4th Quarter 2016 Statistical Supplement
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| | | | |
| Table of Contents | | | |
| | | | | |
| DUKE ENERGY CORPORATION (Unaudited) | | Electric and Natural Gas Revenues by Customer Class |
| Consolidating Statements of Operations | | | Revenues by Customer Class (Unaudited) |
| Consolidating Balance Sheets | | | |
| | | | Non-GAAP Disclosures (Unaudited) |
| Electric Utilities and Infrastructure (Unaudited) | | | Reported to Adjusted Earnings Reconciliations |
| Consolidating Segment Income | | | Non-GAAP Financial Measures |
| Consolidating Balance Sheets | | | |
| | | | | |
| Gas Utilities and Infrastructure (Unaudited) | | | |
| Consolidating Segment Income | | | |
| Consolidating Balance Sheets | | | |
| | | | | |
Duke Energy and Piedmont Natural Gas
This Statistical Supplement includes results of Piedmont Natural Gas subsequent to the acquisition on October 3, 2016, and should be read in conjunction with i) Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2016, ii) Piedmont's Form 10-K for the year ended October 31, 2016, and iii) Piedmont's Form 10-QT for the transition period from November 1, 2016 to December 31, 2016.
Segment Change
Due to the Piedmont acquisition and the sale of International Energy in the fourth quarter of 2016, Duke Energy's segment structure has been realigned to include the following segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure and Commercial Renewables. The remainder of Duke Energy’s operations is presented as Other. Other now includes the results of National Methanol Company (NMC), previously included in the International Energy segment, and the results of the Midwest Generation business that was sold in 2015, previously included in the former Commercial Portfolio segment.
Prior periods have been recast to conform to the current segment structure.
DUKE ENERGY CORPORATION
Consolidating Statements of Operations
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | |
| | Twelve Months Ended December 31, 2016 |
| (in millions) | Electric Utilities and Infrastructure |
| Gas
Utilities and Infrastructure |
| Commercial
Renewables |
| Other |
| International Energy |
| Eliminations /
Adjustments |
| Duke Energy |
|
| Operating Revenues | | | | | | | |
| Regulated electric | $ | 21,366 |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | (145 | ) | $ | 21,221 |
|
| Nonregulated electric and other | — |
| — |
| 484 |
| 127 |
| — |
| 48 |
| 659 |
|
| Regulated natural gas | — |
| 901 |
| — |
| (10 | ) | — |
| (28 | ) | 863 |
|
| Total operating revenues | 21,366 |
| 901 |
| 484 |
| 117 |
| — |
| (125 | ) | 22,743 |
|
| Operating Expenses | | | | | | | |
| Fuel used in electric generation and purchased power | 6,595 |
| — |
| — |
| 51 |
| — |
| (21 | ) | 6,625 |
|
| Cost of natural gas | — |
| 265 |
| — |
| — |
| — |
| — |
| 265 |
|
| Operation, maintenance and other | 5,293 |
| 186 |
| 337 |
| 371 |
| — |
| (102 | ) | 6,085 |
|
| Depreciation and amortization | 2,897 |
| 115 |
| 130 |
| 152 |
| — |
| — |
| 3,294 |
|
| Property and other taxes | 1,020 |
| 70 |
| 25 |
| 28 |
| — |
| (1 | ) | 1,142 |
|
| Impairment charges | 16 |
| — |
| — |
| 2 |
| — |
| — |
| 18 |
|
| Total operating expenses | 15,821 |
| 636 |
| 492 |
| 604 |
| — |
| (124 | ) | 17,429 |
|
| (Loss) Gains on Sales of Other Assets and Other, net | — |
| (1 | ) | 5 |
| 23 |
| — |
| — |
| 27 |
|
| Operating Income (Loss) | 5,545 |
| 264 |
| (3 | ) | (464 | ) | — |
| (1 | ) | 5,341 |
|
| Other Income and Expenses | | | | | | | |
Equity in earnings (losses) of unconsolidated affiliates(a) | 5 |
| 19 |
| (82 | ) | 43 |
| — |
| — |
| (15 | ) |
| Other income and expenses, net | 298 |
| 5 |
| (1 | ) | 32 |
| — |
| (10 | ) | 324 |
|
| Total Other Income and Expenses | 303 |
| 24 |
| (83 | ) | 75 |
| — |
| (10 | ) | 309 |
|
Interest Expense(b) | 1,136 |
| 46 |
| 53 |
| 693 |
| — |
| (12 | ) | 1,916 |
|
| Income (Loss) from Continuing Operations Before Income Taxes | 4,712 |
| 242 |
| (139 | ) | (1,082 | ) | — |
| 1 |
| 3,734 |
|
| Income Tax Expense (Benefit) from Continuing Operations | 1,672 |
| 90 |
| (160 | ) | (446 | ) | — |
| — |
| 1,156 |
|
| Income (Loss) from Continuing Operations | 3,040 |
| 152 |
| 21 |
| (636 | ) | — |
| 1 |
| 2,578 |
|
| Less: Net (Loss) Income Attributable to Noncontrolling Interest | — |
| — |
| (2 | ) | 9 |
| — |
| — |
| 7 |
|
| Segment Income / Other Net Expense | $ | 3,040 |
| $ | 152 |
| $ | 23 |
| $ | (645 | ) | $ | — |
| $ | 1 |
| $ | 2,571 |
|
Loss from Discontinued Operations, net of tax(c) | | | | | | | (419 | ) |
| Net Income Attributable to Duke Energy Corporation | | | | | | | $ | 2,152 |
|
| | | | | | | | |
| Segment Income / Other Net Expense | $ | 3,040 |
| $ | 152 |
| $ | 23 |
| $ | (645 | ) | $ | — |
| $ | 1 |
| $ | 2,571 |
|
| Special Items | — |
| — |
| 45 |
| 386 |
| 243 |
| (1 | ) | 673 |
|
Adjusted Earnings(d) | $ | 3,040 |
| $ | 152 |
| $ | 68 |
| $ | (259 | ) | $ | 243 |
| $ | — |
| $ | 3,244 |
|
| |
| (a) | Commercial Renewables includes a pretax impairment charge of $71 million related to certain equity method investments in wind projects. |
| |
| (b) | Other includes $234 million related to Piedmont acquisition financing, primarily due to losses on forward-starting interest rate swaps. |
| |
| (c) | Includes a loss on the sale of the International Disposal Group and an impairment charge related to certain assets in Central America, partially offset by the operating results of the International Disposal Group and a tax benefit related to previously sold businesses. |
| |
| (d) | See page 22 for a detailed reconciliation of Segment Income / Other Net Expense to Adjusted Earnings. |
DUKE ENERGY CORPORATION
Consolidating Statements of Operations
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | |
| | Twelve Months Ended December 31, 2015(a) |
| (in millions) | Electric Utilities and Infrastructure |
| Gas
Utilities and Infrastructure |
| Commercial
Renewables |
| Other |
| International Energy |
| Eliminations /
Adjustments |
| Duke Energy |
|
| Operating Revenues | | | | | | | |
| Regulated electric | $ | 21,521 |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | (142 | ) | $ | 21,379 |
|
| Nonregulated electric and other | — |
| — |
| 286 |
| 135 |
| — |
| 35 |
| 456 |
|
| Regulated natural gas | — |
| 541 |
| — |
| — |
| — |
| (5 | ) | 536 |
|
| Total operating revenues | 21,521 |
| 541 |
| 286 |
| 135 |
| — |
| (112 | ) | 22,371 |
|
| Operating Expenses | | | | | | | |
| Fuel used in electric generation and purchased power | 7,308 |
| — |
| — |
| 48 |
| — |
| (1 | ) | 7,355 |
|
| Cost of natural gas | — |
| 141 |
| — |
| — |
| — |
| — |
| 141 |
|
| Operation, maintenance and other | 5,138 |
| 126 |
| 197 |
| 188 |
| — |
| (110 | ) | 5,539 |
|
| Depreciation and amortization | 2,735 |
| 79 |
| 104 |
| 135 |
| — |
| — |
| 3,053 |
|
| Property and other taxes | 1,013 |
| 62 |
| 18 |
| 35 |
| — |
| 1 |
| 1,129 |
|
Impairment charges(b) | 101 |
| — |
| 3 |
| 3 |
| — |
| (1 | ) | 106 |
|
| Total operating expenses | 16,295 |
| 408 |
| 322 |
| 409 |
| — |
| (111 | ) | 17,323 |
|
| Gains on Sales of Other Assets and Other, net | 5 |
| 6 |
| 1 |
| 18 |
| — |
| — |
| 30 |
|
| Operating Income (Loss) | 5,231 |
| 139 |
| (35 | ) | (256 | ) | — |
| (1 | ) | 5,078 |
|
| Other Income and Expenses | | | | | | | |
| Equity in earnings (losses) of unconsolidated affiliates | (2 | ) | 1 |
| (6 | ) | 76 |
| — |
| — |
| 69 |
|
| Other income and expenses, net | 266 |
| 2 |
| 8 |
| 22 |
| — |
| (8 | ) | 290 |
|
| Total Other Income and Expenses | 264 |
| 3 |
| 2 |
| 98 |
| — |
| (8 | ) | 359 |
|
| Interest Expense | 1,074 |
| 25 |
| 44 |
| 393 |
| — |
| (9 | ) | 1,527 |
