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Duke Energy Florida (DUK)

Filed: 11 Mar 18, 8:00pm


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Fourth 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   
     

This Statistical Supplement includes results of Piedmont Natural Gas subsequent to the acquisition on October 3, 2016, and should be read in conjunction with Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2017.





DUKE ENERGY CORPORATION
Consolidating Statements of Operations
(Unaudited)
 Twelve Months Ended December 31, 2017
(in millions)Electric Utilities and Infrastructure
Gas
Utilities and Infrastructure

Commercial
Renewables

Other
Eliminations/
Adjustments

Duke Energy
Operating Revenues      
Regulated electric$21,331
$
$
$
$(154)$21,177
Regulated natural gas
1,827


(93)1,734
Nonregulated electric and other
9
460
138
47
654
Total operating revenues21,331
1,836
460
138
(200)23,565
Operating Expenses     
Fuel used in electric generation and purchased power6,379


58
(87)6,350
Cost of natural gas
632



632
Operation, maintenance and other5,196
393
267
44
(112)5,788
Depreciation and amortization3,010
231
155
131

3,527
Property and other taxes1,079
106
33
14
1
1,233
Impairment charges176

99
7

282
Total operating expenses15,840
1,362
554
254
(198)17,812
Gains on Sales of Other Assets and Other, net6

1
21

28
Operating Income (Loss)5,497
474
(93)(95)(2)5,781
Other Income and Expenses     
Equity in earnings (losses) of unconsolidated affiliates5
62
(5)57

119
Other income and expenses, net303
4
(7)70
(18)352
Total other income and expenses308
66
(12)127
(18)471
Interest Expense1,240
105
87
574
(20)1,986
Income (Loss) from Continuing Operations Before Income Taxes4,565
435
(192)(542)
4,266
Income Tax Expense (Benefit) from Continuing Operations1,355
116
(628)353

1,196
Income (Loss) from Continuing Operations3,210
319
436
(895)
3,070
Less: Net (Loss) Income Attributable to Noncontrolling Interest

(5)10

5
Segment Income / Other Net Expense$3,210
$319
$441
$(905)$
$3,065
Loss from Discontinued Operations, net of tax     (6)
Net Income Attributable to Duke Energy Corporation     $3,059
       
Segment Income / Other Net Expense$3,210
$319
$441
$(905)$
$3,065
Special Items(133)(26)(368)661

134
Adjusted Earnings(a)
$3,077
$293
$73
$(244)$
$3,199

(a)See page 22 for a detailed reconciliation of Segment Income / Other Net Expense to Adjusted Earnings.

3



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
Regulated natural gas
901

(10)
(28)863
Nonregulated electric and other

484
127

48
659
Total operating revenues21,366
901
484
117

(125)22,743
Operating Expenses      
Fuel used in electric generation and purchased power6,595


51

(21)6,625
Cost of natural gas
265




265
Operation, maintenance and other5,293
186
337
371

(102)6,085
Depreciation and amortization2,897
115
130
152


3,294
Property and other taxes1,020
70
25
28

(1)1,142
Impairment charges16


2


18
Total operating expenses15,821
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, net298
5
(1)32

(10)324
Total other income and expenses303
24
(83)75

(10)309
Interest Expense(b)
1,136
46
53
693

(12)1,916
Income (Loss) from Continuing Operations Before Income Taxes4,712
242
(139)(1,082)
1
3,734
Income Tax Expense (Benefit) from Continuing Operations1,672
90
(160)(446)

1,156
Income (Loss) from Continuing Operations3,040
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 23 for a detailed reconciliation of Segment Income / Other Net Expense to Adjusted Earnings.

