Divestitures

12 Months Ended

Dec. 31, 2011

Disposal Groups Including Discontinued Operations Disclosure [Abstract]

Divestitures

4.DIVESTITURES

We have completed our business strategy of divesting nonregulated businesses to reduce our business risk and focus on core operations of the Utilities. Included in discontinued operations, net of tax are amounts related to adjustments of our prior sales of diversified businesses. These adjustments are generally due to guarantees and indemnifications provided for certain legal, tax and environmental matters. See Note 22C for further discussion of our guarantees. The ultimate resolution of these matters could result in additional adjustments in future periods. The information below presents the impacts of the divestitures on net income attributable to controlling interests.

A.TERMINALS OPERATIONSANDSYNTHETICFUELSBUSINESSES

Prior to 2008, we had substantial operations associated with the production of coal-based solid synthetic fuels as defined under Section 29 (Section 29) of the Code and as redesignated effective 2006 as Section 45K of the Code (Section 45K and, collectively, Section 29/45K). The production and sale of these products qualified for federal income tax credits so long as certain requirements were satisfied. As a result of the expiration of the tax credit program, all of our synthetic fuels businesses were abandoned and all operations ceased as of December 31, 2007.During 2008, we also sold coal terminals and docks in West Virginia and Kentucky. The accompanying consolidated financial statements reflect the operations of our terminal operations and synthetic fuels businesses as discontinued operations.

On October 21, 2009, a jury delivered a verdict in a lawsuit against Progress Energy and a number of our subsidiaries and affiliates. As a result, during the year ended December 31, 2009, we recorded an after-tax charge of $74 million to discontinued operations. See Note 22D for further discussion.

Results of coal terminals and docks and synthetic fuels businesses discontinued operations for the years ended December 31 were as follows:

(in millions)		2011		2010		2009
Loss before income taxes and noncontrolling interest	$	(8)	$	(11)	$	(125)
Income tax benefit, including tax credits		3		5		47
Loss from discontinued operations attributable to controlling interests	$	(5)	$	(6)	$	(78)

The total income tax benefit presented in the preceding table includes deferred income tax benefit (expense) of $28 million, $124 million and $(86) million for the years endedDecember 31, 2011, 2010 and 2009, respectively, related to synthetic fuels tax credits.

B.       OTHERDIVERSIFIEDBUSINESSES

Also included in discontinued operations are amounts related to adjustments of our prior sales of other diversified businesses.During the years ended December 31, 2011, 2010 and 2009, gains and losses related to post-closing adjustments and pre-divestiture contingenciesof other diversified businesses were not material to our results of operations.