2014

Duke Energy posts third quarter 2013 results -- Third quarter 2013 adjusted diluted earnings per share (EPS) were $1.46, compared with $1.47 for the third quarter 2012

-- Reported diluted EPS for third quarter 2013 was $1.42, compared with $0.85 for the third quarter 2012

-- Company narrows its 2013 adjusted diluted earnings guidance range from $4.20 to $4.45 per share to $4.25 to $4.45 per share

CHARLOTTE, N.C., Nov. 6, 2013 /PRNewswire/ -- Duke Energy (NYSE: DUK) today announced third quarter 2013 adjusted diluted EPS of $1.46, compared to $1.47 for the third quarter of 2012. Reported diluted EPS for the third quarter 2013 was $1.42, compared to $0.85 for the same period last year.

(Logo: http://photos.prnewswire.com/prnh/20130322/CL81938LOGO )

Reported results include special items that are excluded from the company's adjusted diluted EPS results.

In the company's regulated businesses, revised customer rates, increased weather-normalized retail volumes and wholesale net margins were partially offset by unfavorable weather and higher depreciation and amortization expense during the third quarter of 2013.

"Our third quarter results were supported by the constructive regulatory outcomes we achieved this year," said President and CEO Lynn Good. "As a result, we are narrowing our 2013 adjusted diluted EPS guidance range to $4.25 to $4.45.

"We have successfully achieved the near-term priorities we established a year ago and are well-positioned to deliver on our commitments to customers, communities and investors," she added. "Our ongoing focus is to deliver on the promises we made after our merger with Progress Energy – to leverage our scale in order to maximize the efficiency of our operational and financial performance."

BUSINESS UNIT RESULTS

The discussion below of third-quarter results includes adjusted segment income, which is a non-GAAP financial measure. The tables on pages 25 through 28 present a reconciliation of reported results to adjusted results.

U.S. Franchised Electric and Gas (USFE&G)

USFE&G recognized third-quarter 2013 adjusted segment income of $923 million, compared to $907 million in the third quarter 2012, an increase of $0.02 per share.

USFE&G's improved adjusted segment income was driven primarily by increased pricing and riders (+$0.16 per share) resulting from revised customer rates, as well as favorable retail volumes and wholesale net margins (+$0.07 per share).

These positive drivers were partially offset by unfavorable weather (-$0.11 per share), higher depreciation and amortization expense (-$0.06 per share) primarily resulting from reduced cost of removal amortization in Florida. Other unfavorable drivers included lower allowance for funds used during construction (AFUDC) equity (-$0.05 per share) primarily due to the completion of certain major capital projects.

International Energy

International Energy recognized third-quarter 2013 adjusted segment income of $116 million, compared to $103 million in the third quarter 2012, an increase of $0.02 per share.

International Energy's improved quarterly earnings were primarily due to stronger results in Latin America (+$0.04 per share) due to higher pricing in Brazil and financial results from the Chilean operations acquired in 2012. This was partially offset by unfavorable foreign currency exchange rates (-$0.01 per share).

Commercial Power

Commercial Power recognized third-quarter 2013 adjusted segment income of $15 million, compared to $31 million in the third quarter 2012, a decrease of $0.02 per share.

Commercial Power's lower results were primarily driven by weaker results from its renewables business (-$0.02 per share) and lower generation volumes from the Midwest gas generation fleet (-$0.01 per share).

These results were partially offset by higher generation margins from the Midwest coal generation fleet (+$0.01 per share).

Other

On an adjusted basis, Other primarily includes corporate interest expense not allocated to the business units, results from Duke Energy's captive insurance company, other investments, and income tax levelization adjustments.

Other recognized a third-quarter 2013 adjusted net expense of $22 million, compared to $16 million in the third quarter 2012, a difference of $0.01 per share.

Share Dilution

On July 2, 2012, Duke Energy issued approximately 258 million shares of common stock in connection with the closing of the merger with Progress Energy, Inc. The full quarter impact of the issuance of these additional shares had a dilutive impact of $0.02 per share on the quarter-over-quarter adjusted diluted EPS results.

Reconciliation of quarterly reported to adjusted diluted EPS

Mark-to-market impacts of economic hedges in the Commercial Power segment and special items excluded from Duke Energy's adjusted diluted EPS for the quarters include:

 

(In millions, except per-share amounts)

Pre-Tax

Amount

Tax

Effect

3Q2013
EPS
Impact

3Q2012
EPS
Impact

Third Quarter 2013 

- Costs to Achieve, Progress Merger

$(88)

$34

$(0.08)


- Mark-to-market impact of economic hedges

$19

$(7)

$0.02


- Discontinued operations, net of tax

$(5)

$19

$0.02



Third Quarter 2012

- Costs to Achieve, Progress Merger

$(457)

$164


$(0.42)

- Edwardsport Impairment

$(180)

$63


$(0.17)

- DNC host committee support

$(10)

$4


$(0.01)

- Mark-to-market impact of economic hedges

$(31)

$12


$(0.03)

- Discontinued operations, net of tax

$6

$(2)


$0.01

Total diluted EPS impact



$(0.04)

$(0.62)

 

Reconciliation of reported to adjusted diluted EPS for the quarters:


3Q2013

EPS

3Q2012

EPS

Diluted EPS, as reported

$1.42

$0.85

Adjustments to reported EPS: 

- Diluted EPS impact of special items, mark-to-market in Commercial Power, and discontinued operations (net of tax)

$0.04

 

 

$0.62

Diluted EPS, adjusted

$1.46

$1.47

 

Analyst Conference Call

An earnings conference call for analysts is scheduled for 10 a.m. ET today to discuss Duke Energy's financial performance for the third quarter 2013 as well as providing other business updates. The conference call will be hosted by Lynn Good, president and chief executive officer, and Steve Young, executive vice president and chief financial officer. 

The call can be accessed via the investors' section (http://www.duke-energy.com/investors/) of Duke Energy's website or by dialing 877-675-4756 in the United States or 719-325-4901 outside the United States. The confirmation code is 5678441. Please call in 10 to 15 minutes prior to the scheduled start time.

A replay of the conference call will be available until 1 p.m. ET, November 16, 2013, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 5678441. A replay and transcript also will be available by accessing the investors' section of the company's website.

Non-GAAP financial measures

The primary performance measure used by management to evaluate segment performance is segment income. Segment income is defined as income from continuing operations net of income attributable to non-controlling interests. In addition, direct interest expense and income taxes are included in segment income and certain governance costs are allocated to each of the segments.

Management believes segment income, which is the GAAP measure used to report segment results, is a good indicator of each segment's operating performance as it represents the approximate net income contribution of Duke Energy's business segments by incorporating the direct financing methods or capital structures of the business segments as well as the income tax attributes of the businesses and regions in which they operate.

Duke Energy's management uses adjusted diluted EPS, which is a non-GAAP financial measure as it represents diluted EPS from continuing operations attributable to Duke Energy Corporation common shareholders, adjusted for the per-share impact of special items and the mark-to-market impacts of economic hedges in the Commercial Power segment, as a measure to evaluate operations of the company. In addition, Duke Energy's management calculates the EPS impact of segment income drivers to facilitate an understanding of the impacts of each income driver on consolidated adjusted diluted EPS.

Special items represent certain charges and credits, which management believes will not be recurring on a regular basis, although it is reasonably possible such charges and credits could recur. Mark-to-market adjustments reflect the impact of derivative contracts, which are used in Duke Energy's hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory treatment. The economic value of generation assets is subject to fluctuations in fair value due to market price volatility of input and output commodities (e.g. coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes of the derivative contracts from adjusted earnings until settlement better matches the financial impacts of the derivative contract with the portion of economic value of the underlying hedged asset.Management believes that the presentation of adjusted diluted EPS provides useful information to investors, as it provides them an additional relevant comparison of the company's performance across periods. Adjusted diluted EPS is also used as a basis for employee incentive bonuses. The most directly comparable GAAP measure for adjusted diluted EPS is reported diluted EPS from continuing operations attributable to Duke Energy Corporation common shareholders, which includes the impact of special items and the mark-to-market impacts of economic hedges in the Commercial Power segment. Due to the forward-looking nature of adjusted diluted EPS for future periods, information to reconcile such 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 special items and the mark-to-market impacts of economic hedges in the Commercial Power segment for future periods.

