CHARLOTTE, N.C., Feb. 16, 2017 /PRNewswire/ --
- GAAP reported diluted earnings per share (EPS) were $3.11 in 2016, compared to $4.05 in 2015; adjusted diluted EPS was $4.69 for 2016 compared to $4.54 for 2015
- Company achieves the high end of its 2016 adjusted diluted EPS guidance range
- 2017 adjusted diluted EPS guidance range set at $4.50 to $4.70
- Five-year growth capital plan increased by approximately 25 percent to $37 billion
Duke Energy today announced 2016 full-year reported diluted EPS, prepared in accordance with Generally Accepted Accounting Principles (GAAP) of $3.11, compared to $4.05 for the full-year 2015. Duke Energy's full-year 2016 adjusted diluted EPS was $4.69, compared to $4.54 for full-year 2015.
Adjusted diluted EPS excludes the impact of certain items included in GAAP reported diluted EPS. Amounts excluded from adjusted diluted EPS are primarily costs to achieve mergers, certain severance charges, asset impairments, a 2015 charge associated with the Edwardsport IGCC regulatory settlement, and the fourth quarter 2016 loss on sale of International Energy, primarily related to the recognition of cumulative currency translation adjustment losses.
Full-year 2016 adjusted results were driven by favorable weather, strong cost control and benefits from an early close of the Piedmont Natural Gas acquisition, which helped to offset significant storm costs and higher interest expense.
"2016 was a transformational year for Duke Energy as we acquired Piedmont Natural Gas and exited our International business, positioning the company for more consistent earnings and cash flow growth," said Lynn Good, Duke Energy chairman, president and CEO. "We continue to advance our long-term growth strategy to modernize the energy grid, generate cleaner energy and expand natural gas infrastructure. Our employees' commitment to industry-leading operational and safety performance, combined with our unwavering focus on cost management, enabled us to achieve financial results at the high end of our guidance range.
"Our strategy is producing results. By investing in infrastructure our customers value and delivering sustainable growth for our investors, we are confident we will achieve strong results in 2017 and beyond," Good said.
Duke Energy reported a fourth quarter 2016 GAAP loss per share of 33 cents, compared to earnings per share of 69 cents for fourth quarter 2015 primarily related to the loss on the sale of International Energy. Fourth quarter 2016 adjusted diluted EPS was 81 cents, compared to 87 cents for fourth quarter 2015.
As expected, fourth quarter adjusted results were impacted by higher planned O&M expenses and higher interest expense, partially offset by Piedmont's earnings contribution, net of financing costs.
The company has set its 2017 adjusted diluted EPS guidance range of $4.50 to $4.70, and extended its long-term adjusted diluted EPS growth rate of 4 to 6 percent to 2021. The growth rate is anchored to the midpoint of the 2017 adjusted diluted EPS guidance range, or $4.60 per share. The long-term growth rate is supported by an expanded $37 billion growth capital plan, representing an increase of approximately 25 percent from the previous five-year growth capital plan.
Business segment results
In addition to the following summary of fourth quarter 2016 business segment performance, comprehensive tables with detailed earnings per share drivers for the fourth quarter and full year 2016, compared to prior year, are provided on pages 15 and 16, respectively.
The discussion below of the fourth-quarter results includes both GAAP segment income and adjusted segment income, which is a non-GAAP financial measure. The tables on pages 24 through 27 present a reconciliation of GAAP reported results to adjusted results.
Due to the Piedmont acquisition and the sale of International Energy in the fourth quarter of 2016, Duke Energy's segment structure has been realigned to include the following segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure and Commercial Renewables. The remainder of Duke Energy's operations is presented as Other. Other now includes the results of National Methanol Company (NMC), previously included in the International Energy segment, and the results of the Midwest Generation business that was sold in 2015, previously included in the former Commercial Portfolio segment.
Prior periods have been recast to conform to the current segment structure.
Electric Utilities and Infrastructure
On a reported basis, Electric Utilities and Infrastructure recognized fourth quarter 2016 segment income of $483 million, compared to $569 million in the fourth quarter of 2015.
On an adjusted basis, Electric Utilities and Infrastructure recognized fourth quarter 2016 adjusted segment income of $483 million, compared to $588 million in the fourth quarter of 2015. Adjusted diluted EPS was lower by $0.15 per share, excluding a $0.01 decrease due to the common stock issuance of 10.6 million shares used to fund a portion of the Piedmont acquisition.
Lower quarterly results at Electric Utilities and Infrastructure were primarily driven by:
- Higher O&M expenses (-$0.08 per share), primarily due to higher planned spending
- Higher effective tax rate (-$0.06 per share) resulting from a prior year benefit
- Higher interest expense (-$0.03 per share) related to additional debt outstanding
- Higher depreciation and amortization (-$0.03 per share) from additional plant in service
These unfavorable drivers were partially offset by:
- Favorable weather (+$0.03 per share), net of estimated volume impacts of Hurricane Matthew (-$0.02 cents per share)
- Higher AFUDC equity (+$0.02 per share) due to increased capital investments
Gas Utilities and Infrastructure
Gas Utilities and Infrastructure recognized fourth quarter 2016 reported and adjusted segment income of $89 million, compared to $14 million in the fourth quarter of 2015, an increase of $0.11 per share.
Higher quarterly results at Gas Utilities and Infrastructure were primarily driven by:
- Contribution from Piedmont Natural Gas (+$0.10 per share), subsequent to the acquisition in October 2016 and before share dilution and debt financing costs which are included in Other
- Higher earnings from midstream pipeline investments (+$0.01 per share), primarily the Atlantic Coast Pipeline
Commercial Renewables
On a reported basis, Commercial Renewables recognized fourth quarter 2016 segment income of $10 million, compared to $17 million in the fourth quarter of 2015.
On an adjusted basis, Commercial Renewables recognized fourth quarter 2016 adjusted segment income of $10 million, compared to $19 million in the fourth quarter 2015, a decrease of $0.01 per share.
Lower quarterly results at Commercial Renewables were primarily driven by lower investment tax credits due to lower solar investments, partially offset by higher production tax credits from additional wind facilities placed in service.
Other
Other primarily includes corporate interest expense not allocated to the business units, results from Duke Energy's captive insurance company, and other investments including National Methanol Company, an equity method investment, and the results of the Midwest Generation business that was sold in 2015, previously included in the former Commercial Portfolio segment.
On a reported basis, Other recognized fourth quarter 2016 net expense of $209 million, compared to net expense of $170 million in the fourth quarter of 2015. In addition to the drivers outlined below, quarterly results were impacted by higher costs to achieve mergers, partially offset by lower charges related to cost savings initiatives. These charges were treated as special items and therefore excluded from adjusted earnings.
On an adjusted basis, Other recognized fourth quarter 2016 adjusted net expense of $57 million, compared to adjusted net expense of $75 million in the fourth quarter of 2015, an improvement of $0.02 per share. The decreased net expense was primarily driven by a change in effective tax rate due to an unfavorable tax adjustment in the prior year (+$0.07 per share) partially offset by higher interest expense in 2016 (-$0.03 per share) primarily resulting from the Piedmont Natural Gas acquisition financing.
Duke Energy's consolidated reported effective tax rate for fourth quarter 2016 was 26.6 percent, compared to 29.2 percent in the fourth quarter of 2015. The consolidated adjusted effective tax rate for fourth quarter 2016 was 30.4 percent, compared to 31.4 percent in 2015. Adjusted effective tax rate is a non-GAAP financial measure. The tables on pages 28 and 29 present a reconciliation of the GAAP reported effective tax rate to the adjusted effective tax rate.
Discontinued Operations
For the fourth quarter of 2016, Duke Energy's GAAP reported Loss From Discontinued Operations, net of tax includes a loss on the sale of the International business and other transaction-related costs, partially offset by the operating results of the International business prior to the sale of $40 million. The operating results of $40 million were included in Duke Energy's adjusted earnings for the fourth quarter.
Earnings conference call for analysts
An earnings conference call for analysts is scheduled for 10 a.m. ET today. In addition to discussing the fourth quarter and year-end 2016 financial results, the company will provide its 2017 adjusted diluted earnings per share guidance range 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 888-487-0354 in the United States or 719-457-2506 outside the United States. The confirmation code is 1359293. Please call in 10 to 15 minutes prior to the scheduled start time.
A replay of the conference call will be available until 1 p.m. ET, Feb. 24, 2017, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 1359293. An audio replay and transcript will also be available by accessing the investors' section of the company's website.
Special Items and Non-GAAP Reconciliation
The following tables present a reconciliation of GAAP reported to adjusted diluted EPS for fourth quarter and full-year 2016 and 2015 financial results:
(In millions, except per-share amounts) |
After-Tax |
4Q 2016 |
4Q 2015 |
||||
Diluted EPS, as reported |
$ |
(0.33) |
$ |
0.69 |
|||
Adjustments to reported EPS: |
|||||||
Fourth Quarter 2016 |
|||||||
Costs to achieve mergers |
$ |
134 |
0.19 |
||||
Cost saving initiatives |
18 |
0.03 |
|||||
Discontinued operations(a) |
640 |
0.92 |
|||||
Fourth Quarter 2015 |
|||||||
Costs to achieve mergers |
18 |
0.03 |
|||||
Ash basin settlement |
7 |
0.01 |
|||||
Cost savings initiatives |
88 |
0.13 |
|||||
Discontinued operations(b) |
9 |
0.01 |
|||||
Total adjustments |
$ |
1.14 |
$ |
0.18 |
|||
Diluted EPS, adjusted |
$ |
0.81 |
$ |
0.87 |
|||
(a) Includes a loss on sale of the International Disposal Group. Represents the GAAP reported Loss from Discontinued Operations less the International Disposal Group operating results, which are included in adjusted earnings. |
|||||||
(b) Represents the GAAP reported Loss from Discontinued Operations less the International Disposal Group operating results, which are included in adjusted earnings. |
(In millions, except per-share amounts) |
After-Tax |
Full-Year |
Full- Year |
||||
Diluted EPS, as reported |
$ |
3.11 |
$ |
4.05 |
|||
Adjustments to reported EPS: |
|||||||
Full-Year 2016 |
|||||||
Costs to achieve mergers |
$ |
329 |
0.48 |
||||
Cost saving initiatives |
57 |
0.08 |
|||||
Commercial Renewables impairment |
45 |
0.07 |
|||||
Discontinued operations(a) |
661 |
0.95 |
|||||
Full-Year 2015 |
|||||||
Costs to achieve mergers |
60 |
0.09 |
|||||
Edwardsport settlement |
58 |
0.08 |
|||||
Ash basin settlement and penalties |
11 |
0.02 |
|||||
Cost savings initiatives |
88 |
0.13 |
|||||
Discontinued operations(b) |
119 |
0.17 |
|||||
Total adjustments |
$ |
1.58 |
$ |
0.49 |
|||
Diluted EPS, adjusted |
$ |
4.69 |
$ |
4.54 |
|||
(a) Includes a loss on sale of the International Disposal Group. Represents the GAAP reported Loss from Discontinued Operations, less the International Disposal Group operating results, which are included in adjusted earnings. |
|||||||
(b) Includes the impact of a litigation reserve related to the Midwest Generation Disposal Group. Represents i) GAAP reported Income from Discontinued Operations, less the International Disposal Group operating results and Midwest Generation Disposal Group operating results, which are included in adjusted earnings, and ii) a state tax charge resulting from the completion of the sale of the Midwest Generation Disposal Group but not reported as discontinued operations. |
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 attributable to Duke Energy, adjusted for the dollar and per-share impact of special items. As discussed below, special items include certain charges and credits, which management believes are not indicative of Duke Energy's ongoing performance. Management believes the presentation of adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them with an additional relevant comparison of Duke Energy's performance across periods.
Management uses these non-GAAP financial measures for planning and forecasting, and for reporting financial results to the Duke Energy Board of Directors, employees, stockholders, analysts and investors. Adjusted diluted EPS is also used as a basis for employee incentive bonuses. The most directly comparable GAAP measures for adjusted earnings and adjusted diluted EPS are Net Income Attributable to Duke Energy Corporation and Diluted EPS Attributable to Duke Energy Corporation common stockholders.
