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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2012
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

22. STOCK-BASED COMPENSATION

For employee awards, equity classified stock-based compensation cost is measured at the service inception date or the grant date, based on the estimated achievement of certain performance metrics or 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's 2010 Long-Term Incentive Plan (the 2010 Plan) reserved 25 million shares of common stock for awards to employees and outside directors. The 2010 Plan supersedes the 2006 Long-Term Incentive Plan, as amended (the 2006 Plan), and no additional grants will be made from the 2006 Plan. Under the 2010 Plan, the exercise price of each option granted cannot be less than the market price of Duke Energy's common stock on the date of grant and the maximum option term is 10 years. The vesting periods range from immediate to three years. Duke Energy has historically issued new shares upon exercising or vesting of share-based awards. In 2013, Duke Energy may use a combination of new share issuances and open market repurchases for share-based awards that are exercised or become vested; however, Duke Energy has not determined with certainty the amount of such new share issuances or open market repurchases.

The 2010 Plan allows for a maximum of 6.25 million shares of common stock to be issued under various stock-based awards other than options and stock appreciation rights.

In connection with the acquisition of Progress Energy in July 2012, Duke Energy assumed Progress Energy's 1997 Equity Incentive Plan (EIP), which was continued under the 2002 and 2007 EIPs, as amended and restated from time to time. Stock-based awards granted under the Progress Energy EIPs and held by Progress Energy employees were generally converted into outstanding Duke Energy stock-based compensation awards with the estimated fair value of the awards allocated to purchase price determined to be $62 million. Refer to Note 2 for further information regarding the merger transaction.

Stock-Based Compensation Expense

The following table summarizes the total expense recognized by each of the Duke Energy Registrants, net of tax, for stock-based compensation.

  Years Ended December 31,
(in millions)2012 2011 2010
Duke Energy$ 48 $ 32 $ 41
Duke Energy Carolinas  12   17   23
Progress Energy  25   20   16
Progress Energy Carolinas  16   12   10
Progress Energy Florida  9   8   7
Duke Energy Ohio  4   6   7
Duke Energy Indiana  4   4   6

Duke Energy Plans

Pre-tax stock-based compensation costs, tax benefit associated with stock-based compensation expense, and the amount of stock-based compensation costs capitalized related to the Duke Energy plans are included in the following table.

  Years Ended December 31,
(in millions)2012 2011 2010
Stock Options$ 2 $ 2 $ 2
Restricted Stock Unit Awards  43   27   26
Performance Awards  33   23   39
Total$ 78 $ 52 $ 67
Tax benefit associated with stock-based compensation expense$ 30 $ 20 $ 26
Stock-based compensation costs capitalized  2   2   4

Stock Option Activity           
  Options (in thousands) Weighted-Average Exercise Price Weighted-Average Remaining Life (in years) Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2011  2,089 $46      
 Progress Energy transfers in(a)  94  50      
 Granted  340  63      
 Exercised  (580)  36      
 Forfeited or expired  (289)  65      
Outstanding at December 31, 2012  1,654  51  6.3 $22
Exercisable at December 31, 2012  953  45  4.8  17
Options expected to vest  701  58  8.5  4
             
(a)Progress Energy had an insignificant number of stock options outstanding as of and for the years ended December 31, 2011 and 2010.

On December 31, 2011 and 2010, Duke Energy had 1 million and 4 million exercisable options, respectively, with a weighted-average exercise price of $45 and $51, respectively. The options granted in 2012 and 2011 were expensed immediately; therefore, there is no future compensation cost associated with these options. The following table includes information related to Duke Energy's stock options.

  Years Ended December 31,
(in millions)2012 2011 2010
Intrinsic value of options exercised$17 $26 $8
Tax benefit related to options exercised 7  10  3
Cash received from options exercised 21  74  14
Stock options granted (in thousands) 340  358  368

 The following assumptions were used to determine the grant date fair value of the stock options granted in 2012. 
      
Weighted-Average Assumptions for Option Pricing    
Risk-free interest rate(a)  1.1%
Expected dividend yield(b)  5.1%
Expected life(c) 6years 
Expected volatility(d)  18.8%
      
(a)The risk-free rate is based upon the average of 5-year and 7-year U.S. Treasury Constant Maturity rates as of the grant date. 
(b)The expected dividend yield is based upon the most recent annualized dividend and the 1-year average closing stock price. 
(c)The expected life of options is derived from the simplified method approach. 
(d)Volatility is based upon 50% historical and 50% implied volatility. Historic volatility is based on Duke Energy's historical volatility over the expected life using daily stock prices. Implied volatility is the average for all option contracts with a term greater than six months using the strike price closest to the stock price on the valuation date. 