|
| Income (Loss) from Continuing Operations Before Income Taxes | 4,421 |
| 117 |
| (77 | ) | (551 | ) | — |
| — |
| 3,910 |
|
Income Tax Expense (Benefit) from Continuing Operations(c) | 1,602 |
| 44 |
| (128 | ) | (262 | ) | — |
| — |
| 1,256 |
|
| Income (Loss) from Continuing Operations | 2,819 |
| 73 |
| 51 |
| (289 | ) | — |
| — |
| 2,654 |
|
| Less: Net (Loss) Income Attributable to Noncontrolling Interest | ��� |
| — |
| (1 | ) | 10 |
| — |
| — |
| 9 |
|
| Segment Income (Loss) / Other Net Expense | $ | 2,819 |
| $ | 73 |
| $ | 52 |
| $ | (299 | ) | $ | — |
| $ | — |
| $ | 2,645 |
|
Income from Discontinued Operations, net of tax(d) | | | | | | | 171 |
|
| Net Income Attributable to Duke Energy Corporation | | | | | | | $ | 2,816 |
|
| | | | | | | | |
| Segment Income (Loss) / Other Net Expense | $ | 2,819 |
| $ | 73 |
| $ | 52 |
| $ | (299 | ) | $ | — |
| $ | — |
| $ | 2,645 |
|
Special Items(e) | 79 |
| — |
| 1 |
| 276 |
| 151 |
| — |
| 507 |
|
Adjusted Earnings(f) | $ | 2,898 |
| $ | 73 |
| $ | 53 |
| $ | (23 | ) | $ | 151 |
| $ | — |
| $ | 3,152 |
|
| |
| (a) | Amounts have been recast to conform to the current segment structure. |
| |
| (b) | Electric Utilities and Infrastructure includes a pretax impairment charge of $88 million related to the Edwardsport settlement. |
| |
| (c) | Other includes a state tax charge of $41 million resulting from the completion of the sale of the nonregulated Midwest generation business. |
| |
| (d) | Includes results of the International Disposal Group and an after-tax charge of $53 million related to a settlement agreement reached in a lawsuit related to the Midwest Disposal Group. |
| |
| (e) | Other includes $98 million for the operating results of the Midwest Generation Disposal Group classified as discontinued operations. |
| |
| (f) | See page 23 for a detailed reconciliation of Segment Income (Loss) / Other Net Expense to Adjusted Earnings. |
DUKE ENERGY CORPORATION
Consolidating Balance Sheets - Assets
(Unaudited)
|
| | | | | | | | | | | | | | | | | | |
| | December 31, 2016 |
| (in millions) | Electric Utilities and Infrastructure |
| Gas
Utilities and Infrastructure |
| Commercial
Renewables |
| Other |
| Eliminations /
Adjustments |
| Duke Energy |
|
| Current Assets | | | | | | |
| Cash and cash equivalents | $ | 72 |
| $ | 25 |
| $ | 8 |
| $ | 287 |
| $ | — |
| $ | 392 |
|
| Receivables, net | 451 |
| 228 |
| 24 |
| 47 |
| 1 |
| 751 |
|
| Receivables of variable interest entities, net | 1,871 |
| — |
| 22 |
| — |
| — |
| 1,893 |
|
| Receivables from affiliated companies | 25 |
| 31 |
| 769 |
| 3,075 |
| (3,900 | ) | — |
|
| Notes receivable from affiliated companies | 179 |
| 38 |
| — |
| 89 |
| (306 | ) | — |
|
| Inventory | 3,372 |
| 108 |
| 17 |
| 26 |
| (1 | ) | 3,522 |
|
| Regulatory assets | 806 |
| 124 |
| — |
| 93 |
| — |
| 1,023 |
|
| Other | 283 |
| 31 |
| 107 |
| 35 |
| 2 |
| 458 |
|
| Total current assets | 7,059 |
| 585 |
| 947 |
| 3,652 |
| (4,204 | ) | 8,039 |
|
| Investments and Other Assets | | | | | | |
| Investments in equity method unconsolidated affiliates | 93 |
| 566 |
| 185 |
| 81 |
| — |
| 925 |
|
| Investments and advances to (from) subsidiaries | 234 |
| (7 | ) | 9 |
| 52,478 |
| (52,714 | ) | — |
|
| Nuclear decommissioning trust funds | 6,205 |
| — |
| — |
| — |
| — |
| 6,205 |
|
| Goodwill | 17,379 |
| 1,924 |
| 122 |
| — |
| — |
| 19,425 |
|
| Other | 1,907 |
| 34 |
| 117 |
| 3,189 |
| (2,495 | ) | 2,752 |
|
| Total investments and other assets | 25,818 |
| 2,517 |
| 433 |
| 55,748 |
| (55,209 | ) | 29,307 |
|
| Property, Plant and Equipment | | | | | | |
| Cost | 106,271 |
| 8,922 |
| 4,344 |
| 1,860 |
| — |
| 121,397 |
|
| Accumulated depreciation and amortization | (35,788 | ) | (2,047 | ) | (569 | ) | (1,002 | ) | — |
| (39,406 | ) |
| Generation facilities to be retired, net | 529 |
| — |
| — |
| — |
| — |
| 529 |
|
| Net property, plant and equipment | 71,012 |
| 6,875 |
| 3,775 |
| 858 |
| — |
| 82,520 |
|
| Regulatory Assets and Deferred Debits | | | | | | |
| Regulatory assets | 11,590 |
| 785 |
| — |
| 503 |
| — |
| 12,878 |
|
| Other | 10 |
| 2 |
| — |
| 5 |
| — |
| 17 |
|
| Total regulatory assets and deferred debits | 11,600 |
| 787 |
| — |
| 508 |
| — |
| 12,895 |
|
| Total Assets | 115,489 |
| 10,764 |
| 5,155 |
| 60,766 |
| (59,413 | ) | 132,761 |
|
| Segment reclassifications, intercompany balances and other | (496 | ) | (4 | ) | (778 | ) | (58,323 | ) | 59,601 |
| — |
|
| Segment Assets | $ | 114,993 |
| $ | 10,760 |
| $ | 4,377 |
| $ | 2,443 |
| $ | 188 |
| $ | 132,761 |
|
DUKE ENERGY CORPORATION
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
|
| | | | | | | | | | | | | | | | | | |
| | December 31, 2016 |
| (in millions) | Electric Utilities and Infrastructure |
| Gas
Utilities and Infrastructure |
| Commercial
Renewables |
| Other |
| Eliminations /
Adjustments |
| Duke Energy |
|
| Current Liabilities | | | | | | |
| Accounts payable | $ | 2,301 |
| $ | 233 |
| $ | 57 |
| $ | 403 |
| $ | — |
| $ | 2,994 |
|
| Accounts payable to affiliated companies | 3,427 |
| 5 |
| 174 |
| 248 |
| (3,854 | ) | — |
|
| Notes payable to affiliated companies | 143 |
| 1 |
| — |
| 186 |
| (330 | ) | — |
|
| Notes payable and commercial paper | — |
| 330 |
| — |
| 2,157 |
| — |
| 2,487 |
|
| Taxes accrued | 471 |
| 102 |
| (267 | ) | 79 |
| (1 | ) | 384 |
|
| Interest accrued | 328 |
| 38 |
| — |
| 139 |
| (2 | ) | 503 |
|
| Current maturities of long-term debt | 986 |
| 35 |
| 198 |
| 1,099 |
| 1 |
| 2,319 |
|
| Asset retirement obligations | 411 |
| — |
| — |
| — |
| — |
| 411 |
|
| Regulatory liabilities | 404 |
| — |
| — |
| 5 |
| — |
| 409 |
|
| Other | 1,360 |
| 99 |
| 53 |
| 551 |
| (19 | ) | 2,044 |
|
| Total current liabilities | 9,831 |
| 843 |
| 215 |
| 4,867 |
| (4,205 | ) | 11,551 |
|
| Long-Term Debt | 28,396 |
| 2,445 |
| 1,096 |
| 13,640 |
| (1 | ) | 45,576 |
|
| Long-Term Debt Payable to Affiliated Companies | 618 |
| 7 |
| 9 |
| 1,859 |
| (2,493 | ) | — |
|
| Deferred Credits and Other Liabilities | | | | | |
|
| Deferred income taxes | 15,484 |
| 1,411 |
| 385 |
| (3,124 | ) | (1 | ) | 14,155 |
|
| Investment tax credits | 490 |
| 3 |
| — |
| — |
| — |
| 493 |
|
| Accrued pension and other post-retirement benefit costs | 718 |
| 31 |
| — |
| 362 |
| — |
| 1,111 |
|
| Asset retirement obligations | 10,071 |
| 42 |
| 85 |
| 1 |
| 1 |
| 10,200 |
|
| Regulatory liabilities | 6,111 |
| 733 |
| — |
| 37 |
| — |
| 6,881 |
|
| Other | 875 |
| 262 |
| 273 |
| 343 |
| — |
| 1,753 |
|
| Total deferred credits and other liabilities | 33,749 |
| 2,482 |
| 743 |
| (2,381 | ) | — |
| 34,593 |
|
| Equity | | | | | | |
| Total Duke Energy Corporation stockholders' equity | 42,895 |
| 4,987 |
| 3,072 |
| 42,792 |
| (52,713 | ) | 41,033 |
|
| Noncontrolling interests | — |
| — |
| 20 |
| (11 | ) | (1 | ) | 8 |
|
| Total equity | 42,895 |
| 4,987 |
| 3,092 |
| 42,781 |
| (52,714 | ) | 41,041 |
|
| Total Liabilities and Equity | 115,489 |
| 10,764 |
| 5,155 |
| 60,766 |
| (59,413 | ) | 132,761 |
|
| Segment reclassifications, intercompany balances and other | (496 | ) | (4 | ) | (778 | ) | (58,323 | ) | 59,601 |
| — |
|
| Segment Liabilities and Equity | $ | 114,993 |
| $ | 10,760 |
| $ | 4,377 |
| $ | 2,443 |
| $ | 188 |
| $ | 132,761 |
|
DUKE ENERGY CORPORATION
Consolidating Balance Sheets - Assets
(Unaudited)
|
| | | | | | | | | | | | | | | | | | |
| | December 31, 2015(a) |
| (in millions) | Electric Utilities and Infrastructure |
| Gas
Utilities and Infrastructure |
| Commercial
Renewables |
| Other |
| Eliminations /
Adjustments |
| Duke Energy |
|
| Current Assets | | | | | | |
| Cash and cash equivalents | $ | 67 |
| $ | — |
| $ | 18 |
| $ | 298 |
| $ | — |
