XML 168 R23.htm IDEA: XBRL DOCUMENT

Employee Benefit Obligations

6 Months Ended

Jun. 30, 2013

14. EMPLOYEE BENEFIT PLANS

DEFINED BENEFIT RETIREMENT PLANS

Duke Energy and its subsidiaries (including legacy Progress Energy and Cinergy businesses) maintain, and the Subsidiary Registrants participate in, qualified, non-contributory defined benefit retirement plans. Duke Energy also maintains, and the Subsidiary Registrants participate in, non-qualified, non-contributory defined benefit retirement plans, which cover certain executives.

Net periodic benefit costs disclosed in the tables below for pension and other post-retirement benefit plans represent the cost of the respective benefit plan for the periods presented. However, portions of the net periodic benefit costs disclosed in the tables below have been capitalized as a component of property, plant and equipment.

Amounts presented in the tables below for the Subsidiary Registrants represent allocated amounts of pension and other post-retirement benefit cost for employees of the Subsidiary Registrants. Additionally, the Subsidiary Registrants are allocated their proportionate share of pension and post-retirement benefit cost for employees of Duke Energy's shared services affiliates that provide support to the Subsidiary Registrants. These allocated amounts are included in the governance and shared service costs discussed in Note 17.

QUALIFIED PENSION PLANS

The following tables include the components of net periodic pension costs for qualified pension plans.

		Three Months Ended June 30, 2013
(in millions)		Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Service cost		$	42	$	13	$	15	$	6	$	7	$	1	$	3
Interest cost on projected benefit obligation			80		20		29		12		14		6		7
Expected return on plan assets			(137)		(37)		(49)		(24)		(22)		(7)		(11)
Amortization of prior service credit			(3)		(1)		(1)		―		(1)		―		―
Amortization of actuarial loss			61		15		25		12		13		3		5
Other			1		―		―		―		―		―		―
Net periodic pension costs^(a)(b)		$	44	$	10	$	19	$	6	$	11	$	3	$	4

		Three Months Ended June 30, 2012
(in millions)		Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Service cost		$	22	$	8	$	16	$	7	$	7	$	1	$	3
Interest cost on projected benefit obligation			59		22		32		14		15		8		7
Expected return on plan assets			(94)		(37)		(47)		(23)		(20)		(11)		(11)
Amortization of prior service cost			2		1		2		2		―		―		―
Amortization of actuarial loss			25		12		24		10		12		3		4
Other			1		1		―		―		―		―		―
Net periodic pension costs^(a)(b)		$	15	$	7	$	27	$	10	$	14	$	1	$	3

(a)	Duke Energy amounts exclude $3 million and $4 million for the three months ended June 30, 2013 and 2012, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy.
(b)	Duke Energy Ohio amounts exclude $1 million for each of the three months ended June 30, 2013 and 2012, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy.


		Six Months Ended June 30, 2013
(in millions)		Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Service cost		$	84	$	25	$	30	$	11	$	15	$	3	$	6
Interest cost on projected benefit obligation			160		40		58		25		27		11		14
Expected return on plan assets			(274)		(74)		(99)		(47)		(44)		(15)		(22)
Amortization of prior service credit			(6)		(3)		(2)		―		(1)		―		―
Amortization of actuarial loss			122		30		50		23		25		6		11
Other			3		1		1		―		―		―		―
Net periodic pension costs^(a)(b)		$	89	$	19	$	38	$	12	$	22	$	5	$	9

		Six Months Ended June 30, 2012
(in millions)		Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Service cost		$	45	$	17	$	31	$	13	$	14	$	3	$	5
Interest cost on projected benefit obligation			120		45		63		28		28		16		15
Expected return on plan assets			(188)		(73)		(93)		(47)		(40)		(22)		(23)
Amortization of prior service cost			3		1		4		4		―		―		1
Amortization of actuarial loss			49		23		46		19		23		5		7
Other			2		1		―		―		―		―		―
Net periodic pension costs^(a)(b)		$	31	$	14	$	51	$	17	$	25	$	2	$	5

(a)	Duke Energy amounts exclude $6 million and $7 million for the six months ended June 30, 2013, and 2012, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy.
(b)	Duke Energy Ohio amounts exclude $3 million for each of the six months ended June 30, 2013, and 2012, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy.

NON-QUALIFIED PENSION PLANS

The following tables include the components of net periodic pension costs for non-qualified pension plans for registrants with non-qualified pension costs.

