Defined Benefits

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Defined Benefits

10. Defined Benefits

(PPL)

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 for the periods ended June 30:

	Pension Benefits
	Three Months								Six Months
	U.S.				U.K. (a)				U.S.				U.K. (a)
	2021		2020		2021		2020		2021		2020		2021		2020
PPL
Service cost	$	15	$	15	$	31	$	21	$	28	$	28	$	56	$	44
Interest cost	29		36		33		35		61		74		62		71
Expected return on plan assets	(66)		(63)		(207)		(151)		(127)		(123)		(384)		(309)
Amortization of:
Prior service cost	2		2		—		—		4		4		—		—
Actuarial loss	24		24		62		52		49		44		116		106
Net periodic defined benefit costs (credits)	$	4	$	14	$	(81)	$	(43)	$	15	$	27	$	(150)	$	(88)

(a)    U.K. amounts are reflected in discontinued operations as the sale of the U.K. utility business was completed on June 14, 2021. See Note 9 for additional information on the sale of the U.K. utility business.

	Other Postretirement Benefits
	Three Months				Six Months
	2021		2020		2021		2020
PPL
Service cost	$	1	$	1	$	3	$	3
Interest cost	4		5		8		10
Expected return on plan assets	(7)		(6)		(12)		(11)
Amortization of:
Prior service cost	1		1		1		1
Net periodic defined benefit costs	$	(1)	$	1	$	—	$	3

(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 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
	2021		2020		2021		2020
PPL Electric	$	2	$	3	$	2	$	6
LG&E	(2)		2		1		5
KU	(2)		—		(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.

Expected Cash Flows - U.K. Pension Plans (PPL)

The pension plans of WPD are subject to formal actuarial valuations every three years, which are used to determine funding requirements. Contribution requirements were evaluated in accordance with the valuation performed as of March 31, 2019. Prior to the sale of the U.K. utility business, which was completed on June 14, 2021, WPD made contributions to its pension plans of $124 million in 2021. See Note 9 for additional information on the sale. WPD is currently permitted to recover in current revenues approximately 78% of its pension funding requirements for its primary pension plans.