| $ | 383 |
|
| Receivables, net | 459 |
| (6 | ) | 5 |
| 56 |
| 1 |
| 515 |
|
| Receivables of variable interest entities, net | 1,708 |
| — |
| 19 |
| 20 |
| 1 |
| 1,748 |
|
| Receivables from affiliated companies | 101 |
| 8 |
| 250 |
| 4,230 |
| (4,589 | ) | — |
|
| Notes receivable from affiliated companies | 112 |
| — |
| — |
| 1,131 |
| (1,243 | ) | — |
|
| Inventory | 3,689 |
| 14 |
| 18 |
| 25 |
| — |
| 3,746 |
|
| Assets held for sale | — |
| — |
| — |
| 746 |
| — |
| 746 |
|
| Regulatory assets | 788 |
| 7 |
| — |
| 82 |
| — |
| 877 |
|
| Other | 352 |
| 31 |
| 117 |
| (191 | ) | (2 | ) | 307 |
|
| Total current assets | 7,276 |
| 54 |
| 427 |
| 6,397 |
| (5,832 | ) | 8,322 |
|
| Investments and Other Assets | | | | | | |
| Investments in equity method unconsolidated affiliates | 57 |
| 113 |
| 265 |
| 64 |
| — |
| 499 |
|
| Investments and advances to subsidiaries | 47 |
| — |
| 11 |
| 46,925 |
| (46,983 | ) | — |
|
| Nuclear decommissioning trust funds | 5,825 |
| — |
| — |
| — |
| — |
| 5,825 |
|
| Goodwill | 15,656 |
| 294 |
| 122 |
| — |
| — |
| 16,072 |
|
| Assets held for sale | — |
| — |
| — |
| 2,413 |
| — |
| 2,413 |
|
| Other | 1,961 |
| 9 |
| 149 |
| 1,204 |
| (493 | ) | 2,830 |
|
| Total investments and other assets | 23,546 |
| 416 |
| 547 |
| 50,606 |
| (47,476 | ) | 27,639 |
|
| Property, Plant and Equipment | | | | | | |
| Cost | 102,104 |
| 2,584 |
| 3,587 |
| 1,692 |
| — |
| 109,967 |
|
| Accumulated depreciation and amortization | (34,723 | ) | (651 | ) | (439 | ) | (923 | ) | — |
| (36,736 | ) |
| Generation facilities to be retired, net | 548 |
| — |
| — |
| — |
| — |
| 548 |
|
| Net property, plant and equipment | 67,929 |
| 1,933 |
| 3,148 |
| 769 |
| — |
| 73,779 |
|
| Regulatory Assets and Deferred Debits | | | | | | |
| Regulatory assets | 10,639 |
| 195 |
| — |
| 539 |
| — |
| 11,373 |
|
| Other | 13 |
| — |
| — |
| 30 |
| — |
| 43 |
|
| Total regulatory assets and deferred debits | 10,652 |
| 195 |
| — |
| 569 |
| — |
| 11,416 |
|
| Total Assets | 109,403 |
| 2,598 |
| 4,122 |
| 58,341 |
| (53,308 | ) | 121,156 |
|
| Segment reclassifications, intercompany balances and other | (306 | ) | 39 |
| (261 | ) | (52,968 | ) | 53,496 |
| — |
|
| Segment Assets | $ | 109,097 |
| $ | 2,637 |
| $ | 3,861 |
| $ | 5,373 |
| $ | 188 |
| $ | 121,156 |
|
| |
| (a) | Amounts have been recast to conform to the current segment structure. |
DUKE ENERGY CORPORATION
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
|
| | | | | | | | | | | | | | | | | | |
| | December 31, 2015(a) |
| (in millions) | Electric Utilities and Infrastructure |
| Gas
Utilities and Infrastructure |
| Commercial
Renewables |
| Other |
| Eliminations /
Adjustments |
| Duke Energy |
|
| Current Liabilities | | | | | | |
| Accounts payable | $ | 1,827 |
| $ | 41 |
| $ | 106 |
| $ | 376 |
| $ | — |
| $ | 2,350 |
|
| Accounts payable to affiliated companies | 3,279 |
| 66 |
| 124 |
| 1,010 |
| (4,479 | ) | — |
|
| Notes payable to affiliated companies | 971 |
| 30 |
| — |
| 103 |
| (1,104 | ) | — |
|
| Notes payable and commercial paper | — |
| — |
| — |
| 3,633 |
| — |
| 3,633 |
|
| Taxes accrued | 422 |
| (4 | ) | (240 | ) | 110 |
| 1 |
| 289 |
|
| Interest accrued | 302 |
| 5 |
| 1 |
| 105 |
| (1 | ) | 412 |
|
| Current maturities of long-term debt | 1,073 |
| 28 |
| 108 |
| 817 |
| — |
| 2,026 |
|
| Liabilities associated with assets held for sale | — |
| — |
| — |
| 279 |
| — |
| 279 |
|
| Regulatory liabilities | 396 |
| 3 |
| — |
| — |
| 1 |
| 400 |
|
| Other | 1,548 |
| 6 |
| 37 |
| 521 |
| (101 | ) | 2,011 |
|
| Total current liabilities | 9,818 |
| 175 |
| 136 |
| 6,954 |
| (5,683 | ) | 11,400 |
|
| Long-Term Debt | 24,670 |
| 481 |
| 968 |
| 10,722 |
| 1 |
| 36,842 |
|
| Long-Term Debt Payable to Affiliated Companies | 618 |
| 7 |
| 17 |
| — |
| (642 | ) | — |
|
| Deferred Credits and Other Liabilities | | | | | | |
| Deferred income taxes | 14,305 |
| 463 |
| 347 |
| (2,568 | ) | 1 |
| 12,548 |
|
| Investment tax credits | 470 |
| 3 |
| — |
| — |
| (1 | ) | 472 |
|
| Accrued pension and other post-retirement benefit costs | 670 |
| 19 |
| — |
| 400 |
| (1 | ) | 1,088 |
|
| Liabilities associated with assets held for sale | — |
| — |
| — |
| 900 |
| — |
| 900 |
|
| Asset retirement obligations | 10,160 |
| 25 |
| 63 |
| 1 |
| — |
| 10,249 |
|
| Regulatory liabilities | 6,083 |
| 105 |
| — |
| 66 |
| 1 |
| 6,255 |
|
| Other | 970 |
| 63 |
| 255 |
| 344 |
| (1 | ) | 1,631 |
|
| Total deferred credits and other liabilities | 32,658 |
| 678 |
| 665 |
| (857 | ) | (1 | ) | 33,143 |
|
| Equity | | | | | | |
| Total Duke Energy Corporation stockholders' equity | 41,639 |
| 1,257 |
| 2,314 |
| 41,500 |
| (46,983 | ) | 39,727 |
|
| Noncontrolling interests | — |
| — |
| 22 |
| 22 |
| — |
| 44 |
|
| Total equity | 41,639 |
| 1,257 |
| 2,336 |
| 41,522 |
| (46,983 | ) | 39,771 |
|
| Total Liabilities and Equity | 109,403 |
| 2,598 |
| 4,122 |
| 58,341 |
| (53,308 | ) | 121,156 |
|
| Segment reclassifications, intercompany balances and other | (306 | ) | 39 |
| (261 | ) | (52,968 | ) | 53,496 |
| — |
|
| Segment Liabilities and Equity | $ | 109,097 |
| $ | 2,637 |
| $ | 3,861 |
| $ | 5,373 |
| $ | 188 |
| $ | 121,156 |
|
| |
| (a) | Amounts have been recast to conform to the current segment structure. |
ELECTRIC UTILITIES AND INFRASTRUCTURE
Consolidating Segment Income
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Twelve Months Ended December 31, 2016 |
| (in millions) | Duke Energy Carolinas |
| Duke Energy Progress |
| Duke Energy Florida |
| Duke Energy Ohio(a) |
| Duke
Energy
Indiana |
| Commercial Transmission |
| Eliminations/ Adjustments |
| Electric Utilities and Infrastructure |
|
| Operating Revenues | 7,322 |
| 5,277 |
| 4,568 |
| 1,410 |
| 2,958 |
| — |
| (169 | ) | 21,366 |
|
| Operating Expenses | | | | | | |
| |
| Fuel used in electric generation and purchased power | 1,797 |
| 1,830 |
| 1,814 |
| 442 |
| 909 |
| — |
| (197 | ) | 6,595 |
|
| Operation, maintenance and other | 1,969 |
| 1,423 |
| 831 |
| 358 |
| 704 |
| 3 |
| 5 |
| 5,293 |
|
| Depreciation and amortization | 1,049 |
| 694 |
| 506 |
| 151 |
| 493 |
| 1 |
| 3 |
| 2,897 |
|
| Property and other taxes | 276 |
| 156 |
| 333 |
| 199 |
| 58 |
| — |
| (2 | ) | 1,020 |
|
| Impairment charges | 1 |
| 1 |
| 6 |
| — |
| 8 |
| — |
| — |
| 16 |
|
| Total operating expenses | 5,092 |
| 4,104 |
| 3,490 |
| 1,150 |
| 2,172 |
| 4 |
| (191 | ) | 15,821 |
|
| (Loss) Gains on Sales of Other Assets and Other, net | (5 | ) | 3 |
| 1 |
| 2 |
| 1 |
| — |
| (2 | ) | — |
|
| Operating Income (Loss) | 2,225 |
| 1,176 |
| 1,079 |
| 262 |
| 787 |
| (4 | ) | 20 |
| 5,545 |
|
Other Income and Expenses, net(b) | 162 |
| 71 |
| 44 |
| 5 |
| 22 |
| 6 |
| (7 | ) | 303 |
|
| Interest Expense | 424 |
| 257 |
| 212 |
| 58 |
| 181 |
| — |
| 4 |
| 1,136 |
|
| Income Before Income Taxes | 1,963 |
| 990 |
| 911 |
| 209 |
| 628 |
| 2 |
| 9 |
| 4,712 |
|
| Income Tax Expense | 693 |
| 335 |
| 337 |
| 55 |
| 234 |
| 1 |
| 17 |
| 1,672 |
|
Segment Income | $ | 1,270 |
| $ | 655 |
| $ | 574 |
| $ | 154 |
| $ | 394 |
| $ | 1 |
| $ | (8 | ) | $ | 3,040 |
|
| |
| (a) | Includes results of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (b) | Includes an equity component of allowance for funds used during construction of $102 million for Duke Energy Carolinas, $50 million for Duke Energy Progress, $26 million for Duke Energy Florida, $5 million for Duke Energy Ohio, and $16 million for Duke Energy Indiana. |
ELECTRIC UTILITIES AND INFRASTRUCTURE
Consolidating Segment Income
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Twelve Months Ended December 31, 2015(a) |
| (in millions) | Duke Energy Carolinas |
| Duke Energy Progress |
