Duke Energy 2014 Annual Report Download - page 218

198
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)
Amounts Recognized in the Consolidated Balance Sheets
December 31, 2014
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Current post-retirement liability(a) $ 35 $ — $ 29 $ 16 $ 14 $ 2 $ —
Non-current post-retirement liability(b) 654 75 350 192 156 29 73
Total accrued post-retirement liability $ 689 $ 75 $ 379 $ 208 $ 170 $ 31 $ 73
Regulatory assets $— $— $— $— $— $— $64
Regulatory liabilities $ 380 $ 76 $ 122 $ 61 $ 61 $ 19 $ 91
Accumulated other comprehensive (income) loss
Deferred income tax liability $5 $— $1 $— $— $— $—
Prior service credit (9)—— ————
Net actuarial gain (5) — (2) — — — —
Net amounts recognized in accumulated other comprehensive income $ (9) $ — $ (1) $ — $ — $ — $ —
Amounts to be recognized in net periodic pension expense in the next year
Unrecognized net actuarial loss (gain) $ 16 $ (1) $ 28 $ 18 $ 10 $ (2) $ —
Unrecognized prior service credit (140) (14) (103) (68) (35) — —
December 31, 2013
(in millions)
Duke
Energy
Duke
Energy
Carolinas
Progress
Energy
Duke
Energy
Progress
Duke
Energy
Florida
Duke
Energy
Ohio
Duke
Energy
Indiana
Current post-retirement liability(a) $ 39 $ — $ 36 $ 17 $ 16 $ 2 $ —
Non-current post-retirement liability(b) 853 122 497 216 237 32 100
Total accrued post-retirement liability $ 892 $ 122 $ 533 $ 233 $ 253 $ 34 $100
Regulatory assets $ (162) $ (34) $ (129) $ (97) $ 4 $ — $ 71
Regulatory liabilities $ 131 $ — $ — $ — $ — $ 21 $ 77
Accumulated other comprehensive (income) loss
Deferred income tax liability $ 4 $ — $ — $ — $ — $ — $ —
Prior service credit (5) — — — — — —
Net actuarial gain (6) — — — — — —
Net amounts recognized in accumulated other comprehensive income $ (7) $ — $ — $ — $ — $ — $ —
(a) Included in Other within Current Liabilities on the Consolidated Balance Sheets.
(b) Included in Accrued pension and other post-retirement benefi t costs on the Consolidated Balance Sheets.
Assumptions Used for Other Post-Retirement Benefi ts Accounting
The discount rate used to determine the current year other post-retirement benefi ts obligation and following year’s other post-retirement benefi ts expense is
based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high quality corporate bonds that generate
suffi cient cash fl ow to provide for projected benefi t payments of the plan. The selected bond portfolio is derived from a universe of non-callable corporate bonds
rated Aa quality or higher. After the bond portfolio is selected, a single interest rate is determined that equates present value of the plan’s projected benefi t payments
discounted at this rate with the market value of the bonds selected.