Duke Energy also uses adjusted segment income and adjusted Other net expenses as a measure of historical and anticipated future segment and Other performance. Adjusted segment income and adjusted Other net expenses are non-GAAP financial measures, as they represent reported segment income and Other net expenses adjusted for special items and the mark-to-market impacts of economic hedges in the Commercial Power segment. Management believes that the presentation of adjusted segment income and adjusted Other net expenses provides useful information to investors, as it provides them an additional relevant comparison of a segment's or Other's performance across periods. When an EPS amount is provided for a segment income driver, the per share impact is derived by taking the before-tax amount of the item less income taxes based on Duke Energy's consolidated effective tax rate, divided by the Duke Energy weighted-average diluted shares outstanding for the period. The most directly comparable GAAP measure for adjusted segment income or adjusted Other net expenses is reported segment income or Other net expenses, which represents segment income and Other net expenses from continuing operations, including any special items and the mark-to-market impacts of economic hedges in the Commercial Power segment. Due to the forward-looking nature of any forecasted adjusted segment income or adjusted Other net expenses 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 special items, the mark-to-market impacts of economic hedges in the Commercial Power segment, or any amounts that may be reported as discontinued operations or extraordinary items for future periods.

Duke Energy is the largest electric power holding company in the United States with more than $110 billion in total assets. Its regulated utility operations serve approximately 7.2 million electric customers located in six states in the Southeast and Midwest. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com. 

Forward-Looking Information

This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions.

These forward-looking statements are identified by terms and phrases such as "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "guidance," "outlook" and similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. Factors that could cause actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to: state, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements or climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices; the ability to recover eligible costs, including those associated with future significant weather events, and earn an adequate return on investment through the regulatory process; the costs of retiring Crystal River Unit 3 could prove to be more extensive than is currently identified, all costs associated with the retirement Crystal River Unit 3 asset, including replacement power may not be fully recoverable through the regulatory process; the ability to maintain relationships with customers, employees or suppliers; the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; the impact of compliance with material restrictions or conditions related to the Progress Energy merger imposed by regulators could exceed our expectations; costs and effects of legal and administrative proceedings, settlements, investigations and claims; industrial, commercial and residential growth or decline in service territories or customer bases resulting from customer usage patterns, including energy efficiency efforts and use of alternative energy sources including self-generation and distributed generation technologies; additional competition in electric markets and continued industry consolidation; political and regulatory uncertainty in other countries in which Duke Energy conducts business; the influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts and tornadoes; the ability to successfully operate electric generating facilities and deliver electricity to customers; the impact on facilities and business from a terrorist attack, cyber security threats and other catastrophic events; the inherent risks associated with the operation and potential construction of nuclear facilities, including environmental, health, safety, regulatory and financial risks; the timing and extent of changes in commodity price, interest rates and foreign currency exchange rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets; the results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings and general economic conditions; declines in the market prices of equity securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans, and nuclear decommissioning trust funds; changes in rules for regional transmission organizations, including changes in rate designs and new and evolving capacity markets, and risks related to obligations created by the default of other participants; the ability to control operation and maintenance costs; the level of creditworthiness of counterparties to transactions; employee workforce factors, including the potential inability to attract and retain key personnel; the ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent); the performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities; the effect of accounting pronouncements issued periodically by accounting standard-setting bodies; the impact of potential goodwill impairments; the ability to reinvest retained earnings of foreign subsidiaries or repatriate such earnings on a tax free basis; and the ability to successfully complete future merger, acquisition or divestiture plans.

Additional risks and uncertainties are identified and discussed in Duke Energy's and its subsidiaries' reports filed with the SEC and available at the SEC's website at www.sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than Duke Energy has described. Forward looking statements speak only as of the date they are made, Duke Energy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date.

Media Contact: Tom Shiel
Office: 704.382.2355 | 24-Hour: 800.559.3853

Analysts: Bob Drennan
Office: 704.382.4070

Analysts: Bill Currens
Office: 704.382.1603

 


DUKE ENERGY CORPORATION

EARNINGS VARIANCES

September 2013 QTD vs. Prior Year


















($ per share)


U.S. Franchised
Electric & Gas


International
Energy


Commercial
Power


Other


Consolidated


















2012 QTD Reported Earnings Per Share, Diluted


$

1.13


$

0.15


$

0.01


$

(0.45)


$

0.85

Costs to Achieve, Progress Merger



-



-



-



0.42



0.42

Edwardsport Charges



0.17



-



-



-



0.17

DNC Host Committee Support



-



-



-



0.01



0.01

Economic Hedges (Mark-to-Market)



-



-



0.03



-



0.03

Discontinued Operations















(0.01)

2012 QTD Adjusted Earnings Per Share, Diluted


$

1.30


$

0.15


$

0.04


$

(0.02)


$

1.47


















Share Differential (a)



(0.01)



(0.01)



-



-



(0.02)


















2012 QTD Adjusted Earnings Per Share, Diluted, Recasted for Share Issuance


$

1.29


$

0.14


$

0.04


$

(0.02)


$

1.45


















Weather



(0.11)



-



-



-



(0.11)


















Pricing and Riders (b)



0.16



-



-



-



0.16


















Latin America, including Foreign Exchange Rates (c)



-



0.03



-



-



0.03


















Midwest Coal Generation (d)



-



-



0.01



-



0.01


















Midwest Gas Generation (e)



-



-



(0.01)



-



(0.01)


















Duke Energy Retail 



-



-



(0.01)



-



(0.01)


















Interest Expense 



0.02



-



0.01



-



0.03


















Change in effective income tax rate



0.01



-



-



-



0.01


















Other (f)(g)



(0.06)



(0.01)



(0.02)



(0.01)



(0.10)


















2013 QTD Adjusted Earnings Per Share, Diluted


$

1.31


$

0.16


$

0.02


$

(0.03)


$

1.46

Costs to Achieve, Progress Merger



-



-



-



(0.08)



(0.08)

Economic Hedges (Mark-to-Market)



-



-



0.02



-



0.02

Discontinued Operations















0.02

2013 QTD Reported Earnings Per Share, Diluted


$

1.31


$

0.16


$

0.04


$

(0.11)


$

1.42

































Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.


Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.


















(a)

Reflects the impact on prior period earnings per diluted share due to the increase in Duke Energy's weighted-average diluted common shares outstanding as a result of shares issued to complete the merger with Progress Energy. Weighted-average diluted shares outstanding increased from 699 million for the quarter ended September 30, 2012 to 706 million for the quarter ended September 30, 2013.


















(b)

Primarily due to the January 2013 implementation of revised base rates for Duke Energy Florida (+$0.05), the June 2013 implementation of revised base rates for Duke Energy Progress (+$0.04), the May 2013 implementation of revised distribution rates for Duke Energy Ohio (+$0.02), the September 2013 implementation of revised base rates for Duke Energy Carolinas (+$0.01) and higher recovery under the IGCC rider, net of AFUDC, for Duke Energy Indiana (+$0.01).


















(c) 

Primarily driven by higher average power prices and lower average purchased power costs, partially offset by lower volumes in Brazil (+$0.03) and the inclusion of the results from Chilean operations acquired in the fourth quarter of 2012 (+0.02), partially offset by unfavorable foreign exchange rates (-$0.01).


















(d)

Primarily due to higher energy margins.


















(e)

Primarily due to decreased generation margins resulting from lower volumes.


















(f)

Amount for U.S. Franchised Electric & Gas includes an increase in depreciation and amortization expense (-$0.06) and lower AFUDC-equity (-$0.05), partially offset by increased retail volumes and higher wholesale margins, including new contracts (+$0.07).


















(g)

Amount for Commercial Power includes the renewables portfolio (-$0.02).

 

 


DUKE ENERGY CORPORATION

EARNINGS VARIANCES

September 2013 YTD vs. Prior Year


















($ per share)


U.S. Franchised
Electric & Gas


International
Energy


Commercial
Power


Other


Consolidated


















2012 YTD Reported Earnings Per Share, Diluted


$

2.38


$

0.66


$

0.14


$

(0.68)


$

2.51

Costs to Achieve, Progress Merger



-



-



-



0.58



0.58

Edwardsport Charges



0.72



-



-



-



0.72

Voluntary Opportunity Plan Deferral



(0.11)



-



-



-



(0.11)

DNC Host Committee Support



-



-



-



0.01



0.01

Economic Hedges (Mark-to-Market)



-



-



0.04



-



0.04

Discontinued Operations















(0.01)

2012 YTD Adjusted Earnings Per Share, Diluted


$

2.99


$

0.66


$

0.18


$

(0.09)


$

3.74


















Share Differential (a)



(0.74)



(0.17)



(0.04)



0.03



(0.92)


















2012 YTD Adjusted Earnings Per Share, Diluted, Recasted for Share Issuance


$

2.25


$

0.49


$

0.14


$

(0.06)


$

2.82


















Progress Energy Contribution



0.72



-



-



(0.07)



0.65


















Weather



(0.06)



