XML 87 R24.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Employee Benefit Obligations
6 Months Ended
Jun. 30, 2011
Employee Benefit Obligations

14. Employee Benefit Obligations

Net periodic benefit costs disclosed in the tables below for the qualified pension, non-qualified pension and other post-retirement benefit plans represent the cost of the respective benefit plan to the Duke Energy Registrants 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.

Duke Energy

The following table shows the components of the net periodic benefit costs for the Duke Energy U.S. qualified and non-qualified pension plans and other post-retirement benefit plans.

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 24      $ 1       $ 3      $ 24      $ —         $ 2   

Interest cost on benefit obligation

     58        2         9        62        2         11   

Expected return on plan assets

     (96     —           (4     (95     —           (4

Amortization of prior service cost (credit)

     1        —           (2     2        —           (5

Amortization of net transition liability

     —          —           2        —          —           2   

Amortization of loss (gain)

     19        —           (1     13        —           1   

Other

     5        —           —          4        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 11      $ 3       $ 7      $ 10      $ 2       $ 7   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 48      $ 1       $ 4      $ 48      $ 1       $ 4   

Interest cost on benefit obligation

     116        4         18        124        4         20   

Expected return on plan assets

     (192     —           (8     (189     —           (8

Amortization of prior service cost (credit)

     3        1         (4     3        1         (8

Amortization of net transition liability

     —          —           5        —          —           4   

Amortization of loss (gain)

     38        —           (2     25        —           2   

Contractual termination benefit cost

     —          —           —          10        —           —     

Other

     9        —           —          9        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 22      $ 6       $ 13      $ 30      $ 6       $ 14   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

Each of the Subsidiary Registrants participate in qualified pension plans, non-qualified pension plans and other post-retirement benefit plans sponsored by Duke Energy. The net periodic benefit costs shown in the tables below represent the allocated cost of the respective benefit plan for the periods presented. Additionally, the Subsidiary Registrants are allocated their proportionate share of pension and other post-retirement benefit cost for employees of Duke Energy's shared services affiliate that provide support to the respective Subsidiary Registrant. These allocated amounts are included in the governance and shared services costs for each Subsidiary Registrant discussed in Note 17.

 

Duke Energy Carolinas

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 10      $ —         $ 1      $ 9      $ —         $ 1   

Interest cost on benefit obligation

     22        1         4        22        —           5   

Expected return on plan assets

     (38     —           (3     (36     —           (3

Amortization of prior service credit

     —          —           (2     —          —           (2

Amortization of net transition liability

     —          —           3        —          —           3   

Amortization of loss

     9        —           —          7        —           —     

Other

     2        —           —          2        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 5      $ 1       $ 3      $ 4      $ —         $ 4   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 19      $ —         $ 1      $ 18      $ —         $ 1   

Interest cost on benefit obligation

     43        1         8        45        1         9   

Expected return on plan assets

     (75     —           (5     (73     —           (5

Amortization of prior service credit

     —          —           (3     —          —           (3

Amortization of net transition liability

     —          —           5        —          —           5   

Amortization of loss

     18        —           1        14        —           1   

Other

     4        —           —          4        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 9      $ 1       $ 7      $ 8      $ 1       $ 8   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

See Note 17 for additional information related to amounts reflected on Duke Energy Carolinas' Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Carolinas by Duke Energy.

Duke Energy Ohio

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Qualified
pension
plans(a)
 
     (in millions)  

Service cost

   $ 1      $ 1   

Interest cost on projected benefit obligation

     8        8   

Expected return on plan assets

     (11     (9

Amortization of loss

     2        1   

Other

     1        —     
  

 

 

   

 

 

 

Net periodic costs

   $ 1      $ 1   
  

 

 

   

 

 

 

 

(a) Excludes regulatory asset amortization of $1 million and $2 million for the three months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 3      $ —        $ 3      $ —     

Interest cost on projected benefit obligation

     16        1        17        1   

Expected return on plan assets

     (22     —          (21     —     

Amortization of loss (gain)

     4        (1     2        (1

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 2      $ —        $ 2      $ —     
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Excludes regulatory asset amortization of $3 million and $4 million for the six months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b) Excludes regulatory asset amortization of $1 million for each of the six months ended June 30, 2011 and 2010, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

Components of net periodic costs for Duke Energy Ohio's non-qualified pension plans were an insignificant amount for the three and six months ended June 30, 2011 and 2010. Components of net periodic costs for Duke Energy Ohio's other post-retirement benefit plans were an insignificant amount for the three months ended June 30, 2011 and 2010.

