Attached files
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| 8-K - FORM 8-K - Duke Energy CORP | a1q2017statisticalsupplement.htm |
1st Quarter 2017 Statistical Supplement
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 (Piedmont) subsequent to the acquisition on October 3, 2016, and should be read in conjunction with i) Duke Energy and Piedmont's combined Form 10-Q for the three months ended March 31, 2017, ii) Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2016, iii) Piedmont's Annual Report on Form 10-K for the year ended October 31, 2016, and iv) the transition report filed by Piedmont on Form 10-Q as of December 31, 2016, 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.
Prior periods have been recast to conform to the current segment structure.
DUKE ENERGY CORPORATION
Consolidating Statements of Operations
(Unaudited)
Three Months Ended March 31, 2017 | ||||||||||||||||||
(in millions) | Electric Utilities and Infrastructure | Gas Utilities and Infrastructure | Commercial Renewables | Other | Eliminations / Adjustments | Duke Energy | ||||||||||||
Operating Revenues | ||||||||||||||||||
Regulated electric | $ | 4,947 | $ | — | $ | — | $ | — | $ | (34 | ) | $ | 4,913 | |||||
Regulated natural gas | — | 668 | — | — | (22 | ) | 646 | |||||||||||
Nonregulated electric and other | — | 2 | 128 | 33 | 7 | 170 | ||||||||||||
Total operating revenues | 4,947 | 670 | 128 | 33 | (49 | ) | 5,729 | |||||||||||
Operating Expenses | ||||||||||||||||||
Fuel used in electric generation and purchased power | 1,454 | — | — | 15 | (20 | ) | 1,449 | |||||||||||
Cost of natural gas | — | 258 | — | — | — | 258 | ||||||||||||
Operation, maintenance and other | 1,271 | 105 | 77 | 8 | (28 | ) | 1,433 | |||||||||||
Depreciation and amortization | 737 | 57 | 39 | 26 | — | 859 | ||||||||||||
Property and other taxes | 261 | 30 | 9 | 3 | 1 | 304 | ||||||||||||
Total operating expenses | 3,723 | 450 | 125 | 52 | (47 | ) | 4,303 | |||||||||||
Gains on Sales of Other Assets and Other, net | 3 | — | 2 | 5 | 1 | 11 | ||||||||||||
Operating Income (Loss) | 1,227 | 220 | 5 | (14 | ) | (1 | ) | 1,437 | ||||||||||
Other Income and Expenses | ||||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | — | 17 | (1 | ) | 13 | — | 29 | |||||||||||
Other income and expenses, net | 79 | 1 | — | 8 | (2 | ) | 86 | |||||||||||
Total Other Income and Expenses | 79 | 18 | (1 | ) | 21 | (2 | ) | 115 | ||||||||||
Interest Expense | 315 | 26 | 19 | 134 | (3 | ) | 491 | |||||||||||
Income (Loss) from Continuing Operations Before Income Taxes | 991 | 212 | (15 | ) | (127 | ) | — | 1,061 | ||||||||||
Income Tax Expense (Benefit) from Continuing Operations | 356 | 79 | (39 | ) | (52 | ) | — | 344 | ||||||||||
Income (Loss) from Continuing Operations | 635 | 133 | 24 | (75 | ) | — | 717 | |||||||||||
Less: Net (Loss) Income Attributable to Noncontrolling Interest | — | — | (1 | ) | 2 | — | 1 | |||||||||||
Segment Income / Other Net Expense / Net Income Attributable to Duke Energy Corporation | $ | 635 | $ | 133 | $ | 25 | $ | (77 | ) | $ | — | $ | 716 | |||||
Special Items | — | — | — | 10 | — | 10 | ||||||||||||
Adjusted Earnings(a) | $ | 635 | $ | 133 | $ | 25 | $ | (67 | ) | $ | — | $ | 726 | |||||
(a) | See page 16 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, 2016(a) | |||||||||||||||||||||
(in millions) | Electric Utilities and Infrastructure | Gas Utilities and Infrastructure | Commercial Renewables | Other | International Energy | Eliminations / Adjustments | Duke Energy | ||||||||||||||
Operating Revenues | |||||||||||||||||||||
Regulated electric | $ | 5,089 | $ | — | $ | — | $ | — | $ | — | $ | (36 | ) | $ | 5,053 | ||||||
Regulated natural gas | — | 170 | — | — | — | (1 | ) | 169 | |||||||||||||
Nonregulated electric and other | — | — | 114 | 29 | — | 12 | 155 | ||||||||||||||
Total operating revenues | 5,089 | 170 | 114 | 29 | — | (25 | ) | 5,377 | |||||||||||||
Operating Expenses | |||||||||||||||||||||
Fuel used in electric generation and purchased power | 1,577 | — | — | 11 | — | — | 1,588 | ||||||||||||||
Cost of natural gas | — | 49 | — | — | — | — | 49 | ||||||||||||||
Operation, maintenance and other | 1,298 | 32 | 73 | 36 | — | (23 | ) | 1,416 | |||||||||||||
Depreciation and amortization | 709 | 20 | 30 | 34 | — | — | 793 | ||||||||||||||