-



-



-



(0.06)


















Pricing and Riders (b)



0.23



-



-



-



0.23


















Latin America, including Foreign Exchange Rates (c)



-



(0.02)



-



-



(0.02)


















National Methanol Company



-



(0.03)



-



-



(0.03)


















Midwest Coal Generation (d)



-



-



(0.03)



-



(0.03)


















Midwest Gas Generation (e)



-



-



(0.09)



-



(0.09)


















Duke Energy Retail 



-



-



0.01



-



0.01


















Interest Expense



0.02



-



0.02



(0.03)



0.01


















Change in effective income tax rate



(0.02)



-



0.02



-



-


















Other (f)(g)



(0.07)



(0.02)



(0.04)



(0.01)



(0.14)


















2013 YTD Adjusted Earnings Per Share, Diluted


$

3.07


$

0.42


$

0.03


$

(0.17)


$

3.35

Crystal River Unit 3 Impairment



(0.26)



-



-



-



(0.26)

Nuclear Development Charges



(0.08)



-



-



-



(0.08)

Costs to Achieve, Progress Merger



-



-



-



(0.20)



(0.20)

Litigation Reserve



-



-



-



(0.04)



(0.04)

Economic Hedges (Mark-to-Market)



-



-



0.01



-



0.01

Discontinued Operations















0.01

2013 YTD Reported Earnings Per Share, Diluted


$

2.73


$

0.42


$

0.04


$

(0.41)


$

2.79





















































Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.



Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.


















(a)

Reflects the impact on prior period earnings per diluted share due to the increase in Duke Energy's weighted-average diluted common shares outstanding as a result of shares issued to complete the merger with Progress Energy. Weighted-average diluted shares outstanding increased from 531 million for the nine months ended September 30, 2012, to 706 million for the nine months ended September 30, 2013.


















(b)

Primarily due to the January 2013 implementation of revised base rates for Duke Energy Florida (+$0.05), the June 2013 implementation of revised base rates for Duke Energy Progress (+$0.04), the February 2012 and September 2013 implementation of revised base rates for Duke Energy Carolinas (+$0.04), increased recovery under the IGCC rider, net of AFUDC, for Duke Energy Indiana (+$0.04) and the May 2013 implementation of revised distribution rates for Duke Energy Ohio (+$0.02).


















(c) 

Primarily driven by unfavorable foreign exchange rates.


















(d)

Primarily due to lower PJM capacity revenues (-$0.05), partially offset by higher energy margins (+$0.02).


















(e)

Primarily due to lower PJM capacity revenue (-$0.04), decreased generation margins due to lower volumes (-$0.04) and the prior-year recovery of a previously written-off Lehman Brothers receivable (-$0.01). 


















(f)

Amount for U.S. Franchised Electric & Gas includes lower AFUDC-equity (-$0.09) and an increase in depreciation and amortization expense (-$0.07), partially offset by increased retail volumes and higher wholesale margins, including new contracts (+$0.11).


















(g)

Amount for Commercial Power includes unfavorable results of the renewables portfolio (-$0.02).

 


DUKE ENERGY CORPORATION

EARNINGS VARIANCES

September 2013 QTD vs. Prior Year












($ per share)


Legacy Progress
Energy


Legacy
Duke Energy


Consolidated












2012 QTD Adjusted Earnings Per Share, Diluted








$

1.47












Share Differential (a)









(0.02)












2012 QTD Adjusted Earnings Per Share, Diluted, Recasted for Share Issuance


$

0.50


$

0.95


$

1.45












Weather



(0.03)



(0.08)



(0.11)












Pricing and Riders



0.10



0.06



0.16












Latin America, including Foreign Exchange Rates



-



0.03



0.03












Midwest Coal Generation



-



0.01



0.01












Midwest Gas Generation



-



(0.01)



(0.01)












Duke Energy Retail 



-



(0.01)



(0.01)












Interest Expense 



0.02



0.01



0.03












Change in effective income tax rate



(0.02)



0.03



0.01












Other



(0.06)



(0.04)



(0.10)





-







2013 QTD Adjusted Earnings Per Share, Diluted


$

0.51


$

0.95


$

1.46
























Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.



Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.












(a)

Weighted-average diluted shares outstanding increased from 699 million for the quarter ended September 30, 2012 to 706 million for the quarter ended September 30, 2013.

 

 

 


DUKE ENERGY CORPORATION

EARNINGS VARIANCES

September 2013 YTD vs. Prior Year


















Legacy Progress Energy 


Legacy
Duke Energy




($ per share)


For the Six
Months Ended
June 30, 2013


For the Three
Months ended
September 30,
2013


For the Nine
Months ended
September 30,
2013


Consolidated















2012 YTD Adjusted Earnings Per Share, Diluted











$

3.74















Share Differential (a)












(0.92)















2012 YTD Adjusted Earnings Per Share, Diluted, Recasted for Share Issuance


$

-


$

0.50


$

2.32


$

2.82















Progress Energy Contribution for the six months ended June 30, 2013 (b)



0.65



-



-



0.65















Weather



-



(0.03)



(0.03)



(0.06)















Pricing and Riders



-



0.10



0.13



0.23















Latin America, including Foreign Exchange Rates



-



-



(0.02)



(0.02)















National Methanol Company



-



-



(0.03)



(0.03)















Midwest Coal Generation



-



-



(0.03)



(0.03)















Midwest Gas Generation



-



-



(0.09)



(0.09)















Duke Energy Retail 



-



-



0.01



0.01















Interest Expense 



-



0.02



(0.01)



0.01















Change in effective income tax rate



-



(0.02)



0.02



-















Other



-



(0.06)



(0.08)



(0.14)















2013 YTD Adjusted Earnings Per Share, Diluted


$

0.65


$

0.51


$

2.19


$

3.35






























Note 1: Earnings Per Share amounts are calculated using the consolidated effective income tax rate.


Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding.


















(a)

Reflects the impact on prior period earnings per diluted share due to the increase in Duke Energy's weighted-average diluted common shares outstanding as a result of shares issued to complete the merger with Progress Energy.  Weighted-average diluted shares outstanding increased from 531 million for the nine months ended September 30, 2012, to 706 million for the nine months ended September 30, 2013.


















(b)

Reflects Progress Energy's contribution to EPS for the six months ended June 30, 2013. Progress Energy contributed +$0.72 per share to USFE&G and -$0.07 per share to Other.

 

 

 

September 2013

QUARTERLY HIGHLIGHTS

(Unaudited)










Three Months Ended


Nine Months Ended


September 30,


September 30,









(In millions, except per-share amounts and where noted)

2013


2012


2013


2012

COMMON STOCK DATA








Income from continuing operations attributable to Duke Energy Corporation common shareholders








    Basic

$                1.40


$                0.84


$                2.78


$                2.50

    Diluted

$                1.40


$                0.84


$                2.78


$                2.50

Income from discontinued operations attributable to Duke Energy Corporation common shareholders








    Basic

$                0.02


$                0.01


$                0.01


$                0.01

    Diluted

$                0.02


$                0.01


$                0.01


$                0.01

Net income attributable to Duke Energy Corporation common shareholders








    Basic

$                1.42


$                0.85


$                2.79


$                2.51

    Diluted

$                1.42


$                0.85


$                2.79


$                2.51

  Dividends Declared Per Share

$                      -


$                      -


$                2.31


$              2.265

  Weighted-Average Shares Outstanding








    Basic

706


699


706


531

    Diluted

706


699


706


531









SEGMENT INCOME BY BUSINESS SEGMENT








U.S. Franchised Electric and Gas(a)(b)(c)

$                 923


$                 790


$              1,932


$              1,263

International Energy

116


103


300


350

Commercial Power

27


12


26


71

Total Reportable Segment Income

1,066


905


2,258


1,684

Other Net Expense(d)(e)

(76)


(315)


(292)


(356)

Income from Discontinued Operations, net of tax

14


4


11


5

Net Income Attributable to Duke Energy Corporation

$              1,004


$                 594


$              1,977


$              1,333









CAPITALIZATION








Total Common Equity





50%


51%

Total Debt





50%


49%









Total Debt





$            41,312


$            39,472

Book Value Per Share





$              58.41


$              58.38

Actual Shares Outstanding





706


704









CAPITAL AND INVESTMENT EXPENDITURES








U.S. Franchised Electric and Gas

$              1,030


$              1,270


$              3,573


$              2,860

International Energy

18


95


44


825

Commercial Power

43


205


110


119

Other

52


21


180


84









Total Capital and Investment Expenditures

$              1,143


$              1,591


$              3,907


$              3,888

















(a) Includes impairment charges of $180 million for the nine months ended September 30, 2013 related to Crystal River Unit 3 Nuclear Station (net of tax of $115 million).