Special items included in the periods presented include the following:
- Costs to achieve mergers represent charges that result from potential or completed strategic acquisitions.
- Cost savings initiatives represents severance charges related to company-wide initiatives to standardize processes and systems, leverage technology and workforce optimization.
- Commercial Renewables Impairment and Asset impairment represent other-than-temporary impairments.
- Edwardsport Settlement and Ash Basin Settlement and Penalties represent charges related to Plea Agreements and settlement agreements with regulators and other governmental entities.
Adjusted earnings also include the operating results of the nonregulated Midwest generation business and Duke Energy Retail Sales (collectively, the Midwest Generation Disposal Group) and the International Disposal Group, which have been classified as discontinued operations. Management believes inclusion of the operating results of the Disposal Groups within adjusted earnings and adjusted diluted EPS results is a better reflection of Duke Energy's financial performance during the period.
Due to the forward-looking nature of any forecasted adjusted earnings guidance, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items for future periods (such as legal settlements, the impact of regulatory orders, or asset impairments).
Management evaluates segment performance based on segment income and other net expense. Segment income is defined as income from continuing operations attributable to Duke Energy. Segment income includes intercompany revenues and expenses that are eliminated in the Consolidated Financial Statements. Management also uses adjusted segment income as a measure of historical and anticipated future segment performance. Adjusted segment income is a non-GAAP financial measure, as it is based upon segment income adjusted for special items, which are discussed above. Management believes the presentation of adjusted segment income provides useful information to investors, as it provides them with an additional relevant comparison of a segment's performance across periods. The most directly comparable GAAP measure for adjusted segment income or adjusted other net expense is segment income and other net expense.
Due to the forward-looking nature of any forecasted adjusted segment income or adjusted other net expense and any related growth rates for future periods, information to reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures is not available at this time, as the company is unable to forecast all special items 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 companies may not calculate the measures in the same manner.
Duke Energy, one of the largest electric power holding companies in the United States, supplies and delivers electricity to approximately 7.4 million customers in the Southeast and Midwest, representing a population of approximately 24 million people. The company also distributes natural gas to more than 1.5 million customers in the Carolinas, Ohio, Kentucky and Tennessee. Its commercial business operates a growing renewable energy portfolio and transmission infrastructure across 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.
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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 laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate; the ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations and costs related to significant weather events, and to 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; federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and distributed generation technologies, such as rooftop solar and battery storage, in our service territories could result in customers leaving the electric distribution system, excess generation resources as well as stranded costs; advancements in technology; additional competition in electric and gas markets and continued industry consolidation; 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, including extreme weather associated with climate change; the ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources; the ability to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business; operational interruptions to our gas distribution and transmission activities; the availability of adequate interstate pipeline transportation capacity and natural gas supply; 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; the credit ratings may be different from what the company and its subsidiaries expect; 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; substantial revision to the U.S. tax code, such as changes to the corporate tax rate or a material change in the deductibility of interest; the impact of potential goodwill impairments; the ability to successfully complete future merger, acquisition or divestiture plans; and the ability to successfully integrate the natural gas businesses following the acquisition of Piedmont Natural Gas Company, Inc. and realize anticipated benefits.
Additional risks and uncertainties are identified and discussed in Duke Energy's and its subsidiaries' reports filed with the SEC and available at the SEC's website at www.sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made; Duke Energy expressly disclaims an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Media Contact: Catherine Butler
24-Hour: 800.559.3853
Analysts: Mike Callahan
Office: 704.382.0459
December 2016 |
|||||||||||||||
QUARTERLY HIGHLIGHTS |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Three Months Ended |
Years Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
(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 |
$ |
0.53 |
$ |
0.62 |
$ |
3.71 |
$ |
3.80 |
|||||||
Diluted |
$ |
0.53 |
$ |
0.62 |
$ |
3.71 |
$ |
3.80 |
|||||||
(Loss) Income from discontinued operations attributable to Duke Energy |
|||||||||||||||
Basic |
$ |
(0.86) |
$ |
0.07 |
$ |
(0.60) |
$ |
0.25 |
|||||||
Diluted |
$ |
(0.86) |
$ |
0.07 |
$ |
(0.60) |
$ |
0.25 |
|||||||
Net (loss) income attributable to Duke Energy Corporation common stockholders |
|||||||||||||||
Basic |
$ |
(0.33) |
$ |
0.69 |
$ |
3.11 |
$ |
4.05 |
|||||||
Diluted |
$ |
(0.33) |
$ |
0.69 |
$ |
3.11 |
$ |
4.05 |
|||||||
Weighted average shares outstanding |
|||||||||||||||
Basic |
699 |
688 |
691 |
694 |
|||||||||||
Diluted |
699 |
688 |
691 |
694 |
|||||||||||
INCOME (LOSS) BY BUSINESS SEGMENT |
|||||||||||||||
Electric Utilities and Infrastructure(a) |
$ |
483 |
$ |
569 |
$ |
3,040 |
$ |
2,819 |
|||||||
Gas Utilities and Infrastructure(b) |
89 |
14 |
152 |
73 |
|||||||||||
Commercial Renewables(c) |
10 |
17 |
23 |
52 |
|||||||||||
Total Reportable Segment Income |
582 |
600 |
3,215 |
2,944 |
|||||||||||
Other(d)(e)(f)(g) |
(209) |
(170) |
(645) |
(299) |
|||||||||||
Intercompany Eliminations |
1 |
— |
1 |
— |
|||||||||||
(Loss) Income from Discontinued Operations, net of tax(h) |
(601) |
47 |
(419) |
171 |
|||||||||||
Net (Loss) Income Attributable to Duke Energy Corporation |
$ |
(227) |
$ |
477 |
$ |
2,152 |
$ |
2,816 |
|||||||
CAPITALIZATION |
|||||||||||||||
Total Common Equity (%) |
45% |
48% |
|||||||||||||
Total Debt (%) |
55% |
52% |
|||||||||||||
Total Debt |
$ |
50,382 |
$ |
42,501 |
|||||||||||
Book Value Per Share |
$ |
58.63 |
$ |
57.78 |
|||||||||||
Actual Shares Outstanding |
700 |
688 |
|||||||||||||
CAPITAL AND INVESTMENT EXPENDITURES |
|||||||||||||||
Electric Utilities and Infrastructure(i) |
$ |
2,070 |
$ |
1,721 |
$ |
6,649 |
$ |
6,852 |
|||||||
Gas Utilities and Infrastructure(j) |
5,242 |
72 |
5,519 |
234 |
|||||||||||
Commercial Renewables |
428 |
343 |
857 |
1,019 |
|||||||||||
Other(k) |
124 |
59 |
190 |
258 |
|||||||||||
Total Capital and Investment Expenditures |
$ |
7,864 |
$ |
2,195 |
$ |
13,215 |
$ |
8,363 |
|||||||
Note: Prior period amounts have been restated to conform to the current segment structure. |
|||||||||||||||
(a) Includes a charge of $58 million (net of tax of $35 million) related to the Edwardsport settlement for the year ended December 31, 2015. |
|||||||||||||||
(b) Includes $67 million of Piedmont's earnings for the three months and year ended December 31, 2016. |
|||||||||||||||
(c) Includes an impairment charge of $45 million (net of tax of $26 million) for the year ended December 31, 2016, related to certain equity method investments in wind projects. |
|||||||||||||||
(d) Includes costs to achieve mergers of $134 million (net of tax of $74 million) for the three months ended December 31, 2016, and $329 million (net of tax of $194 million) for the year ended December 31, 2016. |
|||||||||||||||
(e) Includes costs to achieve mergers of $60 million (net of tax of $37 million) for the year ended December 31, 2015. |
|||||||||||||||
(f) Includes a charge of $57 million (net of tax of $35 million) for the year ended December 31, 2016, primarily consisting of severance expense related to cost savings initiatives. |
|||||||||||||||
(g) Includes a charge of $77 million (net of tax of $47 million) for the three months and year ended December 31, 2015, primarily consisting of severance expense related to cost savings initiatives. |
|||||||||||||||
(h) Includes a loss on the sale of the International Disposal Group of $640 million (including tax charges of $126 million) for the three months and year ended December 31, 2016. |
|||||||||||||||
(i) Includes $1.25 billion related to the NCEMPA acquisition for the year ended December 31, 2015. |
|||||||||||||||
(j) Includes $5 billion related to the Piedmont acquisition for the three months and year ended December 31, 2016. |
|||||||||||||||
(k) Includes capital expenditures of the International Disposal Group prior to the sale. |
December 2016 |
|||||||||||||||
QUARTERLY HIGHLIGHTS |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Three Months Ended |
