Document and Entity Information
Document and Entity Information | ||
3 Months Ended
Mar. 31, 2010 | May. 03, 2010
| |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | 2010-03-31 | |
Document Fiscal Year Focus | 2,010 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | DUK | |
Entity Registrant Name | Duke Energy CORP | |
Entity Central Index Key | 0001326160 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,313,134,663 | |
DUKE ENERGY OHIO, INC. | ||
Entity Registrant Name | Duke Energy Ohio, Inc. | |
Entity Central Index Key | 0000020290 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
DUKE ENERGY CAROLINAS, LLC | ||
Entity Registrant Name | Duke Energy Carolinas, LLC | |
Entity Central Index Key | 0000030371 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
DUKE ENERGY INDIANA, INC. | ||
Entity Registrant Name | Duke Energy Indiana, Inc. | |
Entity Central Index Key | 0000081020 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | ||
In Millions, except Per Share data | 3 Months Ended
Mar. 31, 2010 DUKE ENERGY CORP | 3 Months Ended
Mar. 31, 2009 DUKE ENERGY CORP |
DUKE ENERGY CORP | ||
Operating Revenues | ||
Operating Revenues-Regulated Electric | $2,625 | $2,545 |
Non-regulated electric and other | 698 | 467 |
Regulated natural gas | 271 | 300 |
Total operating revenues | 3,594 | 3,312 |
Operating Expenses | ||
Fuel used in electric generation and purchased power - regulated | 819 | 849 |
Fuel used in electric generation and purchased power - non-regulated | 278 | 148 |
Cost of natural gas and coal sold | 190 | 222 |
Operation, maintenance and other | 899 | 811 |
Depreciation and amortization | 456 | 414 |
Property and other taxes | 193 | 193 |
Total operating expenses | 2,835 | 2,637 |
Gains (Losses) on Sales of Other Assets and Other, net | 2 | 6 |
Operating Income | 761 | 681 |
Other Income and Expenses | ||
Equity in earnings of unconsolidated affiliates | 29 | 6 |
Other income and expenses, net | 91 | 22 |
Total other income and expenses | 120 | 28 |
Interest Expense | 210 | 184 |
Income From Continuing Operations Before Income Taxes | 671 | 525 |
Income Tax Expense | 226 | 179 |
Income From Continuing Operations | 445 | 346 |
Income From Discontinued Operations, net of tax | 3 | |
Net Income | 445 | 349 |
Less: Net Income Attributable to Noncontrolling Interests | 5 | |
Net Income Attributable to Duke Energy Corporation | 445 | 344 |
Income from continuing operations attributable to Duke Energy Corporation common shareholders | ||
Basic | 0.34 | 0.27 |
Diluted | 0.34 | 0.27 |
Income from discontinued operations attributable to Duke Energy Corporation common shareholders | ||
Basic | ||
Diluted | ||
Net income attributable to Duke Energy Corporation common shareholders | ||
Basic | 0.34 | 0.27 |
Diluted | 0.34 | 0.27 |
Dividends per share | 0.24 | 0.23 |
Weighted-average shares outstanding | ||
Basic | 1,310 | 1,282 |
Diluted | 1,311 | 1,283 |
DUKE ENERGY OHIO, INC. | ||
Operating Revenues | ||
Operating Revenues-Regulated Electric | 482 | 590 |
Non-regulated electric and other | 224 | 116 |
Regulated natural gas | 271 | 300 |
Total operating revenues | 977 | 1,006 |
Operating Expenses | ||
Fuel used in electric generation and purchased power - regulated | 141 | 208 |
Fuel used in electric generation and purchased power - non-regulated | 84 | 59 |
Cost of natural gas and coal sold | 158 | 193 |
Operation, maintenance and other | 186 | 202 |
Depreciation and amortization | 110 | 103 |
Property and other taxes | 75 | 78 |
Total operating expenses | 754 | 843 |
Gains (Losses) on Sales of Other Assets and Other, net | (1) | 4 |
Operating Income | 222 | 167 |
Other Income and Expenses | ||
Other income and expenses, net | 7 | |
Interest Expense | 30 | 35 |
Income Before Income Taxes | 199 | 132 |
Income Tax Expense | 69 | 47 |
Net Income | 130 | 85 |
DUKE ENERGY CAROLINAS, LLC | ||
Operating Revenues | ||
Operating Revenues-Regulated Electric | 1,545 | 1,353 |
Operating Expenses | ||
Fuel used in electric generation and purchased power - regulated | 454 | 404 |
Operation, maintenance and other | 460 | 377 |
Depreciation and amortization | 193 | 178 |
Property and other taxes | 93 | 88 |
Total operating expenses | 1,200 | 1,047 |
Gains (Losses) on Sales of Other Assets and Other, net | 2 | |
Operating Income | 347 | 306 |
Other Income and Expenses | ||
Other income and expenses, net | 50 | 26 |
Interest Expense | 90 | 85 |
Income Before Income Taxes | 307 | 247 |
Income Tax Expense | 115 | 85 |
Net Income | 192 | 162 |
DUKE ENERGY INDIANA, INC. | ||
Operating Revenues | ||
Operating Revenues-Regulated Electric | 610 | 613 |
Operating Expenses | ||
Fuel used in electric generation and purchased power - regulated | 225 | 237 |
Operation, maintenance and other | 143 | 159 |
Depreciation and amortization | 101 | 92 |
Property and other taxes | 20 | 23 |
Total operating expenses | 489 | 511 |
Operating Income | 121 | 102 |
Other Income and Expenses | ||
Other income and expenses, net | 18 | 7 |
Interest Expense | 33 | 34 |
Income Before Income Taxes | 106 | 75 |
Income Tax Expense | 36 | 27 |
Net Income | $70 | $48 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS ( DUKE ENERGY CORP, USD $) | ||
In Millions | 3 Months Ended
Mar. 31, 2010 | 12 Months Ended
Dec. 31, 2009 |
DUKE ENERGY CORP | ||
Current Assets | ||
Cash and cash equivalents | $1,080 | $1,542 |
Receivables (net of allowance for doubtful accounts) | 724 | 845 |
Restricted receivables of variable interest entities (net of allowance for doubtful accounts) | 1,200 | 896 |
Inventory | 1,337 | 1,515 |
Other | 1,150 | 968 |
Total current assets | 5,491 | 5,766 |
Investments and Other Assets | ||
Investments in equity method unconsolidated affiliates | 363 | 436 |
Nuclear decommissioning trust funds | 1,846 | 1,765 |
Goodwill | 4,349 | 4,350 |
Intangibles, net | 571 | 593 |
Notes receivable | 127 | 130 |
Other | 2,661 | 2,533 |
Total investments and other assets | 9,917 | 9,807 |
Property, Plant and Equipment | ||
Cost | 56,493 | 55,362 |
Less accumulated depreciation and amortization | 17,787 | 17,412 |
Net property, plant and equipment | 38,706 | 37,950 |
Regulatory Assets and Deferred Debits | ||
Deferred debt expense | 254 | 258 |
Regulatory assets related to income taxes | 618 | 557 |
Other | 2,647 | 2,702 |
Total regulatory assets and deferred debits | 3,519 | 3,517 |
Total Assets | 57,633 | 57,040 |
Current Liabilities | ||
Accounts payable | 1,299 | 1,390 |
Notes payable | 12 | |
Non-recourse notes payable of variable interest entities | 350 | |
Taxes accrued | 383 | 428 |
Interest accrued | 251 | 222 |
Current maturities of long-term debt | 586 | 902 |
Other | 973 | 1,146 |
Total current liabilities | 3,854 | 4,088 |
Long-term Debt | 15,900 | 15,732 |
Non-recourse long-term debt of variable interest entities | 379 | 381 |
Deferred Credits and Other Liabilities | ||
Deferred income taxes | 6,040 | 5,615 |
Investment tax credits | 337 | 310 |
Asset retirement obligations | 3,238 | 3,185 |
Other | 5,837 | 5,843 |
Total deferred credits and other liabilities | 15,452 | 14,953 |
Commitments and Contingencies | ||
Common Stockholder's Equity | ||
Common stock | 1 | 1 |
Additional paid-in capital | 20,697 | 20,661 |
Retained earnings (deficit) | 1,589 | 1,460 |
Accumulated other comprehensive income (loss) | (373) | (372) |
Total common stockholder's equity | 21,914 | 21,750 |
Noncontrolling interests | 134 | 136 |
Total equity | 22,048 | 21,886 |
Total Liabilities and Common Stockholder's Equity | 57,633 | 57,040 |
DUKE ENERGY OHIO, INC. | ||
Current Assets | ||
Cash and cash equivalents | 120 | 127 |
Receivables (net of allowance for doubtful accounts) | 670 | 563 |
Inventory | 219 | 268 |
Other | 181 | 176 |
Total current assets | 1,190 | 1,134 |
Investments and Other Assets | ||
Goodwill | 1,598 | 1,598 |
Intangibles, net | 319 | 332 |
Other | 109 | 86 |
Total investments and other assets | 2,026 | 2,016 |
Property, Plant and Equipment | ||
Cost | 10,307 | 10,243 |
Less accumulated depreciation and amortization | 2,453 | 2,379 |
Net property, plant and equipment | 7,854 | 7,864 |
Regulatory Assets and Deferred Debits | ||
Deferred debt expense | 24 | 24 |
Regulatory assets related to income taxes | 84 | 83 |
Other | 372 | 390 |
Total regulatory assets and deferred debits | 480 | 497 |
Total Assets | 11,550 | 11,511 |
Current Liabilities | ||
Accounts payable | 353 | 512 |
Notes payable | 12 | |
Taxes accrued | 201 | 152 |
Interest accrued | 34 | 26 |
Current maturities of long-term debt | 7 | 19 |
Other | 125 | 128 |
Total current liabilities | 732 | 837 |
Long-term Debt | 2,576 | 2,573 |
Deferred Credits and Other Liabilities | ||
Deferred income taxes | 1,580 | 1,577 |
Investment tax credits | 11 | 11 |
Accrued pension and other post-retirement benefit costs | 251 | 249 |
Asset retirement obligations | 37 | 36 |
Other | 336 | 330 |
Total deferred credits and other liabilities | 2,215 | 2,203 |
Commitments and Contingencies | ||
Common Stockholder's Equity | ||
Common stock | 762 | 762 |
Additional paid-in capital | 5,570 | 5,570 |
Retained earnings (deficit) | (275) | (405) |
Accumulated other comprehensive income (loss) | (30) | (29) |
Total common stockholder's equity | 6,027 | 5,898 |
Total Liabilities and Common Stockholder's Equity | 11,550 | 11,511 |
DUKE ENERGY CAROLINAS, LLC | ||
Current Assets | ||
Cash and cash equivalents | 104 | 394 |
Receivables (net of allowance for doubtful accounts) | 532 | 839 |
Restricted receivables of variable interest entities (net of allowance for doubtful accounts) | 574 | 556 |
Inventory | 762 | 846 |
Other | 353 | 313 |
Total current assets | 2,325 | 2,948 |
Investments and Other Assets | ||
Nuclear decommissioning trust funds | 1,846 | 1,765 |
Other | 1,109 | 1,130 |
Total investments and other assets | 2,955 | 2,895 |
Property, Plant and Equipment | ||
Cost | 30,500 | 29,917 |
Less accumulated depreciation and amortization | 10,870 | 10,692 |
Net property, plant and equipment | 19,630 | 19,225 |
Regulatory Assets and Deferred Debits | ||
Deferred debt expense | 175 | 179 |
Regulatory assets related to income taxes | 534 | 471 |
Other | 943 | 972 |
Total regulatory assets and deferred debits | 1,652 | 1,622 |
Total Assets | 26,562 | 26,690 |
Current Liabilities | ||
Accounts payable | 699 | 703 |
Taxes accrued | 107 | 137 |
Interest accrued | 144 | 105 |
Current maturities of long-term debt | 208 | 509 |
Other | 428 | 478 |
Total current liabilities | 1,586 | 1,932 |
Long-term Debt | 6,856 | 6,857 |
Non-recourse long-term debt of variable interest entities | 300 | 300 |
Deferred Credits and Other Liabilities | ||
Deferred income taxes | 3,253 | 3,087 |
Investment tax credits | 200 | 178 |
Asset retirement obligations | 3,150 | 3,098 |
Other | 2,954 | 2,967 |
Total deferred credits and other liabilities | 9,557 | 9,330 |
Commitments and Contingencies | ||
Member's Equity | ||
Member's Equity | 8,296 | 8,304 |
Accumulated other comprehensive income (loss) | (33) | (33) |
Total member's equity | 8,263 | 8,271 |
Total Liabilities and Member's Equity | 26,562 | 26,690 |
