Condensed Consolidating Statements

3 Months Ended

Mar. 31, 2012

Condensed Consolidating Statements Disclosure [Abstract]

15. CONDENSED CONSOLIDATING STATEMENTS

As discussed in Note 23 in the 2011 Form 10-K, we have guaranteed certain payments of two 100 percent owned indirect subsidiaries, FPC Capital I (the Trust) and Florida Progress Funding Corporation (Funding Corp.). Our guarantees are joint and several, full and unconditional and are in addition to the joint and several, full and unconditional guarantees issued to the Trust and Funding Corp. by Florida Progress. Our subsidiaries have provisions restricting the payment of dividends to the Parent in certain limited circumstances and as disclosed in Note 12B in the 2011 Form 10-K, there were no restrictions on PEC's or PEF's retained earnings.

The Trust is a VIE of which we are not the primary beneficiary. Separate financial statements and other disclosures concerning the Trust have not been presented because we believe that such information is not material to investors.

Presented below are the condensed consolidating Statements of Comprehensive Income, Balance Sheets and Cash Flows as required by Rule 3-10 of Regulation S-X. In these condensed consolidating statements, the Parent column includes the financial results of the parent holding company only. The Subsidiary Guarantor column includes the consolidated financial results of Florida Progress only, which is primarily comprised of its wholly owned subsidiary PEF. The Non-guarantor Subsidiaries column includes the consolidated financial results of all non-guarantor subsidiaries, which is primarily comprised of our wholly owned subsidiary PEC. The Other column includes elimination entries for all intercompany transactions and other consolidation adjustments. Financial statements for PEC and PEF are separately presented elsewhere in this Form 10-Q. All applicable corporate expenses have been allocated appropriately among the guarantor and non-guarantor subsidiaries. The financial information may not necessarily be indicative of results of operations or financial position had the Subsidiary Guarantor or other non-guarantor subsidiaries operated as independent entities.

Condensed Consolidating Statement of Comprehensive Income
Three months ended March 31, 2012
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Operating revenues
	Operating revenues		$	-	$	1,007	$	1,085	$	-		$	2,092
	Affiliate revenues			-		-		59		(59)			-
		Total operating revenues		-		1,007		1,144		(59)			2,092
Operating expenses
	Fuel used in electric generation			-		336		349		-			685
	Purchased power			-		145		65		-			210
	Operation and maintenance			1		160		422		(54)			529
	Depreciation, amortization and accretion			-		27		139		-			166
	Taxes other than on income			-		82		58		(2)			138
		Total operating expenses		1		750		1,033		(56)			1,728
Operating (loss) income				(1)		257		111		(3)			364
Other income (expense)
	Interest income			1		-		-		-			1
	Allowance for equity funds used during construction			-		9		15		-			24
	Other, net			8		1		2		2			13
		Total other income, net		9		10		17		2			38
Interest charges
	Interest charges			66		73		55		-			194
	Allowance for borrowed funds used during construction			-		(4)		(5)		-			(9)
		Total interest charges, net		66		69		50		-			185
(Loss) income from continuing operations before income tax and equity in earnings of consolidated subsidiaries				(58)		198		78		(1)			217
Income tax (benefit) expense				(22)		73		27		(2)			76
Equity in earnings of consolidated subsidiaries				186		-		-		(186)			-
Income from continuing operations				150		125		51		(185)			141
Discontinued operations, net of tax				-		11		-		-			11
Net income				150		136		51		(185)			152
Net income attributable to noncontrolling interests, net of tax				-		(1)		-		(1)			(2)
Net income attributable to controlling interests			$	150	$	135	$	51	$	(186)		$	150
Comprehensive income
	Comprehensive income		$	155	$	137	$	55	$	(190)		$	157
	Comprehensive income attributable to noncontrolling interests, net of tax			-		(1)		-		(1)			(2)
		Comprehensive income attributable to controlling interests	$	155	$	136	$	55	$	(191)		$	155

