Six Months
	U.S.				U.K.				U.S.				U.K.
	2020		2019		2020		2019		2020		2019		2020		2019
PPL
Service cost	$	15	$	12	$	21	$	17	$	28	$	25	$	44	$	34
Interest cost	36		41		35		48		74		82		71		95
Expected return on plan assets	(63)		(61)		(151)		(150)		(123)		(122)		(309)		(298)
Amortization of:
Prior service cost	2		2		—		—		4		4		—		—
Actuarial loss	24		14		52		23		44		27		106		47
Net periodic defined benefit costs (credits) before settlements	14		8		(43)		(62)		27		16		(88)		(122)
Settlements	—		—		—		—		—		1		—		—
Net periodic defined benefit costs (credits)	$	14	$	8	$	(43)	$	(62)	$	27	$	17	$	(88)	$	(122)

	Pension Benefits
	Three Months				Six Months
	2020		2019		2020		2019
LKE
Service cost	$	7	$	5	$	12	$	11
Interest cost	13		17		29		33
Expected return on plan assets	(26)		(26)		(50)		(51)
Amortization of:
Prior service cost	2		2		4		4
Actuarial loss (a)	10		6		19		10
Net periodic defined benefit costs	$	6	$	4	$	14	$	7

(a) As a result of treatment approved by the KPSC, the difference between actuarial loss calculated in accordance with LKE's accounting policy and actuarial loss calculated using a 15-year amortization period was $3 million and $6 million for the three and six months ended June 30, 2020 and $1 million for the three and six months ended June 30, 2019. This difference is recorded as a regulatory asset.

	Pension Benefits
	Three Months		Six Months
	2019 (a)		2019 (a)
LG&E
Service cost	$	1	$	1
Interest cost	3		6
Expected return on plan assets	(5)		(11)
Amortization of:
Prior service cost	2		3
Actuarial loss	1		3
Net periodic defined benefit costs	$	2	$	2

(a) The pension plans sponsored by LKE and LG&E were merged effective January 1, 2020 into the LG&E and KU Pension Plan, sponsored by LKE.

	Other Postretirement Benefits
	Three Months				Six Months
	2020		2019		2020		2019
PPL
Service cost	$	1	$	1	$	3	$	2
Interest cost	5		5		10		11
Expected return on plan assets	(6)		(4)		(11)		(9)
Amortization of prior service cost	1		—		1		—
Net periodic defined benefit costs	$	1	$	2	$	3	$	4
LKE
Service cost	$	1	$	1	$	2	$	2
Interest cost	2		2		4		4
Expected return on plan assets	(3)		(2)		(5)		(4)
Amortization of:
Prior service cost	—		1		—		1
Actuarial gain	—		(1)		—		(1)
Net periodic defined benefit costs	$	—	$	1	$	1	$	2

(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 11 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 June 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				Six Months
	2020		2019		2020		2019
PPL Electric	$	3	$	2	$	6	$	5
LG&E (a)	2		1		5		2
KU	—		—		1		—

(a) Allocations to LG&E increased in 2020 primarily due to the merger of plans sponsored by LKE and LG&E effective January 1, 2020 into the LG&E and KU Pension Plan.

(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 12 for additional information.