1st Quarter 2016 Statistical Supplement
| Table of Contents | ||||
| DUKE ENERGY CORPORATION (Unaudited) | DUKE ENERGY MONEYPOOL SUPPLEMENT (Unaudited) | |||
Consolidating Statements of Operations (a) | Schedule of Moneypool Balances | |||
| Consolidating Balance Sheets | ||||
| Non-GAAP Disclosures (Unaudited) | ||||
| REGULATED UTILITIES (Unaudited) | Adjusted to Reported Earnings Reconciliations (a) | |||
Consolidating Segment Income (a) | Non-GAAP Financial Measures | |||
| Consolidating Balance Sheets | ||||
| Revenues by Customer Class | ||||
This Statistical Supplement should be read in conjunction with Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2015, and the most recently filed Form 10-Q.
DUKE ENERGY CORPORATION
Consolidating Statements of Operations
(Unaudited)
| Three Months Ended March 31, 2016 | ||||||||||||||||||
| (in millions) | Regulated Utilities | International Energy | Commercial Portfolio | Other | Eliminations / Adjustments | Duke Energy | ||||||||||||
| Operating Revenues | ||||||||||||||||||
| Regulated electric | $ | 5,089 | $ | — | $ | — | $ | — | $ | (36 | ) | $ | 5,053 | |||||
| Nonregulated electric and other | — | 246 | 114 | 29 | 11 | 400 | ||||||||||||
| Regulated natural gas | 170 | — | — | — | (1 | ) | 169 | |||||||||||
| Total operating revenues | 5,259 | 246 | 114 | 29 | (26 | ) | 5,622 | |||||||||||
| Operating Expenses | ||||||||||||||||||
| Fuel used in electric generation and purchased power - regulated | 1,577 | — | — | — | — | 1,577 | ||||||||||||
| Fuel used in electric generation and purchased power - nonregulated | — | 47 | — | 11 | — | 58 | ||||||||||||
| Cost of natural gas | 49 | 11 | — | — | — | 60 | ||||||||||||
| Operation, maintenance and other | 1,332 | 71 | 75 | 36 | (25 | ) | 1,489 | |||||||||||
| Depreciation and amortization | 728 | 22 | 30 | 34 | — | 814 | ||||||||||||
| Property and other taxes | 279 | 3 | 6 | 9 | — | 297 | ||||||||||||
| Impairment charges | 2 | — | — | 2 | (1 | ) | 3 | |||||||||||
| Total operating expenses | 3,967 | 154 | 111 | 92 | (26 | ) | 4,298 | |||||||||||
| Gains on Sales of Other Assets and Other, net | 1 | — | 1 | 7 | — | 9 | ||||||||||||
| Operating Income (Loss) | 1,293 | 92 | 4 | (56 | ) | — | 1,333 | |||||||||||
| Other Income and Expenses, net | 64 | 16 | 2 | 10 | (5 | ) | 87 | |||||||||||
Interest Expense (a) | 277 | 22 | 12 | 205 | (5 | ) | 511 | |||||||||||
| Income (Loss) from Continuing Operations Before Income Taxes | 1,080 | 86 | (6 | ) | (251 | ) | — | 909 | ||||||||||
Income Tax Expense (Benefit) from Continuing Operations (b) (c) | 385 | (39 | ) | (33 | ) | (100 | ) | — | 213 | |||||||||
| Income (Loss) from Continuing Operations | 695 | 125 | 27 | (151 | ) | — | 696 | |||||||||||
| Less: Net Income Attributable to Noncontrolling Interest | — | 2 | — | 3 | — | 5 | ||||||||||||
| Segment Income / Other Net Expense | $ | 695 | $ | 123 | $ | 27 | $ | (154 | ) | $ | — | $ | 691 | |||||
| Income from Discontinued Operations, net of tax | 3 | |||||||||||||||||
| Net Income Attributable to Duke Energy Corporation | $ | 694 | ||||||||||||||||
| Segment Income / Other Net Expense | $ | 695 | $ | 123 | $ | 27 | $ | (154 | ) | $ | — | $ | 691 | |||||
| Special Items | — | — | — | 86 | — | 86 | ||||||||||||
Adjusted Earnings (d) | $ | 695 | $ | 123 | $ | 27 | $ | (68 | ) | $ | — | $ | 777 | |||||
| (a) | Other includes costs to achieve mergers of $100 million related to the mark-to-market unrealized losses related to the forward-starting interest rate swaps and other financing costs for the expected financing of the Piedmont Natural Gas (Piedmont) acquisition. |
| (b) | International Energy includes a net tax benefit of $84 million related to more efficient utilization of foreign tax credits combined with the Company's intent to no longer indefinitely reinvest the foreign earnings of the International Energy segment, net of additional tax expense recognized in 2016 on International Energy's undistributed earnings. |
| (c) | Other includes a tax benefit of $54 million related to costs to achieve mergers and cost savings initiatives. |
| (d) | See page 13 for a detailed reconciliation of Segment Income / Other Net Expense to Adjusted Earnings. |