Condensed Consolidating Statement of Comprehensive Income
Three months ended March 31, 2011
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Operating revenues
	Operating revenues		$	-	$	1,034	$	1,133	$	-		$	2,167
	Affiliate revenues			-		-		74		(74)			-
		Total operating revenues		-		1,034		1,207		(74)			2,167
Operating expenses
	Fuel used in electric generation			-		355		363		-			718
	Purchased power			-		153		67		-			220
	Operation and maintenance			3		211		351		(71)			494
	Depreciation, amortization and accretion			-		25		129		-			154
	Taxes other than on income			-		85		59		(4)			140
	Other			-		(10)		-		-			(10)
		Total operating expenses		3		819		969		(75)			1,716
Operating (loss) income				(3)		215		238		1			451
Other income (expense)
	Interest income			-		1		-		-			1
	Allowance for equity funds used during construction			-		9		20		-			29
	Other, net			-		5		(2)		-			3
		Total other income, net		-		15		18		-			33
Interest charges
	Interest charges			73		75		51		-			199
	Allowance for borrowed funds used during construction			-		(4)		(5)		-			(9)
		Total interest charges, net		73		71		46		-			190
(Loss) income from continuing operations before income tax and equity in earnings of consolidated subsidiaries				(76)		159		210		1			294
Income tax (benefit) expense				(31)		60		80		(2)			107
Equity in earnings of consolidated subsidiaries				229		-		-		(229)			-
Income from continuing operations before cumulative effect of change in accounting principle				184		99		130		(226)			187
Discontinued operations, net of tax				-		(1)		(1)		-			(2)
Net income				184		98		129		(226)			185
Net (income) loss attributable to noncontrolling interests, net of tax				-		(1)		-		-			(1)
Net income attributable to controlling interests			$	184	$	97	$	129	$	(226)		$	184
Comprehensive income
	Comprehensive income		$	188	$	99	$	132	$	(230)		$	189
	Comprehensive income attributable to noncontrolling interests			-		(1)		-		-			(1)
		Comprehensive income attributable to controlling interests	$	188	$	98	$	132	$	(230)		$	188

Condensed Consolidating Balance Sheet
March 31, 2012
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
ASSETS
Utility plant, net			$	-	$	10,596	$	12,124	$	85	$	22,805
Current assets
	Cash and cash equivalents			511		33		21		-		565
	Receivables, net			-		346		412		-		758
	Notes receivable from affiliated companies			63		7		172		(242)		-
	Regulatory assets			-		225		25		-		250
	Derivative collateral posted			-		136		30		-		166
	Prepayments and other current assets			135		960		1,134		(133)		2,096
		Total current assets		709		1,707		1,794		(375)		3,835
Deferred debits and other assets
	Investment in consolidated subsidiaries			13,968		-		-		(13,968)		-
	Regulatory assets			-		1,659		1,464		-		3,123
	Goodwill			-		-		-		3,655		3,655
	Nuclear decommissioning trust funds			-		599		1,163		-		1,762
	Other assets and deferred debits			116		255		869		(445)		795
		Total deferred debits and other assets		14,084		2,513		3,496		(10,758)		9,335
		Total assets	$	14,793	$	14,816	$	17,414	$	(11,048)	$	35,975
CAPITALIZATION AND LIABILITIES
Equity
	Common stock equity		$	10,009	$	4,759	$	5,536	$	(10,295)	$	10,009
	Noncontrolling interests			-		2		-		-		2
		Total equity		10,009		4,761		5,536		(10,295)		10,011
	Preferred stock of subsidiaries			-		34		59		-		93
	Long-term debt, affiliate			-		309		-		(36)		273
	Long-term debt, net			3,992		4,057		3,693		-		11,742
		Total capitalization		14,001		9,161		9,288		(10,331)		22,119
Current liabilities
	Current portion of long-term debt			450		425		500		-		1,375
	Short-term debt			255		360		441		-		1,056
	Notes payable to affiliated companies			-		198		44		(242)		-
	Derivative liabilities			-		335		149		-		484
	Other current liabilities			65		836		1,084		(138)		1,847
		Total current liabilities		770		2,154		2,218		(380)		4,762
Deferred credits and other liabilities
	Noncurrent income tax liabilities			-		990		2,062		(415)		2,637
	Regulatory liabilities			-		967		1,632		85		2,684
	Other liabilities and deferred credits			22		1,544		2,214		(7)		3,773
		Total deferred credits and other liabilities		22		3,501		5,908		(337)		9,094
		Total capitalization and liabilities	$	14,793	$	14,816	$	17,414	$	(11,048)	$	35,975