See Note 17 for additional information related to amounts reflected on Duke Energy Ohio's Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Ohio by Duke Energy.

Duke Energy Indiana

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 2      $ —        $ 2      $ —     

Interest cost on projected benefit obligation

     8        2        8        2   

Expected return on plan assets

     (11     (1     (11     (1 )

Amortization of prior service cost

     1       —          —          —     

Amortization of loss

     3        1        4        1  

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 4      $ 2      $ 4      $ 2   
  

 

 

   

 

 

   

 

 

   

 

 

 
     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 5      $ —        $ 5      $ —     

Interest cost on projected benefit obligation

     15        4        16        4   

Expected return on plan assets

     (22     (1     (22     (1

Amortization of prior service cost

     1        —          1        —     

Amortization of loss

     7        1        6        1  

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 7      $ 4      $ 7      $ 4   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Components of net periodic costs for Duke Energy Indiana's non-qualified pension plans were an insignificant amount for the three and six months ended June 30, 2011 and 2010.

See Note 17 for additional information related to amounts reflected on Duke Energy Indiana's Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Indiana by Duke Energy.

Employee Savings Plan

Duke Energy sponsors employee savings plans that cover substantially all U.S. employees. Duke Energy made pre-tax employer matching contributions of $19 million and $50 million during the three and six months ended June 30, 2011, respectively. Duke Energy made pre-tax employer matching contributions of $18 million and $49 million during the three and six months ended June 30, 2010, respectively.

The Subsidiary Registrants participate in Duke Energy sponsored employee savings plans. The following table shows the respective Subsidiary Registrants' expense related to its proportionate share of pre-tax employer matching contributions.

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2011      2010      2011      2010  
     (in millions)  

Duke Energy Carolinas

   $ 8       $ 8       $ 20       $ 20   

Duke Energy Ohio

     1         1         2         3   

Duke Energy Indiana

     2         1         5         4   
Duke Energy Corp [Member]
 
Employee Benefit Obligations

14. Employee Benefit Obligations

Net periodic benefit costs disclosed in the tables below for the qualified pension, non-qualified pension and other post-retirement benefit plans represent the cost of the respective benefit plan to the Duke Energy Registrants 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.

Duke Energy

The following table shows the components of the net periodic benefit costs for the Duke Energy U.S. qualified and non-qualified pension plans and other post-retirement benefit plans.

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 24      $ 1       $ 3      $ 24      $ —         $ 2   

Interest cost on benefit obligation

     58        2         9        62        2         11   

Expected return on plan assets

     (96     —           (4     (95     —           (4

Amortization of prior service cost (credit)

     1        —           (2     2        —           (5

Amortization of net transition liability

     —          —           2        —          —           2   

Amortization of loss (gain)

     19        —           (1     13        —           1   

Other

     5        —           —          4        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 11      $ 3       $ 7      $ 10      $ 2       $ 7   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

(a) Excludes regulatory asset amortization of $3 million and $4 million for the three months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b) Excludes regulatory asset amortization of $2 million and $3 million for the three months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 48      $ 1       $ 4      $ 48      $ 1       $ 4   

Interest cost on benefit obligation

     116        4         18        124        4         20   

Expected return on plan assets

     (192     —           (8     (189     —           (8

Amortization of prior service cost (credit)

     3        1         (4     3        1         (8

Amortization of net transition liability

     —          —           5        —          —           4   

Amortization of loss (gain)

     38        —           (2     25        —           2   

Contractual termination benefit cost

     —          —           —          10        —           —     

Other

     9        —           —          9        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 22      $ 6       $ 13      $ 30      $ 6       $ 14   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

(a) Excludes regulatory asset amortization of $7 million and $8 million for the six months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b) Excludes regulatory asset amortization of $4 million and $5 million for the six months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

Each of the Subsidiary Registrants participate in qualified pension plans, non-qualified pension plans and other post-retirement benefit plans sponsored by Duke Energy. The net periodic benefit costs shown in the tables below represent the allocated cost of the respective benefit plan for the periods presented. Additionally, the Subsidiary Registrants are allocated their proportionate share of pension and other post-retirement benefit cost for employees of Duke Energy's shared services affiliate that provide support to the respective Subsidiary Registrant. These allocated amounts are included in the governance and shared services costs for each Subsidiary Registrant discussed in Note 17.