DUKE ENERGY INDIANA, INC. | ||
Current Assets | ||
Cash and cash equivalents | 35 | 20 |
Receivables (net of allowance for doubtful accounts) | 304 | 245 |
Inventory | 280 | 312 |
Other | 95 | 31 |
Total current assets | 714 | 608 |
Investments and Other Assets | ||
Intangibles, net | 88 | 98 |
Other | 140 | 134 |
Total investments and other assets | 228 | 232 |
Property, Plant and Equipment | ||
Cost | 10,383 | 10,055 |
Less accumulated depreciation and amortization | 3,206 | 3,129 |
Net property, plant and equipment | 7,177 | 6,926 |
Regulatory Assets and Deferred Debits | ||
Deferred debt expense | 43 | 44 |
Regulatory assets related to income taxes | 77 | 4 |
Other | 587 | 596 |
Total regulatory assets and deferred debits | 707 | 644 |
Total Assets | 8,826 | 8,410 |
Current Liabilities | ||
Accounts payable | 290 | 354 |
Taxes accrued | 96 | 47 |
Interest accrued | 42 | 40 |
Current maturities of long-term debt | 6 | 4 |
Other | 84 | 123 |
Total current liabilities | 518 | 568 |
Long-term Debt | 3,084 | 3,086 |
Deferred Credits and Other Liabilities | ||
Deferred income taxes | 845 | 679 |
Investment tax credits | 126 | 120 |
Accrued pension and other post-retirement benefit costs | 312 | 314 |
Asset retirement obligations | 43 | 42 |
Other | 670 | 667 |
Total deferred credits and other liabilities | 1,996 | 1,822 |
Commitments and Contingencies | ||
Common Stockholder's Equity | ||
Common stock | 1 | 1 |
Additional paid-in capital | 1,233 | 1,008 |
Retained earnings (deficit) | 1,985 | 1,915 |
Accumulated other comprehensive income (loss) | 9 | 10 |
Total common stockholder's equity | 3,228 | 2,934 |
Total Liabilities and Common Stockholder's Equity | $8,826 | $8,410 |
1_CONDENSED CONSOLIDATED BALANC
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | ||
In Millions, except Share data | Mar. 31, 2010
DUKE ENERGY CORP | Dec. 31, 2009
DUKE ENERGY CORP |
DUKE ENERGY CORP | ||
Receivables, allowance for doubtful accounts | $45 | $42 |
Restricted receivables of variable interest entities, allowance for doubtful accounts | 32 | 6 |
Common Stock, par value | 0.001 | 0.001 |
Common Stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common Stock, shares outstanding | 1,312,000,000 | 1,309,000,000 |
DUKE ENERGY OHIO, INC. | ||
Receivables, allowance for doubtful accounts | 18 | 17 |
Common Stock, par value | 8.5 | 8.5 |
Common Stock, shares authorized | 120,000,000 | 120,000,000 |
Common Stock, shares outstanding | 89,663,086 | 89,663,086 |
DUKE ENERGY CAROLINAS, LLC | ||
Receivables, allowance for doubtful accounts | 2 | 2 |
Restricted receivables of variable interest entities, allowance for doubtful accounts | 6 | 6 |
DUKE ENERGY INDIANA, INC. | ||
Receivables, allowance for doubtful accounts | $1 | $1 |
Common Stock, no par | $0 | $0 |
Common Stock, par value | 0.01 | 0.01 |
Common Stock, shares authorized | 60,000,000 | 60,000,000 |
Common Stock, shares outstanding | 53,913,701 | 53,913,701 |
2_CONDENSED CONSOLIDATED STATEM
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | ||
In Millions | 3 Months Ended
Mar. 31, 2010 DUKE ENERGY CORP | 3 Months Ended
Mar. 31, 2009 DUKE ENERGY CORP |
DUKE ENERGY CORP | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $445 | $349 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 506 | 463 |
Equity component of AFUDC | (55) | (28) |
Severance expense | 68 | |
(Gains) losses on sales of other assets and other, net | (1) | (11) |
Deferred income taxes | 162 | 165 |
Equity in earnings of unconsolidated affiliates | (29) | (6) |
Contributions to qualified pension plans | (500) | |
(Increase) decrease in | ||
Net realized and unrealized mark-to-market and hedging transactions | 3 | (23) |
Receivables | 94 | 222 |
Inventory | 180 | (110) |
Other current assets | 14 | 24 |
Increase (decrease) in | ||
Accounts payable | (114) | (244) |
Taxes accrued | (52) | (26) |
Other current liabilities | (179) | (176) |
Other assets | 81 | 73 |
Other liabilities | (2) | 18 |
Net cash provided by (used in) operating activities | 1,121 | 190 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (1,179) | (845) |
Investment expenditures | (20) | (61) |
Purchases of available-for-sale securities | (591) | (930) |
Proceeds from sales and maturities of available-for-sale securities | 550 | 917 |
Net proceeds from the sales of other assets, and sales of and collections on notes receivable | 3 | 38 |
Purchases of emission allowances | (5) | (25) |
Sales of emission allowances | 7 | 15 |
Change in restricted cash | 1 | 3 |
Other | (2) | (6) |
Net cash used in investing activities | (1,236) | (894) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuance of long-term debt | 451 | 1,916 |
Issuance of common stock related to employee benefit plans | 31 | 171 |
Payments for the redemption of long-term debt | (609) | (603) |
Notes payable and commercial paper | 93 | (263) |
Dividends paid | (316) | (296) |
Other | 3 | (6) |
Net cash (used in) provided by financing activities | (347) | 919 |
Net (decrease) increase in cash and cash equivalents | (462) | 215 |
Cash and cash equivalents at beginning of period | 1,542 | 986 |
Cash and cash equivalents at end of period | 1,080 | 1,201 |
Significant non-cash transactions: | ||
Debt associated with the consolidation of Cinergy Receivables | 257 | |
Accrued capital expenditures | 473 | 320 |
DUKE ENERGY OHIO, INC. | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 130 | 85 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 110 | 104 |
Severance expense | 10 | |
(Gains) losses on sales of other assets and other, net | 1 | (4) |
Deferred income taxes | 3 | 26 |
Contributions to qualified pension plans | (143) | |
Accrued pension and other post-retirement benefit costs | 4 | 3 |
(Increase) decrease in | ||
Net realized and unrealized mark-to-market and hedging transactions | (50) | (16) |
Receivables | 72 | 13 |
Inventory | 49 | (5) |
Other current assets | 22 | 33 |
Increase (decrease) in | ||
Accounts payable | (187) | (148) |
Taxes accrued | 45 | (6) |
Other current liabilities | (6) | (19) |
Other assets | 58 | 28 |
Other liabilities | 2 | 1 |
Net cash provided by (used in) operating activities | 263 | (48) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (88) | (91) |
Purchases of emission allowances | (4) | (7) |
Sales of emission allowances | 3 | 5 |
Notes due from affiliate, net | (179) | (243) |
Net cash used in investing activities | (268) | (336) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuance of long-term debt | 450 | |
Payments for the redemption of long-term debt | (2) | (2) |
Notes payable to affiliate, net | (63) | |
Other | (2) | |
Net cash (used in) provided by financing activities | (2) | 383 |
Net (decrease) increase in cash and cash equivalents | (7) | (1) |
Cash and cash equivalents at beginning of period | 127 | 27 |
Cash and cash equivalents at end of period | 120 | 26 |
Significant non-cash transactions: | ||
Accrued capital expenditures | 91 | 55 |
DUKE ENERGY CAROLINAS, LLC | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 192 | 162 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 240 | 224 |
Equity component of AFUDC | (40) | (26) |
Severance expense | 41 | |
(Gains) losses on sales of other assets and other, net | (2) | (6) |
Deferred income taxes | 92 | 121 |
Contributions to qualified pension plans | (74) | |
(Increase) decrease in | ||
Net realized and unrealized mark-to-market and hedging transactions | (1) | 2 |
Receivables | 97 | 187 |
Inventory | 86 | (81) |
Other current assets | 2 | (80) |
Increase (decrease) in | ||
Accounts payable | 18 | (23) |
Taxes accrued | (30) | (44) |
Other current liabilities | (58) | (37) |
Other assets | 7 | 10 |
Other liabilities | (35) | 1 |
Net cash provided by (used in) operating activities | 609 | 336 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (599) | (479) |
Purchases of available-for-sale securities | (304) | (686) |
Proceeds from sales and maturities of available-for-sale securities | 294 | 678 |
Sales of emission allowances | 2 | 6 |
Change in restricted cash | 5 | |
Notes due from affiliate, net | 212 | 46 |
Other | (3) | |
Net cash used in investing activities | (398) | (430) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Payments for the redemption of long-term debt | (301) | (201) |
Dividend to parent | (200) | |
Net cash (used in) provided by financing activities | (501) | (201) |
Net (decrease) increase in cash and cash equivalents | (290) | (295) |
Cash and cash equivalents at beginning of period | 394 | 323 |
Cash and cash equivalents at end of period | 104 | 28 |
Significant non-cash transactions: | ||
Accrued capital expenditures | 172 | 183 |
DUKE ENERGY INDIANA, INC. | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 70 | 48 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 102 | 93 |
Equity component of AFUDC | (13) | (3) |
Severance expense | 10 | |
Deferred income taxes and investment tax credit amortization | (7) | |
Contributions to qualified pension plans | (100) | |
Accrued pension and other post-retirement benefit costs | 5 | 6 |
(Increase) decrease in | ||
Receivables | 26 | 42 |
Inventory | 32 | (28) |
Other current assets | 7 | 29 |
Increase (decrease) in | ||
Accounts payable | (77) | (97) |
Taxes accrued | 45 | 32 |
Other current liabilities | (14) | (21) |
Other assets | 9 | |
Other liabilities | (9) | (6) |
Net cash provided by (used in) operating activities | 184 | (3) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capital expenditures | (310) | (185) |
Purchases of available-for-sale securities | (4) | (11) |
Proceeds from sales and maturities of available-for-sale securities | 4 | 11 |
Purchases of emission allowances | (1) | (19) |
Sales of emission allowances | 2 | 3 |
Change in restricted cash | (1) | |
Notes due from affiliate, net | (84) | (264) |
Other | 1 | |
Net cash used in investing activities | (393) | (465) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuance of long-term debt | 721 | |
Payments for the redemption of long-term debt | (1) | (370) |
Capital contribution from parent | 225 | |
Other | (6) | |
Net cash (used in) provided by financing activities | 224 | 345 |
Net (decrease) increase in cash and cash equivalents | 15 | (123) |
Cash and cash equivalents at beginning of period | 20 | 144 |
Cash and cash equivalents at end of period | 35 | 21 |
Significant non-cash transactions: | ||
Accrued capital expenditures | $162 | $73 |
3_CONDENSED CONSOLIDATED STATEM
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND COMPREHENSIVE INCOME (USD $) | ||||||||||||||||||||||||||||||||||||||
In Millions | DUKE ENERGY CORP
| DUKE ENERGY CORP
Common Stock | DUKE ENERGY CORP
Additional Paid-in Capital | DUKE ENERGY CORP
Retained Earnings | DUKE ENERGY CORP
Foreign Currency Adjustments | DUKE ENERGY CORP
Net Gains (Losses) on Cash Flow Hedges | DUKE ENERGY CORP
Other | DUKE ENERGY CORP
Pension and OPEB Related Adjustments to AOCI | DUKE ENERGY CORP
Common Stockholders' Equity | DUKE ENERGY CORP
Noncontrolling Interests | DUKE ENERGY OHIO, INC.