3
DUKE ENERGY CORPORATION
Consolidating Statements of Operations
(Unaudited)
Three Months Ended March 31, 2015 (a) | ||||||||||||||||||
| (in millions) | Regulated Utilities | International Energy | Commercial Portfolio | Other | Eliminations / Adjustments | Duke Energy | ||||||||||||
| Operating Revenues | ||||||||||||||||||
| Regulated electric | $ | 5,490 | $ | — | $ | — | $ | 1 | $ | (34 | ) | $ | 5,457 | |||||
| Nonregulated electric and other | — | 273 | 73 | 26 | 5 | 377 | ||||||||||||
| Regulated natural gas | 233 | — | — | — | (2 | ) | 231 | |||||||||||
| Total operating revenues | 5,723 | 273 | 73 | 27 | (31 | ) | 6,065 | |||||||||||
| Operating Expenses | ||||||||||||||||||
| Fuel used in electric generation and purchased power - regulated | 1,941 | — | — | — | — | 1,941 | ||||||||||||
| Fuel used in electric generation and purchased power - nonregulated | — | 90 | 14 | — | — | 104 | ||||||||||||
| Cost of natural gas | 97 | 14 | — | — | — | 111 | ||||||||||||
| Operation, maintenance and other | 1,320 | 78 | 46 | 11 | (29 | ) | 1,426 | |||||||||||
| Depreciation and amortization | 698 | 23 | 24 | 32 | — | 777 | ||||||||||||
| Property and other taxes | 249 | 2 | 5 | 7 | 1 | 264 | ||||||||||||
| Total operating expenses | 4,305 | 207 | 89 | 50 | (28 | ) | 4,623 | |||||||||||
| Gains on Sales of Other Assets and Other, net | 7 | — | — | 7 | — | 14 | ||||||||||||
| Operating Income (Loss) | 1,425 | 66 | (16 | ) | (16 | ) | (3 | ) | 1,456 | |||||||||
| Other Income and Expenses, net | 72 | 14 | 2 | 1 | (2 | ) | 87 | |||||||||||
| Interest Expense | 275 | 23 | 12 | 97 | (4 | ) | 403 | |||||||||||
| Income (Loss) from Continuing Operations Before Income Taxes | 1,222 | 57 | (26 | ) | (112 | ) | (1 | ) | 1,140 | |||||||||
| Income Tax Expense (Benefit) from Continuing Operations | 448 | 20 | (33 | ) | (71 | ) | — | 364 | ||||||||||
| Income (Loss) from Continuing Operations | 774 | 37 | 7 | (41 | ) | (1 | ) | 776 | ||||||||||
| Less: Net Income Attributable to Noncontrolling Interest | — | 1 | — | 2 | — | 3 | ||||||||||||
| Segment Income / Other Net Expense | $ | 774 | $ | 36 | $ | 7 | $ | (43 | ) | $ | (1 | ) | $ | 773 | ||||
Income from Discontinued Operations, net (b) | 91 | |||||||||||||||||
| Net Income Attributable to Duke Energy Corporation | $ | 864 | ||||||||||||||||
| Segment Income / Other Net Expense | $ | 774 | $ | 36 | $ | 7 | $ | (43 | ) | $ | (1 | ) | $ | 773 | ||||
| Special Items | — | — | 94 | 13 | 1 | 108 | ||||||||||||
Adjusted Earnings (c) | $ | 774 | $ | 36 | $ | 101 | $ | (30 | ) | $ | — | $ | 881 | |||||
| (a) | During the first quarter of 2016, Duke Energy began to evaluate interim period segment performance based on financial information that includes the impact of income tax levelization within segment income. This represents a change from the previous measure, where the interim period impacts of income tax levelization were included within Other, and therefore excluded from segment income. As a result, prior-period segment results presented have been recast to conform to this change. |
| (b) | Income from Discontinued Operations, net primarily relates to the operating results of the nonregulated Midwest generation business, which was sold in April 2015. |
| (c) | See page 14 for a detailed reconciliation of Segment Income / Other Net Expense to Adjusted Earnings. |
4
DUKE ENERGY CORPORATION
Consolidating Balance Sheets - Assets
(Unaudited)
| March 31, 2016 | ||||||||||||||||||
| (in millions) | Regulated Utilities | International Energy | Commercial Portfolio | Other | Eliminations / Adjustments | Duke Energy | ||||||||||||
| Current Assets | ||||||||||||||||||
| Cash and cash equivalents | $ | 76 | $ | 504 | $ | 14 | $ | 185 | $ | (1 | ) | $ | 778 | |||||
| Receivables, net | 404 | 146 | 20 | 40 | (1 | ) | 609 | |||||||||||
| Restricted receivables of variable interest entities, net | 1,679 | — | 20 | 15 | — | 1,714 | ||||||||||||
| Receivables from affiliated companies | 58 | — | 428 | 3,260 | (3,746 | ) | — | |||||||||||
| Notes receivable from affiliated companies | 451 | — | — | 539 | (990 | ) | — | |||||||||||
| Inventory | 3,614 | 64 | 18 | 25 | — | 3,721 | ||||||||||||