| Duke Energy Florida |
| Duke Energy Ohio(b) |
| Duke Energy Indiana |
| Commercial Transmission |
| Eliminations / Adjustments |
| Electric Utilities and Infrastructure |
|
| Operating Revenues | 7,229 |
| 5,290 |
| 4,977 |
| 1,331 |
| 2,890 |
| — |
| (196 | ) | 21,521 |
|
| Operating Expenses | | | | | | | | |
| Fuel used in electric generation and purchased power | 1,881 |
| 2,029 |
| 2,195 |
| 446 |
| 982 |
| — |
| (225 | ) | 7,308 |
|
| Operation, maintenance and other | 1,923 |
| 1,402 |
| 810 |
| 323 |
| 666 |
| 3 |
| 11 |
| 5,138 |
|
| Depreciation and amortization | 1,044 |
| 643 |
| 473 |
| 147 |
| 434 |
| — |
| (6 | ) | 2,735 |
|
| Property and other taxes | 269 |
| 140 |
| 352 |
| 190 |
| 61 |
| — |
| 1 |
| 1,013 |
|
Impairment charges(c) | 1 |
| 5 |
| 7 |
| — |
| 88 |
| — |
| — |
| 101 |
|
| Total operating expenses | 5,118 |
| 4,219 |
| 3,837 |
| 1,106 |
| 2,231 |
| 3 |
| (219 | ) | 16,295 |
|
| (Loss) Gains on Sales of Other Assets and Other, net | (1 | ) | 3 |
| — |
| 2 |
| 1 |
| — |
| — |
| 5 |
|
| Operating Income (Loss) | 2,110 |
| 1,074 |
| 1,140 |
| 227 |
| 660 |
| (3 | ) | 23 |
| 5,231 |
|
Other Income and Expenses, net(d) | 160 |
| 71 |
| 24 |
| 3 |
| 11 |
| 2 |
| (7 | ) | 264 |
|
| Interest Expense | 412 |
| 235 |
| 198 |
| 53 |
| 176 |
| — |
| — |
| 1,074 |
|
| Income Before Income Taxes | 1,858 |
| 910 |
| 966 |
| 177 |
| 495 |
| (1 | ) | 16 |
| 4,421 |
|
| Income Tax Expense | 682 |
| 312 |
| 351 |
| 59 |
| 169 |
| — |
| 29 |
| 1,602 |
|
| Segment Income (Loss) | $ | 1,176 |
| $ | 598 |
| $ | 615 |
| $ | 118 |
| $ | 326 |
| $ | (1 | ) | $ | (13 | ) | $ | 2,819 |
|
| Special Items | 12 |
| 5 |
| 1 |
| 1 |
| 60 |
| — |
| — |
| 79 |
|
Adjusted Earnings (Loss) (e) | $ | 1,188 |
| $ | 603 |
| $ | 616 |
| $ | 119 |
| $ | 386 |
| $ | (1 | ) | $ | (13 | ) | $ | 2,898 |
|
| |
| (a) | Amounts have been recast to conform to the current segment structure. |
| |
| (b) | Includes results of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (c) | The amount for Duke Energy Indiana relates to the Edwardsport settlement. |
| |
| (d) | Includes an equity component of allowance for funds used during construction of $96 million for Duke Energy Carolinas, $47 million for Duke Energy Progress, $7 million for Duke Energy Florida, $2 million for Duke Energy Ohio, and $11 million for Duke Energy Indiana. |
| |
| (e) | See page 23 for a detailed reconciliation of Electric Utilities and Infrastructure Segment Income to Adjusted Earnings. |
ELECTRIC UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Assets
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2016 |
| (in millions) | Duke
Energy
Carolinas |
| Duke
Energy
Progress |
| Duke
Energy
Florida |
| Duke Energy Ohio(a) |
| Duke
Energy
Indiana |
| Commercial Transmission |
| Eliminations/
Adjustments(b) |
| Electric Utilities and Infrastructure |
|
| Current Assets | | | | | | | | |
| Cash and cash equivalents | $ | 14 |
| $ | 11 |
| $ | 16 |
| $ | 13 |
| $ | 17 |
| $ | — |
| $ | 1 |
| $ | 72 |
|
| Receivables, net | 160 |
| 51 |
| 61 |
| 72 |
| 105 |
| — |
| 2 |
| 451 |
|
| Receivables of variable interest entities, net | 645 |
| 404 |
| 288 |
| — |
| — |
| — |
| 534 |
| 1,871 |
|
| Receivables from affiliated companies | 163 |
| 5 |
| 5 |
| 72 |
| 111 |
| 2 |
| (333 | ) | 25 |
|
| Notes receivable from affiliated companies | 66 |
| 165 |
| — |
| 58 |
| 86 |
| — |
| (196 | ) | 179 |
|
| Inventory | 1,055 |
| 1,076 |
| 641 |
| 96 |
| 504 |
| — |
| — |
| 3,372 |
|
| Regulatory assets | 238 |
| 188 |
| 213 |
| 9 |
| 149 |
| — |
| 9 |
| 806 |
|
| Other | 36 |
| 57 |
| 125 |
| 21 |
| 45 |
| — |
| (1 | ) | 283 |
|
| Total current assets | 2,377 |
| 1,957 |
| 1,349 |
| 341 |
| 1,017 |
| 2 |
| 16 |
| 7,059 |
|
| Investments and Other Assets | | | | | | | | |
| Investments in equity method unconsolidated affiliates | — |
| — |
| 1 |
| — |
| — |
| 92 |
| — |
| 93 |
|
| Investments and advances to (from) subsidiaries | 52 |
| 12 |
| 6 |
| 161 |
| — |
| — |
| 3 |
| 234 |
|
| Nuclear decommissioning trust funds | 3,273 |
| 2,217 |
| 715 |
| — |
| — |
| — |
| — |
| 6,205 |
|
| Goodwill | — |
| — |
| — |
| 596 |
| — |
| — |
| 16,783 |
| 17,379 |
|
| Other | 940 |
| 523 |
| 276 |
| 15 |
| 142 |
| — |
| 11 |
| 1,907 |
|
| Total investments and other assets | 4,265 |
| 2,752 |
| 998 |
| 772 |
| 142 |
| 92 |
| 16,797 |
| 25,818 |
|
| Property, Plant and Equipment |
| | | | | | |
|
| Cost | 41,127 |
| 28,419 |
| 16,434 |
| 5,377 |
| 14,241 |
| 4 |
| 669 |
| 106,271 |
|
| Accumulated depreciation and amortization | (14,365 | ) | (10,561 | ) | (4,644 | ) | (1,892 | ) | (4,317 | ) | (1 | ) | (8 | ) | (35,788 | ) |
| Generation facilities to be retired, net | — |
| 529 |
| — |
| — |
| — |
| — |
| — |
| 529 |
|
| Net property, plant and equipment | 26,762 |
| 18,387 |
| 11,790 |
| 3,485 |
| 9,924 |
| 3 |
| 661 |
| 71,012 |
|
| Regulatory Assets and Deferred Debits | | | | | | | | |
| Regulatory assets | 3,159 |
| 3,243 |
| 2,480 |
| 348 |
| 1,074 |
| — |
| 1,286 |
| 11,590 |
|
| Other | 3 |
| 2 |
| 2 |
| 1 |
| 1 |
| — |
| 1 |
| 10 |
|
| Total regulatory assets and deferred debits | 3,162 |
| 3,245 |
| 2,482 |
| 349 |
| 1,075 |
| — |
| 1,287 |
| 11,600 |
|
| Total Assets | 36,566 |
| 26,341 |
| 16,619 |
| 4,947 |
| 12,158 |
| 97 |
| 18,761 |
| 115,489 |
|
| Intercompany balances and other | (298 | ) | (188 | ) | (132 | ) | (178 | ) | (53 | ) | (54 | ) | 407 |
| (496 | ) |
| Reportable Segment Assets | $ | 36,268 |
| $ | 26,153 |
| $ | 16,487 |
| $ | 4,769 |
| $ | 12,105 |
| $ | 43 |
| $ | 19,168 |
| $ | 114,993 |
|
| |
| (a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (b) | Includes the elimination of intercompany balances, purchase accounting adjustments and restricted receivables related to Cinergy Receivables Company. |
ELECTRIC UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2016 |
| (in millions) | Duke
Energy
Carolinas |
| Duke
Energy
Progress |
| Duke
Energy
Florida |
| Duke Energy Ohio(a) |
| Duke
Energy
Indiana |
| Commercial Transmission |
| Eliminations/
Adjustments(b) |
| Electric Utilities and Infrastructure |
|
| Current Liabilities | | | | | | | | |
| Accounts payable | $ | 833 |
| $ | 589 |
| $ | 413 |
| $ | 200 |
| $ | 262 |
| $ | — |
| $ | 4 |
| $ | 2,301 |
|
| Accounts payable to affiliated companies | 247 |
| 227 |
| 125 |
| 13 |
| 7 |
| 54 |
| 2,754 |
| 3,427 |
|
| Notes payable to affiliated companies | — |
| — |
| 297 |
| 18 |
| — |
| — |
| (172 | ) | 143 |
|
| Taxes accrued | 150 |
| 107 |
| 37 |
| 139 |
| 32 |
| 1 |
| 5 |
| 471 |
|
| Interest accrued | 102 |
| 102 |
| 49 |
| 14 |
| 61 |
| — |
| — |
| 328 |
|
| Current maturities of long-term debt | 116 |
| 452 |
| 326 |
| 1 |
| 3 |
| — |
| 88 |
| 986 |
|
| Asset retirement obligations | 222 |
| 189 |
| — |
| — |
| — |
| — |
| — |
| 411 |
|
| Regulatory liabilities | 161 |
| 158 |
| 31 |
| 15 |
| 40 |
| — |
| (1 | ) | 404 |
|
| Other | 467 |
| 366 |
| 353 |
| 82 |
| 94 |
| — |
| (2 | ) | 1,360 |
|
| Total current liabilities | 2,298 |
| 2,190 |
| 1,631 |
| 482 |
| 499 |
| 55 |
| 2,676 |
| 9,831 |
|
| Long-Term Debt | 9,187 |
| 6,409 |
| 5,799 |
| 1,397 |
| 3,633 |
| — |
| 1,971 |
| 28,396 |
|
| Long-Term Debt Payable to Affiliated Companies | 300 |
| 150 |
| — |
| 18 |
| 150 |
| — |
| — |
| 618 |
|
| Deferred Credits and Other Liabilities | | | | | | | | |
| Deferred income taxes | 6,588 |
| 3,331 |
| 2,695 |
| 954 |
| 1,902 |
| 4 |
| 10 |
| 15,484 |
|
| Investment tax credits | 203 |
| 146 |
| 3 |
| 1 |
| 137 |
| — |
| — |
| 490 |
|
| Accrued pension and other post-retirement benefit costs | 97 |
| 252 |
| 262 |
| 36 |
| 71 |
| — |
| — |
| 718 |
|
| Asset retirement obligations | 3,673 |
| 4,508 |
| 778 |
| 48 |
| 866 |
| — |
| 198 |