| DUKE ENERGY OHIO, INC.
Common Stock | DUKE ENERGY OHIO, INC.
Additional Paid-in Capital | DUKE ENERGY OHIO, INC.
Retained Earnings | DUKE ENERGY OHIO, INC.
Net Gains (Losses) on Cash Flow Hedges | DUKE ENERGY OHIO, INC.
Pension and OPEB Related Adjustments to AOCI | DUKE ENERGY CAROLINAS, LLC
| DUKE ENERGY CAROLINAS, LLC
Net Gains (Losses) on Cash Flow Hedges | DUKE ENERGY CAROLINAS, LLC
Other | DUKE ENERGY CAROLINAS, LLC
Member's Equity [Member] | DUKE ENERGY INDIANA, INC.
| DUKE ENERGY INDIANA, INC.
Common Stock | DUKE ENERGY INDIANA, INC.
Additional Paid-in Capital | DUKE ENERGY INDIANA, INC.
Retained Earnings | DUKE ENERGY INDIANA, INC.
Net Gains (Losses) on Cash Flow Hedges | |||||||||||||
Beginning Balance at Dec. 31, 2008 | $21,151 | $1 | $20,106 | $1,607 | ($306) | ($41) | ($28) | ($351) | $20,988 | $163 | ||||||||||||||||||||||||||||
Beginning Balance at Dec. 31, 2008 | 6,670 | 762 | 5,570 | 381 | (15) | (28) | 2,594 | 1 | 868 | 1,714 | 11 | |||||||||||||||||||||||||||
Beginning Balance at Dec. 31, 2008 | 7,316 | (27) | (6) | 7,349 | ||||||||||||||||||||||||||||||||||
Beginning Balance (in shares) at Dec. 31, 2008 | 1,272 | |||||||||||||||||||||||||||||||||||||
Net income | 349 | 344 | 344 | 5 | 85 | 85 | 162 | 162 | 48 | 48 | ||||||||||||||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (6) | (6) | (6) | |||||||||||||||||||||||||||||||||||
Pension and OPEB related adjustments to AOCI | 1 | 1 | 1 | |||||||||||||||||||||||||||||||||||
Reclassification into earnings from cash flow hedges | 10 | [1] | 10 | [1] | 10 | [1] | 9 | [2] | 9 | [2] | 1 | [3] | 1 | [3] | ||||||||||||||||||||||||
Unrealized gain (loss) on investments in auction rate securities | (6) | [4] | (6) | [4] | (6) | [4] | (1) | [5] | (1) | [5] | ||||||||||||||||||||||||||||
Unrealized loss on investments in available-for-sale securities | (3) | [5] | (3) | [5] | (3) | [5] | ||||||||||||||||||||||||||||||||
Total comprehensive income | 345 | 340 | 5 | 94 | 162 | |||||||||||||||||||||||||||||||||
Common stock issuances, including dividend reinvestment and employee benefits (in shares) | 13 | |||||||||||||||||||||||||||||||||||||
Common stock issuances, including dividend reinvestment and employee benefits | 182 | 182 | 182 | |||||||||||||||||||||||||||||||||||
Common stock dividends | (296) | (296) | (296) | |||||||||||||||||||||||||||||||||||
Ending Balance (in shares) at Mar. 31, 2009 | 1,285 | |||||||||||||||||||||||||||||||||||||
Ending Balance at Mar. 31, 2009 | 21,382 | 1 | 20,288 | 1,655 | (312) | (31) | (37) | (350) | 21,214 | 168 | ||||||||||||||||||||||||||||
Ending Balance at Mar. 31, 2009 | 7,478 | (26) | (7) | 7,511 | ||||||||||||||||||||||||||||||||||
Ending Balance at Mar. 31, 2009 | 6,764 | 762 | 5,570 | 466 | (6) | (28) | 2,642 | 1 | 868 | 1,762 | 11 | |||||||||||||||||||||||||||
Beginning Balance at Dec. 31, 2009 | 21,886 | 1 | 20,661 | 1,460 | 17 | (22) | (31) | (336) | 21,750 | 136 | ||||||||||||||||||||||||||||
Beginning Balance at Dec. 31, 2009 | 21,750 | 5,898 | 762 | 5,570 | (405) | 1 | (30) | 2,934 | 1 | 1,008 | 1,915 | 10 | ||||||||||||||||||||||||||
Beginning Balance at Dec. 31, 2009 | 8,271 | (24) | (9) | 8,304 | ||||||||||||||||||||||||||||||||||
Beginning Balance (in shares) at Dec. 31, 2009 | 1,309 | 1,309 | 90 | 54 | ||||||||||||||||||||||||||||||||||
Net income | 445 | 445 | 445 | 130 | 130 | 192 | 192 | 70 | 70 | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | (22) | (18) | (18) | (4) | ||||||||||||||||||||||||||||||||||
Pension and OPEB related adjustments to AOCI | 13 | [6] | 13 | [6] | 13 | [6] | (1) | [7] | (1) | [7] | ||||||||||||||||||||||||||||
Reclassification into earnings from cash flow hedges | 1 | [1] | 1 | [1] | 1 | [1] | (1) | [8] | (1) | [8] | ||||||||||||||||||||||||||||
Unrealized gain (loss) on investments in auction rate securities | 3 | [4] | 3 | [4] | 3 | [4] | ||||||||||||||||||||||||||||||||
Total comprehensive income | 440 | 444 | (4) | 129 | 69 | |||||||||||||||||||||||||||||||||
Capital contribution from parent | 225 | 225 | ||||||||||||||||||||||||||||||||||||
Common stock issuances, including dividend reinvestment and employee benefits (in shares) | 3 | |||||||||||||||||||||||||||||||||||||
Common stock issuances, including dividend reinvestment and employee benefits | 36 | 36 | 36 | |||||||||||||||||||||||||||||||||||
Common stock dividends | (316) | (316) | (316) | |||||||||||||||||||||||||||||||||||
Changes in noncontrolling interest in subsidiaries | 2 | 2 | ||||||||||||||||||||||||||||||||||||
Dividend to parent | (200) | (200) | ||||||||||||||||||||||||||||||||||||
Ending Balance (in shares) at Mar. 31, 2010 | 1,312 | 1,312 | 90 | 54 | ||||||||||||||||||||||||||||||||||
Ending Balance at Mar. 31, 2010 | 22,048 | 1 | 20,697 | 1,589 | (1) | (21) | (28) | (323) | 21,914 | 134 | ||||||||||||||||||||||||||||
Ending Balance at Mar. 31, 2010 | 8,263 | (24) | (9) | 8,296 | ||||||||||||||||||||||||||||||||||
Ending Balance at Mar. 31, 2010 | $21,914 | $6,027 | $762 | $5,570 | ($275) | $1 | ($31) | $3,228 | $1 | $1,233 | $1,985 | $9 | ||||||||||||||||||||||||||
[1]Reclassification into earnings from cash flow hedges, net of insignificant tax expense in 2010 and $4 tax expense in 2009. | ||||||||||||||||||||||||||||||||||||||
[2]Reclassification into earnings from cash flow hedges, net of $4 tax expense in 2009. | ||||||||||||||||||||||||||||||||||||||
[3]Reclassification into earnings from cash flow hedges, net of insignificant tax expense in 2009. | ||||||||||||||||||||||||||||||||||||||
[4]Net of $2 tax expense in 2010 and $3 tax benefit in 2009. | ||||||||||||||||||||||||||||||||||||||
[5]Net of $1 tax benefit in 2009. | ||||||||||||||||||||||||||||||||||||||
[6]Net of $5 tax benefit in 2010. | ||||||||||||||||||||||||||||||||||||||
[7]Net of insignificant tax benefit in 2010. | ||||||||||||||||||||||||||||||||||||||
[8]Reclassification into earnings from cash flow hedges, net of insignificant tax benefit in 2010. |
4_CONDENSED CONSOLIDATED STATEM
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND COMPREHENSIVE INCOME (Parenthetical) (USD $) | ||
In Millions | 3 Months Ended
Mar. 31, 2010 DUKE ENERGY CORP | 3 Months Ended
Mar. 31, 2009 DUKE ENERGY CORP |
DUKE ENERGY CORP | ||
Reclassification into earnings from cash flow hedges, tax expense | $4 | |
Unrealized gain (loss) on investments in auction rate securities, tax expense (benefit) | 2 | (3) |
Unrealized loss on investments in available-for-sale securities, tax benefit | (1) | |
Pension and OPEB related adjustments to AOCI, tax benefit | (5) | |
DUKE ENERGY OHIO, INC. | ||
Reclassification into earnings from cash flow hedges, tax expense | 4 | |
DUKE ENERGY CAROLINAS, LLC | ||
Unrealized gain (loss) on investments in auction rate securities, tax expense (benefit) | ($1) |
Organization and Basis of Prese
Organization and Basis of Presentation | |
3 Months Ended
Mar. 31, 2010 | |
Organization and Basis of Presentation | 1. Organization and Basis of Presentation Organization. Duke Energy Corporation (collectively with its subsidiaries, Duke Energy) is an energy company primarily located in the Americas. Duke Energy operates in the United States (U.S.) primarily through its direct and indirect wholly-owned subsidiaries, Duke Energy Carolinas, LLC (Duke Energy Carolinas), Duke Energy Ohio, Inc. (Duke Energy Ohio), which includes Duke Energy Kentucky, Inc. (Duke Energy Kentucky), and Duke Energy Indiana, Inc. (Duke Energy Indiana), as well as in South and Central America through International Energy. When discussing Duke Energys condensed consolidated financial information, it necessarily includes the results of its three separate subsidiary registrants, Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana (collectively referred to as the Subsidiary Registrants), which, along with Duke Energy, are collectively referred to as the Duke Energy Registrants. The information in these combined notes relates to each of the Duke Energy Registrants as noted in the Index to the Combined Notes. However, none of the registrants makes any representation as to information related solely to Duke Energy or the subsidiaries of Duke Energy other than itself. See Note 2 for information related to reportable operating segments for each of the Duke Energy Registrants. These Unaudited Condensed Consolidated Financial Statements include, after eliminating intercompany transactions and balances, the accounts of the Duke Energy Registrants and all majority-owned subsidiaries where the respective Duke Energy Registrants have control and those variable interest entities where the respective Duke Energy Registrants are the primary beneficiary. These Unaudited Condensed Consolidated Financial Statements also reflect Duke Energy Carolinas approximate 19% proportionate share of the Catawba Nuclear Station, as well as Duke Energy Ohios proportionate share of certain generation and transmission facilities in Ohio, Indiana and Kentucky and Duke Energy Indianas proportionate share of certain generation and transmission facilities. Duke Energy Carolinas generates, transmits, distributes and sells electricity in North Carolina and South Carolina. Duke Energy Carolinas is subject to the regulatory provisions of the North Carolina Utilities Commission (NCUC), the Public Service Commission of South Carolina (PSCSC), the U.S. Nuclear Regulatory Commission (NRC) and the Federal Energy Regulatory Commission (FERC). Substantially all of Duke Energy Carolinas operations are regulated and qualify for regulatory accounting treatment. Duke Energy Ohio is a wholly-owned subsidiary of Cinergy Corp. (Cinergy), which is a wholly-owned subsidiary of Duke Energy. Duke Energy Ohio is a combination electric and gas public utility that provides service in the southwestern portion of Ohio and in northern Kentucky through its wholly-owned subsidiary Duke Energy Kentucky, as well as electric generation in parts of Ohio, Illinois, Indiana and Pennsylvania. Duke Energy Ohios principal lines of business include generation, transmission and distribution of electricity, the sale of and/or transportati |
Business Segments
Business Segments | |
3 Months Ended
Mar. 31, 2010 | |
