Condensed Consolidating Statements

9 Months Ended

Sep. 30, 2012

Condensed Consolidating Statements Disclosure [Abstract]

17. CONDENSED CONSOLIDATING STATEMENTS

As discussed in Note 23 in the 2011 Form 10-K, we have guaranteed certain payments of two 100 percent owned indirect subsidiaries, FPC Capital I Trust and Florida Progress Funding Corporation (Funding Corp.). Our guarantees are joint and several, full and unconditional and are in addition to the joint and several, full and unconditional guarantees issued to these entities by Florida Progress. Our subsidiaries have provisions restricting the payment of dividends to the Parent in certain limited circumstances, and as disclosed in Note 12B in the 2011 Form 10-K, there were no restrictions on PEC's or PEF's retained earnings.

The Trust is a VIE of which we are not the primary beneficiary. Separate financial statements and other disclosures concerning this VIE have not been presented because we believe that such information is not material to investors.

Presented below are the condensed consolidating Statements of Operations and Comprehensive Income, Balance Sheets and Statements of Cash Flows as required by Rule 3-10 of Regulation S-X. In these condensed consolidating statements, the Parent column includes the financial results of the parent holding company only. The Subsidiary Guarantor column includes the consolidated financial results of Florida Progress only, which is primarily comprised of its wholly owned subsidiary PEF. The Non-guarantor Subsidiaries column includes the consolidated financial results of all non-guarantor subsidiaries, which is primarily comprised of our wholly owned subsidiary PEC. The Other column includes elimination entries for all intercompany transactions and other consolidation adjustments. Financial statements for PEC and PEF are separately presented elsewhere in this Form 10-Q. All applicable corporate expenses have been allocated appropriately among the guarantor and non-guarantor subsidiaries. The financial information may not necessarily be indicative of results of operations or financial position had the Subsidiary Guarantor or other non-guarantor subsidiaries operated as independent entities.

Condensed Consolidating Statement of Operations and Comprehensive Income
Three months ended September 30, 2012
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Operating revenues
	Regulated electric		$	0	$	1,382	$	1,394	$	(1)	$	2,775
	Non-regulated electric and other			0		10		4		(1)		13
		Total operating revenues		0		1,392		1,398		(2)		2,788
Operating expenses
	Fuel used in electric generation and purchased power			0		799		597		0		1,396
	Operation, maintenance and other			0		247		378		1		626
	Depreciation and amortization			0		39		135		0		174
	Property and other taxes			0		100		63		(3)		160
	Impairment charges			0		0		55		0		55
		Total operating expenses		0		1,185		1,228		(2)		2,411
Gains on sales of other assets and other, net				0		1		1		0		2
Operating income				0		208		171		0		379
Equity in earnings of consolidated subsidiaries				203		0		0		(203)		0
Other income and expenses, net				(1)		12		23		(2)		32
Interest expense, net				63		67		53		(1)		182
Income from continuing operations before income taxes				139		153		141		(204)		229
Income tax (benefit) expense from continuing operations				(16)		55		43		(7)		75
Income from continuing operations				155		98		98		(197)		154
Income from discontinued operations, net of tax				0		2		1		0		3
Net income				155		100		99		(197)		157
Less: Net income attributable to noncontrolling interests				0		1		0		1		2
Net income attributable to Duke Energy Corporation			$	155	$	99	$	99	$	(198)	$	155
Comprehensive income, net of tax
	Comprehensive income		$	253	$	118	$	170	$	(286)	$	255
	Comprehensive income attributable to noncontrolling interests, net of tax			0		(1)		0		(1)		(2)
		Comprehensive income attributable to Duke Energy Corporation	$	253	$	117	$	170	$	(287)	$	253

