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Stock-Based Compensation
 9 Months Ended
Sep. 30, 2012
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

14. 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.

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 2 – Acquisitions and Sales of Other Assets for further information regarding the merger transaction.

Duke Energy recorded pre-tax stock-based compensation expense for the three and nine months ended September 30, 2012 and 2011 as follows:

  Three Months Ended Nine Months Ended
  September 30, September 30,
(in millions)2012 2011 2012 2011
Stock Options$ ― $ ― $ 2 $ 2
Restricted Stock Unit Awards  16   6   30   20
Performance Awards  16   6   19   17
Total(a)(b)(c)(d)$ 32 $ 12 $ 51 $ 39
             
(a) Excludes stock-based compensation cost capitalized of an insignificant amount and $1 million for the three months ended September 30, 2012 and 2011.
(b)Excludes stock-based compensation cost capitalized of $1 million and $3 million for the nine months ended September 30, 2012 and 2011, respectively.
(c)The tax benefit associated with the recorded expense was $13 million and $5 million for the three months ended September 30, 2012 and 2011, respectively.
(d)The tax benefit associated with the recorded expense was $20 million and $16 million for the nine months ended September 30, 2012 and 2011, respectively.