| Regulatory assets | 733 | — | — | 81 | (1 | ) | 813 | |||||||||||
| Other | 174 | 25 | 109 | 50 | (50 | ) | 308 | |||||||||||
| Total current assets | 7,189 | 739 | 609 | 4,195 | (4,789 | ) | 7,943 | |||||||||||
| Investments and Other Assets | ||||||||||||||||||
| Investments in equity method unconsolidated affiliates | 2 | 46 | 474 | 26 | (1 | ) | 547 | |||||||||||
| Investments and advances to (from) subsidiaries | 47 | (23 | ) | (56 | ) | 50,032 | (50,000 | ) | — | |||||||||
| Nuclear decommissioning trust funds | 5,880 | — | — | — | — | 5,880 | ||||||||||||
| Goodwill | 15,950 | 277 | 122 | — | — | 16,349 | ||||||||||||
| Other | 2,007 | 205 | 119 | 1,345 | (640 | ) | 3,036 | |||||||||||
| Total investments and other assets | 23,886 | 505 | 659 | 51,403 | (50,641 | ) | 25,812 | |||||||||||
| Property, Plant and Equipment | ||||||||||||||||||
| Cost | 105,512 | 2,957 | 3,757 | 1,715 | 1 | 113,942 | ||||||||||||
| Accumulated depreciation and amortization | (35,759 | ) | (977 | ) | (470 | ) | (948 | ) | — | (38,154 | ) | |||||||
| Generation facilities to be retired, net | 644 | — | — | — | — | 644 | ||||||||||||
| Net property, plant and equipment | 70,397 | 1,980 | 3,287 | 767 | 1 | 76,432 | ||||||||||||
| Regulatory Assets and Deferred Debits | ||||||||||||||||||
| Regulatory assets | 10,950 | — | — | 533 | — | 11,483 | ||||||||||||
| Other | 13 | — | — | 26 | — | 39 | ||||||||||||
| Total regulatory assets and deferred debits | 10,963 | — | — | 559 | — | 11,522 | ||||||||||||
| Total Assets | 112,435 | 3,224 | 4,555 | 56,924 | (55,429 | ) | 121,709 | |||||||||||
| Segment reclassifications, intercompany balances and other | (597 | ) | 23 | (372 | ) | (54,661 | ) | 55,607 | — | |||||||||
| Segment Assets | $ | 111,838 | $ | 3,247 | $ | 4,183 | $ | 2,263 | $ | 178 | $ | 121,709 | ||||||
5
DUKE ENERGY CORPORATION
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
| March 31, 2016 | ||||||||||||||||||
| (in millions) | Regulated Utilities | International Energy | Commercial Portfolio | Other | Eliminations / Adjustments | Duke Energy | ||||||||||||
| Current Liabilities | ||||||||||||||||||
| Accounts payable | $ | 1,596 | $ | 52 | $ | 91 | $ | 347 | $ | — | $ | 2,086 | ||||||
| Accounts payable to affiliated companies | 3,336 | 127 | 227 | 26 | (3,716 | ) | — | |||||||||||
| Notes payable to affiliated companies | 539 | — | — | 451 | (990 | ) | — | |||||||||||
| Notes payable and commercial paper | — | — | — | 3,486 | — | 3,486 | ||||||||||||
| Taxes accrued | 426 | 47 | (262 | ) | 183 | — | 394 | |||||||||||
| Interest accrued | 352 | 22 | — | 107 | — | 481 | ||||||||||||
| Current maturities of long-term debt | 1,413 | 68 | 82 | 512 | — | 2,075 | ||||||||||||
| Regulatory liabilities | 404 | — | — | — | — | 404 | ||||||||||||
| Other | 1,436 | 55 | 49 | 508 | (83 | ) | 1,965 | |||||||||||
| Total current liabilities | 9,502 | 371 | 187 | 5,620 | (4,789 | ) | 10,891 | |||||||||||
| Long-Term Debt | 25,879 | 653 | 995 | 10,704 | 1 | 38,232 | ||||||||||||
| Long-Term Debt Payable to Affiliated Companies | 625 | — | 17 | — | (642 | ) | — | |||||||||||
| Deferred Credits and Other Liabilities | ||||||||||||||||||
| Deferred income taxes | 15,057 | 189 | 315 | (2,736 | ) | — | 12,825 | |||||||||||
| Investment tax credits | 493 | — | — | — | — | 493 | ||||||||||||
| Accrued pension and other post-retirement benefit costs | 678 | 1 | — | 398 | — | 1,077 | ||||||||||||
| Asset retirement obligations | 10,186 | 16 | 67 | 1 | (1 | ) | 10,269 | |||||||||||
| Regulatory liabilities | 6,218 | — | — | 60 | — | 6,278 | ||||||||||||
| Other | 1,018 | 84 | 281 | 318 | 2 | 1,703 | ||||||||||||
| Total deferred credits and other liabilities | 33,650 | 290 | 663 | (1,959 | ) | 1 | 32,645 | |||||||||||
| Equity | ||||||||||||||||||
| Total Duke Energy Corporation stockholders' equity | 42,779 | 1,869 | 2,671 | 42,573 | (50,000 | ) | 39,892 | |||||||||||
| Noncontrolling interests | — | 41 | 22 | (14 | ) | — | 49 | |||||||||||
Total equity(a) | 42,779 | 1,910 | 2,693 | 42,559 | (50,000 | ) | 39,941 | |||||||||||
| Total Liabilities and Equity | 112,435 | 3,224 | 4,555 | 56,924 | (55,429 | ) | 121,709 | |||||||||||