Business Segments | 2. Business Segments Management evaluates segment performance based on earnings before interest and taxes from continuing operations (excluding certain allocated corporate governance costs), after deducting expenses attributable to noncontrolling interests related to those profits (EBIT). On a segment basis, EBIT excludes discontinued operations, represents all profits from continuing operations (both operating and non-operating) before deducting interest and taxes, and is net of amounts attributable to noncontrolling interests related to those profits. Segment EBIT includes transactions between reportable segments. Cash, cash equivalents and short-term investments are managed centrally by Duke Energy, so the associated interest and dividend income and realized and unrealized gains and losses from foreign currency transactions on those balances are excluded from segment EBIT. Operating segments for each of the Duke Energy Registrants are determined based on information used by the chief operating decision maker in deciding how to allocate resources and evaluate performance at each of the Duke Energy Registrants. There is no aggregation within reportable operating segments at any of the Duke Energy Registrants. Accounting policies for the Duke Energy Registrants segments are the same as those described in the respective Notes to the Consolidated Financial Statements in Duke Energys, Duke Energy Carolinas, Duke Energy Ohios and Duke Energy Indianas Annual Report on Form 10-K for the year ended December31, 2009. Duke Energy Duke Energy has the following reportable operating segments: U.S. Franchised Electric and Gas (USFEG), Commercial Power and International Energy. USFEG generates, transmits, distributes and sells electricity in central and western North Carolina, western South Carolina, central, north central and southern Indiana, and northern Kentucky. USFEG also transmits and distributes electricity in southwestern Ohio. Additionally, USFEG transports and sells natural gas in southwestern Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Carolinas, certain regulated portions of DukeEnergy Ohio including Duke Energy Kentucky, and Duke Energy Indiana. Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Commercial Powers generation asset fleet consists of Duke Energy Ohios regulated generation in Ohio and five Midwestern gas-fired non-regulated generation assets. The asset portfolio has a diversified fuel mix with base-load and mid-merit coal-fired units as well as combined cycle and peaking natural gas-fired units. Commercial Power also has a retail sales subsidiary, Duke Energy Retail Sales (DERS), which is certified by the PUCO as a Competitive Retail Electric Service (CRES) provider in Ohio. DERS serves retail electric customers in southwest, west central and northern Ohio at competitive rates. Due to increased levels of customer switching as a result of the competitive markets in Ohio, DERS has focused on acquiring c |
Regulatory Matters
Regulatory Matters | |
3 Months Ended
Mar. 31, 2010 | |
Regulatory Matters | 3. Regulatory Matters Rate Related Information. The NCUC, PSCSC, IURC and KPSC approve rates for retail electric and gas services within their states. The PUCO approves rates for retail gas and electric service within Ohio, except that non-regulated sellers of gas and electric generation also are allowed to operate in Ohio. The FERC approves rates for electric sales to wholesale customers served under cost-based rates, as well as sales of transmission service. Duke Energy Kentucky Energy Efficiency. On November15, 2007, Duke Energy Kentucky filed its annual application to continue existing energy efficiency programs, consisting of nine residential and two commercial and industrial programs, and to true-up its gas and electric tracking mechanism for recovery of lost revenues, program costs and shared savings. On February11, 2008, Duke Energy Kentucky filed a motion to amend its energy efficiency programs. On December1, 2008, Duke Energy Kentucky filed an application for a save-a-watt Energy Efficiency Plan. The application sought a new energy efficiency recovery mechanism similar to what was proposed in Ohio. On January27, 2010, Duke Energy Kentucky withdrew the application to implement save-a-watt and plans to file a revised portfolio in the future. Until that time, energy efficiency programs continue under Duke Energy Kentuckys demand-side management program. Duke Energy Indiana Storm Cost Deferrals. On July22, 2009, Duke Energy Indiana filed a request with the IURC to defer storm costs associated with a January27, 2009 ice storm, which caused $14 million of damage primarily to its distribution system. Duke Energy Indiana has requested to defer the retail jurisdictional portion of the incremental storm costs, which would otherwise be charged as operating expense, until Duke Energy Indianas next general rate proceeding. The costs at issue have been charged to operating expense pending an IURC order in this proceeding. Duke Energy Indiana filed its case-in-chief testimony on August27, 2009, and an evidentiary hearing was held on November12, 2009. An order is expected by the second quarter of 2010. Duke Energy Ohio Storm Cost Recovery. On December11, 2009, Duke Energy Ohio filed an application with the PUCO to recover Hurricane Ike storm restoration costs of $31 million through a discrete rider. The PUCO granted the request to defer the costs associated with the storm recovery; however, they further ordered Duke Energy Ohio to file a separate action pursuant to which the actual amount of recovery would be determined. Duke Energy Ohio is currently in the discovery process and a hearing is set for May25, 2010. Duke Energy Carolinas Broad River Energy Center. On August25, 2007, Duke Energy Carolinas experienced a disturbance on its bulk electric system which initiated at the Broad River Energy Center, a generating station owned and operated by a third party. The disturbance resulted in the tripping of six Duke Energy Carolinas generating units and the temporary opening of five 230 kilovolt (KV) transmission lines. The event resulted in no loss of load.In September 2008 the FERC initiated a preliminary, non-public investigation to |
Commitments and Contingencies
Commitments and Contingencies | |
3 Months Ended
Mar. 31, 2010 | |
Commitments and Contingencies | 4. Commitments and Contingencies Environmental Duke Energy is subject to international, federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal and other environmental matters. Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana are subject to federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal and other environmental matters. These regulations can be changed from time to time, imposing new obligations on the Duke Energy Registrants. The following environmental matters impact all of the Duke Energy Registrants. Remediation Activities. The Duke Energy Registrants are responsible for environmental remediation at various contaminated sites. These include some properties that are part of ongoing operations, sites formerly owned or used by Duke Energy entities, and sites owned by third parties. Remediation typically involves management of contaminated soils and may involve groundwater remediation. Managed in conjunction with relevant federal, state and local agencies, activities vary with site conditions and locations, remedial requirements, complexity and sharing of responsibility. If remediation activities involve statutory joint and several liability provisions, strict liability, or cost recovery or contribution actions, the Duke Energy Registrants could potentially be held responsible for contamination caused by other parties. In some instances, the Duke Energy Registrants may share liability associated with contamination with other potentially responsible parties, and may also benefit from insurance policies or contractual indemnities that cover some or all cleanup costs. All of these sites generally are managed in the normal course of business or affiliate operations. During 2009, the Duke Energy Registrants recorded additional reserves associated with remediation activities at certain manufactured gas plant sites and it is anticipated that additional costs associated with remediation activities at certain of its sites will be incurred in the future. The Duke Energy Registrants have accrued costs associated with remediation activities at some of its current and former sites, as well as other relevant environmental contingent liabilities. Management, in the normal course of business, continually assesses the nature and extent of known or potential environmental-related contingencies and records liabilities when losses become probable and are reasonably estimable. Costs associated with remediation activities within the Duke Energy Registrants regulated operations are typically expensed unless recovery of the costs is deemed probable. Clean Water Act 316(b). The Environmental Protection Agency (EPA) finalized its cooling water intake structures rule in July 2004. The rule established aquatic protection requirements for existing facilities that withdraw 50million gallons or more of water per day from rivers, streams, lakes, reservoirs, estuaries, oceans, or other U.S. waters for cooling purposes. Fourteen of the 23 coal and nuclear-fueled generating facilities in which Duke Energy is either a whole or partial owner |
Debt and Credit Facilities
Debt and Credit Facilities | |
3 Months Ended
Mar. 31, 2010 | |
Debt and Credit Facilities | 5. Debt and Credit Facilities Significant changes to Duke Energys, Duke Energy Carolinas, Duke Energy Ohios and Duke Energy Indianas debt and credit facilities since December31, 2009 are as follows: Unsecured Debt. In March 2010, Duke Energy issued $450 million principal amount of 3.35% senior notes due April1, 2015. Proceeds from the issuance were used to repay $274 million of borrowings under the master credit facility and for general corporate purposes. Non-Recourse Notes Payable of VIEs. As discussed further in Notes 1 and 10, effective January1, 2010, Duke Energy began consolidating Cinergy Receivables. To fund the purchase of receivables, Cinergy Receivables borrows from third parties and such borrowings fluctuate based on the amount of receivables sold to Cinergy Receivables. The borrowings are secured by the assets of Cinergy Receivables and are non-recourse to Duke Energy. The debt is short-term because the facility has an expiration date of October 2010; however, Duke Energy expects to extend that expiration by one year prior to its current expiration. At March31, 2010, Cinergy Receivables borrowings were $350 million and are reflected as Non-recourse Notes Payable of VIEs on Duke Energys Condensed Consolidated Balance Sheets. Money Pool. The Subsidiary Registrants receive support for their short-term borrowing needs through participation with Duke Energy and other Duke Energy subsidiaries in a money pool arrangement. Under this arrangement, those companies with short-term funds may provide short-term loans to affiliates participating under this arrangement. The money pool is structured such that the Subsidiary Registrants separately manage their cash needs and working capital requirements. Accordingly, there is no net settlement of receivables and payables between the money pool participants. Per the terms of the money pool arrangement, Duke Energy may loan funds to its participating subsidiaries, but may not borrow funds through the money pool. Accordingly, as the money pool activity is between Duke Energy and its wholly-owned subsidiaries, all money pool balances are eliminated within Duke Energys Condensed Consolidated Balance Sheets. As of March31, 2010 and December31, 2009, Duke Energy Carolinas had short-term money pool receivables of $377 million and $589 million, respectively, which are classified within Receivables in the Duke Energy Carolinas Condensed Consolidated Balance Sheets, and $300 million in money pool borrowings as of both dates, which are classified as long-term borrowings within Long-term Debt in the Duke Energy Carolinas Condensed Consolidated Balance Sheets. As of March31, 2010 and December31, 2009, Duke Energy Ohio and Duke Energy Kentucky had combined short-term money pool receivables of $363 million and $184 million, respectively, which are classified within Receivables in Duke Energy Ohios Condensed Consolidated Balance Sheets. As of March31, 2010, Duke Energy Indiana was in a net money pool payable position of $35 million, of which $115 million is classified within Receivables and $150 million is classified within Long-term Debt in Duke Energy Indianas Condensed Consolidated Balan |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | |
3 Months Ended
Mar. 31, 2010 DUKE ENERGY CORP | |
