Duke Energy 2013 Annual Report Download - page 190

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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)
17. VARIABLE INTEREST ENTITIES
A VIE is an entity that is evaluated for consolidation using more than
a simple analysis of voting control. The analysis to determine whether an
entity is a VIE considers contracts with an entity, credit support for an entity,
the adequacy of the equity investment of an entity and the relationship of
voting power to the amount of equity invested in an entity. This analysis is
performed either upon the creation of a legal entity or upon the occurrence of
an event requiring reevaluation, such as a significant change in an entity’s
assets or activities. A qualitative analysis of control determines the party that
consolidates a VIE. This assessment is based on (i) what party has the power
to direct the most significant activities of the VIE that impact its economic
performance, and (ii) what party has rights to receive benefits or is obligated
to absorb losses that are significant to the VIE. The analysis of the party that
consolidates a VIE is a continual reassessment. Other than the discussion below
related to CRC, no financial support was provided to any of the VIEs during the
years ended December 31, 2013, 2012 and 2011, or is expected to be provided
in the future, that was not previously contractually required.
CONSOLIDATED VIEs
The table below shows the VIEs that Duke Energy, Duke Energy Carolinas and Duke Energy Progress consolidate and how these entities impact their respective
Consolidated Balance Sheets.
December 31, 2013
(in millions) DERF(a) DEPR(b) CRC CinCapV Renewables Other Total
ASSETS
Current Assets
Restricted receivables of variable interest entities $ 673 $ 416 $595 $ 17 $ 18 $— $1,719
Other — — — 10 89 2 101
Investments and Other Assets
Other — — — 51 29 — 80
Property, Plant and Equipment
Property, plant and equipment, cost(c) — — — — 1,662 18 1,680
Accumulated depreciation and amortization — — — — (170) (5) (175)
Regulatory Assets and Deferred Debits
Other 1 1 — — 34 — 36
Total assets 674 417 595 78 1,662 15 3,441
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable — — — — 2 — 2
Taxes accrued — — — — 10 — 10
Current maturities of long-term debt — — — 14 66 — 80
Other — — — 10 17 — 27
Long-term Debt(d) 400 300 325 34 907 — 1,966
Deferred Credits and Other Liabilities
Other 1 — — 13 333 — 347
Total liabilities 401 300 325 71 1,335 — 2,432
Net assets of consolidated variable interest entities $273 $ 117 $ 270 $ 7 $ 327 $ 15 $1,009
(a) DERF is consolidated by Duke Energy Carolinas and Duke Energy.
(b) DEPR is consolidated by Duke Energy Progress and Duke Energy.
(c) Restricted as collateral for non-recourse debt of VIEs.
(d) Non-recourse to the general assets of Duke Energy.