Duke Energy 2014 Annual Report Download - page 177

157
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 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 $ — $ — $3 $ 3
Gross amounts offset — — (3) (3 )
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 $ 109 $ 23 $41 $ 30
Gross amounts offset — — (3) (3 )
Net amounts recognized on
the Consolidated Balance Sheet $109 $ 23 $38 $ 27
(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.
The following table shows the gains and losses during the year
recognized on cash flow hedges and the line items on the Consolidated
Statements of Operations and Comprehensive Income or Consolidated
Balance Sheets in which such gains and losses are included when
reclassified from AOCI. Amounts for interest rate contracts are reclassified
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 $— $ — $ (7)
Location of Pretax Gains and (Losses) Reclassifi ed
from AOCI into Earnings
Interest rate contracts
Interest expense $— $ — $ (5)
Location of Pretax Gains and (Losses) Reclassifi ed
from AOCI to Regulatory Assets or Liabilities(a)
Interest rate contracts
Regulatory assets $— $ — $(117)
(a) Effective with the merger, Duke Energy Progress no longer designates interest rate derivatives for
regulated operations as cash fl ow hedges. As a result, the pretax losses on derivatives as of the date of
the merger were reclassifi ed from AOCI to Regulatory assets.
There was no hedge ineffectiveness during the years ended December 31,
2014, 2013 and 2012, and no gains or losses have been excluded from the
assessment of hedge effectiveness during the same periods.
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 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
Operating revenues $— $ 11 $ (11 )
Fuel used in electric generation and purchased power (15) (71) (115)
Interest rate contracts
Interest expense — (13) (6)
Total Pretax (Losses) Gains Recognized in Earnings $(15) $ (73) $(132)
Location of Pretax Gains and (Losses) Recognized as
Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets $(82) $ (6) $ (55)
Interest rate contracts
Regulatory assets —13 6
Total Pretax Gains (Losses) Recognized as Regulatory
Assets or Liabilities $(82) $ 7 $ (49)