Condensed Consolidating Statement of Operations and Comprehensive Income
Three months ended September 30, 2011
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Operating revenues
	Regulated electric		$	0	$	1,414	$	1,330	$	(1)	$	2,743
	Non-regulated electric and other			0		9		2		(1)		10
		Total operating revenues		0		1,423		1,332		(2)		2,753
Operating expenses
	Fuel used in electric generation and purchased power			0		690		544		0		1,234
	Operation, maintenance and other			2		225		265		2		494
	Depreciation and amortization			0		39		136		0		175
	Property and other taxes			0		106		58		0		164
		Total operating expenses		2		1,060		1,003		2		2,067
Gains on sales of other assets and other, net				0		1		0		0		1
Operating (loss) income				(2)		364		329		(4)		687
Equity in earnings of consolidated subsidiaries				391		0		0		(391)		0
Other income and expenses, net				(63)		2		14		3		(44)
Interest expense, net				80		52		41		(1)		172
Income from continuing operations before income taxes				246		314		302		(391)		471
Income tax (benefit) expense from continuing operations				(45)		116		103		4		178
Income from continuing operations				291		198		199		(395)		293
Income (loss) from discontinued operations, net of tax				0		1		(1)		0		0
Net income				291		199		198		(395)		293
Less: Net income attributable to noncontrolling interests				0		1		0		1		2
Net income attributable to Duke Energy Corporation			$	291	$	198	$	198	$	(396)	$	291
Comprehensive income, net of tax
	Comprehensive income		$	226	$	182	$	165	$	(345)	$	228
	Comprehensive income attributable to noncontrolling interests, net of tax			0		(1)		0		(1)		(2)
		Comprehensive income attributable to Duke Energy Corporation	$	226	$	181	$	165	$	(346)	$	226

Condensed Consolidating Statement of Operations and Comprehensive Income
Nine months ended September 30, 2012
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Operating revenues
	Regulated electric		$	0	$	3,576	$	3,561	$	(2)	$	7,135
	Non-regulated electric and other			0		26		17		0		43
		Total operating revenues		0		3,602		3,578		(2)		7,178
Operating expenses
	Fuel used in electric generation and purchased power			0		1,849		1,450		0		3,299
	Operation, maintenance and other			4		668		1,120		6		1,798
	Depreciation and amortization			0		158		413		0		571
	Property and other taxes			0		272		175		(7)		440
	Impairment charges			0		0		55		0		55
		Total operating expenses		4		2,947		3,213		(1)		6,163
Gains on sales of other assets and other, net				0		2		2		0		4
Operating (loss) income				(4)		657		367		(1)		1,019
Equity in earnings of consolidated subsidiaries				489		0		0		(489)		0
Other income and expenses, net				8		32		58		(1)		97
Interest expense, net				193		210		157		0		560
Income from continuing operations before income taxes				300		479		268		(491)		556
Income tax (benefit) expense from continuing operations				(68)		177		88		(4)		193
Income from continuing operations				368		302		180		(487)		363
Income from discontinued operations, net of tax				0		10		0		0		10
Net income				368		312		180		(487)		373
Less: Net income attributable to noncontrolling interests				0		3		0		2		5
Net income attributable to Duke Energy Corporation			$	368	$	309	$	180	$	(489)	$	368
Comprehensive income, net of tax
	Comprehensive income		$	467	$	331	$	250	$	(576)	$	472
	Comprehensive income attributable to noncontrolling interests, net of tax			0		(3)		0		(2)		(5)
		Comprehensive income attributable to Duke Energy Corporation	$	467	$	328	$	250	$	(578)	$	467

Condensed Consolidating Statement of Operations and Comprehensive Income
Nine months ended September 30, 2011
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Operating revenues
	Regulated electric		$	0	$	3,639	$	3,524	$	(2)	$	7,161
	Non-regulated electric and other			0		24		11		0		35
		Total operating revenues		0		3,663		3,535		(2)		7,196
Operating expenses
	Fuel used in electric generation and purchased power			0		1,804		1,382		0		3,186
	Operation, maintenance and other			6		659		829		6		1,500
	Depreciation and amortization			0		112		396		0		508
	Property and other taxes			0		274		168		(5)		437
		Total operating expenses		6		2,849		2,775		1		5,631
Gains on sales of other assets and other, net				0		2		0		0		2
Operating (loss) income				(6)		816		760		(3)		1,567
Equity in earnings of consolidated subsidiaries				832		0		0		(832)		0
Other income and expenses, net				(59)		25		54		1		21
Interest expense, net				216		193		134		(1)		542
Income from continuing operations before income taxes				551		648		680		(833)		1,046
Income tax (benefit) expense from continuing operations				(100)		240		243		3		386
Income from continuing operations				651		408		437		(836)		660
Loss from discontinued operations, net of tax				0		(2)		(2)		0		(4)
Net income				651		406		435		(836)		656
Less: Net income attributable to noncontrolling interests				0		3		0		2		5
Net income attributable to Duke Energy Corporation			$	651	$	403	$	435	$	(838)	$	651
Comprehensive income, net of tax
	Comprehensive income		$	569	$	384	$	393	$	(772)	$	574
	Comprehensive income attributable to noncontrolling interests, net of tax			0		(3)		0		(2)		(5)
		Comprehensive income attributable to Duke Energy Corporation	$	569	$	381	$	393	$	(774)	$	569

