Form 8-K Duke Energy CORP For: Aug 04
Tweet
Share
E-mailUNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4, 2016
Commission file number | Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, and Telephone Number | IRS Employer Identification No. | ||
1-32853 | DUKE ENERGY CORPORATION (a Delaware corporation) 550 South Tryon Street Charlotte, North Carolina 28202-1803 704-382-3853 | 20-2777218 | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240. 13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On August 4, 2016, Duke Energy Corporation issued a news release announcing its financial results for the second quarter ended June 30, 2016. A copy of this news release is attached hereto as Exhibit 99.1. The information in Exhibit 99.1 is being furnished pursuant to this Item 2.02.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 News Release issued by Duke Energy Corporation on August 4, 2016
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
DUKE ENERGY CORPORATION | |||
/s/ WILLIAM E. CURRENS JR. | |||
William E. Currens Jr. | |||
Senior Vice President, Chief Accounting Officer and Controller | |||
Dated: | August 4, 2016 | ||
EXHIBIT INDEX
Exhibit | Description | |
99.1 | News Release issued by Duke Energy Corporation on August 4, 2016 | |
News Release |  | |
Media Contact: Catherine Butler
24-Hour: 800.559.3853
Analysts: Mike Callahan
Office: 704.382.0459
Aug. 4, 2016
Duke Energy reports second quarter 2016 financial results
▪ | Second quarter 2016 GAAP reported diluted EPS was $0.74 compared to $0.78 for the second quarter of 2015 |
▪ | Adjusted diluted EPS of $1.07 for second quarter 2016, compared to $0.95 for the second quarter of 2015 |
▪ | Company remains on track to achieve its 2016 adjusted diluted earnings guidance range of $4.50 to $4.70 per share |
CHARLOTTE, N.C. - Duke Energy today announced second quarter 2016 reported diluted earnings per share (EPS), prepared in accordance with Generally Accepted Accounting Principles (GAAP) of $0.74, compared to $0.78 for second quarter 2015. Second quarter 2016 adjusted diluted EPS was $1.07, compared to $0.95 for second quarter 2015.
GAAP reported diluted EPS includes the impact of special items, which are excluded from adjusted diluted EPS. Special items during the second quarter of 2016 include charges related to an impairment in Central America, costs to achieve mergers and cost savings initiatives.
Second quarter adjusted diluted EPS was higher than the prior year due to higher retail revenues from pricing and rider recoveries, lower O&M expense, and additional earnings from the North Carolina Eastern Municipal Power Agency (NCEMPA) acquisition.
Based upon results through the second quarter, the company remains on track to achieve its 2016 adjusted diluted earnings guidance range of $4.50 to $4.70 per share.
“Our solid second quarter performance reflects the strength of our regulated utilities driven by strategic investments, dedicated cost management and a relentless focus on operational excellence,” said Lynn Good, Duke Energy chairman, president and CEO. “The execution of our long-term strategy to modernize the energy grid and generate cleaner energy creates value for customers, delivers growth for shareholders and enhances our position as a leader in the industry.
“Looking ahead, we are on track with our proposed acquisition of Piedmont Natural Gas and the marketing of our Latin American assets,” Good added. “The successful completion of both transactions will align our portfolio to focus on domestic infrastructure businesses that drive more stable earnings and cash flow growth.”
Duke Energy News Release 2
Business unit results
In addition to the summary business unit discussion below, a comprehensive table of quarterly earnings per share drivers compared to the prior year is provided on pages 15 and 16.
The discussion below of the second-quarter results includes adjusted segment income, which is a non-GAAP financial measure. In addition to the drivers that follow, the variances in GAAP reported earnings were impacted by special items. The tables on pages 25 through 28 present a detail of special items and a reconciliation of GAAP reported results to adjusted results.
During the first quarter of 2016, Duke Energy began to evaluate interim period segment performance based on financial information that includes the impact of income tax levelization within segment income. This represents a change from the previous measure, where the interim period impacts of income tax levelization were included within Other, and therefore excluded from segment income. As a result, prior period segment results presented in this release have been recast to conform to this change.
Regulated Utilities
Regulated Utilities recognized second quarter 2016 adjusted segment income of $718 million, compared to $632 million in the second quarter 2015, an increase of $0.13 per share.
Higher quarterly results at Regulated Utilities were primarily driven by:
▪ | Higher pricing and riders (+$0.08 per share) |
▪ | Lower O&M expenses (+$0.05 per share), primarily as a result of favorable outage costs and cost savings initiatives |
▪ | Increased wholesale net margins (+$0.03 per share), primarily due to the long-term wholesale contract associated with the NCEMPA purchase in the prior year |
These favorable drivers were partially offset by:
▪ | Less favorable weather (-$0.04 per share) |
On a year-to-date basis, Regulated Utilities recognized adjusted segment income of $1,413 million, compared to $1,406 million in the comparable year-to-date period of 2015, an increase of $0.01 per share.
Increased year-to-date results at Regulated Utilities were primarily driven by:
▪ | Higher pricing and riders (+$0.15 per share) |
▪ | Increased wholesale net margins (+$0.05 per share) primarily due to the long-term wholesale contract associated with the NCEMPA acquisition in the prior year |
▪ | Lower O&M expense (+$0.03 per share) as a result of favorable outage costs and cost savings initiatives, despite higher storm costs (-$0.06 per share) |
▪ | Lower effective tax rate (+$0.03 per share) |
These favorable drivers were partially offset by:
Duke Energy News Release 3
▪ | Less favorable weather (-$0.14 per share) |
▪ | Higher depreciation and amortization expense (-$0.06 per share) primarily resulting from additional plant in-service |
▪ | Higher non-income taxes (-$0.04 per share) primarily due to increased property taxes |
Commercial Portfolio
Commercial Portfolio recognized second quarter 2016 adjusted segment income of $14 million, compared to $11 million in the second quarter 2015, an increase of $0.01 per share.
Higher quarterly results at Commercial Portfolio were primarily driven by increased investments in the Atlantic Coast and Sabal Trail pipelines.
On a year-to-date basis, Commercial Portfolio recognized adjusted segment income of $41 million, compared to $112 million in the comparable year-to-date period of 2015, a decrease of $0.10 per share.
Commercial Portfolio’s lower year-to-date earnings were driven by the absence of earnings from the Midwest Generation business (-$0.12 per share), which was sold in April 2015, partially offset by higher earnings from the renewables portfolio (+$0.01 per share) and increased investments in the Atlantic Coast and Sabal Trail pipelines (+$0.01 per share).
International Energy
International Energy recognized second quarter 2016 adjusted segment income of $43 million, compared to $52 million in the second quarter 2015, a decrease of $0.02 per share.
International Energy’s decreased quarterly earnings were driven by lower earnings at National Methanol Company (NMC) (-$0.02 per share) and a higher effective tax rate (-$0.02 per share), partially offset by stronger results in Latin America (+$0.03 per share) primarily due to improved hydrology in Brazil despite weaker foreign currency exchange rates.
On a year-to-date basis, International Energy recognized adjusted segment income of $166 million, compared to $88 million in the comparable year-to-date period of 2015, an increase of $0.11 per share.
Higher year-to-date earnings at International Energy were driven by a lower effective tax rate (+$0.08 per share), stronger results in Latin America (+$0.06 per share) primarily due to improved hydrology in Brazil, partially offset by weaker foreign currency exchange rates, and lower earnings from NMC (-$0.03 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, and other investments.
Other recognized second quarter 2016 adjusted net expense of $36 million, compared to net expense of $37 million in the second quarter 2015, which was flat on a per share basis. The decreased net expense was primarily driven by a change in effective tax rate (+$0.02 per share) and higher interest expense (-$0.01 per share).
Duke Energy News Release 4
On a year-to-date basis, Other recognized adjusted net expense of $104 million, compared to $67 million in the comparable period of 2015, a decrease of $0.05 per share. Other’s year-to-date results were primarily driven by higher interest expense (-$0.02 per share) and a change in effective tax rate (-$0.01 per share).
The consolidated adjusted effective tax rate for second quarter 2016 was 31.4 percent, compared to 31.3 percent in the second quarter of 2015. Adjusted effective tax rate is a non-GAAP financial measure. The tables on pages 29 and 30 present a reconciliation of GAAP 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 on April 2, 2015, Duke Energy completed a $1.5 billion accelerated stock repurchase program (ASR). The program resulted in share retirements of approximately 19.8 million, providing a benefit to the year-to-date 2016 results of $0.03 per share.
Earnings conference call for analysts
An earnings conference call for analysts is scheduled for 10 a.m. ET today to discuss Duke Energy’s financial performance for the quarter and other business and financial updates.
The conference call will be hosted by Lynn Good, chairman, 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 877-723-9502 in the United States or 719-325-4795 outside the United States. The confirmation code is 4669837. 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, August 14, 2016, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 4669837. A replay and transcript also will be available by accessing the investors' section of the company’s website.
Duke Energy News Release 5
Special Items and Non-GAAP Reconciliation
The following table presents a reconciliation of GAAP reported to adjusted diluted EPS for quarterly results in 2016 and 2015:
(In millions, except per-share amounts) | After-Tax Amount | 2Q 2016 EPS | 2Q 2015 EPS | ||||||
Diluted EPS, as reported | $ | 0.74 | $ | 0.78 | |||||
Adjustments to reported EPS: | |||||||||
Second Quarter 2016 | |||||||||
Costs to achieve, mergers | $ | 69 | 0.10 | ||||||
International impairment | 145 | 0.21 | |||||||
Cost savings initiatives | 15 | 0.02 | |||||||
Discontinued operations | 1 | — | |||||||
Second Quarter 2015 | |||||||||
Costs to achieve, Progress merger | 14 | 0.02 | |||||||
Discontinued operations (1) | 101 | 0.15 | |||||||
Total adjustments | $ | 0.33 | $ | 0.17 | |||||
Diluted EPS, as adjusted | $ | 1.07 | $ | 0.95 | |||||
(1) Adjusted earnings for the second quarter of 2015 excludes GAAP reported loss from discontinued operations of $0.09 per diluted share, which was driven by the impact of a litigation reserve related to the nonregulated Midwest generation business, as well as a tax charge recorded within continuing operations of $0.06 resulting from changes in state tax apportionment factors related to the sale of the Midwest generation business.
Non-GAAP financial measures
Management evaluates financial performance in part based on non-GAAP financial measures, adjusted earnings and adjusted diluted EPS. These items represent income from continuing operations net of income (loss) attributable to noncontrolling interests, adjusted for the dollar and per-share impact of special items. Special items represent certain charges and credits, which management believes are not indicative of our ongoing performance, and are discussed below. 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, stockholders, analysts and investors concerning Duke Energy’s financial performance. Adjusted diluted EPS is also used as a basis for employee incentive bonuses. The most directly comparable GAAP measures for adjusted earnings and adjusted diluted EPS are Net Income Attributable to Duke Energy Corporation and Diluted EPS Attributable to Duke Energy Corporation common stockholders.
Special items included in the periods presented include the following:
Duke Energy News Release 6
• | Costs to achieve mergers and International impairment represent charges that result from potential or completed strategic acquisitions and divestitures that do not reflect ongoing costs of the business. |
• | Costs savings initiatives represent restructuring charges incurred to reduce future expenses and do not represent ongoing costs. |
• | Midwest generation operations represents the operating results of the nonregulated Midwest generation business and Duke Energy Retail Sales (collectively, the Disposal Group), which have been classified as discontinued operations. Management believes inclusion of the Disposal Group's operating results within adjusted earnings and adjusted diluted EPS results in a better reflection of Duke Energy's financial performance during the period. |
Due to the forward-looking nature of any forecasted adjusted earnings guidance, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items for future periods (such as legal settlements, the impact of regulatory orders, or asset impairments).
Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests. Segment income includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements. Management also uses adjusted segment income as a measure of historical and anticipated future segment performance. Adjusted segment income is a non-GAAP financial measure, as it is based upon segment income adjusted for special items, which are discussed above. 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.
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 or any amounts that may be reported as discontinued operations or extraordinary items for future periods, as discussed above.
Duke Energy’s adjusted earnings, adjusted diluted EPS, and adjusted segment income may not be comparable to similarly titled measures of another company because other entities may not calculate the measures in the same manner.
Duke Energy is one of the largest electric power holding companies in the United States. Its regulated utility operations serve approximately 7.4 million electric customers located in six states in the Southeast and Midwest, representing a population of approximately 24 million people. Its Commercial Portfolio and International business segments own and operate diverse
Duke Energy News Release 7
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 an S&P 100 Stock Index company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com.
The Duke Energy News Center serves as a multimedia resource for journalists and features news releases, helpful links, photos and videos. Hosted by Duke Energy, illumination is an online destination for stories about remarkable people, innovations, and community and environmental topics. It also offers glimpses into the past and insights into the future of energy.
Follow Duke Energy on Twitter, LinkedIn, Instagram 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
Duke Energy News Release 8
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 successfully complete future merger, acquisition or divestiture plans; 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 likelihood, terms and timing of the potential sale of International Energy, excluding the equity investment in National Methanol Company, could change the presentation of certain assets, liabilities and results of operations as assets held for sale, liabilities associated with assets held for sale, and discontinued operations, respectively.
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
Duke Energy News Release 9
expressly disclaims an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
###
June 2016 | |||||||||||||||
QUARTERLY HIGHLIGHTS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(In millions, except per-share amounts and where noted) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Earnings Per Share - Basic and Diluted | |||||||||||||||
Income from continuing operations attributable to Duke Energy Corporation common stockholders | |||||||||||||||
Basic | $ | 0.74 | $ | 0.87 | $ | 1.74 | $ | 1.96 | |||||||
Diluted | $ | 0.74 | $ | 0.87 | $ | 1.74 | $ | 1.96 | |||||||
(Loss) Income from discontinued operations attributable to Duke Energy Corporation common stockholders | |||||||||||||||
Basic | $ | — | $ | (0.09 | ) | $ | — | $ | 0.05 | ||||||
Diluted | $ | — | $ | (0.09 | ) | $ | — | $ | 0.05 | ||||||
Net income attributable to Duke Energy Corporation common stockholders | |||||||||||||||
Basic | $ | 0.74 | $ | 0.78 | $ | 1.74 | $ | 2.01 | |||||||
Diluted | $ | 0.74 | $ | 0.78 | $ | 1.74 | $ | 2.01 | |||||||
Weighted average shares outstanding | |||||||||||||||
Basic | 689 | 692 | 689 | 700 | |||||||||||
Diluted | 690 | 692 | 689 | 700 | |||||||||||
SEGMENT INCOME (LOSS) BY BUSINESS SEGMENT | |||||||||||||||
Regulated Utilities | $ | 718 | $ | 632 | $ | 1,413 | $ | 1,406 | |||||||
International Energy(a)(b) | (102 | ) | 52 | 21 | 88 | ||||||||||
Commercial Portfolio(c) | 14 | (30 | ) | 41 | (23 | ) | |||||||||
Total Reportable Segment Income | 630 | 654 | 1,475 | 1,471 | |||||||||||
Other Net Expense(d)(e)(f) | (120 | ) | (51 | ) | (274 | ) | (94 | ) | |||||||
Intercompany Eliminations | — | (3 | ) | — | (4 | ) | |||||||||
(Loss) Income from Discontinued Operations, net of tax(g) | (1 | ) | (57 | ) | 2 | 34 | |||||||||
Net Income Attributable to Duke Energy Corporation | $ | 509 | $ | 543 | $ | 1,203 | $ | 1,407 | |||||||
CAPITALIZATION | |||||||||||||||
Total Common Equity | 47 | % | 49 | % | |||||||||||
Total Debt | 53 | % | 51 | % | |||||||||||
Total Debt | $ | 44,585 | $ | 41,173 | |||||||||||
Book Value Per Share | $ | 57.98 | $ | 57.56 | |||||||||||
Actual Shares Outstanding | 689 | 688 | |||||||||||||
CAPITAL AND INVESTMENT EXPENDITURES | |||||||||||||||
Regulated Utilities | $ | 1,565 | $ | 1,411 | $ | 3,013 | $ | 2,673 | |||||||
International Energy | 10 | 7 | 15 | 19 | |||||||||||
Commercial Portfolio | 208 | 261 | 422 | 383 | |||||||||||
Other | 42 | 56 | 79 | 114 | |||||||||||
Total Capital and Investment Expenditures | $ | 1,825 | $ | 1,735 | $ | 3,529 | $ | 3,189 | |||||||
Note: Certain prior period amounts have been reclassified to conform to the current year presentation, including changes related to the new segment income measure. | |||||||||||||||
(a) Includes an impairment charge of $145 million (net of tax of $49 million) for the three and six months ended June 30, 2016, related to certain assets in Central America. | |||||||||||||||
(b) Includes a tax benefit of $79 million for the six months ended June 30, 2016, resulting from the ability to more efficiently utilize foreign tax credits, net of higher taxes due to no longer asserting indefinite reinvestment of foreign earnings. | |||||||||||||||
(c) Includes a tax charge of $41 million for the three and six months ended June 30, 2015, resulting from the completion of the sale of the nonregulated Midwest generation business. | |||||||||||||||
(d) Includes costs to achieve mergers of $69 million for the three months ended June 30, 2016 (net of tax of $42 million), and $143 million for the six months ended June 30, 2016 (net of tax of $88 million). These costs primarily consist of mark-to-market losses related to forward-starting interest rate swaps utilized to manage interest rate exposure for the expected financing of the Piedmont acquisition. | |||||||||||||||
(e) Includes costs to achieve Progress merger of $14 million for the three months ended June 30, 2015 (net of tax of $8 million), and $27 million for the six months ended June 30, 2015 (net of tax of $16 million). | |||||||||||||||
(f) Includes a charge of $15 million for the three months ended June 30, 2016 (net of tax of $9 million) and $27 million for the six months ended June 30, 2016 (net of tax of $17 million), primarily consisting of severance expense related to cost savings initiatives. | |||||||||||||||
(g) Includes the impact of a litigation reserve related to the nonregulated Midwest generation business of $46 million for the three months ended June 30, 2015 (net of tax of $25 million), and $53 million for the six months ended June 30, 2015 (net of tax of $28 million). | |||||||||||||||
10
June 2016 | |||||||||||||||
QUARTERLY HIGHLIGHTS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(In millions, except for GWh and MW amounts) | 2016 | 2015 | 2016 | 2015 | |||||||||||
REGULATED UTILITIES | |||||||||||||||
Operating Revenues | $ | 5,099 | $ | 5,220 | $ | 10,358 | $ | 10,943 | |||||||
Operating Expenses | 3,772 | 4,003 | 7,739 | 8,308 | |||||||||||
Gains on Sales of Other Assets, net | 1 | 2 | 2 | 9 | |||||||||||
Operating Income | 1,328 | 1,219 | 2,621 | 2,644 | |||||||||||
Other Income and Expenses | 74 | 59 | 138 | 131 | |||||||||||
Interest Expense | 278 | 274 | 555 | 549 | |||||||||||
Income Before Income Taxes | 1,124 | 1,004 | 2,204 | 2,226 | |||||||||||
Income Tax Expense | 406 | 372 | 791 | 820 | |||||||||||
Segment Income | $ | 718 | $ | 632 | $ | 1,413 | $ | 1,406 | |||||||
Depreciation and Amortization | $ | 721 | $ | 707 | $ | 1,449 | $ | 1,405 | |||||||
INTERNATIONAL ENERGY | |||||||||||||||
Operating Revenues | $ | 270 | $ | 287 | $ | 516 | $ | 560 | |||||||
Operating Expenses(a) | 382 | 232 | 536 | 439 | |||||||||||
Loss on Sales of Other Assets, net | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||
Operating (Loss) Income | (113 | ) | 54 | (21 | ) | 120 | |||||||||
Other Income and Expenses | 23 | 31 | 39 | 45 | |||||||||||
Interest Expense | 22 | 22 | 44 | 45 | |||||||||||
(Loss) Income Before Income Taxes | (112 | ) | 63 | (26 | ) | 120 | |||||||||
Income Tax (Benefit) Expense(b)(c) | (13 | ) | 10 | (52 | ) | 30 | |||||||||
Less: Income Attributable to Noncontrolling Interests | 3 | 1 | 5 | 2 | |||||||||||
Segment (Loss) Income | $ | (102 | ) | $ | 52 | $ | 21 | $ | 88 | ||||||
Depreciation and Amortization | $ | 22 | $ | 23 | $ | 44 | $ | 46 | |||||||
Sales, GWh | 5,625 | 4,520 | 11,505 | 8,990 | |||||||||||
Proportional MW Capacity in Operation | 4,315 | 4,333 | |||||||||||||
COMMERCIAL PORTFOLIO | |||||||||||||||
Operating Revenues | $ | 112 | $ | 75 | $ | 226 | $ | 148 | |||||||
Operating Expenses | 121 | 84 | 232 | 173 | |||||||||||
Gains on Sales of Other Assets, net | 1 | 6 | 2 | 6 | |||||||||||