4



DUKE ENERGY CORPORATION
Consolidating Balance Sheets - Assets
(Unaudited)
 December 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$67
$23
$10
$258
$
$358
Receivables, net445
276
6
52

779
Receivables of variable interest entities, net1,966

30

(1)1,995
Receivables from affiliated companies22
7
1,315
454
(1,798)
Notes receivable from affiliated companies166
3

613
(782)
Inventory3,106
106
15
23

3,250
Regulatory assets1,220
96

122
(1)1,437
Other240
56
124
212
2
634
Total current assets7,232
567
1,500
1,734
(2,580)8,453
Property, Plant and Equipment     
Cost111,582
9,635
4,294
1,995
1
127,507
Accumulated depreciation and amortization(37,541)(2,216)(691)(1,088)(1)(41,537)
Generation facilities to be retired, net421




421
Net property, plant and equipment74,462
7,419
3,603
907

86,391
Other Noncurrent Assets     
Goodwill17,379
1,924
93


19,396
Regulatory assets11,344
652

445
1
12,442
Nuclear decommissioning trust funds7,097




7,097
Investments in equity method unconsolidated affiliates89
763
190
133

1,175
Investment in consolidated subsidiaries215
15
7
56,379
(56,616)
Other2,069
87
86
1,353
(635)2,960
Total other noncurrent assets38,193
3,441
376
58,310
(57,250)43,070
Total Assets119,887
11,427
5,479
60,951
(59,830)137,914
Segment reclassifications, intercompany balances and other(464)35
(1,323)(58,266)60,018

Segment Assets$119,423
$11,462
$4,156
$2,685
$188
$137,914


5



DUKE ENERGY CORPORATION
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
 December 31, 2017
(in millions)Electric Utilities and Infrastructure
Gas
Utilities and Infrastructure

Commercial
Renewables

Other
Eliminations/
Adjustments

Duke Energy
Current Liabilities      
Accounts payable$2,248
$205
$30
$560
$
$3,043
Accounts payable to affiliated companies512
22
10
1,228
(1,772)
Notes payable to affiliated companies396
368

43
(807)
Notes payable and commercial paper

4
2,159

2,163
Taxes accrued580
42
(69)(2)
551
Interest accrued338
35

152

525
Current maturities of long-term debt2,073
251
170
750

3,244
Asset retirement obligations689




689
Regulatory liabilities387
9

5
1
402
Other1,370
74
35
388
(2)1,865
Total current liabilities8,593
1,006
180
5,283
(2,580)12,482
Long-Term Debt29,063
2,449
1,700
15,822
1
49,035
Long-Term Debt Payable to Affiliated Companies618
7
9

(634)
Other Noncurrent Liabilities     
Deferred income taxes8,555
860
(169)(2,625)
6,621
Asset retirement obligations9,345
50
90
1

9,486
Regulatory liabilities13,819
1,510

2
(1)15,330
Accrued pension and other post-retirement benefit costs723
21

359

1,103
Investment tax credits536
3



539
Other789
230
259
303

1,581
Total other noncurrent liabilities33,767
2,674
180
(1,960)(1)34,660
Equity     
Total Duke Energy Corporation stockholders' equity47,846
5,291
3,409
41,809
(56,616)41,739
Noncontrolling interests

1
(3)
(2)
Total equity47,846
5,291
3,410
41,806
(56,616)41,737
Total Liabilities and Equity119,887
11,427
5,479
60,951
(59,830)137,914
Segment reclassifications, intercompany balances and other(464)35
(1,323)(58,266)60,018

Segment Liabilities and Equity$119,423
$11,462
$4,156
$2,685
$188
$137,914

6



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, net451
228
24
47
1
751
Receivables of variable interest entities, net1,871

22


1,893
Receivables from affiliated companies25
31
769
3,075
(3,900)
Notes receivable from affiliated companies179
38

89
(306)
Inventory3,372
108
17
26
(1)3,522
Regulatory assets806
124

93

1,023
Other283
31
107
35
2
458
Total current assets7,059
585
947
3,652
(4,204)8,039
Property, Plant and Equipment      
Cost106,271
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, net529




529
Net property, plant and equipment71,012
6,875
3,775
858

82,520
Other Noncurrent Assets      
Goodwill17,379
1,924
122


19,425
Regulatory assets11,590
785

503

12,878
Nuclear decommissioning trust funds6,205




6,205
Investments in equity method unconsolidated affiliates93
566
185
81

925
Investment in consolidated subsidiaries234
(7)9
52,478
(52,714)
Other1,917
36
117
3,194
(2,495)2,769
Total other noncurrent assets37,418
3,304
433
56,256
(55,209)42,202
Total Assets115,489
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

    


7



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 companies3,427
5
174
248
(3,854)
Notes payable to affiliated companies143
1