Years Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
(In millions) |
2016 |
2015 |
2016 |
2015 |
|||||||||||
ELECTRIC UTILITIES AND INFRASTRUCTURE |
|||||||||||||||
Operating Revenues |
$ |
4,936 |
$ |
4,851 |
$ |
21,366 |
$ |
21,521 |
|||||||
Operating Expenses |
3,950 |
3,818 |
15,821 |
16,295 |
|||||||||||
(Loss) Gains on Sales of Other Assets and Other, net |
(3) |
2 |
— |
5 |
|||||||||||
Operating Income |
983 |
1,035 |
5,545 |
5,231 |
|||||||||||
Other Income and Expenses |
88 |
76 |
303 |
264 |
|||||||||||
Interest Expense |
307 |
263 |
1,136 |
1,074 |
|||||||||||
Income Before Income Taxes |
764 |
848 |
4,712 |
4,421 |
|||||||||||
Income Tax Expense |
281 |
279 |
1,672 |
1,602 |
|||||||||||
Segment Income |
$ |
483 |
$ |
569 |
$ |
3,040 |
$ |
2,819 |
|||||||
Depreciation and Amortization |
$ |
758 |
$ |
698 |
$ |
2,897 |
$ |
2,735 |
|||||||
GAS UTILITIES AND INFRASTRUCTURE |
|||||||||||||||
Operating Revenues |
$ |
543 |
$ |
122 |
$ |
901 |
$ |
541 |
|||||||
Operating Expenses |
379 |
93 |
636 |
408 |
|||||||||||
(Loss) Gains on Sales of Other Assets and Other, net |
(1) |
(1) |
(1) |
6 |
|||||||||||
Operating Income |
163 |
28 |
264 |
139 |
|||||||||||
Other Income and Expenses |
11 |
2 |
24 |
3 |
|||||||||||
Interest Expense |
27 |
6 |
46 |
25 |
|||||||||||
Income Before Income Taxes |
147 |
24 |
242 |
117 |
|||||||||||
Income Tax Expense |
58 |
10 |
90 |
44 |
|||||||||||
Segment Income |
$ |
89 |
$ |
14 |
$ |
152 |
$ |
73 |
|||||||
Depreciation and Amortization |
$ |
56 |
$ |
20 |
$ |
115 |
$ |
79 |
|||||||
COMMERCIAL RENEWABLES |
|||||||||||||||
Operating Revenues |
$ |
119 |
$ |
86 |
$ |
484 |
$ |
286 |
|||||||
Operating Expenses |
123 |
96 |
492 |
322 |
|||||||||||
Gains (Loss) on Sales of Other Assets and Other, net |
1 |
(5) |
5 |
1 |
|||||||||||
Operating Loss |
(3) |
(15) |
(3) |
(35) |
|||||||||||
Other Income and Expenses |
(5) |
6 |
(83) |
2 |
|||||||||||
Interest Expense |
15 |
11 |
53 |
44 |
|||||||||||
Loss Before Income Taxes |
(23) |
(20) |
(139) |
(77) |
|||||||||||
Income Tax Benefit |
(33) |
(36) |
(160) |
(128) |
|||||||||||
Less: Loss Attributable to Noncontrolling Interests |
— |
(1) |
(2) |
(1) |
|||||||||||
Segment Income |
$ |
10 |
$ |
17 |
$ |
23 |
$ |
52 |
|||||||
Depreciation and Amortization |
$ |
34 |
$ |
27 |
$ |
130 |
$ |
104 |
|||||||
OTHER |
|||||||||||||||
Operating Revenues |
$ |
26 |
$ |
45 |
$ |
117 |
$ |
135 |
|||||||
Operating Expenses |
287 |
206 |
604 |
409 |
|||||||||||
Gains on Sales of Other Assets and Other, net |
9 |
3 |
23 |
18 |
|||||||||||
Operating Loss |
(252) |
(158) |
(464) |
(256) |
|||||||||||
Other Income and Expenses |
15 |
25 |
75 |
98 |
|||||||||||
Interest Expense |
140 |
108 |
693 |
393 |
|||||||||||
Loss Before Income Taxes |
(377) |
(241) |
(1,082) |
(551) |
|||||||||||
Income Tax Benefit |
(170) |
(74) |
(446) |
(262) |
|||||||||||
Less: Income Attributable to Noncontrolling Interests |
2 |
3 |
9 |
10 |
|||||||||||
Other Net Expense |
$ |
(209) |
$ |
(170) |
$ |
(645) |
$ |
(299) |
|||||||
Depreciation and Amortization |
$ |
44 |
$ |
36 |
$ |
152 |
$ |
135 |
|||||||
Note: Prior period amounts have been restated to conform to the current segment structure. |
DUKE ENERGY CORPORATION |
|||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||
(Unaudited) |
|||||||||||
(In millions, except per-share amounts) |
|||||||||||
Years Ended December 31, |
|||||||||||
2016 |
2015 |
2014 |
|||||||||
Operating Revenues |
|||||||||||
Regulated electric |
$ |
21,221 |
$ |
21,379 |
$ |
21,550 |
|||||
Nonregulated electric and other |
659 |
456 |
386 |
||||||||
Regulated natural gas |
863 |
536 |
573 |
||||||||
Total operating revenues |
22,743 |
22,371 |
22,509 |
||||||||
Operating Expenses |
|||||||||||
Fuel used in electric generation and purchased power |
6,625 |
7,355 |
7,732 |
||||||||
Cost of natural gas |
265 |
141 |
185 |
||||||||
Operation, maintenance and other |
6,085 |
5,539 |
5,506 |
||||||||
Depreciation and amortization |
3,294 |
3,053 |
2,969 |
||||||||
Property and other taxes |
1,142 |
1,129 |
1,204 |
||||||||
Impairment charges |
18 |
106 |
81 |
||||||||
Total operating expenses |
17,429 |
17,323 |
17,677 |
||||||||
Gains on Sales of Other Assets and Other, net |
27 |
30 |
10 |
||||||||
Operating Income |
5,341 |
5,078 |
4,842 |
||||||||
Other Income and Expenses |
|||||||||||
Equity in earnings (losses) of unconsolidated affiliates |
(15) |
69 |
130 |
||||||||
Other income and expenses, net |
324 |
290 |
320 |
||||||||
Total other income and expenses |
309 |
359 |
450 |
||||||||
Interest Expense |
1,916 |
1,527 |
1,529 |
||||||||
Income From Continuing Operations Before Income Taxes |
3,734 |
3,910 |
3,763 |
||||||||
Income Tax Expense from Continuing Operations |
1,156 |
1,256 |
1,225 |
||||||||
Income From Continuing Operations |
2,578 |
2,654 |
2,538 |
||||||||
(Loss) Income From Discontinued Operations, net of tax |
(408) |
177 |
(649) |
||||||||
Net Income |
2,170 |
2,831 |
1,889 |
||||||||
Less: Net Income Attributable to Noncontrolling Interests |
18 |
15 |
6 |
||||||||
Net Income Attributable to Duke Energy Corporation |
$ |
2,152 |
$ |
2,816 |
$ |
1,883 |
|||||
Earnings Per Share - Basic and Diluted |
|||||||||||
Income from continuing operations attributable to Duke Energy Corporation common stockholders |
|||||||||||
Basic |
$ |
3.71 |
$ |
3.80 |
$ |
3.58 |
|||||
Diluted |
$ |
3.71 |
$ |
3.80 |
$ |
3.58 |
|||||
(Loss) Income from discontinued operations attributable to Duke Energy Corporation common stockholders |
|||||||||||
Basic |
$ |
(0.60) |
$ |
0.25 |
$ |
(0.92) |
|||||
Diluted |
$ |
(0.60) |
$ |
0.25 |
$ |
(0.92) |
|||||
Net income attributable to Duke Energy Corporation common stockholders |
|||||||||||
Basic |
$ |
3.11 |
$ |
4.05 |
$ |
2.66 |
|||||
Diluted |
$ |
3.11 |
$ |
4.05 |
$ |
2.66 |
|||||
Weighted average shares outstanding |
|||||||||||
Basic |
691 |
694 |
707 |
||||||||
Diluted |
691 |
694 |
707 |
DUKE ENERGY CORPORATION |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
(in millions) |
December 31, 2016 |
December 31, 2015 |
||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ |
392 |
$ |
383 |
||||
Receivables (net of allowance for doubtful accounts of $14 at 2016 and $12 at 2015) |
751 |
515 |
||||||
Receivables of VIEs (net of allowance for doubtful accounts of $54 at 2016 and $53 at 2015) |
1,893 |
1,748 |
||||||
Inventory |
3,522 |
3,746 |
||||||
Assets held for sale |
— |
746 |
||||||
Regulatory assets (includes $50 related to VIEs at 2016) |
1,023 |
877 |
||||||
Other |
458 |
307 |
||||||
Total current assets |
8,039 |
8,322 |
||||||
Investments and Other Assets |
||||||||
Investments in equity method unconsolidated affiliates |
925 |
499 |
||||||
Nuclear decommissioning trust funds |
6,205 |
5,825 |
||||||
Goodwill |
19,425 |
16,072 |
||||||
Assets held for sale |
— |
2,413 |
||||||
Other |
2,752 |
2,830 |
||||||
Total investments and other assets |
29,307 |
27,639 |
||||||
Property, Plant and Equipment |
||||||||
Cost |
121,397 |
109,967 |
||||||
Accumulated depreciation and amortization |
(39,406) |
(36,736) |
||||||
Generation facilities to be retired, net |
529 |
548 |
||||||
Net property, plant and equipment |
82,520 |
73,779 |
||||||
Regulatory Assets and Deferred Debits |
||||||||
Regulatory assets (includes $1,142 related to VIEs at 2016) |
12,878 |
11,373 |
||||||
Other |
17 |
43 |
||||||
Total regulatory assets and deferred debits |
12,895 |
11,416 |
||||||
Total Assets |
$ |
132,761 |
$ |
121,156 |
||||
LIABILITIES AND EQUITY |
||||||||
Current Liabilities |
||||||||
Accounts payable |
$ |
2,994 |
$ |
2,350 |
||||
Notes payable and commercial paper |
2,487 |
3,633 |
||||||
Taxes accrued |
384 |
289 |
||||||
Interest accrued |
503 |
412 |
||||||
Current maturities of long-term debt (includes $260 at 2016 and $125 at 2015 related to VIEs) |
2,319 |
2,026 |
||||||
Liabilities associated with assets held for sale |
— |
279 |
||||||
Asset retirement obligations |
411 |
— |
||||||
Regulatory liabilities |
409 |
400 |
||||||
Other |
2,044 |
2,011 |
||||||
Total current liabilities |
11,551 |
11,400 |
||||||
Long-Term Debt (includes $3,587 at 2016 and $2,197 at 2015 related to VIEs) |
45,576 |
36,842 |
||||||
Deferred Credits and Other Liabilities |
||||||||
Deferred income taxes |
14,155 |
12,548 |
||||||
Investment tax credits |
493 |
472 |
||||||
Accrued pension and other post-retirement benefit costs |
1,111 |
1,088 |
||||||
Liabilities associated with assets held for sale |
— |
900 |
||||||
Asset retirement obligations |
10,200 |
10,249 |
||||||
Regulatory liabilities |
6,881 |
6,255 |
||||||
Other |
1,753 |
1,631 |
||||||
Total deferred credits and other liabilities |
34,593 |
33,143 |
||||||
Commitments and Contingencies |
||||||||
Equity |
||||||||
Common stock, $0.001 par value, 2 billion shares authorized; 700 million and 688 million shares outstanding at 2016 and 2015, respectively |
1 |
1 |
||||||
Additional paid-in capital |
38,741 |
37,968 |
||||||
Retained earnings |
2,384 |
2,564 |
||||||
Accumulated other comprehensive loss |
(93) |
(806) |
||||||
Total Duke Energy Corporation stockholders' equity |
41,033 |
39,727 |
||||||
Noncontrolling interests |
8 |
44 |
||||||
Total equity |
41,041 |
39,771 |
||||||
Total Liabilities and Equity |
$ |
132,761 |
$ |
121,156 |
DUKE ENERGY CORPORATION |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
(In millions) |
||||||||
Years Ended December 31, |
||||||||
2016 |
2015 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net Income |
$ |
2,170 |
$ |
2,831 |
||||
Adjustments to reconcile net income to net cash provided by operating activities |
4,628 |
3,845 |
||||||
Net cash provided by operating activities |
6,798 |
6,676 |
||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Net cash used in investing activities |
