Progress Energy 2010 Annual Report Download - page 89

85
Progress Energy Annual Report 2010
13. FAIR VALUE DISCLOSURES
A. Debt and Investments
DEBT
The carrying amount of our long-term debt, including
current maturities, was $12.642 billion and $12.457 billion
at December 31, 2010 and 2009, respectively. The
estimated fair value of this debt, as obtained from
quoted market prices for the same or similar issues, was
$14.0 billion and $13.4 billion at December 31, 2010 and
2009, respectively.
INVESTMENTS
Certain investments in debt and equity securities that
have readily determinable market values are accounted
for as available-for-sale securities at fair value. Our
available-for-sale securities include investments in
stocks, bonds and cash equivalents held in trust funds,
pursuant to NRC requirements, to fund certain costs of
decommissioning the Utilities’ nuclear plants (See Note 4C).
NDT funds are presented on the Consolidated Balance
Sheets at fair value. In addition to the NDT funds, we hold
other debt investments classified as available-for-sale,
which are included in miscellaneous other property
and investments on the Consolidated Balance Sheets at
fair value.
The฀ following฀ table฀ summarizes฀ our฀ available-for-sale฀
securities at December 31:
(in millions) Fair Value Unrealized Losses Unrealized Gains
2010
Common stock equity $1,021 $13 $408
Preferred stock and other equity 28 – 11
Corporate debt 90 – 6
U.S. state and municipal debt 132 4 3
U.S. and foreign government debt 264 2 10
Money market funds and other 52 – 1
Total $1,587 $19 $439
2009
Common stock equity $839 $22 $301
Preferred stock and other equity 16 – 5
Corporate debt 71 1 5
U.S. state and municipal debt 118 2 3
U.S. and foreign government debt 197 1 8
Money market funds and other 161 – –
Total $1,402 $26 $322
The NDT funds and other available-for-sale debt
investments held in certain benefit trusts are managed
by third-party investment managers who have a right to
sell฀ securities฀ without฀ our฀ authorization.฀ Net฀ unrealized฀
gains and losses of the NDT funds that would be
recorded in earnings or other comprehensive income by a
nonregulated entity are recorded as regulatory assets and
liabilities pursuant to ratemaking treatment. Therefore, the
preceding฀tables฀include฀the฀unrealized฀gains฀and฀losses฀
for the NDT funds based on the original cost of the trust
investments.฀All฀of฀the฀unrealized฀ losses฀and฀unrealized฀
gains for 2010 and 2009 relate to the NDT funds. There
were฀no฀material฀unrealized฀losses฀and฀unrealized฀gains฀
for the other available-for-sale debt securities held in
benefit trusts at December 31, 2010 and 2009.
The aggregate fair value of investments that related to
the฀December฀ 31,฀ 2010฀and฀2009฀unrealized฀losses฀was฀
$195 million and $209 million, respectively.
At December 31, 2010, the fair value of our available-for-sale
debt securities by contractual maturity was:
(in millions)
Due in one year or less $27
Due after one through five years 223
Due after five through 10 years 126
Due after 10 years 117
Total $493