| Segment reclassifications, intercompany balances and other | (597 | ) | 23 | (372 | ) | (54,661 | ) | 55,607 | — | |||||||||
| Segment Liabilities and Equity | $ | 111,838 | $ | 3,247 | $ | 4,183 | $ | 2,263 | $ | 178 | $ | 121,709 | ||||||
| (a) | As of March 31, 2016, the International Energy segment had a carrying value of approximately $2.6 billion, adjusted for $644 million of cumulative foreign currency translation losses currently classified as accumulated other comprehensive loss. |
6
REGULATED UTILITIES
Consolidating Segment Income
(Unaudited)
| Three Months Ended March 31, 2016 | ||||||||||||||||||||||||
| (in millions) | Duke Energy Carolinas | Duke Energy Progress | Duke Energy Florida | Duke Energy Ohio(a) | Duke Energy Kentucky | Duke Energy Indiana | Eliminations / Adjustments | Regulated Utilities | ||||||||||||||||
| Operating Revenues | ||||||||||||||||||||||||
| Regulated electric | $ | 1,740 | $ | 1,307 | $ | 1,024 | $ | 256 | $ | 84 | $ | 714 | $ | (36 | ) | $ | 5,089 | |||||||
| Regulated natural gas | — | — | — | 133 | 37 | — | — | 170 | ||||||||||||||||
| Total operating revenues | 1,740 | 1,307 | 1,024 | 389 | 121 | 714 | (36 | ) | 5,259 | |||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||
| Fuel used in electric generation and purchased power | 421 | 448 | 412 | 79 | 32 | 228 | (43 | ) | 1,577 | |||||||||||||||
| Cost of natural gas | — | — | — | 34 | 15 | — | — | 49 | ||||||||||||||||
| Operation, maintenance and other | 492 | 373 | 199 | 77 | 32 | 158 | 1 | 1,332 | ||||||||||||||||
| Depreciation and amortization | 254 | 175 | 114 | 50 | 11 | 125 | (1 | ) | 728 | |||||||||||||||
| Property and other taxes | 67 | 41 | 78 | 68 | 3 | 23 | (1 | ) | 279 | |||||||||||||||
| Impairment charges | — | — | 2 | — | — | — | — | 2 | ||||||||||||||||
| Total operating expenses | 1,234 | 1,037 | 805 | 308 | 93 | 534 | (44 | ) | 3,967 | |||||||||||||||
| Gains on Sales of Other Assets and Other, net | — | 1 | — | 1 | — | — | (1 | ) | 1 | |||||||||||||||
| Operating Income | 506 | 271 | 219 | 82 | 28 | 180 | 7 | 1,293 | ||||||||||||||||
| Other Income and Expenses, net | 37 | 17 | 5 | 1 | 1 | 4 | (1 | ) | 64 | |||||||||||||||
| Interest Expense | 107 | 63 | 41 | 16 | 4 | 44 | 2 | 277 | ||||||||||||||||
| Income Before Income Taxes | 436 | 225 | 183 | 67 | 25 | 140 | 4 | 1,080 | ||||||||||||||||
| Income Tax Expense | 148 | 80 | 69 | 18 | 6 | 43 | 21 | 385 | ||||||||||||||||
Segment Income | $ | 288 | $ | 145 | $ | 114 | $ | 49 | $ | 19 | $ | 97 | $ | (17 | ) | $ | 695 | |||||||
| (a) | Amounts exclude results from the wholly owned subsidiary, Duke Energy Kentucky. |
7
REGULATED UTILITIES
Consolidating Segment Income
(Unaudited)
| Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
| (in millions) | Duke Energy Carolinas | Duke Energy Progress | Duke Energy Florida | Duke Energy Ohio (a) | Duke Energy Kentucky | Duke Energy Indiana | Eliminations / Adjustments | Regulated Utilities | ||||||||||||||||
| Operating Revenues | ||||||||||||||||||||||||
| Regulated electric | $ | 1,901 | $ | 1,449 | $ | 1,086 | $ | 245 | $ | 94 | $ | 788 | $ | (73 | ) | $ | 5,490 | |||||||
| Regulated natural gas | — | — | — | 178 | 55 | — | — | 233 | ||||||||||||||||
| Total operating revenues | 1,901 | 1,449 | 1,086 | 423 | 149 | 788 | (73 | ) | 5,723 | |||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||
| Fuel used in electric generation and purchased power | 578 | 575 | 457 | 75 | 40 | 294 | (78 | ) | 1,941 | |||||||||||||||
| Cost of natural gas | — | — | — | 69 | 28 | — | — | 97 | ||||||||||||||||
| Operation, maintenance and other | 476 | 368 | 183 | 77 | 35 | 179 | 2 | 1,320 | ||||||||||||||||
| Depreciation and amortization | 249 | 152 | 134 | 45 | 12 | 104 | 2 | 698 | ||||||||||||||||
| Property and other taxes | 70 | 32 | 80 | 67 | 3 | (1 | ) | (2 | ) | 249 | ||||||||||||||
| Total operating expenses | 1,373 | 1,127 | 854 | 333 | 118 | 576 | (76 | ) | 4,305 | |||||||||||||||
| Gains on Sales of Other Assets and Other, net | — | — | — | 6 | — | — | 1 | 7 | ||||||||||||||||
| Operating Income | 528 | 322 | 232 | 96 | 31 | 212 | 4 | 1,425 | ||||||||||||||||
| Other Income and Expenses, net | 42 | 20 | 6 | 2 | 1 | 5 | (4 | ) | 72 | |||||||||||||||
