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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2013
Employee Benefit Plans [Abstract]  
Employee Benefit Plans

21. EMPLOYEE BENEFIT PLANS

DEFINED Benefit Retirement Plans

Duke Energy maintains, and the Subsidiary Registrants participate in, qualified, non-contributory defined benefit retirement plans. The plans cover most U.S. employees using a cash balance formula. Under a cash balance formula, a plan participant accumulates a retirement benefit consisting of pay credits based upon a percentage of current eligible earnings based on age and/or years of service and interest credits. Certain employees are covered under plans that use a final average earnings formula. As of January 1, 2014, these defined benefit plans are closed to new participants. Under these average earnings formulas, a plan participant accumulates a retirement benefit equal to the sum of percentages of their (i) highest three-year or four-year average earnings, (ii) highest three-year or four-year average earnings in excess of covered compensation per year of participation (maximum of 35 years), and/or (iii) highest three or four-year average earnings times years of participation in excess of 35 years. Duke Energy also maintains, and the Subsidiary Registrants participate in, non-qualified, non-contributory defined benefit retirement plans which cover certain executives.

Duke Energy uses a December 31 measurement date for its defined benefit retirement plan assets and obligations.

Net periodic benefit costs disclosed in the tables below 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 the amounts of pension and other post-retirement benefit cost allocated by Duke Energy 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 affiliate that provide support to the Subsidiary Registrants. These allocated amounts are included in the governance and shared service costs discussed in Note 13.

Duke Energy's policy is to fund amounts on an actuarial basis to provide assets sufficient to meet benefit payments to be paid to plan participants. The following table includes information related to the Duke Energy Registrants' contributions to its U.S. qualified defined benefit pension plans.

                      
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Anticipated Contributions:                    
2014$ 143 $ 42 $ 51 $ 21 $ 21 $ 4 $ 9
Contributions Made:                    
2013$ 250 $ — $ 250 $ 63 $ 133 $ — $ —
2012  304   —   346   141   128   —   —
2011  200   33   334   217   112   48   52
                      

QUALIFIED PENSION PLANS
                      
Components of Net Periodic Pension Costs
                      
  Year Ended December 31, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 167 $ 49 $ 60 $ 22 $ 30 $ 6 $ 11
Interest cost on projected benefit obligation  320   80   116   50   53   21   28
Expected return on plan assets  (549)   (148)   (199)   (94)   (87)   (31)   (46)
Amortization of actuarial loss  244   60   101   46   49   13   24
Amortization of prior service (credit) cost   (11)   (6)   (4)   (1)   (2)   ―   1
Other  7   2   2   1   1   ―   1
Net periodic pension costs(a)(b)$ 178 $ 37 $ 76 $ 24 $ 44 $ 9 $ 19
                      
  Year Ended December 31, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 122 $ 35 $ 63 $ 25 $ 30 $ 6 $ 9
Interest cost on projected benefit obligation  307   90   127   58   56   31   30
Expected return on plan assets  (472)   (146)   (188)   (96)   (81)   (45)   (46)
Amortization of actuarial loss  144   45   93   37   48   10   15
Amortization of prior service cost (credit)  10   1   9   8   (1)   1   1
Other  6   2   2   1   1   ―   ―
Net periodic pension costs(a)(b)$ 117 $ 27 $ 106 $ 33 $ 53 $ 3 $ 9
                      
  Year Ended December 31, 2011
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 96 $ 37 $ 51 $ 20 $ 24 $ 7 $ 11
Interest cost on projected benefit obligation  232   85   132   61   57   32   30
Expected return on plan assets  (384)   (150)   (182)   (91)   (78)   (44)   (45)
Amortization of actuarial loss  77   37   66   25   33   7   14
Amortization of prior service cost  6   1   7   6   ―   1   2
Other  18   7   ―   ―   ―   2   2
Net periodic pension costs(a)(b)$ 45 $ 17 $ 74 $ 21 $ 36 $ 5 $ 14
                      
(a)Duke Energy amounts exclude $12 million, $14 million and $14 million for the years ended December 2013, 2012, and 2011, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy in April 2006.
(b)Duke Energy Ohio amounts exclude $6 million, $6 million and $7 million for the years ended December 2013, 2012, and 2011, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy in April 2006.
                      

Amounts Recognized in Accumulated Other Comprehensive Income and Regulatory Assets
                      
  Year Ended December 31, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Regulatory assets, net decrease$ (788) $ (205) $ (253) $ (109) $ (146) $ (96) $ (99)
Accumulated other comprehensive (income) loss                    
Deferred income tax benefit$ 18 $ ― $ ― $ ― $ ― $ ― $ ―
Actuarial gains arising during the year  (33)   ―   (2)   ―   ―   ―   ―
Prior year service credit arising during the year  (1)   ―   ―   ―   ―   ―   ―
Amortization of prior year actuarial losses  (15)   ―   (3)   ―   ―   ―   ―
Reclassification of actuarial losses to regulatory assets  3   ―   ―   ―   ―   ―   ―
Net amount recognized in accumulated other comprehensive income$ (28) $ ― $ (5) $ ― $ ― $ ― $ ―
                      
  Year Ended December 31, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Regulatory assets, net increase (decrease)$ 976 $ (111) $ (76) $ (89) $ 23 $ 22 $ 17
Accumulated other comprehensive (income) loss                    
Deferred income tax benefit $ 14 $ ― $ ― $ ― $ ― $ 15 $ ―
Reclassification of actuarial losses to an affiliate  ―   ―   ―   ―   ―   (48)   ―
Actuarial (gains) losses arising during the year  (2)   ―   3   ―   ―   ―   ―
Prior year service credit arising during the year  (7)   ―   ―   ―   ―   ―   ―
Amortization of prior year actuarial losses  (13)   ―   (2)   ―   ―   (3)   ―
Reclassification of actuarial losses to regulatory assets  (20)   ―   ―   ―   ―   (1)   ―
Amortization of prior year service cost  (1)   ―   (1)   ―   ―   (1)   ―
Net amount recognized in accumulated other comprehensive income$ (29) $ ― $ ― $ ― $ ― $ (38) $ ―
                      