DUKE ENERGY CORP | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill The following table shows goodwill by reportable operating segment for Duke Energy and Duke Energy Ohio at March31, 2010 and December31, 2009: USFEG CommercialPower International Total (in millions) Duke Energy Balance at December31, 2009: Goodwill $ 3,483 $ 940 $ 298 $ 4,721 Accumulated Impairment Losses (371 ) (371 ) Balance at December31, 2009, as adjusted for accumulated impairment losses 3,483 569 298 4,350 Foreign Exchange and Other Changes (1 ) (1 ) Balance as of March31, 2010 $ 3,483 $ 569 $ 297 $ 4,349 USFEG CommercialPower Total (in millions) Duke Energy Ohio Balance at December31, 2009: Goodwill $ 1,137 $ 1,188 $ 2,325 Accumulated Impairment Losses (727 ) (727 ) Balance at December31, 2009, as adjusted for accumulated impairment losses 1,137 461 1,598 Foreign Exchange and Other Changes Balance as of March31, 2010 $ 1,137 $ 461 $ 1,598 Intangible Assets The net carrying amount of intangible assets as of March31, 2010 and December31, 2009 is $571 million and $593 million, respectively, at Duke Energy, $319 million and $332 million, respectively, at Duke Energy Ohio and $88 million and $98 million, respectively, at Duke Energy Indiana. The decrease in the net carrying amount of intangible assets relates primarily to the consumption and/or sales of emission allowances during the three months ended March31, 2010. |
DUKE ENERGY OHIO, INC. | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill The following table shows goodwill by reportable operating segment for Duke Energy and Duke Energy Ohio at March31, 2010 and December31, 2009: USFEG CommercialPower International Total (in millions) Duke Energy Balance at December31, 2009: Goodwill $ 3,483 $ 940 $ 298 $ 4,721 Accumulated Impairment Losses (371 ) (371 ) Balance at December31, 2009, as adjusted for accumulated impairment losses 3,483 569 298 4,350 Foreign Exchange and Other Changes (1 ) (1 ) Balance as of March31, 2010 $ 3,483 $ 569 $ 297 $ 4,349 USFEG CommercialPower Total (in millions) Duke Energy Ohio Balance at December31, 2009: Goodwill $ 1,137 $ 1,188 $ 2,325 Accumulated Impairment Losses (727 ) (727 ) Balance at December31, 2009, as adjusted for accumulated impairment losses 1,137 461 1,598 Foreign Exchange and Other Changes Balance as of March31, 2010 $ 1,137 $ 461 $ 1,598 Intangible Assets The net carrying amount of intangible assets as of March31, 2010 and December31, 2009 is $571 million and $593 million, respectively, at Duke Energy, $319 million and $332 million, respectively, at Duke Energy Ohio and $88 million and $98 million, respectively, at Duke Energy Indiana. The decrease in the net carrying amount of intangible assets relates primarily to the consumption and/or sales of emission allowances during the three months ended March31, 2010. |
DUKE ENERGY INDIANA, INC. | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill The following table shows goodwill by reportable operating segment for Duke Energy and Duke Energy Ohio at March31, 2010 and December31, 2009: USFEG CommercialPower International Total (in millions) Duke Energy Balance at December31, 2009: Goodwill $ 3,483 $ 940 $ 298 $ 4,721 Accumulated Impairment Losses (371 ) (371 ) Balance at December31, 2009, as adjusted for accumulated impairment losses 3,483 569 298 4,350 Foreign Exchange and Other Changes (1 ) (1 ) Balance as of March31, 2010 $ 3,483 $ 569 $ 297 $ 4,349 USFEG CommercialPower Total (in millions) Duke Energy Ohio Balance at December31, 2009: Goodwill $ 1,137 $ 1,188 $ 2,325 Accumulated Impairment Losses (727 ) (727 ) Balance at December31, 2009, as adjusted for accumulated impairment losses 1,137 461 1,598 Foreign Exchange and Other Changes Balance as of March31, 2010 $ 1,137 $ 461 $ 1,598 Intangible Assets The net carrying amount of intangible assets as of March31, 2010 and December31, 2009 is $571 million and $593 million, respectively, at Duke Energy, $319 million and $332 million, respectively, at Duke Energy Ohio and $88 million and $98 million, respectively, at Duke Energy Indiana. The decrease in the net carrying amount of intangible assets relates primarily to the consumption and/or sales of emission allowances during the three months ended March31, 2010. |
Risk Management, Derivative Ins
Risk Management, Derivative Instruments and Hedging Activities | |
3 Months Ended
Mar. 31, 2010 | |
Risk Management, Derivative Instruments and Hedging Activities | 7. Risk Management, Derivative Instruments and Hedging Activities The Duke Energy Registrants utilize various derivative instruments to manage risks primarily associated with commodity prices and interest rates. The primary use of energy commodity derivatives is to hedge the generation portfolio against exposure to changes in the prices of power and fuel. Interest rate derivatives are entered into to manage interest rate risk associated with variable-rate and fixed-rate borrowings. Certain derivative instruments qualify for hedge accounting and are designated as either cash flow hedges or fair value hedges, while others either do not qualify as a hedge (such as economic hedges) or have not been designated as hedges (hereinafter referred to as undesignated contracts). All derivative instruments not meeting the criteria for the normal purchase normal sale (NPNS) exception are recognized as either assets or liabilities at fair value in the Condensed Consolidated Balance Sheets. As the regulated operations of the Duke Energy Registrants meet the criteria for regulatory accounting treatment, the majority of the derivative contracts entered into by the regulated operations are not designated as hedges since gains and losses on such contracts are deferred as regulatory liabilities and assets, respectively, thus there is no immediate earnings impact associated with changes in fair values of such derivative contracts. For derivative instruments that qualify and are designated as cash flow hedges, the effective portion of the gain or loss is reported as a component of Accumulated Other Comprehensive Income (AOCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any gains or losses on the derivative that represent either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. For derivative instruments that qualify and are designated as a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item are recognized in earnings in the current period. Any gains or losses on the derivative are included in the same line item as the offsetting loss or gain on the hedged item in the Condensed Consolidated Statements of Operations. Information presented in the tables below relates to Duke Energy on a consolidated basis and Duke Energy Ohio. As derivative activity is insignificant at Duke Energy Carolinas and Duke Energy Indiana, separate disclosure for each of those registrants is not presented. Commodity Price Risk The Duke Energy Registrants are exposed to the impact of market changes in the future prices of electricity (energy, capacity and financial transmission rights), coal, natural gas and emission allowances (sulfur dioxide (SO2), seasonal nitrogen oxide (NOX) and annual NOX) as a result of their energy operations such as electric generation and the transportation and sale of natural gas. With respect to commodity price risks associated with electric generation, the Duke Energy Registrants are exposed to changes including, but not limited to, the cost of |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | |
3 Months Ended
Mar. 31, 2010 | |
Fair Value of Financial Assets and Liabilities | 8. Fair Value of Financial Assets and Liabilities Under the accounting guidance for fair value, fair value is considered to be the exchange price in an orderly transaction between market participants to sell an asset or transfer a liability at the measurement date. The fair value definition focuses on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability versus an entry price, which would be the price paid to acquire an asset or received to assume a liability. Although the accounting guidance for fair value does not require additional fair value measurements, it applies to other accounting pronouncements that require or permit fair value measurements. Recurring and non-recurring fair value measurements are classified based on the following fair value hierarchy, as prescribed by the accounting guidance for fair value, which prioritizes the inputs to valuation techniques used to measure fair value into three levels: Level 1unadjusted quoted prices in active markets for identical assets or liabilities that the Duke Energy Registrants have the ability to access. An active market for the asset or liability is one in which transactions for the asset or liability occur with sufficient frequency and volume to provide ongoing pricing information. Quoted market prices on Level 1 are not adjusted for any blockage factor. Level 2a fair value measurement utilizing inputs other than a quoted market price that are observable, either directly or indirectly, for the asset or liability. Level 2 inputs include, but are not limited to, quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted market prices that are observable for the asset or liability, such as interest rate curves and yield curves observable at commonly quoted intervals, volatilities, credit risk and default rates. A level 2 measurement cannot have more than an insignificant portion of the valuation based on unobservable inputs. Level 3any fair value measurements which include unobservable inputs for the asset or liability for more than an insignificant portion of the valuation. A level 3 measurement may be based primarily on level 2 inputs. There are no financial assets or financial liabilities that are not required to be accounted for at fair value under GAAP for which the option to record at fair value has been elected. However, in the future, the Duke Energy Registrants may elect to measure certain financial instruments at fair value in accordance with this accounting guidance. Valuation methods of the primary fair value measurements disclosed below are as follows: Investments in equity securities. Investments in equity securities are typically valued at the closing price in the principal active market as of the last business day of the quarter. Principal active markets for equity prices include published exchanges such as NASDAQ, NYSE, NYMEX and Chicago Board of Trade, as well as pink sheets, which is an electronic quotation system that displays quotes for broker-dealers for many ov |
Investments in Debt and Equity
Investments in Debt and Equity Securities | |
3 Months Ended
Mar. 31, 2010 DUKE ENERGY CORP | |
DUKE ENERGY CORP | |