Restricted Stock Unit Awards

Restricted stock unit awards issued and outstanding under the 2010 Plan and the 2006 Plan generally vest over periods from immediate to three years. The following table includes information related to Duke Energy's restricted stock unit awards.

  Years Ended December 31,
  2012 2011 2010
Shares awarded (in thousands)  443   636   349
Fair value (in millions)(a)$ 28 $ 34 $ 17
          
(a)Based on the market price of Duke Energy's common stock at the grant date.

 The following table summarizes information about restricted stock unit awards outstanding.
        
   Shares (in thousands) Weighted-Average Per Share Grant Date Fair Value
Outstanding at December 31, 2011   856 $ 51
 Progress Energy transfers in   988   70
 Granted   443   63
 Vested   (608)   56
 Forfeited   (72)   64
Outstanding at December 31, 2012   1,607   64
Restricted stock unit awards expected to vest   1,567   64

The total grant date fair value of the shares vested during the years ended December 31, 2012, 2011 and 2010 was $34 million, $19 million and $29 million, respectively. At December 31, 2012, Duke Energy had $37 million of unrecognized compensation cost which is expected to be recognized over a weighted-average period of 1.9 years.

Performance Awards

Stock-based awards issued and outstanding under the 2010 Plan and the 2006 Plan generally vest over three years if performance targets are met. Vesting for certain stock-based performance awards can occur in three years, at the earliest, if performance is met. Certain performance awards granted in 2012, 2011 and 2010 contain market conditions based on the total shareholder return (TSR) of Duke Energy stock relative to a pre-defined peer group (relative TSR). These awards are valued using a path-dependent model that incorporates expected relative TSR into the fair value determination of Duke Energy's performance-based share awards. The model uses three-year historical volatilities and correlations for all companies in the pre-defined peer group, including Duke Energy, to simulate Duke Energy's relative TSR as of the end of the performance period. For each simulation, Duke Energy's relative TSR associated with the simulated stock price at the end of the performance period plus expected dividends within the period results in a value per share for the award portfolio. The average of these simulations is the expected portfolio value per share. Actual life to date results of Duke Energy's relative TSR for each grant is incorporated within the model. Other performance awards not containing market conditions were awarded in 2012, 2011 and 2010. The performance goal for the awards is Duke Energy's return on equity over a three-year period. Awards are measured at grant date price. The following table includes information related to Duke Energy's performance awards.

  Years Ended December 31,
  2012 2011 2010
Shares awarded (in thousands)  352   432   912
Fair value (in millions)(a)$ 19 $ 20 $ 38
          
(a)Based on the market price of Duke Energy's common stock at the grant date.

 The following table summarizes information about stock-based performance awards outstanding at the maximum level.
        
   Shares (in thousands) Weighted-Average Per Share Grant Date Fair Value
Number of stock-based performance awards:      
Outstanding at December 31, 2011   2,123 $ 42
 Progress Energy transfers in   1,548   50
 Granted   352   54
 Vested   (1,009)   56
 Forfeited   (668)   48
Outstanding at December 31, 2012   2,346   47
Stock-based performance awards expected to vest   2,132   48

The total grant date fair value of the shares vested during the years ended December 31, 2012, 2011 and 2010 was $56 million, $33 million and $15 million, respectively. At December 31, 2012, Duke Energy had $25 million of unrecognized compensation cost, which is expected to be recognized over a weighted-average period of 1.6 years.

Progress Energy Plans

Pre-tax stock-based compensation expense and tax benefit associated with stock-based compensation expense related to former Progress Energy plans, including those that were converted to Duke plans upon the merger, recorded to Progress Energy, Progress Energy Carolinas, and Progress Energy Florida are included in the following table. No stock-based compensation costs were capitalized during any of the periods presented.

  Years Ended December 31,
(in millions)2012 2011 2010
Restricted stock unit awards$ 27 $ 24 $ 21
Performance awards  12   9   6
Total$ 39 $ 33 $ 27
Tax benefit associated with stock-based compensation expense$ 15 $ 13 $ 11