| Interest Expense | 102 | 60 | 49 | 16 | 4 | 45 | (1 | ) | 275 | |||||||||||||||
| Income Before Income Taxes | 468 | 282 | 189 | 82 | 28 | 172 | 1 | 1,222 | ||||||||||||||||
| Income Tax Expense | 168 | 95 | 73 | 30 | 10 | 62 | 10 | 448 | ||||||||||||||||
| Segment Income | $ | 300 | $ | 187 | $ | 116 | $ | 52 | $ | 18 | $ | 110 | $ | (9 | ) | $ | 774 | |||||||
| (a) | Amounts exclude results from the wholly owned subsidiary, Duke Energy Kentucky. |
8
REGULATED UTILITIES
Consolidating Balance Sheets - Assets
(Unaudited)
| March 31, 2016 | ||||||||||||||||||||||||
| (in millions) | Duke Energy Carolinas | Duke Energy Progress | Duke Energy Florida | Duke Energy Ohio(a) | Duke Energy Kentucky | Duke Energy Indiana | Eliminations / Adjustments | Regulated Utilities | ||||||||||||||||
| Current Assets | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | 17 | $ | 11 | $ | 12 | $ | 8 | $ | 11 | $ | 17 | $ | — | $ | 76 | ||||||||
| Receivables, net | 129 | 47 | 61 | 80 | 2 | 82 | 3 | 404 | ||||||||||||||||
| Restricted receivables of variable interest entities, net | 615 | 372 | 256 | — | — | — | 436 | 1,679 | ||||||||||||||||
| Receivables from affiliated companies | 78 | 5 | 26 | 8 | 9 | 106 | (174 | ) | 58 | |||||||||||||||
| Notes receivable from affiliated companies | 854 | — | — | — | 19 | 102 | (524 | ) | 451 | |||||||||||||||
| Inventory | 1,236 | 1,074 | 674 | 64 | 41 | 525 | — | 3,614 | ||||||||||||||||
| Regulatory assets | 269 | 222 | 111 | 10 | 7 | 114 | — | 733 | ||||||||||||||||
| Other | 32 | 47 | 53 | 9 | 17 | 16 | — | 174 | ||||||||||||||||
| Total current assets | 3,230 | 1,778 | 1,193 | 179 | 106 | 962 | (259 | ) | 7,189 | |||||||||||||||
| Investments and Other Assets | ||||||||||||||||||||||||
| Investments in equity method unconsolidated affiliates | — | — | 2 | — | — | — | — | 2 | ||||||||||||||||
| Investments and advances to subsidiaries | 10 | 19 | 18 | — | — | — | — | 47 | ||||||||||||||||
| Nuclear decommissioning trust funds | 3,081 | 2,068 | 730 | — | — | — | 1 | 5,880 | ||||||||||||||||
| Goodwill | — | — | — | 920 | — | — | 15,030 | 15,950 | ||||||||||||||||
| Other | 1,002 | 520 | 298 | 24 | 6 | 204 | (47 | ) | 2,007 | |||||||||||||||
| Total investments and other assets | 4,093 | 2,607 | 1,048 | 944 | 6 | 204 | 14,984 | 23,886 | ||||||||||||||||
| Property, Plant and Equipment | ||||||||||||||||||||||||
| Cost | 39,833 | 27,503 | 15,652 | 5,710 | 2,093 | 13,864 | 857 | 105,512 | ||||||||||||||||
| Accumulated depreciation and amortization | (13,769 | ) | (10,266 | ) | (4,734 | ) | (1,585 | ) | (930 | ) | (4,472 | ) | (3 | ) | (35,759 | ) | ||||||||
| Generation facilities to be retired, net | — | 531 | — | — | — | 113 | — | 644 | ||||||||||||||||
| Net property, plant and equipment | 26,064 | 17,768 | 10,918 | 4,125 | 1,163 | 9,505 | 854 | 70,397 | ||||||||||||||||
| Regulatory Assets and Deferred Debits | ||||||||||||||||||||||||
| Regulatory assets | 2,801 | 2,725 | 2,730 | 441 | 71 | 766 | 1,416 | 10,950 | ||||||||||||||||
| Other | 4 | 3 | 2 | 2 | — | 2 | — | 13 | ||||||||||||||||
| Total regulatory assets and deferred debits | 2,805 | 2,728 | 2,732 | 443 | 71 | 768 | 1,416 | 10,963 | ||||||||||||||||
| Total Assets | 36,192 | 24,881 | 15,891 | 5,691 | 1,346 | 11,439 | 16,995 | 112,435 | ||||||||||||||||
| Intercompany balances and other | (251 | ) | (162 | ) | (91 | ) | (11 | ) | — | (98 | ) | 16 | (597 | ) | ||||||||||
| Reportable Segment Assets | $ | 35,941 | $ | 24,719 | $ | 15,800 | $ | 5,680 | $ | 1,346 | $ | 11,341 | $ | 17,011 | $ | 111,838 | ||||||||
| (a) | Excludes the balances of the wholly owned subsidiary, Duke Energy Kentucky. |
9
REGULATED UTILITIES
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
| March 31, 2016 | ||||||||||||||||||||||||
| (in millions) | Duke Energy Carolinas | Duke Energy Progress | Duke Energy Florida | Duke Energy Ohio(a) | Duke Energy Kentucky | Duke Energy Indiana | Eliminations / Adjustments | Regulated Utilities | ||||||||||||||||
| Current Liabilities | ||||||||||||||||||||||||
| Accounts payable | $ | 597 | $ | 295 | $ | 371 | $ | 188 | $ | 17 | $ | 124 | $ | 4 | $ | 1,596 | ||||||||
| Accounts payable to (from) affiliated companies | 236 | 168 | 73 | (2 | ) | 14 | 11 | 2,836 | 3,336 | |||||||||||||||
