Duke Energy 2011 Annual Report Download - page 210

PART II
DUKE ENERGY CORPORATION •DUKE ENERGY CAROLINAS, LLC •DUKE ENERGY OHIO, INC. •DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
Other Changes in Plan Assets and Projected Benefit Obligations
Recognized in Regulatory Assets, Regulatory Liabilities and
Accumulated Other Comprehensive Income: Non-Qualified
Pension Plans
For the Years Ended
December 31,
(in millions) 2011 2010
Regulatory assets, net increase $2 $23
Regulatory liabilities, net increase 73
Accumulated other comprehensive (income) loss
Deferred income tax asset (1) 8
Actuarial losses (gains) arising during the
year 1(8)
Reclassification of actuarial losses to
regulatory assets —(1)
Amortization of prior year prior service cost —(2)
Reclassification of prior services cost to
regulatory assets —(1)
Reclassification of prior services cost to
regulatory liabilities —(8)
Net amount recognized in accumulated other
comprehensive (income) loss $— $(12)
Reconciliation of Funded Status to Net Amount Recognized:
Non-Qualified Pension Plans
As of and for the Years
Ended December 31,
(in millions) 2011 2010
Change in Projected Benefit Obligation
Obligation at prior measurement date $167 $173
Service cost 11
Interest cost 89
Actuarial losses (gains) (2) 2
Benefits paid (14) (18)
Obligation at measurement date $160 $167
Change in Fair Value of Plan Assets
Benefits paid $(14) $(18)
Employer contributions 14 18
Plan assets at measurement date $— $—
The accumulated benefit obligation was $151 million and
$160 million at December 31, 2011 and 2010, respectively.
Amounts Recognized in the Consolidated Balance Sheets:
Non-Qualified Pension Plans
The following table provides the amounts related to Duke
Energy’s non-qualified pension plans that are reflected in Other within
Deferred Credits and Other Liabilities on the Consolidated Balance
Sheets at December 31, 2011 and 2010:
As of December 31,
(in millions) 2011 2010
Accrued pension liability(a) $(160) $(167)
(a) Includes $17 million and $19 million recognized in Other within Current Liabilities on
the Consolidated Balance Sheets as of December 31, 2011 and 2010, respectively.
The following table provides the amounts related to Duke
Energy’s non-qualified pension plans that are reflected in Other within
Regulatory Assets and Deferred Debits, Other within Deferred Credits
and Other Liabilities and AOCI on the Consolidated Balance Sheets at
December 31, 2011 and 2010:
As of December 31,
(in millions) 2011 2010
Regulatory assets $25 $23
Regulatory liabilities 10 3
Accumulated other comprehensive (income) loss
Deferred income tax (asset) liability —1
Prior service cost —1
Net actuarial loss (gain) 1(1)
Net amount recognized in accumulated other
comprehensive (income) loss $1 $1
Of the amounts above, $1 million of unrecognized prior service
cost and $1 million of unrecognized net actuarial loss will be
recognized in net periodic pension costs in 2012.
Additional Information: Non-Qualified Pension Plans
Information for Plans with Accumulated Benefit Obligation in
Excess of Plan Assets
As of December 31,
(in millions) 2011 2010
Projected benefit obligation $160 $167
Accumulated benefit obligation 151 160
Fair value of plan assets ——
Assumptions Used for Pension Benefits Accounting
As of December 31,
(percentages) 2011 2010 2009
Benefit Obligations
Discount rate 5.10 5.00 5.50
Salary increase (graded by age) 4.40 4.10 4.50
2011 2010 2009
Net Periodic Benefit Cost
Discount rate 5.00 5.50 6.50
Salary increase 4.10 4.50 4.50
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