| 10,071 |
|
| Regulatory liabilities | 2,840 |
| 1,946 |
| 448 |
| 129 |
| 748 |
| — |
| — |
| 6,111 |
|
| Other | 608 |
| 51 |
| 103 |
| 95 |
| 27 |
| — |
| (9 | ) | 875 |
|
| Total deferred credits and other liabilities | 14,009 |
| 10,234 |
| 4,289 |
| 1,263 |
| 3,751 |
| 4 |
| 199 |
| 33,749 |
|
| Equity | 10,772 |
| 7,358 |
| 4,900 |
| 1,787 |
| 4,125 |
| 38 |
| 13,915 |
| 42,895 |
|
| Total Liabilities and Equity | 36,566 |
| 26,341 |
| 16,619 |
| 4,947 |
| 12,158 |
| 97 |
| 18,761 |
| 115,489 |
|
| Intercompany balances and other | (298 | ) | (188 | ) | (132 | ) | (178 | ) | (53 | ) | (54 | ) | 407 |
| (496 | ) |
| Reportable Segment Liabilities and Equity | $ | 36,268 |
| $ | 26,153 |
| $ | 16,487 |
| $ | 4,769 |
| $ | 12,105 |
| $ | 43 |
| $ | 19,168 |
| $ | 114,993 |
|
| |
| (a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (b) | Includes the elimination of intercompany balances and purchase accounting adjustments. |
ELECTRIC UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Assets
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2015(a) |
| (in millions) | Duke
Energy
Carolinas |
| Duke
Energy
Progress |
| Duke
Energy
Florida |
| Duke Energy Ohio(b) |
| Duke
Energy
Indiana |
| Commercial Transmission |
| Eliminations/
Adjustments(c) |
| Electric Utilities and Infrastructure |
|
| Current Assets | | | | | | | | |
| Cash and cash equivalents | $ | 13 |
| $ | 15 |
| $ | 8 |
| $ | 21 |
| $ | 9 |
| $ | — |
| $ | 1 |
| $ | 67 |
|
| Receivables, net | 142 |
| 87 |
| 60 |
| 70 |
| 96 |
| — |
| 4 |
| 459 |
|
| Receivables of variable interest entities, net | 596 |
| 349 |
| 308 |
| — |
| — |
| — |
| 455 |
| 1,708 |
|
| Receivables from affiliated companies | 113 |
| 16 |
| 85 |
| 22 |
| 29 |
| 3 |
| (167 | ) | 101 |
|
| Notes receivable from affiliated companies | 163 |
| — |
| — |
| — |
| 83 |
| — |
| (134 | ) | 112 |
|
| Inventory | 1,276 |
| 1,088 |
| 663 |
| 92 |
| 570 |
| — |
| — |
| 3,689 |
|
| Regulatory assets | 305 |
| 264 |
| 98 |
| 19 |
| 102 |
| — |
| — |
| 788 |
|
| Other | 95 |
| 113 |
| 39 |
| 69 |
| 15 |
| — |
| 22 |
| 352 |
|
| Total current assets | 2,703 |
| 1,932 |
| 1,261 |
| 293 |
| 904 |
| 3 |
| 181 |
| 7,276 |
|
| Investments and Other Assets | | | | | | | | |
| Investments in equity method unconsolidated affiliates | — |
| — |
| 2 |
| — |
| — |
| 55 |
| — |
| 57 |
|
| Investments and advances (from) to subsidiaries | (48 | ) | 2 |
| (3 | ) | 100 |
| — |
| — |
| (4 | ) | 47 |
|
| Nuclear decommissioning trust funds | 3,050 |
| 2,035 |
| 740 |
| — |
| — |
| — |
| — |
| 5,825 |
|
| Goodwill | — |
| — |
| — |
| 596 |
| — |
| — |
| 14,736 |
| 15,656 |
|
| Other | 999 |
| 485 |
| 289 |
| 23 |
| 209 |
| — |
| (44 | ) | 1,961 |
|
| Total investments and other assets | 4,001 |
| 2,522 |
| 1,028 |
| 719 |
| 209 |
| 55 |
| 14,688 |
| 23,546 |
|
| Property, Plant and Equipment | | | |
| | | | |
| Cost | 39,398 |
| 27,313 |
| 15,343 |
| 5,165 |
| 14,007 |
| 4 |
| 874 |
| 102,104 |
|
| Accumulated depreciation and amortization | (13,521 | ) | (10,141 | ) | (4,720 | ) | (1,856 | ) | (4,484 | ) | — |
| (1 | ) | (34,723 | ) |
| Generation facilities to be retired, net | — |
| 548 |
| — |
| — |
| — |
| — |
| — |
| 548 |
|
| Net property, plant and equipment | 25,877 |
| 17,720 |
| 10,623 |
| 3,309 |
| 9,523 |
| 4 |
| 873 |
| 67,929 |
|
| Regulatory Assets and Deferred Debits | | | |
| | | | |
| Regulatory assets | 2,766 |
| 2,667 |
| 2,725 |
| 311 |
| 716 |
| — |
| 1,453 |
| 10,639 |
|
| Other | 4 |
| 3 |
| 2 |
| 2 |
| 2 |
| — |
| — |
| 13 |
|
| Total regulatory assets and deferred debits | 2,770 |
| 2,670 |
| 2,727 |
| 313 |
| 718 |
| — |
| 1,453 |
| 10,652 |
|
| Total Assets | 35,351 |
| 24,844 |
| 15,639 |
| 4,634 |
| 11,354 |
| 62 |
| 17,195 |
| 109,403 |
|
| Intercompany balances and other | (94 | ) | (140 | ) | (105 | ) | (107 | ) | (42 | ) | (50 | ) | 232 |
| (306 | ) |
| Reportable Segment Assets | $ | 35,257 |
| $ | 24,704 |
| $ | 15,534 |
| $ | 4,527 |
| $ | 11,312 |
| $ | 12 |
| $ | 17,427 |
| $ | 109,097 |
|
| |
| (a) | Amounts have been recast to conform to current segment structure. |
| |
| (b) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (c) | Includes the elimination of intercompany balances, purchase accounting adjustments and restricted receivables related to Cinergy Receivables Company. |
ELECTRIC UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2015(a) |
| (in millions) | Duke
Energy
Carolinas |
| Duke
Energy
Progress |
| Duke
Energy
Florida |
| Duke Energy Ohio(b) |
| Duke
Energy
Indiana |
| Commercial Transmission |
| Eliminations/
Adjustments(c) |
| Electric Utilities and Infrastructure |
|
| Current Liabilities | | | | | | | | |
| Accounts payable | $ | 753 |
| $ | 399 |
| $ | 322 |
| $ | 161 |
| $ | 189 |
| $ | — |
| $ | 4 |
| $ | 1,827 |
|
| Accounts payable to affiliated companies | 137 |
| 162 |
| 106 |
| 23 |
| 35 |
| 51 |
| 2,765 |
| 3,279 |
|
| Notes payable to affiliated companies | — |
| 209 |
| 813 |
| 73 |
| — |
| — |
| (123 | ) | 971 |
|
| Taxes accrued | 25 |
| 15 |
| 139 |
| 151 |
| 92 |
| — |
| (1 | ) | 422 |
|
| Interest accrued | 95 |
| 96 |
| 43 |
| 13 |
| 56 |
| — |
| (1 | ) | 302 |
|
| Current maturities of long-term debt | 356 |
| 2 |
| 13 |
| 78 |
| 547 |
| — |
| 77 |
| 1,073 |
|
| Regulatory liabilities | 39 |
| 85 |
| 200 |
| 9 |
| 62 |
| — |
| 1 |
| 396 |
|
| Other | 519 |
| 412 |
| 452 |
| 67 |
| 97 |
| — |
| — |
| 1,548 |
|
| Total current liabilities | 1,924 |
| 1,380 |
| 2,088 |
| 575 |
| 1,078 |
| 51 |
| 2,722 |
| 9,818 |
|
| Long-Term Debt | 7,711 |
| 6,366 |
| 4,253 |
| 986 |
| 3,071 |
| — |
| 2,284 |
| 24,670 |
|
| Long-Term Debt Payable to Affiliated Companies | 300 |
| 150 |
| — |
| 18 |
| 150 |
| — |
| — |
| 618 |
|
| Deferred Credits and Other Liabilities | | | | | | | | |
| Deferred income taxes | 6,163 |
| 3,005 |
| 2,478 |
| 960 |
| 1,657 |
| 2 |
| 40 |
| 14,305 |
|
| Investment tax credits | 199 |
| 132 |
| — |
| 1 |
| 138 |
| — |
| — |
| 470 |
|
| Accrued pension and other post-retirement benefit costs | 107 |
| 262 |
| 242 |
| 35 |
| 80 |
| — |
| (56 | ) | 670 |
|
| Asset retirement obligations | 3,918 |
| 4,567 |
| 802 |
| 99 |
| 525 |
| — |
| 249 |
| 10,160 |
|
| Regulatory liabilities | 2,802 |
| 1,878 |
| 509 |
| 140 |
| 754 |
| — |
| — |
| 6,083 |
|
| Other | 621 |
| 45 |
| 146 |
| 100 |
| 65 |
| — |
| (7 | ) | 970 |
|
| Total deferred credits and other liabilities | 13,810 |
| 9,889 |
| 4,177 |
| 1,335 |
| 3,219 |
| 2 |
| 226 |
| 32,658 |
|
| Equity | 11,606 |
| 7,059 |
| 5,121 |
| 1,720 |
| 3,836 |
| 9 |
| 11,963 |
| 41,639 |
|
| Total Liabilities and Equity | 35,351 |
| 24,844 |
| 15,639 |
| 4,634 |
| 11,354 |
| 62 |
| 17,195 |
| 109,403 |
|
| Intercompany balances and other | (94 | ) | (140 | ) | (105 | ) | (107 | ) | (42 | ) | (50 | ) | 232 |
| (306 | ) |
| Reportable Segment Liabilities and Equity | $ | 35,257 |
| $ | 24,704 |
| $ | 15,534 |
| $ | 4,527 |
| $ | 11,312 |
| $ | 12 |
| $ | 17,427 |
| $ | 109,097 |
|
| |
| (a) | Amounts have been recast to conform to the current segment structure. |
| |
| (b) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (c) | Includes the elimination of intercompany balances and purchase accounting adjustments. |
GAS UTILITIES AND INFRASTRUCTURE
Consolidating Segment Income
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | Twelve Months Ended December 31, 2016 |
| (in millions) | Duke Energy
Ohio(a) |
| Piedmont Natural Gas LDC(b) |
| Mid-Stream Pipelines and Storage(b)(c) |
| Eliminations/ Adjustments |
| Gas
Utilities and Infrastructure |
|
| Operating Revenues | 503 |
| 398 |
| — |
| — |
| 901 |
|
| Operating Expenses | | | | | |
| Cost of natural gas | 103 |
| 161 |
| — |
| 1 |
| 265 |
|
