Duke Energy 2012 Annual Report Download - page 206

186
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)
Progress Energy
The following tables provide the fair value measurement amounts for assets and liabilities recorded on Progress Energy’s Consolidated Balance Sheets.
Derivative amounts in the table below exclude cash collateral amounts which are disclosed in Note 15. See Note 17 for additional information related to investments
by major security type. Financial assets and liabilities are classifi ed in their entirety based on the lowest level of input signifi cant to the fair value measurement. Our
assessment of the signifi cance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities
and their placement within the fair value hierarchy levels.
December 31, 2012
(in millions) Total Fair Value Level 1 Level 2 Level 3
Nuclear decommissioning trust fund equity securities $1,245 $1,239 $ 6 $ —
Nuclear decommissioning trust fund debt securities and other 643 162 481 —
Other trading and available-for-sale debt securities and other(a) 57 17 40 —
Derivative assets(b) 11 — 11 —
Total assets 1,956 1,418 538 —
Derivative liabilities(c) (440) — (402) (38)
Net assets $1,516 $1,418 $ 136 $(38)
December 31, 2011
(in millions) Total Fair Value Level 1 Level 2 Level 3
Nuclear decommissioning trust fund equity securities $ 1,062 $ 1,061 $ 1 $ —
Nuclear decommissioning trust fund debt securities and other 585 87 498 —
Other trading and available-for-sale debt securities and other(a) 20 20 — —
Derivative assets(b) 5 — 5 —
Total assets 1,672 1,168 504 —
Derivative liabilities(c) (799) — (775) (24)
Net assets $ 873 $ 1,168 $ (271) $(24)
(a) Included in Other within Investments and Other Assets in the Consolidated Balance Sheets.
(b) Included in Other Current Assets within Current Assets and Other within Investments and Other Assets in the Consolidated Balance Sheets.
(c) Included in Derivative Liabilities within Current Liabilities and Other within Deferred Credits and Other Liabilities in the Consolidated Balance Sheets
The following tables provide a reconciliation of beginning and ending
balances of assets and liabilities measured at fair value on a recurring basis
where the determination of fair value includes signifi cant unobservable inputs
(Level 3).
Year Ended December 31, 2012
(in millions)
Derivatives
(net)
Balance at December 31, 2011 $(24)
Total pre-tax realized or unrealized gains included in earnings:
Regulated electric 1
Purchases, sales, issuances and settlements:
Issuances (16)
Settlements 4
Total losses included on the Consolidated Balance Sheet
as regulatory asset or liability (3)
Balance at December 31, 2012 $(38)
Pre-tax amounts included in the Consolidated Statements of
Comprehensive Income related to Level 3 measurements outstanding
at December 31, 2012
Regulated electric $ (12)
Total $(12)
Year Ended December 31, 2011
(in millions)
Derivatives
(net)
Balance at December 31, 2010 $(36)
Total losses included on the Consolidated Balance Sheet
as regulatory asset or liability (21)
Repurchase of CVOs under settlement and tender offer 60
Transfers into Level 3 — CVOs (74)
Transfers out of Level 3 — CVOs 14
Transfers out of Level 3 — commodities 33
Balance at December 31, 2011 $(24)
Year Ended December 31, 2010
(in millions)
Derivatives
(net)
Balance at December 31, 2009 $(39)
Total losses included on the Consolidated Balance Sheet
as regulatory asset or liability (44)
Transfers out of Level 3 — commodities 47
Balance at December 31, 2010 $(36)