Investments in Debt and Equity Securities | 9. Investments in Debt and Equity Securities Duke Energy, Duke Energy Carolinas and Duke Energy Indiana classify their investments as either trading or available-for-sale. Trading securities are reported at fair value in the Condensed Consolidated Balance Sheets with net realized and unrealized gains and losses included in earnings each period. Available-for-sale securities are also reported at fair value on the Condensed Consolidated Balance Sheets with unrealized gains and losses excluded from earnings and reported either as a regulatory asset or liability, as discussed further below, or as a component of other comprehensive income until realized. Trading Securities. Duke Energy holds investments in debt and equity securities in grantor trusts that are associated with certain deferred compensation plans. These investments are reported at fair value in Duke Energys Condensed Consolidated Balance Sheets and all realized and unrealized gains and losses are included in earnings each period. At March31, 2010 and December31, 2009, the fair value of these investments was $32 million and $33 million, respectively. Available-for-Sale Securities. Investments classified as available-for-sale are comprised of Duke Energy Carolinas NDTF investments, investments in a grantor trust at Duke Energy Indiana related to other post-retirement benefit plans as required by the IURC, Duke Energys captive insurance investment portfolio and Duke Energys and Duke Energy Carolinas investments in auction rate debt securities. All unrealized losses associated with investments in debt and equity securities within Duke Energy Carolinas NDTF and substantially all unrealized losses associated with Duke Energy Indianas grantor trust are deferred as a regulatory asset as those operations meet the criteria for regulatory accounting treatment, thus there is no immediate earnings impact as a result of any other-than-temporary impairments that would otherwise be required to be recognized in earnings. For investments held in Duke Energys captive insurance portfolio and investments in auction rate debt securities held by Duke Energy and Duke Energy Carolinas, unrealized gains and losses are included in other comprehensive income until realized, unless it is determined that the carrying value of an investment is other-than-temporarily impaired, at which time the write-down to fair value may be included in earnings based on the criteria discussed below. Impairment Analysis. The investments within Duke Energy Carolinas NDTF and Duke Energy Indianas grantor trust are managed by independent investment managers with discretion to buy, sell and invest pursuant to the objectives set forth by the trust agreements. Therefore, Duke Energy Carolinas and Duke Energy Indiana have limited oversight of the day-to-day management of these investments. Since day-to-day investment decisions, including buy and sell decisions, are made by the investment manager, the ability to hold investments in unrealized loss positions is outside the control of Duke Energy Carolinas and Duke Energy Indiana. Accordingly, all unrealized losses associated with equity securities within Duke Energy Caroli |
DUKE ENERGY CAROLINAS, LLC | |
Investments in Debt and Equity Securities | 9. Investments in Debt and Equity Securities Duke Energy, Duke Energy Carolinas and Duke Energy Indiana classify their investments as either trading or available-for-sale. Trading securities are reported at fair value in the Condensed Consolidated Balance Sheets with net realized and unrealized gains and losses included in earnings each period. Available-for-sale securities are also reported at fair value on the Condensed Consolidated Balance Sheets with unrealized gains and losses excluded from earnings and reported either as a regulatory asset or liability, as discussed further below, or as a component of other comprehensive income until realized. Trading Securities. Duke Energy holds investments in debt and equity securities in grantor trusts that are associated with certain deferred compensation plans. These investments are reported at fair value in Duke Energys Condensed Consolidated Balance Sheets and all realized and unrealized gains and losses are included in earnings each period. At March31, 2010 and December31, 2009, the fair value of these investments was $32 million and $33 million, respectively. Available-for-Sale Securities. Investments classified as available-for-sale are comprised of Duke Energy Carolinas NDTF investments, investments in a grantor trust at Duke Energy Indiana related to other post-retirement benefit plans as required by the IURC, Duke Energys captive insurance investment portfolio and Duke Energys and Duke Energy Carolinas investments in auction rate debt securities. All unrealized losses associated with investments in debt and equity securities within Duke Energy Carolinas NDTF and substantially all unrealized losses associated with Duke Energy Indianas grantor trust are deferred as a regulatory asset as those operations meet the criteria for regulatory accounting treatment, thus there is no immediate earnings impact as a result of any other-than-temporary impairments that would otherwise be required to be recognized in earnings. For investments held in Duke Energys captive insurance portfolio and investments in auction rate debt securities held by Duke Energy and Duke Energy Carolinas, unrealized gains and losses are included in other comprehensive income until realized, unless it is determined that the carrying value of an investment is other-than-temporarily impaired, at which time the write-down to fair value may be included in earnings based on the criteria discussed below. Impairment Analysis. The investments within Duke Energy Carolinas NDTF and Duke Energy Indianas grantor trust are managed by independent investment managers with discretion to buy, sell and invest pursuant to the objectives set forth by the trust agreements. Therefore, Duke Energy Carolinas and Duke Energy Indiana have limited oversight of the day-to-day management of these investments. Since day-to-day investment decisions, including buy and sell decisions, are made by the investment manager, the ability to hold investments in unrealized loss positions is outside the control of Duke Energy Carolinas and Duke Energy Indiana. Accordingly, all unrealized losses associated with equity securities within Duke Energy Caroli |
DUKE ENERGY INDIANA, INC. | |
Investments in Debt and Equity Securities | 9. Investments in Debt and Equity Securities Duke Energy, Duke Energy Carolinas and Duke Energy Indiana classify their investments as either trading or available-for-sale. Trading securities are reported at fair value in the Condensed Consolidated Balance Sheets with net realized and unrealized gains and losses included in earnings each period. Available-for-sale securities are also reported at fair value on the Condensed Consolidated Balance Sheets with unrealized gains and losses excluded from earnings and reported either as a regulatory asset or liability, as discussed further below, or as a component of other comprehensive income until realized. Trading Securities. Duke Energy holds investments in debt and equity securities in grantor trusts that are associated with certain deferred compensation plans. These investments are reported at fair value in Duke Energys Condensed Consolidated Balance Sheets and all realized and unrealized gains and losses are included in earnings each period. At March31, 2010 and December31, 2009, the fair value of these investments was $32 million and $33 million, respectively. Available-for-Sale Securities. Investments classified as available-for-sale are comprised of Duke Energy Carolinas NDTF investments, investments in a grantor trust at Duke Energy Indiana related to other post-retirement benefit plans as required by the IURC, Duke Energys captive insurance investment portfolio and Duke Energys and Duke Energy Carolinas investments in auction rate debt securities. All unrealized losses associated with investments in debt and equity securities within Duke Energy Carolinas NDTF and substantially all unrealized losses associated with Duke Energy Indianas grantor trust are deferred as a regulatory asset as those operations meet the criteria for regulatory accounting treatment, thus there is no immediate earnings impact as a result of any other-than-temporary impairments that would otherwise be required to be recognized in earnings. For investments held in Duke Energys captive insurance portfolio and investments in auction rate debt securities held by Duke Energy and Duke Energy Carolinas, unrealized gains and losses are included in other comprehensive income until realized, unless it is determined that the carrying value of an investment is other-than-temporarily impaired, at which time the write-down to fair value may be included in earnings based on the criteria discussed below. Impairment Analysis. The investments within Duke Energy Carolinas NDTF and Duke Energy Indianas grantor trust are managed by independent investment managers with discretion to buy, sell and invest pursuant to the objectives set forth by the trust agreements. Therefore, Duke Energy Carolinas and Duke Energy Indiana have limited oversight of the day-to-day management of these investments. Since day-to-day investment decisions, including buy and sell decisions, are made by the investment manager, the ability to hold investments in unrealized loss positions is outside the control of Duke Energy Carolinas and Duke Energy Indiana. Accordingly, all unrealized losses associated with equity securities within Duke Energy Caroli |
Variable Interest Entities
Variable Interest Entities | |
3 Months Ended
Mar. 31, 2010 | |
Variable Interest Entities | 10. Variable Interest Entities A VIE is an entity that is evaluated for consolidation by more than a simple analysis of voting control. The analysis to determine whether an entity is a VIE considers contracts with an entity, credit support for an entity, the adequacy of the equity investment of an entity and the relationship of voting power to the amount of equity invested in an entity. This analysis is performed either upon the creation of a legal entity or upon the occurrence of an event requiring reevaluation, such as a significant change in an entitys assets or activities. If an entity is determined to be a VIE, a qualitative analysis of control determines the party that consolidates a VIE based on what party has the power to direct the most significant activities of a legal entity that impact its economic performance as well as what party has rights to receive benefits or is obligated to absorb losses that are significant to the VIE. The analysis of the party that consolidates a VIE is a continual reassessment. As discussed in Note 17, the Duke Energy Registrants adopted new accounting rules associated with VIEs effective January1, 2010. There were no material changes in decisions on consolidation of VIEs except for the adoption of new accounting rules that required Duke Energy to consolidate Cinergy Receivables, as discussed in Note 1. CONSOLIDATED VIEs The table below shows the VIEs that Duke Energy and Duke Energy Carolinas consolidates and how these entities impact Duke Energys and Duke Energy Carolinas Condensed Consolidated Balance Sheets. All entities listed in the table below are consolidated by Duke Energy, while only Duke Energy Receivables Finance Company, LLC (DERF) is also consolidated by Duke Energy Carolinas. None of these entities is consolidated by Duke Energy Ohio or Duke Energy Indiana. CinergyReceivables DERF CinCapV DukeEnergy (in millions) At March31, 2010 Condensed Consolidated Balance Sheets Receivables Restricted: VIEs $ 626 $ 574 $ $ 1,200 Receivables 11 11 Current Assets: Other 2 2 Investments and Other Assets: Other 107 107 Total Assets 626 574 120 1,320 Non-recourse notes payable of VIEs 350 350 Interest accrued 1 1 Current Maturities of Long-Term Debt 8 8 Current Liabilities: Other 2 2 Long-Term Debt: Non-recourse VIE 300 79 379 Deferred Credits and Other Liabilities: Other 22 22 Total Liabilities 350 300 112 762 Net Duke Energy Corporation Shareholders Equity $ 276 $ 274 $ 8 $ 558 There was no financial support provided during the quarter for the above VIEs that was not previously contractually required. Cinergy Receivables. Cinergy Receivables was formed in order to secure low cost financing for Duke Energy Ohio, including Duke Energy Kentucky, |
