Duke Energy reports 2015 adjusted EPS and introduces 2016 adjusted EPS guidance range

18 Feb, 2016, 07:00 ET from Duke Energy

CHARLOTTE, N.C., Feb. 18, 2016 /PRNewswire/ --

  • Company achieves adjusted diluted earnings per share (EPS) of $4.54 in 2015, compared to $4.55 in 2014; reported diluted EPS of $4.05 for 2015, compared to $2.66 in 2014
  • Record mild December weather results in fourth quarter 2015 adjusted diluted EPS of 87 cents, compared to 86 cents for the fourth quarter 2014; fourth quarter 2015 reported diluted EPS of 69 cents, compared to 14 cents in 2014
  • Company establishes 2016 adjusted diluted EPS guidance range of $4.50 to $4.70

Duke Energy today announced 2015 full-year adjusted diluted EPS of $4.54 compared to $4.55 in 2014. Duke Energy's full-year 2015 reported diluted EPS was $4.05, compared to $2.66 in 2014.

Full year adjusted results were driven by strong operational performance in the regulated business as well as benefits from closing certain strategic initiatives earlier than anticipated, helping offset weakness at International.

Fourth quarter 2015 adjusted diluted EPS was 87 cents, compared to 86 cents for fourth quarter 2014. Fourth quarter 2015 reported diluted EPS was 69 cents, compared to 14 cents for fourth quarter 2014.

Fourth quarter adjusted results were supported by increased retail pricing and wholesale margins in the regulated business, helping to offset the impact of record mild December weather in the Carolinas.

Reported diluted EPS includes the impact of special items, which are excluded from adjusted diluted EPS. Special items during 2015 principally included charges associated with a settlement in Indiana related to the ongoing Edwardsport IGCC regulatory proceedings, severance related to cost savings initiatives, and merger costs-to-achieve.

Special items during 2014 principally included charges related to the company's intent to repatriate $2.7 billion of foreign earnings, a settlement resolving the federal grand jury investigation into the company's coal ash basin operations, and merger costs-to-achieve.

"I am pleased with our strong execution at the regulated utilities during 2015, underpinned by exceptional operational performance," said Lynn Good, chairman, president and chief executive officer. "The dedication by our employees helped us meet growing customer peak demand as well as achieve industry-leading safety performance during the year.

"We also successfully completed several strategic transactions, increasing our focus on our core regulated and highly contracted businesses. This focus positions us for evolving customer expectations and a desire for lower carbon, more flexible generation resources while supporting greater stability in earnings and cash flows for our investors," Good said.

The company has established its 2016 adjusted diluted EPS guidance range at $4.50 to $4.70.

Business unit results

In addition to the summary business unit discussion below, comprehensive tables of quarterly and year-to-date adjusted earnings per share drivers compared to the prior year are provided on pages 17 and 18.

The discussion below of fourth-quarter and full-year results includes adjusted segment income, which is a non-GAAP financial measure. The tables on pages 27 through 30 present a reconciliation of reported results to adjusted results. Per share segment variances highlighted below exclude the benefit of the $1.5 billion accelerated stock repurchase program that was completed in June.

Regulated Utilities

Regulated Utilities recognized fourth quarter 2015 adjusted segment income of $601 million, compared to $551 million in the fourth quarter 2014, an increase of 7 cents per share. These results were driven by:

  • Increased pricing and riders (+$0.09 per share) as a result of increased riders, including a favorable Ohio energy efficiency settlement
  • Higher wholesale net margins (+$0.05 per share) due to new and updated contracts, including earnings from the long-term wholesale contract associated with the recent North Carolina Eastern Municipal Power Agency (NCEMPA) asset purchase
  • Increased weather-normal retail volumes (+$0.04 per share)

These favorable drivers were partially offset by:

  • Record breaking mild winter weather (-$0.12 per share), principally in the Carolinas and Midwest

Full-year 2015 adjusted segment income for Regulated Utilities was $2,972 million, compared to $2,897 million in 2014, an increase of 10 cents per share.

Increased year-to-date results at Regulated Utilities were primarily driven by:

  • Higher revenues from increased pricing and riders (+$0.23 per share) due to increased energy efficiency programs and fuel and purchased power cost true-ups
  • Increased wholesale net margins (+$0.16 per share) due to new and updated contracts including earnings from the long-term wholesale contract associated with the recent NCEMPA asset purchase
  • Increased weather-normal retail volumes (+$0.07 per share) of 0.6 percent compared to the prior year

These favorable drivers were partially offset by:

  • Higher O&M expense (-$0.18 per share) due to higher planned outages, increased costs related to the recent NCEMPA asset purchase and nuclear outage cost levelization. These costs were partially offset by lower storm costs
  • Higher depreciation and amortization expense (-$0.13 per share) primarily resulting from additional plant in-service, including the NCEMPA assets

International Energy

International Energy recognized fourth quarter 2015 adjusted segment income of $68 million, compared to $72 million in the fourth quarter 2014, which was flat on a per share basis. These results were driven by:

  • Lower margins at National Methanol (-$0.03 per share) due to lower MTBE and methanol prices

These unfavorable drivers were partially offset by:

  • Stronger results in Brazil (+$0.02 per share) due to lower purchased power costs partially offset by unfavorable foreign currency exchange rates

Full-year 2015 adjusted segment income for International Energy was $225 million, compared to $428 million in 2014, a decrease of 29 cents per share.

International Energy's lower year-to-date adjusted earnings were driven by:

  • Weaker results in Brazil (-$0.10 per share) primarily due to lower sales volumes and higher purchased power costs resulting from ongoing drought conditions and decreased demand in Brazil as well as unfavorable foreign currency exchange rates
  • Lower results in Central America (-$0.04 per share) primarily due to lower generation and prices from increased competition
  • Absence of a prior-year tax benefit in Chile (-$0.07 per share)
  • Lower margins at National Methanol (-$0.07 per share) largely driven by lower MTBE and methanol prices

Commercial Portfolio

Subsequent to the sale of its nonregulated Midwest Commercial Generation Business to Dynegy Inc. in April 2015, Commercial Portfolio (formerly Commercial Power) includes Duke Energy's unregulated renewable assets as well as its commercial electric and gas transmission investments.

Commercial Portfolio recognized fourth quarter 2015 adjusted segment income of $41 million, compared to $32 million in the fourth quarter 2014, an increase of 1 cent per share. The increase in Commercial Portfolio's quarterly earnings was primarily due to additional in-service wind and solar facilities in the renewables portfolio (+$0.03 per share), offset by the absence of earnings from the Midwest generation business (-$0.01 per share), which was sold in April.

Full-year 2015 adjusted segment income for Commercial Portfolio was $140 million, compared to $109 million in 2014, an increase of 4 cents per share. This increase was primarily due to higher results from the Midwest generation business (+$0.04 per share), which was sold in April, and increased earnings from the renewables portfolio due to additional in-service wind and solar facilities despite lower wind resources during the year (+$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 quarterly income tax levelization adjustments.

Other recognized a fourth quarter 2015 adjusted net expense of $108 million, compared to net expense of $45 million in the fourth quarter 2014, additional expense of 9 cents per share. Other's quarterly results were primarily driven by higher income tax expense (-$0.07 per share) due to impacts from the extension of bonus depreciation and quarterly tax levelization adjustments, including renewable tax credits which were allocated to Commercial Portfolio upon completion of the projects.  

On a year-to-date basis, Other recognized adjusted net expense of $185 million, compared to $216 million for 2014, an improvement of 5 cents per share. Other's year-to-date results were primarily driven by favorable income taxes (+$0.07 per share) due to favorable tax structuring and settlements.

On a consolidated basis, the company experienced a fourth-quarter 2015 adjusted effective tax rate of approximately 31 percent, compared to approximately 30 percent in the prior year. The company experienced an adjusted effective tax rate of approximately 32 percent for full-year 2015, consistent with the rate in 2014. Adjusted effective tax rate is a non-GAAP financial measure. The tables on pages 31 and 32 present a reconciliation of reported effective tax rate to adjusted effective tax rate.

Accelerated stock repurchase program

In connection with the transaction to sell the Midwest Generation business to Dynegy for $2.8 billion, which closed in April 2015, Duke Energy completed a $1.5 billion accelerated stock repurchase (ASR). The ASR resulted in retirements of approximately 19.8 million shares, providing a benefit to the fourth quarter 2015 and year-to-date results of approximately 2 cents per share and 9 cents per share, respectively.

