Duke Energy 2014 Annual Report Download - page 200

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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)
December 31, 2013
Duke Energy
Duke
Energy
Carolinas
Duke
Energy
Progress
(in millions) DERF DEPR(c) CRC Renewables Other Total
ASSETS
Current Assets
Restricted receivables of variable interest entities (net of allowance for doubtful accounts) $ 673 $ 416 $ 595 $ 18 $ 17 $1,719
Other — — — 89 12 101
Investments and Other Assets
Other ——— 29 51 80
Property, Plant and Equipment
Property, plant and equipment, cost(a) — — — 1,662 18 1,680
Accumulated depreciation and amortization — — — (170) (5) (175)
Regulatory Assets and Deferred Debits
Other 11— 34—36
Total assets $ 674 $ 417 $ 595 $ 1,662 $ 93 $3,441
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable ——— 2 — 2
Taxes accrued ——— 10 — 10
Current maturities of long-term debt — — — 66 14 80
Other ——— 17 10 27
Long-Term Debt(b) 400 300 325 907 34 1,966
Deferred Credits and Other Liabilities —
Deferred income taxes — — — 290 — 290
Asset retirement obligations — — — 26 — 26
Other 1—— 17 13 31
Total liabilities $ 401 $ 300 $ 325 $ 1,335 $ 71 $ 2,432
Net assets of consolidated variable interest entities $ 273 $ 117 $ 270 $ 327 $ 22 $1,009
(a) Restricted as collateral for non-recourse debt of VIEs.
(b) Non-recourse to the general assets of the applicable registrant.
(c) The amount Progress Energy is equal to the amount for DEPR.
The obligations of these VIEs are non-recourse to Duke Energy, Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida. These entities have no
requirement to provide liquidity to, purchase assets of, or guarantee performance of these VIEs unless noted in the following paragraphs.
DERF / DEPR / DEFR
Duke Energy Receivables Finance Company, LLC (DERF), DEPR, and DEFR
are bankruptcy remote, special purpose subsidiaries of Duke Energy Carolinas,
Duke Energy Progress, and Duke Energy Florida, respectively. On a daily basis,
DERF, DEPR, and DEFR buy certain accounts receivable arising from the sale of
electricity and/or related services from their parent companies. DERF, DEPR, and
DEFR are wholly owned limited liability companies with separate legal existence
from their parents, and their assets are not generally available to creditors of
their parent companies. DERF, DEPR, and DEFR borrow amounts under credit
facilities to buy the receivables. Borrowing availability is limited to the amount
of qualifi ed receivables sold, which is generally expected to be in excess of the
credit facilities. The credit facilities are refl ected on the Consolidated Balance
Sheets as Long-Term Debt. The secured credit facilities were not structured to
meet the criteria for sale accounting treatment under the accounting guidance
for transfers and servicing of fi nancial assets.
The most signifi cant activity that impacts the economic performance
of DERF, DEPR, and DEFR are the decisions made to manage delinquent
receivables. Duke Energy Carolinas, Duke Energy Progress, and Duke Energy
Florida consolidate DERF, DEPR, and DEFR, respectively, as they make those
decisions.