Earnings Per Common Share (EPS)
Earnings Per Common Share (EPS) (DUKE ENERGY CORP) | |
3 Months Ended
Mar. 31, 2010 | |
Earnings Per Common Share (EPS) | 11. Earnings Per Common Share (EPS) Basic EPS is computed by dividing net income attributable to Duke Energy common stockholders, 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 stockholders, 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 reflects 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. The following table illustrates Duke Energys 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 for the three months ended March31, 2010 and 2009. Income Average Shares EPS (inmillions,exceptper-shareamounts) Three Months Ended March31, 2010 Income from continuing operations attributable to Duke Energy common shareholders, as adjusted for participating securitiesbasic $ 444 1,310 $ 0.34 Effect of dilutive securities: Stock options, performance and unvested stock 1 Income from continuing operations attributable to Duke Energy common shareholders, as adjusted for participating securitiesdiluted $ 444 1,311 $ 0.34 Three Months Ended March31, 2009 Income from continuing operations attributable to Duke Energy common shareholders, as adjusted for participating securitiesbasic $ 341 1,282 $ 0.27 Effect of dilutive securities: Stock options, performance and unvested stock 1 Income from continuing operations attributable to Duke Energy common shareholders, as adjusted for participating securitiesdiluted $ 341 1,283 $ 0.27 As of March31, 2010 and 2009, 18million and 20million, respectively, of stock options and performance and unvested stock awards were not included in the effect of dilutive securities in the above table because either the option exercise prices were greater than the average market price of the common shares during those periods, or performance measures related to the awards had not yet been met. During the three months ended March31, 2010 and 2009, Duke Energy received proceeds of $30 million and $170 million, respectively, from the sale of common stock issued to fulfill obligations under its Dividend Reinvestment Plan (DRIP) and other internal plans, including 401(k) plans. |
Stock-Based Compensation
Stock-Based Compensation (DUKE ENERGY CORP) | |
3 Months Ended
Mar. 31, 2010 | |
Stock-Based Compensation | 12. Stock-Based Compensation For employee awards, equity classified stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense or capitalized as a component of property, plant and equipment over the requisite service period. Duke Energy recorded pre-tax stock-based compensation expense for the three months ended March31, 2010 and 2009 as follows: ThreeMonthsEnded March31, 2010(a) 2009(a) (in millions) Stock Options $ 2 $ 2 Phantom Awards 8 7 Performance Awards 6 4 Total $ 16 $ 13 (a) Excludes stock-based compensation cost capitalized of $1 million for each of the three months ended March31, 2010 and 2009. The tax benefit associated with the recorded expense for the three months ended March31, 2010 and 2009 was $6 million and $5 million, respectively. |
Employee Benefit Obligations
Employee Benefit Obligations | |
3 Months Ended
Mar. 31, 2010 | |
Employee Benefit Obligations | 13. Employee Benefit Obligations Net periodic benefit costs disclosed in the tables below for the qualified pension, non-qualified pension and other post-retirement benefit plans represent the cost of the respective benefit plan to the Duke Energy Registrants for the periods presented. However, portions of the net periodic benefit costs disclosed in the tables below have been capitalized as a component of property, plant and equipment. Duke Energy The following table shows the components of the net periodic benefit costs for the Duke Energy U.S. qualified and non-qualified pension plans and other post-retirement benefit plans. Three Months Ended March31, 2010 Three Months Ended March31, 2009 Qualified pension plans(a) Non- Qualified pension plans Other Post- Retirement Benefit plans(b) Qualified pension plans(a) Non- Qualified pension plans Other Post- Retirement Benefit plans(b) (in millions) Service cost $ 24 $ 1 $ 2 $ 20 $ $ 2 Interest cost on benefit obligation 62 2 9 65 3 11 Expected return on plan assets (94 ) (4 ) (91 ) (4 ) Amortization of prior service cost/(credit) 1 1 (3 ) 2 1 (2 ) Amortization of net transition liability 2 3 Amortization of loss/(gain) 12 1 1 (1 ) Contractual termination benefit cost 10 Other 5 4 Net periodic costs $ 20 $ 4 $ 7 $ 1 $ 4 $ 9 (a) Excludes regulatory asset amortization of $4 million and $3 million for the three months ended March31, 2010 and 2009, respectively, resulting from purchase accounting adjustments associated with Duke Energys merger with Cinergy in April 2006. (b) Excludes regulatory asset amortization of $2 million for each of the three months ended March31, 2010 and 2009, respectively, resulting from purchase accounting adjustments associated with Duke Energys merger with Cinergy in April 2006. Duke Energys policy is to fund amounts on an actuarial basis to provide assets sufficient to meet benefit payments to be paid to plan participants. In February 2009, Duke Energy made an approximate $500 million cash contribution to its U.S. qualified pension plans. Each of the Subsidiary Registrants participate in qualified pension plans, non-qualified pension plans and other post-retirement benefit plans sponsored by Duke Energy. The net periodic benefit costs shown in the tables below represent the allocated cost of the respective benefit plan for the periods presented. Additionally, the Subsidiary Registrants are allocated their proportionate share of pension and other post-retirement benefit cost for employees of Duke Energys shared services affiliate that provide support to the respective subsidiary registrant. These allocated amounts are included in the governance and shared services costs for each subsidiary registran |
Severance
Severance | |
3 Months Ended
Mar. 31, 2010 | |
Severance | 14. Severance In January 2010, Duke Energy announced plans to offer a voluntary severance plan to approximately 8,750 eligible employees. As this is a voluntary plan, all severance benefits offered under this plan are considered special termination benefits under GAAP. Special termination benefits are measured upon employee acceptance and recorded immediately absent a significant retention period. If a significant retention period exists, the cost of the special termination benefits are recorded ratably over the remaining service periods of the affected employees. The window for employees to request to voluntarily end their employment under this plan opened on February3, 2010 and closed on February24, 2010 for approximately 8,400 eligible employees. Also in January 2010, Duke Energy announced that it will consolidate certain corporate office functions, resulting in transitioning over the next two years of approximately 350 positions from its offices in the Midwest to its corporate headquarters in Charlotte, North Carolina. Employees who do not relocate have the option to elect to participate in the voluntary plan discussed above, find a regional position within Duke Energy or remain with Duke Energy through a transition period, at which time a severance benefit would be paid under Duke Energys ongoing severance plan. For employees affected by the consolidation of Duke Energys corporate functions in Charlotte, North Carolina, the window closed March31, 2010. Approximately 900 employees accepted the voluntary severance program. At March31, 2010, total estimated cost associated with the voluntary severance program and office consolidation is $180 million. Of this amount, Duke Energy recorded expenses of $68 million during the first quarter of 2010, of which $41 million was recorded by Duke Energy Carolinas, $10 million was recorded by Duke Energy Ohio and $10 million was recorded by Duke Energy Indiana. As certain employees who accepted the voluntary severance program have significant retention periods, the remaining costs will be recognized ratably over the remaining service period of the employees, with the substantial majority of the remaining costs to be recognized throughout the remainder of 2010. There were no cash payments associated with this voluntary severance program during the first quarter of 2010. Additionally, Duke Energy believes that it is possible that the voluntary severance plan may trigger settlement accounting or curtailment accounting with respect to its pension and other post-retirement benefit plans. At this time, management is unable to determine the likelihood that settlement or curtailment accounting will be triggered. |
Income Taxes and Other Taxes
Income Taxes and Other Taxes | |
3 Months Ended
Mar. 31, 2010 | |
Income Taxes and Other Taxes | 15. Income Taxes and Other Taxes Duke Energy or its subsidiaries file income tax returns in the U.S. with federal and various state governmental authorities, and in certain foreign jurisdictions. The taxable income of Duke Energy and its subsidiaries is reflected in Duke Energys U.S. federal and state income tax returns. These subsidiaries have a tax sharing agreement with Duke Energy where the separate return method is used to allocate tax expenses and benefits to the subsidiaries whose investments or results of operations provide these tax expenses and benefits. The accounting for income taxes essentially represents the income taxes that each of these subsidiaries would incur if it were a separate company filing its own tax return as a C-Corporation. Duke Energy. At March31, 2010 and December31, 2009, Duke Energy had unrecognized tax benefits of $663 million and $664 million, respectively. Of the amount of unrecognized tax benefits at March31, 2010, $303 million, if recognized, would affect the effective tax rate or a regulatory liability; however, Duke Energy is currently unable to estimate the specific effect to either. At March31, 2010, Duke Energy had $12 million that, if recognized, would be recorded as a component of discontinued operations. It is reasonably possible that Duke Energy will reflect a $350 million reduction in unrecognized tax benefits within the next 12 months due to expected settlements. Duke Energy Carolinas. At March31, 2010 and December31, 2009, Duke Energy Carolinas had unrecognized tax benefits of $516 million and $517 million, respectively. Of the amount of unrecognized tax benefits at March31, 2010, $286 million, if recognized, would affect the effective tax rate or a regulatory liability; however, Duke Energy Carolinas is currently unable to estimate the specific effect to either. It is reasonably possible that Duke Energy Carolinas will reflect a $300 million reduction in unrecognized tax benefits within the next 12 months due to expected settlements. Duke Energy Ohio. At both March31, 2010 and December31, 2009, Duke Energy Ohio had unrecognized tax benefits of $32 million. Of the amount of unrecognized tax benefits at March31, 2010, no portion of the total unrecognized tax benefits, if recognized, would affect the effective tax rate. It is reasonably possible that Duke Energy Ohio will reflect an $18 million reduction in unrecognized tax benefits within the next 12 months due to expected settlements. Duke Energy Indiana. At both March31, 2010 and December31, 2009, Duke Energy Indiana had unrecognized tax benefits of $28 million. Of the amount of unrecognized tax benefits at March31, 2010, no portion of the total unrecognized tax benefits, if recognized, would affect the effective tax rate. It is reasonably possible that Duke Energy Indiana will reflect a $14 million reduction in unrecognized tax benefits within the next 12 months due to expected settlements. Duke Energy and its subsidiaries are no longer subject to U.S. federal examination for years before 1999. Management expects years 1999 through 2003 will be submitted to Joint Committee on Taxation for final review in the second quarte |