| Notes payable to affiliated companies | — | 108 | 948 | 8 | — | — | (525 | ) | 539 | |||||||||||||||
| Taxes accrued | 83 | 33 | 64 | 111 | 11 | 119 | 5 | 426 | ||||||||||||||||
| Interest accrued | 134 | 80 | 59 | 26 | 3 | 51 | (1 | ) | 352 | |||||||||||||||
| Current maturities of long-term debt | 468 | 252 | 13 | 4 | 51 | 547 | 78 | 1,413 | ||||||||||||||||
| Regulatory liabilities | 48 | 93 | 186 | 15 | 3 | 60 | (1 | ) | 404 | |||||||||||||||
| Other | 452 | 382 | 450 | 53 | 18 | 79 | 2 | 1,436 | ||||||||||||||||
| Total current liabilities | 2,018 | 1,411 | 2,164 | 403 | 117 | 991 | 2,398 | 9,502 | ||||||||||||||||
| Long-Term Debt | 8,592 | 6,163 | 4,252 | 1,275 | 287 | 3,071 | 2,239 | 25,879 | ||||||||||||||||
| Long-Term Debt Payable to Affiliated Companies | 300 | 150 | — | — | 25 | 150 | — | 625 | ||||||||||||||||
| Deferred Credits and Other Liabilities | ||||||||||||||||||||||||
| Deferred income taxes | 6,318 | 3,067 | 2,563 | 1,145 | 298 | 1,650 | 16 | 15,057 | ||||||||||||||||
| Investment tax credits | 197 | 154 | — | 3 | 1 | 138 | — | 493 | ||||||||||||||||
| Accrued pension and other post-retirement benefit costs | 105 | 261 | 240 | 40 | 12 | 78 | (58 | ) | 678 | |||||||||||||||
| Asset retirement obligations | 3,913 | 4,573 | 799 | 22 | 103 | 525 | 251 | 10,186 | ||||||||||||||||
| Regulatory liabilities | 2,829 | 1,876 | 509 | 192 | 53 | 759 | — | 6,218 | ||||||||||||||||
| Other | 642 | 31 | 132 | 134 | 27 | 59 | (7 | ) | 1,018 | |||||||||||||||
| Total deferred credits and other liabilities | 14,004 | 9,962 | 4,243 | 1,536 | 494 | 3,209 | 202 | 33,650 | ||||||||||||||||
| Equity | 11,278 | 7,195 | 5,232 | 2,477 | 423 | 4,018 | 12,156 | 42,779 | ||||||||||||||||
| Total Liabilities and Equity | 36,192 | 24,881 | 15,891 | 5,691 | 1,346 | 11,439 | 16,995 | 112,435 | ||||||||||||||||
| Intercompany balances and other | (251 | ) | (162 | ) | (91 | ) | (11 | ) | — | (98 | ) | 16 | (597 | ) | ||||||||||
| Reportable Segment Liabilities and Equity | $ | 35,941 | $ | 24,719 | $ | 15,800 | $ | 5,680 | $ | 1,346 | $ | 11,341 | $ | 17,011 | $ | 111,838 | ||||||||
| (a) | Excludes the balances of the wholly owned subsidiary, Duke Energy Kentucky. |
10
REGULATED UTILITIES
Revenues By Customer Class
(Unaudited)
| Three Months Ended March 31, 2016 | ||||||||||||||||||||||||
| (in millions) | Duke Energy Carolinas | Duke Energy Progress | Duke Energy Florida | Duke Energy Ohio(a) | Duke Energy Kentucky | Duke Energy Indiana | Eliminations / Adjustments | Regulated Utilities | ||||||||||||||||
| Regulated Electric Revenues | ||||||||||||||||||||||||
| Residential | $ | 787 | $ | 514 | $ | 520 | $ | 164 | $ | 34 | $ | 269 | $ | — | $ | 2,288 | ||||||||
| General service | 526 | 311 | 307 | 76 | 32 | 171 | — | 1,423 | ||||||||||||||||
| Industrial | 287 | 148 | 62 | 16 | 13 | 171 | — | 697 | ||||||||||||||||
| Wholesale | 114 | 268 | 58 | — | 5 | 88 | — | 533 | ||||||||||||||||
| Change in unbilled | 6 | (9 | ) | 2 | (5 | ) | (1 | ) | (9 | ) | — | (16 | ) | |||||||||||
| Other revenues | 20 | 75 | 75 | 5 | 1 | 24 | (36 | ) | 164 | |||||||||||||||
| Total Revenues | $ | 1,740 | $ | 1,307 | $ | 1,024 | $ | 256 | $ | 84 | $ | 714 | $ | (36 | ) | $ | 5,089 | |||||||
| Regulated Natural Gas Revenues | ||||||||||||||||||||||||
| Residential | $ | — | $ | — | $ | — | $ | 87 | $ | 28 | $ | — | $ | — | $ | 115 | ||||||||
| General service | — | — | — | 38 | 10 | — | — | 48 | ||||||||||||||||
| Industrial | — | — | — | 5 | 2 | — | — | 7 | ||||||||||||||||
| Change in unbilled | — | — | — | (2 | ) | (1 | ) | — | — | (3 | ) | |||||||||||||
| Other revenues | — | — | — | 5 | (2 | ) | — | — | 3 | |||||||||||||||
| Total Revenues | $ | — | $ | — | $ | — | $ | 133 | $ | 37 | $ | — | $ | — | $ | 170 | ||||||||
| Three Months Ended March 31, 2015 | ||||||||||||||||||||||||
| (in millions) | Duke Energy Carolinas | Duke Energy Progress | Duke Energy Florida | Duke Energy Ohio(a) | Duke Energy Kentucky | Duke Energy Indiana | Eliminations / Adjustments | Regulated Utilities | ||||||||||||||||
| Regulated Electric Revenues | ||||||||||||||||||||||||
| Residential | $ | 878 | $ | 593 | $ | 556 | $ | 164 | $ | 38 | $ | 321 | $ | — | $ | 2,550 | ||||||||