Condensed Consolidating Balance Sheet
December 31, 2011
(in millions)			Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
ASSETS
Utility plant, net			$	-	$	10,523	$	11,887	$	87	$	22,497
Current assets
	Cash and cash equivalents			117		92		21		-		230
	Receivables, net			-		372		517		-		889
	Notes receivable from affiliated companies			53		-		219		(272)		-
	Regulatory assets			-		244		31		-		275
	Derivative collateral posted			-		123		24		-		147
	Prepayments and other current assets			128		852		1,049		(87)		1,942
		Total current assets		298		1,683		1,861		(359)		3,483
Deferred debits and other assets
	Investment in consolidated subsidiaries			14,043		-		-		(14,043)		-
	Regulatory assets			-		1,602		1,423		-		3,025
	Goodwill			-		-		-		3,655		3,655
	Nuclear decommissioning trust funds			-		559		1,088		-		1,647
	Other assets and deferred debits			140		242		856		(486)		752
		Total deferred debits and other assets		14,183		2,403		3,367		(10,874)		9,079
		Total assets	$	14,481	$	14,609	$	17,115	$	(11,146)	$	35,059
CAPITALIZATION AND LIABILITIES
Equity
	Common stock equity		$	10,021	$	4,728	$	5,646	$	(10,374)	$	10,021
	Noncontrolling interests			-		4		-		-		4
		Total equity		10,021		4,732		5,646		(10,374)		10,025
	Preferred stock of subsidiaries			-		34		59		-		93
	Long-term debt, affiliate			-		309		-		(36)		273
	Long-term debt, net			3,543		4,482		3,693		-		11,718
		Total capitalization		13,564		9,557		9,398		(10,410)		22,109
Current liabilities
	Current portion of long-term debt			450		-		500		-		950
	Short-term debt			250		233		188		-		671
	Notes payable to affiliated companies			-		238		34		(272)		-
	Derivative liabilities			38		268		130		-		436
	Other current liabilities			161		839		1,112		(84)		2,028
		Total current liabilities		899		1,578		1,964		(356)		4,085
Deferred credits and other liabilities
	Noncurrent income tax liabilities			-		837		1,976		(458)		2,355
	Regulatory liabilities			-		1,071		1,543		86		2,700
	Other liabilities and deferred credits			18		1,566		2,234		(8)		3,810
		Total deferred credits and other liabilities		18		3,474		5,753		(380)		8,865
		Total capitalization and liabilities	$	14,481	$	14,609	$	17,115	$	(11,146)	$	35,059

Condensed Consolidating Statement of Cash Flows
Three months ended March 31, 2012
(in millions)	Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Net cash provided by operating activities	$	227	$	166	$	245	$	(282)	$	356
Investing activities
Gross property additions		-		(197)		(365)		-		(562)
Nuclear fuel additions		-		(13)		(38)		-		(51)
Purchases of available-for-sale securities and other investments		-		(225)		(138)		-		(363)
Proceeds from available-for-sale securities and other investments		-		226		133		-		359
Changes in advances to affiliated companies		(10)		(7)		47		(30)		-
Other investing activities		(14)		15		64		-		65
Net cash used by investing activities		(24)		(201)		(297)		(30)		(552)
Financing activities
Issuance of common stock, net		3		-		-		-		3
Dividends paid on common stock		(260)		-		-		-		(260)
Dividends paid to parent		-		(108)		(175)		283		-
Proceeds from the issuance of short-term debt with original maturities greater than 90 days		-		65		-		-		65
Net increase in short-term debt		5		62		253		-		320
Proceeds from issuance of long-term debt, net		444		-		-		-		444
Changes in advances from affiliated companies		-		(40)		11		29		-
Other financing activities		(1)		(3)		(37)		-		(41)
Net cash provided (used) by financing activities		191		(24)		52		312		531
Net increase (decrease) in cash and cash equivalents		394		(59)		-		-		335
Cash and cash equivalents at beginning of period		117		92		21		-		230
Cash and cash equivalents at end of period	$	511	$	33	$	21	$	-	$	565

Condensed Consolidating Statement of Cash Flows
Three months ended March 31, 2011
(in millions)	Parent		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Other		Progress Energy, Inc.
Net cash provided by operating activities	$	280	$	257	$	337	$	(428)	$	446
Investing activities
Gross property additions		-		(218)		(283)		-		(501)
Nuclear fuel additions		-		(7)		(50)		-		(57)
Purchases of available-for-sale securities and other investments		-		(1,661)		(156)		-		(1,817)
Proceeds from available-for-sale securities and other investments		-		1,661		148		-		1,809
Changes in advances to affiliated companies		(75)		21		42		12		-
Contributions to consolidated subsidiaries		(10)		-		-		10		-
Other investing activities		-		43		5		(2)		46
Net cash used by investing activities		(85)		(161)		(294)		20		(520)
Financing activities
Issuance of common stock, net		8		-		-		-		8
Dividends paid on common stock		(183)		-		-		-		(183)
Dividends paid to parent		-		(328)		(100)		428		-
Net increase in short-term debt		79		-		-		-		79
Proceeds from issuance of long-term debt, net		494		-		-		-		494
Retirement of long-term debt		(700)		-		-		-		(700)
Changes in advances from affiliated companies		-		11		-		(11)		-
Contributions from parent		-		10		-		(10)		-
Other financing activities		-		(4)		(60)		1		(63)
Net cash used by financing activities		(302)		(311)		(160)		408		(365)
Net decrease in cash and cash equivalents		(107)		(215)		(117)		-		(439)
Cash and cash equivalents at beginning of period		110		270		231		-		611
Cash and cash equivalents at end of period	$	3	$	55	$	114	$	-	$	172