| Operation, maintenance and other | 116 |
| 70 |
| 2 |
| (2 | ) | 186 |
|
| Depreciation and amortization | 80 |
| 35 |
| — |
| — |
| 115 |
|
| Property and other taxes | 59 |
| 11 |
| — |
| — |
| 70 |
|
| Total operating expenses | 358 |
| 277 |
| 2 |
| (1 | ) | 636 |
|
| Gains on Sales of Other Assets and Other, net | — |
| — |
| — |
| (1 | ) | (1 | ) |
| Operating Income (Loss) | 145 |
| 121 |
| (2 | ) | — |
| 264 |
|
| Other Income and Expenses | | | | | |
| Equity in earnings of unconsolidated affiliates | — |
| — |
| 19 |
| — |
| 19 |
|
| Other income and expenses, net | 3 |
| 1 |
| 2 |
| (1 | ) | 5 |
|
| Total Other Income and Expenses | 3 |
| 1 |
| 21 |
| (1 | ) | 24 |
|
| Interest Expense | 27 |
| 20 |
| — |
| (1 | ) | 46 |
|
| Income Before Income Taxes | 121 |
| 102 |
| 19 |
| — |
| 242 |
|
| Income Tax Expense | 44 |
| 37 |
| 7 |
| 2 |
| 90 |
|
Segment Income | $ | 77 |
| $ | 65 |
| $ | 12 |
| $ | (2 | ) | $ | 152 |
|
| |
| (a) | Includes results of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (b) | Includes Piedmont's results subsequent to the acquisition on October 3, 2016. |
| |
| (c) | Includes earnings from investments in ACP, Sabal Trail, Constitution and Cardinal pipelines, as well as Hardy and Pine Needle storage facilities. |
GAS UTILITIES AND INFRASTRUCTURE
Consolidating Segment Income
(Unaudited)
|
| | | | | | | | | | | | |
| | Twelve Months Ended December 31, 2015 |
| (in millions) | Duke Energy Ohio(a) |
| Mid-Stream Pipelines |
| Eliminations/ Adjustments |
| Gas
Utilities and Infrastructure |
|
| Operating Revenues | $ | 541 |
| $ | — |
| $ | — |
| $ | 541 |
|
| Operating Expenses | | | | |
| Cost of natural gas | 141 |
| — |
| — |
| 141 |
|
| Operation, maintenance and other | 125 |
| 1 |
| — |
| 126 |
|
| Depreciation and amortization | 79 |
| — |
| — |
| 79 |
|
| Property and other taxes | 62 |
| — |
| — |
| 62 |
|
| Total operating expenses | 407 |
| 1 |
| — |
| 408 |
|
| Gains on Sales of Other Assets and Other, net | 7 |
| — |
| (1 | ) | 6 |
|
| Operating Income (Loss) | 141 |
| (1 | ) | (1 | ) | 139 |
|
| Other Income and Expenses | 2 |
| — |
| 1 |
| 3 |
|
| Interest Expense | 25 |
| — |
| — |
| 25 |
|
| Income (Loss) Before Income Taxes | 118 |
| (1 | ) | — |
| 117 |
|
| Income Tax Expense | 45 |
| — |
| (1 | ) | 44 |
|
Segment Income (Loss) | $ | 73 |
| $ | (1 | ) | $ | 1 |
| $ | 73 |
|
| |
| (a) | Includes results of the wholly owned subsidiary, Duke Energy Kentucky. |
GAS UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Assets
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | December 31, 2016 |
| (in millions) | Duke Energy Ohio(a) |
| Piedmont Natural Gas LDC |
| Mid-Stream Pipelines and Storage |
| Eliminations/
Adjustments(b) |
| Gas
Utilities and Infrastructure |
|
| Current Assets | | | | | |
| Cash and cash equivalents | $ | — |
| $ | 25 |
| $ | — |
| $ | — |
| $ | 25 |
|
| Receivables, net | (4 | ) | 232 |
| — |
| — |
| 228 |
|
| Receivables from affiliated companies | 21 |
| 7 |
| — |
| 3 |
| 31 |
|
| Notes receivable from affiliated companies | 38 |
| — |
| — |
| — |
| 38 |
|
| Inventory | 41 |
| 66 |
| — |
| 1 |
| 108 |
|
| Regulatory assets | 6 |
| 117 |
| — |
| 1 |
| 124 |
|
| Other | 12 |
| 21 |
| — |
| (2 | ) | 31 |
|
| Total current assets | 114 |
| 468 |
| — |
| 3 |
| 585 |
|
| Investments and Other Assets | | | | | |
| Investments in equity method unconsolidated affiliates | — |
| — |
| 566 |
| — |
| 566 |
|
| Investments and advances from subsidiaries | — |
| — |
| — |
| (7 | ) | (7 | ) |
| Goodwill | 324 |
| 49 |
| — |
| 1,551 |
| 1,924 |
|
| Other | 2 |
| 19 |
| 12 |
| 1 |
| 34 |
|
| Total investments and other assets | 326 |
| 68 |
| 578 |
| 1,545 |
| 2,517 |
|
| Property, Plant and Equipment | | | | | |
| Cost | 2,748 |
| 6,174 |
| — |
| — |
| 8,922 |
|
| Accumulated depreciation and amortization | (687 | ) | (1,360 | ) | — |
| — |
| (2,047 | ) |
| Net property, plant and equipment | 2,061 |
| 4,814 |
| — |
| — |
| 6,875 |
|
| Regulatory Assets and Deferred Debits | | | | | |
| Regulatory assets | 196 |
| 379 |
| — |
| 210 |
| 785 |
|
| Other | — |
| 2 |
| — |
| — |
| 2 |
|
| Total regulatory assets and deferred debits | 196 |
| 381 |
| — |
| 210 |
| 787 |
|
| Total Assets | 2,697 |
| 5,731 |
| 578 |
| 1,758 |
| 10,764 |
|
| Intercompany balances and other | (1 | ) | 91 |
| — |
| (94 | ) | (4 | ) |
| Reportable Segment Assets | $ | 2,696 |
| $ | 5,822 |
| $ | 578 |
| $ | 1,664 |
| $ | 10,760 |
|
| |
| (a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (b) | Includes the elimination of intercompany balances and purchase accounting adjustments. |
GAS UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | December 31, 2016 |
| (in millions) | Duke Energy Ohio(a) |
| Piedmont Natural Gas LDC |
| Mid-Stream Pipelines and Storage |
| Eliminations/ Adjustments(b) |
| Gas
Utilities and Infrastructure |
|
| Current Liabilities | | | | | |
| Accounts payable | $ | 78 |
| $ | 155 |
| $ | — |
| $ | — |
| $ | 233 |
|
| Accounts payable to affiliated companies | 4 |
| 4 |
| 25 |
| (28 | ) | 5 |
|
| Notes payable to affiliated companies | 1 |
| — |
| — |
| — |
| 1 |
|
| Notes payable and commercial paper | — |
| 330 |
| — |
| — |
| 330 |
|
| Taxes accrued | 27 |
| (14 | ) | 89 |
| — |
| 102 |
|
| Interest accrued | 5 |
| 33 |
| — |
| — |
| 38 |
|
| Current maturities of long-term debt | — |
| 35 |
| — |
| — |
| 35 |
|
| Regulatory liabilities | 6 |
| (6 | ) | — |
| — |
| — |
|
| Other | 3 |
| 96 |
| — |
| — |
| 99 |
|
| Total current liabilities | 124 |
| 633 |
| 114 |
| (28 | ) | 843 |
|
| Long-Term Debt | 462 |
| 1,786 |
| — |
| 197 |
| 2,445 |
|
| Long-Term Debt Payable to Affiliated Companies | 7 |
| — |
| — |
| — |
| 7 |
|
| Deferred Credits and Other Liabilities | | | | | |
| Deferred income taxes | 480 |
| 904 |
| 28 |
| (1 | ) | 1,411 |
|
| Investment tax credits | 2 |
| 1 |
| — |
| — |
| 3 |
|
| Accrued pension and other post-retirement benefit costs | 17 |
| 14 |
| — |
| — |
| 31 |
|
| Asset retirement obligations | 28 |
| 14 |
| — |
| — |
| 42 |
|
| Regulatory liabilities | 108 |
| 608 |
| — |
| 17 |
| 733 |
|
| Other | 68 |
| 194 |
| — |
| — |
| 262 |
|
| Total deferred credits and other liabilities | 703 |
| 1,735 |
| 28 |
| 16 |
| 2,482 |
|
| Equity | 1,401 |
| 1,577 |
| 436 |
| 1,573 |
| 4,987 |
|
| Total Liabilities and Equity | 2,697 |
| 5,731 |
| 578 |
| 1,758 |
| 10,764 |
|
| Intercompany balances and other | (1 | ) | 91 |
| — |
| (94 | ) | (4 | ) |
| Reportable Segment Liabilities and Equity | $ | 2,696 |
| $ | 5,822 |
| $ | 578 |
| $ | 1,664 |
| $ | 10,760 |
|
| |
| (a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (b) | Includes the elimination of intercompany balances and purchase accounting adjustments. |
GAS UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Assets
(Unaudited)
|
| | | | | | | | | | | | |
| | December 31, 2015 |
| (in millions) | Duke Energy Ohio(a) |
| Mid-Stream Pipelines |
| Eliminations/
Adjustments(b) |
| Gas
Utilities and Infrastructure |
|
| Current Assets | | | | |
| Receivables, net | $ | (6 | ) | $ | — |
| $ | — |
| $ | (6 | ) |
| Receivables from affiliated companies | 16 |
| — |
| (8 | ) | 8 |
|
| Inventory | 14 |
| — |
| — |
| 14 |
|
| Regulatory assets | 7 |
| — |
| — |
| 7 |
|
| Other | 31 |
| — |
| — |
| 31 |
|
| Total current assets | 62 |
| — |
| (8 | ) | 54 |
|
| Investments and Other Assets | | | | |
| Investments in equity method unconsolidated affiliates | — |
| 113 |
| — |
| 113 |
|
| Goodwill | 324 |
| — |
| (30 | ) | 294 |
|
| Other | 9 |
| — |
| — |
| 9 |
|
| Total investments and other assets | 333 |
| 113 |
| (30 | ) | 416 |
|
| Property, Plant and Equipment | | | | |
| Cost | 2,584 |
| — |
| — |
| 2,584 |
|