Reconciliation of Funded Status to Net Amount Recognized
                      
  Year Ended December 31, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Change in Projected Benefit Obligation                    
Obligation at prior measurement date$ 8,030 $ 2,028 $ 2,868 $ 1,264 $ 1,309 $ 527 $ 684
Service cost  167   49   60   22   30   6   11
Interest cost  320   80   116   50   53   21   28
Actuarial gains  (399)   (73)   (118)   (26)   (75)   (71)   (56)
Transfers  ―   (26)   (7)   (45)   (17)   (2)   (2)
Plan amendments  (41)   (13)   (19)   (8)   (7)   ―   ―
Benefits paid  (567)   (170)   (161)   (85)   (60)   (39)   (33)
Obligation at measurement date$ 7,510 $ 1,875 $ 2,739 $ 1,172 $ 1,233 $ 442 $ 632
Accumulated Benefit Obligation at measurement date$ 7,361 $ 1,875 $ 2,698 $ 1,172 $ 1,192 $ 429 $ 608
Change in Fair Value of Plan Assets                    
Plan assets at prior measurement date$ 7,754 $ 2,151 $ 2,647 $ 1,289 $ 1,150 $ 446 $ 627
Actual return on plan assets  705   207   215   108   93   43   62
Benefits paid  (567)   (170)   (161)   (85)   (60)   (39)   (33)
Transfers  ―   (26)   (7)   (45)   (17)   (2)   (2)
Employer contributions  250   ―   250   63   133   ―   ―
Plan assets at measurement date$ 8,142 $ 2,162 $ 2,944 $ 1,330 $ 1,299 $ 448 $ 654
Funded status of plan$ 632 $ 287 $ 205 $ 158 $ 66 $ 6 $ 22
                      
  Year Ended December 31, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Change in Projected Benefit Obligation                    
Obligation at prior measurement date$ 4,880 $ 1,831 $ 2,729 $ 1,263 $ 1,179 $ 627 $ 613
Obligation assumed from acquisition  2,850   ―   ―   ―   ―   ―   ―
Service cost  122   35   63   25   30   6   9
Interest cost  307   90   127   58   56   31   30
Actuarial losses  489   73   166   34   120   68   76
Transfers  ―   176   ―   ―   ―   (167)   ―
Plan amendments  (170)   (52)   (64)   (43)   (10)   ―   (1)
Benefits paid  (448)   (125)   (153)   (73)   (66)   (38)   (43)
Obligation at measurement date$ 8,030 $ 2,028 $ 2,868 $ 1,264 $ 1,309 $ 527 $ 684
Accumulated Benefit Obligation at measurement date$ 7,843 $ 2,028 $ 2,820 $ 1,264 $ 1,261 $ 501 $ 653
Change in Fair Value of Plan Assets                    
Plan assets at prior measurement date$ 4,741 $ 1,820 $ 2,191 $ 1,091 $ 969 $ 565 $ 582
Assets received from acquisition  2,285   ―   ―   ―   ―   ―   ―
Actual return on plan assets  872   280   263   130   119   86   88
Benefits paid  (448)   (125)   (153)   (73)   (66)   (38)   (43)
Transfers  ―   176   ―   ―   ―   (167)   ―
Employer contributions  304   ―   346   141   128   ―   ―
Plan assets at measurement date$ 7,754 $ 2,151 $ 2,647 $ 1,289 $ 1,150 $ 446 $ 627
Funded status of plan$ (276) $ 123 $ (221) $ 25 $ (159) $ (81) $ (57)
                      

Amounts Recognized in the Consolidated Balance Sheets
                      
  December 31, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Prefunded pension(a)$ 632 $ 287 $ 230 $ 158 $ 66 $ 2 $ 75
Noncurrent pension liability$ ― $ ― $ 25 $ ― $ ― $ (4) $ 53
Net asset recognized$ 632 $ 287 $ 205 $ 158 $ 66 $ 6 $ 22
Regulatory assets$ 1,599 $ 377 $ 826 $ 363 $ 395 $ 48 $ 147
Accumulated other comprehensive (income) loss                    
Deferred income tax asset$ (41) $ ― $ (9) $ ― $ ― $ ― $ ―
Prior service credit  (5)   ―   ―   ―   ―   ―   ―
Net actuarial loss  121   ―   21   ―   ―   ―   ―
Net amounts recognized in accumulated other comprehensive loss(b)$ 75 $ ― $ 12 $ ― $ ― $ ― $ ―
Amounts to be recognized in net periodic pension expense in the next year                    
Unrecognized net actuarial loss$ 149 $ 35 $ 71 $ 33 $ 32 $ 4 $ 7
Unrecognized prior service credit  (15)   (8)   (4)   (2)   (1)   ―   ―
                      
  December 31, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Prefunded pension(a)$ 163 $ 123 $ ― $ 25 $ ― $ ― $ ―
Noncurrent pension liability$ 439 $ ― $ 221 $ ― $ 159 $ 81 $ 57
Net asset (liability) recognized$ (276) $ 123 $ (221) $ 25 $ (159) $ (81) $ (57)
Regulatory assets$ 2,387 $ 582 $ 1,079 $ 472 $ 541 $ 144 $ 246
Accumulated other comprehensive (income) loss                    
Deferred income tax asset$ (59) $ ― $ (9) $ ― $ ― $ ― $ ―
Prior service credit  (4)   ―   ―   ―   ―   ―   ―
Net actuarial loss  166   ―   26   ―   ―   ―   ―
Net amounts recognized in accumulated other comprehensive loss(b)$ 103 $ ― $ 17 $ ― $ ― $ ― $ ―
                      
(a)Included in Other within Investments and Other Assets on the Consolidated Balance Sheets.
(b)Excludes accumulated other comprehensive income of $16 million and $9 million as of 2013 and 2012, respectively, net of tax, associated with a Brazilian retirement plan.
                      

