Consolidated Statements of Common Stockholders’ Equity and Comprehensive Income

                  Accumulated Other Comprehensive Income (Loss)    
(In millions) Common Stock Shares   Common Stock   Additional Paid-in Capital   Retained Earnings   Foreign Currency Adjustments   Net Gains (Losses) on Cash Flow Hedges   Minimum Pension Liability Adjustment   SFAS No.158 Adjustment   Other   Total
Balance December 31, 2003 911   $ 9,513   $ –   $ 4,066   $ 315   $ 298   $ (444)   $ –   $ –   $ 13,748
Net income –   –   –   1,490   –   –   –   –   –   1,490
Other Comprehensive Income                                      
Foreign currency translation adjustments –   –   –   –   279   –   –   –   –   279
Foreign currency translation adjustments reclassified into earnings as a result of the sale of Asia-Pacific Business –   –   –   –   (54)   –   –   –   –   (54)
Net unrealized gains on cash flow hedgesb –   –   –   –   –   311   –   –   –   311
Reclassification into earnings from cash flow hedgesc –   –   –   –   –   (83)   –   –   –   (83)
Minimum pension liability adjustmentd –   –   –   –   –   –   28   –   –   28
Total comprehensive income                                     1,971
Dividend reinvestment and employee benefits 5   128   –   –   –   –   –   –   –   128
Equity offering 41   1,625   –   –   –   –   –   –   –   1,625
Common stock dividends –   –   –   (1,018)   –   –   –   –   –   (1,018)
Preferred and preference stock dividends –   –   –   (9)   –   –   –   –   –   (9)
Other capital stock transactions, net –   –   –   (4)   –   –   –   –   –   (4)
Balance December 31, 2004 957   $ 11,266   $ –   $ 4,525   $ 540   $ 526   $ (416)   $ –   $ –   $ 16,441
Net income –   –   –   1,824   –   –   –   –   –   1,824
Other Comprehensive Income                                      
Foreign currency translation adjustmentsa –   –   –   –   306   –   –   –   –   306
Net unrealized gains on cash flow hedgesb –   –   –   –   –   413   –   –   –   413
Reclassification into earnings from cash flow hedgesc –   –   –   –   –   (1,026)   –   –   –   (1,026)
Minimum pension liability adjustmentd –   –   –   –   –   –   356   –   –   356
Otherf –   –   –   –   –   –   –   –   17   17
Total comprehensive income                                     1,890
Dividend reinvestment and employee benefits 3   85   –   –   –   –   –   –   –   85
Stock repurchase (33)   (933)   –   –   –   –   –   –   –   (933)
Conversion of debt 1   28   –   –   –   –   –   –   –   28
Common stock dividends –   –   –   (1,093)   –   –   –   –   –   (1,093)
Preferred and preference stock dividends –   –   –   (12)   –   –   –   –   –   (12)
Other capital stock transactions, net –   –   –   33   –   –   –   –   –   33
Balance December 31, 2005 928   $ 10,446   $ –   $ 5,277   $ 846   $ (87)   $ (60)   $ –   $ 17   $ 16,439
Net income –   –   –   1,863   –   –   –   –   –   1,863
Other Comprehensive Income                                      
Foreign currency translation adjustments –   –   –   –   103   –   –   –   –   103
Net unrealized gains on cash flow hedgesb –   –   –   –   –   6   –   –   –   6
Reclassification into earnings from cash flow hedgesc –   –   –   –   –   36   –   –   –   36
Minimum pension liability adjustmentd –   –   –   –   –   –   (1)   –   –   (1)
Otherf –   –   –   –   –   –   –   –   (15)   (15)
Total comprehensive income                                     1,992
Retirement of old Duke Energy shares (927)   (10,399)   –   –   –   –   –   –   –   (10,399)
Issuance of new Duke Energy shares 927   1   10,398   –   –   –   –   –   –   10,399
Common stock issued in connection with Cinergy merger 313   –   8,993   –   –   –   –   –   –   8,993
Conversion of Cinergy options to Duke Energy options –   –   59   –   –   –   –   –   –   59
Dividend reinvestment and employee benefits 6   22   172   –   –   –   –   –   –   194
Stock repurchase (17)   (69)   (431)   –   –   –   –   –   –   (500)
Common stock dividends –   –   –   (1,488)   –   –   –   –   –   (1,488)
Conversion of debt to equity 27   –   632   –   –   –   –   –   –   632
Tax benefit due to conversion of debt to equity –   –   34   –   –   –   –   –   –   34
Adjustment due to SFAS No. 158 adoptione –   –   –   –   –   –   61   (311)   –   (250)
Other capital stock transactions, net –   –   (3)   –   –   –   –   –   –   (3)
Balance December 31, 2006 1,257   $ 1   $ 19,854   $ 5,652   $ 949   $ (45)   $ –   $ (311)   $ 2   $ 26,102

 

(a) Foreign currency translation adjustments, net of $62 tax benefit in 2005. The 2005 tax benefit related to the settled net investment hedges (see Note 8 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K). Substantially all of the 2005 tax benefit is a correction of an immaterial accounting error related to prior periods.

(b) Net unrealized gains on cash flow hedges, net of $3 tax expense in 2006, $233 tax expense in 2005, and $170 tax expense in 2004.

(c) Reclassification into earnings from cash flow hedges, net of $19 tax expense in 2006, $583 tax benefit in 2005, and $45 tax benefit in 2004. Reclassification into earnings from cash flow hedges in 2006, is due primarily to the recognition of Duke Energy North America’s (DENA) unrealized net gains related to hedges on forecasted transactions which will no longer occur as a result of the sale to LS Power of substantially all of DENA’s assets and contracts outside of the Midwestern United States and certain contractual positions related to the Midwestern assets (see Notes 8 and 13 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K).

(d) Minimum pension liability adjustment, net of $0 tax benefit in 2006, $228 tax expense in 2005, and $18 tax expense in 2004.

(e) Adjustment due to SFAS No. 158 adoption, net of $144 tax benefit in 2006. Excludes $595 recorded as a regulatory asset (see Note 22 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K).

(f) Net of $9 tax benefit in 2006, and $10 tax expense in 2005.

See Notes to Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K.