Duke Energy 2012 Annual Report Download - page 242

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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)
Year Ended December 31, 2010
(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 $ 16 $ 5 $ 10 $ 1 $ 1
Interest cost on accumulated post-retirement
benefi t obligation 38 17 45 20 22 3 8
Expected return on plan assets (15) (10) (4) (2) (2) (1) (1)
Amortization of prior service credit (8) (5) — — — (1) —
Amortization of net transition liability 11 9 5 1 4 — —
Amortization of actuarial (gain) loss (5) 3 13 4 9 (2) 1
Net periodic pension costs(a)(b) $ 28 $ 16 $ 75 $ 28 $ 43 $ — $ 9
(a) Duke Energy amounts exclude $9 million, $8 million and $9 million for the years ended December 31, 2012, 2011 and 2010, respectively, of regulatory asset amortization resulting from purchase accounting adjustments
associated with Duke Energy’s merger with Cinergy in April 2006.
(b) Duke Energy Ohio amounts exclude $2 million for each of the years ended December 31, 2012, 2011 and 2010, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with
Duke Energy’s merger with Cinergy in April 2006.
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (Modernization Act) introduced a prescription drug benefi t under Medicare
(Medicare Part D) as well as a federal subsidy to sponsors of retiree health care benefi t plans. Accounting guidance issued and adopted by Duke Energy in 2004
prescribes the appropriate accounting for the federal subsidy. The after-tax effect on Duke Energy’s net periodic post-retirement benefi t cost was a decrease of
$3 million in 2012, $3 million in 2011 and $4 million in 2010. Duke Energy recognized a $1 million subsidy receivable as of December 31, 2012 and 2011, which is
included in Receivables on the Consolidated Balance Sheets.
Other Changes in Plan Assets and Projected Benefi t Obligations
Recognized in Accumulated Other Comprehensive Income and Regulatory Assets: Other Post-Retirement Benefi t Plans
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
Regulatory assets, net increase (decrease) $ 484 $ (20) $ 228 $170 $ 28 $— $ (6)
Regulatory liabilities, net decrease $ (6) $ — $ — $ — $— $ (1) $ (2)
Accumulated other comprehensive (income) loss
Deferred income tax liability $ (2) $ — $ — $ — $— $ (4) $ —
Reclassifi cation of actuarial losses to an affi liate ——— — — 6—
Prior year service cost arising during the year ——— — — 1—
Actuarial losses arising during the year ——— — — 2—
Reclassifi cation of actuarial gains to regulatory
liabilities 4—— — ———
Amortization of prior year actuarial loss ——— — — 1—
Net amount recognized in accumulated other
comprehensive (income) loss $2 $— $— $— $— $6 $—