Duke Energy 2012 Annual Report Download - page 198

178
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 $ 2 $—$ 3 $—
Investments and other assets: other —— 2 —
Total Derivatives Designated as Hedging Instruments $ 2 $ — $ 5 $—
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current assets: other $ 31 $ 4 $ 79 $ 39
Investments and other assets: other 81 51 29 18
Current liabilities: other 106 132 136 146
Deferred credits and other liabilities: other — 4 22 33
Interest rate contracts
Current liabilities: other — 1 — 1
Deferred credits and other liabilities: other — 7 — 8
Total Derivatives Not Designated as Hedging
Instruments $ 218 $199 $266 $245
Total Derivatives $220 $199 $271 $245
There were no gains or losses on cash fl ow hedges recorded or
reclassifi ed at Duke Energy Ohio for the years ended December 31, 2012 and
2011, respectively. There was an immaterial amount of losses on cash fl ow
hedges reclassifi ed at Duke Energy Ohio for the year ended December 31, 2010.
At December 31, 2012, 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 Ohio.
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, nonregulated electric, natural gas and other $ 76 $(26) $ (3)
Fuel used in electric generation and purchased power —
nonregulated 2 (1) 9
Interest rate contracts
Interest expense (1) (1) (1)
Total Pre-tax (Losses) Gains Recognized in Earnings $ 77 $(28) $ 5
Location of Pre-tax Gains and (Losses) Recognized as
Regulatory Assets or Liabilities
Commodity contracts
Regulatory asset $ 2 $ 1 $ 5
Regulatory liability (1) ——
Interest rate contracts
Regulatory asset — (4) (1)
Total Pre-tax Gains (Losses) Recognized as Regulatory
Assets of Liabilities $ 1 $ (3) $ 4
Duke Energy Indiana
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 Duke Energy Indiana 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
associated 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 Not Designated as Hedging Instruments
Commodity contracts
Current assets: other $ 10 $— $ 4 $—
Current liabilities: other ——— 2
Interest rate contracts
Current liabilities: other — 63 ——
Deferred credits and other liabilities: other ——— 66
Total Derivatives Not Designated as
Hedging Instruments $ 10 $ 63 $ 4 $ 68
Total Derivatives $ 10 $ 63 $ 4 $ 68
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 $2 $3
Total Pre-tax Gains (Losses) Reclassifi ed from AOCI into Earnings $3 $2 $3
(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.
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
Indiana at December 31, 2012, and 2011, respectively.
The following tables show the amount of the pre-tax gains and losses
recognized on undesignated contracts by type of derivative instrument and 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.