Duke Energy 2013 Annual Report Download - page 191

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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)
December 31, 2012
(in millions) DERF(a) CRC CinCapV Renewables Other Total
ASSETS
Current Assets
Restricted receivables of variable interest entities $ 637 $ 534 $ 15 $ 16 $ (1) $1,201
Other — — 4 133 2 139
Investments and Other Assets
Other — — 62 14 2 78
Property, Plant and Equipment
Property, plant and equipment, cost(b) — — — 1,543 15 1,558
Accumulated depreciation and amortization — — — (98) (5) (103)
Regulatory Assets and Deferred Debits
Other — — — 40 — 40
Total assets 637 534 81 1,648 13 2,913
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable — — — 1 — 1
Notes payable and commercial paper — 312 — — — 312
Taxes accrued — — — 62 — 62
Current maturities of long-term debt — — 13 459 — 472
Other — — 4 25 — 29
Long-term Debt(c) 300 — 48 504 — 852
Deferred Credits and Other Liabilities
Deferred income taxes — — — 154 — 154
Asset retirement obligation — — — 23 — 23
Other — — 10 39 — 49
Total liabilities 300 312 75 1,267 — 1,954
Net assets of consolidated variable interest entities $ 337 $ 222 $ 6 $ 381 $ 13 $ 959
(a) DERF is consolidated by Duke Energy Carolinas and Duke Energy.
(b) Restricted as collateral for non-recourse debt of VIEs.
(c) Non-recourse to the general assets of Duke Energy.
The obligations of these VIEs are non-recourse to Duke Energy, Duke Energy Carolinas and Duke Energy Progress. These entities have no requirement to provide
liquidity to purchase assets of, or guarantee performance of these VIEs unless noted in the following paragraphs.
DERF
On a daily basis, Duke Energy Receivables Finance Company, LLC (DERF),
a bankruptcy remote, special purpose subsidiary of Duke Energy Carolinas, buys
certain accounts receivable arising from the sale of electricity and/or related
services from Duke Energy Carolinas. DERF is a wholly owned limited liability
company with a separate legal existence from its parent, and its assets are
not generally available to creditors of Duke Energy Carolinas. DERF borrows
$400 million under a credit facility to buy the receivables. Borrowing is limited
to the amount of qualified receivables sold, which is expected to be in excess of
$400 million. The receivables are used as collateral for commercial paper issued
through third parties. The credit facility expires in October 2016 and is reflected
on the Consolidated Balance Sheets as Long-term Debt. The secured credit
facility was not structured to meet the criteria for sale accounting treatment
under the accounting guidance for transfers and servicing of financial assets.
The most significant activity that impacts the economic performance of
DERF is the decisions made to manage delinquent receivables. Duke Energy
Carolinas consolidates DERF as it makes those decisions.
DEPR
On a daily basis, Duke Energy Progress Receivables Company, LLC
(DEPR), a bankruptcy remote, special purpose subsidiary of Duke Energy
Progress formed in 2013, buys certain accounts receivable arising from the
sale of electricity and/or related services from Duke Energy Progress. DEPR
is a wholly owned limited liability company with a separate legal existence
from its parent, and its assets are not generally available to creditors of Duke
Energy Progress. DEPR borrows $300 million under a credit facility to buy the
receivables. Borrowing is limited to the amount of qualified receivables sold,
which is expected to be in excess of $300 million. The receivables are used as
collateral for commercial paper issued through third parties. The credit facility
expires in December 2016 and is reflected on the Consolidated Balance Sheets
as Long-term Debt. The secured credit facility was not structured to meet
the criteria for sale accounting treatment under the accounting guidance for
transfers and servicing of financial assets.
The most significant activity that impacts the economic performance of
DEPR is the decisions made to manage delinquent receivables. Duke Energy
Progress consolidates DEPR as it makes those decisions.