Information for Plans with Accumulated Benefit Obligation in Excess of Plan Assets
                
As of December 31, 2013, no qualified pension plans had an accumulated benefit obligation in excess of plan assets.
                
  December 31, 2012
(in millions)Duke Energy Progress Energy Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Projected benefit obligation$ 5,396 $ 2,868 $ 1,309 $ 527 $ 684
Accumulated benefit obligation  5,201   2,820   1,261   501   653
Fair value of plan assets  4,957   2,647   1,150   446   627
                

Assumptions Used for Pension Benefits Accounting

The discount rate used to determine the current year pension obligation and following year's pension expense is based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high quality corporate bonds that generate sufficient cash flow to provide for projected benefit payments of the plan. The selected bond portfolio is derived from a universe of non-callable corporate bonds rated Aa quality or higher. After the bond portfolio is selected, a single interest rate is determined that equates the present value of the plan's projected benefit payments discounted at this rate with the market value of the bonds selected.

The average remaining service period of active covered employees is nine years for Duke Energy, Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana and eight years for Progress Energy, Duke Energy Progress and Duke Energy Florida.

The following tables present the assumptions used for pension benefit accounting. For Progress Energy plans, the assumptions used in 2012 to determine net periodic pension cost reflect remeasurement as of July 1, 2012, due to the merger between Duke Energy and Progress Energy.

                   
  Duke Energy Progress Energy
  December 31, December 31,
 2013 2012 2011 2013 2012 2011
Benefit Obligations                 
Discount rate 4.70%  4.10%  5.10%  4.70%  4.10%  4.75%
Salary increase 4.40%  4.30%  4.40%  4.00%  4.00%  4.00%
Net Periodic Benefit Cost                 
Discount rate 4.10% 4.60-5.10%  5.00%  4.10% 4.60-4.75%  5.55%
Salary increase 4.30% 4.40%  4.10%  4.00% 4.00%  4.50%
Expected long-term rate of return on plan assets 7.75% 8.00%  8.25%  7.75% 8.00-8.25%  8.50%
                   

Expected Benefit Payments
                      
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Years ending December 31,                    
2014$ 667 $ 224 $ 190 $ 98 $ 68 $ 36 $ 47
2015  643   218   185   92   71   35   45
2016  640   212   190   93   74   34   46
2017  633   205   191   91   77   34   44
2018  623   196   194   91   80   34   46
2019 - 2023  2,933   807   969   422   430   171   227
                      

NON-QUALIFIED PENSION PLANS
                      
Components of Net Periodic Pension Costs
                      
  Year Ended December 31, 2013
(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 $ 1 $ ― $ ― $ ―
Interest cost on projected benefit obligation  13   1   7   1   1   ―   ―
Amortization of actuarial loss  5   ―   3   1   1   ―   ―
Amortization of prior service credit  (1)   ―   (1)   ―   ―   ―   ―
Net periodic pension costs$ 20 $ 1 $ 10 $ 3 $ 2 $ ― $ ―
                      
  Year Ended December 31, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 2 $ ― $ 2 $ 1 $ ― $ ― $ ―
Interest cost on projected benefit obligation  12   1   8   1   2   ―   ―
Amortization of actuarial loss  4   ―   5   1   ―   ―   ―
Amortization of prior service cost (credit)  1   ―   (1)   ―   ―   ―   ―
Net periodic pension costs$ 19 $ 1 $ 14 $ 3 $ 2 $ ― $ ―
                      
  Year Ended December 31, 2011
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 1 $ ― $ 2 $ 1 $ ― $ ― $ ―
Interest cost on projected benefit obligation  8   1   9   2   2   ―   ―
Amortization of actuarial loss  ―   ―   3   ―   1   ―   ―
Amortization of prior service cost  2   ―   ―   ―   ―   ―   ―
Net periodic pension costs$ 11 $ 1 $ 14 $ 3 $ 3 $ ― $ ―
                      

Amounts Recognized in Accumulated Other Comprehensive Income and Regulatory Assets and Liabilities
                      
  Year Ended December 31, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Regulatory assets, net (decrease) increase $ (14) $ 1 $ (16) $ (4) $ (3) $ ― $ (2)
Regulatory liabilities, net increase$ 5 $ ― $ ― $ ― $ ― $ ― $ ―
Accumulated other comprehensive (income) loss                    
Deferred income tax benefit $ ― $ ― $ 1 $ ― $ ― $ ― $ ―
Actuarial losses (gains) arising during the year  2   ―   (5)   ―   ―   ―   ―
Prior year service credit arising during the year  (1)   ―   ―   ―   ―   ―   ―
Net amount recognized in accumulated other comprehensive loss (income) $ 1 $ ― $ (4) $ ― $ ― $ ― $ ―
                      
  Year Ended December 31, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Regulatory assets, net increase (decrease)$ 34 $ ― $ (6) $ (2) $ 1 $ ― $ ―
Regulatory liabilities, net increase$ (8) $ ― $ ― $ ― $ ― $ ― $ ―
Accumulated other comprehensive (income) loss                    
Deferred income tax benefit $ ― $ ― $ (1) $ ― $ ― $ ― $ ―
Actuarial (gains) losses arising during the year  (2)   ―   3   ―   ―   ―   ―
Net amount recognized in accumulated other comprehensive (income) loss$ (2) $ ― $ 2 $ ― $ ― $ ― $ ―
                      