(b) Includes impairment charges of $57 million for the nine months ended September 30, 2013 related to nuclear development costs (net of tax of $30 million).


(c) Includes impairment and other charges of $117 million for the three months ended September 30, 2012 related to the Edwardsport IGCC project (net of tax of $63 million), and impairment and other charges of $385 million for the nine months ended September 30, 2012 related to the Edwardsport IGCC project (net of tax of $215 million).


(d) Includes costs to achieve the Progress Energy merger of $54 million for the three months ended September 30, 2013 (net of tax of $34 million), and $139 million for the nine months ended September 30, 2013 (net of tax of $86 million).

(e) Includes costs to achieve the Progress Energy merger of $293 million for the three months ended September 30, 2012 (net of tax of $164 million).  

 

 


September 2013

QUARTERLY HIGHLIGHTS

(Unaudited)










Three Months Ended


Nine Months Ended


September 30,


September 30,









(In millions, except where noted)

2013


2012


2013


2012

U.S. FRANCHISED ELECTRIC AND GAS








  Operating Revenues

$                       5,786


$                       5,842


$                     15,766


$                      11,207

  Operating Expenses (a)(b)(c)

4,131


4,433


12,136


8,914

  Gains on Sales of Other Assets, net

-


6


6


13

  Operating Income

1,655


1,415


3,636


2,306

  Other Income and Expenses

57


103


166


227

  Interest Expense

235


257


713


546

  Income Before Income Taxes

1,477


1,261


3,089


1,987

  Income Tax Expense(d)(e)(f)

554


470


1,157


723

  Less: Income Attributable to Noncontrolling Interests

-


1


-


1

  Segment Income

$                           923


$                           790


$                        1,932


$                        1,263









  Depreciation and Amortization

$                           586


$                           545


$                        1,678


$                        1,275









  Duke Energy Carolinas GWh sales

22,935


23,103


65,383


62,138

  Duke Energy Progress GWh sales

17,005


17,331


45,761


43,965

  Duke Energy Florida's GWh sales

11,263


11,466


29,132


29,814

  Duke Energy Ohio GWh sales

6,589


6,804


18,567


18,600

  Duke Energy Indiana GWh sales

8,747


8,923


25,189


25,684

  Total GWh sales

66,539


67,627


184,032


180,201

  Net Proportional MW Capacity in Operation





49,425


47,450









INTERNATIONAL ENERGY








  Operating Revenues

$                           370


$                           382


$                         1,168


$                          1,181

  Operating Expenses

232


266


765


768

  Operating Income

138


116


403


413

  Other Income and Expenses

48


46


95


136

  Interest Expense

22


23


60


60

  Income Before Income Taxes

164


139


438


489

  Income Tax Expense

44


34


128


129

  Less: Income Attributable to Noncontrolling Interests

4


2


10


10

  Segment Income

$                             116


$                            103


$                           300


$                           350









  Depreciation and Amortization

$                               25


$                              25


$                             75


$                              74









  Sales, GWh

5,062


5,308


14,744


15,264

  Proportional MW Capacity in Operation





4,600


4,465









COMMERCIAL POWER








  Operating Revenues

$                           550


$                           525


$                        1,559


$                        1,607

  Operating Expenses

514


522


1,555


1,512

  Gains on Sales of Other Assets, net

-


10


1


11

  Operating Income

36


13


5


106

  Other Income and Expenses

(2)


1


9


26

  Interest Expense

16


14


48


55

  Income Before Income Taxes

18


-


(34)


77

  Income Tax Expense

(9)


(13)


(60)


5

  Less: Income Attributable to Noncontrolling Interests

-


1


-


1

  Segment Income

$                              27


$                               12


$                              26


$                               71









  Depreciation and Amortization

$                              63


$                              58


$                            188


$                            172









Actual Coal-fired Plant Production, GWh

4,996


5,054


13,730


12,421

Actual Gas-fired Plant Production, GWh

3,715


4,387


10,953


13,483

Actual Renewable Plant Production, GWh

941


615


3,761


2,399

Actual Plant Production, GWh

9,652


10,056


28,444


28,303

  Net Proportional MW Capacity in Operation





8,132


7,760









OTHER 








  Operating Revenues

$                              54


$                              20


$                            125


$                               51

  Operating Expenses(g)(h)

140


484


386


514

  Losses on Sales of Other Assets, net

-


(2)


(4)


(3)

  Operating Loss

(86)


(466)


(265)


(466)

  Other Income and Expenses

(16)


15


3


14

  Interest Expense

106


107


306


196

  Loss Before Income Taxes

(208)


(558)


(568)


(648)

  Income Tax Benefit(i)(j)

(132)


(243)


(273)


(292)

  Less: Loss Attributable to Noncontrolling Interests

-


-


(3)


-

  Net Expense

$                            (76)


$                          (315)


$                          (292)


$                         (356)









  Depreciation and Amortization

$                              33


$                              38


$                            104


$                              99










(a) Includes pre-tax impairment and other charges of $180 million for the three months ended September 30, 2012, and $600 for the nine months ended September 30, 2012, related to the Edwardsport IGCC project.

(b) Includes a pre-tax impairment charge of $295 million for the nine months ended September 30, 2013, related to the Crystal River Unit 3 Nuclear Station.


(c) Includes pre-tax impairment charges of $87 million for the nine months ended September 30, 2013, related to nuclear development costs.


(d) Includes a tax benefit of $63 million for the three months ended September 30, 2012, and $215 million for the nine months ended September 30, 2012, on the impairment and other charges related to the Edwardsport IGCC project.


(e) Includes a tax benefit of $115 million for the nine months ended September 30, 2013, on the impairment related to the Crystal River Unit 3 Nuclear Station.


(f) Includes a tax benefit of $30 million for the nine months ended September 30, 2013, on the impairment related to nuclear development costs.


(g) Includes costs to achieve the Progress Energy merger of $449 million recorded in Operating Expense for the three months ended September 30, 2012, and $462 million recorded in Operating Expense for the nine months ended September 30, 2012.


(h) Includes costs to achieve the Progress Energy merger of $113 million recorded in Operating Expense for the three months ended September 30, 2013, and $275 million recorded in Operating Expense for the nine months ended September 30, 2013.


(i) Includes a tax benefit of $164 million for the three months ended September 30, 2012, and $166 million for the nine months ended September 30, 2012, on costs to achieve the Progress Energy merger.


(j) Includes a tax benefit of $34 million for the three months ended September 30, 2013, and $86 million for the nine months ended September 30, 2013, on costs to achieve the Progress Energy merger.


 

 

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In millions, except per-share amounts)











Three Months Ended


Nine Months Ended




September 30,


September 30,




2013

2012


2013

2012

Operating Revenues







Regulated electric


$         5,718

$         5,763


$       15,441

$       10,892

Nonregulated electric, natural gas, and other


908

882


2,683

2,708

Regulated natural gas


83

77


362

329

Total operating revenues


6,709

6,722


18,486

13,929

Operating Expenses







Fuel used in electric generation and purchased power - regulated


2,013

2,222


5,394

3,848

Fuel used in electric generation and purchased power - nonregulated 


428

484


1,329

1,328

Cost of natural gas and coal sold


33

40


180

184

Operation, maintenance and other


1,458

1,654


4,383

3,262

Depreciation and amortization


707

666


2,045

1,620

Property and other taxes


325

326


991

681

Impairment charges


2

266


388

668

Total operating expenses


4,966

5,658


14,710

11,591

Gains on Sales of Other Assets and Other, net


-

14


3

21

Operating Income


1,743

1,078


3,779

2,359

Other Income and Expenses







Equity in earnings of unconsolidated affiliates


33

33


91

118

Other income and expenses, net


54

132


182

285

Total other income and expenses


87

165


273

403









Interest Expense


379

401


1,127

857

Income From Continuing Operations Before Income Taxes


1,451

842


2,925

1,905

Income Tax Expense from Continuing Operations


457

248


952

565

Income From Continuing Operations


994

594


1,973

1,340

Income From Discontinued Operations, net of tax


14

4


11

5

Net Income 


1,008

598


1,984

1,345

Less: Net Income Attributable to Noncontrolling Interests 


4

4


7

12

Net Income Attributable to Duke Energy Corporation


$         1,004

$            594


$         1,977

$         1,333

















Earnings Per Share - Basic and Diluted







Income from continuing operations attributable to Duke Energy Corporation common shareholders






Basic 


$           1.40

$           0.84


$           2.78

$           2.50


Diluted


$           1.40

$           0.84


$           2.78

$           2.50

Income from discontinued operations attributable to Duke Energy Corporation common shareholders






