Duke Energy 2014 Annual Report Download - page 175

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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 fl ow hedges and the line items on the Consolidated Statements of
Operations and Comprehensive Income 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
Location of Pretax Gains and (Losses) Reclassifi ed
from AOCI into Earnings
Interest rate contracts
Interest expense $(3) $(3) $(3)
A $3 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 and Comprehensive Income or the Consolidated Balance Sheets
where the pretax gains and losses were reported. Amounts not 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 $— $(12) $ (12)
Total Pretax (Losses) Gains Recognized in Earnings $ — $(12)$ (12)
Location of Pretax Gains and (Losses) Recognized
as Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets $(19) $— $ —
PROGRESS ENERGY
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 Designated as Hedging Instruments
Commodity contracts
Current liabilities: other $— $ 1 $— $ 1
Deferred credits and other liabilities: other ———4
Total Derivatives Designated as Hedging Instruments $— $ 1 $— $ 5
Derivatives Not Designated as Hedging Instruments
Commodity contracts
Current assets: other $— $ — $ 3 $ 2
Investments and other assets: other ——21
Current liabilities: other — 288 11 105
Deferred credits and other liabilities: other —80491
Interest rate contracts
Current assets: other 2———
Deferred credits and other liabilities: other —2——
Total Derivatives Not Designated as Hedging
Instruments $ 2 $370 $ 20 $ 199
Total Derivatives $ 2 $371 $ 20 $ 204
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 $ 2 $— $15 $ 5
Gross amounts offset (2) — (13) (4 )
Net amounts recognized on
the Consolidated Balance Sheet $ — $— $2 $1
Derivative Liabilities
December 31, 2014 December 31, 2013
(in millions) Current(c)
Non-
Current(d) Current(c)
Non-
Current(d)
Gross amounts recognized $ 289 $ 82 $ 107 $ 93
Gross amounts offset (17) (8) (17) (10 )
Net amounts subject to master netting 272 74 90 83
Amounts not subject to master netting — — — 4
Net amounts recognized on
the Consolidated Balance Sheet $ 272 $ 74 $90 $87
(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.