(11,533) |
(5,277) |
||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Net cash provided by (used in) financing activities |
4,270 |
(2,578) |
||||||
Changes in cash and cash equivalents included in assets held for sale |
474 |
1,099 |
||||||
Net increase (decrease) in cash and cash equivalents |
9 |
(80) |
||||||
Cash and cash equivalents at the beginning of period |
383 |
463 |
||||||
Cash and cash equivalents at end of period |
$ |
392 |
$ |
383 |
DUKE ENERGY CORPORATION EARNINGS VARIANCES December 2016 QTD vs. Prior Year |
||||||||||||||||||||||||||||||||||
($ per share) |
Electric |
Gas |
Commercial |
International |
Other |
Discontinued |
Consolidated |
|||||||||||||||||||||||||||
2015 QTD Reported Earnings Per Share, Diluted |
$ |
0.82 |
$ |
0.02 |
$ |
0.02 |
$ |
— |
$ |
(0.24) |
$ |
0.07 |
$ |
0.69 |
||||||||||||||||||||
Costs to Achieve Mergers |
— |
— |
— |
— |
0.03 |
— |
0.03 |
|||||||||||||||||||||||||||
Ash Basin Settlement and Penalties |
0.01 |
— |
— |
— |
— |
— |
0.01 |
|||||||||||||||||||||||||||
Cost Savings Initiatives |
0.02 |
— |
— |
— |
0.11 |
— |
0.13 |
|||||||||||||||||||||||||||
International Energy Operations |
— |
— |
— |
0.08 |
— |
(0.08) |
— |
|||||||||||||||||||||||||||
Discontinued Operations |
— |
— |
— |
— |
— |
0.01 |
0.01 |
|||||||||||||||||||||||||||
2015 QTD Adjusted Earnings Per Share, Diluted |
$ |
0.85 |
$ |
0.02 |
$ |
0.02 |
$ |
0.08 |
$ |
(0.10) |
$ |
— |
$ |
0.87 |
||||||||||||||||||||
Change in share count |
(0.01) |
— |
— |
— |
— |
— |
(0.01) |
|||||||||||||||||||||||||||
Weather-related (a) |
0.03 |
— |
— |
— |
— |
— |
0.03 |
|||||||||||||||||||||||||||
Volume |
(0.01) |
— |
— |
— |
— |
— |
(0.01) |
|||||||||||||||||||||||||||
Pricing and Riders |
(0.01) |
— |
— |
— |
— |
— |
(0.01) |
|||||||||||||||||||||||||||
Wholesale |
(0.01) |
— |
— |
— |
— |
— |
(0.01) |
|||||||||||||||||||||||||||
Operations and maintenance, net of recoverables (b) |
(0.08) |
0.01 |
— |
— |
— |
— |
(0.07) |
|||||||||||||||||||||||||||
Piedmont Natural Gas contribution |
— |
0.10 |
— |
— |
— |
— |
0.10 |
|||||||||||||||||||||||||||
Commercial Gas Pipelines |
— |
0.01 |
— |
— |
— |
— |
0.01 |
|||||||||||||||||||||||||||
Duke Energy Renewables |
— |
— |
(0.01) |
— |
— |
— |
(0.01) |
|||||||||||||||||||||||||||
Other (c) |
0.02 |
— |
— |
— |
(0.02) |
— |
— |
|||||||||||||||||||||||||||
Interest Expense |
(0.03) |
— |
— |
— |
(0.03) |
— |
(0.06) |
|||||||||||||||||||||||||||
Change in effective income tax rate |
(0.06) |
(0.01) |
— |
(0.01) |
0.07 |
— |
(0.01) |
|||||||||||||||||||||||||||
Latin America, including foreign exchange rates |
— |
— |
— |
(0.01) |
— |
— |
(0.01) |
|||||||||||||||||||||||||||
2016 QTD Adjusted Earnings Per Share, Diluted |
$ |
0.69 |
$ |
0.13 |
$ |
0.01 |
$ |
0.06 |
$ |
(0.08) |
$ |
— |
$ |
0.81 |
||||||||||||||||||||
Costs to Achieve Mergers |
— |
— |
— |
— |
(0.19) |
— |
(0.19) |
|||||||||||||||||||||||||||
Cost Savings Initiatives |
— |
— |
— |
— |
(0.03) |
— |
(0.03) |
|||||||||||||||||||||||||||
International Energy Operations |
— |
— |
— |
(0.06) |
— |
0.06 |
— |
|||||||||||||||||||||||||||
Discontinued Operations |
— |
— |
— |
— |
— |
(0.92) |
(0.92) |
|||||||||||||||||||||||||||
2016 QTD Reported Earnings Per Share, Diluted |
$ |
0.69 |
$ |
0.13 |
$ |
0.01 |
$ |
— |
$ |
(0.30) |
$ |
(0.86) |
$ |
(0.33) |
||||||||||||||||||||
Note 1: Prior period amounts have been restated to conform to the current segment structure. Results of NMC, previously included in the International Energy segment, are now within Other. |
||||||||||||||||||||||||||||||||||
Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding. |
||||||||||||||||||||||||||||||||||
Note 3: Earnings Per Share amounts are calculated using the consolidated statutory income tax rate for all variance drivers except Duke Energy Renewables, which uses an effective tax rate. |
||||||||||||||||||||||||||||||||||
(a) Weather-related amounts include estimated volume impacts of Hurricane Matthew. |
||||||||||||||||||||||||||||||||||
(b) Primarily due to higher planned O&M spending, including costs related to employee benefits. |
||||||||||||||||||||||||||||||||||
(c) Electric Utilities and Infrastructure includes higher AFUDC equity (+$0.02) and lower general taxes (+$0.03), partially offset by increased depreciation and amortization expense (-$0.03) due to higher depreciable base. |
DUKE ENERGY CORPORATION EARNINGS VARIANCES December 2016 YTD vs. Prior Year |
|||||||||||||||||||||||||||||||||||||
($ per share) |
Electric Infrastructure |
Gas Utilities and |
Commercial |
International |
Other |
Discontinued |
Consolidated |
||||||||||||||||||||||||||||||
Continuing |
Midwest |
||||||||||||||||||||||||||||||||||||
2015 YTD Reported Earnings Per Share, Diluted |
$ |
4.06 |
$ |
0.11 |
$ |
0.08 |
$ |
— |
$ |
(0.45) |
$ |
— |
$ |
0.25 |
$ |
4.05 |
|||||||||||||||||||||
Costs to Achieve Mergers |
— |
— |
— |
— |
0.09 |
— |
— |
0.09 |
|||||||||||||||||||||||||||||
Edwardsport Settlement |
0.08 |
— |
— |
— |
— |
— |
— |
0.08 |
|||||||||||||||||||||||||||||
Midwest Generation Operations |
— |
— |
— |
— |
— |
0.14 |
(0.14) |
— |
|||||||||||||||||||||||||||||
Ash Basin Settlement and Penalties |
0.02 |
— |
— |
— |
— |
— |
— |
0.02 |
|||||||||||||||||||||||||||||
Cost Savings Initiatives |
0.01 |
— |
— |
— |
0.12 |
— |
— |
0.13 |
|||||||||||||||||||||||||||||
International Energy Operations |
— |
— |
— |
0.22 |
— |
— |
(0.22) |
— |
|||||||||||||||||||||||||||||
Discontinued Operations |
— |
— |
— |
— |
0.06 |
— |
0.11 |
0.17 |
|||||||||||||||||||||||||||||
2015 YTD Adjusted Earnings Per Share, Diluted |
$ |
4.17 |
$ |
0.11 |
$ |
0.08 |
$ |
0.22 |
$ |
(0.18) |
$ |
0.14 |
$ |
— |
$ |
4.54 |
|||||||||||||||||||||
Change in share count (a) |
0.02 |
— |
— |
— |
— |
— |
— |
0.02 |
|||||||||||||||||||||||||||||
Weather-related (b) |
0.07 |
— |
— |
— |
— |
— |
— |
0.07 |
|||||||||||||||||||||||||||||
Volume |
0.03 |
— |
— |
— |
— |
— |
— |
0.03 |
|||||||||||||||||||||||||||||
Pricing and Riders (c) |
0.14 |
0.01 |
— |
— |
— |
— |
— |
0.15 |
|||||||||||||||||||||||||||||
Wholesale (d) |
0.07 |
— |
— |
— |
— |
— |
— |
0.07 |
|||||||||||||||||||||||||||||
Operations and maintenance, net of recoverables (e) |
(0.02) |
— |
— |
— |
— |
— |
— |
(0.02) |
|||||||||||||||||||||||||||||
Piedmont Natural Gas contribution |
— |
0.10 |
— |
— |
— |
— |
— |
0.10 |
|||||||||||||||||||||||||||||
Commercial Gas Pipelines |
— |
0.02 |
— |
— |
— |
— |
— |
0.02 |
|||||||||||||||||||||||||||||
Duke Energy Renewables |
— |
— |
0.02 |
— |
— |
— |
— |
0.02 |
|||||||||||||||||||||||||||||
National Methanol Company (NMC) |
— |
— |
— |
— |
(0.05) |
— |
— |
(0.05) |
|||||||||||||||||||||||||||||
Other (f) |
(0.08) |
(0.02) |
— |
— |
(0.03) |
— |
— |
(0.13) |
|||||||||||||||||||||||||||||
Interest Expense |
(0.04) |
— |
— |
— |
(0.06) |
— |
— |
(0.10) |
|||||||||||||||||||||||||||||
Change in effective income tax rate |
0.04 |
— |
— |
0.09 |
(0.06) |
— |
— |
0.07 |
|||||||||||||||||||||||||||||
Midwest Generation (g) |
— |
— |
— |
— |
— |
(0.14) |
— |
(0.14) |
|||||||||||||||||||||||||||||
Latin America, including foreign exchange rates |
— |
— |
— |
0.04 |
— |
— |
— |
0.04 |
|||||||||||||||||||||||||||||
2016 YTD Adjusted Earnings Per Share, Diluted |
$ |
4.40 |
$ |
0.22 |
$ |
0.10 |
$ |
0.35 |
$ |
(0.38) |
$ |
— |
$ |
— |
$ |
4.69 |
|||||||||||||||||||||
Cost to Achieve Mergers |
— |
— |
— |
— |
(0.48) |
— |
— |
(0.48) |
|||||||||||||||||||||||||||||
Cost Savings Initiatives |
— |
— |
— |
— |
(0.08) |
— |
— |
(0.08) |
|||||||||||||||||||||||||||||
Commercial Renewables Impairment |
— |
— |
(0.07) |
— |
— |
— |
— |
(0.07) |
|||||||||||||||||||||||||||||
International Energy Operations |
— |
— |
— |
(0.35) |
— |
— |
0.35 |
— |
|||||||||||||||||||||||||||||
Discontinued Operations |
— |
— |
— |
— |
— |
— |
(0.95) |
(0.95) |
|||||||||||||||||||||||||||||
2016 YTD Reported Earnings Per Share, Diluted |
$ |
4.40 |
$ |
0.22 |
$ |
0.03 |
$ |
— |
$ |
(0.94) |
$ |
— |
$ |
(0.60) |
$ |
3.11 |
|||||||||||||||||||||
Note 1: Prior period amounts have been restated to conform to the current segment structure. Results of NMC, previously included in the International Energy segment, are now within Other. |
|||||||||||||||||||||||||||||||||||||
Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding. |
|||||||||||||||||||||||||||||||||||||
Note 3: Earnings Per Share amounts are calculated using the consolidated statutory income tax rate for all variance drivers except Duke Energy Renewables, which uses an effective tax rate. |
|||||||||||||||||||||||||||||||||||||
(a) Due to the prior year repurchase of common shares, partially offset by the issuance of shares in 2016 to partially fund the Piedmont acquisition. Weighted average diluted shares outstanding decreased from 694 million shares to 691 million shares. |
|||||||||||||||||||||||||||||||||||||
(b) Weather-related amounts include estimated volume impacts of Hurricane Matthew. |
|||||||||||||||||||||||||||||||||||||
(c) Primarily due to the NCEMPA rider (+$0.07) and higher energy efficiency recoveries in the Carolinas (+$0.05). |
|||||||||||||||||||||||||||||||||||||
(d) Primarily due to the implementation of the 30-year contract with NCEMPA. |
|||||||||||||||||||||||||||||||||||||
(e) Primarily due to increased storm restoration costs and costs related to the NCEMPA asset purchase, partially offset by strong cost control. |
|||||||||||||||||||||||||||||||||||||
(f) Electric Utilities and Infrastructure includes increased depreciation and amortization expense (-$0.11) due to higher depreciable base, partially offset by higher AFUDC equity (+$0.03). |
|||||||||||||||||||||||||||||||||||||
(g) Due to prior year earnings from the nonregulated Midwest generation business, which was sold in April 2015. |
Electric Utilities and Infrastructure |
||||||||||||||||||||||||