Basic 


$           0.02

$           0.01


$           0.01

$           0.01


Diluted


$           0.02

$           0.01


$           0.01

$           0.01

Net Income attributable to Duke Energy Corporation common shareholders






Basic 


$           1.42

$           0.85


$           2.79

$           2.51


Diluted


$           1.42

$           0.85


$           2.79

$           2.51

Dividends declared per share


$                 -

$                 -


$           2.31

$         2.265

Weighted-average shares outstanding








Basic


706

699


706

531


Diluted


706

699


706

531









 

 

DUKE ENERGY CORPORATION
CONSOLIDATED
BALANCE SHEETS
(Unaudited)
(In millions)










September 30,


December 31,




2013


2012

ASSETS





Current Assets





Cash and cash equivalents


$               2,166


$               1,424

Short-term investments


118


333

Receivables (net of allowance for doubtful accounts of 






$31 at September 30, 2013 and $34 at December 31, 2012)


1,585


1,516

Restricted receivables of variable interest entities (net of allowance for 






doubtful accounts of $42 at September 30, 2013 and $44 at December 31, 2012)


1,258


1,201

Inventory


3,100


3,223

Other


2,191


2,425


Total current assets


10,418


10,122

Investments and Other Assets





Investments in equity method unconsolidated affiliates


511


483

Nuclear decommissioning trust funds


4,805


4,242

Goodwill


16,345


16,365

Intangibles, net


351


372

Notes receivable


65


71

Restricted other assets of variable interest entities


52


62

Other


2,361


2,399


Total investments and other assets


24,490


23,994

Property, Plant and Equipment





Cost


100,682


98,833

Cost, variable interest entities


1,679


1,558

Accumulated depreciation and amortization


(33,136)


(31,969)

Generation facilities to be retired, net


59


136


Net property, plant and equipment


69,284


68,558

Regulatory Assets and Deferred Debits





Regulatory assets 


10,220


11,004

Other


178


178


Total regulatory assets and deferred debits


10,398


11,182

Total Assets


$           114,590


$           113,856

LIABILITIES AND EQUITY





Current Liabilities





Accounts payable


$               1,819


$               2,444

Notes payable and commercial paper


1,278


745

Non-recourse notes payable of variable interest entities


325


312

Taxes accrued


706


459

Interest accrued


474


448

Current maturities of long-term debt


2,307


3,110

Other


2,330


2,511


Total current liabilities


9,239


10,029

Long-term Debt


36,137


35,499

Non-recourse Long-term Debt of Variable Interest Entities


1,265


852

Deferred Credits and Other Liabilities





Deferred income taxes


11,489


10,490

Investment tax credits


446


458

Accrued pension and other post-retirement benefit costs


1,743


2,520

Asset retirement obligations


5,341


5,169

Regulatory liabilities


5,904


5,584

Other


1,789


2,221


Total deferred credits and other liabilities


26,712


26,442

Commitments and Contingencies





Preferred Stock of Subsidiaries


-


93

Equity





Common stock, $0.001 par value, 2 billion shares authorized; 706 million 






and 704 million shares outstanding at September 30, 2013 and 






December 31, 2012, respectively


1


1

Additional paid-in capital


39,317


39,279

Retained earnings


2,227


1,889

Accumulated other comprehensive loss


(380)


(306)


Total Duke Energy Corporation shareholders' equity


41,165


40,863

Noncontrolling interests


72


78


Total equity


41,237


40,941

Total Liabilities and Equity


$           114,590


$           113,856







 

 

 

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In millions)







Nine Months Ended September 30,







2013


2012










CASH FLOWS FROM OPERATING ACTIVITIES






Net income 



$              1,984


$               1,345


Adjustments to reconcile net income to net cash provided by







operating activities:


3,006


2,634





Net cash provided by operating activities


4,990


3,979










CASH FLOWS FROM INVESTING ACTIVITIES









Net cash used in investing activities


(3,566)


(3,989)










CASH FLOWS FROM FINANCING ACTIVITIES









Net cash used in financing activities


(682)


(339)











Net increase (decrease) in cash and cash equivalents


742


(349)


Cash and cash equivalents at beginning of period


1,424


2,110


Cash and cash equivalents at end of period


$              2,166


$               1,761










 

 

 

US Franchised Electric & Gas Consolidated


Quarterly Highlights


Supplemental Franchised Electric Information


2013
























Three Months Ended


Nine Months Ended





September 30


September 30











% Inc.(Dec.)








% Inc.(Dec.)









%


Weather 






%


Weather 





2013


2012


Inc. (Dec.)


Normal (2)


2013


2012


Inc. (Dec.)


Normal (2)





















GWH Sales (1)



















Residential


22,406


23,981


(6.6%)


1.1%


61,996


61,100


1.5%


0.2%



General Service


21,187


21,608


(1.9%)


1.6%


57,163


57,477


(0.5%)


0.6%



Industrial


13,719


13,420


2.2%


3.0%


38,466


38,379


0.2%


1.0%



Other Energy Sales


150


150


0.0%


-


451


452


(0.2%)


-



Unbilled Sales


(650)


(1,152)


43.6%


N/A


(308)


541


(100.0%)


N/A






















    Total Retail Sales


56,812


58,007


(2.1%)


1.7%


157,768


157,949


(0.1%)


0.5%






















Special Sales (3)


9,727


9,620


1.1%




26,264


22,252


18.0%
























    Total Consolidated Electric Sales - USFE&G


66,539


67,627


(1.6%)




184,032


180,201


2.1%










































Average Number of Customers



















Residential


6,212,793


6,165,328


0.8%




6,207,721


6,160,964


0.8%





General Service


938,281


930,954


0.8%




935,505


928,675


0.7%





Industrial


18,533


18,816


(1.5%)




18,619


18,903


(1.5%)





Other Energy Sales


22,142


22,119


0.1%




22,148


22,056


0.4%
























  Total Regular Sales


7,191,749


7,137,217


0.8%




7,183,993


7,130,598


0.7%
























Special Sales


61


68


(10.3%)




62


69


(10.1%)
























Total Average Number of Customers - USFE&G


7,191,810


7,137,285


0.8%




7,184,055


7,130,667


0.7%





























































Heating and Cooling Degree Days



















Carolinas - Actual



















Heating Degree Days


13


8


62.5%




2,067


1,439


43.6%





Cooling Degree Days


872


1,085


(19.6%)




1,338


1,685


(20.6%)
























Variance from Normal



















Heating Degree Days


44.4%


(27.3%)


n/a




6.2%


(26.2%)


n/a





Cooling Degree Days


(18.0%)


0.8%


n/a




(17.3%)


3.5%


n/a
























Midwest - Actual



















Heating Degree Days


-


21


(100.0%)




2,558


1,767


44.8%





Cooling Degree Days


717


937


(23.5%)




1,054


1,431


(26.3%)
























Variance from Normal



















Heating Degree Days


(100.0%)


75.0%


n/a




6.8%


(27.0%)


n/a





Cooling Degree Days


(11.3%)


20.0%


n/a




(8.4%)


28.0%


n/a











































Florida - Actual



















Heating Degree Days


-


-


0.0%




283


211


34.1%





Cooling Degree Days


1,409


1,392


1.2%




2,577


2,691


(4.2%)
























Variance from Normal



















Heating Degree Days


0.0%


0.0%


n/a




(5.4%)


(29.5%)


n/a





Cooling Degree Days


0.7%


(0.5%)


n/a




0.7%


5.2%


n/a











































(1)  Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes. 






















(2)  Represents weather normal calendar sales (i.e. billed and allocated unbilled sales) by customer class and for total retail sales.






















(3) Third quarter 2013 and year-to-date 2013 include 930 GWH and 1,585 GWH, respectively, of sales associated with the FERC mitigation contracts, for which the financial results are excluded from the Franchised Electric & Gas segment earnings. Both third quarter and year to date 2012 included 895 GWH of sales associated with the FERC mitigation contracts, for which the financial results are excluded from the Franchised Electric & Gas segment earnings.



 

 

Duke Energy Carolinas

Quarterly Highlights

Supplemental Franchised Electric Information

September 2013






















Three Months Ended


Nine Months Ended




September 30


September 30










% Inc.(Dec.)








% Inc.(Dec.)








%


Weather 






%


Weather 




2013


2012


Inc.(Dec.)


Normal (2)


2013


2012


Inc.(Dec.)