Earnings Conference Call for Analysts

An earnings conference call for analysts is scheduled for 10 a.m. ET today to provide financial and 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 877-719-9786 in the United States or 719-325-4768 outside the United States. The confirmation code is 8694980. 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, Feb. 28, 2016, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 8694980. A replay and transcript also will be available by accessing the investors' section of the company's website.

Special Items and Non-GAAP Reconciliation

Special items affecting Duke Energy's adjusted diluted EPS for quarterly and full-year results in 2015 and 2014 include:

(In millions, except per-share amounts)

After-Tax

Amount

4Q2015

EPS

Impact

4Q2014

EPS

Impact

Fourth Quarter 2015




·         Cost savings initiatives

$(88)

$(0.13)


·         Costs to achieve, mergers

$(18)

$(0.03)


·         Ash basin settlement and penalties

$(7)

$(0.01)


·         Edwardsport settlement

$(2)

$--


·         Economic hedges (mark-to-market)

$(1)

$--


·         Discontinued operations

$(9)

$(0.01)


Fourth Quarter 2014




·         International tax adjustment

$(373)


$(0.53)

·         Litigation reserve

$(102)


$(0.14)

·         Costs to achieve, mergers

$(20)


$(0.03)

·         Discontinued operations (1)(2)

$(18)


$(0.02)

Total diluted EPS impact


$(0.18)

$(0.72)

(1)   Reported discontinued operations includes the Midwest generation impairment, the economic hedges (mark-to-market) of Midwest generation, and operating results of the Midwest generation business

(2)   Represents the Midwest generation operation results reported as discontinued operations of $(0.04) per diluted share, partially offset by tax benefit related to the sale but not reported as discontinued operations of $0.02 per diluted share, which are treated as a special item and reflected in adjusted diluted EPS. 

(In millions, except per-share amounts)

After-Tax

Amount

2015

EPS

Impact

2014
EPS

Impact

Full-Year 2015




·         Cost savings initiatives

$(88)

$(0.13)


·         Costs to achieve, mergers

$(60)

$(0.09)


·         Edwardsport settlement

$(58)

$(0.08)


·         Ash basin settlement and penalties

$(11)

$(0.02)


·         Discontinued operations (1)(2)

$(119)

$(0.17)


Full-Year 2014




·         International tax adjustment

$(373)


$(0.53)

·         Costs to achieve, mergers

$(127)


$(0.18)

·         Litigation reserve

$(102)


$(0.14)

·         Asset impairments

$(59)


$(0.08)

·         Economic hedges (mark-to-market)

$(6)


$(0.01)

·         Asset sales

$9


$0.01

·         Discontinued operations (1)(3)

$(677)


$(0.96)

Total diluted EPS impact


$(0.49)

$(1.89)

(1)   Reported discontinued operations includes the Midwest generation impairment, the economic hedges (mark-to-market) of Midwest generation, and operating results of the Midwest generation business

(2)   Represents reported income from discontinued operations of $0.03 per diluted share, including the impact of a litigation reserve related to the Midwest generation business, less the Midwest generation operation results reported as discontinued operations of $(0.14) per diluted share and a tax charge resulting from the completion of the sale of the Midwest generation business but not reported as discontinued operations ($0.06)

(3)   Represents reported loss from discontinued operations of $(0.80) per diluted share, the Midwest generation operation results reported as discontinued operations of $(0.16) per diluted share, and elimination entries of $(0.02) per diluted share, partially offset by tax benefit related to the sale but not reported as discontinued operations of $0.02 per diluted share, which are treated as a special item and reflected in adjusted diluted EPS. 

Reconciliation of reported to adjusted diluted EPS for the quarter:


4Q2015

EPS

4Q2014

EPS

Diluted EPS, as reported

$0.69

$0.14

Adjustments to reported EPS:



·         Diluted EPS impact of special items and discontinued operations (net of tax)

$0.18

$0.72

Diluted EPS, adjusted

$0.87

$0.86

Reconciliation of reported to adjusted diluted EPS for the year:


2015

EPS

2014

EPS

Diluted EPS, as reported

$4.05

$2.66

Adjustments to reported EPS:



·         Diluted EPS impact of special items and discontinued operations (net of tax)

$0.49

$1.89

Diluted EPS, adjusted

$4.54

$4.55

Non-GAAP financial measures

Management evaluates financial performance in part based on the non-GAAP financial measures, adjusted earnings and adjusted diluted earnings per share (EPS). These items are measured as income from continuing operations net of income (loss) attributable to non-controlling interests, adjusted for the dollar and per-share impact of mark-to-market impacts of economic hedges in the Commercial Portfolio segment and special items including the operating results of the Midwest Generation business (Disposal Group) classified as discontinued operations for GAAP purposes. 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. Operating results of the Disposal Group sold to Dynegy are reported as discontinued operations, including a portion of the mark-to-market adjustments associated with derivative contracts. Management believes that including the operating results of the Disposal Group reported as discontinued operations better reflects its financial performance and therefore has included these results in adjusted earnings and adjusted diluted EPS prior to the sale of the Disposal Group. Additionally, as a result of completing the sale of the Disposal Group during the second quarter of 2015, state income tax expense increased as state income tax apportionments changed. The additional tax expense was recognized in Continuing Operations on a GAAP basis. This impact to state income taxes has been reflected in Discontinued Operations in the Commercial Portfolio segment for adjusted diluted EPS purposes as management believes these impacts are incidental to the sale of the Disposal Group. Derivative contracts are used in Duke Energy's hedging of a portion of the economic value of its generation assets in the Commercial Portfolio segment. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately and, if associated with the Disposal Group, classified as discontinued operations, 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 the presentation of adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them an additional relevant comparison of Duke Energy's performance across periods. Management uses these non-GAAP financial measures for planning and forecasting and for reporting results to the Board of Directors, employees, shareholders, analysts and investors concerning Duke Energy's financial performance. Adjusted diluted EPS is also used as a basis for employee incentive bonuses. The most directly comparable GAAP measures for adjusted earnings and adjusted diluted EPS are Net Income Attributable to Duke Energy Corporation and Diluted EPS Attributable to Duke Energy Corporation common shareholders, which include the dollar and per share impact of special items, mark-to-market impacts of economic hedges in the Commercial Portfolio segment and discontinued operations.

Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to non-controlling interests. Segment income, as discussed below, includes intercompany revenues and expenses that are eliminated in the Consolidated Financial Statements. Management also uses adjusted segment income as a measure of historical and anticipated future segment performance. Adjusted segment income is a non-GAAP financial measure, as it is based upon segment income adjusted for the mark-to-market impacts of economic hedges in the Commercial Portfolio segment and special items, including the operating results of the Disposal Group classified as discontinued operations for GAAP purposes. Management believes the presentation of adjusted segment income as presented provides useful information to investors, as it provides them with an additional relevant comparison of a segment's performance across periods. The most directly comparable GAAP measure for adjusted segment income is segment income, which represents segment income from continuing operations, including any special items and the mark-to-market impacts of economic hedges in the Commercial Portfolio segment.

Due to the forward-looking nature of any forecasted adjusted earnings guidance, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items or mark-to-market adjustments for future periods.

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 all special items, the mark-to-market impacts of economic hedges in the Commercial Portfolio 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. Its regulated utility operations serve approximately 7.3 million electric customers located in six states in the Southeast and Midwest, representing a population of approximately 23 million people. Its Commercial Portfolio 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

Follow Duke Energy on Twitter, LinkedIn and Facebook.

