Financial Information by Business Segment

12 Months Ended

Dec. 31, 2011

Financial Information By Business Segment Disclosure [Abstract]

Financial Information by Business Segment

20.FINANCIAL INFORMATION BY BUSINESS SEGMENT

Our reportable segments are PEC and PEF, both of which are primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina and South Carolina and in portions of Florida, respectively. These electric operations also distribute and sell electricity to other utilities, primarily on the east coast of the United States.

In addition to the reportable operating segments, the Corporate and Other segment includes the operations of the Parent and PESC and other miscellaneous nonregulated businesses that do not separately meet the quantitative thresholds for disclosure as separate reportable business segments.

Products and services are sold between the various reportable segments. All intersegment transactions are at cost.

In the following tables, capital and investment expenditures include property additions, acquisitions of nuclear fuel and other capital investments.

(in millions)			PEC		PEF	Corporate and Other			Eliminations		Total
At and for the year ended December 31, 2011
Revenues
	Unaffiliated	$	4,528	$	4,367	$	12	$	-	$	8,907
	Intersegment		-		2		272		(274)		-
	Total revenues		4,528		4,369		284		(274)		8,907
Depreciation, amortization and accretion			514		169		18		-		701
Interest income			1		1		22		(22)		2
Total interest charges, net			184		239		324		(22)		725
Income tax expense (benefit)(a)			268		311		(99)		-		480
Ongoing Earnings			541		530		(200)		-		871
Total assets			16,102		14,484		20,926		(16,453)		35,059
Capital and investment expenditures			1,423		710		17		-		2,150
At and for the year ended December 31, 2010
Revenues
	Unaffiliated	$	4,922	$	5,252	$	16	$	-	$	10,190
	Intersegment		-		2		248		(250)		-
	Total revenues		4,922		5,254		264		(250)		10,190
Depreciation, amortization and accretion			479		426		15		-		920
Interest income			3		1		31		(28)		7
Total interest charges, net			186		258		331		(28)		747
Income tax expense (benefit)(a)			342		267		(87)		-		522
Ongoing Earnings			618		462		(191)		-		889
Total assets			14,899		14,056		21,110		(17,011)		33,054
Capital and investment expenditures			1,382		991		33		(24)		2,382
At and for the year ended December 31, 2009
Revenues
	Unaffiliated	$	4,627	$	5,249	$	9	$	-	$	9,885
	Intersegment		-		2		234		(236)		-
	Total revenues		4,627		5,251		243		(236)		9,885
Depreciation, amortization and accretion			470		502		14		-		986
Interest income			5		4		38		(33)		14
Total interest charges, net			195		231		286		(33)		679
Income tax expense (benefit)(a)			295		209		(88)		-		416
Ongoing Earnings			540		460		(154)		-		846
Total assets			13,502		13,100		20,538		(15,904)		31,236
Capital and investment expenditures			962		1,532		21		(12)		2,503
(a)	Income tax expense (benefit) excludes the tax impact of Ongoing Earnings adjustments.

Management uses the non-GAAP financial measure “Ongoing Earnings” as a performance measure to evaluate the results of our segments and operations. Ongoing Earnings as presented here may not be comparable to similarly titled measures used by other companies. Ongoing Earnings is computed as GAAP net income attributable to controlling interests less discontinued operations and the effects of certain identified gains and charges, which are considered Ongoing Earnings adjustments. Some of the excluded gains and charges have occurred in more than one reporting period but are not considered representative of fundamental core earnings.Management has identified the following Ongoing Earnings adjustments: CVO mark-to-market adjustments because we are unable to predict changes in their fair value; CR3 indemnification charge (and subsequent adjustments, if any) for estimated future years' joint owner replacement power costs (through the expiration of the indemnification provisions of the joint owner agreement) because GAAP requires that the charge be accounted for in the period in which it becomes probable and estimable rather than the periods to which it relates; and the impact from changes in the tax treatment of the Medicare Part D subsidy because GAAP requires that the impact of the tax law change be accounted for in the period of enactment rather than the affected tax year. Additionally, management does not considerimpairments, charges (and subsequent adjustments, if any) recognized for the retirement of generating units prior to the end of their estimated useful lives, merger and integration costs, cumulative prior period adjustments, operating results of discontinued operations and the amount to be refunded to customers through the fuel clause included in the terms of the 2012 settlement agreement to be representative of our ongoing operations and excluded these items in computing Ongoing Earnings.

Reconciliations of consolidated Ongoing Earnings to net income attributable to controlling interestsfor the years ended December 31follow:

(in millions)			2011		2010		2009
Ongoing Earnings		$	871	$	889	$	846
CVO mark-to-market, net of tax benefit of $14 and $- (Note 16)			(45)		-		19
Impairment, net of tax benefit of $1, $4 and $1			(2)		(6)		(2)
Merger and integration costs, net of tax benefit of $17 (Note 2)			(46)		-		-
CR3 indemnification charge, net of tax benefit of $13 (Note 22C)			(20)		-		-
Plant retirement charge, net of tax benefit of $1, $1 and $11			(1)		(1)		(17)
Amount to be refunded to customers, net of tax benefit of $111 (Note 8C)			(177)		-		-
Change in tax treatment of the Medicare Part D subsidy (Note 17)			-		(22)		-
Cumulative prior period adjustment related to certain employee life insurance benefits, net of tax benefit of $7			-		-		(10)
Continuing income attributable to noncontrolling interests, net of tax			7		7		4
Income from continuing operations			587		867		840
Discontinued operations, net of tax			(5)		(4)		(79)
Net income attributable to noncontrolling interests, net of tax			(7)		(7)		(4)
	Net income attributable to controlling interests	$	575	$	856	$	757