Quarterly Highlights |
||||||||||||||||||||||||
December 2016 |
||||||||||||||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
|||||||||||||||||||||||
2016 |
2015 |
% Inc.(Dec.) |
% Inc. Weather Normal (2) |
2016 |
2015 |
% Inc.(Dec.) |
% Inc.(Dec.) Weather Normal (2) |
|||||||||||||||||
GWh Sales (1) |
||||||||||||||||||||||||
Residential |
18,057 |
17,198 |
5.0% |
—% |
83,507 |
83,393 |
0.1% |
0.7% |
||||||||||||||||
General Service |
18,473 |
18,243 |
1.3% |
0.2% |
77,764 |
77,367 |
0.5% |
0.1% |
||||||||||||||||
Industrial |
12,748 |
12,827 |
(0.6%) |
(1.0%) |
51,895 |
52,197 |
(0.6%) |
(0.6%) |
||||||||||||||||
Other Energy Sales |
144 |
147 |
(2.0%) |
579 |
597 |
(3.0%) |
||||||||||||||||||
Unbilled Sales |
(328) |
113 |
(390.3%) |
n/a |
750 |
(363) |
306.6% |
n/a |
||||||||||||||||
Total Retail Sales |
49,094 |
48,528 |
1.2% |
(0.2%) |
214,495 |
213,191 |
0.6% |
0.2% |
||||||||||||||||
Special Sales |
9,251 |
9,524 |
(2.9%) |
43,034 |
38,075 |
13.0% |
||||||||||||||||||
Total Consolidated Electric Sales - Electric Utilities and Infrastructure |
58,345 |
58,052 |
0.5% |
257,529 |
251,266 |
2.5% |
||||||||||||||||||
Average Number of Customers (Electric) |
||||||||||||||||||||||||
Residential |
6,481,081 |
6,394,280 |
1.4% |
6,450,046 |
6,362,549 |
1.4% |
||||||||||||||||||
General Service |
966,777 |
955,880 |
1.1% |
962,629 |
952,483 |
1.1% |
||||||||||||||||||
Industrial |
17,768 |
17,983 |
(1.2%) |
17,843 |
18,107 |
(1.5%) |
||||||||||||||||||
Other Energy Sales |
23,177 |
23,119 |
0.3% |
23,132 |
23,049 |
0.4% |
||||||||||||||||||
Total Regular Sales |
7,488,803 |
7,391,262 |
1.3% |
7,453,650 |
7,356,188 |
1.3% |
||||||||||||||||||
Special Sales |
60 |
63 |
(4.8%) |
61 |
63 |
(3.2%) |
||||||||||||||||||
Total Average Number of Customers - Electric Utilities and Infrastructure |
7,488,863 |
7,391,325 |
1.3% |
7,453,711 |
7,356,251 |
1.3% |
||||||||||||||||||
Sources of Electric Energy (GWh) |
||||||||||||||||||||||||
Generated - Net Output (3) |
||||||||||||||||||||||||
Coal |
15,400 |
13,915 |
10.7% |
73,767 |
76,348 |
(3.4%) |
||||||||||||||||||
Nuclear |
18,375 |
18,541 |
(0.9%) |
74,160 |
71,121 |
4.3% |
||||||||||||||||||
Hydro |
153 |
996 |
(84.6%) |
1,655 |
2,021 |
(18.1%) |
||||||||||||||||||
Oil and Natural Gas |
13,689 |
14,616 |
(6.3%) |
62,150 |
60,670 |
2.4% |
||||||||||||||||||
Renewable Energy |
37 |
3 |
1,133.3% |
195 |
13 |
1,400.0% |
||||||||||||||||||
Total Generation (4) |
47,654 |
48,071 |
(0.9%) |
211,927 |
210,173 |
0.8% |
||||||||||||||||||
Purchased Power and Net Interchange (5) |
13,625 |
11,763 |
15.8% |
59,382 |
52,845 |
12.4% |
||||||||||||||||||
Total Sources of Energy |
61,279 |
59,834 |
2.4% |
271,309 |
263,018 |
3.2% |
||||||||||||||||||
Less: Line Loss and Other |
2,934 |
1,782 |
64.6% |
13,780 |
11,752 |
17.3% |
||||||||||||||||||
Total GWh Sources |
58,345 |
58,052 |
0.5% |
257,529 |
251,266 |
2.5% |
||||||||||||||||||
Owned MW Capacity (3) |
||||||||||||||||||||||||
Summer |
49,338 |
50,216 |
||||||||||||||||||||||
Winter |
52,515 |
53,484 |
||||||||||||||||||||||
Nuclear Capacity Factor (%) (6) |
96 |
94 |
||||||||||||||||||||||
(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes. |
||||||||||||||||||||||||
(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales). |
||||||||||||||||||||||||
(3) Statistics reflect Duke Energy's ownership share of jointly owned stations. |
||||||||||||||||||||||||
(4) Generation by source is reported net of auxiliary power. |
||||||||||||||||||||||||
(5) Purchased power includes renewable energy purchases. |
||||||||||||||||||||||||
(6) Statistics reflect 100% of jointly owned stations. |
||||||||||||||||||||||||
Duke Energy Carolinas |
||||||||||||||||||||||||
Quarterly Highlights |
||||||||||||||||||||||||
Supplemental Electric Utilities and Infrastructure Information |
||||||||||||||||||||||||
December 2016 |
||||||||||||||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
|||||||||||||||||||||||
2016 |
2015 |
% Inc.(Dec.) |
% Inc. Weather Normal (2) |
2016 |
2015 |
% Inc.(Dec.) |
% Inc. (Dec.) Weather Normal (2) |
|||||||||||||||||
GWh Sales (1) |
||||||||||||||||||||||||
Residential |
5,884 |
5,471 |
7.5% |
27,939 |
27,916 |
0.1% |
||||||||||||||||||
General Service |
6,801 |
6,626 |
2.6% |
28,906 |
28,700 |
0.7% |
||||||||||||||||||
Industrial |
5,396 |
5,406 |
(0.2%) |
21,942 |
22,136 |
(0.9%) |
||||||||||||||||||
Other Energy Sales |
76 |
76 |
—% |
304 |
305 |
(0.3%) |
||||||||||||||||||
Unbilled Sales |
128 |
(21) |
709.5% |
372 |
(539) |
169.0% |
||||||||||||||||||
Total Retail Sales |
18,285 |
17,558 |
4.1% |
(1.7%) |
79,463 |
78,518 |
1.2% |
(0.3%) |
||||||||||||||||
Special Sales |
2,370 |
1,706 |
38.9% |
9,082 |
8,432 |
7.7% |
||||||||||||||||||
Total Consolidated Electric Sales - Duke Energy Carolinas |
20,655 |
19,264 |
7.2% |
88,545 |
86,950 |
1.8% |
||||||||||||||||||
Average Number of Customers |
||||||||||||||||||||||||
Residential |
2,159,930 |
2,128,724 |
1.5% |
2,148,432 |
2,117,482 |
1.5% |
||||||||||||||||||
General Service |
351,145 |
346,378 |
1.4% |
349,400 |
345,119 |
1.2% |
||||||||||||||||||
Industrial |
6,270 |
6,337 |
(1.1%) |
6,295 |
6,417 |
(1.9%) |
||||||||||||||||||
Other Energy Sales |
15,250 |
15,123 |
0.8% |
15,190 |
15,041 |
1.0% |
||||||||||||||||||
Total Regular Sales |
2,532,595 |
2,496,562 |
1.4% |
2,519,317 |
2,484,059 |
1.4% |
||||||||||||||||||
Special Sales |
23 |
24 |
(4.2%) |
24 |
25 |
(4.0%) |
||||||||||||||||||
Total Average Number of Customers - Duke Energy Carolinas |
2,532,618 |
2,496,586 |
1.4% |
2,519,341 |
2,484,084 |
1.4% |
||||||||||||||||||
Sources of Electric Energy (GWh) |
||||||||||||||||||||||||
Generated - Net Output (3) |
||||||||||||||||||||||||
Coal |
5,551 |
3,769 |
47.3% |
25,607 |
25,896 |
(1.1%) |
||||||||||||||||||
Nuclear |
11,417 |
10,903 |
4.7% |
44,826 |
45,013 |
(0.4%) |
||||||||||||||||||
Hydro |
20 |
700 |
(97.1%) |
822 |
1,136 |
(27.6%) |
||||||||||||||||||
Oil and Natural Gas |
2,886 |
2,659 |
8.5% |
11,779 |
10,595 |
11.2% |
||||||||||||||||||
Renewable Energy |
3 |
3 |
—% |
13 |
13 |
—% |
||||||||||||||||||
Total Generation (4) |
19,877 |
18,034 |
10.2% |
83,047 |
82,653 |
0.5% |
||||||||||||||||||
Purchased Power and Net Interchange (5) |
1,941 |
2,182 |
(11.0%) |
10,737 |
9,170 |
17.1% |
||||||||||||||||||
Total Sources of Energy |
21,818 |
20,216 |
7.9% |
93,784 |
91,823 |
2.1% |
||||||||||||||||||
Less: Line Loss and Other |
1,163 |
952 |
22.2% |
5,239 |
4,873 |
7.5% |
||||||||||||||||||
Total GWh Sources |
20,655 |
19,264 |
7.2% |
88,545 |
86,950 |
1.8% |
||||||||||||||||||
Owned MW Capacity (3) |
||||||||||||||||||||||||
Summer |
19,685 |
19,645 |
||||||||||||||||||||||
Winter |
20,390 |
20,360 |
||||||||||||||||||||||
Nuclear Capacity Factor (%) (6) |
96 |
96 |
||||||||||||||||||||||
Heating and Cooling Degree Days |
||||||||||||||||||||||||
Actual |
||||||||||||||||||||||||
Heating Degree Days |
1,047 |
813 |
28.8% |
2,908 |
2,922 |
(0.5%) |
||||||||||||||||||
Cooling Degree Days |
60 |
22 |
172.7% |
1,950 |
1,731 |
12.7% |
||||||||||||||||||
Variance from Normal |
||||||||||||||||||||||||
Heating Degree Days |
(18.1%) |
(34.2%) |
n/a |
(11.4%) |
(7.6%) |
n/a |
||||||||||||||||||
Cooling Degree Days |
71.4% |
(46.3%) |
n/a |
29.9% |
8.4% |
n/a |
||||||||||||||||||
(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes. |
||||||||||||||||||||||||
(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales). |
||||||||||||||||||||||||
(3) Statistics reflect Duke Energy's ownership share of jointly owned stations. |
||||||||||||||||||||||||
(4) Generation by source is reported net of auxiliary power. |
||||||||||||||||||||||||
(5) Purchased power includes renewable energy purchases. |
||||||||||||||||||||||||
(6) Statistics reflect 100% of jointly owned stations. |
||||||||||||||||||||||||
Duke Energy Progress |
||||||||||||||||||||||||
Quarterly Highlights |
||||||||||||||||||||||||
Supplemental Electric Utilities and Infrastructure Information |
||||||||||||||||||||||||
December 2016 |
||||||||||||||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
|||||||||||||||||||||||
2016 |
2015 |
% Inc.(Dec.) |
% Inc. Weather Normal (2) |
2016 |
2015 |
% Inc.(Dec.) |
% Inc. Weather Normal (2) |
|||||||||||||||||
GWh Sales (1) |
||||||||||||||||||||||||
Residential |
3,683 |
3,407 |
8.1% |
17,686 |
17,954 |
(1.5%) |
||||||||||||||||||
General Service |
3,550 |
3,529 |
0.6% |
15,557 |
15,529 |
0.2 |
||||||||||||||||||
Industrial |
2,482 |
2,498 |
(0.6%) |
10,274 |
10,288 |
(0.1%) |
||||||||||||||||||
Other Energy Sales |
21 |
25 |
(16.0%) |
89 |
106 |
(16.0%) |
||||||||||||||||||
Unbilled Sales |
164 |
50 |
228.0% |
262 |
(302) |
186.8% |
||||||||||||||||||
Total Retail Sales |
9,900 |
9,509 |
4.1% |
0.3% |
43,868 |
43,575 |
0.7% |
0.2% |
||||||||||||||||
Special Sales |
5,138 |
5,372 |
(4.4%) |
25,181 |
21,306 |
18.2% |
||||||||||||||||||
Total Consolidated Electric Sales - Duke Energy Progress |
15,038 |
14,881 |
1.1% |
69,049 |
64,881 |
6.4% |
||||||||||||||||||
Average Number of Customers |
||||||||||||||||||||||||
Residential |
1,297,292 |
1,280,852 |
1.3% |
1,291,742 |
1,274,550 |
1.3% |
||||||||||||||||||
General Service |
229,936 |
227,233 |
1.2% |
229,007 |
226,099 |
1.3% |
||||||||||||||||||
Industrial |
4,115 |
4,174 |
(1.4%) |
4,136 |
4,209 |
(1.7%) |
||||||||||||||||||
Other Energy Sales |
1,498 |
1,648 |
(9.1%) |
1,537 |
1,677 |
(8.3%) |
||||||||||||||||||
Total Regular Sales |
1,532,841 |
1,513,907 |
1.3% |
1,526,422 |
1,506,535 |
1.3% |
||||||||||||||||||
Special Sales |
15 |
15 |
—% |
15 |
15 |
—% |
||||||||||||||||||
Total Average Number of Customers - Duke Energy Progress |
1,532,856 |
1,513,922 |
1.3% |
1,526,437 |
1,506,550 |
1.3% |
||||||||||||||||||
Sources of Electric Energy (GWh) |
||||||||||||||||||||||||
Generated - Net Output (3) |
||||||||||||||||||||||||