Reconciliation of Funded Status to Net Amount Recognized
                      
  Year Ended December 31, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Change in Projected Benefit Obligation                    
Obligation at prior measurement date$ 335 $ 16 $ 176 $ 38 $ 45 $ 4 $ 5
Service cost  3   ―   1   1   ―   ―   ―
Interest cost  13   1   7   1   1   ―   ―
Actuarial losses  (15)   1   (11)   (3)   (3)   (1)   ―
Settlements  (5)   ―   ―   ―   ―   ―   ―
Plan amendments  (1)   ―   ―   ―   ―   ―   ―
Transfers  ―   ―   (21)   ―   ―   ―   ―
Benefits paid  (26)   (3)   (12)   (3)   (4)   ―   ―
Obligation at measurement date$ 304 $ 15 $ 140 $ 34 $ 39 $ 3 $ 5
Accumulated Benefit Obligation at measurement date$ 302 $ 15 $ 140 $ 34 $ 39 $ 3 $ 5
Change in Fair Value of Plan Assets                    
Plan assets at prior measurement date$ ― $ ― $ ― $ ― $ ― $ ― $ ―
Benefits paid  (26)   (3)   (12)   (3)   (4)   ―   ―
Employer contributions  26   3   12   3   4   ―   ―
Plan assets at measurement date$ ― $ ― $ ― $ ― $ ― $ ― $ ―
                      
  Year Ended December 31, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Change in Projected Benefit Obligation                    
Obligation at prior measurement date$ 160 $ 18 $ 177 $ 39 $ 44 $ 4 $ 5
Obligation assumed from acquisition  172   ―   ―   ―   ―   ―   ―
Service cost  2   ―   2   1   ―   ―   ―
Interest cost  12   1   8   1   2   ―   ―
Actuarial losses  18   ―   11   3   3   ―   ―
Plan amendments  (5)   ―   (12)   (4)   (2)   ―   ―
Transfers  ―   1   ―   ―   ―   ―   ―
Benefits paid  (24)   (4)   (10)   (2)   (2)   ―   ―
Obligation at measurement date$ 335 $ 16 $ 176 $ 38 $ 45 $ 4 $ 5
Accumulated Benefit Obligation at measurement date$ 332 $ 16 $ 175 $ 36 $ 44 $ 4 $ 5
Change in Fair Value of Plan Assets                    
Plan assets at prior measurement date$ ― $ ― $ ― $ ― $ ― $ ― $ ―
Benefits paid  (24)   (4)   (10)   (2)   (3)   ―   ―
Employer contributions  24   4   10   2   3   ―   ―
Plan assets at measurement date$ ― $ ― $ ― $ ― $ ― $ ― $ ―
                      

Amounts Recognized in the Consolidated Balance Sheets
                      
  December 31, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Current pension liability(a)$ 30 $ 2 $ 11 $ 2 $ 3 $ ― $ ―
Noncurrent pension liability  274   13   129   32   36   3   5
Total accrued pension liability$ 304 $ 15 $ 140 $ 34 $ 39 $ 3 $ 5
Regulatory assets$ 45 $ 4 $ 18 $ 3 $ 6 $ ― $ ―
Regulatory liabilities$ 7 $ ― $ ― $ ― $ ― $ ― $ ―
Accumulated other comprehensive (income) loss                    
Deferred income tax asset$ ― $ ― $ (3) $ ― $ ― $ ― $ ―
Prior service credit  (1)   ―   ―   ―   ―   ―   ―
Net actuarial loss  1   ―   7   ―   ―   ―   ―
Net amounts recognized in accumulated other comprehensive loss$ ― $ ― $ 4 $ ― $ ― $ ― $ ―
Amounts to be recognized in net periodic pension expense in the next year                    
Unrecognized net actuarial loss$ 5 $ ― $ 2 $ 1 $ ― $ ― $ ―
Unrecognized prior service credit  (1)   ―   (1)   (1)   ―   ―   ―
                      
  December 31, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Current pension liability(a)$ 30 $ 3 $ 11 $ 2 $ 3 $ ― $ ―
Noncurrent pension liability  305   13   165   36   42   4   5
Total accrued pension liability$ 335 $ 16 $ 176 $ 38 $ 45 $ 4 $ 5
Regulatory assets$ 59 $ 3 $ 34 $ 7 $ 9 $ ― $ 2
Regulatory liabilities$ 2 $ ― $ ― $ ― $ ― $ ― $ ―
Accumulated other comprehensive (income) loss                    
Deferred income tax asset$ ― $ ― $ (4) $ ― $ ― $ ― $ ―
Net actuarial (gain) loss  (1)   ―   12   ―   ―   ―   ―
Net amounts recognized in accumulated other comprehensive (income) loss$ (1) $ ― $ 8 $ ― $ ― $ ― $ ―
                      
(a)Included in Other within Current Liabilities on the Consolidated Balance Sheets.
                      

Information for Plans with Accumulated Benefit Obligation in Excess of Plan Assets
                      
  December 31, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Projected benefit obligation$ 304 $ 15 $ 140 $ 34 $ 39 $ 3 $ 5
Accumulated benefit obligation  302   15   140   34   39   3   5
                      
  December 31, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Projected benefit obligation$ 335 $ 16 $ 176 $ 38 $ 45 $ 4 $ 5
Accumulated benefit obligation  332   16   175   36   44   4   5
                      

Assumptions Used for Pension Benefits Accounting

The discount rate used to determine the current year pension obligation and following year's pension expense is based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high quality corporate bonds that generate sufficient cash flow to provide for projected benefit payments of the plan. The selected bond portfolio is derived from a universe of non-callable corporate bonds rated Aa quality or higher. After the bond portfolio is selected, a single interest rate is determined that equates the present value of the plan's projected benefit payments discounted at this rate with the market value of the bonds selected.

The average remaining service period of active covered employees is 13 years for Duke Energy and Progress Energy, nine years for Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana, 12 years for Duke Energy Progress and 17 years for Duke Energy Florida.

The following tables present the assumptions used for pension benefit accounting. For Progress Energy plans, the assumptions used in 2012 to determine net periodic pension cost reflect remeasurement as of July 1, 2012, due to the merger between Duke Energy and Progress Energy.