| General service | 533 | 326 | 335 | 75 | 34 | 190 | — | 1,493 | ||||||||||||||||
| Industrial | 288 | 159 | 69 | 15 | 13 | 188 | — | 732 | ||||||||||||||||
| Wholesale | 116 | 299 | 76 | — | 14 | 78 | — | 583 | ||||||||||||||||
| Change in unbilled | (42 | ) | (26 | ) | (9 | ) | (7 | ) | (2 | ) | (21 | ) | — | (107 | ) | |||||||||
| Other revenues | 128 | 98 | 59 | (2 | ) | (3 | ) | 32 | (73 | ) | 239 | |||||||||||||
| Total Revenues | $ | 1,901 | $ | 1,449 | $ | 1,086 | $ | 245 | $ | 94 | $ | 788 | $ | (73 | ) | $ | 5,490 | |||||||
| Regulated Natural Gas Revenues | ||||||||||||||||||||||||
| Residential | $ | — | $ | — | $ | — | $ | 116 | $ | 39 | $ | — | $ | — | $ | 155 | ||||||||
| General service | — | — | — | 51 | 16 | — | — | 67 | ||||||||||||||||
| Industrial | — | — | — | 8 | 2 | — | — | 10 | ||||||||||||||||
| Change in unbilled | — | — | — | (3 | ) | (1 | ) | — | — | (4 | ) | |||||||||||||
| Other revenues | — | — | — | 6 | (1 | ) | — | — | 5 | |||||||||||||||
| Total Revenues | $ | — | $ | — | $ | — | $ | 178 | $ | 55 | $ | — | $ | — | $ | 233 | ||||||||
(a) Amounts exclude results from the wholly owned subsidiary, Duke Energy Kentucky.
11
DUKE ENERGY MONEYPOOL SUPPLEMENT
Schedule of Moneypool Balances
(Unaudited)
| March 31, 2016 | ||||||||||||||||||||||||
| (in millions) | Duke Energy(a) | Duke Energy Carolinas | Duke Energy Progress | Duke Energy Florida | Duke Energy Ohio(b) | Duke Energy Kentucky | Duke Energy Indiana | Consolidated | ||||||||||||||||
Moneypool lendings (borrowings) of commercial paper(c) | $ | 1,164 | $ | (300 | ) | $ | (205 | ) | $ | (480 | ) | $ | (4 | ) | $ | (25 | ) | $ | (150 | ) | $ | — | ||
Moneypool (borrowings) lendings(d) | (451 | ) | 855 | (53 | ) | (468 | ) | (4 | ) | 19 | 102 | — | ||||||||||||
| (a) | Duke Energy only includes Duke Energy Corporation (the Parent) and Duke Energy Business Services (DEBS). |
| (b) | Excludes amounts of the wholly owned subsidiary, Duke Energy Kentucky. |
| (c) | Duke Energy issues commercial paper and loans a portion of the proceeds through the moneypool to the subsidiary Public Utilities. |
| (d) | Duke Energy participates in a moneypool arrangement with the subsidiary Public Utilities. Under the arrangement, short-term loans may be provided to affiliates. The Parent may loan funds through the moneypool but is prohibited from borrowing funds. DEBS is permitted to both borrow and loan funds into the moneypool. Borrowings presented for Duke Energy are borrowed by DEBS. |
12
DUKE ENERGY CORPORATION
ADJUSTED TO REPORTED EARNINGS RECONCILIATION
Three Months Ended March 31, 2016
(Dollars in millions, except per-share amounts)
| Special Items | ||||||||||||||||||||||||
Adjusted Earnings | Costs to Achieve, Mergers | Cost Savings Initiatives | Discontinued Operations | Total Adjustments | Reported Earnings | |||||||||||||||||||
| SEGMENT INCOME | ||||||||||||||||||||||||
| Regulated Utilities | $ | 695 | $ | — | $ | — | $ | — | $ | — | $ | 695 | ||||||||||||
| International Energy | 123 | — | — | — | — | 123 | ||||||||||||||||||
| Commercial Portfolio | 27 | — | — | — | — | 27 | ||||||||||||||||||
| Total Reportable Segment Income | 845 | — | — | — | — | 845 | ||||||||||||||||||
| Other | (68 | ) | (74 | ) | A | (12 | ) | B | — | (86 | ) | (154 | ) | |||||||||||
| Total Reportable Segment Income and Other Net Expense | 777 | (74 | ) | (12 | ) | — | (86 | ) | 691 | |||||||||||||||
| Discontinued Operations | — | — | — | 3 | C | 3 | 3 | |||||||||||||||||
| Net Income Attributable to Duke Energy Corporation | $ | 777 | $ | (74 | ) | $ | (12 | ) | $ | 3 | $ | (83 | ) | $ | 694 | |||||||||
| EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC | $ | 1.13 | $ | (0.11 | ) | $ | (0.02 | ) | $ | 0.01 | $ | (0.12 | ) | $ | 1.01 | |||||||||
| EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED | $ | 1.13 | $ | (0.11 | ) | $ | (0.02 | ) | $ | 0.01 | $ | (0.12 | ) | $ | 1.01 | |||||||||
A - Net of $46 million tax benefit. Includes $1 million recorded within Operating Revenues, $19 million recorded within Operating Expenses and $100 million recorded within Interest Expense on the Condensed Consolidated Statements of Operations.