 

Duke Energy Carolinas

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 10      $ —         $ 1      $ 9      $ —         $ 1   

Interest cost on benefit obligation

     22        1         4        22        —           5   

Expected return on plan assets

     (38     —           (3     (36     —           (3

Amortization of prior service credit

     —          —           (2     —          —           (2

Amortization of net transition liability

     —          —           3        —          —           3   

Amortization of loss

     9        —           —          7        —           —     

Other

     2        —           —          2        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 5      $ 1       $ 3      $ 4      $ —         $ 4   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 19      $ —         $ 1      $ 18      $ —         $ 1   

Interest cost on benefit obligation

     43        1         8        45        1         9   

Expected return on plan assets

     (75     —           (5     (73     —           (5

Amortization of prior service credit

     —          —           (3     —          —           (3

Amortization of net transition liability

     —          —           5        —          —           5   

Amortization of loss

     18        —           1        14        —           1   

Other

     4        —           —          4        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 9      $ 1       $ 7      $ 8      $ 1       $ 8   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

See Note 17 for additional information related to amounts reflected on Duke Energy Carolinas' Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Carolinas by Duke Energy.

Duke Energy Ohio

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Qualified
pension
plans(a)
 
     (in millions)  

Service cost

   $ 1      $ 1   

Interest cost on projected benefit obligation

     8        8   

Expected return on plan assets

     (11     (9

Amortization of loss

     2        1   

Other

     1        —     
  

 

 

   

 

 

 

Net periodic costs

   $ 1      $ 1   
  

 

 

   

 

 

 

 

(a) Excludes regulatory asset amortization of $1 million and $2 million for the three months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 3      $ —        $ 3      $ —     

Interest cost on projected benefit obligation

     16        1        17        1   

Expected return on plan assets

     (22     —          (21     —     

Amortization of loss (gain)

     4        (1     2        (1

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 2      $ —        $ 2      $ —     
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Excludes regulatory asset amortization of $3 million and $4 million for the six months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b) Excludes regulatory asset amortization of $1 million for each of the six months ended June 30, 2011 and 2010, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

Components of net periodic costs for Duke Energy Ohio's non-qualified pension plans were an insignificant amount for the three and six months ended June 30, 2011 and 2010. Components of net periodic costs for Duke Energy Ohio's other post-retirement benefit plans were an insignificant amount for the three months ended June 30, 2011 and 2010.

See Note 17 for additional information related to amounts reflected on Duke Energy Ohio's Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Ohio by Duke Energy.

Duke Energy Indiana

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 2      $ —        $ 2      $ —     

Interest cost on projected benefit obligation

     8        2        8        2   

Expected return on plan assets

     (11     (1     (11     (1 )

Amortization of prior service cost

     1       —          —          —     

Amortization of loss

     3        1        4        1  

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 4      $ 2      $ 4      $ 2   
  

 

 

   

 

 

   

 

 

   

 

 

 
     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 5      $ —        $ 5      $ —     

Interest cost on projected benefit obligation

     15        4        16        4   

Expected return on plan assets

     (22     (1     (22     (1

Amortization of prior service cost

     1        —          1        —     

Amortization of loss

     7        1        6        1  

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 7      $ 4      $ 7      $ 4   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Components of net periodic costs for Duke Energy Indiana's non-qualified pension plans were an insignificant amount for the three and six months ended June 30, 2011 and 2010.

See Note 17 for additional information related to amounts reflected on Duke Energy Indiana's Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Indiana by Duke Energy.

Employee Savings Plan

Duke Energy sponsors employee savings plans that cover substantially all U.S. employees. Duke Energy made pre-tax employer matching contributions of $19 million and $50 million during the three and six months ended June 30, 2011, respectively. Duke Energy made pre-tax employer matching contributions of $18 million and $49 million during the three and six months ended June 30, 2010, respectively.

The Subsidiary Registrants participate in Duke Energy sponsored employee savings plans. The following table shows the respective Subsidiary Registrants' expense related to its proportionate share of pre-tax employer matching contributions.