Property and other taxes | 262 | 18 | 6 | 9 | — | — | 295 | ||||||||||||||
Impairment charges | 2 | — | — | 2 | — | (1 | ) | 3 | |||||||||||||
Total operating expenses | 3,848 | 119 | 109 | 92 | — | (24 | ) | 4,144 | |||||||||||||
Gains on Sales of Other Assets and Other, net | 1 | — | 1 | 5 | — | — | 7 | ||||||||||||||
Operating Income (Loss) | 1,242 | 51 | 6 | (58 | ) | — | (1 | ) | 1,240 | ||||||||||||
Other Income and Expenses | |||||||||||||||||||||
Equity in earnings (losses) of unconsolidated affiliates | — | 2 | (2 | ) | 7 | — | 1 | 8 | |||||||||||||
Other income and expenses, net | 63 | 1 | — | 10 | — | (4 | ) | 70 | |||||||||||||
Total Other Income and Expenses | 63 | 3 | (2 | ) | 17 | — | (3 | ) | 78 | ||||||||||||
Interest Expense(b) | 270 | 7 | 11 | 205 | — | (4 | ) | 489 | |||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes | 1,035 | 47 | (7 | ) | (246 | ) | — | — | 829 | ||||||||||||
Income Tax Expense (Benefit) from Continuing Operations | 371 | 15 | (33 | ) | (101 | ) | — | — | 252 | ||||||||||||
Income (Loss) from Continuing Operations | 664 | 32 | 26 | (145 | ) | — | — | 577 | |||||||||||||
Less: Net Income Attributable to Noncontrolling Interest | — | — | — | 3 | — | — | 3 | ||||||||||||||
Segment Income / Other Net Expense | $ | 664 | $ | 32 | $ | 26 | $ | (148 | ) | $ | — | $ | — | $ | 574 | ||||||
Income from Discontinued Operations, net of tax | 120 | ||||||||||||||||||||
Net Income Attributable to Duke Energy Corporation | $ | 694 | |||||||||||||||||||
Segment Income / Other Net Expense | $ | 664 | $ | 32 | $ | 26 | $ | (148 | ) | $ | — | $ | — | $ | 574 | ||||||
Special Items(c) | — | — | — | 86 | 117 | — | 203 | ||||||||||||||
Adjusted Earnings(d) | $ | 664 | $ | 32 | $ | 26 | $ | (62 | ) | $ | 117 | $ | — | $ | 777 | ||||||
(a) | Amounts have been recast to conform to the current segment structure. |
(b) | Other includes $100 million related to Piedmont acquisition financing, primarily due to losses on forward-starting interest rate swaps. |
(c) | International Energy amount represents the operating results of the International Disposal Group classified as discontinued operations. |
(d) | See page 17 for a detailed reconciliation of Segment Income / Other Net Expense to Adjusted Earnings. |
4
DUKE ENERGY CORPORATION
Consolidating Balance Sheets - Assets
(Unaudited)
March 31, 2017 | ||||||||||||||||||
(in millions) | Electric Utilities and Infrastructure | Gas Utilities and Infrastructure | Commercial Renewables | Other | Eliminations / Adjustments | Duke Energy | ||||||||||||
Current Assets | ||||||||||||||||||
Cash and cash equivalents | $ | 56 | $ | 17 | $ | 9 | $ | 796 | $ | — | $ | 878 | ||||||
Receivables, net | 384 | 188 | 11 | 40 | — | 623 | ||||||||||||
Receivables of variable interest entities, net | 1,649 | — | 33 | — | — | 1,682 | ||||||||||||
Receivables from affiliated companies | 35 | 26 | 1,224 | 2,565 | (3,850 | ) | — | |||||||||||
Notes receivable from affiliated companies | 231 | 70 | — | 686 | (987 | ) | — | |||||||||||
Inventory | 3,276 | 52 | 12 | 26 | — | 3,366 | ||||||||||||
Regulatory assets | 847 | 97 | — | 86 | 1 | 1,031 | ||||||||||||
Other | 316 | 22 | 149 | (2 | ) | (60 | ) | 425 | ||||||||||
Total current assets | 6,794 | 472 | 1,438 | 4,197 | (4,896 | ) | 8,005 | |||||||||||
Property, Plant and Equipment | ||||||||||||||||||
Cost | 108,023 | 9,065 | 4,334 | 1,879 | — | 123,301 | ||||||||||||
Accumulated depreciation and amortization | (36,610 | ) | (2,084 | ) | (570 | ) | (1,028 | ) | (1 | ) | (40,293 | ) | ||||||
Generation facilities to be retired, net | 508 | — | — | — | — | 508 | ||||||||||||
Net property, plant and equipment | 71,921 | 6,981 | 3,764 | 851 | (1 | ) | 83,516 | |||||||||||
Other Noncurrent Assets | ||||||||||||||||||
Goodwill | 17,379 | 1,924 | 122 | — | — | 19,425 | ||||||||||||
Regulatory assets | 11,582 | 754 | — | 502 | — | 12,838 | ||||||||||||
Nuclear decommissioning trust funds | 6,448 | — | — | — | — | 6,448 | ||||||||||||
Investments in equity method unconsolidated affiliates | 93 | 751 | 184 | 94 | — | 1,122 | ||||||||||||
Investments and advances to (from) subsidiaries | 227 | — | 9 | 52,002 | (52,238 | ) | — | |||||||||||
Other | 1,909 | 33 | 116 | 1,327 | (631 | ) | 2,754 | |||||||||||