186
(330)
Notes payable and commercial paper
330

2,157

2,487
Taxes accrued471
102
(267)79
(1)384
Interest accrued328
38

139
(2)503
Current maturities of long-term debt986
35
198
1,099
1
2,319
Asset retirement obligations411




411
Regulatory liabilities404


5

409
Other1,360
99
53
551
(19)2,044
Total current liabilities9,831
843
215
4,867
(4,205)11,551
Long-Term Debt28,396
2,445
1,096
13,640
(1)45,576
Long-Term Debt Payable to Affiliated Companies618
7
9
1,859
(2,493)
Other Noncurrent Liabilities      
Deferred income taxes15,484
1,411
385
(3,124)(1)14,155
Asset retirement obligations10,071
42
85
1
1
10,200
Regulatory liabilities6,111
733

37

6,881
Accrued pension and other post-retirement benefit costs718
31

362

1,111
Investment tax credits490
3



493
Other875
262
273
343

1,753
Total other noncurrent liabilities33,749
2,482
743
(2,381)
34,593
Equity      
Total Duke Energy Corporation stockholders' equity42,895
4,987
3,072
42,792
(52,713)41,033
Noncontrolling interests

20
(11)(1)8
Total equity42,895
4,987
3,092
42,781
(52,714)41,041
Total Liabilities and Equity115,489
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




8



ELECTRIC UTILITIES AND INFRASTRUCTURE
Consolidating Segment Income
(Unaudited)
 Twelve Months Ended December 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$7,302
$5,129
$4,646
$1,373
$3,047
$1
$(167)$21,331
Operating Expenses        
Fuel used in electric generation and purchased power1,822
1,609
1,808
369
966

(195)6,379
Operation, maintenance and other1,923
1,365
802
376
723
2
5
5,196
Depreciation and amortization1,090
725
560
178
458
1
(2)3,010
Property and other taxes281
156
347
220
76

(1)1,079
Impairment charges
19
138
1
18


176
Total operating expenses5,116
3,874
3,655
1,144
2,241
3
(193)15,840
Gains on Sales of Other Assets and Other, net1
4
1




6
Operating Income (Loss)2,187
1,259
992
229
806
(2)26
5,497
Other Income and Expenses, net(b)
139
65
61
11
37
5
(10)308
Interest Expense422
293
279
62
178

6
1,240
Income Before Income Taxes1,904
1,031
774
178
665
3
10
4,565
Income Tax Expense (Benefit)659
296
52
40
305
(1)4
1,355
Segment Income 
$1,245
$735
$722
$138
$360
$4
$6
$3,210

(a)Includes results of the wholly owned subsidiary, Duke Energy Kentucky.
(b)Includes an equity component of allowance for funds used during construction of $106 million for Duke Energy Carolinas, $47 million for Duke Energy Progress, $45 million for Duke Energy Florida, $9 million for Duke Energy Ohio, and $28 million for Duke Energy Indiana.

9



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 power1,797
1,830
1,814
442
909

(197)6,595
Operation, maintenance and other1,969
1,423
831
358
704
3
5
5,293
Depreciation and amortization1,049
694
506
151
493
1
3
2,897
Property and other taxes276
156
333
199
58

(2)1,020
Impairment charges1
1
6

8


16
Total operating expenses5,092
4,104
3,490
1,150
2,172
4
(191)15,821
(Loss) Gain 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 Expense424
257
212
58
181

4
1,136
Income Before Income Taxes1,963
990
911
209
628
2
9
4,712
Income Tax Expense693
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.

10



ELECTRIC UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Assets
(Unaudited)
 December 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$16
$20
$13
$8
$9
$
$1
$67
Receivables, net200
56
65
64
57

3
445
Receivables of variable interest entities, net640
459
321



546
1,966
Receivables from affiliated companies95
4
2
72
125
2
(278)22
Notes receivable from affiliated companies

313
10


(157)166
Inventory971
1,017
574
93
450

1
3,106
Regulatory assets299
352
389
7
165

8
1,220
Other19
96
86
10
30
1
(2)240
Total current assets2,240
2,004
1,763
264
836
3
122
7,232
Property, Plant and Equipment        
Cost42,939
29,583
17,730
5,818
14,948
4
560
111,582
Accumulated depreciation and amortization(15,063)(10,903)(4,947)(1,954)(4,662)(2)(10)(37,541)
Generation facilities to be retired, net
421