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2011      2010      2011      2010  
     (in millions)  

Duke Energy Carolinas

   $ 8       $ 8       $ 20       $ 20   

Duke Energy Ohio

     1         1         2         3   

Duke Energy Indiana

     2         1         5         4   
Duke Energy Carolinas [Member]
 
Employee Benefit Obligations

14. Employee Benefit Obligations

Net periodic benefit costs disclosed in the tables below for the qualified pension, non-qualified pension and other post-retirement benefit plans represent the cost of the respective benefit plan to the Duke Energy Registrants 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.

Duke Energy

The following table shows the components of the net periodic benefit costs for the Duke Energy U.S. qualified and non-qualified pension plans and other post-retirement benefit plans.

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 24      $ 1       $ 3      $ 24      $ —         $ 2   

Interest cost on benefit obligation

     58        2         9        62        2         11   

Expected return on plan assets

     (96     —           (4     (95     —           (4

Amortization of prior service cost (credit)

     1        —           (2     2        —           (5

Amortization of net transition liability

     —          —           2        —          —           2   

Amortization of loss (gain)

     19        —           (1     13        —           1   

Other

     5        —           —          4        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 11      $ 3       $ 7      $ 10      $ 2       $ 7   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

(a) Excludes regulatory asset amortization of $3 million and $4 million for the three months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b) Excludes regulatory asset amortization of $2 million and $3 million for the three months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 48      $ 1       $ 4      $ 48      $ 1       $ 4   

Interest cost on benefit obligation

     116        4         18        124        4         20   

Expected return on plan assets

     (192     —           (8     (189     —           (8

Amortization of prior service cost (credit)

     3        1         (4     3        1         (8

Amortization of net transition liability

     —          —           5        —          —           4   

Amortization of loss (gain)

     38        —           (2     25        —           2   

Contractual termination benefit cost

     —          —           —          10        —           —     

Other

     9        —           —          9        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 22      $ 6       $ 13      $ 30      $ 6       $ 14   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

(a) Excludes regulatory asset amortization of $7 million and $8 million for the six months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b) Excludes regulatory asset amortization of $4 million and $5 million for the six months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

Each of the Subsidiary Registrants participate in qualified pension plans, non-qualified pension plans and other post-retirement benefit plans sponsored by Duke Energy. The net periodic benefit costs shown in the tables below represent the allocated cost of the respective benefit plan for the periods presented. Additionally, the Subsidiary Registrants are allocated their proportionate share of pension and other post-retirement benefit cost for employees of Duke Energy's shared services affiliate that provide support to the respective Subsidiary Registrant. These allocated amounts are included in the governance and shared services costs for each Subsidiary Registrant discussed in Note 17.

 

Duke Energy Carolinas

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 10      $ —         $ 1      $ 9      $ —         $ 1   

Interest cost on benefit obligation

     22        1         4        22        —           5   

Expected return on plan assets

     (38     —           (3     (36     —           (3

Amortization of prior service credit

     —          —           (2     —          —           (2

Amortization of net transition liability

     —          —           3        —          —           3   

Amortization of loss

     9        —           —          7        —           —     

Other

     2        —           —          2        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 5      $ 1       $ 3      $ 4      $ —         $ 4   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 19      $ —         $ 1      $ 18      $ —         $ 1   

Interest cost on benefit obligation

     43        1         8        45        1         9   

Expected return on plan assets

     (75     —           (5     (73     —           (5

Amortization of prior service credit

     —          —           (3     —          —           (3

Amortization of net transition liability

     —          —           5        —          —           5   

Amortization of loss

     18        —           1        14        —           1   

Other

     4        —           —          4        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 9      $ 1       $ 7      $ 8      $ 1       $ 8   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

See Note 17 for additional information related to amounts reflected on Duke Energy Carolinas' Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Carolinas by Duke Energy.