                   
  Duke Energy Progress Energy
  December 31, December 31,
 2013 2012 2011 2013 2012 2011
Benefit Obligations                 
Discount rate 4.70%  4.10%  5.10%  4.70%  4.10%  4.80%
Salary increase 4.40%  4.30%  4.40%  ―%  ―%  5.25%
Net Periodic Benefit Cost                 
Discount rate 4.10% 4.60-5.10%  5.00%  4.10% 4.60-4.80%  5.60%
Salary increase 4.30%  4.40%  4.10%  ―%  ―%  5.25%
                   

Expected Benefit Payments
                      
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Years ending December 31,                    
2014$ 31 $ 3 $ 11 $ 2 $ 3 $ ― $ ―
2015  28   2   11   2   3   ―   ―
2016  26   2   11   2   3   ―   ―
2017  27   2   11   2   3   ―   ―
2018  24   2   11   2   3   ―   ―
2019 - 2023  112   6   52   13   15   1   2
                      

Other Post-Retirement Benefit Plans

Duke Energy provides, 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, dental, and prescription drug coverage and are subject to certain limitations, such as deductibles and co-payments.

Duke Energy did not make any pre-funding contributions to its other post-retirement benefit plans during the years ended December 31, 2013, 2012 or 2011.

Components of Net Periodic Other Post-Retirement Benefit Costs
                      
  Year Ended December 31, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 24 $ 2 $ 18 $ 9 $ 7 $ 1 $ 1
Interest cost on accumulated post-retirement benefit obligation  68   13   41   22   16   2   5
Expected return on plan assets  (14)   (11)   ―   ―   ―   (1)   (1)
Amortization of actuarial loss (gain)  52   3   57   34   16   (1)   1
Amortization of prior service credit  (41)   (7)   (30)   (20)   (6)   (1)   ―
Net periodic post-retirement benefit costs(a)(b)$ 89 $ ― $ 86 $ 45 $ 33 $ ― $ 6
                      
  Year Ended December 31, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 16 $ 2 $ 17 $ 8 $ 7 $ 1 $ 1
Interest cost on accumulated post-retirement benefit obligation  56   15   43   23   18   3   6
Expected return on plan assets  (17)   (10)   (2)   ―   (2)   (1)   (1)
Amortization of actuarial loss (gain)  14   3   35   20   12   (2)   ―
Amortization of prior service credit  (8)   (5)   ―   ―   ―   (1)   ―
Amortization of net transition liability  10   7   4   ―   3   ―   ―
Special termination benefit cost  9   1   5   2   1   ―   ―
Net periodic post-retirement benefit costs(a)(b)$ 80 $ 13 $ 102 $ 53 $ 39 $ ― $ 6
                      
  Year Ended December 31, 2011
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Service cost$ 7 $ 2 $ 11 $ 5 $ 5 $ 1 $ 1
Interest cost on accumulated post-retirement benefit obligation  35   16   41   20   18   3   7
Expected return on plan assets  (15)   (10)   (2)   ―   (2)   (1)   (1)
Amortization of actuarial (gain) loss  (3)   2   12   5   7   (2)   2
Amortization of prior service credit  (8)   (5)   ―   ―   ―   (1)   ―
Amortization of net transition liability  10   9   5   1   4   ―   ―
Net periodic post-retirement benefit costs(a)(b)$ 26 $ 14 $ 67 $ 31 $ 32 $ ― $ 9
                      
(a)Duke Energy amounts exclude $8 million, $9 million and $8 million for the years ended December 31, 2013, 2012 and 2011, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy in April 2006.
(b)Duke Energy Ohio amounts exclude $2 million for each of the years ended December 31, 2013, 2012 and 2011, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy’s merger with Cinergy in April 2006.
                      

Amounts Recognized in Accumulated Other Comprehensive Income and Regulatory Assets and Liabilities
                      
  Year Ended December 31, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Regulatory assets, net (decrease) increase $ (683) $ (51) $ (634) $ (388) $ (166) $ ― $ (6)
Regulatory liabilities, net increase (decrease)$ 30 $ ― $ ― $ ― $ ― $ 3 $ 9
Accumulated other comprehensive (income) loss                    
Deferred income tax benefit $ 2 $ ― $ ― $ ― $ ― $ ― $ ―
Actuarial gains arising during the year  (4)   ―   ―   ―   ―   ―   ―
Prior year service credit arising during the year  (3)   ―   ―   ―   ―   ―   ―
Amortization of prior year actuarial loss  1   ―   ―   ―   ―   ―   ―
Net amount recognized in accumulated other comprehensive income$ (4) $ ― $ ― $ ― $ ― $ ― $ ―
                      
  Year Ended December 31, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Regulatory assets, net increase (decrease)$ 484 $ (20) $ 228 $ 170 $ 28 $ ― $ (6)
Regulatory liabilities, net decrease$ (6) $ ― $ ― $ ― $ ― $ (1) $ (2)
Accumulated other comprehensive (income) loss                    
Deferred income tax expense$ (2) $ ― $ ― $ ― $ ― $ (4) $ ―
Reclassification of actuarial losses to an affiliate  ―   ―   ―   ―   ―   6   ―
Actuarial losses arising during the year  ―   ―   ―   ―   ―   2   ―
Prior year service cost arising during the year  ―   ―   ―   ―   ―   1   ―
Amortization of prior year actuarial loss  ―   ―   ―   ―   ―   1   ―
Reclassification of actuarial gains to regulatory liabilities  4   ―   ―   ―   ―   ―   ―
Net amount recognized in accumulated other comprehensive loss$ 2 $ ― $ ― $ ― $ ― $ 6 $ ―
                      