Condensed Consolidating Balance Sheet
September 30, 2012
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
ASSETS
Current assets
	Cash and cash equivalents		$	0	$	38	$	19	$	0	$	57
	Receivables, net			0		435		495		0		930
	Notes receivable from affiliated companies			676		0		209		(885)		0
	Inventory			0		618		749		(1)		1,366
	Prepayments and other current assets			59		417		293		(96)		673
		Total current assets		735		1,508		1,765		(982)		3,026
Investments and other assets
	Nuclear decommissioning trust funds			0		621		1,223		0		1,844
	Investment in consolidated subsidiaries			14,171		0		0		(14,171)		0
	Goodwill			0		0		0		3,655		3,655
	Other			151		232		695		(546)		532
		Total investments and other assets		14,322		853		1,918		(11,062)		6,031
Net property, plant and equipment				0		10,885		13,126		156		24,167
Regulatory assets and deferred debits
	Regulatory assets			0		1,446		1,885		0		3,331
	Other			23		49		30		(6)		96
		Total regulatory assets and deferred debits		23		1,495		1,915		(6)		3,427
		Total assets	$	15,080	$	14,741	$	18,724	$	(11,894)	$	36,651
LIABILITIES AND EQUITY
Current liabilities
	Current maturities of long-term debt		$	0	$	435	$	403	$	0	$	838
	Notes payable to affiliated companies			843		431		246		(885)		635
	Other			75		1,120		1,164		(96)		2,263
		Total current liabilities		918		1,986		1,813		(981)		3,736
Long-term debt				3,992		4,237		4,435		0		12,664
Long-term debt, affiliate				0		309		0		(35)		274
Deferred credits and other liabilities
	Deferred income taxes			0		960		2,091		(542)		2,509
	Asset retirement obligations			0		514		1,623		0		2,137
	Regulatory liabilities			0		880		1,667		157		2,704
	Other			20		923		1,432		6		2,381
		Total deferred credits and other liabilities		20		3,277		6,813		(379)		9,731
Preferred stock of subsidiaries				0		34		59		0		93
Equity
	Common shareholders' equity			10,150		4,895		5,604		(10,499)		10,150
	Noncontrolling interests			0		3		0		0		3
		Total equity		10,150		4,898		5,604		(10,499)		10,153
Total liabilities and equity			$	15,080	$	14,741	$	18,724	$	(11,894)	$	36,651

Condensed Consolidating Balance Sheet
December 31, 2011
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
ASSETS
Current assets
	Cash and cash equivalents		$	117	$	92	$	21	$	0	$	230
	Receivables, net			0		367		516		0		883
	Notes receivable from affiliated companies			53		0		219		(272)		0
	Inventory			0		659		770		0		1,429
	Prepayments and other current assets			127		418		297		(64)		778
		Total current assets		297		1,536		1,823		(336)		3,320
Investments and other assets
	Nuclear decommissioning trust funds			0		559		1,088		0		1,647
	Investment in consolidated subsidiaries			14,043		0		0		(14,043)		0
	Goodwill			0		0		0		3,655		3,655
	Other			118		189		675		(478)		504
		Total investments and other assets		14,161		748		1,763		(10,866)		5,806
Net property, plant and equipment				0		10,455		11,677		160		22,292
Regulatory assets and deferred debits
	Regulatory assets			0		1,629		1,795		0		3,424
	Other			22		51		22		(6)		89
		Total regulatory assets and deferred debits		22		1,680		1,817		(6)		3,513
		Total assets	$	14,480	$	14,419	$	17,080	$	(11,048)	$	34,931
LIABILITIES AND EQUITY
Current liabilities
	Notes payable and commercial paper		$	250	$	233	$	188	$	0	$	671
	Current maturities of long-term debt			450		10		502		(1)		961
	Notes payable to affiliated companies			0		238		34		(272)		0
	Other			199		1,030		1,221		(63)		2,387
		Total current liabilities		899		1,511		1,945		(336)		4,019
Long-term debt				3,543		4,671		3,704		0		11,918
Long-term debt, affiliate				0		309		0		(36)		273
Deferred credits and other liabilities
	Deferred income taxes			0		757		1,903		(467)		2,193
	Asset retirement obligations			0		369		896		0		1,265
	Regulatory liabilities			0		1,024		1,543		160		2,727
	Other			17		1,012		1,384		5		2,418
		Total deferred credits and other liabilities		17		3,162		5,726		(302)		8,603
Preferred stock of subsidiaries				0		34		59		0		93
Equity
	Common shareholders' equity			10,021		4,728		5,646		(10,374)		10,021
	Noncontrolling interests			0		4		0		0		4
		Total equity		10,021		4,732		5,646		(10,374)		10,025
Total liabilities and equity			$	14,480	$	14,419	$	17,080	$	(11,048)	$	34,931