Duke Energy Ohio

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Qualified
pension
plans(a)
 
     (in millions)  

Service cost

   $ 1      $ 1   

Interest cost on projected benefit obligation

     8        8   

Expected return on plan assets

     (11     (9

Amortization of loss

     2        1   

Other

     1        —     
  

 

 

   

 

 

 

Net periodic costs

   $ 1      $ 1   
  

 

 

   

 

 

 

 

(a) Excludes regulatory asset amortization of $1 million and $2 million for the three months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 3      $ —        $ 3      $ —     

Interest cost on projected benefit obligation

     16        1        17        1   

Expected return on plan assets

     (22     —          (21     —     

Amortization of loss (gain)

     4        (1     2        (1

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 2      $ —        $ 2      $ —     
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Excludes regulatory asset amortization of $3 million and $4 million for the six months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b) Excludes regulatory asset amortization of $1 million for each of the six months ended June 30, 2011 and 2010, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

Components of net periodic costs for Duke Energy Ohio's non-qualified pension plans were an insignificant amount for the three and six months ended June 30, 2011 and 2010. Components of net periodic costs for Duke Energy Ohio's other post-retirement benefit plans were an insignificant amount for the three months ended June 30, 2011 and 2010.

See Note 17 for additional information related to amounts reflected on Duke Energy Ohio's Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Ohio by Duke Energy.

Duke Energy Indiana

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 2      $ —        $ 2      $ —     

Interest cost on projected benefit obligation

     8        2        8        2   

Expected return on plan assets

     (11     (1     (11     (1 )

Amortization of prior service cost

     1       —          —          —     

Amortization of loss

     3        1        4        1  

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 4      $ 2      $ 4      $ 2   
  

 

 

   

 

 

   

 

 

   

 

 

 
     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 5      $ —        $ 5      $ —     

Interest cost on projected benefit obligation

     15        4        16        4   

Expected return on plan assets

     (22     (1     (22     (1

Amortization of prior service cost

     1        —          1        —     

Amortization of loss

     7        1        6        1  

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 7      $ 4      $ 7      $ 4   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Components of net periodic costs for Duke Energy Indiana's non-qualified pension plans were an insignificant amount for the three and six months ended June 30, 2011 and 2010.

See Note 17 for additional information related to amounts reflected on Duke Energy Indiana's Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Indiana by Duke Energy.

Employee Savings Plan

Duke Energy sponsors employee savings plans that cover substantially all U.S. employees. Duke Energy made pre-tax employer matching contributions of $19 million and $50 million during the three and six months ended June 30, 2011, respectively. Duke Energy made pre-tax employer matching contributions of $18 million and $49 million during the three and six months ended June 30, 2010, respectively.

The Subsidiary Registrants participate in Duke Energy sponsored employee savings plans. The following table shows the respective Subsidiary Registrants' expense related to its proportionate share of pre-tax employer matching contributions.

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2011      2010      2011      2010  
     (in millions)  

Duke Energy Carolinas

   $ 8       $ 8       $ 20       $ 20   

Duke Energy Ohio

     1         1         2         3   

Duke Energy Indiana

     2         1         5         4   
Duke Energy Indiana [Member]
 
Employee Benefit Obligations

14. Employee Benefit Obligations

Net periodic benefit costs disclosed in the tables below for the qualified pension, non-qualified pension and other post-retirement benefit plans represent the cost of the respective benefit plan to the Duke Energy Registrants 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.

Duke Energy

The following table shows the components of the net periodic benefit costs for the Duke Energy U.S. qualified and non-qualified pension plans and other post-retirement benefit plans.

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 24      $ 1       $ 3      $ 24      $ —         $ 2   

Interest cost on benefit obligation

     58        2         9        62        2         11   

Expected return on plan assets

     (96     —           (4     (95     —           (4

Amortization of prior service cost (credit)

     1        —           (2     2        —           (5

Amortization of net transition liability

     —          —           2        —          —           2   

Amortization of loss (gain)

     19        —           (1     13        —           1   

Other

     5        —           —          4        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 11      $ 3       $ 7      $ 10      $ 2       $ 7   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

(a) Excludes regulatory asset amortization of $3 million and $4 million for the three months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b) Excludes regulatory asset amortization of $2 million and $3 million for the three months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 48      $ 1       $ 4      $ 48      $ 1       $ 4   

Interest cost on benefit obligation

     116        4         18        124        4         20   

Expected return on plan assets

     (192     —           (8     (189     —           (8

Amortization of prior service cost (credit)

     3        1         (4     3        1         (8

Amortization of net transition liability

     —          —           5        —          —           4   

Amortization of loss (gain)