| Accumulated depreciation and amortization | (651 | ) | — |
| — |
| (651 | ) |
| Net property, plant and equipment | 1,933 |
| — |
| — |
| 1,933 |
|
| Regulatory Assets and Deferred Debits |
| | | |
| Regulatory assets | 195 |
| — |
| — |
| 195 |
|
| Total Assets | 2,523 |
| 113 |
| (38 | ) | 2,598 |
|
| Intercompany balances and other | (20 | ) | — |
| 59 |
| 39 |
|
| Reportable Segment Assets | $ | 2,503 |
| $ | 113 |
| $ | 21 |
| $ | 2,637 |
|
| |
| (a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (b) | Includes the elimination of intercompany balances and purchase accounting adjustments. |
GAS UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
|
| | | | | | | | | | | | |
| | December 31, 2015 |
| (in millions) | Duke Energy Ohio(a) |
| Mid-Stream Pipelines |
| Eliminations/ Adjustments(b) |
| Gas
Utilities and Infrastructure |
|
| Current Liabilities | | | | |
| Accounts payable | $ | 41 |
| $ | — |
| $ | — |
| $ | 41 |
|
| Accounts payable to affiliated companies | 13 |
| 61 |
| (8 | ) | 66 |
|
| Notes payable to affiliated companies | 30 |
| — |
| — |
| 30 |
|
| Taxes accrued | (4 | ) | — |
| — |
| (4 | ) |
| Interest accrued | 5 |
| — |
| — |
| 5 |
|
| Current maturities of long-term debt | 28 |
| — |
| — |
| 28 |
|
| Regulatory liabilities | 3 |
| — |
| — |
| 3 |
|
| Other | 6 |
| — |
| — |
| 6 |
|
| Total current liabilities | 122 |
| 61 |
| (8 | ) | 175 |
|
| Long-Term Debt | 481 |
| — |
| — |
| 481 |
|
| Long-Term Debt Payable to Affiliated Companies | 7 |
| — |
| — |
| 7 |
|
| Deferred Credits and Other Liabilities | | | | |
| Deferred income taxes | 464 |
| — |
| (1 | ) | 463 |
|
| Investment tax credits | 3 |
| — |
| — |
| 3 |
|
| Accrued pension and other post-retirement benefit costs | 19 |
| — |
| — |
| 19 |
|
| Asset retirement obligations | 25 |
| — |
| — |
| 25 |
|
| Regulatory liabilities | 105 |
| — |
| — |
| 105 |
|
| Other | 62 |
| — |
| 1 |
| 63 |
|
| Total deferred credits and other liabilities | 678 |
| — |
| — |
| 678 |
|
| Equity | 1,235 |
| 52 |
| (30 | ) | 1,257 |
|
| Total Liabilities and Equity | 2,523 |
| 113 |
| (38 | ) | 2,598 |
|
| Intercompany balances and other | (20 | ) | — |
| 59 |
| 39 |
|
| Reportable Segment Liabilities and Equity | $ | 2,503 |
| $ | 113 |
| $ | 21 |
| $ | 2,637 |
|
| |
| (a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
| |
| (b) | Includes the elimination of intercompany balances. |
Revenues By Customer Class
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Twelve Months Ended December 31, 2016 |
| (in millions) | Duke Energy Carolinas |
| Duke Energy Progress |
| Duke Energy Florida |
| Duke Energy Ohio |
| Duke Energy Indiana |
| Piedmont Natural Gas(a) |
| Eliminations / Adjustments |
| Total |
|
| Regulated Electric Revenues | | | | | | | | |
| Residential | $ | 2,933 |
| $ | 1,897 |
| $ | 2,473 |
| $ | 755 |
| $ | 983 |
| $ | — |
| $ | — |
| $ | 9,041 |
|
| General service | 2,299 |
| 1,323 |
| 1,373 |
| 442 |
| 741 |
| — |
| — |
| 6,178 |
|
| Industrial | 1,287 |
| 638 |
| 251 |
| 121 |
| 726 |
| — |
| — |
| 3,023 |
|
| Wholesale | 457 |
| 1,078 |
| 185 |
| 20 |
| 334 |
| — |
| — |
| 2,074 |
|
| Change in unbilled | 29 |
| 22 |
| (11 | ) | 13 |
| 26 |
| — |
| — |
| 79 |
|
| Other revenues | 317 |
| 319 |
| 297 |
| 59 |
| 148 |
| — |
| (169 | ) | 971 |
|
| Total Electric Revenues | $ | 7,322 |
| $ | 5,277 |
| $ | 4,568 |
| $ | 1,410 |
| $ | 2,958 |
| $ | — |
| $ | (169 | ) | $ | 21,366 |
|
| | | | | | | | | |
| Regulated Natural Gas Revenues | | | | | | | | |
| Residential | $ | — |
| $ | — |
| $ | — |
| $ | 324 |
| $ | — |
| $ | 154 |
| $ | — |
| $ | 478 |
|
| Commercial | — |
| — |
| — |
| 128 |
| — |
| 83 |
| — |
| 211 |
|
| Industrial | — |
| — |
| — |
| 18 |
| — |
| 31 |
| — |
| 49 |
|
| Power Generation | — |
| — |
| — |
| — |
| — |
| 21 |
| — |
| 21 |
|
| Change in unbilled | — |
| — |
| — |
| 14 |
| — |
| 74 |
| — |
| 88 |
|
| Other revenues | — |
| — |
| — |
| 19 |
| — |
| 35 |
| — |
| 54 |
|
| Total Natural Gas Revenues | $ | — |
| $ | — |
| $ | — |
| $ | 503 |
| $ | — |
| $ | 398 |
| $ | — |
| $ | 901 |
|
| |
| (a) | Includes Piedmont's results subsequent to the acquisition on October 3, 2016. |
|
| | | | | | | | | | | | | | | | | | | | | | |
| | Twelve Months Ended December 31, 2015 |
| (in millions) | Duke Energy Carolinas |
| Duke Energy Progress |
| Duke Energy Florida |
| Duke Energy
Ohio |
| Duke Energy Indiana |
| | Eliminations / Adjustments |
| Total |
|
| Regulated Electric Revenues | | | | | | | | |
| Residential | $ | 2,991 |
| $ | 1,943 |
| $ | 2,651 |
| $ | 715 |
| $ | 991 |
| | $ | — |
| $ | 9,291 |
|
| General service | 2,276 |
| 1,339 |
| 1,546 |
| 433 |
| 734 |
| | — |
| 6,328 |
|
| Industrial | 1,319 |
| 664 |
| 294 |
| 115 |
| 734 |
| | — |
| 3,126 |
|
| Wholesale | 415 |
| 1,005 |
| 234 |
| 37 |
| 312 |
| | — |
| 2,003 |
|
| Change in unbilled | (15 | ) | (15 | ) | (12 | ) | — |
| (15 | ) | | — |
| (57 | ) |
| Other revenues | 243 |
| 354 |
| 264 |
| 31 |
| 134 |
| | (196 | ) | 830 |
|
| Total Electric Revenues | $ | 7,229 |
| $ | 5,290 |
| $ | 4,977 |
| $ | 1,331 |
| $ | 2,890 |
|
| $ | (196 | ) | $ | 21,521 |
|
| | | | | | | | | |
| Regulated Natural Gas Revenues | | | | | | | | |
| Residential | $ | — |
| $ | — |
| $ | — |
| $ | 362 |
| $ | — |
| | $ | — |
| $ | 362 |
|
| Commercial | — |
| — |
| — |
| 148 |
| — |
| | — |
| 148 |
|
| Industrial | — |
| — |
| — |
| 21 |
| — |
| | — |
| 21 |
|
| Change in unbilled | — |
| — |
| — |
| (5 | ) | — |
| | — |
| (5 | ) |
| Other revenues | — |
| — |
| — |
| 15 |
| — |
| | — |
| 15 |
|
| Total Natural Gas Revenues | $ | — |
| $ | — |
| $ | — |
| $ | 541 |
| $ | — |
|
| $ | — |
| $ | 541 |
|
DUKE ENERGY CORPORATION
REPORTED TO ADJUSTED EARNINGS RECONCILIATION
Twelve Months Ended December 31, 2016
(Dollars in millions, except per share amounts)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Special Items | | | | | | |
| | | Reported Earnings | | Costs to Achieve Mergers | | Cost Savings Initiatives | | Commercial Renewables Impairment | | International Energy Operations | | Discontinued Operations | | Total Adjustments | | Adjusted Earnings |
| SEGMENT INCOME | | | | | | | | | | | | | | | | |
| Electric Utilities and Infrastructure | | $ | 3,040 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 3,040 |
|
| Gas Utilities and Infrastructure | | 152 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 152 |
|
| Commercial Renewables | | 23 |
| | — |
| | — |
| | 45 |
| C | — |
| | — |
| | 45 |
| | 68 |
|
| Total Reportable Segment Income | | 3,215 |
| | — |
| | — |
| | 45 |
| | — |
| | — |
| | 45 |
| | 3,260 |
|
| International Energy | | — |
| | — |
| | — |
| | — |
| | 243 |
| D | — |
| | 243 |
| | 243 |
|
| Other | | (645 | ) | | 329 |
| A | 57 |
| B | — |
| | — |
| | — |
| | 386 |
| | (259 | ) |
| Intercompany Eliminations | | 1 |
| | — |
| | — |
| | — |
| | — |
| | (1 | ) | | (1 | ) | | — |
|
| Discontinued Operations | | (419 | ) | | — |
| | — |
| | — |
| | (243 | ) | D | 662 |
| E | 419 |
| | — |
|
| Net Income Attributable to Duke Energy Corporation | | $ | 2,152 |
| | $ | 329 |
| | $ | 57 |
| | $ | 45 |
| | $ | — |
| | $ | 661 |
| | $ | 1,092 |
| | $ | 3,244 |
|
| EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED | | $ | 3.11 |
| | $ | 0.48 |
| | $ | 0.08 |
| | $ | 0.07 |
| | $ | — |
| | $ | 0.95 |
| | $ | 1.58 |
| | $ | 4.69 |
|
A - Net of $194 million tax benefit. Includes $11 million recorded within Operating Revenues, $278 million recorded within Operating Expenses and $234 million recorded within Interest Expense on the Consolidated Statements of Operations. The interest expense primarily relates to losses on forward-starting interest rate swaps associated with the Piedmont acquisition financing.
