Duke Energy 2011 Annual Report Download - page 62

PART II
Year Ended December 31, 2010 as Compared to
December 31, 2009. Consolidated operating revenues for 2010
increased $1,541 million compared to 2009. This change was
primarily driven by the following:
• A $1,164 million increase at USFE&G. See Operating
Revenue discussion within “Segment Results” for USFE&G
below for further information;
• A $334 million increase at Commercial Power. See Operating
Revenue discussion within “Segment Results” for Commercial
Power below for further information; and
• A $46 million increase at International Energy. See Operating
Revenue discussion within “Segment Results” for International
Energy below for further information.
Consolidated Operating Expenses
Year Ended December 31, 2011 as Compared to
December 31, 2010. Consolidated operating expenses for 2011
decreased $204 million compared to 2010. This change was driven
primarily by the following:
• A $435 million decrease at Commercial Power. See Operating
Expense discussion within “Segment Results” for Commercial
Power below for further information; and
• A $302 million decrease at Other. See Operating Expense
discussion within “Segment Results” for Other below for
further information.
Partially offsetting these decreases was:
• A $399 million increase at USFE&G. See Operating Expense
discussion within “Segment Results” for USFE&G below for
further information; and
• A $132 million increase at International Energy. See
Operating Expense discussion within “Segment Results” for
International Energy below for further information.
Year Ended December 31, 2010 as Compared to
December 31, 2009. Consolidated operating expenses for 2010
increased $1,446 million compared to 2009. This change was
driven primarily by the following:
• A $624 million increase at USFE&G. See Operating Expense
discussion within “Segment Results” for USFE&G below for
further information;
• A $576 million increase at Commercial Power. See Operating
Expense discussion within “Segment Results” for Commercial
Power below for further information; and
• A $267 million increase at Other. See Operating Expense
discussion within “Segment Results” for Other below for
further information.
Partially offsetting these increases was:
• A $28 million decrease at International Energy. See Operating
Expense discussion within “Segment Results” for International
Energy below for further information.
Consolidated Gains on Sales of Other Assets and Other, net
Consolidated gains on sales of other assets and other, net was a
gain of $8 million, $153 million and $36 million in 2011, 2010
and 2009, respectively. The gains in 2010 are primarily due to the
$139 million gain from the sale of a 50% ownership interest in
DukeNet Communications, LLC (DukeNet). The gains for 2009
relate primarily to sales of emission allowances by USFE&G and
Commercial Power.
Consolidated Operating Income
Year Ended December 31, 2011 as Compared to
December 31, 2010. For 2011, consolidated operating income
increased $316 million compared to 2010. Drivers to operating
income are discussed above.
Year Ended December 31, 2010 as Compared to
December 31, 2009. For 2010, consolidated operating income
increased $212 million compared to 2009. Drivers to operating
income are discussed above.
Consolidated Other Income and Expenses, net
Year Ended December 31, 2011 as Compared to
December 31, 2010. For 2011, consolidated other income and
expenses decreased $42 million compared to 2010. This decrease
was primarily due to the $109 million gain on the sale of Duke
Energy’s ownership interest in Q-Comm Corporation (Q-Comm) in
2010 and unfavorable returns on investments that support benefit
obligations; partially offset by increased equity earnings of $44
million primarily from International Energy’s investment in NMC, a
higher equity component of allowance for funds used during
construction (AFUDC) of $26 million due to additional capital
spending for ongoing construction projects, and a $20 million Peru
arbitration award.
Year Ended December 31, 2010 as Compared to
December 31, 2009. For 2010, consolidated other income and
expenses increased $256 million compared to 2009. This increase
was primarily due to the $109 million gain on the sale of Duke
Energy’s ownership interest in Q-Comm in 2010, a higher equity
component of AFUDC of $81 million due to additional capital
spending for ongoing construction projects, increased equity earnings
of $46 million primarily from International Energy’s investment in
NMC and the absence of 2009 losses from its investment in Attiki
Gas Supply S.A. (Attiki), and a $26 million charge in 2009
associated with certain performance guarantees Duke Energy had
issued on behalf of the Crescent JV (Crescent).
Consolidated Interest Expense
Year Ended December 31, 2011 as Compared to
December 31, 2010. Consolidated interest expense increased
$19 million in 2011 as compared to 2010. This increase is primarily
attributable to higher debt balances in 2011 and higher interest
expense related to income taxes; partially offset by deferred interest
expense related to environmental plant costs.
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