Related Party Transactions
Related Party Transactions | |
3 Months Ended
Mar. 31, 2010 DUKE ENERGY OHIO, INC. | |
DUKE ENERGY OHIO, INC. | |
Related Party Transactions | 16. Related Party Transactions Duke Energy Carolinas Duke Energy Carolinas engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March31, 2010 and December31, 2009 are as follows: Assets/(Liabilities) March31, 2010(a) December31, 2009(a) (inmillions) Current assets(b) $ 127 $ 149 Non-current assets(c) 38 34 Current liabilities(d) (255 ) (177 ) Non-current liabilities(e) (16 ) Net deferred tax liabilities(f) (3,159 ) (3,025 ) (a) Balances exclude assets or liabilities associated with money pool arrangements as discussed below. (b) Of the balance at March31, 2010, $2 million is classified as Receivables and $125 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. The balance at December31, 2009 is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. (c) The balances at March31, 2010 and December31, 2009 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets. (d) Of the balance at March31, 2010, $(214) million is classified as Accounts payable and $(41) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets. Of the balance at December31, 2009, $(170) million is classified as Accounts payable and $(7) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets. (e) The balance at December31, 2009 is classified as Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets. (f) Of the balance at March31, 2010, $(3,253) million is classified as Deferred income taxes and $94 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December31, 2009, $(3,087) million is classified as Deferred income taxes and $62 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Duke Energy Carolinas is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. During the three months ended March31, 2010 and 2009, Duke Energy Carolinas recorded governance and shared services expenses of $234 million and $191 million, respectively, which are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Operations. Duke Energy Carolinas incurs expenses related to certain indemnification coverages through Bison Insurance Company Limited, Duke Energys wholly-owned captive insurance subsidiary. These amounts were $6 million and $7 million for the three months ended Mar |
DUKE ENERGY CAROLINAS, LLC | |
Related Party Transactions | 16. Related Party Transactions Duke Energy Carolinas Duke Energy Carolinas engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March31, 2010 and December31, 2009 are as follows: Assets/(Liabilities) March31, 2010(a) December31, 2009(a) (inmillions) Current assets(b) $ 127 $ 149 Non-current assets(c) 38 34 Current liabilities(d) (255 ) (177 ) Non-current liabilities(e) (16 ) Net deferred tax liabilities(f) (3,159 ) (3,025 ) (a) Balances exclude assets or liabilities associated with money pool arrangements as discussed below. (b) Of the balance at March31, 2010, $2 million is classified as Receivables and $125 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. The balance at December31, 2009 is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. (c) The balances at March31, 2010 and December31, 2009 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets. (d) Of the balance at March31, 2010, $(214) million is classified as Accounts payable and $(41) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets. Of the balance at December31, 2009, $(170) million is classified as Accounts payable and $(7) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets. (e) The balance at December31, 2009 is classified as Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets. (f) Of the balance at March31, 2010, $(3,253) million is classified as Deferred income taxes and $94 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December31, 2009, $(3,087) million is classified as Deferred income taxes and $62 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Duke Energy Carolinas is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. During the three months ended March31, 2010 and 2009, Duke Energy Carolinas recorded governance and shared services expenses of $234 million and $191 million, respectively, which are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Operations. Duke Energy Carolinas incurs expenses related to certain indemnification coverages through Bison Insurance Company Limited, Duke Energys wholly-owned captive insurance subsidiary. These amounts were $6 million and $7 million for the three months ended Mar |
DUKE ENERGY INDIANA, INC. | |
Related Party Transactions | 16. Related Party Transactions Duke Energy Carolinas Duke Energy Carolinas engages in related party transactions, which are generally performed at cost and in accordance with the applicable state and federal commission regulations. Balances due to or due from related parties included in the Condensed Consolidated Balance Sheets as of March31, 2010 and December31, 2009 are as follows: Assets/(Liabilities) March31, 2010(a) December31, 2009(a) (inmillions) Current assets(b) $ 127 $ 149 Non-current assets(c) 38 34 Current liabilities(d) (255 ) (177 ) Non-current liabilities(e) (16 ) Net deferred tax liabilities(f) (3,159 ) (3,025 ) (a) Balances exclude assets or liabilities associated with money pool arrangements as discussed below. (b) Of the balance at March31, 2010, $2 million is classified as Receivables and $125 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. The balance at December31, 2009 is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. (c) The balances at March31, 2010 and December31, 2009 are classified as Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets. (d) Of the balance at March31, 2010, $(214) million is classified as Accounts payable and $(41) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets. Of the balance at December31, 2009, $(170) million is classified as Accounts payable and $(7) million is classified as Taxes accrued on the Condensed Consolidated Balance Sheets. (e) The balance at December31, 2009 is classified as Other within Deferred Credits and Other Liabilities on the Condensed Consolidated Balance Sheets. (f) Of the balance at March31, 2010, $(3,253) million is classified as Deferred income taxes and $94 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Of the balance at December31, 2009, $(3,087) million is classified as Deferred income taxes and $62 million is classified as Other within Current Assets on the Condensed Consolidated Balance Sheets. Duke Energy Carolinas is charged its proportionate share of corporate governance and other costs by an unconsolidated affiliate that is a consolidated affiliate of Duke Energy. Corporate governance and other shared services costs are primarily related to human resources, employee benefits, legal and accounting fees, as well as other third party costs. During the three months ended March31, 2010 and 2009, Duke Energy Carolinas recorded governance and shared services expenses of $234 million and $191 million, respectively, which are recorded in Operation, Maintenance and Other within Operating Expenses on the Condensed Consolidated Statements of Operations. Duke Energy Carolinas incurs expenses related to certain indemnification coverages through Bison Insurance Company Limited, Duke Energys wholly-owned captive insurance subsidiary. These amounts were $6 million and $7 million for the three months ended Mar |
New Accounting Standards
New Accounting Standards | |
3 Months Ended
Mar. 31, 2010 | |
New Accounting Standards | 17. New Accounting Standards The following new accounting standards were adopted by the Duke Energy Registrants subsequent to March31, 2009 and the impact of such adoption, if applicable, has been presented in the respective Condensed Consolidated Financial Statements of the Duke Energy Registrants: Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 860Transfers and Servicing (ASC 860). In June 2009, the FASB issued revised accounting guidance for transfers and servicing of financial assets and extinguishment of liabilities, to require additional information about transfers of financial assets, including securitization transactions, as well as additional information about an enterprises continuing exposure to the risks related to transferred financial assets. This revised accounting guidance eliminates the concept of a qualifying special-purpose entity (QSPE) and requires those entities which were not subject to consolidation under previous accounting rules to now be assessed for consolidation. In addition, this accounting guidance clarifies and amends the derecognition criteria for transfers of financial assets (including transfers of portions of financial assets) and requires additional disclosures about a transferors continuing involvement in transferred financial assets. For Duke Energy, this revised accounting guidance is effective prospectively for transfers of financial assets occurring on or after January1, 2010, and early adoption of this statement is prohibited. Since 2002, Duke Energy Ohio, Duke Energy Indiana, and Duke Energy Kentucky have sold, on a revolving basis, nearly all of their accounts receivable and related collections through Cinergy Receivables, a bankruptcy-remote QSPE. The securitization transaction was structured to meet the criteria for sale accounting treatment, and accordingly, Duke Energy did not consolidate Cinergy Receivables, and the transfers have been accounted for as sales. Effective with adoption of this revised accounting guidance and ASC 810-Consolidation (ASC 810), as discussed below, the accounting treatment and/or financial statement presentation of Duke Energys accounts receivable securitization programs was impacted as Duke Energy began consolidating Cinergy Receivables effective January1, 2010. Duke Energy Ohios and Duke Energy Indianas sales of accounts receivable and related financial statement presentation was not impacted by the adoption of ASC 860. See Note 10 for additional information. ASC 810. InJune 2009, the FASB amended existing consolidation accounting guidance to eliminate the exemption from consolidation for QSPEs, and clarified, but did not significantly change, the criteria for determining whether an entity meets the definition of a VIE. This revised accounting guidance also requires an enterprise to qualitatively assess the determination of the primary beneficiary of a VIE based on whether that enterprise has both the power to direct matters that most significantly impact the activities of a VIE and the obligation to absorb losses or the right to receive benefits of a VIE that could potentially be significant to a VIE. In addition, thi |
Subsequent Events
Subsequent Events | |
3 Months Ended
Mar. 31, 2010 | |
Subsequent Events | 18. Subsequent Events For information on subsequent events related to regulatory matters, commitments and contingencies, and debt and credit facilities, see Notes 3, 4 and 5, respectively. |