Duke Energy 2011 Annual Report Download - page 229

PART II
DUKE ENERGY CORPORATION •DUKE ENERGY CAROLINAS, LLC •DUKE ENERGY OHIO, INC. •DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
Expected Benefit Payments
The following table presents Duke Energy’s expected benefit
payments to participants on behalf of Duke Energy Indiana in its
qualified, non-qualified and other post-retirement benefit plans over
the next 10 years, which are primarily paid out of the assets of the
various trusts. These benefit payments reflect expected future service,
as appropriate.
(in millions)
Qualified
Plans
Non-
Qualified
Plans
Other Post-
Retirement
Plans(a) Total
Years Ended December 31,
2012 $ 46 $1 $12 $ 59
2013 43 1 13 57
2014 42 1 13 56
2015 42 1 13 56
2016 43 1 13 57
2017 – 2021 223 3 61 287
(a) Duke Energy expects to receive future subsidies under Medicare Part D on behalf of
Duke Energy Indiana of $1 million in each of the years 2012-2016 and a total of $5
million during the years 2017-2021.
Employee Savings Plans
Duke Energy sponsors, and Duke Energy Indiana participates
in, an employee savings plan that covers substantially all U.S.
employees. Duke Energy contributes a matching contribution equal to
100% of employee before-tax and Roth 401(k) employee
contributions, of up to 6% of eligible pay per period. Duke Energy
Indiana expensed pre-tax plan contributions, as allocated by Duke
Energy, of $8 million in 2011, $6 million in 2010 and $5 million in
2009.
22. INCOME TAXES
Duke Energy and its subsidiaries file income tax returns in the
U.S. with federal and various state governmental authorities, and in
certain foreign jurisdictions. The taxable income of Duke Energy and
its subsidiaries is reflected in Duke Energy’s U.S. federal and state
income tax returns. These subsidiaries have a tax sharing agreement
with Duke Energy where the separate return method is used to
allocate tax expenses and benefits to the subsidiaries whose
investments or results of operations provide these tax expenses and
benefits. The accounting for income taxes essentially represents the
income taxes that each of these subsidiaries would incur if it were a
separate company filing its own tax return as a C-Corporation.
The following details the components of income tax expense:
INCOME TAX EXPENSE
For the Year Ended
December 31, 2011
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Duke
Energy
Ohio
Duke
Energy
Indiana
Current income taxes
Federal $ (37) $(122) $ (95) $ 95
State 21 30 1 42
Foreign 164 — — —
Total current income
taxes 148 (92) (94) 137
Deferred income taxes
Federal 526 531 194 (38)
State 56 40 (2) (23)
Foreign 32 — — —
Total deferred income
taxes 614 571 192 (61)
Investment tax credit
amortization (10) (7) (2) (2)
Total income tax expense
included in Consolidated
Statements of Operations(a) $752 $ 472 $ 96 $ 74
(a) Included in the “Total current income taxes” line above are uncertain tax benefits
relating primarily to certain temporary differences of $43 million at Duke Energy, $43
million at Duke Energy Carolinas, $3 million at Duke Energy Ohio and $3 million at
Duke Energy Indiana. The offset to these temporary differences are included in the
“Total deferred income taxes” line above.
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