Duke Energy 2011 Annual Report Download - page 183

PART II
DUKE ENERGY CORPORATION •DUKE ENERGY CAROLINAS, LLC •DUKE ENERGY OHIO, INC. •DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
Duke Energy Ohio
December 31, 2011 December 31, 2010
(in millions) Asset Liability Asset Liability
Derivatives Designated
as Hedging
Instruments
Interest rate contracts
Current Assets: Other 3—4—
Investments and Other
Assets: Other 2—2—
Total Derivatives
Designated as
Hedging Instruments $ 5 $ — $6 $—
Derivatives Not
Designated as
Hedging Instruments
Commodity contracts
Current Assets: Other $79 $39 $106 $ 57
Investments and Other
Assets: Other 29 18 62
Current Liabilities: Other 136 146 75 98
Deferred Credits and
Other Liabilities: Other 22 33 37
Interest rate contracts
Current Liabilities: Other —1—1
Deferred Credits and
Other Liabilities: Other —8—4
Total Derivatives Not
Designated as
Hedging Instruments $266 $245 $190 $169
Total Derivatives $271 $245 $196 $169
Thefollowingtableshowstheamountofthegainsandlosses
recognized on derivative instruments qualifying and designated as
cash flow hedges by type of derivative contract during the years
ended December 31, 2011 and 2010, and the Consolidated
Statements of Operations line items in which such gains and losses
are included.
Cash Flow Hedges — Location and Amount of Pre-Tax Gains and
(Losses) Recognized in Comprehensive Income
Duke Energy
Year Ended December 31,
(in millions) 2011 2010
Amount of Pre-tax (Losses) Gains
Recorded in AOCI
Interest rate contracts (88) 2
Total Pre-tax (Losses) Gains Recorded in
AOCI $(88) $2
Location of Pre-tax Gains (Losses)
Reclassified from AOCI into Earnings
Commodity contracts
Fuel used in electric generation and
purchased power-non-regulated —2
Interest rate contracts
Interest expense (5) (5)
Total Pre-tax Losses Reclassified from
AOCI into Earnings $ (5) $(3)
Duke Energy Ohio
Year Ended December 31,
(in millions) 2011 2010
Location of Pre-tax Gains Reclassified from
AOCI into Earnings
Commodity contracts
Fuel used in electric generation and
purchased power-non-regulated $— $2
Total Pre-tax Gains Reclassified from AOCI
into Earnings $— $2
There was no hedge ineffectiveness during the years ended
December 31, 2011 and 2010, and no gains or losses have been
excluded from the assessment of hedge effectiveness during the same
periods for all Duke Energy Registrants.
Duke Energy. At December 31, 2011, $115 million of pre-tax
deferred net losses on derivative instruments related to interest rate
cash flow hedges remains in AOCI and a $10 million pre-tax gain is
expected to be recognized in earnings during the next 12 months as
the hedged transactions occur.
Duke Energy Ohio. At December 31, 2011, there were no
deferred gains or losses on derivative instruments related to
commodity cash flow hedges remaining in AOCI.
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