Duke Energy 2013 Annual Report Download - page 169

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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 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
Commodity contracts $ 1 $ 1 $ (3)
Interest rate contracts(a) —(2) (35)
Total Pretax Gains (Losses) Recorded in AOCI $ 1 $ (1) $(38)
Location of Pretax Gains and (Losses) Reclassified
from AOCI into Earnings
Interest rate contracts
Interest expense $— $ (2) $ (1)
Total Pretax Gains (Losses) Reclassified from AOCI
into Earnings $ — $ (2) $ (1)
Location of Pretax Gains and (Losses) Reclassified
from AOCI to Regulatory Assets(b)
Interest rate contracts
Regulatory assets $— $(42) $ —
Total Pretax Gains (Losses) Reclassified from AOCI
to Regulatory Assets $— $(42) $ —
(a) Reclassified to earnings as interest expense over the term of the related debt.
(b) Effective with the merger, Duke Energy Florida no longer designates interest rate derivatives for regulated
operations as cash flow hedges. As a result, the pretax losses on derivatives as of the date of the merger
were reclassified from AOCI to Regulatory assets.
There was no hedge ineffectiveness during the years ended December 31,
2013, 2012 and 2011, and no gains or losses have been excluded from the
assessment of hedge effectiveness during the same periods.
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
Fuel used in electric generation and purchased power $ (129) $ (339) $ (237)
Interest rate contracts
Interest expense (5) (2) —
Total Pretax (Losses) Gains Recognized in Earnings $ (134) $ (341) $ (237)
Location of Pretax Gains and (Losses) Recognized as
Regulatory Assets or Liabilities
Commodity contracts(a)
Regulatory assets $ 16 $ (116) $ (362)
Interest rate contracts
Regulatory assets 5 — —
Total Pretax Gains (Losses) Recognized as Regulatory
Assets or Liabilities $ 21 $ (116) $ (362)
(a) Reclassified to earnings to match recovery through the fuel clause.