Operating Loss | (8 | ) | (3 | ) | (4 | ) | (19 | ) | |||||||
Other Income and Expenses | 4 | (2 | ) | 6 | — | ||||||||||
Interest Expense | 11 | 10 | 23 | 22 | |||||||||||
Loss Before Income Taxes | (15 | ) | (15 | ) | (21 | ) | (41 | ) | |||||||
Income Tax (Benefit) Expense(d) | (28 | ) | 15 | (61 | ) | (18 | ) | ||||||||
Less: Loss Attributable to Noncontrolling Interests | (1 | ) | — | (1 | ) | — | |||||||||
Segment Income (Loss) | $ | 14 | $ | (30 | ) | $ | 41 | $ | (23 | ) | |||||
Depreciation and Amortization | $ | 33 | $ | 26 | $ | 63 | $ | 50 | |||||||
Actual Renewable Plant Production, GWh | 1,758 | 1,373 | 3,818 | 2,683 | |||||||||||
Net Proportional MW Capacity in Operation | 1,978 | 1,634 | |||||||||||||
OTHER | |||||||||||||||
Operating Revenues | $ | 30 | $ | 34 | $ | 59 | $ | 61 | |||||||
Operating Expenses(e)(f)(g) | 96 | 63 | 188 | 113 | |||||||||||
Gains on Sales of Other Assets, net | 4 | 6 | 11 | 13 | |||||||||||
Operating Loss | (62 | ) | (23 | ) | (118 | ) | (39 | ) | |||||||
Other Income and Expenses | 8 | 9 | 18 | 10 | |||||||||||
Interest Expense(h) | 191 | 97 | 396 | 194 | |||||||||||
Loss Before Income Taxes | (245 | ) | (111 | ) | (496 | ) | (223 | ) | |||||||
Income Tax Benefit(i)(j)(k) | (126 | ) | (63 | ) | (226 | ) | (134 | ) | |||||||
Less: Income Attributable to Noncontrolling Interests | 1 | 3 | 4 | 5 | |||||||||||
Segment Net Expense | $ | (120 | ) | $ | (51 | ) | $ | (274 | ) | $ | (94 | ) | |||
Depreciation and Amortization | $ | 37 | $ | 34 | $ | 71 | $ | 66 | |||||||
Note: Certain prior period amounts have been reclassified to conform to the current year presentation, including changes related to the new segment income measure. | |||||||||||||||
(a) Includes a pretax impairment charge of $194 million for the three and six months ended June 30, 2016, related to certain assets in Central America. | |||||||||||||||
(b) Includes a tax benefit of $49 million for the three and six months ended June 30, 2016 related to the asset impairment. | |||||||||||||||
(c) Includes a tax benefit of $79 million for the six months ended June 30, 2016, resulting from the ability to more efficiently utilize foreign tax credits, net of higher taxes due to no longer asserting indefinite reinvestment of foreign earnings. | |||||||||||||||
(d) Includes a tax charge of $41 million for the three and six months ended June 30, 2015, resulting from the completion of the sale of the nonregulated Midwest generation business. | |||||||||||||||
(e) Includes costs to achieve mergers of $28 million for the three months ended June 30, 2016, and $47 million for the six months ended June 30, 2016. | |||||||||||||||
(f) Includes charges of $24 million for the three months ended June 30, 2016, and $44 million for the six months ended June 30, 2016, related to cost savings initiatives. | |||||||||||||||
(g) Includes costs to achieve Progress merger of $22 million for the three months ended June 30, 2015 and $43 million for the six months ended June 30, 2015. | |||||||||||||||
(h) Includes costs to achieve mergers of $83 million for the three months ended June 30, 2016 and $183 million for the six months ended June 30, 2016. These costs primarily consist of mark-to-market losses related to forward-starting interest rate swaps utilized to manage interest rate exposure for the expected financing of the Piedmont acquisition. | |||||||||||||||
(i) Includes a tax benefit related to costs to achieve mergers of $42 million for the three months ended June 30, 2016 and $88 million for the six months ended June 30, 2016. | |||||||||||||||
(j) Includes a tax benefit related to cost savings initiatives of $9 million for the three months ended June 30, 2016 and $17 million for the six months ended June 30, 2016. | |||||||||||||||
(k) Includes a tax benefit related to costs to achieve Progress merger of $8 million for the three months ended June 30, 2015 and $16 million for the six months ended June 30, 2015. | |||||||||||||||
11
DUKE ENERGY CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
(In millions, except per-share amounts) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating Revenues | |||||||||||||||
Regulated electric | $ | 4,965 | $ | 5,090 | $ | 10,018 | $ | 10,547 | |||||||
Nonregulated electric and other | 422 | 403 | 822 | 780 | |||||||||||
Regulated natural gas | 97 | 96 | 266 | 327 | |||||||||||
Total operating revenues | 5,484 | 5,589 | 11,106 | 11,654 | |||||||||||
Operating Expenses | |||||||||||||||
Fuel used in electric generation and purchased power - regulated | 1,509 | 1,721 | 3,086 | 3,662 | |||||||||||
Fuel used in electric generation and purchased power - nonregulated | 82 | 118 | 140 | 222 | |||||||||||
Cost of natural gas | 21 | 26 | 81 | 137 | |||||||||||
Operation, maintenance and other | 1,431 | 1,422 | 2,920 | 2,848 | |||||||||||
Depreciation and amortization | 813 | 790 | 1,627 | 1,567 | |||||||||||
Property and other taxes | 293 | 279 | 590 | 543 | |||||||||||
Impairment charges | 195 | — | 198 | — | |||||||||||
Total operating expenses | 4,344 | 4,356 | 8,642 | 8,979 | |||||||||||
Gains on Sales of Other Assets and Other, net | 5 | 13 | 14 | 27 | |||||||||||
Operating Income | 1,145 | 1,246 | 2,478 | 2,702 | |||||||||||
Other Income and Expenses | |||||||||||||||
Equity in earnings of unconsolidated affiliates | 15 | 23 | 23 | 36 | |||||||||||
Other income and expenses, net | 92 | 72 | 171 | 146 | |||||||||||
Total other income and expenses | 107 | 95 | 194 | 182 | |||||||||||
Interest Expense | 500 | 403 | 1,011 | 806 | |||||||||||
Income from Continuing Operations before Income Taxes | 752 | 938 | 1,661 | 2,078 | |||||||||||
Income Tax Expense from Continuing Operations | 239 | 334 | 452 | 698 | |||||||||||
Income from Continuing Operations | 513 | 604 | 1,209 | 1,380 | |||||||||||
(Loss) Income from Discontinued Operations, net of tax | (1 | ) | (57 | ) | 2 | 34 | |||||||||
Net Income | 512 | 547 | 1,211 | 1,414 | |||||||||||
Less: Net Income Attributable to Noncontrolling Interests | 3 | 4 | 8 | 7 | |||||||||||
Net Income Attributable to Duke Energy Corporation | $ | 509 | $ | 543 | $ | 1,203 | $ | 1,407 | |||||||
Earnings Per Share - Basic and Diluted | |||||||||||||||
Income from continuing operations attributable to Duke Energy Corporation common stockholders | |||||||||||||||
Basic | $ | 0.74 | $ | 0.87 | $ | 1.74 | $ | 1.96 | |||||||
Diluted | $ | 0.74 | $ | 0.87 | $ | 1.74 | $ | 1.96 | |||||||
(Loss) Income from discontinued operations attributable to Duke Energy Corporation common stockholders | |||||||||||||||
Basic | $ | — | $ | (0.09 | ) | $ | — | $ | 0.05 | ||||||
Diluted | $ | — | $ | (0.09 | ) | $ | — | $ | 0.05 | ||||||
Net income attributable to Duke Energy Corporation common stockholders | |||||||||||||||
Basic | $ | 0.74 | $ | 0.78 | $ | 1.74 | $ | 2.01 | |||||||
Diluted | $ | 0.74 | $ | 0.78 | $ | 1.74 | $ | 2.01 | |||||||
Weighted average shares outstanding | |||||||||||||||
Basic | 689 | 692 | 689 | 700 | |||||||||||
Diluted | 690 | 692 | 689 | 700 | |||||||||||
12
DUKE ENERGY CORPORATION | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(in millions) | June 30, 2016 | December 31, 2015 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 676 | $ | 857 | ||||
Receivables (net of allowance for doubtful accounts of $23 at 2016 and $18 at 2015) | 575 | 703 | ||||||
Receivables of VIEs (net of allowance for doubtful accounts of $56 at 2016 and $53 at 2015) | 1,943 | 1,748 | ||||||
Inventory | 3,627 | 3,810 | ||||||
Regulatory assets (Includes $34 related to VIEs at 2016) | 825 | 877 | ||||||
Other | 451 | 327 | ||||||
Total current assets | 8,097 | 8,322 | ||||||
Investments and Other Assets | ||||||||
Investments in equity method unconsolidated affiliates | 613 | 499 | ||||||
Nuclear decommissioning trust funds | 5,966 | 5,825 | ||||||
Goodwill | 16,357 | 16,343 | ||||||
Other | 2,972 | 3,042 | ||||||
Total investments and other assets | 25,908 | 25,709 | ||||||
Property, Plant and Equipment | ||||||||
Cost | 115,143 | 112,826 | ||||||
Accumulated depreciation and amortization | (38,412 | ) | (37,665 | ) | ||||
Generation facilities to be retired, net | 598 | 548 | ||||||
Net property, plant and equipment | 77,329 | 75,709 | ||||||
Regulatory Assets and Deferred Debits | ||||||||
Regulatory assets (includes $1,194 related to VIEs at 2016) | 11,290 | 11,373 | ||||||
Other | 30 | 43 | ||||||
Total regulatory assets and deferred debits | 11,320 | 11,416 | ||||||
Total Assets | $ | 122,654 | $ | 121,156 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 2,221 | $ | 2,400 | ||||
Notes payable and commercial paper | 2,312 | 3,633 | ||||||
Taxes accrued | 467 | 348 | ||||||
Interest accrued | 448 | 430 | ||||||
Current maturities of long-term debt (includes $197 at 2016 and $125 at 2015 related to VIEs) | 2,342 | 2,074 | ||||||
Regulatory liabilities | 332 | 400 | ||||||
Other | 1,784 | 2,115 | ||||||
Total current liabilities | 9,906 | 11,400 | ||||||
Long-Term Debt (includes $3,383 at 2016 and $2,197 at 2015 related to VIEs) | 39,931 | 37,495 | ||||||
Deferred Credits and Other Liabilities | ||||||||
Deferred income taxes | 13,038 | 12,705 | ||||||
