Duke Energy 2014 Annual Report Download - page 174

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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 recognized on cash fl ow
hedges and the line items on the Consolidated Statements of Operations where
such gains and losses are included when reclassifi ed from AOCI. Amounts for
interest rate contracts are reclassifi ed to earnings as interest expense over the
term of the related debt.
Years Ended December 31,
(in millions) 2014 2013 2012
Pretax Gains (Losses) Recorded in AOCI
Interest rate contracts $(39) $ 79 $ (23)
Commodity contracts — 1 1
Total Pretax Gains (Losses) Recorded in AOCI $(39) $ 80 $ (22)
Location of Pretax Gains and (Losses) Reclassifi ed
from AOCI into Earnings
Interest rate contracts
Interest expense $ (7) $ (2) $ 2
There was no hedge ineffectiveness during the years ended December 31,
2014, 2013 and 2012, and no gains or losses were excluded from the
assessment of hedge effectiveness during the same periods.
A $10 million pretax gain is expected to be recognized in earnings during
the next 12 months as interest expense.
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 or the Consolidated Balance Sheets where the pretax gains and
losses were reported. Amounts included in Regulatory Assets or Liabilities for
commodity contracts are reclassifi ed to earnings to match recovery through the
fuel clause. Amounts included in Regulatory Assets or Liabilities for interest rate
contracts are reclassifi ed to earnings as interest expense over the term of the
related debt.
Years Ended December 31,
(in millions) 2014 2013 2012
Location of Pretax Gains and (Losses) Recognized
in Earnings
Commodity contracts
Revenue: Regulated electric $— $ 11 $ (23)
Other income and expenses —— (2)
Fuel used in electric generation and purchased
power-regulated (44) (200) (194)
Income (Loss) From Discontinued Operations (729) (57) 40
Interest rate contracts
Interest expense (6) (18) (8)
Total Pretax (Losses) Gains Recognized in Earnings $ (779) $ (264) $ (187)
Location of Pretax Gains and (Losses) Recognized
as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets $ (268) $ 10 $ (2)
Regulatory liabilities 14 15 36
Interest rate contracts
Regulatory assets —55 10
Regulatory liabilities 2——
Total Pretax Gains (Losses) Recognized as Regulatory
Assets or Liabilities $ (252) $80 $44
DUKE ENERGY CAROLINAS
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,
2014 2013
(in millions) Asset Liability Asset Liability
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current liabilities: other $— $ 14 $— $ 1
Deferred credits and other liabilities: other —5—1
Total Derivatives Not Designated as Hedging
Instruments $— $ 19 $— $ 2
Total Derivatives $— $ 19 $— $ 2
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 fi nancial 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.
Derivative Assets
December 31, 2014 December 31, 2013
(in millions) Current(a)
Non-
Current(b) Current(a)
Non-
Current(b)
Gross amounts recognized $ — $ — $— $—
Gross amounts offset ————
Net amount subject to master netting ————
Amounts not subject to master netting ————
Net amounts recognized on
the Consolidated Balance Sheet $— $— $— $—
Derivative Liabilities
December 31, 2014 December 31, 2013
(in millions) Current(c)
Non-
Current(d) Current(c)
Non-
Current(d)
Gross amounts recognized $ 14 $ 5 $— $—
Gross amounts offset ————
Net amount subject to master netting 14 5 ——
Amounts not subject to master netting —— 11
Net amounts recognized on
the Consolidated Balance Sheet $14 $ 5 $1 $1
(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.