Total other noncurrent assets | 37,638 | 3,462 | 431 | 53,925 | (52,869 | ) | 42,587 | |||||||||||
Total Assets | 116,353 | 10,915 | 5,633 | 58,973 | (57,766 | ) | 134,108 | |||||||||||
Segment reclassifications, intercompany balances and other | (587 | ) | (49 | ) | (1,233 | ) | (56,075 | ) | 57,944 | — | ||||||||
Segment Assets | $ | 115,766 | $ | 10,866 | $ | 4,400 | $ | 2,898 | $ | 178 | $ | 134,108 | ||||||
5
DUKE ENERGY CORPORATION
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
March 31, 2017 | ||||||||||||||||||
(in millions) | Electric Utilities and Infrastructure | Gas Utilities and Infrastructure | Commercial Renewables | Other | Eliminations / Adjustments | Duke Energy | ||||||||||||
Current Liabilities | ||||||||||||||||||
Accounts payable | $ | 1,664 | $ | 181 | $ | 26 | $ | 333 | $ | (1 | ) | $ | 2,203 | |||||
Accounts payable to affiliated companies | 3,149 | 3 | 8 | 662 | (3,822 | ) | — | |||||||||||
Notes payable to affiliated companies | 493 | 258 | — | 250 | (1,001 | ) | — | |||||||||||
Notes payable and commercial paper | — | — | — | 3,558 | — | 3,558 | ||||||||||||
Taxes accrued | 355 | 102 | (295 | ) | 201 | — | 363 | |||||||||||
Interest accrued | 374 | 37 | — | 115 | — | 526 | ||||||||||||
Current maturities of long-term debt | 1,015 | 35 | 227 | 700 | — | 1,977 | ||||||||||||
Asset retirement obligations | 404 | — | — | — | — | 404 | ||||||||||||
Regulatory liabilities | 332 | 2 | — | 5 | 1 | 340 | ||||||||||||
Other | 1,095 | 75 | 54 | 417 | (71 | ) | 1,570 | |||||||||||
Total current liabilities | 8,881 | 693 | 20 | 6,241 | (4,894 | ) | 10,941 | |||||||||||
Long-Term Debt | 28,909 | 2,439 | 1,645 | 14,027 | 1 | 47,021 | ||||||||||||
Long-Term Debt Payable to Affiliated Companies | 618 | 7 | 9 | — | (634 | ) | — | |||||||||||
Other Noncurrent Liabilities | ||||||||||||||||||
Deferred income taxes | 15,891 | 1,459 | 366 | (3,273 | ) | — | 14,443 | |||||||||||
Asset retirement obligations | 10,054 | 43 | 87 | 1 | 1 | 10,186 | ||||||||||||
Regulatory liabilities | 6,202 | 738 | — | 32 | — | 6,972 | ||||||||||||
Accrued pension and other post-retirement benefit costs | 724 | 31 | — | 360 | — | 1,115 | ||||||||||||
Investment tax credits | 533 | 3 | — | — | 1 | 537 | ||||||||||||
Other | 859 | 236 | 272 | 344 | (4 | ) | 1,707 | |||||||||||
Total other noncurrent liabilities | 34,263 | 2,510 | 725 | (2,536 | ) | (2 | ) | 34,960 | ||||||||||
Equity | ||||||||||||||||||
Total Duke Energy Corporation stockholders' equity | 43,682 | 5,266 | 3,217 | 41,251 | (52,237 | ) | 41,179 | |||||||||||
Noncontrolling interests | — | — | 17 | (10 | ) | — | 7 | |||||||||||
Total equity | 43,682 | 5,266 | 3,234 | 41,241 | (52,237 | ) | 41,186 | |||||||||||
Total Liabilities and Equity | 116,353 | 10,915 | 5,633 | 58,973 | (57,766 | ) | 134,108 | |||||||||||
Segment reclassifications, intercompany balances and other | (587 | ) | (49 | ) | (1,233 | ) | (56,075 | ) | 57,944 | — | ||||||||
Segment Liabilities and Equity | $ | 115,766 | $ | 10,866 | $ | 4,400 | $ | 2,898 | $ | 178 | $ | 134,108 | ||||||
6
ELECTRIC UTILITIES AND INFRASTRUCTURE
Consolidating Segment Income
(Unaudited)
Three Months Ended March 31, 2017 | ||||||||||||||||||||||||
(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 | $ | 1,716 | $ | 1,219 | $ | 959 | $ | 337 | $ | 758 | $ | — | $ | (42 | ) | $ | 4,947 | |||||||
Operating Expenses | ||||||||||||||||||||||||
Fuel used in electric generation and purchased power | 428 | 364 | 362 | 97 | 251 | — | (48 | ) | 1,454 | |||||||||||||||
Operation, maintenance and other | 474 | 345 | 187 | 90 | 173 | 1 | 1 | 1,271 | ||||||||||||||||
Depreciation and amortization | 254 | 181 | 132 | 45 | 125 | — | — | 737 | ||||||||||||||||
Property and other taxes | 68 | 40 | 77 | 55 | 22 | — | (1 | ) | 261 | |||||||||||||||
Impairment charges | — | — | 1 | — | (1 | ) | — | — | — | |||||||||||||||
Total operating expenses | 1,224 | 930 | 759 | 287 | 570 | 1 | (48 | ) | 3,723 | |||||||||||||||
Gains on Sales of Other Assets and Other, net | 1 | 2 | — | — | — | — | — | 3 | ||||||||||||||||
Operating Income (Loss) | 493 | 291 | 200 | 50 | 188 | (1 | ) | 6 | 1,227 | |||||||||||||||
Other Income and Expenses, net(b) | 37 | 19 | 15 | 2 | 9 | 1 | (4 | ) | 79 | |||||||||||||||
Interest Expense | 103 | 82 | 70 | 15 | 44 | — | 1 | 315 | ||||||||||||||||
