Duke Energy 2013 Annual Report Download - page 164

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PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. •
DUKE ENERGY PROGRESS, INC. • DUKE ENERGY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
The tables below show the balance sheet location of derivative contracts
subject to enforceable master netting agreements and include collateral posted
to offset the net position. This disclosure is intended to enable users to evaluate
the effect of netting arrangements on financial position. The amounts shown
were calculated by counterparty. Accounts receivable or accounts payable may
also be available to offset exposures in the event of bankruptcy. These amounts
are not included in the tables below.
December 31, 2013
Derivative Assets Derivative Liabilities
(in millions) Current(a)
Non-
Current(b) Current(c)
Non-
Current(d)
Gross amounts recognized $ 214 $ 233 $ 322 $ 299
Gross amounts offset (179) (138) (192) (155)
Net amount subject to master netting 35 95 130 144
Amounts not subject to master netting — 14 4 11
Net amounts recognized on
the Consolidated Balance Sheet $ 35 $ 109 $ 134 $ 155
December 31, 2012
Derivative Assets Derivative Liabilities
(in millions) Current(a)
Non-
Current(b) Current(c)
Non-
Current(d)
Gross amounts recognized $ 127 $ 96 $ 402 $ 295
Gross amounts offset (114) (54) (151) (90)
Net amounts subject to master netting 13 42 251 205
Amounts not subject to master netting 22 19 166 54
Net amounts recognized on
the Consolidated Balance Sheet $ 35 $ 61 $ 417 $ 259
(a) Included in Other within Current Assets on the Consolidated Balance Sheet.
(b) Included in Other within Investments and Other Assets on the Consolidated Balance Sheet.
(c) Included in Other within Current Liabilities on the Consolidated Balance Sheet.
(d) Included in Other within Deferred Credits and Other Liabilities on the Consolidated Balance Sheet.
The following table shows the gains and losses during the year recognized
on cash flow hedges and the line items on the Consolidated Statements
of Operations where such gains and losses are included when reclassified
from AOCI.
Years Ended December 31,
(in millions) 2013 2012 2011
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts(a) $ 79 $ (23) $ (88)
Commodity contracts 1 1 —
Total Pretax Gains (Losses) Recorded in AOCI $ 80 $ (22) $ (88)
Location of Pretax Gains and (Losses) Reclassified
from AOCI into Earnings
Interest rate contracts
Interest expense $ (2) $ 2 $ (5)
Total Pretax Gains (Losses) Reclassified
from AOCI into Earnings $ (2) $ 2 $ (5)
(a) Reclassified to earnings as interest expense over the term of the related debt.
There was no hedge ineffectiveness during the years ended December 31,
2013, 2012 and 2011, and no gains or losses were excluded from the
assessment of hedge effectiveness during the same periods.
At December 31, 2013, and December 31, 2012, $59 million and
$151 million, respectively, of pretax deferred net losses interest rate cash
flow hedges were included in AOCI. A $4 million pretax gain is expected to be
recognized in earnings during the next 12 months as interest expense.
The following table shows the gains and losses during the year recognized
on undesignated derivatives and the line items on the Consolidated Statements
of Operations or the Consolidated Balance Sheets where the pretax gains and
losses were reported.
Years Ended
December 31,
(in millions) 2013 2012 2011
Location of Pretax Gains and (Losses) Recognized
in Earnings
Commodity contracts
Revenue: Regulated electric $ 11 $ (23) $ —
Revenue: Nonregulated electric, natural gas and other 43 38 (59)
Other income and expenses — (2) —
Fuel used in electric generation and purchased
power-regulated (200) (194) —
Fuel used in electric generation and purchased
power — nonregulated (100) 2 (1)
Interest rate contracts
Interest expense (18) (8) —
Total Pretax (Losses) Gains Recognized in Earnings $ (264) $ (187) $ (60)
Location of Pretax Gains and (Losses) Recognized
as Regulatory Assets or Liabilities
Commodity contracts(a)
Regulatory assets $ 10 $ (2) $ (1)
Regulatory liabilities 15 36 17
Interest rate contracts(b)
Regulatory assets 55 10 (165)
Regulatory liabilities — — (60)
Total Pretax Gains (Losses) Recognized as Regulatory
Assets or Liabilities $ 80 $ 44 $ (209)
(a) Reclassified to earnings to match recovery through the fuel clause.
(b) Reclassified to earnings as interest expense over the term of the related debt.
DUKE ENERGY CAROLINAS
The following table shows the fair value of derivatives and the line
items in the Consolidated Balance Sheets where they are reported. Although
derivatives subject to master netting arrangements are netted on the
Consolidated Balance Sheets, the fair values presented below are shown gross
and cash collateral on the derivatives has not been netted against the fair
values shown.