Investment tax credits | 492 | 472 | ||||||
Accrued pension and other post-retirement benefit costs | 1,044 | 1,088 | ||||||
Asset retirement obligations | 10,231 | 10,264 | ||||||
Regulatory liabilities | 6,334 | 6,255 | ||||||
Other | 1,730 | 1,706 | ||||||
Total deferred credits and other liabilities | 32,869 | 32,490 | ||||||
Commitments and Contingencies | ||||||||
Equity | ||||||||
Common stock, $0.001 par value, 2 billion shares authorized; 689 million and 688 million shares outstanding at 2016 and 2015, respectively | 1 | 1 | ||||||
Additional paid-in capital | 37,984 | 37,968 | ||||||
Retained earnings | 2,627 | 2,564 | ||||||
Accumulated other comprehensive loss | (717 | ) | (806 | ) | ||||
Total Duke Energy Corporation stockholders' equity | 39,895 | 39,727 | ||||||
Noncontrolling interests | 53 | 44 | ||||||
Total equity | 39,948 | 39,771 | ||||||
Total Liabilities and Equity | $ | 122,654 | $ | 121,156 | ||||
13
DUKE ENERGY CORPORATION | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
(In millions) | ||||||||
Six Months Ended June 30, | ||||||||
2016 | 2015 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net Income | $ | 1,211 | $ | 1,414 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | 1,995 | 1,465 | ||||||
Net cash provided by operating activities | 3,206 | 2,879 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Net cash used in investing activities | (3,608 | ) | (294 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Net cash provided by (used in) financing activities | 221 | (3,661 | ) | |||||
Net decrease in cash and cash equivalents | (181 | ) | (1,076 | ) | ||||
Cash and cash equivalents at the beginning of period | 857 | 2,036 | ||||||
Cash and cash equivalents at end of period | $ | 676 | $ | 960 | ||||
14
DUKE ENERGY CORPORATION
EARNINGS VARIANCES
June 2016 QTD vs. Prior Year
($ per share) | Regulated Utilities | International Energy | Commercial Portfolio | Other | Consolidated | |||||||||||||||
2015 QTD Reported Earnings Per Share, Diluted | $ | 0.91 | $ | 0.08 | $ | (0.05 | ) | $ | (0.07 | ) | $ | 0.78 | ||||||||
Costs to Achieve, Progress Merger | — | — | — | 0.02 | 0.02 | |||||||||||||||
Discontinued Operations | 0.06 | 0.15 | ||||||||||||||||||
2015 QTD Adjusted Earnings Per Share, Diluted | $ | 0.91 | $ | 0.08 | $ | 0.01 | $ | (0.05 | ) | $ | 0.95 | |||||||||
Weather | (0.04 | ) | — | — | — | (0.04 | ) | |||||||||||||
Pricing and Riders (a) | 0.08 | — | — | — | 0.08 | |||||||||||||||
Volume | — | — | — | — | — | |||||||||||||||
Wholesale (b) | 0.03 | — | — | — | 0.03 | |||||||||||||||
Operations and Maintenance, net of recoverables (c) | 0.05 | — | — | — | 0.05 | |||||||||||||||
Latin America, including Foreign Exchange Rates (d) | — | 0.03 | — | — | 0.03 | |||||||||||||||
National Methanol Company | — | (0.02 | ) | — | — | (0.02 | ) | |||||||||||||
Duke Energy Renewables, net of tax | — | — | — | — | — | |||||||||||||||
Commercial Transmission, Pipeline and Other (e) | — | — | 0.01 | — | 0.01 | |||||||||||||||
Interest Expense | — | — | — | (0.01 | ) | (0.01 | ) | |||||||||||||
Change in effective income tax rate (f)(g) | 0.01 | (0.02 | ) | — | 0.02 | 0.01 | ||||||||||||||
Other | — | (0.01 | ) | — | (0.01 | ) | (0.02 | ) | ||||||||||||
2016 QTD Adjusted Earnings Per Share, Diluted | $ | 1.04 | $ | 0.06 | $ | 0.02 | $ | (0.05 | ) | $ | 1.07 | |||||||||
Costs to Achieve, Mergers | — | — | — | (0.10 | ) | (0.10 | ) | |||||||||||||
International Impairment | — | (0.21 | ) | — | — | (0.21 | ) | |||||||||||||
Cost Savings Initiatives | — | — | — | (0.02 | ) | (0.02 | ) | |||||||||||||
2016 QTD Reported Earnings Per Share, Diluted | $ | 1.04 | $ | (0.15 | ) | $ | 0.02 | $ | (0.17 | ) | $ | 0.74 | ||||||||
Note 1: Earnings Per Share amounts are calculated using the consolidated statutory income tax rate. | ||||||||||||||||||||
Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding. | ||||||||||||||||||||
Note 3: Prior year amounts have been recast to conform with the new segment income measure. | ||||||||||||||||||||
(a) | Primarily due to higher retail pricing due to lower volumes for Duke Energy Carolinas (+$0.02), the NCEMPA rider (+$0.02), higher energy efficiency recoveries in the Carolinas (+$0.02), and a prior year unfavorable regulatory order in Ohio related to energy efficiency (+$0.02). | |||||||||||||||||||
(b) | Primarily due to the implementation of the new 30-year contract with NCEMPA. | |||||||||||||||||||
(c) | Primarily due to lower outage costs and cost savings initiatives, partially offset by costs related to the NCEMPA asset purchase. | |||||||||||||||||||
(d) | Primarily due to higher results in Brazil due to improved hydrology (+$0.04), partially offset by weaker foreign currency exchange rates (-$0.01). | |||||||||||||||||||
(e) | Primarily due to increased investments in Atlantic Coast and Sabal Trail pipelines. | |||||||||||||||||||
(f) | International Energy includes the impact of no longer asserting indefinite reinvestment of foreign earnings (-$0.01). | |||||||||||||||||||
(g) | Other is driven by impacts of finalizing federal tax audits. | |||||||||||||||||||
15
DUKE ENERGY CORPORATION
EARNINGS VARIANCES
June 2016 YTD vs. Prior Year
($ per share) | Regulated Utilities | International Energy | Commercial Portfolio | Other | Consolidated | |||||||||||||||
2015 YTD Reported Earnings Per Share, Diluted | $ | 2.01 | $ | 0.13 | $ | (0.03 | ) | $ | (0.14 | ) | $ | 2.01 | ||||||||
Costs to Achieve, Progress Merger | — | — | — | 0.04 | 0.04 | |||||||||||||||
Midwest Generation Operations (offset in Discontinued Operations) | — | — | 0.13 | — | 0.13 | |||||||||||||||
Discontinued Operations | 0.06 | 0.02 | ||||||||||||||||||
2015 YTD Adjusted Earnings Per Share, Diluted | $ | 2.01 | $ | 0.13 | $ | 0.16 | $ | (0.10 | ) | $ | 2.20 | |||||||||
Stock repurchase (a) | 0.03 | — | — | — | 0.03 | |||||||||||||||
Weather | (0.14 | ) | — | — | — | (0.14 | ) | |||||||||||||
Pricing and Riders (b) | 0.15 | — | — | — | 0.15 | |||||||||||||||
Volume | (0.01 | ) | — | — | — | (0.01 | ) | |||||||||||||
Wholesale (c) | 0.05 | — | — | — | 0.05 | |||||||||||||||
Operations and Maintenance, net of recoverables (d) | 0.03 | — | — | — | 0.03 | |||||||||||||||
Latin America, including Foreign Exchange Rates (e) | — | 0.06 | — | — | 0.06 | |||||||||||||||
National Methanol Company | — | (0.03 | ) | — | — | (0.03 | ) | |||||||||||||
Duke Energy Renewables, net of tax | — | — | 0.01 | — | 0.01 | |||||||||||||||
Commercial Transmission, Pipeline and Other (f) | — | — | 0.01 | — | 0.01 | |||||||||||||||
Midwest Generation, net of tax (g) | — | — | (0.12 | ) | — | (0.12 | ) | |||||||||||||
Interest Expense | — | — | — | (0.02 | ) | (0.02 | ) | |||||||||||||
Change in effective income tax rate (h) | 0.03 | 0.08 | — | (0.01 | ) | 0.10 | ||||||||||||||
Other (i) | (0.10 | ) | — | — | (0.02 | ) | (0.12 | ) | ||||||||||||
2016 YTD Adjusted Earnings Per Share, Diluted | $ | 2.05 | $ | 0.24 | $ | 0.06 | $ | (0.15 | ) | $ | 2.20 | |||||||||
Costs to Achieve, Mergers | — | (0.21 | ) | — | — | (0.21 | ) | |||||||||||||
Cost Savings Initiatives | — | — | — | (0.04 | ) | (0.04 | ) | |||||||||||||
International Impairment | — | — | — | (0.21 | ) | (0.21 | ) | |||||||||||||
2016 YTD Reported Earnings Per Share, Diluted | $ | 2.05 | $ | 0.03 | $ | 0.06 | $ | (0.40 | ) | $ | 1.74 | |||||||||
Note 1: Earnings Per Share amounts are calculated using the consolidated statutory income tax rate. | ||||||||||||||||||||
Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding. | ||||||||||||||||||||
Note 3: Prior year amounts have been recast to conform with the new segment income measure. | ||||||||||||||||||||
(a) | Due to the decrease in common shares outstanding as a result of the Accelerated Stock Repurchase Program. Weighted average diluted shares outstanding decreased from 700 million shares for the six months ended June 30, 2015, to 689 million shares for the six months ended June 30, 2016. | |||||||||||||||||||
(b) | Primarily due to higher retail pricing for Duke Energy Carolinas (+$0.05) driven by lower volumes, the NCEMPA rider (+$0.04), higher energy efficiency recoveries in the Carolinas (+$0.03), and a prior year unfavorable regulatory order in Ohio related to energy efficiency (+$0.02). | |||||||||||||||||||
(c) | Primarily due to the implementation of the new 30-year contract with NCEMPA. | |||||||||||||||||||
(d) | Primarily due to lower outage costs and cost savings initiatives, partially offset by increased storm restoration costs and costs related to the NCEMPA asset purchase. | |||||||||||||||||||
(e) | Primarily due to higher results in Brazil due to improved hydrology (+$0.09), partially offset by weaker foreign currency exchange rates (-$0.02). | |||||||||||||||||||
(f) | Primarily due to increased investments in Atlantic Coast and Sabal Trail pipelines. | |||||||||||||||||||
(g) | Due to the absence of earnings from the nonregulated Midwest generation business, which was sold in April 2015. | |||||||||||||||||||