Income Before Income Taxes | 427 | 228 | 145 | 37 | 153 | — | 1 | 991 | ||||||||||||||||
Income Tax Expense | 151 | 78 | 53 | 13 | 60 | — | 1 | 356 | ||||||||||||||||
Segment Income | $ | 276 | $ | 150 | $ | 92 | $ | 24 | $ | 93 | $ | — | $ | — | $ | 635 | ||||||||
(a) | Includes results of the wholly owned subsidiary, Duke Energy Kentucky. |
(b) | Includes an equity component of allowance for funds used during construction of $30 million for Duke Energy Carolinas, $13 million for Duke Energy Progress, $11 million for Duke Energy Florida, $2 million for Duke Energy Ohio, and $6 million for Duke Energy Indiana. |
7
ELECTRIC UTILITIES AND INFRASTRUCTURE
Consolidating Segment Income
(Unaudited)
Three Months Ended March 31, 2016(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 | $ | 1,740 | $ | 1,307 | $ | 1,024 | $ | 340 | $ | 714 | $ | — | $ | (36 | ) | $ | 5,089 | |||||||
Operating Expenses | ||||||||||||||||||||||||
Fuel used in electric generation and purchased power | 421 | 448 | 412 | 111 | 228 | — | (43 | ) | 1,577 | |||||||||||||||
Operation, maintenance and other | 492 | 373 | 199 | 76 | 158 | 1 | (1 | ) | 1,298 | |||||||||||||||
Depreciation and amortization | 254 | 175 | 114 | 42 | 125 | — | (1 | ) | 709 | |||||||||||||||
Property and other taxes | 67 | 41 | 78 | 52 | 23 | — | 1 | 262 | ||||||||||||||||
Impairment charges | — | — | 2 | — | — | — | — | 2 | ||||||||||||||||
Total operating expenses | 1,234 | 1,037 | 805 | 281 | 534 | 1 | (44 | ) | 3,848 | |||||||||||||||
Gains on Sales of Other Assets and Other, net | — | 1 | — | — | — | — | — | 1 | ||||||||||||||||
Operating Income (Loss) | 506 | 271 | 219 | 59 | 180 | (1 | ) | 8 | 1,242 | |||||||||||||||
Other Income and Expenses, net(c) | 37 | 17 | 5 | 2 | 4 | 1 | (3 | ) | 63 | |||||||||||||||
Interest Expense | 107 | 63 | 41 | 14 | 44 | — | 1 | 270 | ||||||||||||||||
Income Before Income Taxes | 436 | 225 | 183 | 47 | 140 | — | 4 | 1,035 | ||||||||||||||||
Income Tax Expense | 148 | 80 | 69 | 11 | 43 | — | 20 | 371 | ||||||||||||||||
Segment Income | $ | 288 | $ | 145 | $ | 114 | $ | 36 | $ | 97 | $ | — | $ | (16 | ) | $ | 664 | |||||||
(a) | Amounts have been recast to conform to the current segment structure. |
(b) | Includes results of the wholly owned subsidiary, Duke Energy Kentucky. |
(c) | Includes an equity component of allowance for funds used during construction of $23 million for Duke Energy Carolinas, $10 million for Duke Energy Progress, $4 million for Duke Energy Florida, $1 million for Duke Energy Ohio, and $3 million for Duke Energy Indiana. |
8
ELECTRIC UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Assets
(Unaudited)
March 31, 2017 | ||||||||||||||||||||||||
(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 | $ | 11 | $ | 11 | $ | 7 | $ | 12 | $ | 15 | $ | — | $ | — | $ | 56 | ||||||||
Receivables, net | 166 | 28 | 50 | 65 | 72 | — | 3 | 384 | ||||||||||||||||
Receivables of variable interest entities, net | 563 | 364 | 248 | — | — | — | 474 | 1,649 | ||||||||||||||||
Receivables from affiliated companies | 109 | 6 | 2 | 50 | 83 | 2 | (217 | ) | 35 | |||||||||||||||
Notes receivable from affiliated companies | — | — | 293 | 109 | 199 | — | (370 | ) | 231 | |||||||||||||||
Inventory | 1,051 | 1,053 | 598 | 95 | 478 | — | 1 | 3,276 | ||||||||||||||||
Regulatory assets | 233 | 187 | 260 | 6 | 156 | — | 5 | 847 | ||||||||||||||||
Other | 61 | 100 | 105 | 13 | 35 | — | 2 | 316 | ||||||||||||||||
Total current assets | 2,194 | 1,749 | 1,563 | 350 | 1,038 | 2 | (102 | ) | 6,794 | |||||||||||||||
Property, Plant and Equipment | ||||||||||||||||||||||||
Cost | 41,600 | 28,769 | 17,122 | 5,467 | 14,411 | 4 | 650 | 108,023 | ||||||||||||||||
Accumulated depreciation and amortization | (14,649 | ) | (10,716 | ) | (4,894 | ) | (1,916 | ) | (4,426 | ) | (1 | ) | (8 | ) | (36,610 | ) | ||||||||
Generation facilities to be retired, net | — | 508 | — | — | — | — | — | 508 | ||||||||||||||||
Net property, plant and equipment | 26,951 | 18,561 | 12,228 | 3,551 | 9,985 | 3 | 642 | 71,921 | ||||||||||||||||
Other Noncurrent Assets | ||||||||||||||||||||||||
Goodwill | — | — | — | 596 | — | — | 16,783 | 17,379 | ||||||||||||||||
Regulatory assets | 3,098 | 3,338 | 2,476 | 345 | 1,066 | — | 1,259 | 11,582 | ||||||||||||||||