Coal |
2,062 |
1,506 |
36.9% |
11,570 |
12,960 |
(10.7%) |
||||||||||||||||||
Nuclear |
6,958 |
7,638 |
(8.9%) |
29,334 |
26,108 |
12.4% |
||||||||||||||||||
Hydro |
41 |
193 |
(78.8%) |
490 |
582 |
(15.8%) |
||||||||||||||||||
Oil and Natural Gas |
4,679 |
5,020 |
(6.8%) |
22,716 |
22,203 |
2.3% |
||||||||||||||||||
Renewable Energy |
31 |
— |
n/a |
177 |
— |
n/a |
||||||||||||||||||
Total Generation (4) |
13,771 |
14,357 |
(4.1%) |
64,287 |
61,853 |
3.9% |
||||||||||||||||||
Purchased Power and Net Interchange (5) |
1,990 |
1,022 |
94.7% |
7,381 |
5,649 |
30.7% |
||||||||||||||||||
Total Sources of Energy |
15,761 |
15,379 |
2.5% |
71,668 |
67,502 |
6.2% |
||||||||||||||||||
Less: Line Loss and Other |
723 |
498 |
45.2% |
2,619 |
2,621 |
(0.1%) |
||||||||||||||||||
Total GWh Sources |
15,038 |
14,881 |
1.1% |
69,049 |
64,881 |
6.4% |
||||||||||||||||||
Owned MW Capacity (3) |
||||||||||||||||||||||||
Summer |
12,935 |
12,915 |
||||||||||||||||||||||
Winter |
14,034 |
14,019 |
||||||||||||||||||||||
Nuclear Capacity Factor (%) (6) |
94 |
91 |
||||||||||||||||||||||
Heating and Cooling Degree Days |
||||||||||||||||||||||||
Actual |
||||||||||||||||||||||||
Heating Degree Days |
1,013 |
650 |
55.8% |
2,706 |
2,654 |
2.0% |
||||||||||||||||||
Cooling Degree Days |
78 |
65 |
20.0% |
2,033 |
1,844 |
10.2% |
||||||||||||||||||
Variance from Normal |
||||||||||||||||||||||||
Heating Degree Days |
(11.7%) |
(41.5%) |
n/a |
(9.0%) |
(7.8%) |
n/a |
||||||||||||||||||
Cooling Degree Days |
39.3% |
4.8% |
n/a |
23.9% |
5.8% |
n/a |
||||||||||||||||||
(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes. |
||||||||||||||||||||||||
(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales). |
||||||||||||||||||||||||
(3) Statistics reflect Duke Energy's ownership share of jointly owned stations. |
||||||||||||||||||||||||
(4) Generation by source is reported net of auxiliary power. |
||||||||||||||||||||||||
(5) Purchased power includes renewable energy purchases. |
||||||||||||||||||||||||
(6) Statistics reflect 100% of jointly owned stations. |
||||||||||||||||||||||||
Duke Energy Florida |
||||||||||||||||||||||||
Quarterly Highlights |
||||||||||||||||||||||||
Supplemental Electric Utilities and Infrastructure Information |
||||||||||||||||||||||||
December 2016 |
||||||||||||||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
|||||||||||||||||||||||
2016 |
2015 |
% Inc.(Dec.) |
% Inc. Weather Normal (2) |
2016 |
2015 |
% Inc.(Dec.) |
% Inc. Weather Normal (2) |
|||||||||||||||||
GWh Sales (1) |
||||||||||||||||||||||||
Residential |
4,612 |
4,732 |
(2.5%) |
20,265 |
19,932 |
1.7% |
||||||||||||||||||
General Service |
3,795 |
3,903 |
(2.8%) |
15,288 |
15,304 |
(0.1%) |
||||||||||||||||||
Industrial |
816 |
851 |
(4.1%) |
3,197 |
3,293 |
(2.9%) |
||||||||||||||||||
Other Energy Sales |
6 |
6 |
—% |
24 |
24 |
—% |
||||||||||||||||||
Unbilled Sales |
(755) |
(463) |
(63.1%) |
(257) |
104 |
(347.1%) |
||||||||||||||||||
Total Retail Sales |
8,474 |
9,029 |
(6.1%) |
(0.4%) |
38,517 |
38,657 |
(0.4%) |
0.8% |
||||||||||||||||
Special Sales |
388 |
236 |
64.4% |
1,887 |
1,396 |
35.2% |
||||||||||||||||||
Total Electric Sales - Duke Energy Florida |
8,862 |
9,265 |
(4.3%) |
40,404 |
40,053 |
0.9% |
||||||||||||||||||
Average Number of Customers |
||||||||||||||||||||||||
Residential |
1,555,990 |
1,533,247 |
1.5% |
1,548,681 |
1,524,320 |
1.6% |
||||||||||||||||||
General Service |
196,708 |
194,265 |
1.3% |
195,728 |
193,437 |
1.2% |
||||||||||||||||||
Industrial |
2,157 |
2,227 |
(3.1%) |
2,177 |
2,244 |
(3.0%) |
||||||||||||||||||
Other Energy Sales |
1,528 |
1,534 |
(0.4%) |
1,532 |
1,537 |
(0.3%) |
||||||||||||||||||
Total Regular Sales |
1,756,383 |
1,731,273 |
1.5% |
1,748,118 |
1,721,538 |
1.5% |
||||||||||||||||||
Special Sales |
14 |
14 |
—% |
14 |
14 |
—% |
||||||||||||||||||
Total Average Number of Customers - Duke Energy Florida |
1,756,397 |
1,731,287 |
1.5% |
1,748,132 |
1,721,552 |
1.5% |
||||||||||||||||||
Sources of Electric Energy (GWh) |
||||||||||||||||||||||||
Generated - Net Output (3) |
||||||||||||||||||||||||
Coal |
2,247 |
1,612 |
39.4% |
8,852 |
9,718 |
(8.9%) |
||||||||||||||||||
Oil and Natural Gas |
5,513 |
6,135 |
(10.1%) |
24,884 |
25,263 |
(1.5%) |
||||||||||||||||||
Renewable Energy |
3 |
— |
n/a |
5 |
— |
n/a |
||||||||||||||||||
Total Generation (4) |
7,763 |
7,747 |
0.2% |
33,741 |
34,981 |
(3.5%) |
||||||||||||||||||
Purchased Power and Net Interchange (5) |
1,591 |
1,937 |
(17.9%) |
8,998 |
7,217 |
24.7% |
||||||||||||||||||
Total Sources of Energy |
9,354 |
9,684 |
(3.4%) |
42,739 |
42,198 |
1.3% |
||||||||||||||||||
Less: Line Loss and Other |
492 |
419 |
17.4% |
2,335 |
2,145 |
8.9% |
||||||||||||||||||
Total GWh Sources |
8,862 |
9,265 |
(4.3%) |
40,404 |
40,053 |
0.9% |
||||||||||||||||||
Owned MW Capacity (3) |
||||||||||||||||||||||||
Summer |
8,839 |
9,101 |
||||||||||||||||||||||
Winter |
9,732 |
10,070 |
||||||||||||||||||||||
Heating and Cooling Degree Days |
||||||||||||||||||||||||
Actual |
||||||||||||||||||||||||
Heating Degree Days |
81 |
27 |
200.0% |
482 |
400 |
20.5% |
||||||||||||||||||
Cooling Degree Days |
572 |
765 |
(25.2%) |
3,481 |
3,742 |
(7.0%) |
||||||||||||||||||
Variance from Normal |
||||||||||||||||||||||||
Heating Degree Days |
(60.0%) |
(86.2%) |
n/a |
(19.8%) |
(32.6%) |
n/a |
||||||||||||||||||
Cooling Degree Days |
22.3% |
65.2% |
n/a |
10.1% |
17.0% |
n/a |
||||||||||||||||||
(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes. |
||||||||||||||||||||||||
(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales). |
||||||||||||||||||||||||
(3) Statistics reflect Duke Energy's ownership share of jointly owned stations. |
||||||||||||||||||||||||
(4) Generation by source is reported net of auxiliary power. |
||||||||||||||||||||||||
(5) Purchased power includes renewable energy purchases. |
||||||||||||||||||||||||
Duke Energy Ohio |
||||||||||||||||||||||||
Quarterly Highlights |
||||||||||||||||||||||||
Supplemental Electric Utilities and Infrastructure Information |
||||||||||||||||||||||||
December 2016 |
||||||||||||||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
|||||||||||||||||||||||
2016 |
2015 |
% Inc.(Dec.) |
% Inc. Weather Normal (2) |
2016 |
2015 |
% Inc.(Dec.) |
% Inc. Weather Normal (2) |
|||||||||||||||||
GWh Sales (1) |
||||||||||||||||||||||||
Residential |
1,897 |
1,747 |
8.6% |
8,699 |
8,638 |
0.7% |
||||||||||||||||||
General Service |
2,307 |
2,231 |
3.4% |
9,633 |
9,512 |
1.3% |
||||||||||||||||||
Industrial |
1,467 |
1,481 |
(0.9%) |
5,945 |
5,988 |
(0.7%) |
||||||||||||||||||
Other Energy Sales |
27 |
27 |
—% |
109 |
109 |
—% |
||||||||||||||||||
Unbilled Sales |
67 |
(44) |
252.3% |
203 |
(52) |
490.4% |
||||||||||||||||||
Total Retail Sales |
5,765 |
5,442 |
5.9% |
2.1% |
24,589 |
24,195 |
1.6% |
0.7% |
||||||||||||||||
Special Sales |
281 |
299 |
(6.0%) |
574 |
1,244 |
(53.9%) |
||||||||||||||||||
Total Electric Sales - Duke Energy Ohio |
6,046 |
5,741 |
5.3% |
25,163 |
25,439 |
(1.1%) |
||||||||||||||||||
Average Number of Customers |
||||||||||||||||||||||||
Residential |
756,044 |
748,478 |
1.0% |
753,409 |
746,757 |
0.9% |
||||||||||||||||||
General Service |
87,931 |
87,298 |
0.7% |
87,625 |
87,227 |
0.5% |
||||||||||||||||||
Industrial |
2,507 |
2,530 |
(0.9%) |
2,514 |
2,530 |
(0.6%) |
||||||||||||||||||
Other Energy Sales |
3,274 |
3,231 |
1.3% |
3,258 |
3,220 |
1.2% |
||||||||||||||||||
Total Regular Sales |
849,756 |
841,537 |
1.0% |
846,806 |
839,734 |
0.8% |
||||||||||||||||||
Special Sales |
1 |
1 |
—% |
1 |
1 |
—% |
||||||||||||||||||
Total Average Number of Customers - Duke Energy Ohio |
849,757 |
841,538 |
1.0% |
846,807 |
839,735 |
0.8% |
||||||||||||||||||
Sources of Electric Energy (GWh) |
||||||||||||||||||||||||
Generated - Net Output (3) |
||||||||||||||||||||||||
Coal |
1,017 |
949 |
7.2% |
3,667 |
4,402 |
(16.7%) |
||||||||||||||||||
Oil and Natural Gas |
4 |
10 |
(60.0%) |
32 |
53 |
(39.6%) |
||||||||||||||||||
Total Generation (4) |
1,021 |
959 |
6.5% |
3,699 |
4,455 |
(17.0%) |
||||||||||||||||||
Purchased Power and Net Interchange (5) |
5,507 |
4,934 |
11.6% |
23,648 |
22,280 |
6.1% |
||||||||||||||||||
Total Sources of Energy |
6,528 |
5,893 |
10.8% |
27,347 |
26,735 |
2.3% |
||||||||||||||||||
Less: Line Loss and Other |
482 |
152 |
217.1% |
2,184 |
1,296 |
68.5% |
||||||||||||||||||
Total GWh Sources |
6,046 |
5,741 |
5.3% |
25,163 |
25,439 |
(1.1%) |
||||||||||||||||||
Owned MW Capacity (3) |
||||||||||||||||||||||||
Summer |
1,062 |
1,062 |
||||||||||||||||||||||
Winter |
1,164 |
1,164 |
||||||||||||||||||||||
Heating and Cooling Degree Days |
||||||||||||||||||||||||
Actual |
||||||||||||||||||||||||
Heating Degree Days |
1,635 |
1,316 |
24.2% |
4,483 |
4,647 |
(3.5%) |
||||||||||||||||||
Cooling Degree Days |
55 |
15 |
266.7% |
1,400 |
1,109 |
26.2% |
||||||||||||||||||
Variance from Normal |
||||||||||||||||||||||||
Heating Degree Days |
(12.6%) |
(28.0%) |
n/a |
(9.9%) |
(3.6%) |
n/a |
||||||||||||||||||
Cooling Degree Days |
223.5% |
(31.8%) |
n/a |
28.0% |
(7.9%) |
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. |
||||||||||||||||||||||||
Duke Energy Indiana |
||||||||||||||||||||||||
Quarterly Highlights |
||||||||||||||||||||||||
Supplemental Electric Utilities and Infrastructure Information |
||||||||||||||||||||||||
December 2016 |
||||||||||||||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
|||||||||||||||||||||||
2016 |
2015 |
% Inc.(Dec.) |
% Inc. Weather Normal (2) |
2016 |
2015 |
% Inc.(Dec.) |
% Inc. Weather Normal (2) |
|||||||||||||||||
GWh Sales (1) |
||||||||||||||||||||||||
Residential |
1,981 |
1,841 |
7.6% |
8,918 |
8,953 |
(0.4%) |
||||||||||||||||||
General Service |
2,020 |
1,954 |
3.4% |
8,380 |
8,322 |
0.7% |
||||||||||||||||||
Industrial |
2,587 |
2,591 |
(0.2%) |