(h) | International Energy includes lower income taxes resulting from the decision to divest the International Energy segment combined with more efficient utilization of foreign tax credits, net of the impact of no longer asserting indefinite reinvestment of foreign earnings. | |||||||||||||||||||
(i) | Regulated Utilities includes increased depreciation and amortization expense (-$0.06) due to higher depreciable base including the NCEMPA asset purchase, and higher non-income taxes (-$0.04) primarily due to increased property taxes. | |||||||||||||||||||
16
Regulated Utilities | ||||||||||||||||||||||||
Quarterly Highlights | ||||||||||||||||||||||||
Supplemental Regulated Utilities Electric Information | ||||||||||||||||||||||||
June 2016 | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2016 | 2015 | % Inc.(Dec.) | % Inc.(Dec.) Weather Normal (2) | 2016 | 2015 | % Inc.(Dec.) | % Inc.(Dec.) Weather Normal (2) | |||||||||||||||||
GWh Sales (1) | ||||||||||||||||||||||||
Residential | 17,685 | 17,989 | (1.7 | %) | 0.7 | % | 39,347 | 42,019 | (6.4 | %) | 0.3 | % | ||||||||||||
General Service | 18,673 | 18,795 | (0.6 | %) | (0.2 | %) | 36,523 | 37,077 | (1.5 | %) | (0.8 | %) | ||||||||||||
Industrial | 13,021 | 13,105 | (0.6 | %) | (0.5 | %) | 25,293 | 25,369 | (0.3 | %) | — | % | ||||||||||||
Other Energy Sales | 145 | 149 | (2.7 | %) | 291 | 301 | (3.3 | %) | ||||||||||||||||
Unbilled Sales | 2,125 | 2,378 | (10.6 | %) | n/a | 1,781 | 1,332 | 33.7 | % | n/a | ||||||||||||||
Total Retail Sales | 51,649 | 52,416 | (1.5 | %) | — | % | 103,235 | 106,098 | (2.7 | %) | (0.2 | %) | ||||||||||||
Special Sales | 10,536 | 8,582 | 22.8 | % | 21,681 | 18,101 | 19.8 | % | ||||||||||||||||
Total Consolidated Electric Sales - Regulated Utilities | 62,185 | 60,998 | 1.9 | % | 124,916 | 124,199 | 0.6 | % | ||||||||||||||||
Average Number of Customers (Electric) | ||||||||||||||||||||||||
Residential | 6,438,062 | 6,348,277 | 1.4 | % | 6,431,744 | 6,345,413 | 1.4 | % | ||||||||||||||||
General Service | 961,364 | 951,642 | 1.0 | % | 959,423 | 949,694 | 1.0 | % | ||||||||||||||||
Industrial | 17,864 | 18,159 | (1.6 | %) | 17,900 | 18,172 | (1.5 | %) | ||||||||||||||||
Other Energy Sales | 23,099 | 23,012 | 0.4 | % | 23,106 | 22,982 | 0.5 | % | ||||||||||||||||
Total Regular Sales | 7,440,389 | 7,341,090 | 1.4 | % | 7,432,173 | 7,336,261 | 1.3 | % | ||||||||||||||||
Special Sales | 65 | 61 | 6.6 | % | 64 | 64 | — | % | ||||||||||||||||
Total Average Number of Customers - Regulated Utilities | 7,440,454 | 7,341,151 | 1.4 | % | 7,432,237 | 7,336,325 | 1.3 | % | ||||||||||||||||
Sources of Electric Energy (GWh) | ||||||||||||||||||||||||
Generated - Net Output (3) | ||||||||||||||||||||||||
Coal | 15,768 | 17,963 | (12.2 | %) | 33,702 | 38,924 | (13.4 | %) | ||||||||||||||||
Nuclear | 18,609 | 16,722 | 11.3 | % | 36,608 | 34,111 | 7.3 | % | ||||||||||||||||
Hydro | 324 | 439 | (26.2 | %) | 1,371 | 934 | 46.8 | % | ||||||||||||||||
Oil and Natural Gas | 14,784 | 15,250 | (3.1 | %) | 30,867 | 29,521 | 4.6 | % | ||||||||||||||||
Renewable Energy | 45 | 4 | 1,025.0 | % | 98 | 7 | 1,300.0 | % | ||||||||||||||||
Total Generation (4) | 49,530 | 50,378 | (1.7 | %) | 102,646 | 103,497 | (0.8 | %) | ||||||||||||||||
Purchased Power and Net Interchange (5) | 16,139 | 13,842 | 16.6 | % | 28,652 | 27,226 | 5.2 | % | ||||||||||||||||
Total Sources of Energy | 65,669 | 64,220 | 2.3 | % | 131,298 | 130,723 | 0.4 | % | ||||||||||||||||
Less: Line Loss and Company Usage | 3,484 | 3,222 | 8.1 | % | 6,382 | 6,524 | (2.2 | %) | ||||||||||||||||
Total GWh Sources | 62,185 | 60,998 | 1.9 | % | 124,916 | 124,199 | 0.6 | % | ||||||||||||||||
Owned MW Capacity (3) | ||||||||||||||||||||||||
Summer | 49,666 | 49,576 | ||||||||||||||||||||||
Winter | 52,837 | 52,831 | ||||||||||||||||||||||
Nuclear Capacity Factor (%) (6) | 96 | 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. | ||||||||||||||||||||||||
17
Regulated Utilities | |||||||||||||||||||||
Quarterly Highlights | |||||||||||||||||||||
Supplemental Regulated Utilities Electric Information | |||||||||||||||||||||
June 2016 | |||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2016 | 2015 | % Inc.(Dec.) | 2016 | 2015 | % Inc.(Dec.) | ||||||||||||||||
Heating and Cooling Degree Days | |||||||||||||||||||||
Carolinas - Actual | |||||||||||||||||||||
Heating Degree Days | 189 | 150 | 26.0 | % | 1,777 | 2,054 | (13.5 | %) | |||||||||||||
Cooling Degree Days | 573 | 632 | (9.3 | %) | 601 | 636 | (5.5 | %) | |||||||||||||
Variance from Normal | |||||||||||||||||||||
Heating Degree Days | (7.8 | %) | (19.5 | %) | n/a | (6.6 | %) | 11.6 | % | n/a | |||||||||||
Cooling Degree Days | 12.8 | % | 15.3 | % | n/a | 16.5 | % | 14.0 | % | n/a | |||||||||||
Midwest - Actual | |||||||||||||||||||||
Heating Degree Days | 499 | 380 | 31.3 | % | 2,934 | 3,500 | (16.2 | %) | |||||||||||||
Cooling Degree Days | 374 | 378 | (1.1 | %) | 374 | 378 | (1.1 | %) | |||||||||||||
Variance from Normal | |||||||||||||||||||||
Heating Degree Days | 5.7 | % | (10.4 | %) | n/a | (7.2 | %) | 14.6 | % | n/a | |||||||||||
Cooling Degree Days | 14.7 | % | 3.0 | % | n/a | 13.3 | % | 1.3 | % | n/a | |||||||||||
Florida - Actual | |||||||||||||||||||||
Heating Degree Days | — | — | — | % | 401 | 373 | 7.5 | % | |||||||||||||
Cooling Degree Days | 1,112 | 1,256 | (11.5 | %) | 1,311 | 1,490 | (12.0 | %) | |||||||||||||
Variance from Normal | |||||||||||||||||||||
Heating Degree Days | (100.0 | %) | (100.0 | %) | n/a | 1.1 | % | (6.3 | %) | n/a | |||||||||||
Cooling Degree Days | 8.0 | % | 19.3 | % | n/a | 7.9 | % | 21.6 | % | n/a | |||||||||||
18
Duke Energy Carolinas | ||||||||||||||||||||||||
Quarterly Highlights | ||||||||||||||||||||||||
Supplemental Regulated Utilities Electric Information | ||||||||||||||||||||||||
June 2016 | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2016 | 2015 | % Inc.(Dec.) | % Inc.(Dec.) Weather Normal (2) | 2016 | 2015 | % Inc.(Dec.) | % Inc.(Dec.) Weather Normal (2) | |||||||||||||||||
GWh Sales (1) | ||||||||||||||||||||||||
Residential | 5,671 | 5,754 | (1.4 | %) | 13,251 | 14,232 | (6.9 | %) | ||||||||||||||||
General Service | 6,934 | 6,942 | (0.1 | %) | 13,598 | 13,801 | (1.5 | %) | ||||||||||||||||
Industrial | 5,545 | 5,614 | (1.2 | %) | 10,623 | 10,689 | (0.6 | %) | ||||||||||||||||
Other Energy Sales | 76 | 76 | — | % | 152 | 153 | (0.7 | %) | ||||||||||||||||
Unbilled Sales | 685 | 843 | (18.7 | %) | 690 | 354 | 94.9 | % | ||||||||||||||||
Total Regular Electric Sales | 18,911 | 19,229 | (1.7 | %) | (0.4 | %) | 38,314 | 39,229 | (2.3 | %) | (0.1 | %) | ||||||||||||
Special Sales | 1,846 | 2,077 | (11.1 | %) | 4,068 | 4,545 | (10.5 | %) | ||||||||||||||||
Total Consolidated Electric Sales - Duke Energy Carolinas | 20,757 | 21,306 | (2.6 | %) | 42,382 | 43,774 | (3.2 | %) | ||||||||||||||||
Average Number of Customers | ||||||||||||||||||||||||
Residential | 2,143,608 | 2,112,443 | 1.5 | % | 2,141,071 | 2,110,556 | 1.4 | % | ||||||||||||||||
General Service | 348,878 | 344,865 | 1.2 | % | 348,103 | 344,029 | 1.2 | % | ||||||||||||||||
Industrial | 6,301 | 6,446 | (2.2 | %) | 6,317 | 6,459 | (2.2 | %) | ||||||||||||||||
Other Energy Sales | 15,153 | 14,993 | 1.1 | % | 15,143 | 14,974 | 1.1 | % | ||||||||||||||||
Total Regular Sales | 2,513,940 | 2,478,747 | 1.4 | % | 2,510,634 | 2,476,018 | 1.4 | % | ||||||||||||||||
Special Sales | 25 | 24 | 4.2 | % | 24 | 25 | (4.0 | %) | ||||||||||||||||
Total Average Number of Customers - Duke Energy Carolinas | 2,513,965 | 2,478,771 | 1.4 | % | 2,510,658 | 2,476,043 | 1.4 | % | ||||||||||||||||
Sources of Electric Energy (GWh) | ||||||||||||||||||||||||
Generated - Net Output (3) | ||||||||||||||||||||||||
Coal | 5,082 | 5,695 | (10.8 | %) | 10,661 | 13,530 | (21.2 | %) | ||||||||||||||||
Nuclear | 10,809 | 11,803 | (8.4 | %) | 21,802 | 23,119 | (5.7 | %) | ||||||||||||||||
Hydro | 112 | 219 | (48.9 | %) | 837 | 476 | 75.8 | % | ||||||||||||||||
Oil and Natural Gas | 2,691 | 2,758 | (2.4 | %) | 5,677 | 4,991 | 13.7 | % | ||||||||||||||||
Renewable Energy | 4 | 4 | — | % | 7 | 7 | — | % | ||||||||||||||||
Total Generation (4) | 18,698 | 20,479 | (8.7 | %) | 38,984 | 42,123 | (7.5 | %) | ||||||||||||||||
Purchased Power and Net Interchange (5) | 3,448 | 2,135 | 61.5 | % | 6,067 | 4,257 | 42.5 | % | ||||||||||||||||
Total Sources of Energy | 22,146 | 22,614 | (2.1 | %) | 45,051 | 46,380 | (2.9 | %) | ||||||||||||||||
Less: Line Loss and Company Usage | 1,389 | 1,308 | 6.2 | % | 2,669 | 2,606 | 2.4 | % | ||||||||||||||||
Total GWh Sources | 20,757 | 21,306 | (2.6 | %) | 42,382 | 43,774 | (3.2 | %) | ||||||||||||||||
Owned MW Capacity (3) | ||||||||||||||||||||||||
Summer | 19,678 | 19,645 | ||||||||||||||||||||||
Winter | 20,383 | 20,357 | ||||||||||||||||||||||
Nuclear Capacity Factor (%) (6) | 96 | 98 | ||||||||||||||||||||||
Heating and Cooling Degree Days | ||||||||||||||||||||||||
Actual | ||||||||||||||||||||||||
Heating Degree Days | 200 | 163 | 22.7 | % | 1,861 | 2,104 | (11.5 | %) | ||||||||||||||||
Cooling Degree Days | 570 | 623 | (8.5 | %) | 589 | 624 | (5.6 | %) | ||||||||||||||||
Variance from Normal | ||||||||||||||||||||||||
Heating Degree Days | (9.5 | %) | (18.9 | %) | n/a | (6.3 | %) | 9.7 | % | n/a | ||||||||||||||
