Duke Energy 2011 Annual Report Download - page 201

PART II
DUKE ENERGY CORPORATION •DUKE ENERGY CAROLINAS, LLC •DUKE ENERGY OHIO, INC. •DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
NON-CONSOLIDATED VIEs
The table below shows the VIEs that the Duke Energy Registrants do not consolidate and how these entities impact Duke Energy’s, Duke
Energy Ohio’s and Duke Energy Indiana’s respective Consolidated Balance Sheets. As discussed above, while Duke Energy consolidates CRC,
Duke Energy Ohio and Duke Energy Indiana do not consolidate CRC as they are not the primary beneficiary.
Duke Energy
(in millions) DukeNet Renewables Other Total
Duke Energy
Ohio
Duke Energy
Indiana
At December 31, 2011
Consolidated Balance Sheets
Receivables $— $— $— $— $129 $139
Investments in equity method unconsolidated affiliates 129 81 25 235 — —
Intangibles — — 111 111 111 —
Total Assets 129 81 136 346 240 139
Other Current Liabilities ——33 — —
Deferred Credits and Other Liabilities — — 18 18 — —
Total Liabilities — — 21 21 — —
Net Duke Energy Corporation Shareholders’ Equity $129 $81 $115 $325 $240 $139
Duke Energy
(in millions) DukeNet Renewables Other Total
Duke Energy
Ohio
Duke Energy
Indiana
At December 31, 2010
Consolidated Balance Sheets
Receivables $ — $ — $ — $ — $216 $192
Investments in equity method unconsolidated affiliates 137 95 23 255 — —
Intangibles — — 119 119 119 —
Total Assets 137 95 142 374 335 192
Other Current Liabilities — — 3 3 — —
Deferred Credits and Other Liabilities — — 28 28 — —
Total Liabilities — — 31 31 — —
Net Duke Energy Corporation Shareholders’ Equity $137 $95 $111 $343 $335 $192
No financial support that was not previously contractually
required was provided to any of the unconsolidated VIEs during the
years ended December 31, 2011 and 2010, respectively, or is
expected to be provided in the future.
With the exception of the power purchase agreement with the
Ohio Valley Electric Corporation (OVEC), which is discussed below,
and various guarantees, reflected in the table above as “Deferred
Credits and Other Liabilities”, the Duke Energy Registrants are not
aware of any situations where the maximum exposure to loss
significantly exceeds the carrying values shown above.
CRC.
As discussed above, CRC is consolidated only by Duke Energy.
Accordingly, the retained interest in the sold receivables recorded on
the Consolidated Balance Sheets of Duke Energy Ohio and Duke
Energy Indiana are eliminated in consolidation at Duke Energy.
The proceeds obtained from the sales of receivables are largely
cash but do include a subordinated note from CRC for a portion of the
purchase price (typically approximates 25% of the total proceeds).
The subordinated note is a retained interest (right to receive a
specified portion of cash flows from the sold assets) and is classified
within Receivables in Duke Energy Ohio’s and Duke Energy Indiana’s
Consolidated Balance Sheets at December 31, 2011 and 2010,
respectively. The retained interests reflected on the Consolidated
Balance Sheets of Duke Energy Ohio and Duke Energy Indiana
approximate fair value.
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