10,537 |
10,492 |
0.4% |
||||||||||||||||||
Other Energy Sales |
14 |
13 |
7.7% |
53 |
53 |
—% |
||||||||||||||||||
Unbilled Sales |
68 |
(9) |
855.6% |
170 |
1 |
16,900.0% |
||||||||||||||||||
Total Retail Sales |
6,670 |
6,390 |
4.4% |
1.4% |
28,058 |
27,821 |
0.9% |
—% |
||||||||||||||||
Special Sales |
1,074 |
1,911 |
(43.8%) |
6,310 |
5,697 |
10.8% |
||||||||||||||||||
Total Electric Sales - Duke Energy Indiana |
7,744 |
8,301 |
(6.7%) |
34,368 |
33,518 |
2.5% |
||||||||||||||||||
Average Number of Customers |
||||||||||||||||||||||||
Residential |
711,825 |
702,979 |
1.3% |
707,782 |
699,440 |
1.2% |
||||||||||||||||||
General Service |
101,057 |
100,706 |
0.3% |
100,869 |
100,601 |
0.3% |
||||||||||||||||||
Industrial |
2,719 |
2,715 |
0.1% |
2,721 |
2,707 |
0.5% |
||||||||||||||||||
Other Energy Sales |
1,627 |
1,583 |
2.8% |
1,615 |
1,574 |
2.6% |
||||||||||||||||||
Total Regular Sales |
817,228 |
807,983 |
1.1% |
812,987 |
804,322 |
1.1% |
||||||||||||||||||
Special Sales |
7 |
9 |
(22.2%) |
7 |
8 |
(12.5%) |
||||||||||||||||||
Total Average Number of Customers - Duke Energy Indiana |
817,235 |
807,992 |
1.1% |
812,994 |
804,330 |
1.1% |
||||||||||||||||||
Sources of Electric Energy (GWh) |
||||||||||||||||||||||||
Generated - Net Output (3) |
||||||||||||||||||||||||
Coal |
4,523 |
6,079 |
(25.6%) |
24,071 |
23,372 |
3.0% |
||||||||||||||||||
Hydro |
92 |
103 |
(10.7%) |
343 |
303 |
13.2% |
||||||||||||||||||
Oil and Natural Gas |
607 |
792 |
(23.4%) |
2,739 |
2,556 |
7.2% |
||||||||||||||||||
Total Generation (4) |
5,222 |
6,974 |
(25.1%) |
27,153 |
26,231 |
3.5% |
||||||||||||||||||
Purchased Power and Net Interchange (5) |
2,596 |
1,688 |
53.8% |
8,618 |
8,529 |
1.0% |
||||||||||||||||||
Total Sources of Energy |
7,818 |
8,662 |
(9.7%) |
35,771 |
34,760 |
2.9% |
||||||||||||||||||
Less: Line Loss and Other |
74 |
361 |
(79.5%) |
1,403 |
1,242 |
13.0% |
||||||||||||||||||
Total GWh Sources |
7,744 |
8,301 |
(6.7%) |
34,368 |
33,518 |
2.5% |
||||||||||||||||||
Owned MW Capacity (3) |
||||||||||||||||||||||||
Summer |
6,817 |
7,493 |
||||||||||||||||||||||
Winter |
7,195 |
7,871 |
||||||||||||||||||||||
Heating and Cooling Degree Days |
||||||||||||||||||||||||
Actual |
||||||||||||||||||||||||
Heating Degree Days |
1,782 |
1,487 |
19.8% |
4,846 |
5,202 |
(6.8%) |
||||||||||||||||||
Cooling Degree Days |
40 |
6 |
566.7% |
1,348 |
1,076 |
25.3% |
||||||||||||||||||
Variance from Normal |
||||||||||||||||||||||||
Heating Degree Days |
(10.9%) |
(24.0%) |
n/a |
(9.3%) |
0.8% |
n/a |
||||||||||||||||||
Cooling Degree Days |
166.7% |
(73.9%) |
n/a |
24.5% |
(10.7%) |
n/a |
||||||||||||||||||
(1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e., unbilled sales) reflected as a single amount and not allocated to the respective retail classes. |
||||||||||||||||||||||||
(2) Represents weather normal total retail calendar sales (i.e., billed and unbilled sales). |
||||||||||||||||||||||||
(3) Statistics reflect Duke Energy's ownership share of jointly owned stations. |
||||||||||||||||||||||||
(4) Generation by source is reported net of auxiliary power. |
||||||||||||||||||||||||
(5) Purchased power includes renewable energy purchases. |
||||||||||||||||||||||||
Gas Utilities and Infrastructure |
||||||||||||||||||
Quarterly Highlights |
||||||||||||||||||
December 2016 |
||||||||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
|||||||||||||||||
2016 |
2015 |
% Inc.(Dec.) |
2016 |
2015 |
% Inc.(Dec.) |
|||||||||||||
Total Sales |
||||||||||||||||||
Piedmont Natural Gas Local Distribution Company (LDC) |
120,908,508 |
112,854,663 |
7.1% |
495,122,794 |
465,670,939 |
6.3% |
||||||||||||
Duke Energy Midwest LDC throughput (MCF) |
24,846,503 |
19,495,894 |
27.4% |
81,870,489 |
84,523,814 |
(3.1%) |
||||||||||||
Average Number of Customers - Piedmont Natural Gas (1) |
||||||||||||||||||
Residential |
934,940 |
921,239 |
1.5% |
934,523 |
919,482 |
1.6% |
||||||||||||
Commercial |
99,354 |
98,562 |
0.8% |
99,827 |
98,764 |
1.1% |
||||||||||||
Industrial |
2,289 |
2,282 |
0.3% |
2,294 |
2,297 |
(0.1%) |
||||||||||||
Power Generation |
25 |
25 |
—% |
25 |
25 |
—% |
||||||||||||
Total Average Number of Gas Customers - Piedmont |
1,036,608 |
1,022,108 |
1.4% |
1,036,669 |
1,020,568 |
1.6% |
||||||||||||
Average Number of Customers - Duke Energy Midwest |
||||||||||||||||||
Residential |
478,761 |
475,254 |
0.7% |
477,729 |
474,842 |
0.6% |
||||||||||||
Commercial |
43,196 |
43,378 |
(0.4%) |
43,124 |
43,253 |
(0.3%) |
||||||||||||
Industrial |
1,609 |
1,627 |
(1.1%) |
1,609 |
1,619 |
(0.6%) |
||||||||||||
Other Energy Sales |
142 |
142 |
—% |
144 |
142 |
1.4% |
||||||||||||
Total Average Number of Gas Customers - Duke Energy |
523,708 |
520,401 |
0.6% |
522,606 |
519,856 |
0.5% |
||||||||||||
(1) Sales and customer data for Piedmont Natural Gas include amounts prior to the acquisition on October 3, 2016, for comparative purposes. Duke Energy's consolidated financial results do not include Piedmont's results of operations prior to the date of acquisition. |
||||||||||||||||||
(2) Piedmont has a margin decoupling mechanism in North Carolina and weather normalization mechanisms in South Carolina and Tennessee that significantly eliminate the impact of throughput changes on earnings. Duke Energy Ohio's rate design also serves to offset this impact. |
||||||||||||||||||
Commercial Renewables |
||||||||||||
Quarterly Highlights |
||||||||||||
December 2016 |
||||||||||||
Three Months Ended December 31, |
Years Ended December 31, |
|||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||
Actual Renewable Plant Production, GWh |
1,946 |
1,664 |
7,565 |
5,577 |
||||||||
Net Proportional MW Capacity in Operation |
n/a |
n/a |
2,892 |
1,943 |
||||||||
DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Three Months Ended December 31, 2016 (Dollars in millions, except per-share amounts) |
||||||||||||||||||||||||||||
Special Items |
||||||||||||||||||||||||||||
Reported |
Costs to |
Cost |
International |
Discontinued |
Total |
Adjusted |
||||||||||||||||||||||
SEGMENT INCOME |
||||||||||||||||||||||||||||
Electric Utilities and Infrastructure |
$ |
483 |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
483 |
||||||||||||||
Gas Utilities and Infrastructure |
89 |
— |
— |
— |
— |
— |
89 |
|||||||||||||||||||||
Commercial Renewables |
10 |
— |
— |
— |
— |
— |
10 |
|||||||||||||||||||||
Total Reportable Segment Income |
582 |
— |
— |
— |
— |
— |
582 |
|||||||||||||||||||||
International Energy |
— |
— |
— |
40 |
C |
— |
40 |
40 |
||||||||||||||||||||
Other |
(209) |
134 |
A |
18 |
B |
— |
— |
152 |
(57) |
|||||||||||||||||||
Intercompany Eliminations |
1 |
— |
— |
— |
(1) |
(1) |
— |
|||||||||||||||||||||
Discontinued Operations |
(601) |
— |
— |
(40) |
C |
641 |
D |
601 |
— |
|||||||||||||||||||
Net Income Attributable to Duke Energy Corporation |
$ |
(227) |
$ |
134 |
$ |
18 |
$ |
— |
$ |
640 |
$ |
792 |
$ |
565 |
||||||||||||||
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED |
$ |
(0.33) |
$ |
0.19 |
$ |
0.03 |
$ |
— |
$ |
0.92 |
$ |
1.14 |
$ |
0.81 |
A - |
Net of $74 million tax benefit. $10 million recorded within Operating Revenues, $198 million recorded within Operating Expenses on the Consolidated Statements of Operations. |
B - |
Net of $11 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations. |
C - |
Net of $26 million tax expense. Operating results of the International Disposal Group, which exclude the loss and transaction-related costs described below, recorded within (Loss) Income from Discontinued Operations, net of tax on the Consolidated Statements of Operations. |
D - |
Recorded within (Loss) Income From Discontinued Operations, net of tax on the Consolidated Statements of Operations. Includes a loss on the sale of the International Disposal Group and other transaction-related costs. |
Weighted Average Shares, Diluted (reported and adjusted) - 699 million |
DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Twelve Months Ended December 31, 2016 (Dollars in millions, except per-share amounts) |
||||||||||||||||||||||||||||||||
Special Items |
||||||||||||||||||||||||||||||||
Reported |
Costs to |
Cost |
Commercial |
International |
Discontinued |
Total |
Adjusted |
|||||||||||||||||||||||||
SEGMENT INCOME |
||||||||||||||||||||||||||||||||
Electric Utilities and Infrastructure |
$ |
3,040 |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
3,040 |
||||||||||||||||
Gas Utilities and Infrastructure |
152 |
— |
— |
— |
— |
— |
— |
152 |
||||||||||||||||||||||||
Commercial Renewables |
23 |
— |
— |
45 |
C |
— |
— |
45 |
68 |
|||||||||||||||||||||||
Total Reportable Segment Income |
3,215 |
— |
— |
45 |
— |
— |
45 |
3,260 |
||||||||||||||||||||||||
International Energy |
— |
— |
— |
— |
243 |
D |
— |
243 |
243 |
|||||||||||||||||||||||
Other |
(645) |
329 |
A |
57 |
B |
— |
— |
— |
386 |
(259) |
||||||||||||||||||||||
Intercompany Eliminations |
1 |
— |
— |
— |
— |
(1) |
(1) |
— |
||||||||||||||||||||||||
Discontinued Operations |
(419) |
— |
— |
— |
(243) |
D |
662 |
E |
419 |
— |
||||||||||||||||||||||
Net Income Attributable to Duke Energy Corporation |
$ |
2,152 |
$ |
329 |
$ |
57 |
$ |
45 |
$ |
— |
$ |
661 |
$ |
1,092 |
$ |
3,244 |
||||||||||||||||
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED |
$ |
3.11 |
$ |
0.48 |
$ |
0.08 |
$ |
0.07 |
$ |
— |
$ |
0.95 |
$ |
1.58 |
$ |
4.69 |
A - |
Net of $194 million tax benefit. Includes $11 million recorded within Operating Revenues, $278 million recorded within Operating Expenses and $234 million recorded within Interest Expense on the Consolidated Statements of Operations. The interest expense primarily relates to losses on forward-starting interest rate swaps associated with the Piedmont acquisition financing. |
B - |
Net of $35 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations. |