Forward-Looking Information

This document 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 and can often be identified by terms and phrases that include "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "guidance," "outlook" or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors 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 extent and timing of costs and liabilities to comply with federal and state regulations related to coal ash, including amounts for the required closure of certain ash basins, are uncertain and difficult to estimate; the ability to recover eligible costs, including amounts associated with coal ash basin asset retirement obligations and future significant weather events, and earn an adequate return on investment through the regulatory process; the costs of decommissioning Crystal River Unit 3 and other nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process; credit ratings of the company or its subsidiaries may be different from what is expected; 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 variations in customer usage patterns, including energy efficiency efforts and use of alternative energy sources, including self-generation and distributed generation technologies; advancements in technology; additional competition in electric markets and continued industry consolidation; political, economic and regulatory uncertainty in Brazil and 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, earthquakes and tornadoes; the ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources; the impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, and other catastrophic events such as fires, explosions, pandemic health events or other similar occurrences; 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 prices, 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, interest rate fluctuations and general economic conditions; declines in the market prices of equity and fixed income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans, and nuclear decommissioning trust funds; construction and development risks associated with the completion of Duke Energy and its subsidiaries' capital investment projects, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules, and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner or at all; 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 prospective undistributed earnings of foreign subsidiaries or repatriate such earnings on a tax-efficient basis; the expected timing and likelihood of completion of the proposed acquisition of Piedmont Natural Gas Company, Inc. (Piedmont), including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed acquisition that could reduce anticipated benefits or cause the parties to abandon the acquisition, and under certain specified circumstance pay a termination fee of $250 million, as well as the ability to successfully integrate the businesses and realize anticipated benefits and the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; 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 described. Forward-looking statements speak only as of the date they are made; Duke Energy expressly disclaims an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Media Contact: Tom Shiel
24-Hour: 800.559.3853

Analysts: Bill Currens
Office: 704.382.1603     

December 2015

QUARTERLY HIGHLIGHTS

(Unaudited)










Three Months Ended December 31,


Year Ended December 31,

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

2015


2014


2015


2014

Earnings Per Share - Basic and Diluted








Income from continuing operations attributable to Duke Energy Corporation common stockholders








Basic

$

0.70



$

0.14



$

4.02



$

3.46


Diluted

$

0.70



$

0.14



$

4.02



$

3.46










(Loss) Income from discontinued operations attributable to Duke Energy Corporation common stockholders








Basic

$

(0.01)



$



$

0.03



$

(0.80)


Diluted

$

(0.01)



$



$

0.03



$

(0.80)










Net income attributable to Duke Energy Corporation common stockholders








Basic

$

0.69



$

0.14



$

4.05



$

2.66


Diluted

$

0.69



$

0.14



$

4.05



$

2.66










Weighted-average shares outstanding








Basic

688



707



694



707


Diluted

688



707



694



707










SEGMENT INCOME (LOSS) BY BUSINESS SEGMENT








Regulated Utilities(a)(b)

$

582



$

449



$

2,893



$

2,795


International Energy(c)

68



(301)



225



55


Commercial Portfolio(d)(e)

39



15



4



(55)


Total Reportable Segment Income

689



163



3,122



2,795


Other Net Expense(f)(g)(h)

(203)



(65)



(322)



(334)


Intercompany Eliminations



(3)



(4)



(10)


(Loss) Income from Discontinued Operations, net of tax (i)

(9)



2



20



(568)


Net Income Attributable to Duke Energy Corporation

$

477



$

97



$

2,816



$

1,883










CAPITALIZATION








Total Common Equity





48%



49%


Total Debt





52%



51%










Total Debt





$

43,202



$

42,382


Book Value Per Share





$

57.78



$

57.82


Actual Shares Outstanding





688



707










CAPITAL AND INVESTMENT EXPENDITURES








Regulated Utilities (j)

$

1,762



$

1,387



$

6,974



$

4,744


International Energy

12



27



45



67


Commercial Portfolio

374



231



1,131



555


Other

47



47



213



162


Total Capital and Investment Expenditures

$

2,195



$

1,692



$

8,363



$

5,528


















(a) Includes a charge of $58 million related to the Edwardsport settlement for the year ended December 31, 2015 (net of tax of $35 million).

(b) Includes a litigation reserve of $102 million for the three months and year ended December 31, 2014, related to the federal grand jury investigation of the February 2014 Dan River coal ash spill and ash basin operations at other North Carolina coal plants.

(c) Includes a tax adjustment of $373 million for the three months and year ended December 31, 2014, related to deferred tax impacts resulting from a dividend declaration of International Energy's historical undistributed earnings.

(d) Includes a tax charge of $41 million for the year ended December 31, 2015, resulting from the completion of the sale of the nonregulated Midwest generation business.

(e) Includes an impairment charge of $59 million for the year ended December 31, 2014, related to OVEC (net of tax of $35 million).

(f) Includes a charge of $77 million for the three months and year ended December 31, 2015, related to cost savings initiatives (net of tax of $47 million).

(g) Includes costs to achieve mergers of $18 million for the three months ended December 31, 2015 (net of tax of $12 million) and $60 million for the year ended December 31, 2015 (net of tax of $37 million).

(h) Includes costs to achieve mergers of $20 million for the three months ended December 31, 2014 (net of tax of $13 million) and $127 million for the year ended December 31, 2014 (net of tax of $78 million).

(i) Includes the impact of a settlement agreement related to the nonregulated Midwest generation business of $53 million for the year ended December 31, 2015 (net of tax of $28 million).

(j) Includes $1.25 billion related to the NCEMPA acquisition for the year ended December 31, 2015.

 

December 2015

QUARTERLY HIGHLIGHTS

(Unaudited)










Three Months Ended


Year Ended


December 31,


December 31,

(In millions, except for GWh and MW amounts)

2015


2014


2015


2014

REGULATED UTILITIES








  Operating Revenues

$

4,972



$

5,197



$

22,062



$

22,271


  Operating Expenses(a)(b)

3,909



4,219



16,698



17,026


  Gains on Sales of Other Assets, net

1



2



11



4


  Operating Income

1,064



980



5,375



5,249


  Other Income and Expenses

75



61



262



267


  Interest Expense

268



277



1,097



1,093


  Income Before Income Taxes

871



764



4,540



4,423


  Income Tax Expense(c)

289



315



1,647



1,628


  Segment Income

$

582



$

449



$

2,893



$

2,795










  Depreciation and Amortization

$

718



$

684



$

2,814



$

2,759










INTERNATIONAL ENERGY








  Operating Revenues

$

247



$

306



$

1,088



$

1,417


  Operating Expenses

166



247



805



1,007


  Gains (Losses) on Sales of Other Assets, net

7



(1)



6



6


  Operating Income

88



58



289



416


  Other Income and Expenses

32



38



101



190


  Interest Expense

19



22



85



93


  Income Before Income Taxes

101



74



305



513


  Income Tax Expense(d)

30



375



74



449


  Less: Income Attributable to Noncontrolling Interests

3





6



9


  Segment Income (Loss)

$

68



$

(301)



$

225



$

55










  Depreciation and Amortization

$

23



$

23



$

92



$

97










  Sales, GWh

5,631



4,815



19,211



18,629


  Proportional MW Capacity in Operation





4,333



4,340










COMMERCIAL PORTFOLIO








  Operating Revenues

$

87



$

60



$

301



$

255


  Operating Expenses(e)

98



86



353



441


 (Losses) Gains on Sales of Other Assets, net

(5)





1




  Operating Loss

(16)



(26)



(51)



(186)


  Other Income and Expenses

9



3



6



18


  Interest Expense

11



17



44



58


  Loss Before Income Taxes

(18)



(40)



(89)



(226)


  Income Tax Benefit(f)(g)

(57)



(55)



(92)



(171)


  Less: Loss Attributable to Noncontrolling Interests





(1)




  Segment Income (Loss)

$

39



$

15



$

4



$

(55)










  Depreciation and Amortization

$

27



$

22



$

104



$

92










  Actual Coal-fired Plant Production, GWh







867


  Actual Renewable Plant Production, GWh

1,664



1,350



5,577



5,462


  Actual Plant Production, GWh

1,664



1,350



5,577



6,329


  Net Proportional MW Capacity in Operation





1,943



1,370










OTHER








  Operating Revenues

$

45



$

26



$

123



$

105


  Operating Expenses(h)(i)(j)

205



53



382



322


  Gains on Sales of Other Assets, net

1



4



17



6


  Operating Loss

(159)



(23)



(242)



(211)


  Other Income and Expenses

12



12



20



45


  Interest Expense

108



98



393



400


  Loss Before Income Taxes

(255)



(109)



(615)



(566)


  Income Tax Benefit(k)(l)(m)

(54)



(47)



(303)



(237)


  Less: Income Attributable to Noncontrolling Interests

2



3



10



5


  Segment Net Expense

$

(203)



$

(65)



$

(322)



$

(334)










  Depreciation and Amortization

$

35



$

32



$

134



$

118










(a) Includes a pretax charge of $93 million for the year ended December 31, 2015, related to the Edwardsport settlement.

(b) Includes a litigation reserve of $102 million for the three months and year ended December 31, 2014, related to the federal grand jury investigation of the February 2014 Dan River coal ash spill and ash basin operations at other North Carolina coal plants.

(c) Includes a tax benefit of $35 million for the year ended December 31, 2015, related to the Edwardsport settlement.

(d) Includes a tax adjustment of $373 million for the three months and year ended December 31, 2014, related to deferred tax impacts resulting from a dividend declaration of International Energy's historical undistributed earnings.