Reconciliation of Funded Status to Accrued Other Post-Retirement Benefit Costs
                      
  Year Ended December 31, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Change in Projected Benefit Obligation                    
Accumulated post-retirement benefit obligation at prior measurement date$ 1,794 $ 316 $ 1,128 $ 612 $ 413 $ 48 $ 136
Service cost  24   2   18   9   7   1   1
Interest cost  68   13   41   22   16   2   5
Plan participants' contributions  47   15   14   6   7   3   3
Actuarial gains  (227)   (32)   (156)   (73)   (70)   (6)   (12)
Transfers  ―   ―   (1)   (8)   ―   ―   ―
Benefits paid  (132)   (36)   (60)   (26)   (31)   (6)   (14)
Plan amendments  (476)   (16)   (455)   (311)   (91)   ―   (3)
Accrued retiree drug subsidy  8   3   4   2   2   ―   2
Accumulated post-retirement benefit obligation at measurement date$ 1,106 $ 265 $ 533 $ 233 $ 253 $ 42 $ 118
Change in Fair Value of Plan Assets                    
Plan assets at prior measurement date$ 198 $ 134 $ ― $ ― $ ― $ 7 $ 17
Actual return on plan assets  18   13   ―   ―   ―   2   2
Benefits paid  (132)   (36)   (60)   (26)   (31)   (6)   (14)
Transfers(a)  ―   (1)   ―   ―   ―   ―   ―
Employer contributions  83   18   46   20   24   2   10
Plan participants' contributions  47   15   14   6   7   3   3
Plan assets at measurement date$ 214 $ 143 $ ― $ ― $ ― $ 8 $ 18
                      
  Year Ended December 31, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Change in Projected Benefit Obligation                    
Accumulated post-retirement benefit obligation at prior measurement date$ 667 $ 312 $ 841 $ 407 $ 368 $ 61 $ 135
Obligation assumed from acquisition  977   ―   ―   ―   ―   ―   ―
Service cost  16   2   17   8   7   1   1
Interest cost  56   15   43   23   18   3   6
Plan participants' contributions  41   18   13   5   7   4   8
Actuarial gains  198   28   291   205   49   3   (2)
Transfers  ―   9   ―   ―   ―   (16)   ―
Benefits paid  (105)   (38)   (61)   (24)   (33)   (8)   (13)
Special termination benefit cost  9   1   5   2   1   ―   ―
Plan amendments  (70)   (33)   (25)   (16)   (6)   ―   ―
Accrued retiree drug subsidy  5   2   4   2   2   ―   1
Accumulated post-retirement benefit obligation at measurement date$ 1,794 $ 316 $ 1,128 $ 612 $ 413 $ 48 $ 136
Change in Fair Value of Plan Assets                    
Plan assets at prior measurement date$ 181 $ 120 $ 37 $ ― $ 37 $ 9 $ 14
Actual return on plan assets  23   12   2   ―   2   1   2
Benefits paid  (105)   (38)   (61)   (24)   (33)   (8)   (13)
Transfers(a)  ―   5   (39)   ―   (39)   (3)   ―
Employer contributions  58   17   48   19   26   4   6
Plan participants' contributions  41   18   13   5   7   4   8
Plan assets at measurement date$ 198 $ 134 $ ― $ ― $ ― $ 7 $ 17
                      
(a)Progress Energy and Duke Energy Florida amounts reflect assets that did not meet the definition of plan assets. These assets are included in Other within Investments and Other Assets on the Consolidated Balance Sheets.
                      

Amounts Recognized in the Consolidated Balance Sheets
                      
  December 31, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Current post-retirement liability(a)$ 39 $ ― $ 36 $ 17 $ 16 $ 2 $ ―
Noncurrent post-retirement liability  853   122   497   216   237   32   100
Total accrued post-retirement liability$ 892 $ 122 $ 533 $ 233 $ 253 $ 34 $ 100
Regulatory assets$ (162) $ (34) $ (129) $ (97) $ 4 $ ― $ 71
Regulatory liabilities$ 131 $ ― $ ― $ ― $ ― $ 21 $ 77
Accumulated other comprehensive (income) loss                    
Deferred income tax liability$ 4 $ ― $ ― $ ― $ ― $ ― $ ―
Prior service credit  (5)   ―   ―   ―   ―   ―   ―
Net actuarial gain  (6)   ―   ―   ―   ―   ―   ―
Net amounts recognized in accumulated other comprehensive income$ (7) $ ― $ ― $ ― $ ― $ ― $ ―
Amounts to be recognized in net periodic pension expense in the next year                    
Unrecognized net actuarial loss (gain)$ 38 $ 3 $ 46   30 $ 10 $ (2) $ (6)
Unrecognized prior service credit  (125)   (10)   (112)   (73)   (21)   ―   ―
                      
  December 31, 2012
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Current post-retirement liability(a)$ 50 $ ― $ 47 $ 23 $ 20 $ 2 $ ―
Noncurrent post-retirement liability  1,546   182   1,081   589   393   39   119
Total accrued post-retirement liability$ 1,596 $ 182 $ 1,128 $ 612 $ 413 $ 41 $ 119
Regulatory assets$ 521 $ 17 $ 505 $ 291 $ 170 $ ― $ 77
Regulatory liabilities$ 101 $ ― $ ― $ ― $ ― $ 18 $ 68
Accumulated other comprehensive (income) loss                    
Deferred income tax liability$ 2 $ ― $ ― $ ― $ ― $ ― $ ―
Prior service credit  (3)   ―   ―   ―   ―   ―   ―
Net actuarial gain  (2)   ―   ―   ―   ―   ―   ―
Net amounts recognized in accumulated other comprehensive income$ (3) $ ― $ ― $ ― $ ― $ ― $ ―
                      
(a)Included in Other within Current Liabilities on the Consolidated Balance Sheets.
                      

Assumptions Used for Other Post-Retirement Benefits Accounting

The discount rate used to determine the current year other post-retirement benefits obligation and following year's other post-retirement benefits expense is based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high quality corporate bonds that generate sufficient cash flow to provide for projected benefit payments of the plan. The selected bond portfolio is derived from a universe of non-callable corporate bonds rated Aa quality or higher. After the bond portfolio is selected, a single interest rate is determined that equates present value of the plan's projected benefit payments discounted at this rate with the market value of the bonds selected.

The following tables present the assumptions used for other post-retirement benefits accounting. For Progress Energy plans, the assumptions used in 2012 to determine net periodic other post-retirement benefit cost reflect remeasurement as of July 1, 2012, due to the merger between Duke Energy and Progress Energy.

