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23.05.17
ROUNDUP/Aktien New York Schluss: Dow schleppt sich weiter nach oben - Daten

Duke Energy reports fourth quarter and full-year 2016 financial results

Donnerstag, 16.02.2017 13:00 von

PR Newswire

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
Amount

4Q 2016
EPS

4Q 2015
EPS


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
Amount

Full-Year
2016 EPS

Full- Year
2015 EPS


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.

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 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
Corporation common stockholders








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
Utilities and
Infrastructure


Gas
Utilities and
Infrastructure


Commercial
Renewables


International
Energy


Other


Discontinued
Operations


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
Utilities and

Infrastructure


Gas

Utilities and
Infrastructure


Commercial
Renewables


International
Energy


Other


Discontinued
Operations


Consolidated

Continuing
Operations

Midwest
Generation

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.
(Dec.)

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.
(Dec.)

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.
(Dec.)

Weather

Normal (2)


2016


2015


%

Inc.(Dec.)


% Inc.
(Dec.)

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.
(Dec.)

Weather

Normal (2)


2016


2015


%

Inc.(Dec.)


% Inc.
(Dec.)

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.
(Dec.)

Weather

Normal (2)


2016


2015


%

Inc.(Dec.)


% Inc.
(Dec.)

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.
(Dec.)

Weather

Normal (2)


2016


2015


%

Inc.(Dec.)


% Inc.
(Dec.)

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)
throughput (dekatherms) (1) (2)

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
Natural Gas

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
Midwest

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
Earnings


Costs to
Achieve
Mergers


Cost
Savings
Initiatives


International
Energy
Operations


Discontinued
Operations


Total
Adjustments


Adjusted
Earnings

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
Earnings


Costs to
Achieve
Mergers


Cost
Savings
Initiatives


Commercial
Renewables
Impairment


International
Energy
Operations


Discontinued
Operations


Total
Adjustments


Adjusted
Earnings

SEGMENT INCOME

















Electric Utilities and Infrastructure


$

3,040



$



$



$



$



$



$



$

3,040


Gas Utilities and 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
Earnings


Costs to
Achieve
Mergers


Edwardsport
Settlement


Ash Basin

Settlement
and
Penalties


Cost
Savings
Initiatives


International
Energy
Operations


Economic
Hedges
(Mark-to-
Market)


Discontinued
Operations


Total
Adjustments


Adjusted
Earnings

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
Corporation

$

477



$

18



$

2



$

7



$

88



$



$

1



$

9



$

125



$

602


EPS ATTRIBUTABLE TO DUKE ENERGY
CORPORATION, DILUTED

$

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
Earnings


Costs to
Achieve
Mergers


Edwardsport
Settlement


Midwest
Generation
Operations


Ash Basin
Settlement
and
Penalties


Cost
Savings
Initiatives


International
Energy
Operations


Discontinued
Operations


Total
Adjustments


Adjusted
Earnings

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,
DILUTED

$

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
 December 31, 2016


Year Ended
 December 31, 2016




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
 December 31, 2015


Year Ended
 December 31, 2015




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.


 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/duke-energy-reports-fourth-quarter-and-full-year-2016-financial-results-300408445.html

SOURCE Duke Energy