(e) Includes a pretax impairment charge of $94 million for the year ended December 31, 2014, related to OVEC.

(f) Includes a tax charge of $41 million for the year ended December 31, 2015, resulting from the completion of the sale of the nonregulated Midwest generation business.

(g) Includes a tax benefit of $35 million for the year ended December 31, 2014, related to OVEC.

(h) Includes a charge of $124 million for the three months and year ended December 31, 2015, related to cost savings initiatives.

(i) Includes costs to achieve mergers of $30 million for the three months ended December 31, 2015, and $97 million for the year ended December 31, 2015.

(j) Includes costs to achieve mergers of $33 million for the three months ended December 31, 2014, and $198 million for the year ended December 31, 2014.

(k) Includes a tax benefit of $47 million for the three months and year ended December 31, 2015, related to cost savings initiatives.

(l) Includes a tax benefit related to costs to achieve mergers of $12 million for the three months ended December 31, 2015, and $37 million for the year ended December 31, 2015.

(m) Includes a tax benefit related to costs to achieve mergers of $13 million for the three months ended December 31, 2014, and $78 million for the year ended December 31, 2014.

 

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In millions, except per-share amounts)










Years Ended December 31,



2015


2014


2013

Operating Revenues







Regulated electric

$

21,379



$

21,550



$

20,329


Nonregulated electric and other


1,544



1,802



1,916


Regulated natural gas


536



573



511


Total operating revenues


23,459



23,925



22,756


Operating Expenses







Fuel used in electric generation and purchased power - regulated


7,308



7,686



7,108


Fuel used in electric generation and purchased power - nonregulated


354



533



540


Cost of natural gas


195



248



224


Operation, maintenance and other


5,871



5,856



5,673


Depreciation and amortization


3,144



3,066



2,668


Property and other taxes


1,135



1,213



1,274


Impairment charges


120



81



399


Total operating expenses


18,127



18,683



17,886


Gains (Losses) on Sales of Other Assets and Other, net


35



16



(16)


Operating Income


5,367



5,258



4,854


Other Income and Expenses







Equity in earnings of unconsolidated affiliates


69



130



122


Gains on sales of unconsolidated affiliates


7



17



100


Other income and expenses, net


307



351



262


Total other income and expenses


383



498



484


Interest Expense


1,613



1,622



1,543


Income from Continuing Operations before Income Taxes


4,137



4,134



3,795


Income Tax Expense from Continuing Operations


1,326



1,669



1,205


Income from Continuing Operations


2,811



2,465



2,590


Income (Loss) from Discontinued Operations, net of tax


20



(576)



86


Net Income


2,831



1,889



2,676


Less: Net Income Attributable to Noncontrolling Interests


15



6



11


Net Income Attributable to Duke Energy Corporation


$

2,816



$

1,883



$

2,665
















Earnings Per Share - Basic and Diluted







Income from continuing operations attributable to Duke Energy Corporation common stockholders







Basic


$

4.02



$

3.46



$

3.64


Diluted


$

4.02



$

3.46



$

3.63


Income (Loss) from discontinued operations attributable to Duke Energy Corporation common stockholders







Basic


$

0.03



$

(0.80)



$

0.13


Diluted


$

0.03



$

(0.80)



$

0.13


Net income attributable to Duke Energy Corporation common stockholders







Basic


$

4.05



$

2.66



$

3.77


Diluted


$

4.05



$

2.66



$

3.76


Weighted-average shares outstanding







Basic


694



707



706


Diluted


694



707



706


 

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)







(in million, except per-share amounts)


December 31, 2015


December 31, 2014

ASSETS





Current Assets





Cash and cash equivalents


$

857



$

2,036


Receivables (net of allowance for doubtful accounts of $18 at December 31, 2015 and $17 at December 31, 2014)


703



791


Restricted receivables of variable interest entities (net of allowance for doubtful accounts of $53 at December 31, 2015 and $51 at December 31, 2014)


1,748



1,973


Inventory


3,810



3,459


Assets held for sale




364


Regulatory assets


877



1,115


Other


327



1,837


Total current assets


8,322



11,575


Investments and Other Assets





Investments in equity method unconsolidated affiliates


499



358


Nuclear decommissioning trust funds


5,825



5,546


Goodwill


16,343



16,321


Assets held for sale




2,642


Other


3,042



3,008


Total investments and other assets


25,709



27,875


Property, Plant and Equipment





Cost


112,826



104,861


Accumulated depreciation and amortization


(37,665)



(34,824)


Generation facilities to be retired, net


548



9


Net property, plant and equipment


75,709



70,046


Regulatory Assets and Deferred Debits





Regulatory assets


11,373



11,042


Other


43



19


Total regulatory assets and deferred debits


11,416



11,061


Total Assets


$

121,156



$

120,557


LIABILITIES AND EQUITY





Current Liabilities





Accounts payable


$

2,400



$

2,271


Notes payable and commercial paper


3,633



2,514


Taxes accrued


348



569


Interest accrued


430



418


Current maturities of long-term debt


2,074



2,807


Liabilities associated with assets held for sale




262


Regulatory liabilities


400



204


Other


2,115



2,188


Total current liabilities


11,400



11,233


Long-term Debt


37,495



37,061


Deferred Credits and Other Liabilities





Deferred income taxes


12,705



13,423


Investment tax credits


472



427


Accrued pension and other post-retirement benefit costs


1,088



1,145


Liabilities associated with assets held for sale




35


Asset retirement obligations


10,264



8,466


Regulatory liabilities


6,255



6,193


Other


1,706



1,675


Total deferred credits and other liabilities


32,490



31,364


Commitments and Contingencies





Equity





Common stock, $0.001 par value, 2 billion shares authorized; 688 million and 707 million shares outstanding at December 31, 2015 and December 31, 2014, respectively


1



1


Additional paid-in capital


37,968



39,405


Retained earnings


2,564



2,012


Accumulated other comprehensive loss


(806)



(543)


Total Duke Energy Corporation stockholder's equity


39,727



40,875


Noncontrolling interests


44



24


Total equity


39,771



40,899


Total Liabilities and Equity


$

121,156



$

120,557


 

 

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In millions)








Years Ended December 31,



2015


2014

CASH FLOWS FROM OPERATING ACTIVITIES





Net Income


$

2,831



$

1,889


Adjustments to reconcile net income to net cash provided by operating activities


3,845



4,697


Net cash provided by operating activities


6,676



6,586







CASH FLOWS FROM INVESTING ACTIVITIES





Net cash used in investing activities


(5,277)



(5,373)







CASH FLOWS FROM FINANCING ACTIVITIES





Net cash used in financing activities


(2,578)



(678)







Net (decrease) increase in cash and cash equivalents


(1,179)



535


Cash and cash equivalents at the beginning of period


2,036



1,501


Cash and cash equivalents at end of period


$

857



$

2,036


 

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

December 2015 QTD vs. Prior Year












($ per share)

Regulated

Utilities


International

Energy


Commercial

Portfolio


Other


Consolidated

2014 QTD Reported Earnings Per Share, Diluted

$

0.64



$

(0.43)



$

0.03



$

(0.10)



$

0.14


Costs to Achieve, Mergers







0.03



0.03


Midwest Generation Operations (offset in Discontinued Operations)





0.04





0.04


Litigation Reserve

0.14









0.14


International Tax Adjustment



0.53







0.53


Discontinued Operations





(0.02)





(0.02)


2014 QTD Adjusted Earnings Per Share, Diluted

$

0.78



$

0.10



$

0.05



$

(0.07)



$

0.86


Stock Repurchase (a)

0.02









0.02


Weather

(0.12)









(0.12)


Pricing and Riders (b)

0.09









0.09


Volumes

0.04









0.04


Wholesale (c)

0.05









0.05


Operation and Maintenance, net of recoverables

0.01









0.01


Latin America, including Foreign Exchange Rates (e)



0.02







0.02


National Methanol Company



(0.03)







(0.03)


Duke Energy Renewables (f)





0.03





0.03


Midwest Generation (g)





(0.01)





(0.01)


Interest Expense

0.01









0.01


Change in effective tax rates

0.04







(0.07)



(0.03)


Other (h)

(0.05)



0.01



(0.01)



(0.02)



(0.07)


2015 QTD Adjusted Earnings Per Share, Diluted

$

0.87



$

0.10



$

0.06



$

(0.16)



0.87


Costs to Achieve, Mergers







(0.03)



(0.03)


Cost Savings Initiatives

(0.02)







(0.11)



(0.13)


Ash Basin Settlement and Penalties

(0.01)









(0.01)


Discontinued Operations









(0.01)


2015 QTD Reported Earnings Per Share, Diluted

$

0.84



$

0.10



$

0.06



$

(0.30)



$

0.69














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) Due to the decrease in common shares outstanding as a result of stock repurchased and retired under the Accelerated Stock Repurchase Program. Weighted-average diluted shares outstanding decreased from 707 million shares for the three months ended December 31, 2014, to 688 million shares for the three months ended December 31, 2015.