                   
  Duke Energy Progress Energy
  December 31, December 31,
 2013 2012 2011 2013 2012 2011
Benefit Obligations                 
Discount rate 4.70%  4.10%  5.10%  4.70%  4.10%  4.85%
Net Periodic Benefit Cost                 
Discount rate 4.10% 4.60-5.10%  5.00%  4.10% 4.60-4.85%  5.70%
Expected long-term rate of return on plan assets 7.75% 5.20-8.00% 5.36-8.25%  ―% N/A-5.00%  5.00%
Assumed tax rate 35%  35%  35%         
                   

Assumed Health Care Cost Trend Rate     
       
  December 31,
 2013 2012
Health care cost trend rate assumed for next year 8.50%  8.50%
Rate to which the cost trend is assumed to decline (the ultimate trend rate) 5.00%  5.00%
Year that rate reaches ultimate trend2021  2020 
       

Sensitivity to Changes in Assumed Health Care Cost Trend Rates
                      
  Year Ended December 31, 2013
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
1-Percentage Point Increase                    
Effect on total service and interest costs$ 11 $ 2 $ 7 $ 4 $ 3 $ 1 $ 1
Effect on post-retirement benefit obligation  42   10   20   9   10   2   4
1-Percentage Point Decrease                    
Effect on total service and interest costs  (9)   (1)   (6)   (3)   (2)   —   (1)
Effect on post-retirement benefit obligation  (36)   (9)   (16)   (7)   (8)   (1)   (4)
                      

Expected Benefit Payments
                      
(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Years ending December 31,                    
 2014$85 $21 $36 $17 $17 $4 $11
 2015 88  22  38  17  17  4  12
 2016 89  23  38  18  17  4  12
 2017 89  23  38  18  17  3  11
 2018 89  24  38  18  17  3  11
 2019 - 2023 413  109  180  81  84  17  47
                      

Plan Assets

Description and Allocations

Duke Energy Master Retirement Trust

Assets for both the qualified pension and other post-retirement benefits are maintained in the Duke Energy Master Retirement Trust. Approximately 98 percent of the Duke Energy Master Retirement Trust assets were allocated to qualified pension plans and approximately 2 percent were allocated to other post-retirement plans, as of December 31, 2013 and 2012. The investment objective of the Duke Energy Master Retirement Trust is to achieve reasonable returns, subject to a prudent level of portfolio risk, for the purpose of enhancing the security of benefits for plan participants.

The asset allocation targets were set after considering the investment objective and the risk profile. Equity securities are held for their high expected return. Debt securities, hedge funds, real estate and other global securities are held for diversification. Investments within asset classes are to be diversified to achieve broad market participation and reduce the impact of individual managers or investments. Duke Energy regularly reviews its actual asset allocation and periodically rebalances its investments to the targeted allocation when considered appropriate.

Qualified pension and other post-retirement benefits for the Subsidiary Registrants are derived from the Duke Energy Master Retirement Trust, as such, each are allocated their proportionate share of the assets discussed below.

The following table includes the target asset allocations by asset class at December 31, 2013 and the actual asset allocations for the Duke Energy Master Retirement Trust.

           
      Actual Allocation at December 31,
 Target Allocation 2013 2012
U.S. equity securities  10%  10%  28%
Non-U.S. equity securities  8%  8%  15%
Global equity securities  10%  10%  10%
Global private equity securities  3%  3%  3%
Debt securities  63%  63%  32%
Hedge funds  2%  3%  4%
Real estate and cash  2%  1%  4%
Other global securities  2%  2%  4%
Total 100%  100%  100%
           

Progress Energy Master Retirement Trust

As of December 31, 2012, assets for Progress Energy qualified pension benefits were maintained in the Progress Energy Master Retirement Trust. As of January 1, 2013, assets previously held in the Progress Energy Master Retirement Trust were transferred into the Duke Energy Master Retirement Trust. The following table includes the actual asset allocations for the Progress Energy Master Retirement Trust at December 31, 2012.

     
   Actual Allocation at December 31,
  2012
U.S. equity securities  20%
Non-U.S. equity securities  14%
Global equity securities  8%
Global private equity securities  10%
Debt securities  35%
Hedge funds  9%
Real estate and cash  1%
Other global securities  3%
Total  100%
     

VEBA I

Duke Energy also invests other post-retirement assets in the Duke Energy Corporation Employee Benefits Trust (VEBA I). The investment objective of VEBA I is to achieve sufficient returns, subject to a prudent level of portfolio risk, for the purpose of promoting the security of plan benefits for participants. VEBA I is passively managed.

The following table includes the weighted-average returns expected by asset classes and the target asset allocations at December 31, 2013 and the actual asset allocations for VEBA I.

           
      Actual Allocation at December 31,
 Target Allocation 2013 2012
U.S. equity securities  30%  29%  23%
Debt securities  45%  29%  32%
Cash  25%  42%  45%
Total  100%  100%  100%
           

Fair Value Measurements

Duke Energy classifies recurring and non-recurring fair value measurements based on the fair value hierarchy as discussed in Note 16.

Valuation methods of the primary fair value measurements disclosed above are as follows:

Investments in equity securities

Investments in equity securities, other than those accounted for as equity and cost method investments, are typically valued at the closing price in the principal active market as of the last business day of the reporting period. Principal active markets for equity prices include published exchanges such as NASDAQ and NYSE. Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. Prices have not been adjusted to reflect after-hours market activity. The majority of investments in equity securities are valued using Level 1 measurements. When (i) the Duke Energy Registrants lack the ability to redeem investments valued on a net asset value per share basis at net asset value per share in the near future or (ii) net asset value per share is not available at the measurement date, the fair value measurement of the investment is categorized as Level 3.

Investments in debt securities

Most debt investments are valued based on a calculation using interest rate curves and credit spreads applied to the terms of the debt instrument (maturity and coupon interest rate) and consider the counterparty credit rating. Most debt valuations are Level 2 measurements. If the market for a particular fixed income security is relatively inactive or illiquid, the measurement is Level 3. U.S. Treasury debt is typically Level 1.

Investments in short-term investment funds

Investments in short-term investment funds are valued at the net asset value of units held at year end. Investments in short-term investment funds with published prices are valued as Level 1. Investments in short-term investment funds with unpublished prices are valued as Level 2.

