Duke Energy 2012 Annual Report Download - page 241

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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)
Expected Benefi t Payments: Non-Qualifi ed Pension Plans
(in millions) Duke Energy
Duke Energy
Carolinas
Progress
Energy
Progress Energy
Carolinas
Progress
Energy Florida
Duke Energy
Ohio
Duke Energy
Indiana
Years ending December 31,
2013 $ 31 $3 $ 12 $ 2 $ 3 $— $ —
2014 31 2 12 2 3 — —
2015 28 2 12 2 3 — —
2016 27 2 11 2 3 — —
2017 28 2 11 2 3 — —
2018 – 2022 120 6 56 11 15 2 2
Other Post-Retirement Benefi t Plans
Duke Energy and most of its subsidiaries provide, and the Subsidiary
Registrants participate in, some health care and life insurance benefi ts for
retired employees on a contributory and non-contributory basis. Employees
are eligible for these benefi ts if they have met age and service requirements at
retirement, as defi ned in the plans. The health care benefi ts include medical
coverage, dental coverage, and prescription drug coverage and are subject to
certain limitations, such as deductibles and co-payments.
These benefi t costs are accrued over an employee’s active service period
to the date of full benefi ts eligibility. The net unrecognized transition obligation is
amortized over 20 years.
Actuarial gains and losses are amortized over the average remaining
service period of the active employees. The average remaining service period
of the active employees covered by the plan is ten years for Duke Energy, Duke
Energy Ohio and Duke Energy Indiana, eleven years for Duke Energy Carolinas,
nine years for Progress Energy and Progress Energy Florida and seven years for
Progress Energy Carolinas.
Duke Energy did not make any pre-funding contributions to its other
post-retirement benefi t plans during the years ended December 31, 2012, 2011
or 2010.
Components of Net Periodic Other Post-Retirement Benefi t Costs
Year Ended December 31, 2012
(in millions) Duke Energy
Duke Energy
Carolinas
Progress
Energy
Progress Energy
Carolinas
Progress
Energy Florida
Duke Energy
Ohio
Duke Energy
Indiana
Service cost $16 $ 2 $ 17 $ 8 $ 7 $ 1 $ 1
Interest cost on accumulated post-retirement
benefi t obligation 56 15 43 23 18 3 6
Expected return on plan assets (17) (10) (2) — (2) (1) (1)
Amortization of prior service credit (8) (5) — — — (1) —
Amortization of net transition liability 10 7 4 — 3 — —
Amortization of actuarial loss (gain) 14 3 35 20 12 (2) —
Special termination charge 915 2 1——
Net periodic pension costs(a)(b) $ 80 $ 13 $ 102 $ 53 $ 39 $— $ 6
Year Ended December 31, 2011
(in millions) Duke Energy
Duke Energy
Carolinas
Progress
Energy
Progress Energy
Carolinas
Progress
Energy Florida
Duke Energy
Ohio
Duke Energy
Indiana
Service cost $ 7 $ 2 $ 11 $ 5 $ 5 $ 1 $ 1
Interest cost on accumulated post-retirement
benefi t obligation 35 16 41 20 18 3 7
Expected return on plan assets (15) (10) (2) — (2) (1) (1)
Amortization of prior service credit (8) (5) — — — (1) —
Amortization of net transition liability 10 9 5 1 4 — —
Amortization of actuarial (gain) loss (3) 2 12 5 7 (2) 2
Net periodic pension costs(a)(b) $ 26 $ 14 $ 67 $ 31 $ 32 $— $ 9