     38        —           (2     25        —           2   

Contractual termination benefit cost

     —          —           —          10        —           —     

Other

     9        —           —          9        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 22      $ 6       $ 13      $ 30      $ 6       $ 14   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

(a) Excludes regulatory asset amortization of $7 million and $8 million for the six months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b) Excludes regulatory asset amortization of $4 million and $5 million for the six months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

Each of the Subsidiary Registrants participate in qualified pension plans, non-qualified pension plans and other post-retirement benefit plans sponsored by Duke Energy. The net periodic benefit costs shown in the tables below represent the allocated cost of the respective benefit plan for the periods presented. Additionally, the Subsidiary Registrants are allocated their proportionate share of pension and other post-retirement benefit cost for employees of Duke Energy's shared services affiliate that provide support to the respective Subsidiary Registrant. These allocated amounts are included in the governance and shared services costs for each Subsidiary Registrant discussed in Note 17.

 

Duke Energy Carolinas

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 10      $ —         $ 1      $ 9      $ —         $ 1   

Interest cost on benefit obligation

     22        1         4        22        —           5   

Expected return on plan assets

     (38     —           (3     (36     —           (3

Amortization of prior service credit

     —          —           (2     —          —           (2

Amortization of net transition liability

     —          —           3        —          —           3   

Amortization of loss

     9        —           —          7        —           —     

Other

     2        —           —          2        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 5      $ 1       $ 3      $ 4      $ —         $ 4   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 19      $ —         $ 1      $ 18      $ —         $ 1   

Interest cost on benefit obligation

     43        1         8        45        1         9   

Expected return on plan assets

     (75     —           (5     (73     —           (5

Amortization of prior service credit

     —          —           (3     —          —           (3

Amortization of net transition liability

     —          —           5        —          —           5   

Amortization of loss

     18        —           1        14        —           1   

Other

     4        —           —          4        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 9      $ 1       $ 7      $ 8      $ 1       $ 8   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

See Note 17 for additional information related to amounts reflected on Duke Energy Carolinas' Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Carolinas by Duke Energy.

Duke Energy Ohio

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Qualified
pension
plans(a)
 
     (in millions)  

Service cost

   $ 1      $ 1   

Interest cost on projected benefit obligation

     8        8   

Expected return on plan assets

     (11     (9

Amortization of loss

     2        1   

Other

     1        —     
  

 

 

   

 

 

 

Net periodic costs

   $ 1      $ 1   
  

 

 

   

 

 

 

 

(a) Excludes regulatory asset amortization of $1 million and $2 million for the three months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 3      $ —        $ 3      $ —     

Interest cost on projected benefit obligation

     16        1        17        1   

Expected return on plan assets

     (22     —          (21     —     

Amortization of loss (gain)

     4        (1     2        (1

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 2      $ —        $ 2      $ —     
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Excludes regulatory asset amortization of $3 million and $4 million for the six months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b) Excludes regulatory asset amortization of $1 million for each of the six months ended June 30, 2011 and 2010, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

Components of net periodic costs for Duke Energy Ohio's non-qualified pension plans were an insignificant amount for the three and six months ended June 30, 2011 and 2010. Components of net periodic costs for Duke Energy Ohio's other post-retirement benefit plans were an insignificant amount for the three months ended June 30, 2011 and 2010.

See Note 17 for additional information related to amounts reflected on Duke Energy Ohio's Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Ohio by Duke Energy.

Duke Energy Indiana

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 2      $ —        $ 2      $ —     

Interest cost on projected benefit obligation

     8        2        8        2   

Expected return on plan assets

     (11     (1     (11     (1 )

Amortization of prior service cost

     1       —          —          —     

Amortization of loss

     3        1        4        1  

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 4      $ 2      $ 4      $ 2   
  

 

 

   

 

 

   

 

 

   

 

 

 
     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 5      $ —        $ 5      $ —     

Interest cost on projected benefit obligation

     15        4        16        4   

Expected return on plan assets

     (22     (1     (22     (1

Amortization of prior service cost

     1        —          1        —     

Amortization of loss

     7        1        6        1  

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 7      $ 4      $ 7      $ 4   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Components of net periodic costs for Duke Energy Indiana's non-qualified pension plans were an insignificant amount for the three and six months ended June 30, 2011 and 2010.

