Notes to Consolidated Financial Statements for the
Years Ended December 31, 2001, 2000 and 1999
12. GUARANTEED PREFERRED BENEFICIAL INTERESTS IN SUBORDINATED NOTES OF DUKE ENERGY OR SUBSIDIARIES
Duke Energy and one of its subsidiaries have formed business trusts for which they own all the common securities. The trusts issue and sell preferred securities and invest the gross proceeds in junior subordinated notes issued by the respective parent companies.
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5. | Joint Ownership of Generating Facilities |
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6. | Income Taxes |
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7. | Derivative Instruments, Hedging Activities and Credit Risk |
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8. | Investment in Affiliates and Related Party Transactions |
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9. | Property, Plant and Equipment |
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10. | Debt and Credit Facilities |
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11. | Nuclear Decommissioning Costs |
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12. |
Guaranteed Preferred Beneficial Interests in Subordinated Notes of Duke Energy or Subsidiaries |
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13. | Minority Interest Financing |
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14. | Preferred and Preference Stock |
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15. | Commitments and Contingencies |
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16. | Common Stock and Equity Offerings |
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17. | Stock-Based Compensation |
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18. | Employee Benefit Plans |
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19. | Quarterly Financial Data (Unaudited) |
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20. | Subsequent Event |
| TRUST PREFERRED SECURITIES | ||||||||||||||||
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| In millions | December 31 | |||||||||||||||
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Issued | Rate | Due | |
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2001 | |
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2000 | |
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| 1997 | 7. | 20 | % | 2037 | $ | 350 | $ | 350 | ||||||||
| 1998 | 7. | 375 | % | 2038 | 350 | 350 | ||||||||||
| 1998 | 7. | 375 | % | 2038 | 250 | 250 | ||||||||||
| 1999 | 8. | 375 | % | 2029 | 250 | 250 | ||||||||||
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1999 |
7. | 20 | % | 2039 | 250 | 250 | ||||||||||
| Unamortized debt discount | (43 | ) | (44 | ) | ||||||||||||
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| $ | 1,407 | $ | 1,406 | |||||||||||||
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These trust preferred securities represent preferred undivided beneficial interests in the assets of the respective trusts. Distribution payments on these preferred securities are guaranteed by the respective parent companies, but only to the extent that the trusts have funds legally and immediately available to make distributions. Dividends related to the trust preferred securities were $108 million for 2001, $108 million for 2000 and $87 million for 1999, and have been included in the Consolidated Statements of Income as Minority Interest Expense.
