Duke Energy 2013 Annual Report Download - page 167

149
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 following table shows the gains and losses during the year recognized
on undesignated derivatives and the line items on the Consolidated Statements
of Operations and Comprehensive Income 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
Operating revenues $ 11 $ (11) $ 1
Fuel used in electric generation and purchased power (200) (454) (297)
Other income and expenses, net — 7 (59)
Interest rate contracts
Interest expense (17) (8) —
Total Pretax (Losses) Gains Recognized in Earnings $ (206) $ (466) $ (355)
Location of Pretax Gains and (Losses) Recognized as
Regulatory Assets or Liabilities
Commodity contracts(a)
Regulatory assets $ 10 $ (171) $ (502)
Interest rate contracts(b)
Regulatory assets 18 6 —
Total Pretax Gains (Losses) Recognized as Regulatory
Assets or Liabilities $ 28 $ (165) $ (502)
(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 PROGRESS
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.
December 31,
2013 2012
(in millions) Asset Liability Asset Liability
Derivatives Designated as Hedging Instruments
Commodity contracts
Current liabilities: other $— $ 1 $— $ 1
Deferred credits and other liabilities: other — — — 1
Total Derivatives Designated as Hedging Instruments $— $ 1 $— $ 2
Derivatives Not Designated as Hedging Instruments
Commodity contracts(a)
Current assets: other $— $ — $ 1 $ —
Investments and other assets: other 2 1 1 —
Current liabilities: other 2 40 — 85
Deferred credits and other liabilities: other 2 29 — 68
Interest rate contracts
Current liabilities: other — — — 11
Total Derivatives Not Designated as Hedging Instruments $ 6 $ 70 $ 2 $ 164
Total Derivatives $ 6 $ 71 $ 2 $ 166
(a) Substantially all of these contracts are recorded as regulatory assets or liabilities.
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 $ 3 $ 3 $41 $30
Gross amounts offset (3) (3) (3) (3)
Net amount subject to master netting — — 38 27
Net amounts recognized on
the Consolidated Balance Sheet $ — $— $38 $27
December 31, 2012
Derivative Assets Derivative Liabilities
(in millions) Current(a)
Non-
Current(b) Current(c)
Non-
Current(d)
Gross amounts recognized $ 1 $ 1 $97 $ 69
Gross amounts offset — — (2) (7)
Net amounts subject to master netting 1 1 95 62
Net amounts recognized on
the Consolidated Balance Sheet $ 1 $ 1 $95 $ 62
(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 and Comprehensive Income or Consolidated
Balance Sheets in which 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) $— $ (7) $(70)
Total Pretax Gains (Losses) Recorded in AOCI $— $ (7) $(70)
Location of Pretax Gains and (Losses) Reclassified
from AOCI into Earnings
Interest rate contracts
Interest expense $ — $ (5) $ (7)
Total Pretax Gains (Losses) Reclassified from AOCI
into Earnings $— $ (5) $ (7)