Duke Energy 2014 Annual Report Download - page 203

183
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 gross and net receivables sold.
Duke Energy Ohio Duke Energy Indiana
(in millions) 2014 2013 2014 2013
Receivables sold $ 273 $ 290 $ 310 $ 340
Less: Retained interests 91 114 113 143
Net receivables sold $ 182 $176 $ 197 $197
The following table shows sales and cash fl ows related to receivables sold.
Duke Energy Ohio Duke Energy Indiana
Years Ended December 31, Years Ended December 31,
(in millions) 2014 2013 2012 2014 2013 2012
Sales
Receivables sold $2,246 $2,251 $2,154 $2,913 $2,985 $ 2,773
Loss recognized on sale 11 12 13 11 11 12
Cash Flows
Cash proceeds from receivables sold 2,261 2,220 2,172 2,932 2,944 2,784
Collection fees received 111111
Return received on retained interests 455667
Cash fl ows from the sales of receivables are refl ected within Operating
Activities on Duke Energy Ohio’s and Duke Energy Indiana’s Consolidated
Statements of Cash Flows.
Collection fees received in connection with servicing transferred accounts
receivable are included in Operation, maintenance and other on Duke Energy
Ohio’s and Duke Energy Indiana’s Consolidated Statements of Operations and
Comprehensive Income. The loss recognized on sales of receivables is calculated
monthly by multiplying receivables sold during the month by the required discount.
The required discount is derived monthly utilizing a three-year weighted average
formula that considers charge-off history, late charge history and turnover history
on the sold receivables, as well as a component for the time value of money. The
discount rate, or component for the time value of money, is the prior month-end
LIBOR plus a fi xed rate of 1.00 percent.
18. COMMON STOCK
Basic Earnings Per Share (EPS) is computed by dividing net income
attributable to Duke Energy common shareholders, adjusted for distributed and
undistributed earnings allocated to participating securities, by the weighted-
average number of common shares outstanding during the period. Diluted
EPS is computed by dividing net income attributable to Duke Energy common
shareholders, as adjusted for distributed and undistributed earnings allocated
to participating securities, by the diluted weighted-average number of common
shares outstanding during the period. Diluted EPS refl ects the potential dilution
that could occur if securities or other agreements to issue common stock, such
as stock options, phantom shares and stock-based performance unit awards
were exercised or settled. Duke Energy’s participating securities are restricted
stock units that are entitled to dividends declared on Duke Energy common
shares during the restricted stock units’ vesting period.
On July 2, 2012, just prior to the close of the merger with Progress Energy,
Duke Energy executed a one-for-three reverse stock split. All earnings per share
amounts included in this 10-K are presented as if the one-for-three reverse
stock split had been effective January 1, 2012. The following table presents
Duke Energy’s basic and diluted EPS calculations and reconciles the weighted-
average number of common shares outstanding to the diluted weighted-average
number of common shares outstanding.