Normal (2)



















GWH Sales (1)


















Residential


7,351


7,973


(7.8%)




20,874


20,534


1.7%




General Service


7,812


7,911


(1.3%)




21,115


21,057


0.3%




Industrial


5,726


5,629


1.7%




15,866


15,899


(0.2%)




Other Energy Sales


73


73


0.0%




219


217


0.9%




Unbilled Sales


(538)


(474)


(13.5%)




(512)


(33)


(100.0%)




    Total Regular Electric Sales 


20,424


21,112


(3.3%)


1.3%


57,562


57,674


(0.2%)


0.7%




















Special Sales (3)


2,511


1,991


26.1%




7,821


4,464


75.2%






















  Total Consolidated Electric Sales - Duke Energy Carolinas

22,935


23,103


(0.7%)




65,383


62,138


5.2%







































Average Number of Customers


















Residential


2,070,230


2,054,732


0.8%




2,065,651


2,051,471


0.7%




General Service


339,859


337,276


0.8%




338,717


336,569


0.6%




Industrial


6,573


6,718


(2.2%)




6,618


6,774


(2.3%)




Other Energy Sales


14,369


14,393


(0.2%)




14,377


14,334


0.3%






















  Total Regular Sales


2,431,031


2,413,119


0.7%




2,425,363


2,409,148


0.7%






















Special Sales


23


24


(4.2%)




24


23


4.3%






















Total Avg Number of Customers - Duke Energy Carolinas


2,431,054


2,413,143


0.7%




2,425,387


2,409,171


0.7%

























































Heating and Cooling Degree Days


















Actual


















Heating Degree Days


12


8


50.0%




2,118


1,488


42.3%




Cooling Degree Days


817


986


(17.1%)




1,254


1,544


(18.8%)






















Variance from Normal


















Heating Degree Days


21.9%


(39.8%)


n/a




7.5%


(24.7%)


n/a




Cooling Degree Days


(20.4%)


(1.4%)


n/a




(19.0%)


2.6%


n/a








































(1)  Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes. 




















(2)  Represents weather normal total retail calendar sales (i.e. billed and allocated unbilled sales).




















(3)  Third quarter 2013 and year-to-date 2013 include 329 GWH and 681 GWH, respectively, of sales associated with the FERC mitigation contracts, for which the financial results are excluded from the Franchised Electric & Gas segment earnings. Both third quarter 2012 and year-to-date 2012 include 318 GWH of sales associated with the FERC mitigation contracts, for which the financial results are excluded from the Franchised Electric & Gas segment earnings.



 

 

 


Duke Energy Progress

Quarterly Highlights

Supplemental Franchised Electric Information

September 2013





















Three Months Ended


Nine Months Ended




September 30


September 30










% Inc.(Dec.)








% Inc.(Dec.)








%


Weather 






%


Weather 




2013


2012


Inc.(Dec.)


Normal (2)


2013


2012


Inc.(Dec.)


Normal (2)



















GWH Sales (1)


















Residential


4,604


4,936


(6.7%)




13,375


12,915


3.6%




General Service


4,281


4,413


(3.0%)




11,438


11,565


(1.1%)




Industrial


2,978


2,772


7.4%




8,086


7,884


2.6%




Other Energy Sales


30


30


0.0%




90


91


(1.1%)




Unbilled Sales


(92)


(272)


66.2%




(105)


(207)


49.3%




    Total Regular Electric Sales 


11,801


11,879


(0.7%)


3.8%


32,884


32,248


2.0%


1.5%




















Special Sales (3)


5,204


5,452


(4.5%)




12,877


11,717


9.9%






















  Total Consolidated Electric Sales - Duke Energy Progress


17,005


17,331


(1.9%)




45,761


43,965


4.1%

























































Average Number of Customers


















Residential


1,243,523


1,232,560


0.9%




1,240,502


1,229,980


0.9%




General Service


222,265


220,125


1.0%




221,355


219,251


1.0%




Industrial


4,341


4,412


(1.6%)




4,370


4,434


(1.4%)




Other Energy Sales


1,800


1,816


(0.9%)




1,808


1,844


(2.0%)






















  Total Regular Sales


1,471,929


1,458,913


0.9%




1,468,035


1,455,509


0.9%






















Special Sales


15


18


(16.7%)




15


19


(21.1%)






















Total Average Number of Customers - Duke Energy Progress

1,471,944


1,458,931


0.9%




1,468,050


1,455,528


0.9%

























































Heating and Cooling Degree Days


















Actual


















Heating Degree Days


14


8


75.0%




2,018


1,392


45.0%




Cooling Degree Days


926


1,185


(21.9%)




1,421


1,827


(22.2%)






















Variance from Normal


















Heating Degree Days


55.6%


(11.1%)


n/a




6.7%


(27.7%)


n/a




Cooling Degree Days


(15.6%)


2.9%


n/a




(15.6%)


4.3%


n/a






















(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes.




















(2) Represents weather normal total retail calendar sales (i.e. billed and allocated unbilled sales).































(3) Third quarter 2013 and year-to-date 2013 include 601 GWH and 904 GWH, respectively, of sales associated with the FERC mitigation contracts, for which the financial results are excluded from the Franchised Electric & Gas segment earnings. Both third quarter 2012 and year-to-date 2012 include 577 GWH of sales associated with the FERC mitigation contracts, for which the financial results are excluded from the Franchised Electric & Gas segment earnings.

 

 

Duke Energy Florida

Quarterly Highlights

Supplemental Franchised Electric Information

September 2013






















Three Months Ended


Nine Months Ended




September 30,


September 30,










% Inc.(Dec.)








% Inc.(Dec.)








%


Weather 






%


Weather 




2013


2012


Inc.(Dec.)


Normal (2)


2013


2012


Inc.(Dec.)


Normal (2)



















GWH Sales (1)


















Residential


5,713


5,712


0.0%




13,948


13,942


0.0%




General Service


4,192


4,205


(0.3%)




11,110


11,284


(1.5%)




Industrial


827


819


1.0%




2,409


2,384


1.0%




Other Energy Sales


6


6


0.0%




18


19


(5.3%)




Unbilled Sales


70


75


(6.7%)




483


805


(40.1%)




    Total Regular Sales


10,808


10,817


(0.1%)


(0.7%)


27,968


28,434


(1.6%)


(1.0%)




















Special Sales


455


649


(29.9%)




1,164


1,380


(15.7%)






















  Total Electric Sales - Duke Energy Florida


11,263


11,466


(1.8%)




29,132


29,814


(2.3%)

























































Average Number of Customers


















Residential


1,478,318


1,464,992


0.9%




1,477,493


1,463,126


1.0%




General Service


189,647


187,846


1.0%




189,054


187,171


1.0%




Industrial


2,331


2,358


(1.1%)




2,350


2,373


(1.0%)




Other Energy Sales


1,561


1,571


(0.6%)




1,565


1,556


0.6%






















  Total Regular Sales


1,671,857


1,656,767


0.9%




1,670,462


1,654,226


1.0%






















Special Sales


16


15


6.7%




15


14


7.1%






















Total Average Number of Customers - Duke Energy Florida


1,671,873


1,656,782


0.9%




1,670,477


1,654,240


1.0%

























































Heating and Cooling Degree Days


















Actual


















Heating Degree Days


-


-


-




283


211


34.1%




Cooling Degree Days


1,409


1,392


1.2%




2,577


2,691


(4.2%)






















Variance from Normal


















Heating Degree Days


0.0%


0.0%


n/a




(5.4%)


(29.5%)


n/a




Cooling Degree Days


0.7%


(0.5%)


n/a




0.7%


5.2%


n/a





















(1)  Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes. 



















(2)  Represents weather normal total retail calendar sales (i.e. billed and allocated unbilled sales).

 

 

Duke Energy Ohio


Quarterly Highlights


Supplemental Franchised Electric Information


September 2013











































Three Months Ended


Nine Months Ended





September 30,


September 30,











% Inc. (Dec.)








% Inc. (Dec.)









%


Weather






%


Weather





2013


2012


Inc.(Dec.)


 Normal (2)


2013


2012


Inc.(Dec.)