Nuclear decommissioning trust funds | 3,406 | 2,315 | 726 | — | — | — | 1 | 6,448 | ||||||||||||||||
Investments in equity method unconsolidated affiliates | — | — | 1 | — | — | 93 | (1 | ) | 93 | |||||||||||||||
Investments and advances to (from) subsidiaries | 47 | 10 | 3 | 164 | — | — | 3 | 227 | ||||||||||||||||
Other | 927 | 536 | 267 | 18 | 152 | — | 9 | 1,909 | ||||||||||||||||
Total other noncurrent assets | 7,478 | 6,199 | 3,473 | 1,123 | 1,218 | 93 | 18,054 | 37,638 | ||||||||||||||||
Total Assets | 36,623 | 26,509 | 17,264 | 5,024 | 12,241 | 98 | 18,594 | 116,353 | ||||||||||||||||
Intercompany balances and other | (297 | ) | (205 | ) | (80 | ) | (183 | ) | (6 | ) | (55 | ) | 239 | (587 | ) | |||||||||
Reportable Segment Assets | $ | 36,326 | $ | 26,304 | $ | 17,184 | $ | 4,841 | $ | 12,235 | $ | 43 | $ | 18,833 | $ | 115,766 | ||||||||
(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. |
9
ELECTRIC UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
March 31, 2017 | ||||||||||||||||||||||||
(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 | $ | 602 | $ | 317 | $ | 361 | $ | 172 | $ | 209 | $ | — | $ | 3 | $ | 1,664 | ||||||||
Accounts payable to affiliated companies | 250 | 244 | 77 | 15 | 6 | 55 | 2,502 | 3,149 | ||||||||||||||||
Notes payable to affiliated companies | 337 | 502 | — | 11 | — | — | (357 | ) | 493 | |||||||||||||||
Taxes accrued | 90 | 35 | 63 | 88 | 73 | 1 | 5 | 355 | ||||||||||||||||
Interest accrued | 134 | 90 | 76 | 23 | 52 | — | (1 | ) | 374 | |||||||||||||||
Current maturities of long-term debt | 404 | 202 | 319 | 1 | 3 | — | 86 | 1,015 | ||||||||||||||||
Asset retirement obligations | 224 | 180 | — | — | — | — | — | 404 | ||||||||||||||||
Regulatory liabilities | 118 | 149 | 7 | 14 | 44 | — | — | 332 | ||||||||||||||||
Other | 345 | 294 | 309 | 74 | 75 | — | (2 | ) | 1,095 | |||||||||||||||
Total current liabilities | 2,504 | 2,013 | 1,212 | 398 | 462 | 56 | 2,236 | 8,881 | ||||||||||||||||
Long-Term Debt | 8,787 | 6,409 | 6,662 | 1,490 | 3,631 | — | 1,930 | 28,909 | ||||||||||||||||
Long-Term Debt Payable to Affiliated Companies | 300 | 150 | — | 18 | 150 | — | — | 618 | ||||||||||||||||
Other Noncurrent Liabilities | ||||||||||||||||||||||||
Deferred income taxes | 6,712 | 3,460 | 2,802 | 980 | 1,922 | 4 | 11 | 15,891 | ||||||||||||||||
Asset retirement obligations | 3,658 | 4,516 | 773 | 47 | 867 | — | 193 | 10,054 | ||||||||||||||||
Regulatory liabilities | 2,860 | 2,012 | 459 | 128 | 743 | — | — | 6,202 | ||||||||||||||||
Accrued pension and other post-retirement benefit costs | 103 | 247 | 261 | 36 | 77 | — | — | 724 | ||||||||||||||||
Investment tax credits | 237 | 146 | 3 | 1 | 148 | — | (2 | ) | 533 | |||||||||||||||
Other | 595 | 50 | 101 | 94 | 25 | — | (6 | ) | 859 | |||||||||||||||
Total other noncurrent liabilities | 14,165 | 10,431 | 4,399 | 1,286 | 3,782 | 4 | 196 | 34,263 | ||||||||||||||||
Equity | 10,867 | 7,506 | 4,991 | 1,832 | 4,216 | 38 | 14,232 | 43,682 | ||||||||||||||||
Total Liabilities and Equity | 36,623 | 26,509 | 17,264 | 5,024 | 12,241 | 98 | 18,594 | 116,353 | ||||||||||||||||
Intercompany balances and other | (297 | ) | (205 | ) | (80 | ) | (183 | ) | (6 | ) | (55 | ) | 239 | (587 | ) | |||||||||
Reportable Segment Liabilities and Equity | $ | 36,326 | $ | 26,304 | $ | 17,184 | $ | 4,841 | $ | 12,235 | $ | 43 | $ | 18,833 | $ | 115,766 | ||||||||
(a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
(b) | Includes the elimination of intercompany balances and purchase accounting adjustments. |
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GAS UTILITIES AND INFRASTRUCTURE
Consolidating Segment Income
(Unaudited)
Three Months Ended March 31, 2017 | |||||||||||||||
(in millions) | Duke Energy Ohio(a) | Piedmont Natural Gas LDC | Midstream Pipelines and Storage(b) | Eliminations/ Adjustments | Gas Utilities and Infrastructure | ||||||||||
Operating Revenues | |||||||||||||||
Regulated natural gas | $ | 170 | $ | 498 | $ | — | $ | — | $ | 668 | |||||
Nonregulated natural gas and other | — | 2 | — | — | 2 | ||||||||||
Operating Revenues | 170 | 500 | — | — | 670 | ||||||||||
Operating Expenses | |||||||||||||||
Cost of natural gas | 54 | 205 | — | (1 | ) | 258 | |||||||||
Operation, maintenance and other | 32 | 72 | 1 | — | 105 | ||||||||||
Depreciation and amortization | 22 | 35 | — | — | 57 | ||||||||||