Cooling Degree Days | 17.3 | % | 18.7 | % | n/a | 19.6 | % | 16.9 | % | 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. | ||||||||||||||||||||||||
19
Duke Energy Progress | ||||||||||||||||||||||||
Quarterly Highlights | ||||||||||||||||||||||||
Supplemental Regulated Utilities Electric Information | ||||||||||||||||||||||||
June 2016 | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2016 | 2015 | % Inc.(Dec.) | % Inc.(Dec.) Weather Normal (2) | 2016 | 2015 | % Inc.(Dec.) | % Inc.(Dec.) Weather Normal (2) | |||||||||||||||||
GWh Sales (1) | ||||||||||||||||||||||||
Residential | 3,597 | 3,673 | (2.1 | %) | 8,597 | 9,440 | (8.9 | %) | ||||||||||||||||
General Service | 3,680 | 3,688 | (0.2 | %) | 7,340 | 7,437 | (1.3 | %) | ||||||||||||||||
Industrial | 2,547 | 2,565 | (0.7 | %) | 4,986 | 5,002 | (0.3 | %) | ||||||||||||||||
Other Energy Sales | 22 | 27 | (18.5 | %) | 46 | 55 | (16.4 | %) | ||||||||||||||||
Unbilled Sales | 345 | 570 | (39.5 | %) | 210 | 129 | 62.8 | % | ||||||||||||||||
Total Regular Electric Sales | 10,191 | 10,523 | (3.2 | %) | (1.3 | %) | 21,179 | 22,063 | (4.0 | %) | (0.5 | %) | ||||||||||||
Special Sales | 6,638 | 4,429 | 49.9 | % | 12,799 | 9,654 | 32.6 | % | ||||||||||||||||
Total Consolidated Electric Sales - Duke Energy Progress | 16,829 | 14,952 | 12.6 | % | 33,978 | 31,717 | 7.1 | % | ||||||||||||||||
Average Number of Customers | ||||||||||||||||||||||||
Residential | 1,289,306 | 1,271,806 | 1.4 | % | 1,287,593 | 1,270,438 | 1.4 | % | ||||||||||||||||
General Service | 228,717 | 225,735 | 1.3 | % | 228,120 | 225,073 | 1.4 | % | ||||||||||||||||
Industrial | 4,137 | 4,229 | (2.2 | %) | 4,148 | 4,229 | (1.9 | %) | ||||||||||||||||
Other Energy Sales | 1,542 | 1,690 | (8.8 | %) | 1,571 | 1,689 | (7.0 | %) | ||||||||||||||||
Total Regular Sales | 1,523,702 | 1,503,460 | 1.3 | % | 1,521,432 | 1,501,429 | 1.3 | % | ||||||||||||||||
Special Sales | 15 | 15 | — | % | 15 | 15 | — | % | ||||||||||||||||
Total Average Number of Customers - Duke Energy Progress | 1,523,717 | 1,503,475 | 1.3 | % | 1,521,447 | 1,501,444 | 1.3 | % | ||||||||||||||||
Sources of Electric Energy (GWh) | ||||||||||||||||||||||||
Generated - Net Output (3) | ||||||||||||||||||||||||
Coal | 2,328 | 3,340 | (30.3 | %) | 4,435 | 7,344 | (39.6 | %) | ||||||||||||||||
Nuclear | 7,800 | 4,919 | 58.6 | % | 14,806 | 10,992 | 34.7 | % | ||||||||||||||||
Hydro | 125 | 152 | (17.8 | %) | 378 | 334 | 13.2 | % | ||||||||||||||||
Oil and Natural Gas | 5,623 | 5,505 | 2.1 | % | 12,095 | 11,326 | 6.8 | % | ||||||||||||||||
Renewable Energy | 41 | — | n/a | 91 | — | n/a | ||||||||||||||||||
Total Generation (4) | 15,917 | 13,916 | 14.4 | % | 31,805 | 29,996 | 6.0 | % | ||||||||||||||||
Purchased Power and Net Interchange (5) | 1,497 | 1,666 | (10.1 | %) | 3,262 | 3,180 | 2.6 | % | ||||||||||||||||
Total Sources of Energy | 17,414 | 15,582 | 11.8 | % | 35,067 | 33,176 | 5.7 | % | ||||||||||||||||
Less: Line Loss and Company Usage | 585 | 630 | (7.1 | %) | 1,089 | 1,459 | (25.4 | %) | ||||||||||||||||
Total GWh Sources | 16,829 | 14,952 | 12.6 | % | 33,978 | 31,717 | 7.1 | % | ||||||||||||||||
Owned MW Capacity (3) | ||||||||||||||||||||||||
Summer | 12,935 | 12,222 | ||||||||||||||||||||||
Winter | 14,034 | 13,319 | ||||||||||||||||||||||
Nuclear Capacity Factor (%) (6) | 96 | 83 | ||||||||||||||||||||||
Heating and Cooling Degree Days | ||||||||||||||||||||||||
Actual | ||||||||||||||||||||||||
Heating Degree Days | 179 | 136 | 31.6 | % | 1,693 | 2,003 | (15.5 | %) | ||||||||||||||||
Cooling Degree Days | 576 | 641 | (10.1 | %) | 612 | 648 | (5.6 | %) | ||||||||||||||||
Variance from Normal | ||||||||||||||||||||||||
Heating Degree Days | (5.3 | %) | (19.0 | %) | n/a | (6.9 | %) | 13.6 | % | n/a | ||||||||||||||
Cooling Degree Days | 8.7 | % | 12.5 | % | n/a | 13.3 | % | 11.5 | % | 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. | ||||||||||||||||||||||||
(6) Statistics reflect 100% of jointly owned stations. | ||||||||||||||||||||||||
20
Duke Energy Florida | ||||||||||||||||||||||||
Quarterly Highlights | ||||||||||||||||||||||||
Supplemental Regulated Utilities Electric Information | ||||||||||||||||||||||||
June 2016 | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2016 | 2015 | % Inc.(Dec.) | % Inc.(Dec.) Weather Normal (2) | 2016 | 2015 | % Inc.(Dec.) | % Inc.(Dec.) Weather Normal (2) | |||||||||||||||||
GWh Sales (1) | ||||||||||||||||||||||||
Residential | 4,872 | 4,944 | (1.5 | %) | 9,045 | 9,048 | — | % | ||||||||||||||||
General Service | 3,820 | 3,857 | (1.0 | %) | 7,061 | 7,092 | (0.4 | %) | ||||||||||||||||
Industrial | 812 | 821 | (1.1 | %) | 1,564 | 1,581 | (1.1 | %) | ||||||||||||||||
Other Energy Sales | 6 | 6 | — | % | 12 | 12 | — | % | ||||||||||||||||
Unbilled Sales | 669 | 679 | (1.5 | %) | 658 | 793 | (17.0 | %) | ||||||||||||||||
Total Regular Electric Sales | 10,179 | 10,307 | (1.2 | %) | 2.2 | % | 18,340 | 18,526 | (1.0 | %) | 1.0 | % | ||||||||||||
Special Sales | 467 | 495 | (5.7 | %) | 762 | 749 | 1.7 | % | ||||||||||||||||
Total Electric Sales - Duke Energy Florida | 10,646 | 10,802 | (1.4 | %) | 19,102 | 19,275 | (0.9 | %) | ||||||||||||||||
Average Number of Customers | ||||||||||||||||||||||||
Residential | 1,546,606 | 1,521,460 | 1.7 | % | 1,544,081 | 1,518,985 | 1.7 | % | ||||||||||||||||
General Service | 195,356 | 193,278 | 1.1 | % | 195,032 | 192,919 | 1.1 | % | ||||||||||||||||
Industrial | 2,182 | 2,245 | (2.8 | %) | 2,192 | 2,251 | (2.6 | %) | ||||||||||||||||
Other Energy Sales | 1,536 | 1,537 | (0.1 | %) | 1,536 | 1,539 | (0.2 | %) | ||||||||||||||||
Total Regular Sales | 1,745,680 | 1,718,520 | 1.6 | % | 1,742,841 | 1,715,694 | 1.6 | % | ||||||||||||||||
Special Sales | 15 | 14 | 7.1 | % | 15 | 15 | — | % | ||||||||||||||||
Total Average Number of Customers - Duke Energy Florida | 1,745,695 | 1,718,534 | 1.6 | % | 1,742,856 | 1,715,709 | 1.6 | % | ||||||||||||||||
Sources of Electric Energy (GWh) | ||||||||||||||||||||||||
Generated - Net Output (3) | ||||||||||||||||||||||||
Coal | 2,331 | 3,044 | (23.4 | %) | 3,782 | 5,197 | (27.2 | %) | ||||||||||||||||
Oil and Natural Gas | 5,638 | 6,430 | (12.3 | %) | 11,761 | 11,913 | (1.3 | %) | ||||||||||||||||
Total Generation (4) | 7,969 | 9,474 | (15.9 | %) | 15,543 | 17,110 | (9.2 | %) | ||||||||||||||||
Purchased Power and Net Interchange (5) | 3,130 | 1,910 | 63.9 | % | 4,639 | 3,294 | 40.8 | % | ||||||||||||||||
Total Sources of Energy | 11,099 | 11,384 | (2.5 | %) | 20,182 | 20,404 | (1.1 | %) | ||||||||||||||||
Less: Line Loss and Company Usage | 453 | 582 | (22.2 | %) | 1,080 | 1,129 | (4.3 | %) | ||||||||||||||||
Total GWh Sources | 10,646 | 10,802 | (1.4 | %) | 19,102 | 19,275 | (0.9 | %) | ||||||||||||||||
Owned MW Capacity (3) | ||||||||||||||||||||||||
Summer | 8,848 | 9,154 | ||||||||||||||||||||||
Winter | 9,735 | 10,120 | ||||||||||||||||||||||
Heating and Cooling Degree Days | ||||||||||||||||||||||||
Actual | ||||||||||||||||||||||||
Heating Degree Days | — | — | — | % | 401 | 373 | 7.5 | % | ||||||||||||||||
Cooling Degree Days | 1,112 | 1,256 | (11.5 | %) | 1,311 | 1,490 | (12.0 | %) | ||||||||||||||||
Variance from Normal | ||||||||||||||||||||||||
Heating Degree Days | (100.0 | %) | (100.0 | %) | n/a | 1.1 | % | (6.3 | %) | n/a | ||||||||||||||
Cooling Degree Days | 8.0 | % | 19.3 | % | n/a | 7.9 | % | 21.6 | % | 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 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. | ||||||||||||||||||||||||
21
Duke Energy Ohio | ||||||||||||||||||||||||
Quarterly Highlights | ||||||||||||||||||||||||
Supplemental Regulated Utilities Electric Information | ||||||||||||||||||||||||
June 2016 | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2016 | 2015 | % Inc.(Dec.) | % Inc.(Dec.) Weather Normal (2) | 2016 | 2015 | % Inc.(Dec.) | % Inc.(Dec.) Weather Normal (2) | |||||||||||||||||
GWh Sales (1) | ||||||||||||||||||||||||
Residential | 1,747 | 1,811 | (3.5 | %) | 4,067 | 4,492 | (9.5 | %) | ||||||||||||||||
General Service | 2,278 | 2,315 | (1.6 | %) | 4,575 | 4,678 | (2.2 | %) | ||||||||||||||||
Industrial | 1,457 | 1,479 | (1.5 | %) | 2,901 | 2,927 | (0.9 | %) | ||||||||||||||||
Other Energy Sales | 28 | 26 | 7.7 | % | 55 | 54 | 1.9 | % | ||||||||||||||||
Unbilled Sales | 212 | 182 | 16.5 | % | 120 | 49 | 144.9 | % | ||||||||||||||||
Total Regular Electric Sales | 5,722 | 5,813 | (1.6 | %) | (1.0 | %) | 11,718 | 12,200 | (4.0 | %) | (1.3 | %) | ||||||||||||
Special Sales | 74 | 420 | (82.4 | %) | 185 | 800 | (76.9 | %) | ||||||||||||||||
Total Electric Sales - Duke Energy Ohio | 5,796 | 6,233 | (7.0 | %) | 11,903 | 13,000 | (8.4 | %) | ||||||||||||||||
Average Number of Customers | ||||||||||||||||||||||||
Residential | 752,249 | 746,005 | 0.8 | % | 752,718 | 746,812 | 0.8 | % | ||||||||||||||||
General Service | 87,543 | 87,200 | 0.4 | % | 87,491 | 87,187 | 0.3 | % | ||||||||||||||||
Industrial | 2,517 | 2,530 | (0.5 | %) | 2,523 | 2,534 | (0.4 | %) | ||||||||||||||||
Other Energy Sales | 3,254 | 3,218 | 1.1 | % | 3,250 | 3,212 | 1.2 | % | ||||||||||||||||
Total Regular Sales | 845,563 | 838,953 | 0.8 | % | 845,982 | 839,745 | 0.7 | % | ||||||||||||||||
Special Sales | 1 | 1 | — | % | 1 | 1 | — | % | ||||||||||||||||
