Duke Energy 2013 Annual Report Download - page 170

152
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)
DUKE ENERGY OHIO
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
December 31,
2012
(in millions) Asset Liability Asset Liability
Derivatives Designated as Hedging Instruments
Interest rate contracts
Current assets: other $ — $ — $ 2 $ —
Total Derivatives Designated as Hedging Instruments $ — $ — $ 2 $ —
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current assets: other 186 163 31 4
Investments and other assets: other 202 130 81 51
Current liabilities: other 1 36 106 132
Deferred credits and other liabilities: other 2 56 — 4
Interest rate contracts
Current liabilities: other — 1 — 1
Deferred credits and other liabilities: other — 4 — 7
Total Derivatives Not Designated as Hedging
Instruments $391 $390 $218 $ 199
Total Derivatives $391 $390 $220 $ 199
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 $ 186 $ 205 $ 199 $ 186
Gross amounts offset (165 ) (132 ) (173 ) (143 )
Net amount subject to master netting 21 73 26 43
Amounts not subject to master netting — — 1 4
Net amounts recognized on the
Consolidated Balance Sheet $ 21 $ 73 $ 27 $ 47
December 31, 2012
Derivative Assets Derivative Liabilities
(in millions) Current(a)
Non-
Current(b) Current(c)
Non-
Current(d)
Gross amounts recognized $ 137 $ 81 $ 136 $ 55
Gross amounts offset (110 ) (51 ) (125 ) (51 )
Net amounts subject to master netting 27 30 11 4
Amounts not subject to master netting 2 — 1 7
Net amounts recognized on the
Consolidated Balance Sheet $ 29 $ 30 $ 12 $ 11
(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.
There were no gains or losses on cash flow hedges recorded or
reclassified at Duke Energy Ohio for the years ended December 31, 2013 and
2012, respectively. There was an immaterial amount of losses on cash flow
hedges reclassified at Duke Energy Ohio for the year ended December 31, 2011.
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
Revenue: Nonregulated electric, natural gas and other $ 44 $ 76 $(26)
Fuel used in electric generation and purchased power —
nonregulated (100) 2 (1)
Interest rate contracts
Interest expense (1) (1) (1)
Total Pretax (Losses) Gains Recognized in Earnings $ (57) $ 77 $ (28)
Location of Pretax Gains and (Losses) Recognized as
Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets $ — $ 2 $ 1
Regulatory liabilities —(1) —
Interest rate contracts
Regulatory assets 4 — (4)
Total Pretax Gains (Losses) Recognized as Regulatory
Assets or Liabilities $ 4 $ 1 $ (3)