B - Net of $8 million tax benefit. Consists of severance costs recorded within Operation, maintenance and other on the Condensed Consolidated Statements of Operations.
C - Recorded in Income (Loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.
Weighted Average Shares (reported and adjusted) - in millions
Basic 689
Diluted 689
13
DUKE ENERGY CORPORATION
ADJUSTED TO REPORTED EARNINGS RECONCILIATION
Three Months Ended March 31, 2015
(Dollars in millions, except per-share amounts)
| Special Items | ||||||||||||||||||||||||
Adjusted Earnings | Costs to Achieve, Progress Merger | Midwest Generation Operations | Discontinued Operations | Total Adjustments | Reported Earnings | |||||||||||||||||||
| SEGMENT INCOME | ||||||||||||||||||||||||
| Regulated Utilities | $ | 774 | $ | — | $ | — | $ | — | $ | — | $ | 774 | ||||||||||||
| International Energy | 36 | — | — | — | — | 36 | ||||||||||||||||||
| Commercial Portfolio | 101 | — | (94 | ) | B | — | (94 | ) | 7 | |||||||||||||||
| Total Reportable Segment Income | 911 | — | (94 | ) | — | (94 | ) | 817 | ||||||||||||||||
| Other | (30 | ) | (13 | ) | A | — | — | (13 | ) | (43 | ) | |||||||||||||
| Intercompany Eliminations | — | — | — | (1 | ) | D | (1 | ) | (1 | ) | ||||||||||||||
| Total Reportable Segment Income and Other Net Expense | 881 | (13 | ) | (94 | ) | (1 | ) | (108 | ) | 773 | ||||||||||||||
| Discontinued Operations | — | — | 94 | B | (3 | ) | C | 91 | 91 | |||||||||||||||
| Net Income Attributable to Duke Energy Corporation | $ | 881 | $ | (13 | ) | $ | — | $ | (4 | ) | $ | (17 | ) | $ | 864 | |||||||||
| EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC | $ | 1.24 | $ | (0.02 | ) | $ | — | $ | — | $ | (0.02 | ) | $ | 1.22 | ||||||||||
| EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED | $ | 1.24 | $ | (0.02 | ) | $ | — | $ | — | $ | (0.02 | ) | $ | 1.22 | ||||||||||
A - Net of $8 million tax benefit. Recorded within Operating Expenses on the Condensed Consolidated Statements of Operations.
B - Operating results of the nonregulated Midwest generation business that had been classified from discontinued operations after adjustment for special items and economic hedges (net of $53 million tax benefit).
C - Recorded in Income (Loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.
D - Reverses the impact on eliminations of classifying the nonregulated Midwest generation business as discontinued operations.
Weighted Average Shares (reported and adjusted) - in millions
Basic 708
Diluted 708
14
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 net of income (loss) attributable to noncontrolling interests, adjusted for the dollar and per-share impact of special items. Special items represent certain charges and credits, which management believes will not be recurring on a regular basis. The special items for the period ended March 31, 2015, include the operating results of the nonregulated Midwest generation business and Duke Energy Retail Sales (collectively, the Disposal Group) which are classified as discontinued operations for GAAP purposes. Management believes inclusion of the Disposal Group's operating results within adjusted earnings and adjusted diluted EPS results in a better reflection of Duke Energy's financial performance. Costs to achieve mergers includes financing costs related to the unsecured bridge facility to support the acquisition of Piedmont and the mark-to-market unrealized losses related to the forward-starting interest rate swaps used by Duke Energy to manage interest rate exposure for the expected financing of the Piedmont acquisition. The mark-to-market impact of forward-starting interest rate swaps is recognized in GAAP earnings immediately as the contracts do not qualify for hedge accounting or regulatory treatment. Management believes excluding the impact of the mark-to-market losses of the forward-starting interest rate swaps from adjusted earnings better reflects Duke Energy's financial performance and therefore has excluded these impacts from adjusted earnings and adjusted diluted EPS. Management believes the presentation of adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them 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 results to the Duke Energy Board of Directors, employees, stockholders, analysts and investors concerning Duke Energy’s financial performance. 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.
Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests. Segment income, as discussed below, includes intercompany revenues and expenses that are eliminated in the Condensed 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, including the operating results of the Disposal Group classified as discontinued operations for GAAP purposes. Management believes the presentation of adjusted segment income provides useful information to investors as it provides an additional relevant comparison of a segment’s performance across periods. The most directly comparable GAAP measure for adjusted segment income is segment income, which represents segment income from continuing operations not adjusted for any special items.
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 entities may not calculate the measures in the same manner.
15