Goodwill, Intangible Assets & Impairments

3 Months Ended

Mar. 31, 2013

7. GOODWILL

GOODWILL
The following tables present goodwill by reportable operating segment for Duke Energy and Duke Energy Ohio.

Duke Energy

(in millions)		USFE&G		Commercial Power		International Energy		Total
Balance at December 31, 2012:
Goodwill		$	15,950	$	933	$	353	$	17,236
Accumulated impairment charges			―		(871)		―		(871)
Balance at December 31, 2012, as adjusted for accumulated impairment charges			15,950		62		353		16,365
Acquisitions ^(a)			10		2		(6)		6
Balance at March 31, 2013:
Goodwill			15,960		935		347		17,242
Accumulated impairment charges			―		(871)		―		(871)
Balance at March 31, 2013, as adjusted for accumulated impairment charges		$	15,960	$	64	$	347	$	16,371

(a)	Amounts represent purchase price adjustments related to the Progress Energy merger at USFE&G, a minor renewables acquisition at Commercial Power and the Ibener acquisition at International Energy. See Note 2 for further information on purchase price adjustments related to the Progress Energy Merger.

Duke Energy Ohio

(in millions)	Franchised Electric & Gas		Commercial Power		Total
Balance at December 31, 2012:
Goodwill	$	1,137	$	1,188	$	2,325
Accumulated impairment charges		(216)		(1,188)		(1,404)
Balance at December 31, 2012, as adjusted for accumulated impairment charges		921		―		921
Balance at March 31, 2013:
Goodwill		1,137		1,188		2,325
Accumulated impairment charges		(216)		(1,188)		(1,404)
Balance at March 31, 2013, as adjusted for accumulated impairment charges	$	921	$	―	$	921

Progress Energy

Progress Energy had Goodwill of $3,655 million within the Franchised Electric operating segment as of March 31, 2013 and December 31, 2012, for which there are no accumulated impairment charges.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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