Total Average Number of Customers - Duke Energy Ohio | 845,564 | 838,954 | 0.8 | % | 845,983 | 839,746 | 0.7 | % | ||||||||||||||||
Sources of Electric Energy (GWh) | ||||||||||||||||||||||||
Generated - Net Output (3) | ||||||||||||||||||||||||
Coal | 536 | 1,168 | (54.1 | %) | 1,464 | 2,388 | (38.7 | %) | ||||||||||||||||
Oil and Natural Gas | 10 | 10 | — | % | 11 | 30 | (63.3 | %) | ||||||||||||||||
Total Generation (4) | 546 | 1,178 | (53.7 | %) | 1,475 | 2,418 | (39.0 | %) | ||||||||||||||||
Purchased Power and Net Interchange (5) | 5,931 | 5,496 | 7.9 | % | 11,486 | 11,446 | 0.3 | % | ||||||||||||||||
Total Sources of Energy | 6,477 | 6,674 | (3.0 | %) | 12,961 | 13,864 | (6.5 | %) | ||||||||||||||||
Less: Line Loss and Company Usage | 681 | 441 | 54.4 | % | 1,058 | 864 | 22.5 | % | ||||||||||||||||
Total GWh Sources | 5,796 | 6,233 | (7.0 | %) | 11,903 | 13,000 | (8.4 | %) | ||||||||||||||||
Owned MW Capacity (3) | ||||||||||||||||||||||||
Summer | 1,062 | 1,062 | ||||||||||||||||||||||
Winter | 1,164 | 1,164 | ||||||||||||||||||||||
Heating and Cooling Degree Days | ||||||||||||||||||||||||
Actual | ||||||||||||||||||||||||
Heating Degree Days | 475 | 348 | 36.5 | % | 2,824 | 3,310 | (14.7 | %) | ||||||||||||||||
Cooling Degree Days | 372 | 391 | (4.9 | %) | 372 | 391 | (4.9 | %) | ||||||||||||||||
Variance from Normal | ||||||||||||||||||||||||
Heating Degree Days | 5.8 | % | (14.5 | %) | n/a | (7.2 | %) | 12.1 | % | n/a | ||||||||||||||
Cooling Degree Days | 14.5 | % | 7.7 | % | n/a | 13.3 | % | 6.3 | % | 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. | ||||||||||||||||||||||||
22
Duke Energy Ohio | ||||||||||||||||||||||||
Quarterly Highlights | ||||||||||||||||||||||||
Supplemental Regulated Utilities Gas Information | ||||||||||||||||||||||||
June 2016 | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2016 | 2015 | % Inc.(Dec.) | % Inc.(Dec.) Weather Normal (2) | 2016 | 2015 | % Inc.(Dec.) | % Inc.(Dec.) Weather Normal (2) | |||||||||||||||||
MCF Sales (1) | ||||||||||||||||||||||||
Residential | 4,930,088 | 5,052,315 | (2.4 | %) | 21,627,643 | 27,231,220 | (20.6 | %) | ||||||||||||||||
General Service | 3,487,618 | 3,553,999 | (1.9 | %) | 13,567,296 | 16,625,080 | (18.4 | %) | ||||||||||||||||
Industrial | 1,404,742 | 1,335,427 | 5.2 | % | 3,882,745 | 4,411,288 | (12.0 | %) | ||||||||||||||||
Other Energy Sales | 4,988,355 | 4,538,714 | 9.9 | % | 10,813,639 | 10,754,865 | 0.5 | % | ||||||||||||||||
Unbilled Sales | (2,096,677 | ) | (2,892,000 | ) | 27.5 | % | (2,435,677 | ) | (3,245,000 | ) | 24.9 | % | ||||||||||||
Total Gas Sales - Duke Energy Ohio | 12,714,126 | 11,588,455 | 9.7 | % | 6.2 | % | 47,455,646 | 55,777,453 | (14.9 | %) | (7.7 | %) | ||||||||||||
Average Number of Customers | ||||||||||||||||||||||||
Residential | 477,813 | 474,973 | 0.6 | % | 479,166 | 476,554 | 0.5 | % | ||||||||||||||||
General Service | 42,898 | 43,003 | (0.2 | %) | 44,061 | 44,171 | (0.2 | %) | ||||||||||||||||
Industrial | 1,601 | 1,604 | (0.2 | %) | 1,650 | 1,655 | (0.3 | %) | ||||||||||||||||
Other Energy Sales | 143 | 143 | — | % | 143 | 144 | (0.7 | %) | ||||||||||||||||
Total Average Number of Gas Customers - Duke Energy Ohio | 522,455 | 519,723 | 0.5 | % | 525,020 | 522,524 | 0.5 | % | ||||||||||||||||
Heating and Cooling Degree Days | ||||||||||||||||||||||||
Actual | ||||||||||||||||||||||||
Heating Degree Days | 475 | 348 | 36.5 | % | 2,824 | 3,310 | (14.7 | %) | ||||||||||||||||
Cooling Degree Days | 372 | 391 | (4.9 | %) | 372 | 391 | (4.9 | %) | ||||||||||||||||
Variance from Normal | ||||||||||||||||||||||||
Heating Degree Days | 5.8 | % | (14.5 | %) | n/a | (7.2 | %) | 12.1 | % | n/a | ||||||||||||||
Cooling Degree Days | 14.5 | % | 7.7 | % | n/a | 13.3 | % | 6.3 | % | 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). | ||||||||||||||||||||||||
23
Duke Energy Indiana | ||||||||||||||||||||||||
Quarterly Highlights | ||||||||||||||||||||||||
Supplemental Regulated Utilities Electric Information | ||||||||||||||||||||||||
June 2016 | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2016 | 2015 | % Inc.(Dec.) | % Inc.(Dec.) Weather Normal (2) | 2016 | 2015 | % Inc.(Dec.) | % Inc.(Dec.) Weather Normal (2) | |||||||||||||||||
GWh Sales (1) | ||||||||||||||||||||||||
Residential | 1,798 | 1,807 | (0.5 | %) | 4,387 | 4,807 | (8.7 | %) | ||||||||||||||||
General Service | 1,961 | 1,993 | (1.6 | %) | 3,949 | 4,069 | (2.9 | %) | ||||||||||||||||
Industrial | 2,660 | 2,626 | 1.3 | % | 5,219 | 5,170 | 0.9 | % | ||||||||||||||||
Other Energy Sales | 13 | 14 | (7.1 | %) | 26 | 27 | (3.7 | %) | ||||||||||||||||
Unbilled Sales | 214 | 104 | 105.8 | % | 103 | 7 | 1,371.4 | % | ||||||||||||||||
Total Regular Electric Sales | 6,646 | 6,544 | 1.6 | % | 0.8 | % | 13,684 | 14,080 | (2.8 | %) | (0.6 | %) | ||||||||||||
Special Sales | 1,511 | 1,161 | 30.1 | % | 3,867 | 2,353 | 64.3 | % | ||||||||||||||||
Total Electric Sales - Duke Energy Indiana | 8,157 | 7,705 | 5.9 | % | 17,551 | 16,433 | 6.8 | % | ||||||||||||||||
Average Number of Customers | ||||||||||||||||||||||||
Residential | 706,293 | 696,563 | 1.4 | % | 706,281 | 698,622 | 1.1 | % | ||||||||||||||||
General Service | 100,870 | 100,564 | 0.3 | % | 100,677 | 100,486 | 0.2 | % | ||||||||||||||||
Industrial | 2,727 | 2,709 | 0.7 | % | 2,720 | 2,699 | 0.8 | % | ||||||||||||||||
Other Energy Sales | 1,614 | 1,574 | 2.5 | % | 1,606 | 1,568 | 2.4 | % | ||||||||||||||||
Total Regular Sales | 811,504 | 801,410 | 1.3 | % | 811,284 | 803,375 | 1.0 | % | ||||||||||||||||
Special Sales | 9 | 7 | 28.6 | % | 9 | 8 | 12.5 | % | ||||||||||||||||
Total Average Number of Customers - Duke Energy Indiana | 811,513 | 801,417 | 1.3 | % | 811,293 | 803,383 | 1.0 | % | ||||||||||||||||
Sources of Electric Energy (GWh) | ||||||||||||||||||||||||
Generated - Net Output (3) | ||||||||||||||||||||||||
Coal | 5,491 | 4,716 | 16.4 | % | 13,360 | 10,465 | 27.7 | % | ||||||||||||||||
Hydro | 87 | 68 | 27.9 | % | 156 | 124 | 25.8 | % | ||||||||||||||||
Oil and Natural Gas | 822 | 547 | 50.3 | % | 1,323 | 1,261 | 4.9 | % | ||||||||||||||||
Total Generation (4) | 6,400 | 5,331 | 20.1 | % | 14,839 | 11,850 | 25.2 | % | ||||||||||||||||
Purchased Power and Net Interchange (5) | 2,133 | 2,635 | (19.1 | %) | 3,198 | 5,049 | (36.7 | %) | ||||||||||||||||
Total Sources of Energy | 8,533 | 7,966 | 7.1 | % | 18,037 | 16,899 | 6.7 | % | ||||||||||||||||
Less: Line Loss and Company Usage | 376 | 261 | 44.1 | % | 486 | 466 | 4.3 | % | ||||||||||||||||
Total GWh Sources | 8,157 | 7,705 | 5.9 | % | 17,551 | 16,433 | 6.8 | % | ||||||||||||||||
Owned MW Capacity (3) | ||||||||||||||||||||||||
Summer | 7,143 | 7,493 | ||||||||||||||||||||||
Winter | 7,521 | 7,871 | ||||||||||||||||||||||
Heating and Cooling Degree Days | ||||||||||||||||||||||||
Actual | ||||||||||||||||||||||||
Heating Degree Days | 522 | 411 | 27.0 | % | 3,043 | 3,689 | (17.5 | %) | ||||||||||||||||
Cooling Degree Days | 376 | 364 | 3.3 | % | 376 | 364 | 3.3 | % | ||||||||||||||||
Variance from Normal | ||||||||||||||||||||||||
Heating Degree Days | 6.1 | % | (7.0 | %) | n/a | (7.0 | %) | 16.9 | % | n/a | ||||||||||||||
Cooling Degree Days | 14.6 | % | (1.4 | %) | n/a | 13.4 | % | (2.9 | %) | 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. | ||||||||||||||||||||||||
24
DUKE ENERGY CORPORATION
REPORTED TO ADJUSTED EARNINGS RECONCILIATION
Three Months Ended June 30, 2016
(Dollars in millions, except per-share amounts)
Special Items | ||||||||||||||||||||||||||||
Reported Earnings | Costs to Achieve, Mergers | International Impairment | Cost Savings Initiatives | Discontinued Operations | Total Adjustments | Adjusted Earnings | ||||||||||||||||||||||
SEGMENT INCOME | ||||||||||||||||||||||||||||
Regulated Utilities | $ | 718 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 718 | ||||||||||||||
International Energy | (102 | ) | — | 145 | B | — | — | 145 | 43 | |||||||||||||||||||
Commercial Portfolio | 14 | — | — | — | — | — | 14 | |||||||||||||||||||||
Total Reportable Segment Income | 630 | — | 145 | — | — | 145 | 775 | |||||||||||||||||||||
Other | (120 | ) | 69 | A | — | 15 | C | — | 84 | (36 | ) | |||||||||||||||||
Total Reportable Segment Income and Other Net Expense | 510 | 69 | 145 | 15 | — | 229 | 739 | |||||||||||||||||||||
Discontinued Operations | (1 | ) | — | — | — | 1 | D | 1 | — | |||||||||||||||||||
Net Income Attributable to Duke Energy Corporation | $ | 509 | $ | 69 | $ | 145 | $ | 15 | $ | 1 | $ | 230 | $ | 739 | ||||||||||||||
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC | $ | 0.74 | $ | 0.10 | $ | 0.21 | $ | 0.02 | $ | — | $ | 0.33 | $ | 1.07 | ||||||||||||||
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED | $ | 0.74 | $ | 0.10 | $ | 0.21 | $ | 0.02 | $ | — | $ | 0.33 | $ | 1.07 | ||||||||||||||
A - Net of $42 million tax benefit. Includes $28 million recorded within Operating Expenses and $83 million recorded within Interest Expense on the Condensed Consolidated Statements of Operations. The interest expense is primarily mark-to-market losses related to forward-starting interest rate swaps utilized to manage interest rate exposure for the expected financing of the Piedmont acquisition.