421
Net property, plant and equipment27,876
19,101
12,783
3,864
10,286
2
550
74,462
Other Noncurrent Assets        
Goodwill


596


16,783
17,379
Regulatory assets2,853
3,507
2,503
329
978

1,174
11,344
Nuclear decommissioning trust funds3,772
2,588
736



1
7,097
Investments in equity method unconsolidated affiliates




89

89
Investment in consolidated subsidiaries39
5
3
167
1


215
Other978
599
283
15
189

5
2,069
Total other noncurrent assets7,642
6,699
3,525
1,107
1,168
89
17,963
38,193
Total Assets37,758
27,804
18,071
5,235
12,290
94
18,635
119,887
Intercompany balances and other(300)(97)(223)(169)(76)(55)456
(464)
Reportable Segment Assets$37,458
$27,707
$17,848
$5,066
$12,214
$39
$19,091
$119,423

(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.



11



ELECTRIC UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
 December 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$842
$402
$602
$206
$196
$
$
$2,248
Accounts payable to affiliated companies218
179
74
16
78
56
(109)512
Notes payable to affiliated companies104
240

23
161

(132)396
Taxes accrued236
64
35
144
95
1
5
580
Interest accrued108
102
56
16
57

(1)338
Current maturities of long-term debt1,205
3
768
2
3

92
2,073
Asset retirement obligations337
295

3
54


689
Regulatory liabilities126
139
74
25
24

(1)387
Other486
376
335
67
105

1
1,370
Total current liabilities3,662
1,800
1,944
502
773
57
(145)8,593
Long-Term Debt8,598
7,204
6,327
1,552
3,630

1,752
29,063
Long-Term Debt Payable to Affiliated Companies300
150

18
150


618
Other Noncurrent Liabilities        
Deferred income taxes3,440
1,888
1,762
526
925
3
11
8,555
Asset retirement obligations3,273
4,378
741
45
727

181
9,345
Regulatory liabilities6,231
3,999
1,307
559
1,723


13,819
Accrued pension and other post-retirement benefit costs95
248
264
40
76


723
Investment tax credits232
143
9
4
147

1
536
Other566
45
99
70
18

(9)789
Total other noncurrent liabilities13,837
10,701
4,182
1,244
3,616
3
184
33,767
Equity11,361
7,949
5,618
1,919
4,121
34
16,844
47,846
Total Liabilities and Equity37,758
27,804
18,071
5,235
12,290
94
18,635
119,887
Intercompany balances and other(300)(97)(223)(169)(76)(55)456
(464)
Reportable Segment Liabilities and Equity$37,458
$27,707
$17,848
$5,066
$12,214
$39
$19,091
$119,423

(a)Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.
(b)Includes the elimination of intercompany balances and purchase accounting adjustments.


12



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, net160
51
61
72
105

2
451
Receivables of variable interest entities, net645
404
288



534
1,871
Receivables from affiliated companies163
5
5
72
111
2
(333)25
Notes receivable from affiliated companies66
165

58
86

(196)179
Inventory1,055
1,076
641
96
504


3,372
Regulatory assets238
188
213
9
149

9
806
Other36
57
125
21
45

(1)283
Total current assets2,377
1,957
1,349
341
1,017
2
16
7,059
Property, Plant and Equipment   
    
Cost41,127
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 equipment26,762
18,387
11,790
3,485
9,924
3
661
71,012
Other Noncurrent Assets        
Goodwill


596


16,783
17,379
Regulatory assets3,159
3,243
2,480
348
1,074

1,286
11,590
Nuclear decommissioning trust funds3,273
2,217
715




6,205
Investments in equity method unconsolidated affiliates

1


92

93
Investment in consolidated subsidiaries52
12
6
161


3
234
Other943
525
278
16
143

12
1,917
Total other noncurrent assets7,427
5,997
3,480
1,121
1,217
92
18,084
37,418
Total Assets36,566
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.