Condensed Consolidating Statement of Cash Flows
Nine months ended September 30, 2012
(in millions)		Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Net cash provided by operating activities		$	335	$	733	$	865	$	(483)	$	1,450
Investing activities
Capital expenditures			0		(573)		(1,122)		0		(1,695)
Purchases of available-for-sale securities			0		(562)		(385)		0		(947)
Proceeds from sales and maturities of available-for-sale securities			0		561		359		1		921
Notes due from affiliate			(624)		0		10		614		0
Other			24		13		75		0		112
Net cash used by investing activities			(600)		(561)		(1,063)		615		(1,609)
Financing activities
Proceeds from the:
	Issuance of long-term debt		444		0		988		0		1,432
	Issuance of common stock related to employee benefit plans		6		0		0		0		6
Payments for the redemption of long-term debt			(450)		(9)		(502)		0		(961)
Notes payable and commercial paper			(250)		(233)		(188)		0		(671)
Distributions to noncontrolling interests			0		(3)		0		(3)		(6)
Dividends paid			(445)		0		0		0		(445)
Dividends paid to parent			0		(173)		(310)		483		0
Notes payable to affiliate			843		193		212		(613)		635
Other			0		(1)		(4)		1		(4)
Net cash provided (used) by financing activities			148		(226)		196		(132)		(14)
Net decrease in cash and cash equivalents			(117)		(54)		(2)		0		(173)
Cash and cash equivalents at beginning of period			117		92		21		0		230
Cash and cash equivalents at end of period		$	0	$	38	$	19	$	0	$	57

Condensed Consolidating Statement of Cash Flows
Nine months ended September 30, 2011
(in millions)		Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Net cash provided by operating activities		$	659	$	664	$	863	$	(928)	$	1,258
Investing activities
Capital expenditures			0		(626)		(1,021)		0		(1,647)
Purchases of available-for-sale securities			0		(4,099)		(438)		0		(4,537)
Proceeds from sales and maturities of available-for-sale securities			0		4,101		408		0		4,509
Notes due from affiliate			(83)		22		(23)		84		0
Contributions to consolidated subsidiaries			(11)		0		0		11		0
Other			(6)		102		5		(1)		100
Net cash used by investing activities			(100)		(500)		(1,069)		94		(1,575)
Financing activities
Proceeds from the:
	Issuance of long-term debt		494		296		496		0		1,286
	Issuance of common stock related to employee benefit plans		42		0		0		0		42
Payments for the redemption of long-term debt			(700)		(309)		(1)		0		(1,010)
Notes payable and commercial paper			45		0		0		0		45
Distributions to noncontrolling interests			0		(4)		0		(2)		(6)
Dividends paid			(550)		0		0		0		(550)
Dividends paid to parent			0		(478)		(450)		928		0
Notes payable to affiliate			0		84		0		(84)		0
Contributions from parent			0		10		1		(11)		0
Other			0		1		(2)		3		2
Net cash (used) provided by financing activities			(669)		(400)		44		834		(191)
Net decrease in cash and cash equivalents			(110)		(236)		(162)		0		(508)
Cash and cash equivalents at beginning of period			110		270		231		0		611
Cash and cash equivalents at end of period		$	0	$	34	$	69	$	0	$	103