(b) Primarily due to higher energy efficiency and other rider recoveries across jurisdictions (+$0.03), equity return on the NCEMPA rider (+$0.02) and fuel and purchased power cost true-ups (+$0.02).

(c) Primarily due to the implementation of new contracts, including the new 30-year contract with NCEMPA.

(d) Primarily due to lower spending for fossil generation, partially offset by increased costs related to the NCEMPA asset purchase.

(e) Primarily due to higher results in Brazil (+$0.04) due to lower purchased power costs and higher results in Ecuador (+$0.01), partially offset by changes in foreign currency exchange rates (-$0.02).

(f) Primarily due to tax credits generated by the completion of solar and wind facilities.

(g) Due to the sale of the nonregulated Midwest generation business.

(h) Amount for Regulated Utilities includes increased depreciation and amortization expense (-$0.05) due to higher depreciable base.

 

DUKE ENERGY CORPORATION

EARNINGS VARIANCES

December 2015 YTD vs. Prior Year












($ per share)

Regulated

Utilities


International

Energy


Commercial

Portfolio


Other


Consolidated

2014 YTD Reported Earnings Per Share, Diluted

$

3.96



$

0.08



$

(0.07)



$

(0.49)



$

2.66


Asset Sales







(0.01)



(0.01)


Costs to Achieve, Mergers







0.18



0.18


Midwest Generation Operations (offset in Discontinued Operations)





0.16





0.16


Asset Impairment





0.08





0.08


Economic Hedges (Mark-to-Market)





0.01





0.01


Litigation Reserve

0.14









0.14


International Tax Adjustment



0.53







0.53


Discontinued Operations





(0.02)





0.80


2014 YTD Adjusted Earnings Per Share, Diluted

$

4.10



$

0.61



$

0.16



$

(0.32)



$

4.55


Stock Repurchase (a)

0.08



0.01







0.09


Weather










Pricing and Riders (b)

0.23









0.23


Volumes

0.07









0.07


Wholesale (c)

0.16









0.16


Operation and Maintenance, net of recoverables (d)

(0.18)









(0.18)


Latin America, including Foreign Exchange Rates (e)



(0.22)







(0.22)


National Methanol Company



(0.07)







(0.07)


Duke Energy Renewables (f)





0.01





0.01


Midwest Generation (g)





0.04





0.04


Interest Expense







0.01



0.01


Change in effective tax rates

(0.04)







0.07



0.03


Other (h)

(0.14)





(0.01)



(0.03)



(0.18)


2015 YTD Adjusted Earnings Per Share, Diluted

$

4.28



$

0.33



$

0.20



$

(0.27)



4.54


Edwardsport Settlement

(0.08)









(0.08)


Costs to Achieve, Mergers







(0.09)



(0.09)


Ash Basin Settlement and Penalties

(0.02)









(0.02)


Midwest Generation Operations (offset in Discontinued Operations)





(0.14)





(0.14)


Cost Savings Initiatives

(0.01)







(0.12)



(0.13)


Discontinued Operations





(0.06)





(0.03)


2015 YTD Reported Earnings Per Share, Diluted

$

4.17



$

0.33



$



$

(0.48)



$

4.05














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) Due to the decrease in common shares outstanding as a result of stock repurchased and retired under the Accelerated Stock Repurchase Program. Weighted-average diluted shares outstanding decreased from 707 million shares for the year ended December 31, 2014, to 694 million shares for the year ended December 31, 2015.

(b) Primarily due to fuel and purchased power cost true-ups (+$0.09), higher energy efficiency and other rider recoveries in most jurisdictions (+$0.05) and the recognition of equity returns on the NCEMPA purchase (+$0.02).

(c) Primarily due to the implementation of new contracts, including the new 30-year contract with NCEMPA.

(d) Primarily due to an increase in nuclear outage cost levelization, additional costs related to the NCEMPA asset purchase and higher planned fossil generation outage costs, partially offset by lower storm costs.

(e) Primarily due to a prior-year tax benefit related to the reorganization of the company's operations in Chile (-$0.07), changes in foreign currency exchange rates (-$0.05), lower results in Brazil due to unfavorable hydrology (-$0.05) and lower results in Central America (-$0.04) due to lower generation and prices from increased competition.

(f) Primarily due to tax credits generated by the completion of solar and wind facilities, partially offset by lower wind resources.

(g) Primarily due to higher capacity revenues, improved generation margins and the suspension of depreciation as a result of held for sale status prior to the sale of the nonregulated Midwest generation business.

(h) Amount for Regulated Utilities includes increased depreciation and amortization expense (-$0.13) due to higher depreciable base and an impairment of the Crystal River Unit 3 regulatory asset (-$0.02), partially offset by higher AFUDC-equity (+$0.04).

 

Regulated Utilities

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

December 2015




















Three Months Ended December 31


Year Ended December 31



2015


2014


%

Inc.(Dec.)


% Inc.(Dec.)

Weather

Normal (2)


2015


2014


%

Inc.(Dec.)


% Inc.(Dec.)

Weather

Normal (2)

GWH Sales (1)

















Residential

17,198



18,284



(5.9%)



1.5%



83,393



83,348



0.1%



0.5%



General Service

18,243



18,274



(0.2%)



0.9%



77,367



76,640



0.9%



0.5%



Industrial

12,827



12,799



0.2%



2.1%



52,197



51,772



0.8%



1.0%



Other Energy Sales

147



154



(4.5%)





597



609



(2.0%)





Unbilled Sales

113



416



(72.8%)



n/a



(363)



(504)



28.0%



n/a



Total Retail Sales

48,528



49,927



(2.8%)



1.4%



213,191



211,865



0.6%



0.6%



Special Sales

9,524



8,344



14.1%





38,075



35,522



7.2%





Total Consolidated Electric Sales - Regulated Utilities

58,052



58,271



(0.4%)





251,266



247,387



1.6%





















Average Number of Customers (Electric)

















Residential

6,394,280



6,314,356



1.3%





6,362,549



6,281,841



1.3%





General Service

955,880



946,153



1.0%





952,483



942,919



1.0%





Industrial

17,983



18,252



(1.5%)





18,107



18,299



(1.0%)





Other Energy Sales

23,119



22,896



1.0%





23,049



22,658



1.7%





Total Regular Sales

7,391,262



7,301,657



1.2%





7,356,188



7,265,717



1.2%





Special Sales

63



61



3.3%





63



62



1.6%





Total Average Number of Customers - Regulated Utilities

7,391,325



7,301,718



1.2%





7,356,251



7,265,779



1.2%





















Sources of Electric Energy (GWh)

















Generated - Net Output (3)

















Coal

13,915



17,867



(22.1)%





76,348



87,148



(12.4)%





Nuclear

18,541



16,570



11.9%





71,121



67,809



4.9%





Hydro

996



453



119.9%





2,021



2,154



(6.2)%





Oil and Natural Gas

14,616



11,370



28.5%





60,670



49,430



22.7%





Renewable Energy

3



2



50.0%





13



13



—%





Total Generation (4)

48,071



46,262



3.9





210,173



206,554



1.8%





Purchased Power and Net Interchange (5)(7)

11,763



14,902



(21.1)%





52,845



53,550



(1.3)%





Total Sources of Energy

59,834



61,164



(2.2)%





263,018



260,104



1.1%





Less: Line Loss and Company Usage (7)

1,782



2,893



(38.4)%





11,752



12,717



(7.6)%





Total GWh Sources

58,052



58,271



(0.4)%





251,266



247,387



1.6%





















Owned MW Capacity (3)

















Summer









50,216



49,600







Winter









53,484



53,191






Nuclear Capacity Factor (%) (6)









94



93









































(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 unbilled sales).



















(3)  Statistics reflect Duke Energy's ownership share of jointly owned stations.



















(4)  Generation by source is reported net of auxiliary power.



















(5)  Purchased power includes renewable energy purchases.



















(6)  Statistics reflect 100% of jointly owned stations.



