13



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 companies247
227
125
13
7
54
2,754
3,427
Notes payable to affiliated companies

297
18


(172)143
Taxes accrued150
107
37
139
32
1
5
471
Interest accrued102
102
49
14
61


328
Current maturities of long-term debt116
452
326
1
3

88
986
Asset retirement obligations222
189





411
Regulatory liabilities161
158
31
15
40

(1)404
Other467
366
353
82
94

(2)1,360
Total current liabilities2,298
2,190
1,631
482
499
55
2,676
9,831
Long-Term Debt9,187
6,409
5,799
1,397
3,633

1,971
28,396
Long-Term Debt Payable to Affiliated Companies300
150

18
150


618
Other Noncurrent Liabilities        
Deferred income taxes6,588
3,331
2,695
954
1,902
4
10
15,484
Asset retirement obligations3,673
4,508
778
48
866

198
10,071
Regulatory liabilities2,840
1,946
448
129
748


6,111
Accrued pension and other post-retirement benefit costs97
252
262
36
71


718
Investment tax credits203
146
3
1
137


490
Other608
51
103
95
27

(9)875
Total other noncurrent liabilities14,009
10,234
4,289
1,263
3,751
4
199
33,749
Equity10,772
7,358
4,900
1,787
4,125
38
13,915
42,895
Total Liabilities and Equity36,566
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.


14



GAS UTILITIES AND INFRASTRUCTURE
Consolidating Segment Income
(Unaudited)
 Twelve Months Ended December 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$508
$1,319
$
$
$1,827
Nonregulated natural gas and other
9


9
Operating Revenues508
1,328


1,836
Operating Expenses     
Cost of natural gas107
524

1
632
Operation, maintenance and other114
276
4
(1)393
Depreciation and amortization83
148


231
Property and other taxes58
48


106
Total operating expenses362
996
4

1,362
Operating Income (Loss)146
332
(4)
474
Other Income and Expenses     
Equity in earnings of unconsolidated affiliates

62

62
Other income and expenses, net6
(1)
(1)4
Total other income and expenses6
(1)62
(1)66
Interest Expense28
77


105
Income Before Income Taxes124
254
58
(1)435
Income Tax Expense (Benefit)39
88
(10)(1)116
Segment Income 
$85
$166
$68
$
$319

(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.


15



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)

Midstream Pipelines and Storage(b)(c)

Eliminations/
Adjustments

Gas
Utilities and Infrastructure

Operating Revenues$503
$398
$
$
$901
Operating Expenses     
Cost of natural gas103
161

1
265
Operation, maintenance and other116
70
2
(2)186
Depreciation and amortization80
35


115
Property and other taxes59
11


70
Total operating expenses358
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, net3
1
2
(1)5
Total other income and expenses3
1
21
(1)24
Interest Expense27
20

(1)46
Income Before Income Taxes121
102
19

242
Income Tax Expense44
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.

16



GAS UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Assets
(Unaudited)
 December 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$4
$19
$
$
$23
Receivables, net1
275


276
Receivables from affiliated companies22
74

(89)7
Notes receivable from affiliated companies4


(1)3
Inventory40
66


106
Regulatory assets1
95


96
Other5
52

(1)56
Total current assets77
581

(91)567
Property, Plant and Equipment     
Cost2,914
6,721


9,635
Accumulated depreciation and amortization(737)(1,478)
(1)(2,216)
Net property, plant and equipment2,177
5,243

(1)7,419
Other Noncurrent Assets     
Goodwill324
49

1,551
1,924
Regulatory assets178
283

191
652
Investments in equity method unconsolidated affiliates

763

763
Investment in consolidated subsidiaries


15
15
Other2
64
18
3
87
Total other noncurrent assets504
396
781
1,760
3,441
Total Assets2,758
6,220
781
1,668
11,427
Intercompany balances and other
(20)(35)90
35
Reportable Segment Assets$2,758
$6,200
$746
$1,758
$11,462

(a)Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.
(b)Includes the elimination of intercompany balances and purchase accounting adjustments.