Property and other taxes | 17 | 13 | — | — | 30 | ||||||||||
Total operating expenses | 125 | 325 | 1 | (1 | ) | 450 | |||||||||
Operating Income (Loss) | 45 | 175 | (1 | ) | 1 | 220 | |||||||||
Other Income and Expenses | |||||||||||||||
Equity in earnings of unconsolidated affiliates | — | — | 17 | — | 17 | ||||||||||
Other income and expenses, net | 1 | — | — | — | 1 | ||||||||||
Total Other Income and Expenses | 1 | — | 17 | — | 18 | ||||||||||
Interest Expense | 7 | 19 | — | — | 26 | ||||||||||
Income Before Income Taxes | 39 | 156 | 16 | 1 | 212 | ||||||||||
Income Tax Expense | 13 | 59 | 6 | 1 | 79 | ||||||||||
Segment Income | $ | 26 | $ | 97 | $ | 10 | $ | — | $ | 133 | |||||
(a) | Includes results of the wholly owned subsidiary, Duke Energy Kentucky. |
(b) | Includes earnings from investments in ACP, Sabal Trail, Constitution and Cardinal pipelines, as well as Hardy and Pine Needle storage facilities. |
11
GAS UTILITIES AND INFRASTRUCTURE
Consolidating Segment Income
(Unaudited)
Three Months Ended March 31, 2016 | ||||||||||||
(in millions) | Duke Energy Ohio(a) | Midstream Pipelines | Eliminations/ Adjustments | Gas Utilities and Infrastructure | ||||||||
Operating Revenues | $ | 170 | $ | — | $ | — | $ | 170 | ||||
Operating Expenses | ||||||||||||
Cost of natural gas | 49 | — | — | 49 | ||||||||
Operation, maintenance and other | 32 | — | — | 32 | ||||||||
Depreciation and amortization | 20 | — | — | 20 | ||||||||
Property and other taxes | 18 | — | — | 18 | ||||||||
Total operating expenses | 119 | — | — | 119 | ||||||||
Operating Income | 51 | — | — | 51 | ||||||||
Other Income and Expenses | 1 | 2 | — | 3 | ||||||||
Interest Expense | 7 | — | — | 7 | ||||||||
Income Before Income Taxes | 45 | 2 | — | 47 | ||||||||
Income Tax Expense | 14 | 1 | — | 15 | ||||||||
Segment Income | $ | 31 | $ | 1 | $ | — | $ | 32 | ||||
(a) | Includes results of the wholly owned subsidiary, Duke Energy Kentucky. |
12
GAS UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Assets
(Unaudited)
March 31, 2017 | |||||||||||||||
(in millions) | Duke Energy Ohio(a) | Piedmont Natural Gas LDC | Midstream Pipelines and Storage | Eliminations/ Adjustments(b) | Gas Utilities and Infrastructure | ||||||||||
Current Assets | |||||||||||||||
Cash and cash equivalents | $ | 2 | $ | 15 | $ | — | $ | — | $ | 17 | |||||
Receivables, net | (4 | ) | 193 | — | (1 | ) | 188 | ||||||||
Receivables from affiliated companies | 17 | 7 | — | 2 | 26 | ||||||||||
Notes receivable from affiliated companies | 70 | — | — | — | 70 | ||||||||||
Inventory | 23 | 29 | — | — | 52 | ||||||||||
Regulatory assets | (1 | ) | 98 | — | — | 97 | |||||||||
Other | — | 21 | — | 1 | 22 | ||||||||||
Total current assets | 107 | 363 | — | 2 | 472 | ||||||||||
Property, Plant and Equipment | |||||||||||||||
Cost | 2,769 | 6,296 | — | — | 9,065 | ||||||||||
Accumulated depreciation and amortization | (695 | ) | (1,389 | ) | — | — | (2,084 | ) | |||||||
Net property, plant and equipment | 2,074 | 4,907 | — | — | 6,981 | ||||||||||
Other Noncurrent Assets | |||||||||||||||
Goodwill | 324 | 49 | — | 1,551 | 1,924 | ||||||||||
Regulatory assets | 196 | 350 | — | 208 | 754 | ||||||||||
Investments in equity method unconsolidated affiliates | — | — | 751 | — | 751 | ||||||||||
Other | 3 | 19 | 12 | (1 | ) | 33 | |||||||||
Total other noncurrent assets | 523 | 418 | 763 | 1,758 | 3,462 | ||||||||||
Total Assets | 2,704 | 5,688 | 763 | 1,760 | 10,915 | ||||||||||
Intercompany balances and other | — | 112 | (25 | ) | (136 | ) | (49 | ) | |||||||
Reportable Segment Assets | $ | 2,704 | $ | 5,800 | $ | 738 | $ | 1,624 | $ | 10,866 | |||||
(a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
(b) | Includes the elimination of intercompany balances and purchase accounting adjustments. |
13
GAS UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
March 31, 2017 | |||||||||||||||
(in millions) | Duke Energy Ohio(a) | Piedmont Natural Gas LDC | Midstream Pipelines and Storage | Eliminations/ Adjustments(b) | Gas Utilities and Infrastructure | ||||||||||
Current Liabilities | |||||||||||||||
Accounts payable | $ | 76 | $ | 104 | $ | — | $ | 1 | $ | 181 | |||||
Accounts payable to affiliated companies | — | — | 25 | (22 | ) | 3 | |||||||||
Notes payable to affiliated companies | (3 | ) | 261 | — | — | 258 | |||||||||
