Duke Energy 2011 Annual Report Download - page 197

PART II
DUKE ENERGY CORPORATION •DUKE ENERGY CAROLINAS, LLC •DUKE ENERGY OHIO, INC. •DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
As of December 31, 2011 As of December 31, 2010
Estimated
Fair
Value
Unrealized
Loss
Position
>12 months
Unrealized
Loss
Position
<12 months
Estimated
Fair
Value
Unrealized
Loss
Position
>12 months
Unrealized
Loss
Position
<12 months
Equity Securities $111 (4) $(12) $79 (11) $(5)
Corporate Debt Securities 57 (1) (1) 59 (2) (1)
Municipal Bonds ———28 (8) (1)
U.S. Government Bonds 8——33 — —
Auction Rate Debt Securities(a) 12 (3) — 12 (3) —
Other 113 (1) (3) 27 (1) (3)
Total long-term investments $301 $(9) $(16) $238 $(25) $(10)
(a) See Note 15 for information about fair value measurements related to investments in auction rate debt securities.
Duke Energy Indiana
December 31, 2011 December 31, 2010
Gross
Unrealized
Holding
Gains
Gross
Unrealized
Holding
Losses
Estimated
Fair
Value
Gross
Unrealized
Holding
Gains
Gross
Unrealized
Holding
Losses
Estimated
Fair
Value
Equity Securities $5 $(1) $46 $ 6 $— $47
Municipal Bonds 1—28——26
Total long-term investments $6 $(1) $74 $ 6 $— $73
Debt securities held at December 31, 2011 mature as follows: $1 million in less than one year, $20 million in one to five years, $6
million in six to 10 years and $1 million thereafter.
The fair values and gross unrealized losses of available-for-sale debt and equity securities which are in an unrealized loss position for which
other-than-temporary impairment losses have not been recorded in the Consolidated Statement of Operations, summarized by investment type
and length of time that the securities have been in a continuous loss position, are presented in the table below as of December 31, 2011 and
December 31, 2010.
As of December 31, 2011 As of December 31, 2010
Fair
Value
Unrealized
Loss
Position
>12 months
Unrealized
Loss
Position
<12 months
Fair
Value
Unrealized
Loss
Position
>12 months
Unrealized
Loss
Position
<12 months
Equity Securities $8 $— $(1) $ — $— $—
Municipal Bonds 3——14 — —
Total long-term investments $11 $— $ (1) $14 $— $—
17. VARIABLE INTEREST ENTITIES
A VIE is an entity that is evaluated for consolidation using more than a simple analysis of voting control. The analysis to determine whether
an entity is a VIE considers contracts with an entity, credit support for an entity, the adequacy of the equity investment of an entity and the
relationship of voting power to the amount of equity invested in an entity. This analysis is performed either upon the creation of a legal entity or
upon the occurrence of an event requiring reevaluation, such as a significant change in an entity’s assets or activities. If an entity is determined
to be a VIE, a qualitative analysis of control determines the party that consolidates a VIE based on what party has the power to direct the most
significant activities of the VIE that impact its economic performance as well as what party has rights to receive benefits or is obligated to absorb
losses that are significant to the VIE. The analysis of the party that consolidates a VIE is a continual reassessment.
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