C - |
Net of $26 million tax benefit. Other-than-temporary impairment included within Equity in earnings (losses) of unconsolidated affiliates on the Consolidated Statements of Operations. |
D - |
Net of $27 million tax expense. Operating results of the International Disposal Group, which exclude the loss and impairment described below and other miscellaneous transaction-related costs, recorded within (Loss) Income from Discontinued Operations, net of tax on the Consolidated Statements of Operations. |
E - |
Recorded within (Loss) Income From Discontinued Operations, net of tax on the Consolidated Statements of Operations. Includes a loss on the sale of the International Disposal Group, an impairment charge related to certain assets in Central America, and a tax benefit related to previously sold businesses. |
Weighted Average Shares, Diluted (reported and adjusted) - 691 million |
DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Three Months Ended December 31, 2015 (Dollars in millions, except per-share amounts) |
|||||||||||||||||||||||||||||||||||||||
Special Items |
|||||||||||||||||||||||||||||||||||||||
Reported |
Costs to |
Edwardsport |
Ash Basin Settlement |
Cost |
International |
Economic |
Discontinued |
Total |
Adjusted |
||||||||||||||||||||||||||||||
SEGMENT INCOME |
|||||||||||||||||||||||||||||||||||||||
Electric Utilities and Infrastructure |
$ |
569 |
$ |
— |
$ |
2 |
B |
$ |
7 |
C |
$ |
10 |
D |
$ |
— |
$ |
— |
$ |
— |
$ |
19 |
$ |
588 |
||||||||||||||||
Gas Utilities and Infrastructure |
14 |
— |
— |
— |
— |
— |
— |
— |
— |
14 |
|||||||||||||||||||||||||||||
Commercial Renewables |
17 |
— |
— |
— |
1 |
E |
— |
1 |
H |
— |
2 |
19 |
|||||||||||||||||||||||||||
Total Reportable Segment Income |
600 |
— |
2 |
7 |
11 |
— |
1 |
— |
21 |
621 |
|||||||||||||||||||||||||||||
International Energy |
— |
— |
— |
— |
— |
56 |
G |
— |
— |
56 |
56 |
||||||||||||||||||||||||||||
Other |
(170) |
18 |
A |
— |
— |
77 |
F |
— |
— |
— |
95 |
(75) |
|||||||||||||||||||||||||||
Discontinued Operations |
47 |
— |
— |
— |
— |
(56) |
G |
— |
9 |
I |
(47) |
— |
|||||||||||||||||||||||||||
Net Income Attributable to Duke Energy |
$ |
477 |
$ |
18 |
$ |
2 |
$ |
7 |
$ |
88 |
$ |
— |
$ |
1 |
$ |
9 |
$ |
125 |
$ |
602 |
|||||||||||||||||||
EPS ATTRIBUTABLE TO DUKE ENERGY |
$ |
0.69 |
$ |
0.03 |
$ |
— |
$ |
0.01 |
$ |
0.13 |
$ |
— |
$ |
— |
$ |
0.01 |
$ |
0.18 |
$ |
0.87 |
A - |
Net of $12 million tax benefit. Recorded within Operating Expenses on the Consolidated Statements of Operations. |
B - |
Net of $1 million tax benefit. $3 million recorded within Impairment charges on the Duke Energy Indiana Consolidated Statements of Operations. |
C - |
Recorded within Operation, maintenance and other on the Duke Energy Carolinas Consolidated Statements of Operations. |
D - |
Net of $6 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations. Includes $7 million at Duke Energy Carolinas, $4 million at Duke Energy Progress, $2 million at Duke Energy Florida, $1 million at Duke Energy Ohio and $2 million at Duke Energy Indiana. |
E - |
Net of $1 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations. |
F - |
Net of $47 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations. |
G - |
Net of $29 million tax expense. Operating results of the International Disposal Group classified as discontinued operations. |
H - |
Recorded within Operating Revenues on the Consolidated Statements of Operations. |
I - |
Recorded in Income (Loss) From Discontinued Operations, net of tax on the Consolidated Statements of Operations. |
Weighted Average Shares Outstanding, Diluted (reported and adjusted) - 688 million |
DUKE ENERGY CORPORATION REPORTED TO ADJUSTED EARNINGS RECONCILIATION Twelve Months Ended December 31, 2015 (Dollars in millions, except per-share amounts) |
|||||||||||||||||||||||||||||||||||||||
Special Items |
|||||||||||||||||||||||||||||||||||||||
Reported |
Costs to |
Edwardsport |
Midwest |
Ash Basin |
Cost |
International |
Discontinued |
Total |
Adjusted |
||||||||||||||||||||||||||||||
SEGMENT INCOME |
|||||||||||||||||||||||||||||||||||||||
Electric Utilities and Infrastructure |
$ |
2,819 |
$ |
— |
$ |
58 |
B |
$ |
— |
$ |
11 |
D |
$ |
10 |
E |
$ |
— |
$ |
— |
$ |
79 |
$ |
2,898 |
||||||||||||||||
Gas Utilities and Infrastructure |
73 |
— |
— |
— |
— |
— |
— |
— |
— |
73 |
|||||||||||||||||||||||||||||
Commercial Renewables |
52 |
— |
— |
— |
— |
1 |
F |
— |
— |
1 |
53 |
||||||||||||||||||||||||||||
Total Reportable Segment Income |
2,944 |
— |
58 |
— |
11 |
11 |
— |
— |
80 |
3,024 |
|||||||||||||||||||||||||||||
International Energy |
— |
— |
— |
— |
— |
— |
151 |
H |
— |
151 |
151 |
||||||||||||||||||||||||||||
Other |
(299) |
60 |
A |
— |
98 |
C |
— |
77 |
G |
— |
41 |
I |
276 |
(23) |
|||||||||||||||||||||||||
Discontinued Operations |
171 |
— |
— |
(98) |
C |
— |
— |
(151) |
H |
78 |
J |
(171) |
— |
||||||||||||||||||||||||||
Net Income Attributable to Duke Energy Corporation |
$ |
2,816 |
$ |
60 |
$ |
58 |
$ |
— |
$ |
11 |
$ |
88 |
$ |
— |
$ |
119 |
$ |
336 |
$ |
3,152 |
|||||||||||||||||||
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, |
$ |
4.05 |
$ |
0.09 |
$ |
0.08 |
$ |
— |
$ |
0.02 |
$ |
0.13 |
$ |
— |
$ |
0.17 |
$ |
0.49 |
$ |
4.54 |
A - |
Net of $37 million tax benefit. $95 million recorded within Operating Expenses and $2 million recorded within Interest Expense on the Consolidated Statements of Operations. |
B - |
Net of $35 million tax benefit. $88 million recorded within Impairment charges and $5 million recorded within Other income and expenses, net on the Duke Energy Indiana Consolidated Statements of Operations. |
C - |
Net of $53 million tax expense. Operating results of the nonregulated Midwest generation business classified as discontinued operations, which exclude special items and economic hedges. |
D - |
Net of $3 million tax benefit. Recorded within Operation, maintenance and other on the Consolidated Statements of Operations. Includes $8 million and $6 million at Duke Energy Carolinas and Duke Energy Progress, respectively. |
E - |
Net of $6 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations. Includes $7 million at Duke Energy Carolinas, $4 million at Duke Energy Progress, $2 million at Duke Energy Florida, $1 million at Duke Energy Ohio and $2 million at Duke Energy Indiana. |
F - |
Net of $1 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations. |
G - |
Net of $47 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations. |
H - |
Net of $70 million tax expense. Operating results of the International Disposal Group classified as discontinued operations. |
I - |
State tax expense resulting from the completion of the sale of the nonregulated Midwest generation business. |
J - |
Recorded in Income (Loss) From Discontinued Operations, net of tax on the Consolidated Statements of Operations, and includes the impact of a litigation reserve related to the nonregulated Midwest generation business. |
Weighted Average Shares Outstanding, Diluted (reported and adjusted) - 694 million |
DUKE ENERGY CORPORATION ADJUSTED EFFECTIVE TAX RECONCILIATION Three Months and Year Ended December 31, 2016 (Dollars in Millions) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
Balance |
Effective Tax Rate |
Balance |
Effective Tax Rate |
||||||||||||
Reported Income From Continuing Operations Before Income Taxes |
$ |
512 |
$ |
3,734 |
|||||||||||
Costs to Achieve Mergers |
208 |
523 |
|||||||||||||
Cost Savings Initiatives |
29 |
92 |
|||||||||||||
Commercial Renewables Impairment |
— |
71 |
|||||||||||||
International Energy Operations |
66 |
270 |
|||||||||||||
Noncontrolling Interests |
(2) |
(7) |
|||||||||||||
Intercompany Eliminations |
(1) |
(1) |
|||||||||||||
Adjusted Pretax Income |
$ |
812 |
$ |
4,682 |
|||||||||||
Reported Income Tax Expense From Continuing Operations |
$ |
136 |
26.6% |
$ |
1,156 |
31.0% |
|||||||||
Costs to Achieve Mergers |
74 |
194 |
|||||||||||||
Cost Savings Initiatives |
11 |
35 |
|||||||||||||
Commercial Renewables Impairment |
— |
26 |
|||||||||||||
International Energy Operations |
26 |
27 |
|||||||||||||
Adjusted Tax Expense |
$ |
247 |
30.4% |
* |
$ |
1,438 |
30.7% |
* |
|||||||
*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. |
DUKE ENERGY CORPORATION ADJUSTED EFFECTIVE TAX RECONCILIATION Three Months and Year Ended December 31, 2015 (Dollars in Millions) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
Balance |
Effective Tax Rate |
Balance |
Effective Tax Rate |
||||||||||||
Reported Income From Continuing Operations Before Income Taxes |
$ |
612 |
$ |
3,910 |
|||||||||||
Costs to Achieve Mergers |
30 |
97 |
|||||||||||||
Edwardsport Settlement |
3 |
93 |
|||||||||||||
Midwest Generation Operations |
— |
151 |
|||||||||||||
Ash Basin Settlement and Penalties |
7 |
14 |
|||||||||||||
Cost Savings Initiatives |
142 |
142 |
|||||||||||||
International Energy Operations |
85 |
221 |
|||||||||||||
Economic Hedges (Mark-to-Market) |
1 |
— |
|||||||||||||
Noncontrolling Interests |
(3) |
(9) |
|||||||||||||
Adjusted Pretax Income |
$ |
877 |
$ |
4,619 |
|||||||||||
Reported Income Tax Expense From Continuing Operations |
$ |
179 |
29.2% |
$ |
1,256 |
32.1% |
|||||||||
Tax Adjustment Related to Midwest Generation Sale |
— |
(41) |
|||||||||||||
Costs to Achieve Mergers |
12 |
37 |
|||||||||||||
Edwardsport Settlement |
1 |
35 |
|||||||||||||
Midwest Generation Operations |
— |
53 |
|||||||||||||
Ash Basin Settlement and Penalties |
— |
3 |
|||||||||||||
Cost Savings Initiatives |
54 |
54 |
|||||||||||||
International Energy Operations |
29 |
70 |
|||||||||||||
Adjusted Tax Expense |
$ |
275 |
31.4% |
* |
$ |
1,467 |
31.8% |
* |
|||||||
*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. |
SOURCE Duke Energy
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