17



GAS UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
 December 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$80
$125
$
$
$205
Accounts payable to affiliated companies5
14
92
(89)22
Notes payable to affiliated companies6
364

(2)368
Taxes accrued38
38
(34)
42
Interest accrued5
31

(1)35
Current maturities of long-term debt1
250


251
Regulatory liabilities11
(2)

9
Other2
69
1
2
74
Total current liabilities148
889
59
(90)1,006
Long-Term Debt487
1,787

175
2,449
Long-Term Debt Payable to Affiliated Companies7



7
Other Noncurrent Liabilities     
Deferred income taxes251
552
58
(1)860
Asset retirement obligations35
15


50
Regulatory liabilities353
1,141

16
1,510
Accrued pension and other post-retirement benefit costs16
5


21
Investment tax credits2
1


3
Other57
162
11

230
Total other noncurrent liabilities714
1,876
69
15
2,674
Equity1,402
1,668
653
1,568
5,291
Total Liabilities and Equity2,758
6,220
781
1,668
11,427
Intercompany balances and other
(20)(35)90
35
Reportable Segment Liabilities and Equity$2,758
$6,200
$746
$1,758
$11,462

(a)Includes balances of the wholly owned subsidiary, Duke Energy Kentucky.
(b)Includes the elimination of intercompany balances and purchase accounting adjustments.

18



GAS UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Assets
(Unaudited)
 December 31, 2016
(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$
$25
$
$
$25
Receivables, net(4)232


228
Receivables from affiliated companies21
7

3
31
Notes receivable from affiliated companies38



38
Inventory41
66

1
108
Regulatory assets6
117

1
124
Other12
21

(2)31
Total current assets114
468

3
585
Property, Plant and Equipment     
Cost2,748
6,174


8,922
Accumulated depreciation and amortization(687)(1,360)

(2,047)
Net property, plant and equipment2,061
4,814


6,875
Other Noncurrent Assets     
Goodwill324
49

1,551
1,924
Regulatory assets196
379

210
785
Investments in equity method unconsolidated affiliates

566

566
Investment in consolidated subsidiaries


(7)(7)
Other2
21
12
1
36
Total other noncurrent assets522
449
578
1,755
3,304
Total Assets2,697
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.



19



GAS UTILITIES AND INFRASTRUCTURE
Consolidating Balance Sheets - Liabilities and Equity
(Unaudited)
 December 31, 2016
(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$78
$155
$
$
$233
Accounts payable to affiliated companies4
4
25
(28)5
Notes payable to affiliated companies1



1
Notes payable and commercial paper
330
  330
Taxes accrued27
(14)89

102
Interest accrued5
33


38
Current maturities of long-term debt
35


35
Regulatory liabilities6
(6)


Other3
96


99
Total current liabilities124
633
114
(28)843
Long-Term Debt462
1,786

197
2,445
Long-Term Debt Payable to Affiliated Companies7



7
Other Noncurrent Liabilities     
Deferred income taxes480
904
28
(1)1,411
Asset retirement obligations28
14


42
Regulatory liabilities108
608

17
733
Accrued pension and other post-retirement benefit costs17
14


31
Investment tax credits2
1


3
Other68
194


262
Total other noncurrent liabilities703
1,735
28
16
2,482
Equity1,401
1,577
436
1,573
4,987
Total Liabilities and Equity2,697
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.


20



Revenues By Customer Class
(Unaudited)
 Twelve Months Ended December 31, 2017
(in millions)
Duke Energy
Carolinas

Duke Energy
Progress

Duke Energy
Florida

Duke Energy
Ohio (a)

Duke Energy
Indiana

Piedmont
Natural Gas

Eliminations/ Adjustments
Total
Regulated Electric Revenues        
Residential$2,734
$1,806
$2,505
$706
$998
$
$
$8,749
General service2,212
1,262
1,422
424
768


6,088
Industrial1,217
622
256
122
769


2,986
Wholesale487
1,112
150
27
309


2,085
Change in unbilled21
18
25
5
9


78
Other revenues631
309
288
89
194

(166)1,345
Total Electric Revenues$7,302
$5,129
$4,646
$1,373
$3,047
$
$(166)$21,331
         
Regulated Natural Gas Revenues        
Residential$
$
$
$332
$
$631
$
$963
Commercial