See Note 17 for additional information related to amounts reflected on Duke Energy Indiana's Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Indiana by Duke Energy.

Employee Savings Plan

Duke Energy sponsors employee savings plans that cover substantially all U.S. employees. Duke Energy made pre-tax employer matching contributions of $19 million and $50 million during the three and six months ended June 30, 2011, respectively. Duke Energy made pre-tax employer matching contributions of $18 million and $49 million during the three and six months ended June 30, 2010, respectively.

The Subsidiary Registrants participate in Duke Energy sponsored employee savings plans. The following table shows the respective Subsidiary Registrants' expense related to its proportionate share of pre-tax employer matching contributions.

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2011      2010      2011      2010  
     (in millions)  

Duke Energy Carolinas

   $ 8       $ 8       $ 20       $ 20   

Duke Energy Ohio

     1         1         2         3   

Duke Energy Indiana

     2         1         5         4   
Duke Energy Ohio [Member]
 
Employee Benefit Obligations

14. Employee Benefit Obligations

Net periodic benefit costs disclosed in the tables below for the qualified pension, non-qualified pension and other post-retirement benefit plans represent the cost of the respective benefit plan to the Duke Energy Registrants 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.

Duke Energy

The following table shows the components of the net periodic benefit costs for the Duke Energy U.S. qualified and non-qualified pension plans and other post-retirement benefit plans.

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 24      $ 1       $ 3      $ 24      $ —         $ 2   

Interest cost on benefit obligation

     58        2         9        62        2         11   

Expected return on plan assets

     (96     —           (4     (95     —           (4

Amortization of prior service cost (credit)

     1        —           (2     2        —           (5

Amortization of net transition liability

     —          —           2        —          —           2   

Amortization of loss (gain)

     19        —           (1     13        —           1   

Other

     5        —           —          4        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 11      $ 3       $ 7      $ 10      $ 2       $ 7   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

(a) Excludes regulatory asset amortization of $3 million and $4 million for the three months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b) Excludes regulatory asset amortization of $2 million and $3 million for the three months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 48      $ 1       $ 4      $ 48      $ 1       $ 4   

Interest cost on benefit obligation

     116        4         18        124        4         20   

Expected return on plan assets

     (192     —           (8     (189     —           (8

Amortization of prior service cost (credit)

     3        1         (4     3        1         (8

Amortization of net transition liability

     —          —           5        —          —           4   

Amortization of loss (gain)

     38        —           (2     25        —           2   

Contractual termination benefit cost

     —          —           —          10        —           —     

Other

     9        —           —          9        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 22      $ 6       $ 13      $ 30      $ 6       $ 14   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

(a) Excludes regulatory asset amortization of $7 million and $8 million for the six months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b) Excludes regulatory asset amortization of $4 million and $5 million for the six months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

Each of the Subsidiary Registrants participate in qualified pension plans, non-qualified pension plans and other post-retirement benefit plans sponsored by Duke Energy. The net periodic benefit costs shown in the tables below represent the allocated cost of the respective benefit plan for the periods presented. Additionally, the Subsidiary Registrants are allocated their proportionate share of pension and other post-retirement benefit cost for employees of Duke Energy's shared services affiliate that provide support to the respective Subsidiary Registrant. These allocated amounts are included in the governance and shared services costs for each Subsidiary Registrant discussed in Note 17.

 

Duke Energy Carolinas

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 10      $ —         $ 1      $ 9      $ —         $ 1   

Interest cost on benefit obligation

     22        1         4        22        —           5   

Expected return on plan assets

     (38     —           (3     (36     —           (3

Amortization of prior service credit

     —          —           (2     —          —           (2

Amortization of net transition liability

     —          —           3        —          —           3   

Amortization of loss

     9        —           —          7        —           —     

Other

     2        —           —          2        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 5      $ 1       $ 3      $ 4      $ —         $ 4   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Non-
Qualified
pension
plans
     Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 19      $ —         $ 1      $ 18      $ —         $ 1   

Interest cost on benefit obligation

     43        1         8        45        1         9   

Expected return on plan assets

     (75     —           (5     (73     —           (5

Amortization of prior service credit

     —          —           (3     —          —           (3

Amortization of net transition liability

     —          —           5        —          —           5   

Amortization of loss

     18        —           1        14        —           1   

Other

     4        —           —          4        —           —     
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Net periodic costs

   $ 9      $ 1       $ 7      $ 8      $ 1       $ 8   
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

See Note 17 for additional information related to amounts reflected on Duke Energy Carolinas' Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Carolinas by Duke Energy.