(7)  2014 amounts have been updated to include Duke Energy Ohio's auction purchases from PJM within Purchased Power and Net Interchange and the associated line loss in Line Loss and Company Usage.

 

Regulated Utilities

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

December 2015




















Three Months Ended December 31




Year Ended December 31





2015


2014


%

Inc.(Dec.)




2015


2014


%

Inc.(Dec.)



Heating and Cooling Degree Days

















Carolinas - Actual

















Heating Degree Days

731



1,229



(40.5%)





2,788



3,364



(17.1%)





Cooling Degree Days

44



56



(21.4%)





1,788



1,591



12.4%






















Variance from Normal

















Heating Degree Days

(37.7%)



4.8%



n/a





(7.7%)



11.2%



n/a





Cooling Degree Days

(13.7%)



14.6%



n/a





7.0%



(4.2%)



n/a






















Midwest - Actual

















Heating Degree Days

1,402



2,064



(32.1%)





4,925



5,893



(16.4%)





Cooling Degree Days

11



10



10.0%





1,093



928



17.8%






















Variance from Normal

















Heating Degree Days

(25.9%)



10.8%



n/a





(1.3%)



18.2%



n/a





Cooling Degree Days

(50.0%)



(52.4%)



n/a





(9.3%)



(21.4%)



n/a






















Florida - Actual

















Heating Degree Days

27



233



(88.4%)





400



651



(38.6%)





Cooling Degree Days

765



409



87.0%





3,742



3,111



20.3%






















Variance from Normal

















Heating Degree Days

(86.2%)



9.9%



n/a





(32.6%)



3.7%



n/a





Cooling Degree Days

65.2%



(9.7%)



n/a





17.0%



(2.5%)



n/a








































































 

Duke Energy Carolinas

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

December 2015




















Three Months Ended December 31


Year Ended December 31



2015


2014


%

Inc.(Dec.)


% Inc.(Dec.)

Weather

Normal (2)


2015


2014


%

Inc.(Dec.)


% Inc.(Dec.)

Weather

Normal (2)

GWH Sales (1)

















Residential

5,471



6,039



(9.4%)





27,916



27,976



(0.2%)





General Service

6,626



6,736



(1.6%)





28,700



28,421



1.0%





Industrial

5,406



5,347



1.1%





22,136



21,577



2.6%





Other Energy Sales

76



77



(1.3%)





305



303



0.7%





Unbilled Sales

579



168



244.6%





(114)



(324)



64.8%





Total Regular Electric Sales

18,158



18,367



(1.1%)



4.6%



78,943



77,953



1.3%



1.4%



Special Sales

1,706



1,928



(11.5%)





8,432



9,692



(13.0%)





Total Consolidated Electric Sales - Duke Energy Carolinas

19,864



20,295



(2.1%)





87,375



87,645



(0.3%)





















Average Number of Customers

















Residential

2,128,724



2,100,086



1.4%





2,117,482



2,089,299



1.3%





General Service

346,378



342,725



1.1%





345,119



341,616



1.0%





Industrial

6,337



6,505



(2.6%)





6,417



6,519



(1.6%)





Other Energy Sales

15,123



14,921



1.4%





15,041



14,693



2.4%





Total Regular Sales

2,496,562



2,464,237



1.3%





2,484,059



2,452,127



1.3%





Special Sales

24



26



(7.7%)





25



26



(3.8%)





Total Average Number of Customers - Duke Energy Carolinas

2,496,586



2,464,263



1.3%





2,484,084



2,452,153



1.3%





















Sources of Electric Energy (GWh)

















Generated - Net Output (3)

















Coal

3,769



5,912



(36.2%)





25,896



31,596



(18.0%)





Nuclear

10,903



9,671



12.7%





45,013



42,381



6.2%





Hydro

700



246



184.6%





1,136



1,185



(4.1%)





Oil and Natural Gas

2,659



1,849



43.8%





10,595



7,878



34.5%





Renewable Energy

3



2



50.0%





13



13



—%





Total Generation (4)

18,034



17,680



2.0%





82,653



83,053



(0.5%)





Purchased Power and Net Interchange (5)

2,182



3,718



(41.3%)





9,170



9,602



(4.5%)





Total Sources of Energy

20,216



21,398



(5.5%)





91,823



92,655



(0.9%)





Less: Line Loss and Company Usage

352



1,103



(68.1%)





4,448



5,010



(11.2%)





Total GWh Sources

19,864



20,295



(2.1%)





87,375



87,645



(0.3%)





















Owned MW Capacity (3)

















Summer









19,645



19,589







Winter









20,360



20,550






Nuclear Capacity Factor (%) (6)









96



92























Heating and Cooling Degree Days

















Actual

















Heating Degree Days

813



1,282



(36.6%)





2,922



3,517



(16.9%)





Cooling Degree Days

22



44



(50.0%)





1,731



1,485



16.6%






















Variance from Normal

















Heating Degree Days

(34.2%)



3.9%



n/a





(7.6%)



11.3%



n/a





Cooling Degree Days

(46.3%)



15.8%



n/a





8.4%



(6.1%)



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 unbilled sales).



















(3)  Statistics reflect Duke Energy's ownership share of jointly owned stations.



















(4)  Generation by source is reported net of auxiliary power.



















(5)  Purchased power includes renewable energy purchases.



















(6)  Statistics reflect 100% of jointly owned stations.

 

Duke Energy Progress

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

December 2015




















Three Months Ended December 31


Year Ended December 31



2015


2014


%

Inc.(Dec.)


% Inc.(Dec.)

Weather

Normal (2)


2015


2014


%

Inc.(Dec.)


% Inc.(Dec.)

Weather

Normal (2)

GWH Sales (1)

















Residential

3,407



3,926



(13.2%)





17,954



18,201



(1.4%)





General Service

3,529



3,618



(2.5%)





15,529



15,385



0.9%





Industrial

2,498



2,505



(0.3%)





10,288



10,321



(0.3%)





Other Energy Sales

25



29



(13.8%)





106



117



(9.4%)





Unbilled Sales

50



359



(86.1%)





(302)



41



(836.6%)





Total Regular Electric Sales

9,509



10,437



(8.9%)



0.7%

%


43,575



44,065



(1.1%)



0.1%



Special Sales

5,372



5,040



6.6%





21,306



18,806



13.3%





Total Consolidated Electric Sales - Duke Energy Progress

14,881



15,477



(3.9%)





64,881



62,871



3.2%





















Average Number of Customers

















Residential

1,280,852



1,264,131



1.3%





1,274,550



1,257,007



1.4%





General Service

227,233



224,209



1.3%





226,099



223,287



1.3%





Industrial

4,174



4,253



(1.9%)





4,209



4,272



(1.5%)





Other Energy Sales

1,648



1,696



(2.8%)





1,677



1,721



(2.6%)





Total Regular Sales

1,513,907



1,494,289



1.3%





1,506,535



1,486,287



1.4%





Special Sales

15



15



—%





15



15



—%





Total Average Number of Customers - Duke Energy Progress

1,513,922



1,494,304



1.3%





1,506,550



1,486,302



1.4%





















Sources of Electric Energy (GWh)

















Generated - Net Output (3)

















Coal

1,506



3,808



(60.5%)





12,960



15,882



(18.4%)





Nuclear

7,638



6,899



10.7%





26,108



25,428



2.7%





Hydro

193



109



77.1%





582



669



(13.0%)





Oil and Natural Gas

5,020



4,226



18.8%





22,203



17,591



26.2%





Total Generation (4)

14,357



15,042



(4.6%)





61,853



59,570



3.8%





Purchased Power and Net Interchange (5)

1,022



1,115



(8.3%)





5,649



5,956



(5.2%)





Total Sources of Energy

15,379



16,157



(4.8%)





67,502



65,526



3.0%





Less: Line Loss and Company Usage

498



680



(26.8%)





2,621



2,655



(1.3%)





Total GWh Sources

14,881



15,477



(3.9%)





64,881



62,871



3.2%





















Owned MW Capacity (3)

















Summer









12,915



12,221







Winter









14,019



13,334






Nuclear Capacity Factor (%) (6)









91



95























Heating and Cooling Degree Days

















Actual

















Heating Degree Days

650



1,176



(44.7%)





2,654



3,210



(17.3%)





Cooling Degree Days

65



67



(3.0%)





1,844



1,696



8.7%






















Variance from Normal

















Heating Degree Days

(41.5%)



5.7%



n/a





(7.8%)



11.2%



n/a





Cooling Degree Days

4.8%



11.9%



n/a





5.8%



(2.3%)



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 unbilled sales).



















