Defined Benefits

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Defined Benefits

10. 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 March 31:

	Pension Benefits
	Three Months
	U.S.				U.K. (a)
	2021		2020		2021		2020
PPL
Service cost	$	13	$	13	$	25	$	23
Interest cost	32		38		29		36
Expected return on plan assets	(61)		(60)		(177)		(158)
Amortization of:
Prior service cost	2		2		—		—
Actuarial loss	25		20		54		54
Net periodic defined benefit costs (credits)	$	11	$	13	$	(69)	$	(45)

(a)    U.K. amounts are reflected in discontinued operations. See Note 9 for additional information on the share purchase agreement to sell the U.K. utility business.

	Pension Benefits
	Three Months
	2021		2020
LKE
Service cost	$	6	$	5
Interest cost	14		16
Expected return on plan assets	(24)		(24)
Amortization of:
Prior service cost	2		2
Actuarial loss (a)	11		9
Net periodic defined benefit costs (credits)	$	9	$	8

(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 for the three months ended March 31, 2021 and 2020.

.

	Other Postretirement Benefits
	Three Months
	2021		2020
PPL
Service cost	$	2	$	2
Interest cost	4		5
Expected return on plan assets	(5)		(5)
Net periodic defined benefit costs	$	1	$	2
LKE
Service cost	$	1	$	1
Interest cost	2		2
Expected return on plan assets	(2)		(2)
Net periodic defined benefit costs	$	1	$	1

(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 12 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 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
	2021		2020
PPL Electric	$	—	$	3
LG&E	3		3
KU	1		1

(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 13 for additional information.