Duke Energy Ohio

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Qualified
pension
plans(a)
 
     (in millions)  

Service cost

   $ 1      $ 1   

Interest cost on projected benefit obligation

     8        8   

Expected return on plan assets

     (11     (9

Amortization of loss

     2        1   

Other

     1        —     
  

 

 

   

 

 

 

Net periodic costs

   $ 1      $ 1   
  

 

 

   

 

 

 

 

(a) Excludes regulatory asset amortization of $1 million and $2 million for the three months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

 

     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans(a)
    Other Post-
Retirement
Benefit
plans(b)
    Qualified
pension
plans(a)
    Other Post-
Retirement
Benefit
plans(b)
 
     (in millions)  

Service cost

   $ 3      $ —        $ 3      $ —     

Interest cost on projected benefit obligation

     16        1        17        1   

Expected return on plan assets

     (22     —          (21     —     

Amortization of loss (gain)

     4        (1     2        (1

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 2      $ —        $ 2      $ —     
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Excludes regulatory asset amortization of $3 million and $4 million for the six months ended June 30, 2011 and 2010, respectively, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.
(b) Excludes regulatory asset amortization of $1 million for each of the six months ended June 30, 2011 and 2010, resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

Components of net periodic costs for Duke Energy Ohio's non-qualified pension plans were an insignificant amount for the three and six months ended June 30, 2011 and 2010. Components of net periodic costs for Duke Energy Ohio's other post-retirement benefit plans were an insignificant amount for the three months ended June 30, 2011 and 2010.

See Note 17 for additional information related to amounts reflected on Duke Energy Ohio's Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Ohio by Duke Energy.

Duke Energy Indiana

 

     Three Months Ended
June 30, 2011
    Three Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 2      $ —        $ 2      $ —     

Interest cost on projected benefit obligation

     8        2        8        2   

Expected return on plan assets

     (11     (1     (11     (1 )

Amortization of prior service cost

     1       —          —          —     

Amortization of loss

     3        1        4        1  

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 4      $ 2      $ 4      $ 2   
  

 

 

   

 

 

   

 

 

   

 

 

 
     Six Months Ended
June 30, 2011
    Six Months Ended
June 30, 2010
 
     Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
    Qualified
pension
plans
    Other Post-
Retirement
Benefit
plans
 
     (in millions)  

Service cost

   $ 5      $ —        $ 5      $ —     

Interest cost on projected benefit obligation

     15        4        16        4   

Expected return on plan assets

     (22     (1     (22     (1

Amortization of prior service cost

     1        —          1        —     

Amortization of loss

     7        1        6        1  

Other

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic costs

   $ 7      $ 4      $ 7      $ 4   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Components of net periodic costs for Duke Energy Indiana's non-qualified pension plans were an insignificant amount for the three and six months ended June 30, 2011 and 2010.

See Note 17 for additional information related to amounts reflected on Duke Energy Indiana's Condensed Consolidated Balance Sheets associated with obligations related to qualified pension plans, non-qualified pension plans and other post-retirement benefit plans, which are allocated to Duke Energy Indiana by Duke Energy.

Employee Savings Plan

Duke Energy sponsors employee savings plans that cover substantially all U.S. employees. Duke Energy made pre-tax employer matching contributions of $19 million and $50 million during the three and six months ended June 30, 2011, respectively. Duke Energy made pre-tax employer matching contributions of $18 million and $49 million during the three and six months ended June 30, 2010, respectively.

The Subsidiary Registrants participate in Duke Energy sponsored employee savings plans. The following table shows the respective Subsidiary Registrants' expense related to its proportionate share of pre-tax employer matching contributions.

 

     Three Months Ended
June 30,
     Six Months Ended
June 30,
 
     2011      2010      2011      2010  
     (in millions)  

Duke Energy Carolinas

   $ 8       $ 8       $ 20       $ 20   

Duke Energy Ohio

     1         1         2         3   

Duke Energy Indiana

     2         1         5         4