B - Net of $49 million tax benefit. Impairment of certain assets in Central America recorded within Impairment Charges on the Condensed Consolidated Statements of Operations.
C - Net of $9 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Condensed Consolidated Statements of Operations.
D - Recorded in (Loss) Income From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.
Weighted Average Shares (reported and adjusted) - in millions
Basic 689
Diluted 690
25
DUKE ENERGY CORPORATION
REPORTED TO ADJUSTED EARNINGS RECONCILIATION
Six Months Ended June 30, 2016
(Dollars in millions, except per-share amounts)
Special Items | ||||||||||||||||||||||||||||
Reported Earnings | Costs to Achieve, Mergers | International Impairment | Cost Savings Initiatives | Discontinued Operations | Total Adjustments | Adjusted Earnings | ||||||||||||||||||||||
SEGMENT INCOME | ||||||||||||||||||||||||||||
Regulated Utilities | $ | 1,413 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,413 | ||||||||||||||
International Energy | 21 | — | 145 | B | — | — | 145 | 166 | ||||||||||||||||||||
Commercial Portfolio | 41 | — | — | — | — | — | 41 | |||||||||||||||||||||
Total Reportable Segment Income | 1,475 | — | 145 | — | — | 145 | 1,620 | |||||||||||||||||||||
Other | (274 | ) | 143 | A | — | 27 | C | — | 170 | (104 | ) | |||||||||||||||||
Total Reportable Segment Income and Other Net Expense | 1,201 | 143 | 145 | 27 | — | 315 | 1,516 | |||||||||||||||||||||
Discontinued Operations | 2 | — | — | — | (2 | ) | D | (2 | ) | — | ||||||||||||||||||
Net Income Attributable to Duke Energy Corporation | $ | 1,203 | $ | 143 | $ | 145 | $ | 27 | $ | (2 | ) | $ | 313 | $ | 1,516 | |||||||||||||
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC | $ | 1.74 | $ | 0.21 | $ | 0.21 | $ | 0.04 | $ | — | $ | 0.46 | $ | 2.20 | ||||||||||||||
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED | $ | 1.74 | $ | 0.21 | $ | 0.21 | $ | 0.04 | $ | — | $ | 0.46 | $ | 2.20 | ||||||||||||||
A - Net of $88 million tax benefit. Includes $1 million recorded within Operating Revenues, $47 million recorded within Operating Expenses and $183 million recorded within Interest Expense on the Condensed Consolidated Statements of Operations. The interest expense is primarily mark-to-market losses related to forward-starting interest rate swaps utilized to manage interest rate exposure for the expected financing of the Piedmont acquisition.
B - Net of $49 million tax benefit. Impairment of certain assets in Central America recorded within Impairment Charges on the Condensed Consolidated Statements of Operations.
C - Net of $17 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Condensed Consolidated Statements of Operations.
D - Recorded in (Loss) Income From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.
Weighted Average Shares (reported and adjusted) - in millions
Basic 689
Diluted 689
26
DUKE ENERGY CORPORATION
REPORTED TO ADJUSTED EARNINGS RECONCILIATION
Three Months Ended June 30, 2015
(Dollars in millions, except per-share amounts)
Special Items | ||||||||||||||||||||
Reported Earnings | Costs to Achieve, Progress Merger | Discontinued Operations | Total Adjustments | Adjusted Earnings | ||||||||||||||||
SEGMENT INCOME | ||||||||||||||||||||
Regulated Utilities | $ | 632 | $ | — | $ | — | $ | — | $ | 632 | ||||||||||
International Energy | 52 | — | — | — | 52 | |||||||||||||||
Commercial Portfolio | (30 | ) | — | 41 | D | 41 | 11 | |||||||||||||
Total Reportable Segment Income | 654 | — | 41 | 41 | 695 | |||||||||||||||
Other | (51 | ) | 14 | A | — | 14 | (37 | ) | ||||||||||||
Intercompany Eliminations | (3 | ) | — | 3 | C | 3 | — | |||||||||||||
Total Reportable Segment Income and Other Net Expense | 600 | 14 | 44 | 58 | 658 | |||||||||||||||
Discontinued Operations | (57 | ) | — | 57 | B | 57 | — | |||||||||||||
Net Income Attributable to Duke Energy Corporation | $ | 543 | $ | 14 | $ | 101 | $ | 115 | $ | 658 | ||||||||||
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC | $ | 0.78 | $ | 0.02 | $ | 0.15 | $ | 0.17 | $ | 0.95 | ||||||||||
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED | $ | 0.78 | $ | 0.02 | $ | 0.15 | $ | 0.17 | $ | 0.95 | ||||||||||
A - Net of $8 million tax benefit. Recorded within Operating Expenses on the Condensed Consolidated Statements of Operations.
B - Recorded in (Loss) Income From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations, and includes the impact of a litigation reserve related to the nonregulated Midwest generation business.
C - Reverses the impact on eliminations of classifying the nonregulated Midwest generation business as discontinued operations.
D - State tax expense resulting from the completion of the sale of the nonregulated Midwest generation business.
Weighted Average Shares (reported and adjusted) - in millions
Basic 692
Diluted 692
27
DUKE ENERGY CORPORATION
REPORTED TO ADJUSTED EARNINGS RECONCILIATION
Six Months Ended June 30, 2015
(Dollars in millions, except per-share amounts)
Special Items | ||||||||||||||||||||||||
Reported Earnings | Costs to Achieve, Progress Merger | Midwest Generation Operations | Discontinued Operations | Total Adjustments | Adjusted Earnings | |||||||||||||||||||
SEGMENT INCOME | ||||||||||||||||||||||||
Regulated Utilities | $ | 1,406 | $ | — | $ | — | $ | — | $ | — | $ | 1,406 | ||||||||||||
International Energy | 88 | — | — | — | — | 88 | ||||||||||||||||||
Commercial Portfolio | (23 | ) | — | 94 | B | 41 | E | 135 | 112 | |||||||||||||||
Total Reportable Segment Income | 1,471 | — | 94 | 41 | 135 | 1,606 | ||||||||||||||||||
Other | (94 | ) | 27 | A | — | — | 27 | (67 | ) | |||||||||||||||
Intercompany Eliminations | (4 | ) | — | — | 4 | D | 4 | — | ||||||||||||||||
Total Reportable Segment Income and Other Net Expense | 1,373 | 27 | 94 | 45 | 166 | 1,539 | ||||||||||||||||||
Discontinued Operations | 34 | — | (94 | ) | B | 60 | C | (34 | ) | — | ||||||||||||||
Net Income Attributable to Duke Energy Corporation | $ | 1,407 | $ | 27 | $ | — | $ | 105 | $ | 132 | $ | 1,539 | ||||||||||||
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC | $ | 2.01 | $ | 0.04 | $ | — | $ | 0.15 | $ | 0.19 | $ | 2.20 | ||||||||||||
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED | $ | 2.01 | $ | 0.04 | $ | — | $ | 0.15 | $ | 0.19 | $ | 2.20 | ||||||||||||
A - Net of $16 million tax benefit. Recorded within Operating Expenses on the Condensed Consolidated Statements of Operations.
B - Operating results of the nonregulated Midwest generation business that had been classified from discontinued operations after adjustment for special items and economic hedges (net of $53 million tax benefit).
C - Recorded in (Loss) Income From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations, and includes the impact of a litigation reserve related to the nonregulated Midwest generation business.
D - Reverses the impact on eliminations of classifying the nonregulated Midwest generation business as discontinued operations.
E - State tax expense resulting from the completion of the sale of the nonregulated Midwest generation business.
Weighted Average Shares (reported and adjusted) - in millions
Basic 700
Diluted 700
28
DUKE ENERGY CORPORATION
ADJUSTED EFFECTIVE TAX RECONCILIATION
Three and Six Months Ended June 30, 2016
(Dollars in Millions)
Three Months Ended June 30, 2016 | Six Months Ended June 30, 2016 | ||||||||||||||
Balance | Effective Tax Rate | Balance | Effective Tax Rate | ||||||||||||
Reported Income From Continuing Operations Before Income Taxes | $ | 752 | $ | 1,661 | |||||||||||
Costs to Achieve, Mergers | 111 | 231 | |||||||||||||
International Impairment | 194 | 194 | |||||||||||||
Cost Savings Initiatives | 24 | 44 | |||||||||||||
Noncontrolling interests | (3 | ) | (8 | ) | |||||||||||
Adjusted Pretax Income | $ | 1,078 | $ | 2,122 | |||||||||||
Reported Income Tax Expense From Continuing Operations | $ | 239 | 31.8 | % | $ | 452 | 27.2 | % | |||||||
Costs to Achieve, Mergers | 42 | 88 | |||||||||||||
International Impairment | 49 | 49 | |||||||||||||
Cost Savings Initiatives | 9 | 17 | |||||||||||||
Adjusted Tax Expense | $ | 339 | 31.4 | % | * | $ | 606 | 28.6 | % | * | |||||
*Adjusted effective tax rate is a non-GAAP financial measure as the rate is calculated using pretax earnings and income tax expense, both adjusted for the impact of special items. The most directly comparable GAAP measure for adjusted effective tax rate is reported effective tax rate, which includes the impact of special items. | |||||||||||||||
29
DUKE ENERGY CORPORATION
ADJUSTED EFFECTIVE TAX RECONCILIATION
Three and Six Months Ended June 30, 2015
(Dollars in Millions)
Three Months Ended June 30, 2015 | Six Months Ended June 30, 2015 | ||||||||||||||
Balance | Effective Tax Rate | Balance | Effective Tax Rate | ||||||||||||
Reported Income From Continuing Operations Before Income Taxes | $ | 938 | $ | 2,078 | |||||||||||
Costs to Achieve, Progress Energy Merger | 22 | 43 | |||||||||||||
Midwest Generation Operations | — | 147 | |||||||||||||
Noncontrolling Interests | (4 | ) | (7 | ) | |||||||||||
Intercompany Eliminations | 2 | 4 | |||||||||||||
Adjusted Pretax Income | $ | 958 | $ | 2,265 | |||||||||||
Reported Income Tax Expense From Continuing Operations | $ | 334 | 35.6 | % | $ | 698 | 33.6 | % | |||||||
Tax Adjustment Related to Midwest Generation Sale | (41 | ) | (41 | ) | |||||||||||
Midwest Generation Operations | — | 53 | |||||||||||||
Costs to Achieve, Progress Energy Merger | 8 | 16 | |||||||||||||
Intercompany Eliminations | (1 | ) | — | ||||||||||||
Adjusted Tax Expense | $ | 300 | 31.3 | % | * | $ | 726 | 32.1 | % | * | |||||
*Adjusted effective tax rate is a non-GAAP financial measure as the rate is calculated using pretax earnings and income tax expense, both adjusted for the impact of special items. The most directly comparable GAAP measure for adjusted effective tax rate is reported effective tax rate, which includes the impact of special items. | |||||||||||||||
30
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Duke Energy (DUK) PT Raised to $95 at Morgan Stanley
- TILT Sets First Quarter 2024 Conference Call for May 15 at 5:00 p.m. ET
- Duke Energy Florida's tree care practices prevent outages, earn 18th consecutive year of national recognition
Create E-mail Alert Related Categories
SEC FilingsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
