Duke Energy 2014 Annual Report Download - page 178

158
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)
DUKE ENERGY FLORIDA
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 assets: other $— $— $3 $ 2
Current liabilities: other — 180 964
Deferred credits and other liabilities: other —57263
Interest rate contracts
Current assets: other 2———
Deferred credits and other liabilities: other —2——
Total Derivatives Not Designated as Hedging
Instruments $ 2 $239 $ 14 $ 129
Total Derivatives $ 2 $239 $ 14 $ 129
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 $— $12 $ 2
Gross amounts offset (2) — (10) (2)
Net amounts recognized on the
Consolidated Balance Sheet $— $— $2 $—
Derivative Liabilities
December 31, 2014 December 31, 2013
(in millions) Current(c)
Non-
Current(d) Current(c)
Non-
Current(d)
Gross amounts recognized $ 180 $ 59 $66 $63
Gross amounts offset (17) (8) (15) (7)
Net amounts recognized on the
Consolidated Balance Sheet $ 163 $ 51 $51 $56
(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 fl ow 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 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
Commodity contracts $— $1 $1
Interest rate contracts —— (2)
Total Pretax Gains (Losses) Recorded in AOCI $—$ 1 $ (1)
Location of Pretax Gains and (Losses) Reclassifi ed
from AOCI into Earnings
Interest rate contracts
Interest expense $ (2) $ — $ (2)
Location of Pretax Gains and (Losses) Reclassifi ed
from AOCI to Regulatory Assets(a)
Interest rate contracts
Regulatory assets $—$ — $ (42)
(a) Effective with the merger, Duke Energy Florida 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.
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
Fuel used in electric generation and purchased power $ (29) $(129) $(339)
Interest rate contracts
Interest expense (4) (5) (2)
Total Pretax (Losses) Gains Recognized in Earnings $ (33) $(134) $(341)
Location of Pretax Gains and (Losses) Recognized as
Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets $(151) $ 16 $(116)
Interest rate contracts
Regulatory assets 25—
Regulatory liabilities 2——
Total Pretax Gains (Losses) Recognized as Regulatory Assets
or Liabilities $(147) $ 21 $(116)