Duke Energy 2012 Annual Report Download - page 194

174
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY
CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
December 31,
2012
December 31,
2011
(in millions) Asset Liability Asset Liability
Derivatives Designated as Hedging Instruments
Interest rate contracts
Current assets: other $— $— $ 1 $—
Total Derivatives Designated as Hedging
Instruments $— $— $ 1 $—
Derivatives Not Designated as Hedging
Instruments
Commodity contracts
Current liabilities: other — 6 ——
Deferred credits and other liabilities: other — 6 ——
Total Derivatives Not Designated as Hedging
Instruments $— $ 12 $— $—
Total Derivatives $— $ 12 $ 1 $—
The following table shows the amount of gains and losses recognized
on derivative instruments designated and qualifying as cash fl ow hedges by
type of derivative contract, and the Consolidated Statements of Operations
line items in which such gains and losses are included when reclassifi ed
from AOCI.
Years Ended
December 31,
(in millions) 2012 2011 2010
Location of Pre-tax Gains and (Losses) Reclassifi ed
from AOCI into Earnings(a)
Interest rate contracts
Interest expense $(3) $(5) $(6)
Total Pre-tax Gains (Losses) Reclassifi ed from AOCI
into Earnings $(3) $(5) $(6)
(a) Represents the gains and losses on cash fl ow hedges previously recorded in AOCI during the term of the
hedging relationship and reclassifi ed into earnings during the current period.
At December 31, 2012 and 2011, there were no pre-tax deferred net gains
or losses on derivative instruments related to cash fl ow hedges remaining in
AOCI for Duke Energy Carolinas.
The following tables show the amount of the pre-tax gains and losses
recognized on undesignated contracts by type of derivative instrument and the
line items in the Consolidated Statements of Operations and Comprehensive
Income in which such gains and losses are included or deferred on the
Consolidated Balance Sheets as regulatory assets or liabilities.
Years Ended
December 31,
(in millions) 2012 2011 2010
Location of Pre-tax Gains and (Losses) Recognized
in Earnings
Commodity contracts
Revenue, regulated electric $(12) $— $1
Total Pre-tax (Losses) Gains Recognized in Earnings $(12) $— $1
Location of Pre-tax Gains and (Losses) Recognized as
Regulatory Assets or Liabilities
Commodity contracts
Regulatory liability $— $ — $ (1)
Interest rate contracts
Regulatory asset $— $ (94) —
Regulatory liability —(60) 60
Total Pre-tax Gains (Losses) Recognized as Regulatory
Assets of Liabilities $ — $(154) $ 59
Progress Energy
The following tables show fair value amounts of derivative contracts, and
the line items in the Consolidated Balance Sheets in which such amounts are
included. The fair values of derivative contracts are presented on a gross basis,
even when the derivative instruments are subject to master netting arrangements
where Progress Energy nets the fair value of derivative contracts subject to
master netting arrangements with the same counterparty on the Consolidated
Balance Sheets. Cash collateral payables and receivables associate with the
derivative contracts have not been netted against the fair value amounts.
December 31,
2012
December 31,
2011
(in millions) Asset Liability Asset Liability
Derivatives Designated as Hedging Instruments
Commodity contracts
Current liabilities: other $— $ 2 $— $ 2
Deferred credits and other liabilities: other — 1 —1
Interest rate contracts
Current liabilities: other ——— 76
Deferred credits and other liabilities: other ——— 17
Total Derivatives Designated as Hedging Instruments $— $ 3 $— $ 96
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current assets: other $ 3 $— $— $ —
Investments and other assets: other 8 — ——
Current liabilities: other — 231 5 371
Deferred credits and other liabilities: other — 195 — 332
Interest rate contracts
Current liabilities: other — 11 ——
Total Derivatives Not Designated as
Hedging Instruments $ 11 $437 $ 5 $703
Total Derivatives $ 11 $440 $ 5 $799