Taxes accrued | 11 | (5 | ) | 97 | (1 | ) | 102 | ||||||||
Interest accrued | 10 | 27 | — | — | 37 | ||||||||||
Current maturities of long-term debt | — | 35 | — | — | 35 | ||||||||||
Regulatory liabilities | 8 | (5 | ) | — | (1 | ) | 2 | ||||||||
Other | 5 | 70 | — | — | 75 | ||||||||||
Total current liabilities | 107 | 487 | 122 | (23 | ) | 693 | |||||||||
Long-Term Debt | 462 | 1,786 | — | 191 | 2,439 | ||||||||||
Long-Term Debt Payable to Affiliated Companies | 7 | — | — | — | 7 | ||||||||||
Other Noncurrent Liabilities | |||||||||||||||
Deferred income taxes | 485 | 951 | 24 | (1 | ) | 1,459 | |||||||||
Asset retirement obligations | 28 | 14 | — | 1 | 43 | ||||||||||
Regulatory liabilities | 109 | 613 | — | 16 | 738 | ||||||||||
Accrued pension and other post-retirement benefit costs | 17 | 14 | — | — | 31 | ||||||||||
Investment tax credits | 2 | 1 | — | — | 3 | ||||||||||
Other | 68 | 167 | — | 1 | 236 | ||||||||||
Total other noncurrent liabilities | 709 | 1,760 | 24 | 17 | 2,510 | ||||||||||
Equity | 1,419 | 1,655 | 617 | 1,575 | 5,266 | ||||||||||
Total Liabilities and Equity | 2,704 | 5,688 | 763 | 1,760 | 10,915 | ||||||||||
Intercompany balances and other | — | 112 | (25 | ) | (136 | ) | (49 | ) | |||||||
Reportable Segment Liabilities and Equity | $ | 2,704 | $ | 5,800 | $ | 738 | $ | 1,624 | $ | 10,866 | |||||
(a) | Includes balances of the wholly owned subsidiary, Duke Energy Kentucky. |
(b) | Includes the elimination of intercompany balances and purchase accounting adjustments. |
14
Revenues By Customer Class
(Unaudited)
Three Months Ended March 31, 2017 | ||||||||||||||||||||||||
(in millions) | Duke Energy Carolinas | Duke Energy Progress | Duke Energy Florida | Duke Energy Ohio | Duke Energy Indiana | Piedmont Natural Gas | Eliminations / Adjustments | Total | ||||||||||||||||
Regulated Electric Revenues | ||||||||||||||||||||||||
Residential | $ | 694 | $ | 463 | $ | 479 | $ | 193 | $ | 276 | $ | — | $ | — | $ | 2,105 | ||||||||
General service | 499 | 292 | 304 | 107 | 183 | — | — | 1,385 | ||||||||||||||||
Industrial | 266 | 146 | 60 | 29 | 185 | — | — | 686 | ||||||||||||||||
Wholesale | 119 | 275 | 39 | 7 | 79 | — | — | 519 | ||||||||||||||||
Change in unbilled | (18 | ) | (31 | ) | 8 | (15 | ) | (17 | ) | — | — | (73 | ) | |||||||||||
Other revenues | 156 | 74 | 69 | 16 | 52 | — | (42 | ) | 325 | |||||||||||||||
Total Electric Revenues | $ | 1,716 | $ | 1,219 | $ | 959 | $ | 337 | $ | 758 | $ | — | $ | (42 | ) | $ | 4,947 | |||||||
Regulated Natural Gas Revenues | ||||||||||||||||||||||||
Residential | $ | — | $ | — | $ | — | $ | 120 | $ | — | $ | 294 | $ | — | $ | 414 | ||||||||
Commercial | — | — | — | 51 | — | 144 | — | 195 | ||||||||||||||||
Industrial | — | — | — | 7 | — | 40 | — | 47 | ||||||||||||||||
Power Generation | — | — | — | — | — | 21 | — | 21 | ||||||||||||||||
Change in unbilled | — | — | — | (13 | ) | — | (38 | ) | — | (51 | ) | |||||||||||||
Other revenues | — | — | — | 5 | — | 37 | — | 42 | ||||||||||||||||
Total Natural Gas Revenues | $ | — | $ | — | $ | — | $ | 170 | $ | — | $ | 498 | $ | — | $ | 668 | ||||||||
Three Months Ended March 31, 2016 | ||||||||||||||||||||||
(in millions) | Duke Energy Carolinas | Duke Energy Progress | Duke Energy Florida | Duke Energy Ohio | Duke Energy Indiana | Eliminations / Adjustments | Total | |||||||||||||||
Regulated Electric Revenues | ||||||||||||||||||||||
Residential | $ | 787 | $ | 514 | $ | 520 | $ | 198 | $ | 269 | $ | — | $ | 2,288 | ||||||||
General service | 526 | 311 | 307 | 108 | 171 | — | 1,423 | |||||||||||||||
Industrial | 287 | 148 | 62 | 29 | 171 | — | 697 | |||||||||||||||
Wholesale | 114 | 268 | 58 | 5 | 88 | — | 533 | |||||||||||||||
Change in unbilled | 6 | (9 | ) | 2 | (6 | ) | (9 | ) | — | (16 | ) | |||||||||||
Other revenues | 20 | 75 | 75 | 6 | 24 | (36 | ) | 164 | ||||||||||||||
Total Electric Revenues | $ | 1,740 | $ | 1,307 | $ | 1,024 | $ | 340 | $ | 714 | $ | (36 | ) | $ | 5,089 | |||||||
Regulated Natural Gas Revenues | ||||||||||||||||||||||
Residential | $ | — | $ | — | $ | — | $ | 115 | $ | — | $ | — | $ | 115 | ||||||||
Commercial | — | — | — | 48 | — | — | 48 | |||||||||||||||
Industrial | — | — | — | 7 | — | — | 7 | |||||||||||||||
Change in unbilled | — | — | — | (3 | ) | — | — | (3 | ) | |||||||||||||
