Duke Energy 2012 Annual Report Download - page 257

PART II
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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, 2011
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Progress
Energy
Carolinas
Progress
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Unrecognized tax benefi ts — January 1 $342 $217 $176 $ 74 $ 99 $ 29 $ 21
Unrecognized tax benefi ts increases (decreases)
Gross increases — tax positions in prior periods 49 42 88 19 66 4 3
Gross decreases — tax positions in prior periods (18) (8) (24) (14) (21) (5) (3)
Gross increases — current period tax positions 16 9 9 8 1 4 3
Gross decreases — current period tax positions — — (8) (4) (4) — —
Settlements (4) — (68) (10) (61) — —
Total changes 43 43 (3) (1) (19) 3 3
Unrecognized tax benefi ts — December 31 $385 $260 $173 $ 73 $ 80 $ 32 $ 24
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
Unrecognized tax benefi ts — January 1 $ 664 $ 517 $160 $ 59 $ 98 $ 32 $ 28
Unrecognized tax benefi ts increases (decreases)
Gross increases — tax positions in prior periods 36 14 10 8 2 15 7
Gross decreases — tax positions in prior periods (43) (7) (4) (2) (1) (21) (13)
Gross increases — current period tax positions 5 3 14 10 3 1 1
Gross decreases — current period tax positions — — (4) (1) (3) — —
Settlements (320) (310) — — — 2 (2)
Total changes (322) (300) 16 15 1 (3) (7)
Unrecognized tax benefi ts — December 31 $ 342 $ 217 $176 $ 74 $ 99 $ 29 $ 21
The following table includes information regarding the Duke Energy Registrants’ unrecognized tax benefi ts(a).
December 31, 2012
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Progress
Energy
Carolinas
Progress
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Amount that if recognized, would affect the effective tax rate or regulatory liability(b) $131 $113 $8 $ 1 $ 1 $— $ 1
Amount that if recognized, would be recorded as a component of discontinued operations 11 — 3 — — — —
(a) It is reasonably possible that Duke Energy and Duke Energy Carolinas will refl ect an approximate $65 million reduction in unrecognized tax benefi ts within the next 12 months due to expected settlements. All other Duke Energy
Registrants do not anticipate a material increase or decrease in unrecognized tax benefi ts within the next 12 months.
(b) Duke Energy, Duke Energy Carolinas, Progress Energy, Progress Energy Carolinas and Progress Energy Florida are unable to estimate the specifi c amounts that would affect the effective tax rate or regulatory liability.
The following tables include interest and penalties recognized in the Consolidated Statements of Operations and the Consolidated Balance Sheets:
As of and For the 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
Net interest income recognized related to income taxes $10 $ 9 $— $— $— $— $ 2
Net interest expense recognized related to income taxes —— 2—2——
Interest receivable related to income taxes —7—————
Interest payable related to income taxes 7— 17 893 1