Duke Energy 2015 Annual Report Download - page 198

178
PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. •
DUKE ENERGY PROGRESS, LLC. • DUKE ENERGY FLORIDA, LLC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
December 31, 2014
Duke Energy
Duke
Energy
Carolinas
Duke
Energy
Progress
Duke
Energy
Florida
(in millions) DERF DEPR(c) DEFR(c) CRC Renewables Other Total
ASSETS
Current Assets
Restricted receivables of variable interest entities (net of allowance for doubtful accounts) $ 647 $436 $305 $ 547 $ 20 $ 18 $1,973
Other — — — — 68 6 74
Investments and Other Assets
Other — — — — 25 25 50
Property, Plant and Equipment
Property, plant and equipment, cost(a) — — — — 1,855 18 1,873
Accumulated depreciation and amortization — — — — (250) (5) (255)
Regulatory Assets and Deferred Debits
Other — — — — 34 2 36
Total assets $ 647 $436 $305 $ 547 $ 1,752 $ 64 $3,751
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable — — — — 3 — 3
Taxes accrued — — — — 6 — 6
Current maturities of long-term debt — — — — 68 16 84
Other — — — — 16 5 21
Long-Term Debt(b) 400 300 225 325 967 17 2,234
Deferred Credits and Other Liabilities
Deferred income taxes — — — — 283 — 283
Asset retirement obligations — — — — 29 — 29
Other — — — — 34 4 38
Total liabilities $ 400 $300 $225 $ 325 $1,406 $ 42 $2,698
Net assets of consolidated variable interest entities $247 $136 $ 80 $ 222 $ 346 $ 22 $1,053
(a) Restricted as collateral for non-recourse debt of VIEs.
(b) Non-recourse to the general assets of the applicable registrant.
(c) The amount for Progress Energy is equal to the total amount for Duke Energy Progress and Duke Energy Florida.
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), Duke Energy
Progress Receivables, LLC (DEPR) and Duke Energy Florida Receivables, LLC
(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 qualified receivables sold, which is generally expected to
be in excess of the credit facilities. The credit facilities are reflected 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 financial assets.
The most significant 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.