(3)  Statistics reflect Duke Energy's ownership share of jointly owned stations.



















(4)  Generation by source is reported net of auxiliary power.



















(5)  Purchased power includes renewable energy purchases.



















(6)  Statistics reflect 100% of jointly owned stations.

 

Duke Energy Florida

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

December 2015




















Three Months Ended December 31


Year Ended December 31



2015


2014


%

Inc.(Dec.)


% Inc.(Dec.)

Weather

Normal (2)


2015


2014


%

Inc.(Dec.)


% Inc.(Dec.)

Weather

Normal (2)

GWH Sales (1)

















Residential

4,732



4,349



8.8%





19,932



19,003



4.9%





General Service

3,903



3,675



6.2%





15,304



14,945



2.4%





Industrial

851



823



3.4%





3,293



3,267



0.8%





Other Energy Sales

6



7



(14.3%)





24



25



(4.0%)





Unbilled Sales

(463)



(427)



(8.4%)





104



34



205.9%





Total Regular Electric Sales

9,029



8,427



7.1%



3.3%



38,657



37,274



3.7%



1.6%



Special Sales

236



225



4.9%





1,396



1,429



(2.3%)





Total Electric Sales - Duke Energy Florida

9,265



8,652



7.1%





40,053



38,703



3.5%





















Average Number of Customers

















Residential

1,533,247



1,510,309



1.5%





1,524,320



1,500,729



1.6%





General Service

194,265



191,876



1.2%





193,437



191,142



1.2%





Industrial

2,227



2,261



(1.5%)





2,244



2,275



(1.4%)





Other Energy Sales

1,534



1,547



(0.8%)





1,537



1,551



(0.9%)





Total Regular Sales

1,731,273



1,705,993



1.5%





1,721,538



1,695,697



1.5%





Special Sales

14



12



16.7%





14



14



—%





Total Average Number of Customers - Duke Energy Florida

1,731,287



1,706,005



1.5%





1,721,552



1,695,711



1.5%





















Sources of Electric Energy (GWh)

















Generated - Net Output (3)

















Coal

1,612



2,517



(36.0%)





9,718



11,729



(17.1%)





Oil and Natural Gas

6,135



5,017



22.3%





25,263



23,030



9.7%





Total Generation (4)

7,747



7,534



2.8%





34,981



34,759



0.6%





Purchased Power and Net Interchange (5)

1,937



1,544



25.5%





7,217



6,133



17.7%





Total Sources of Energy

9,684



9,078



6.7%





42,198



40,892



3.2%





Less: Line Loss and Company Usage

419



426



(1.6%)





2,145



2,189



(2.0%)





Total GWh Sources

9,265



8,652



7.1%





40,053



38,703



3.5%





















Owned MW Capacity (3)

















Summer









9,101



9,072







Winter









10,070



10,109























Heating and Cooling Degree Days

















Actual

















Heating Degree Days

27



233



(88.4%)





400



651



(38.6%)





Cooling Degree Days

765



409



87.0%





3,742



3,111



20.3%






















Variance from Normal

















Heating Degree Days

(86.2%)



9.9%



n/a





(32.6%)



3.7%



n/a





Cooling Degree Days

65.2%



(9.7%)



n/a





17.0%



(2.5%)



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 unbilled sales).



















(3)  Statistics reflect Duke Energy's ownership share of jointly owned stations.



















(4)  Generation by source is reported net of auxiliary power.



















(5)  Purchased power includes renewable energy purchases.

 

Duke Energy Ohio

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

December 2015




















Three Months Ended December 31


Year Ended December 31



2015


2014


%

Inc.(Dec.)


% Inc.(Dec.)

Weather

Normal (2)


2015


2014


%

Inc.(Dec.)


% Inc.(Dec.)

Weather

Normal (2)

GWH Sales (1)

















Residential

1,747



1,907



(8.4%)





8,638



8,831



(2.2%)





General Service

2,231



2,253



(1.0%)





9,512



9,526



(0.1%)





Industrial

1,481



1,462



1.3%





5,988



5,963



0.4%





Other Energy Sales

27



27



—%





109



111



(1.8%)





Unbilled Sales

(44)



160



(127.5%)





(52)



(82)



36.6%





Total Regular Electric Sales

5,442



5,809



(6.3%)



(1.3%)



24,195



24,349



(0.6%)



(0.3%)



Special Sales

299



158



89.2%





1,244



386



222.3%





Total Electric Sales - Duke Energy Ohio

5,741



5,967



(3.8%)





25,439



24,735



2.8%





















Average Number of Customers

















Residential

748,478



743,251



0.7%





746,757



741,800



0.7%





General Service

87,298



86,881



0.5%





87,227



86,522



0.8%





Industrial

2,530



2,534



(0.2%)





2,530



2,525



0.2%





Other Energy Sales

3,231



3,191



1.3%





3,220



3,179



1.3%





Total Regular Sales

841,537



835,857



0.7%





839,734



834,026



0.7%





Special Sales

1



1



—%





1



1



—%





Total Average Number of Customers - Duke Energy Ohio

841,538



835,858



0.7%





839,735



834,027



0.7%





















Sources of Electric Energy (GWh)

















Generated - Net Output (3)

















Coal

949



1,080



(12.1%)





4,402



3,041



44.8%





Oil and Natural Gas

10





100.0%





53



16



231.3%





Total Generation (4)

959



1,080



(11.2%)





4,455



3,057



45.7%





Purchased Power and Net Interchange (5)(6)

4,934



5,269



(6.4%)





22,280



23,355



(4.6%)





Total Sources of Energy

5,893



6,349



(7.2%)





26,735



26,412



1.2%





Less: Line Loss and Company Usage (6)

152



382



(60.2%)





1,296



1,677



(22.7%)





Total GWh Sources

5,741



5,967



(3.8%)





25,439



24,735



2.8%





















Owned MW Capacity (3)

















Summer









1,062



1,225







Winter









1,164



1,327























Heating and Cooling Degree Days

















Actual

















Heating Degree Days

1,316



1,927



(31.7%)





4,647



5,455



(14.8%)





Cooling Degree Days

15



13



15.4%





1,109



1,024



8.3%






















Variance from Normal

















Heating Degree Days

(28.0%)



6.6%



n/a





(3.6%)



13.1%



n/a





Cooling Degree Days

(31.8%)



(35.0%)



n/a





(7.9%)



(13.1%)



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 unbilled sales).



















(3)  Statistics reflect Duke Energy's ownership share of jointly owned stations.



















(4)  Generation by source is reported net of auxiliary power.



















(5)  Purchased power includes renewable energy purchases.



















(6)  2014 amounts have been updated to include Duke Energy Ohio's auction purchases from PJM within Purchased Power and Net Interchange and the associated line loss in Line Loss and Company Usage.

 

Duke Energy Ohio

Quarterly Highlights

Supplemental Regulated Utilities Gas Information

December 2015




















Three Months Ended December 31


Year Ended December 31



2015


2014


%

Inc.(Dec.)


% Inc.(Dec.)

Weather

Normal (2)


2015


2014


%

Inc.(Dec.)


% Inc.(Dec.)

Weather

Normal (2)

MCF Sales (1)

















Residential

6,285,290



9,686,129



(35.1%)





35,272,072



41,040,532



(14.1%)





General Service

4,356,384



6,205,202



(29.8%)





22,820,237



25,541,023



(10.7%)





Industrial

1,557,468



1,953,376



(20.3%)





7,161,750



7,379,010



(2.9%)





Other Energy Sales

4,843,752



5,430,602



(10.8%)





20,037,755



21,047,330



(4.8%)





Unbilled Sales

2,453,000



3,295,000



(25.6%)





(768,000)



(1,732,000)



55.7%





Total Gas Sales - Duke Energy Ohio

19,495,894



26,570,309



(26.6%)



(6.9%)



84,523,814



93,275,895



(9.4%)



(2.4%)




































Average Number of Customers

















Residential

475,254



473,956



0.3%





474,842



472,940



0.4%





General Service

43,378



43,648



(0.6%)





43,253



43,446



(0.4%)





Industrial

1,627



1,631



(0.2%)





1,619



1,629



(0.6%)





Other Energy Sales

142



145



(2.1%)





142



152



(6.6%)





Total Average Number of Gas Customers - Duke Energy Ohio

520,401



519,380



0.2%





519,856



518,167



0.3%























































Heating and Cooling Degree Days

















Actual

















Heating Degree Days

1,316



1,927



(31.7%)





4,647



5,455



(14.8%)





Cooling Degree Days

15



13



15.4%





1,109



1,024



8.3%






















Variance from Normal

















Heating Degree Days

(28.0%)



6.6%



n/a





(3.6%)



13.1%



n/a





Cooling Degree Days

(31.8%)



(35.0%)



n/a





(7.9%)



(13.1%)



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 unbilled sales).



