Investments in real estate investment trusts

Investments in real estate investment trusts are valued based upon property appraisal reports prepared by independent real estate appraisers. The Chief Real Estate Appraiser of the asset manager is responsible for assuring that the valuation process provides independent and reasonable property market value estimates. An external appraisal management firm not affiliated with the asset manager has been appointed to assist the Chief Real Estate Appraiser in maintaining and monitoring the independence and the accuracy of the appraisal process.

Duke Energy Master Retirement Trust           
             
The following tables provide the fair value measurement amounts for the Duke Energy Master Retirement Trust qualified pension and other post-retirement assets.
             
  December 31, 2013
(in millions)Total Fair Value Level 1 Level 2 Level 3
Equity securities$ 2,877 $ 1,801 $ 1,022 $ 54
Corporate debt securities  2,604   ―   2,601   3
Short-term investment funds  1,158   254   904   ―
Partnership interests  307   ―   ―   307
Hedge funds  164   ―   111   53
Real estate trusts  95   ―   ―   95
U.S. government securities  927   ―   927   ―
Guaranteed investment contracts  33   ―   ―   33
Governments bonds - foreign  19   ―   18   1
Cash  58   58   ―   ―
Government and commercial mortgage backed securities  7   ―   7   ―
Net pending transactions and other investments  12   7   5   ―
Total assets(a) $ 8,261 $ 2,120 $ 5,595 $ 546
             
(a)Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio and Duke Energy Indiana were allocated approximately 28 percent, 35 percent, 16 percent, 16 percent, 5 percent and 8 percent, respectively, of the Duke Energy Master Retirement Trust assets at December 31, 2013. Accordingly, all Level 1, 2 and 3 amounts included in the table above are allocable to the Subsidiary Registrants using these percentages.
             

  December 31, 2012
(in millions)Total Fair Value Level 1 Level 2 Level 3
Equity securities$ 2,993 $ 1,415 $ 1,575 $ 3
Corporate debt securities  1,391   ―   1,388   3
Short-term investment funds  100   23   77   ―
Partnership interests  141   ―   ―   141
Hedge funds  97   ―   97   ―
Real estate trusts  167   ―   ―   167
U.S. government securities  237   ―   237   ―
Guarantees investment contracts  37   ―   ―   37
Governments bonds - foreign  65   ―   64   1
Cash  4   4   ―   ―
Asset backed securities  14   ―   14   ―
Net pending transactions and other investments  (16)   (21)   5   ―
Total assets(a) $ 5,230 $ 1,421 $ 3,457 $ 352
             
(a) Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana were allocated approximately 43 percent, 9 percent and 12 percent, respectively, of the Duke Energy Master Retirement Trust assets at December 31, 2012. Accordingly, all Level 1, 2 and 3 amounts included in the table above are allocable to Duke Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana using these percentages.
             

The following tables provide a reconciliation of beginning and ending balances of assets of master trusts measured at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3).
       
(in millions)2013 2012
Balance at January 1$ 352 $ 322
Combination of trust assets  288   ―
Purchases, sales, issuances and settlements     
Purchases  25   21
Sales  (152)   (4)
Total gains (losses) and other  33   13
Balance at December 31$ 546 $ 352
       

Progress Energy Master Retirement Trust
             
The following table provides the fair value measurement amounts for the Progress Energy Master Retirement Trust qualified pension assets.
             
  December 31, 2012
(in millions)Total Fair Value Level 1 Level 2 Level 3
Equity securities$ 1,094 $ 361 $ 733 $ ―
Corporate debt securities  432   ―   432   ―
Partnership interests  154   ―   ―   154
Hedge funds  313   ―   189   124
U.S. government securities  515   405   110   ―
Governments bonds - foreign  6   ―   6   ―
Cash  160   113   47   ―
Net pending transactions and other investments  16   ―   6   10
Total assets(a)$ 2,690 $ 879 $ 1,523 $ 288
             
(a)Duke Energy Progress and Duke Energy Florida were allocated approximately 48 percent and 44 percent, respectively, of the Progress Energy Master Trust assets at December 31, 2012. Accordingly, all Level 1, 2 and 3 amounts included in the table above are allocable to Duke Energy Progress and Duke Energy Florida using these percentages.
             

The following tables provide a reconciliation of beginning and ending balances of Progress Trust assets measured at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3).
       
(in millions)2013 2012
Balance at January 1$ 288 $ 311
Combination of trust assets  (288)   ―
Purchases, sales, issuances and settlements     
Purchases  ―   13
Sales  ―   (14)
Transfers in and/or out of level 3  ―   (41)
Total gains (losses) and other  ―   19
Balance at December 31$ ― $ 288
       

VEBA I           
             
The following tables provide the fair value measurement amounts for VEBA I other post-retirement assets.
             
  December 31, 2013
(in millions)Total Fair Value Level 1 Level 2 Level 3
Cash and cash equivalents$ 21 $ ― $ 21 $ ―
Equity securities  15   ―   15   ―
Debt securities  15   ―   15   ―
Total assets$ 51 $ ― $ 51 $ ―
             
  December 31, 2012
(in millions)Total Fair Value Level 1 Level 2 Level 3
Cash and cash equivalents$ 22 $ ― $ 22 $ ―
Equity securities  12   ―   12   ―
Debt securities  16   ―   16   ―
Total assets$ 50 $ ― $ 50 $ ―
             

Employee Savings Plans

Duke Energy sponsors, 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 earnings per share.

The following table includes pretax employer matching contributions made by Duke Energy and expensed by the Subsidiary Registrants.

(in millions)Duke Energy Duke Energy Carolinas Progress Energy Duke Energy Progress Duke Energy Florida Duke Energy Ohio Duke Energy Indiana
Years ended December 31,                    
 2013$ 134 $ 45 $ 45 $ 25 $ 14 $ 3 $ 7
 2012  107   37   45   24   15   4   6
 2011  86   37   44   23   14   4   8