Duke Energy 2015 Annual Report Download - page 216

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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)
Amounts Recognized in the Consolidated Balance Sheets
December 31, 2015
(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) $ 37 $ — $ 31 $ 16 $ 15 $ 2 $ —
Noncurrent post-retirement liability(b) 583 66 323 172 149 25 68
Total accrued post-retirement liability $ 620 $ 66 $ 354 $ 188 $ 164 $ 27 $ 68
Regulatory assets $ 1 $ — $ 1 $ — $ 1 $ — $ 57
Regulatory liabilities $ 288 $ 68 $ 51 $ 25 $ 26 $ 21 $ 83
Accumulated other comprehensive (income) loss
Deferred income tax liability $ 7 $ — $ — $ — $ — $ — $ —
Prior service credit (6) — (1) — — — —
Net actuarial gain (13) — — — — — —
Net amounts recognized in accumulated other comprehensive income $ (12) $ — $ (1) $ — $ — $ — $ —
Amounts to be recognized in net periodic pension expense in the next year
Unrecognized net actuarial loss (gain) $ 6 $ (3) $ 22 $ 13 $ 9 $ (2) $ (2)
Unrecognized prior service credit (142) (14) (103) (68) (35) — (1)
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) $ — $ — $ — $ —
(a) Included in Other within Current Liabilities on the Consolidated Balance Sheets.
(b) Included in Accrued pension and other post-retirement benefit costs on the Consolidated Balance Sheets.
Assumptions Used for Other Post-Retirement Benefits Accounting
The discount rate used to determine the current year other post-retirement benefits obligation and following year’s other post-retirement benefits 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
sufficient cash flow to provide for projected benefit 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 benefit payments
discounted at this rate with the market value of the bonds selected.
The following tables present the assumptions used for other post-retirement benefits accounting.
December 31,
2015 2014 2013
Benefit Obligations
Discount rate 4.40% 4.10% 4.70%
Net Periodic Benefit Cost
Discount rate 4.10% 4.70% 4.10%
Expected long-term rate of return on plan assets 6.50% 6.75% 7.75%
Assumed tax rate 35% 35% 35%