133

359

492
Industrial


18

132

150
Power Generation




89

89
Change in unbilled


1

9

10
Other revenues


24

99

123
Total Natural Gas Revenues$
$
$
$508
$
$1,319
$
$1,827

 Twelve Months Ended December 31, 2016
(in millions)
Duke Energy
Carolinas

Duke Energy
Progress

Duke Energy
Florida

Duke Energy
Ohio
 (a)

Duke Energy
Indiana

Piedmont Natural Gas(b)

Eliminations/
Adjustments

Total
Regulated Electric Revenues        
Residential$2,933
$1,897
$2,473
$755
$983
$
$
$9,041
General service2,299
1,323
1,373
442
741


6,178
Industrial1,287
638
251
121
726


3,023
Wholesale457
1,078
185
20
334


2,074
Change in unbilled29
22
(11)13
26


79
Other revenues317
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 results of the wholly owned subsidiary, Duke Energy Kentucky.
(b)Includes Piedmont's results subsequent to the acquisition on October 3, 2016.

21



DUKE ENERGY CORPORATION
REPORTED TO ADJUSTED EARNINGS RECONCILIATION
Twelve Months Ended December 31, 2017
(Dollars in millions, except per share amounts)

    Special Items      
  Reported Earnings Costs to Achieve Piedmont Merger Regulatory Settlements Commercial Renewables Impairments Impacts of the Tax Act Discontinued Operations Total Adjustments Adjusted Earnings
SEGMENT INCOME                
Electric Utilities and Infrastructure $3,210
 $
 $98
B$
 $(231) $
 $(133) $3,077
Gas Utilities and Infrastructure 319
 
 
 
 (26)D
 (26) 293
Commercial Renewables 441
 
 
 74
C(442) 
 (368) 73
Total Reportable Segment Income 3,970
 
 98
 74
 (699) 
 (527) 3,443
Other (905) 64
A
 
 597
 
 661
 (244)
Discontinued Operations (6) 
 
 
 
 6
E6
 
Net Income Attributable to Duke Energy Corporation $3,059
 $64
 $98
 $74
 $(102)D$6
 $140
 $3,199
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED $4.36
 $0.09
 $0.14
 $0.11
 $(0.14) $0.01
 $0.21
 $4.57

A - Net of $39 million tax benefit. $102 million recorded within Operating Expenses and $1 million recorded within Interest Expense on the Consolidated Statements of Operations.
B - Net of $60 million tax benefit. $154 recorded within Impairment Charges and $4 million recorded within Other Income and Expenses on the Consolidated Statements of Operations.
C - Net of $28 million tax benefit. $92 million recorded within Impairment Charges and $10 million recorded within Other Income and Expenses on the Consolidated Statements of Operations.
D - $118 million benefit recorded within Income Tax Expense from Continuing Operations, offset by $16 million expense recorded within Gas Utilities and Infrastructure's Equity in Earnings of Unconsolidated Affiliates on the Consolidated Statements of Operations.
E - Recorded in (Loss) Income from Discontinued Operations, net of tax on the Consolidated Statements of Operations.

Weighted Average Shares, Diluted (reported and adjusted) - 700 million

22



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 Infrastructure152
 
 
 
 
 
 
 152
Commercial Renewables23
 
 
 45
C
 
 45
 68
Total Reportable Segment Income3,215
 
 
 45
 
 
 45
 3,260
International Energy
 
 
 
 243
D
 243
 243
Other(645) 329
A57
B
 
 
 386
 (259)
Intercompany Eliminations1
 
 
 
 
 (1) (1) 
Discontinued Operations(419) 
 
 
 (243)D662
E419
 
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 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

23



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. 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 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 (GAAP Reported Earnings) and Diluted EPS Attributable to Duke Energy Corporation common stockholders (GAAP Reported EPS), respectively.
Special items included in the periods presented include the following items, which management believes do not reflect ongoing costs:
Costs to Achieve Mergers represents charges that result from strategic acquisitions.
Regulatory Settlements represent charges related to the Levy nuclear project in Florida and the Mayo Zero Liquid Discharge and Sutton combustion turbine projects in North Carolina.
Commercial Renewables Impairments represent other-than-temporary, asset and goodwill impairments.
Impacts of the Tax Act represent estimated amounts recognized related to the Tax Cuts and Jobs Act.
Cost Savings Initiatives represent 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.
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.

24