 Normal (2)





















GWH Sales (1)



















Residential


2,426


2,731


(11.2%)




6,761


6,770


(0.1%)





General Service


2,601


2,690


(3.3%)




7,166


7,188


(0.3%)





Industrial


1,497


1,512


(1.0%)




4,316


4,340


(0.6%)





Other Energy Sales


28


28


0.0%




84


85


(1.2%)





Unbilled Sales


(66)


(246)


73.2%




(82)


(19)


(100.0%)
























    Total Regular Electric Sales


6,486


6,715


(3.4%)


2.0%


18,245


18,364


(0.6%)


0.6%






















Special Sales


103


89


15.7%




322


236


36.4%
























    Total Electric Sales - Duke Energy Ohio


6,589


6,804


(3.2%)




18,567


18,600


(0.2%)










































Average Number of Customers



















Residential


735,261


731,917


0.5%




736,743


733,840


0.4%





General Service


86,141


85,499


0.8%




86,143


85,582


0.7%





Industrial 


2,540


2,574


(1.3%)




2,552


2,585


(1.3%)





Other Energy


2,932


2,903


1.0%




2,931


2,892


1.3%
























  Total Regular Sales


826,874


822,893


0.5%




828,369


824,899


0.4%
























Special Sales


1


1


0.0%




1


2


(50.0%)
























Total Average Number Electric Customers - Duke Energy Ohio


826,875


822,894


0.5%




828,370


824,901


0.4%





























































Heating and Cooling Degree Days



















Actual



















Heating Degree Days


-


19


(100.0%)




2,402


1,718


39.8%





Cooling Degree Days


702


917


(23.4%)




1,048


1,384


(24.3%)
























Variance from Normal



















Heating Degree Days


(100.0%)


58.3%


n/a




4.5%


(26.0%)


n/a





Cooling Degree Days


(13.9%)


16.1%


n/a




(9.1%)


23.1%


n/a











































(1)  Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes. 






















(2)  Represents weather normal total retail calendar sales (i.e. billed and allocated unbilled sales).

 

 

Duke Energy Ohio


Quarterly Highlights


Supplemental Franchised Gas Information


September 2013











































Three Months Ended


Nine Months Ended





September 30,


September 30,











% Inc. (Dec.)








% Inc. (Dec.)









%


Weather






%


Weather





2013


2012


Inc.(Dec.)


 Normal (2)


2013


2012


Inc.(Dec.)


 Normal (2)





















MCF Sales (1)



















Residential


1,860,539


1,806,252


3.0%




28,481,036


22,165,265


28.5%





General Service


1,656,619


1,634,151


1.4%




17,456,201


14,011,683


24.6%





Industrial 


944,865


804,187


17.5%




4,633,841


3,727,950


24.3%





Other Energy Sales


4,710,321


4,791,878


(1.7%)




15,598,636


16,191,419


(3.7%)





Unbilled Sales


187,000


269,000


(30.5%)




(4,728,000)


(3,641,000)


(29.9%)
























    Total Gas Sales - Duke Energy Ohio


9,359,344


9,305,468


0.6%


1.9%


61,441,714


52,455,317


17.1%


2.0%








































Average Number of Customers



















Residential


466,283


464,856


0.3%




469,384


468,470


0.2%





General Service


41,604


41,812


(0.5%)




43,301


43,462


(0.4%)





Industrial


1,586


1,604


(1.1%)




1,633


1,659


(1.6%)





Other Energy


163


169


(3.6%)




165


170


(2.9%)
























Total Average Number Gas Customers - Duke Energy Ohio


509,636


508,441


0.2%




514,483


513,761


0.1%










































Heating and Cooling Degree Days



















Actual



















Heating Degree Days


-


19


(100.0%)




2,402


1,718


39.8%





Cooling Degree Days


702


917


(23.4%)




1,048


1,384


(24.3%)
























Variance from Normal



















Heating Degree Days


(100.0%)


58.3%


n/a




4.5%


(26.0%)


n/a





Cooling Degree Days


(13.9%)


16.1%


n/a




(9.1%)


23.1%


n/a











































(1)  Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes. 






















(2)  Represents weather normal total retail calendar sales (i.e. billed and allocated unbilled sales).

 

 

 

Duke Energy Indiana


Quarterly Highlights


Supplemental Franchised Electric Information


September 2013











































Three Months Ended


Nine Months Ended





September 30,


September 30, 











% Inc. (Dec.)








% Inc. (Dec.)









%


Weather






%


Weather





2013


2012


Inc.(Dec.)


 Normal (2)


2013


2012


Inc.(Dec.)


 Normal (2)





















GWH Sales (1)



















Residential


2,312


2,629


(12.1%)




7,039


6,939


1.4%





General Service


2,301


2,389


(3.7%)




6,334


6,383


(0.8%)





Industrial


2,692


2,688


0.1%




7,789


7,872


(1.1%)





Other Energy Sales


13


13


0.0%




40


40


0.0%





Unbilled Sales


(25)


(235)


89.4%




(92)


(5)


(100.0%)
























    Total Regular Electric Sales


7,293


7,484


(2.6%)


3.1%


21,110


21,229


(0.6%)


0.6%






















Special Sales


1,454


1,439


1.0%




4,079


4,455


(8.4%)
























    Total Electric Sales - Duke Energy Indiana


8,747


8,923


(2.0%)




25,189


25,684


(1.9%)










































Average Number of Customers



















Residential


685,461


681,127


0.6%




687,332


682,547


0.7%





General Service


100,369


100,208


0.2%




100,236


100,102


0.1%





Industrial 


2,748


2,754


(0.2%)




2,729


2,737


(0.3%)





Other Energy


1,480


1,436


3.1%




1,467


1,430


2.6%
























  Total Regular Sales


790,058


785,525


0.6%




791,764


786,816


0.6%
























Special Sales


6


10


(40.0%)




7


11


(36.4%)
























Total Average Number Electric Customers - Duke Energy Indiana

790,064


785,535


0.6%




791,771


786,827


0.6%





























































Heating and Cooling Degree Days



















Actual



















Heating Degree Days


-


24


(100.0%)




2,713


1,816


49.4%





Cooling Degree Days


731


958


(23.7%)




1,059


1,478


(28.3%)
























Variance from Normal



















Heating Degree Days


(100.0%)


100.0%


n/a




8.8%


(27.9%)


n/a





Cooling Degree Days


(8.9%)


24.1%


n/a




(7.7%)


33.0%


n/a











































(1)  Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes. 






















(2)  Represents weather normal total retail calendar sales (i.e. billed and allocated unbilled sales).


 

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

Three Months Ended September 30, 2013

(Dollars in millions, except per-share amounts)































Special Items


















Adjusted Earnings


Costs to Achieve,
Progress Merger


Economic Hedges
(Mark-to-Market) *


Discontinued Operations


Total Adjustments


Reported Earnings

SEGMENT INCOME










































U.S. Franchised Electric and Gas


$

923


$

 ― 


$

 ― 


$

 ― 


$

 ― 


$

923




















International Energy



116



 ― 



 ― 



 ― 



 ― 



116
























Commercial Power



15



 ― 



12


 ― 



12



27

























Total Reportable Segment Income



1,054



 ― 



12



 ― 



12



1,066
























Other



(22)



(54)


 ― 






(54)



(76)

























Total Reportable Segment Income and Other Net Expense



1,032



(54)



12



 ― 



(42)



990

























Discontinued Operations



 ― 



 ― 



 ― 



14


14



14




















Net Income (Loss) Attributable to Duke Energy Corporation


$

1,032


$

(54)


$

12


$

14


$

(28)


$

1,004
























EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC


$

1.46


$

(0.08)


$

0.02


$

0.02


$

(0.04)


$

1.42
























EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED


$

1.46


$

(0.08)


$

0.02


$

0.02


$

(0.04)


$

1.42
























A - Net of $34 million tax benefit. $25 million recorded as an increase in Operating Revenues and $113 million recorded within Operating Expenses on the Condensed Consolidated Statements of Operations.
























B - Net of $7 million tax expense. $20 million gain recorded within Nonregulated electric, natural gas, and other (Operating Revenues) and $1 million loss recorded within Fuel used in electric generation and purchased power-nonregulated (Operating Expenses) 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

706






















Diluted

706











































* Mark-to-market adjustments reflect the impact of derivative contracts, which are used in Duke Energy's hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory treatment. The economic value of generation assets is subject to fluctuations in fair value due to market price volatility of input and output commodities (e.g. coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes of the derivative contracts from operating earnings until settlement better matches the financial impacts of the derivative contract with the portion of economic value of the underlying hedged asset. 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.

