Duke Energy 2014 Annual Report Download - page 180

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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)
DUKE ENERGY INDIANA
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 $14 $ — $12 $—
Total Derivatives Not Designated as
Hedging Instruments 14 — 12 —
Total Derivatives $14 $ — $12 $—
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 $14 $— $12 $ —
Gross amounts offset —— (1) —
Net amounts recognized on the
Consolidated Balance Sheet $14 $— $11 $ —
Derivative Liabilities
December 31, 2014 December 31, 2013
(in millions) Current(c)
Non-
Current(d) Current(c)
Non-
Current(d)
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 $— $ — $— $—
(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 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
The following table shows the gains and losses during the year recognized
on undesignated derivatives and the line items on 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 $— $1 $—
Location of Pretax Gains and (Losses) Recognized as
Regulatory Assets or Liabilities
Commodity contracts
Regulatory assets $(16) $— $ 2
Regulatory liabilities 916 35
Interest rate contracts
Regulatory assets —34 4
Regulatory liabilities———
Total Pretax Gains (Losses) Recognized as Regulatory Assets
or Liabilities $ (7) $50 $41
CREDIT RISK
Certain derivative contracts contain contingent credit features. These
features may include (i) material adverse change clauses or payment
acceleration clauses that could result in immediate payments or (ii) the posting
of letters of credit or termination of the derivative contract before maturity if
specifi c events occur, such as a credit rating downgrade below investment
grade.