 

Duke Energy Indiana

Quarterly Highlights

Supplemental Regulated Utilities Electric Information

December 2015




















Three Months Ended December 31


Year Ended December 31



2015


2014


%

Inc.(Dec.)


% Inc.(Dec.)

Weather

Normal (2)


2015


2014


%

Inc.(Dec.)


% Inc.(Dec.)

Weather

Normal (2)

GWH Sales (1)

















Residential

1,841



2,063



(10.8%)





8,953



9,337



(4.1%)





General Service

1,954



1,992



(1.9%)





8,322



8,363



(0.5%)





Industrial

2,591



2,662



(2.7%)





10,492



10,644



(1.4%)





Other Energy Sales

13



14



(7.1%)





53



53



—%





Unbilled Sales

(9)



156



(105.8%)





1



(173)



100.6%





Total Regular Electric Sales

6,390



6,887



(7.2%)



(4.2%)



27,821



28,224



(1.4%)



(1.1%)



Special Sales

1,911



993



92.4%





5,697



5,209



9.4%





Total Electric Sales - Duke Energy Indiana

8,301



7,880



5.3%





33,518



33,433



0.3%





















Average Number of Customers

















Residential

702,979



696,579



0.9%





699,440



693,006



0.9%





General Service

100,706



100,462



0.2%





100,601



100,352



0.2%





Industrial

2,715



2,699



0.6%





2,707



2,708



—%





Other Energy Sales

1,583



1,541



2.7%





1,574



1,514



4.0%





Total Regular Sales

807,983



801,281



0.8%





804,322



797,580



0.8%





Special Sales

9



7



28.6%





8



6



33.3%





Total Average Number of Customers - Duke Energy Indiana

807,992



801,288



0.8%





804,330



797,586



0.8%





















Sources of Electric Energy (GWh)

















Generated - Net Output (3)

















Coal

6,079



4,550



33.6%





23,372



24,900



(6.1%)





Hydro

103



98



5.1%





303



300



1.0%





Oil and Natural Gas

792



278



184.9%





2,556



915



179.3%





Total Generation (4)

6,974



4,926



41.6%





26,231



26,115



0.4%





Purchased Power and Net Interchange (5)

1,688



3,256



(48.2%)





8,529



8,504



0.3%





Total Sources of Energy

8,662



8,182



5.9%





34,760



34,619



0.4%





Less: Line Loss and Company Usage

361



302



19.5%





1,242



1,186



4.7%





Total GWh Sources

8,301



7,880



5.3%





33,518



33,433



0.3%





















Owned MW Capacity (3)

















Summer









7,493



7,493







Winter









7,871



7,871























Heating and Cooling Degree Days

















Actual

















Heating Degree Days

1,487



2,200



(32.4%)





5,202



6,330



(17.8%)





Cooling Degree Days

6



7



(14.3%)





1,076



832



29.3%






















Variance from Normal

















Heating Degree Days

(24.0%)



14.7%



n/a





0.8%



23.1%



n/a





Cooling Degree Days

(73.9%)



(66.7%)



n/a





(10.7%)



(29.7%)



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 unbilled sales).



















(3)  Statistics reflect Duke Energy's ownership share of jointly owned stations.



















(4)  Generation by source is reported net of auxiliary power.



















(5)  Purchased power includes renewable energy purchases.

 

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

Three Months Ended December 31, 2015

(Dollars in millions, except per-share amounts)





Special Items










Adjusted Earnings


Costs to Achieve, Mergers


Edwardsport Settlement


Cost Savings Initiatives


Ash Basin Settlement and Penalties


Economic Hedges (Mark-to-Market)


Discontinued Operations


Total Adjustments


Reported Earnings

SEGMENT INCOME






































Regulated Utilities


$

601



$



$

(2)


B

$

(10)


C

$

(7)


F

$



$



$

(19)



$

582





















International Energy


68

















68





















Commercial Portfolio


41







(1)


D



(1)


G



(2)



39





















Total Reportable Segment Income


710





(2)



(11)



(7)



(1)





(21)



689





















Other


(108)



(18)


A



(77)


E







(95)



(203)





















Total Reportable Segment Income and Other Net Expense


602



(18)



(2)



(88)



(7)



(1)





(116)



486





















Discontinued Operations














(9)


H

(9)



(9)





















Net Income Attributable to Duke Energy Corporation


$

602



$

(18)



$

(2)



$

(88)



$

(7)



$

(1)



$

(9)



$

(125)



$

477





















EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC


$

0.87



$

(0.03)



$



$

(0.13)



$

(0.01)



$



$

(0.01)



$

(0.18)



$

0.69





















EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED


$

0.87



$

(0.03)



$



$

(0.13)



$

(0.01)



$



$

(0.01)



$

(0.18)



$

0.69





















A - Net of $12 million tax benefit. Recorded within Operating Expenses on the Consolidated Statements of Operations.

B - Net of $1 million tax benefit. $3 million recorded within Impairment charges on the Duke Energy Indiana Consolidated Statements of Operations.

C - Net of $6 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations. Includes $7 million at Duke Energy Carolinas, $4 million at Duke Energy Progress, $2 million at Duke Energy Florida, $1 million at Duke Energy Ohio and $2 million at Duke Energy Indiana.

D - Net of $1 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations.

E - Net of $47 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations.

F - Recorded within Operation, maintenance and other on the Duke Energy Carolinas Consolidated Statements of Operations.

G - Recorded within Operating Revenues on the Consolidated Statements of Operations.

H - Recorded in Income (Loss) From Discontinued Operations, net of tax on the Consolidated Statements of Operations.


Weighted Average Shares (reported and adjusted) - in millions


        Basic                                        688


        Diluted                                     688

 

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

Twelve Months Ended December 31, 2015

(Dollars in millions, except per-share amounts)






Special Items









Adjusted Earnings


Costs to Achieve, Mergers


Edwardsport Settlement


Midwest Generation Operations


Ash Basin Settlement and Penalties


Cost Savings Initiatives


Discontinued Operations


Total Adjustments


Reported Earnings

SEGMENT INCOME






































Regulated Utilities


$

2,972



$



$

(58)


B

$



$

(11)


D

$

(10)


E

$



$

(79)



$

2,893





















International Energy


225

















225





















Commercial Portfolio


140







(94)


C



(1)


F

(41)


H

(136)



4





















Total Reportable Segment Income


3,337





(58)



(94)



(11)



(11)



(41)



(215)



3,122





















Other


(185)



(60)


A







(77)


G



(137)



(322)





















Intercompany Eliminations














(4)


I

(4)



(4)





















Total Reportable Segment Income and Other Net Expense


3,152



(60)



(58)



(94)



(11)



(88)



(45)



(356)



2,796





















Discontinued Operations








94


C





(74)


J

20



20





















Net Income Attributable to Duke Energy Corporation


$

3,152



$

(60)



$

(58)



$



$

(11)



$

(88)



$

(119)



$

(336)



$

2,816





















EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC


$

4.54



$

(0.09)



$

(0.08)



$



$

(0.02)



$

(0.13)



$

(0.17)



$

(0.49)



$

4.05





















EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED


$

4.54



$

(0.09)



$

(0.08)



$



$

(0.02)



$

(0.13)



$

(0.17)



$

(0.49)



$

4.05





















A - Net of $37 million tax benefit. Recorded within Operating Expenses and Interest Expenses on the Consolidated Statements of Operations.

B - Net of $35 million tax benefit. $88 million recorded within Impairment charges and $5 million recorded within Other income and expenses, net on the Duke Energy Indiana Consolidated Statements of Operations.

C - Operating results of the nonregulated Midwest generation business that had been classified from discontinued operations after adjustment for special items and economic hedges (net of $53 million tax benefit).

D - Net of $3 million tax benefit. Recorded within Operation, maintenance and other on the Consolidated Statements of Operations. Includes $8 million and $6 million at Duke Energy Carolinas and Duke Energy Progress, respectively.

E - Net of $6 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations. Includes $7 million at Duke Energy Carolinas, $4 million at Duke Energy Progress, $2 million at Duke Energy Florida, $1 million at Duke Energy Ohio and $2 million at Duke Energy Indiana.