 

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

Nine Months Ended September 30, 2013

(Dollars in millions, except per-share amounts)











Special Items


















Adjusted Earnings


Costs to Achieve, Progress Merger


Nuclear Development Charges


Litigation Reserve


Crystal River Unit 3 Impairment


Economic Hedges (Mark-to-Market) *


Discontinued Operations


Total Adjustments


Reported Earnings

SEGMENT INCOME




























































U.S. Franchised Electric and Gas


$

2,169


$

 ― 


$

(57)

$

 ― 


$

(180)

$

 ― 


$

 ― 


$

(237)


$

1,932





























International Energy



300



 ― 



 ― 



 ― 



 ― 



 ― 



 ― 



 ― 



300

































Commercial Power



18



 ― 



 ― 



 ― 



 ― 



8


 ― 



8



26


































Total Reportable Segment Income



2,487



 ― 



(57)



 ― 



(180)



8



 ― 



(229)



2,258

































Other



(122)



(139)


 ― 



(31)


 ― 



 ― 






(170)



(292)


































Total Reportable Segment Income and Other Net Expense



2,365



(139)



(57)



(31)



(180)



8



 ― 



(399)



1,966


































Discontinued Operations



 ― 



 ― 



 ― 



 ― 



 ― 



 ― 



11


11



11





























Net Income (Loss) Attributable to Duke Energy Corporation


$

2,365


$

(139)


$

(57)


$

(31)


$

(180)


$

8


$

11


$

(388)


$

1,977

































EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC


$

3.35


$

(0.20)


$

(0.08)


$

(0.04)


$

(0.26)


$

0.01


$

0.01


$

(0.56)


$

2.79

































EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED


$

3.35


$

(0.20)


$

(0.08)


$

(0.04)


$

(0.26)


$

0.01


$

0.01


$

(0.56)


$

2.79

































A - Net of $86 million tax benefit. $51 million recorded as an increase in Operating Revenues, $275 million recorded within Operating Expenses and $1 million recorded within Interest expense on the Condensed Consolidated Statements of Operations.

































B - Net of $5 million tax expense. $31 million gain recorded within Nonregulated electric, natural gas, and other (Operating Revenues) and $18 million loss recorded within Fuel used in electric generation and purchased power-nonregulated (Operating Expenses) 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.

































D - Net of $30 million tax benefit. Recorded in Impairment charges (Operating Expenses) on the Condensed Consolidated Statements of Operations.

































E - Net of $19 million tax benefit. Recorded in Operations, maintenance and other (Operating Expenses) on the Condensed Consolidated Statements of Operations.

































F - Net of $115 million tax benefit. Recorded in Impairment charges (Operating Expenses) on the Condensed Consolidated Statements of Operations.

































Weighted Average Shares (reported and adjusted) - in millions



Basic

706































Diluted

706





























































* Mark-to-market adjustments reflect the impact of derivative contracts, which are used in Duke Energy's hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory treatment. The economic value of generation assets is subject to fluctuations in fair value due to market price volatility of input and output commodities (e.g. coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes of the derivative contracts from operating earnings until settlement better matches the financial impacts of the derivative contract with the portion of economic value of the underlying hedged asset. 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.

DUKE ENERGY CORPORATION
ADJUSTED TO REPORTED EARNINGS RECONCILIATION
Three Months Ended September 30, 2012
(Dollars in millions, except per-share amounts)































Special Items


















Adjusted Earnings


Costs to Achieve, Progress Merger


DNC Host

Committee

Support


Edwardsport

Impairment


Economic Hedges (Mark-to-Market) *


Discontinued Operations


Total Adjustments


Reported Earnings

SEGMENT INCOME






















































U.S. Franchised Electric and Gas


$

907


$

 ― 


$

 ― 


$

(117)

$

 ― 


$

 ― 


$

(117)


$

790


























International Energy



103



 ― 



 ― 



 ― 



 ― 



 ― 



 ― 



103






























Commercial Power



31



 ― 



 ― 



 ― 



(19)


 ― 



(19)



12































Total Reportable Segment Income



1,041



 ― 



 ― 



(117)



(19)



 ― 



(136)



905






























Other



(16)



(293)


(6)


 ― 



 ― 



 ― 



(299)



(315)































Total Reportable Segment Income and Other Net Expense



1,025



(293)



(6)



(117)



(19)



 ― 



(435)



590































Discontinued Operations



 ― 



 ― 



 ― 



 ― 



 ― 



4


4



4


























Net Income (Loss) Attributable to Duke Energy Corporation


$

1,025


$

(293)


$

(6)


$

(117)


$

(19)


$

4


$

(431)


$

594






























EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC


$

1.47


$

(0.42)


$

(0.01)


$

(0.17)


$

(0.03)


$

0.01


$

(0.62)


$

0.85






























EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED


$

1.47


$

(0.42)


$

(0.01)


$

(0.17)


$

(0.03)


$

0.01


$

(0.62)


$

0.85






























A - Net of $164 million tax benefit. $5 million recorded as an increase in Operating Revenues, $449 million recorded in Operating Expenses and $4 million recorded in Interest Expense on the Condensed Consolidated Statements of Operations.






























B - Net of $12 million tax benefit. $30 million loss recorded in Nonregulated electric, natural gas and other (Operating Revenues) and $1 million loss recorded in Fuel used in electric generation and purchased power-nonregulated (Operating Expenses) 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.






























D - Net of $4 million tax benefit. Recorded in Operation, maintenance and other (Operating Expenses) on the Condensed Consolidated Statements of Operations.






























E - Net of $63 million tax benefit. Recorded in Impairment charges (Operating Expenses) on the Condensed Consolidated Statements of Operations.






























Weighted Average Shares (reported and adjusted) - in millions



Basic

699




























Diluted

699























































* Mark-to-market adjustments reflect the impact of derivative contracts, which are used in Duke Energy's hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory treatment. The economic value of generation assets is subject to fluctuations in fair value due to market price volatility of input and output commodities (e.g. coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes of the derivative contracts from operating earnings until settlement better matches the financial impacts of the derivative contract with the portion of economic value of the underlying hedged asset. 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.

 

 

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

Nine Months Ended September 30, 2012

(Dollars in millions, except per-share amounts)











Special Items


















Adjusted Earnings


Costs to Achieve, Progress Merger


Voluntary Opportunity Plan Deferral


Edwardsport Impairment


DNC Host

Committee

Support


Economic Hedges (Mark-to-Market) *


Discontinued Operations


Total Adjustments


Reported Earnings

SEGMENT INCOME




























































U.S. Franchised Electric and Gas


$

1,588


$

 ― 


$

60

$

(385)

$

 ― 


$

 ― 


$

 ― 


$

(325)


$

1,263





























International Energy



350



 ― 



 ― 



 ― 



 ― 



 ― 



 ― 



 ― 



350

































Commercial Power



93



 ― 



 ― 



 ― 



 ― 



(22)


 ― 



(22)



71


































Total Reportable Segment Income



2,031



 ― 



60



(385)



 ― 



(22)



 ― 



(347)



1,684

































Other



(44)



(306)


 ― 



 ― 



(6)


 ― 



 ― 



(312)



(356)


































Total Reportable Segment Income and Other Net Expense



1,987



(306)



60



(385)



(6)



(22)



 ― 



(659)



1,328


































Discontinued Operations



 ― 



 ― 



 ― 



 ― 



 ― 



 ― 



5


5



5





























Net Income (Loss) Attributable to Duke Energy Corporation


$

1,987


$

(306)


$

60


$

(385)


$

(6)


$

(22)


$

5


$

(654)


$

1,333

































EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC


$

3.74


$

(0.58)


$

0.11


$

(0.72)


$

(0.01)


$

(0.04)


$

0.01


$

(1.23)


$

2.51

































EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED


$

3.74


$

(0.58)


$

0.11


$

(0.72)


$

(0.01)


$

(0.04)


$

0.01


$

(1.23)


$

2.51

































A - Net of $166 million tax benefit. $5 million recorded as an increase in Operating Revenues, $462 million recorded in Operating Expenses and $5 million recorded in Interest Expense on the Condensed Consolidated Statements of Operations.

































B - Net of $13 million tax benefit. $33 million loss recorded in Nonregulated electric, natural gas and other (Operating Revenues) and $2 million loss recorded in Fuel used in electric generation and purchased power-nonregulated (Operating Expenses) on the Condensed Consolidated Statements of Operations.

































C - Net of $39 million tax expense. $101 million revenue recorded in Operation, maintenance and other and $2 million expense recorded in Depreciation and amortization (all Operating Expenses) on the Condensed Consolidated Statements of Operations.

































D - Recorded in Income (Loss) from Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.

































E - Net of $215 million tax benefit. $580 million recorded in Impairment charges and $20 million recorded in Operation, maintenance and other (all Operating Expenses) on the Condensed Consolidated Statements of Operations.

































F - Net of $4 million tax benefit. Recorded in Operation, maintenance and other (Operations Expenses) on the Condensed Consolidated Statements of Operations.

































Weighted Average Shares (reported and adjusted) - in millions



Basic

531































Diluted

531





























































* Mark-to-market adjustments reflect the impact of derivative contracts, which are used in Duke Energy's hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory treatment. The economic value of generation assets is subject to fluctuations in fair value due to market price volatility of input and output commodities (e.g. coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes of the derivative contracts from operating earnings until settlement better matches the financial impacts of the derivative contract with the portion of economic value of the underlying hedged asset. 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.

 

 

SOURCE Duke Energy



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