XML 118 R12.htm IDEA: XBRL DOCUMENT

Property, Plant & Equipment

12 Months Ended

Dec. 31, 2012

3. PROPERTY, PLANT AND EQUIPMENT

The following table summarizes the components of the electric generation and distribution assets and other property, plant and equipment with their estimated useful lives. The amounts are stated net of impairment losses recognized as further discussed in Note 21—Asset Impairment Expense.

	Estimated	December 31,
	Useful Life	2012		2011

	(in years)	(in millions)
Electric generation and distribution facilities	5 - 68	$	27,586	$	26,821
Other buildings	3 - 50		2,840		2,924
Furniture, fixtures and equipment	3 - 31		472		476
Other	1 - 46		939		847
Total electric generation and distribution assets and other			31,837		31,068
Accumulated depreciation			(9,723)		(8,944)
Net electric generation and distribution assets and other⁽¹⁾⁽²⁾		$	22,114	$	22,124

Net electric generation and distribution assets and other related to our held for sale businesses of $1.2 billion as of December 31, 2011, were excluded from the table above and were included in the noncurrent assets of discontinued and held for sale businesses in the consolidated balance sheet. There were no amounts excluded as of December 31, 2012.
Net electric generation and distribution assets, and other include unamortized internal use software costs of $153 million and $156 million as of December 31, 2012 and 2011, respectively.

The following table summarizes depreciation expense (including the amortization of assets recorded under capital leases), amortization of internal use software and interest capitalized during development and construction on qualifying assets for the years ended December 31, 2012, 2011 and 2010:


		2012		2011		2010

		(in millions)
Depreciation expense (including amortization of assets
	recorded under capital leases)	$	1,251	$	1,154	$	1,010
Amortization of internal use software			48		46		50
Interest capitalized during development and construction			111		176		188

Property, plant and equipment, net of accumulated depreciation, of $16.0 billion and $15.2 billion was mortgaged, pledged or subject to liens as of December 31, 2012 and 2011, respectively.

The following table summarizes regulated and non-regulated generation and distribution property, plant and equipment and accumulated depreciation as of December 31, 2012 and 2011:

	December 31,
	2012		2011

	(in millions)
Regulated assets	$	14,650	$	14,398
Regulated accumulated depreciation		(5,221)		(5,029)
Regulated generation, distribution assets and other, net		9,429		9,369
Non-regulated assets		17,187		16,670
Non-regulated accumulated depreciation		(4,502)		(3,915)
Non-regulated generation, distribution assets and other, net		12,685		12,755
Net electric generation and distribution assets and other	$	22,114	$	22,124

The following table summarizes the amounts recognized, which were related to asset retirement obligations, for the years ended December 31, 2012 and 2011:

	2012		2011

	(in millions)
Balance at January 1	$	117	$	88
Additional liabilities incurred		3		1
Assumed in business combination		-		24
Liabilities settled		(3)		-
Accretion expense		7		6
Change in estimated cash flows		3		(1)
Translation adjustments		1		(1)
Balance at December 31	$	128	$	117

The Company's asset retirement obligations covered by the relevant guidance primarily include active ash landfills, water treatment basins and the removal or dismantlement of certain plant and equipment. There were no legally restricted assets for purposes of settling asset retirement obligations at December 31, 2012. The fair value of legally restricted assets for purposes of settling asset retirement obligations was $1 million at December 31, 2011.

Ownership of Coal-Fired Facilities

DP&L has undivided ownership interests in seven coal-fired generation facilities jointly owned with other utilities. As of December 31, 2012, DP&L had $36 million of construction work in process at such facilities. DP&L's share of the operating costs of such facilities is included in Cost of Sales in the Consolidated Statement of Operations and its share of investment in the facilities is included in Property, Plant and Equipment in the Consolidated Balance Sheet. DP&L's undivided ownership interest in such facilities at December 31, 2012 is as follows:

		DP&L Share		DP&L Investment

			Production	Gross				Construction
			Capacity	Plant		Accumulated		Work In
		Ownership	(MW)	In Service		Depreciation		Process

				($ in millions)

Production units:
	Beckjord Unit 6	50%	207	$	-	$	-	$	-
	Conesville Unit 4	17%	129		41		3		11
	East Bend Station	31%	186		8		2		3
	Killen Station	67%	402		299		-		5
	Miami Fort Units 7 and 8	36%	368		213		7		3
	Stuart Station	35%	808		200		6		12
	Zimmer Station	28%	365		169		12		2
Transmission		various	-		39		3		-
	Total		2,465	$	969	$	33	$	36

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details