B - Net of $35 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations.
C - Net of $26 million tax benefit. Other-than-temporary impairment included within Equity in earnings (losses) of unconsolidated affiliates on the Consolidated Statements of Operations.
D - Net of $27 million tax expense. Operating results of the International Disposal Group, which exclude the loss and impairment described below and other miscellaneous transaction-related costs, recorded within (Loss) Income from Discontinued Operations, net of tax on the Consolidated Statements of Operations.
E - Recorded within (Loss) Income From Discontinued Operations, net of tax on the Consolidated Statements of Operations. Includes a loss on the sale of the International Disposal Group, an impairment charge related to certain assets in Central America, and a tax benefit related to previously sold businesses.
Weighted Average Shares, Diluted (reported and adjusted) - 691 million
DUKE ENERGY CORPORATION
REPORTED TO ADJUSTED EARNINGS RECONCILIATION
Twelve Months Ended December 31, 2015
(Dollars in millions, except per share amounts)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Special Items | | | | | | |
| | Reported Earnings | | Costs to Achieve Mergers | | Edwardsport Settlement | | Midwest Generation Operations | | Ash Basin Settlement and Penalties | | Cost Savings Initiatives | | International Energy Operations | | Discontinued Operations | | Total Adjustments | | Adjusted Earnings |
| SEGMENT INCOME | | | | | | | | | | | | | | | | | | | |
| Electric Utilities and Infrastructure | $ | 2,819 |
| | $ | — |
| | $ | 58 |
| B | $ | — |
| | $ | 11 |
| D | $ | 10 |
| E | $ | — |
| | $ | — |
| | $ | 79 |
| | $ | 2,898 |
|
| Gas Utilities and Infrastructure | 73 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 73 |
|
| Commercial Renewables | 52 |
| | — |
| | — |
| | — |
| | — |
| | 1 |
| F | — |
| | — |
| | 1 |
| | 53 |
|
| Total Reportable Segment Income | 2,944 |
| | — |
| | 58 |
| | — |
| | 11 |
| | 11 |
| | — |
| | — |
| | 80 |
| | 3,024 |
|
| International Energy | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 151 |
| H | — |
| | 151 |
| | 151 |
|
| Other | (299 | ) | | 60 |
| A | — |
| | 98 |
| C | — |
| | 77 |
| G | — |
| | 41 |
| I | 276 |
| | (23 | ) |
| Discontinued Operations | 171 |
| | — |
| | — |
| | (98 | ) | C | — |
| | — |
| | (151 | ) | H | 78 |
| J | (171 | ) | | — |
|
| Net Income Attributable to Duke Energy Corporation | $ | 2,816 |
| | $ | 60 |
| | $ | 58 |
| | $ | — |
| | $ | 11 |
| | $ | 88 |
| | $ | — |
| | $ | 119 |
| | $ | 336 |
| | $ | 3,152 |
|
| EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED | $ | 4.05 |
| | $ | 0.09 |
| | $ | 0.08 |
| | $ | — |
| | $ | 0.02 |
| | $ | 0.13 |
| | $ | — |
| | $ | 0.17 |
| | $ | 0.49 |
| | $ | 4.54 |
|
A - Net of $37 million tax benefit. $95 million recorded within Operating Expenses and $2 million recorded within Interest Expense on the Consolidated Statements of Operations.
B - Net of $35 million tax benefit. $88 million recorded within Impairment charges and $5 million recorded within Other income and expenses, net on the Duke Energy Indiana Consolidated Statements of Operations.
C - Net of $53 million tax expense. Operating results of the nonregulated Midwest generation business classified as discontinued operations, which exclude special items and economic hedges.
D - Net of $3 million tax benefit. Recorded within Operation, maintenance and other on the Consolidated Statements of Operations. Includes $8 million and $6 million at Duke Energy Carolinas and Duke Energy Progress, respectively.
E - Net of $6 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations. Includes $7 million at Duke Energy Carolinas, $4 million at Duke Energy Progress, $2 million at Duke Energy Florida, $1 million at Duke Energy Ohio and $2 million at Duke Energy Indiana.
F - Net of $1 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations.
G - Net of $47 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations.
H - Net of $70 million tax expense. Operating results of the International Disposal Group classified as discontinued operations.
I - State tax expense resulting from the completion of the sale of the nonregulated Midwest generation business.
J - Recorded in Income (Loss) From Discontinued Operations, net of tax on the Consolidated Statements of Operations, and includes the impact of a litigation reserve related to the nonregulated Midwest generation business.
Weighted Average Shares Outstanding, Diluted (reported and adjusted) - 694 million
DUKE ENERGY CORPORATION
Non-GAAP Financial Measures
Management evaluates financial performance in part based on non-GAAP financial measures, adjusted earnings and adjusted diluted EPS. These items represent income from continuing operations attributable to Duke Energy, adjusted for the dollar and per share impact of special items. As discussed below, special items include certain charges and credits, which management believes are not indicative of Duke Energy's ongoing performance. Management believes the presentation of adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them with an additional relevant comparison of Duke Energy’s performance across periods.
Management uses these non-GAAP financial measures for planning and forecasting, and for reporting financial results to the Duke Energy Board of Directors, employees, stockholders, analysts and investors. Adjusted diluted EPS is also used as a basis for employee incentive bonuses. The most directly comparable GAAP measures for adjusted earnings and adjusted diluted EPS are Net Income Attributable to Duke Energy Corporation and Diluted EPS Attributable to Duke Energy Corporation common stockholders.
Special items included in the periods presented include the following:
| |
| • | Costs to achieve mergers represent charges that result from potential or completed strategic acquisitions. |
| |
| • | Cost savings initiatives represents severance charges related to company-wide initiatives to standardize processes and systems, leverage technology and workforce optimization. |
| |
| • | Commercial Renewables Impairment and Asset impairment represent other-than-temporary impairments. |
| |
| • | Edwardsport Settlement and Ash Basin Settlement and Penalties represent charges related to Plea Agreements and settlement agreements with regulators and other governmental entities. |
Adjusted earnings also include the operating results of the nonregulated Midwest generation business and Duke Energy Retail Sales (collectively, the Midwest Generation Disposal Group) and the International Disposal Group, which have been classified as discontinued operations. Management believes inclusion of the operating results of the Disposal Groups within adjusted earnings and adjusted diluted EPS results is a better reflection of Duke Energy's financial performance during the period.
Due to the forward-looking nature of any forecasted adjusted earnings guidance, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items for future periods (such as legal settlements, the impact of regulatory orders, or asset impairments).
Management evaluates segment performance based on segment income and other net expense. Segment income is defined as income from continuing operations attributable to Duke Energy. Segment income includes intercompany revenues and expenses that are eliminated in the Consolidated Financial Statements. Management also uses adjusted segment income as a measure of historical and anticipated future segment performance. Adjusted segment income is a non-GAAP financial measure, as it is based upon segment income adjusted for special items, which are discussed above. Management believes the presentation of adjusted segment income provides useful information to investors, as it provides them with an additional relevant comparison of a segment’s performance across periods. The most directly comparable GAAP measure for adjusted segment income or adjusted other net expense is segment income and other net expense.
Due to the forward-looking nature of any forecasted adjusted segment income or adjusted other net expense and any related growth rates for future periods, information to reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures is not available at this time, as the company is unable to forecast all special items for future periods, as discussed above.
Duke Energy’s adjusted earnings, adjusted diluted EPS, and adjusted segment income may not be comparable to similarly titled measures of another company because other companies may not calculate the measures in the same manner.