	Three Months Ended June 30, 2013
(in millions)	Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida
Service cost	$	1	$	―	$	―	$	―	$	―
Interest cost on projected benefit obligation		3		1		2		1		1
Amortization of actuarial loss		1		―		1		―		―
Net periodic pension costs	$	5	$	1	$	3	$	1	$	1

	Three Months Ended June 30, 2012
(in millions)	Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida
Interest cost on projected benefit obligation	$	1	$	1	$	2	$	1	$	1
Amortization of actuarial loss		1		―		1		―		―
Amortization of prior service cost		1		―		―		―		―
Net periodic pension costs	$	3	$	1	$	3	$	1	$	1


	Six Months Ended June 30, 2013
(in millions)	Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida
Service cost	$	1	$	―	$	―	$	―	$	―
Interest cost on projected benefit obligation		7		1		4		1		1
Amortization of actuarial loss		3		―		2		―		―
Amortization of prior service credit		(1)		―		(1)		―		―
Net periodic pension costs	$	10	$	1	$	5	$	1	$	1

	Six Months Ended June 30, 2012
(in millions)	Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida
Service cost	$	1	$	―	$	1	$	―	$	―
Interest cost on projected benefit obligation		3		1		4		1		1
Amortization of actuarial loss		1		―		2		―		―
Amortization of prior service cost		1		―		―		―		―
Net periodic pension costs	$	6	$	1	$	7	$	1	$	1

OTHER POST-RETIREMENT BENEFIT PLANS

Duke Energy and most of its subsidiaries provide, and the Subsidiary Registrants participate in, some health care and life insurance benefits for retired employees on a contributory and non-contributory basis. Employees are eligible for these benefits if they have met age and service requirements at retirement, as defined in the plans. The health care benefits include medical coverage, dental coverage, and prescription drug coverage and are subject to certain limitations, such as deductibles and co-payments.

The following tables include the components of net periodic other post-retirement benefit costs.


		Three Months Ended June 30, 2013
(in millions)		Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Service cost		$	7	$	―	$	5	$	3	$	2	$	―	$	―
Interest cost on accumulated post-retirement benefit obligation			18		3		12		6		4		1		2
Expected return on plan assets			(4)		(2)		―		―		―		―		―
Amortization of prior service credit			(3)		(2)		(1)		(1)		―		―		―
Amortization of actuarial loss (gain)			13		1		15		9		4		(1)		―
Net periodic costs^(a)		$	31	$	―	$	31	$	17	$	10	$	―	$	2

		Three Months Ended June 30, 2012
(in millions)		Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Service cost		$	1	$	―	$	4	$	2	$	1	$	―	$	―
Interest cost on accumulated post-retirement benefit obligation			9		4		11		6		4		―		2
Expected return on plan assets			(4)		(2)		―		―		―		―		(1)
Amortization of prior service (credit) cost			(2)		(1)		―		―		―		―		1
Amortization of net transition liability			2		2		1		―		1		―		―
Amortization of actuarial (gain) loss			(1)		―		9		6		3		―		(1)
Net periodic costs^(a)		$	5	$	3	$	25	$	14	$	9	$	―	$	1

(a)	Duke Energy amounts exclude $2 million for each of the three months ended June 30, 2013 and 2012, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy.

		Six Months Ended June 30, 2013
(in millions)		Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Service cost		$	14	$	1	$	11	$	6	$	4	$	―	$	―
Interest cost on accumulated post-retirement benefit obligation			36		6		23		12		8		1		3
Expected return on plan assets			(7)		(5)		―		―		―		―		―
Amortization of prior service credit			(6)		(4)		(1)		(1)		―		―		―
Amortization of actuarial loss (gain)			26		2		29		18		8		(1)		―
Net periodic pension costs^(a)(b)		$	63	$	―	$	62	$	35	$	20	$	―	$	3

		Six Months Ended June 30, 2012
(in millions)		Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
Service cost		$	3	$	1	$	7	$	4	$	3	$	―	$	―
Interest cost on accumulated post-retirement benefit obligation			17		8		21		11		9		1		4
Expected return on plan assets			(8)		(5)		(1)		―		(1)		―		(1)
Amortization of prior service (credit) cost			(4)		(2)		―		―		―		―		1
Amortization of net transition liability			4		3		2		―		2		―		―
Amortization of actuarial (gain) loss			(3)		1		15		8		5		(1)		(1)
Net periodic pension costs^(a)(b)		$	9	$	6	$	44	$	23	$	18	$	―	$	3

(a)	Duke Energy amounts exclude $4 million for each of the six months ended June 30, 2013 and 2012, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy.
(b)	Duke Energy Ohio amounts exclude $1 million for each of the six months ended June 30, 2013 and 2012, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy.

EMPLOYEE SAVINGS PLANS

Duke Energy and Progress Energy sponsor, and the Subsidiary Registrants participate in, employee savings plans that cover substantially all U.S. employees. Most employees participate in a matching contribution formula where Duke Energy provides a matching contribution generally equal to 100 percent of employee before-tax and Roth 401(k) contributions, and, as applicable, after-tax contributions, of up to 6 percent of eligible pay per pay period. Dividends on Duke Energy shares held by the savings plans are charged to retained earnings when declared and shares held in the plans are considered outstanding in the calculation of basic and diluted EPS.

Pretax employer matching contributions expensed by the Subsidiary Registrants were as follows.


(in millions)	Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
For the three months ended June 30,
2013	$	30	$	10	$	10	$	6	$	3	$	1	$	1
2012		19		9		10		6		3		1		1


(in millions)	Duke Energy		Duke Energy Carolinas		Progress Energy		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio		Duke Energy Indiana
For the six months ended June 30,
2013	$	71	$	24	$	22	$	12	$	7	$	2	$	3
2012		47		20		22		12		7		2		3

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

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