Duke Energy 2011 Annual Report Download - page 221

PART II
DUKE ENERGY CORPORATION •DUKE ENERGY CAROLINAS, LLC •DUKE ENERGY OHIO, INC. •DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
Components of Net Periodic Pension Costs as allocated by Duke
Energy: Qualified Pension Plans
For the Years Ended
December 31,
(in millions) 2011(a) 2010(a) 2009(a)
Service cost $7 $7 $8
Interest cost on projected benefit
obligation 32 33 38
Expected return on plan assets (44) (44) (43)
Amortization of prior service cost 111
Amortization of actuarial loss 74—
Other 222
Net periodic pension costs $5 $3 $6
(a) These amounts exclude $7 million, $7 million and $4 million for the years ended
December 31, 2011, 2010 and 2009, respectively, of regulatory asset amortization
resulting from purchase accounting adjustments associated with Duke Energy’s merger
with Cinergy in April 2006.
Other Changes in Plan Assets and Projected Benefit Obligations
Recognized in Regulatory Assets and AOCI: Qualified Pension
Plans
For the Years Ended
December 31,
(in millions) 2011 2010
Regulatory assets, net increase $11 $6
Accumulated other comprehensive (income) loss
Deferred income tax asset 14
Actuarial loss (gain) arising during the year 10 (9)
Amortization of prior year actuarial losses (3) (1)
Amortization of prior year prior service cost —(1)
Net amount recognized in accumulated other
comprehensive (income) loss $8 $(7)
Reconciliation of Funded Status to Net Amount Recognized:
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 $651 $689
Service cost 77
Interest cost 32 33
Actuarial (gains) losses (9) 24
Plan amendments ——
Transfers (17) (54)
Benefits paid (37) (48)
Obligation at measurement date $627 $651
The accumulated benefit obligation was $602 million and
$616 million at December 31, 2011 and 2010, respectively.
As of and for the Years Ended
December 31,
(in millions) 2011 2010
Change in Fair Value of Plan Assets
Plan assets at prior measurement date $565 $557
Actual return on plan assets 665
Transfers (17) (54)
Benefits paid (37) (48)
Employer contributions 48 45
Plan assets at measurement date $565 $565
Amounts Recognized in the Consolidated Balance Sheets:
Qualified Pension Plans
The following table provides the amounts related to Duke Energy
Ohio’s 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 and for the Years Ended
December 31,
(in millions) 2011 2010
Accrued pension liability $(62) $(86)
The following table provides the amounts related to Duke Energy
Ohio’s qualified pension plans that are reflected in Other within
Regulatory Assets and Deferred Debits and AOCI on the Consolidated
Balance Sheets at December 31, 2011 and 2010:
As of December 31,
(in millions) 2011 2010
Regulatory assets $122 $111
Accumulated Other Comprehensive (Income) Loss
Deferred income tax asset $ (15) $ (16)
Prior service cost 11
Net actuarial loss 52 45
Net amount recognized accumulated other
comprehensive loss (income) $38 $30
Of the amounts above, approximately $9 million of
unrecognized net actuarial loss and approximately $1 million of
unrecognized prior service cost will be recognized in net periodic
pension costs in 2012.
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