Other revenues | — | — | — | 3 | — | — | 3 | |||||||||||||||
Total Natural Gas Revenues | $ | — | $ | — | $ | — | $ | 170 | $ | — | $ | — | $ | 170 | ||||||||
15
DUKE ENERGY CORPORATION
REPORTED TO ADJUSTED EARNINGS RECONCILIATION
Three Months Ended March 31, 2017
(Dollars in millions, except per share amounts)
Special Item | ||||||||||||
Reported Earnings | Costs to Achieve Piedmont Merger | Adjusted Earnings | ||||||||||
SEGMENT INCOME | ||||||||||||
Electric Utilities and Infrastructure | $ | 635 | $ | — | $ | 635 | ||||||
Gas Utilities and Infrastructure | 133 | — | 133 | |||||||||
Commercial Renewables | 25 | — | 25 | |||||||||
Total Reportable Segment Income | 793 | — | 793 | |||||||||
Other | (77 | ) | 10 | A | (67 | ) | ||||||
Net Income Attributable to Duke Energy Corporation | $ | 716 | $ | 10 | $ | 726 | ||||||
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED | $ | 1.02 | $ | 0.02 | $ | 1.04 | ||||||
A - Net of $6 million tax benefit. $15 million recorded within Operating Expenses and $1 million recorded within Interest Expense on the Condensed Consolidated Statements of Operations.
Weighted Average Shares, Diluted (reported and adjusted) - 700 million
16
DUKE ENERGY CORPORATION
REPORTED TO ADJUSTED EARNINGS RECONCILIATION
Three Months Ended March 31, 2016
(Dollars in millions, except per share amounts)
Special Items | |||||||||||||||||||||||||||
Reported Earnings | Costs to Achieve Mergers | Cost Savings Initiatives | International Energy Operations | Discontinued Operations | Total Adjustments | Adjusted Earnings | |||||||||||||||||||||
SEGMENT INCOME | |||||||||||||||||||||||||||
Electric Utilities and Infrastructure | $ | 664 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 664 | |||||||||||||
Gas Utilities and Infrastructure | 32 | — | — | — | — | — | 32 | ||||||||||||||||||||
Commercial Renewables | 26 | — | — | — | — | — | 26 | ||||||||||||||||||||
Total Reportable Segment Income | 722 | — | — | — | — | — | 722 | ||||||||||||||||||||
International Energy | — | — | — | 117 | C | — | 117 | 117 | |||||||||||||||||||
Other | (148 | ) | 74 | A | 12 | B | — | — | 86 | (62 | ) | ||||||||||||||||
Discontinued Operations | 120 | — | — | (117 | ) | C | (3 | ) | D | (120 | ) | — | |||||||||||||||
Net Income Attributable to Duke Energy Corporation | $ | 694 | $ | 74 | $ | 12 | $ | — | $ | (3 | ) | $ | 83 | $ | 777 | ||||||||||||
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED | $ | 1.01 | $ | 0.11 | $ | 0.02 | $ | — | $ | (0.01 | ) | $ | 0.12 | $ | 1.13 | ||||||||||||
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. The interest expense primarily relates to losses on forward-starting interest rate swaps associated with the Piedmont acquisition financing.
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 - Includes $39 million tax benefit. Operating results of the International Disposal Group classified as discontinued operations.
D - Recorded in Income from Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.
Weighted Average Shares Outstanding, Diluted (reported and adjusted) - 689 million
17
DUKE ENERGY CORPORATION
Non-GAAP Financial Measures
Management evaluates financial performance in part based on non-GAAP financial measures, including adjusted earnings and adjusted diluted EPS.
Adjusted earnings and adjusted diluted EPS 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 represent 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, respectively.
Special items included in the periods presented include the following items which management believes do not reflect ongoing costs:
• | Costs to achieve mergers represent charges resulting from strategic acquisitions. |
• | Cost savings initiatives represents severance charges related to company-wide initiatives, excluding merger integration, to standardize processes and systems, leverage technology and workforce optimization. |
Adjusted earnings also include operating results of the International Disposal Group, which have been classified as discontinued operations. Management believes inclusion of the operating results of the Disposal Group within adjusted earnings and adjusted diluted EPS results in 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, 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.
18