Goodwill and Intangible Assets |
GOODWILL AND INTANGIBLE ASSETS Goodwill The following tables present goodwill by reportable operating segment for Duke Energy and Duke Energy Ohio. Duke Energy | | | | | | | | | | | | | | | | | (in millions) | Regulated Utilities |
| | International Energy |
| | Commercial Power |
| | Total |
| Balance at December 31, 2013 | | | | | | | | Goodwill | $ | 15,950 |
| | $ | 326 |
| | $ | 935 |
| | $ | 17,211 |
| Accumulated impairment charges | — |
| | — |
| | (871 | ) | | (871 | ) | Balance at December 31, 2013, net of accumulated impairment charges | 15,950 |
| | 326 |
| | 64 |
| | 16,340 |
| Foreign exchange and other changes | — |
| | (19 | ) | | — |
| | (19 | ) | Balance at December 31, 2014 | | | | | | | | Goodwill | 15,950 |
| | 307 |
| | 935 |
| | 17,192 |
| Accumulated impairment charges | — |
| | — |
| | (871 | ) | | (871 | ) | Balance at December 31, 2014, net of accumulated impairment charges | $ | 15,950 |
| | $ | 307 |
| | $ | 64 |
| | $ | 16,321 |
|
Duke Energy Ohio | | | | | | | | | | | | | (in millions) | Regulated Utilities |
| | Commercial Power |
| | Total |
| Balance at December 31, 2013 | | | | | | Goodwill | $ | 1,136 |
| | $ | 1,188 |
| | $ | 2,324 |
| Accumulated impairment charges | (216 | ) | | (1,188 | ) | | (1,404 | ) | Balance at December 31, 2013, net of accumulated impairment charges | 920 |
| | — |
| | 920 |
| Balance at December 31, 2014 | | | | | | Goodwill | 1,136 |
| | 1,188 |
| | 2,324 |
| Accumulated impairment charges | (216 | ) | | (1,188 | ) | | (1,404 | ) | Balance at December 31, 2014, net of accumulated impairment charges | $ | 920 |
| | $ | — |
| | $ | 920 |
|
Progress Energy Progress Energy's Goodwill is included in the Regulated Utilities operating segment and there are no accumulated impairment charges. Impairment Testing Duke Energy, Duke Energy Ohio and Progress Energy are required to perform an annual goodwill impairment test as of the same date each year and, accordingly, performs its annual impairment testing of goodwill as of August 31. Duke Energy, Duke Energy Ohio and Progress Energy update their test between annual tests if events or circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value. As the fair value of Duke Energy, Duke Energy Ohio and Progress Energy’s reporting units exceeded their respective carrying values at the date of the annual impairment analysis, no impairment charges were recorded in 2014. Intangible Assets The following tables show the carrying amount and accumulated amortization of intangible assets within Other on the Consolidated Balance Sheets of the Duke Energy Registrants at December 31, 2014 and 2013. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2014 | (in millions) | Duke Energy |
| | Duke Energy Carolinas |
| | Progress Energy |
| | Duke Energy Progress |
| | Duke Energy Florida |
| | Duke Energy Ohio (a) |
| | Duke Energy Indiana |
| Emission allowances | $ | 23 |
| | $ | 1 |
| | $ | 7 |
| | $ | 3 |
| | $ | 4 |
| | $ | — |
| | $ | 16 |
| Renewable energy certificates | 97 |
| | 25 |
| | 69 |
| | 69 |
| | — |
| | 3 |
| | — |
| Gas, coal and power contracts | 24 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 24 |
| Wind development rights | 97 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Other | 76 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Total gross carrying amounts | 317 |
| | 26 |
| | 76 |
| | 72 |
| | 4 |
| | 3 |
| | 40 |
| Accumulated amortization - gas, coal and power contracts | (15 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | (15 | ) | Accumulated amortization - wind development rights | (14 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Accumulated amortization - other | (25 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Total accumulated amortization | (54 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | (15 | ) | Total intangible assets, net | $ | 263 |
|
| $ | 26 |
|
| $ | 76 |
|
| $ | 72 |
|
| $ | 4 |
|
| $ | 3 |
|
| $ | 25 |
|
| | (a) | During 2014, Duke Energy Ohio reduced the carrying amount of OVEC to zero. A charge of $94 million is recorded in Impairment Charges on Duke Energy Ohio's Consolidated Statement of Operations. In addition, Duke Energy Ohio has emission allowances and renewable energy certificates that have been reclassified to Assets Held For Sale pending the sale of the Disposal Group. See Note 17 for further information. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2013 | (in millions) | Duke Energy |
| | Duke Energy Carolinas |
| | Progress Energy |
| | Duke Energy Progress |
| | Duke Energy Florida |
| | Duke Energy Ohio |
| | Duke Energy Indiana |
| Emission allowances | $ | 63 |
| | $ | 1 |
| | $ | 21 |
| | $ | 3 |
| | $ | 18 |
| | $ | 20 |
| | $ | 21 |
| Renewable energy certificates | 82 |
| | 16 |
| | 64 |
| | 64 |
| | — |
| | 2 |
| | — |
| Gas, coal and power contracts | 180 |
| | — |
| | — |
| | — |
| | — |
| | 156 |
| | 24 |
| Wind development rights | 86 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Other | 76 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Total gross carrying amounts | 487 |
| | 17 |
| | 85 |
| | 67 |
| | 18 |
| | 178 |
| | 45 |
| Accumulated amortization - gas, coal and power contracts | (73 | ) | | — |
| | — |
| | — |
| | — |
| | (60 | ) | | (13 | ) | Accumulated amortization - wind development rights | (12 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Accumulated amortization - other | (24 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Total accumulated amortization | (109 | ) | | — |
| | — |
| | — |
| | — |
| | (60 | ) | | (13 | ) | Total intangible assets, net | $ | 378 |
|
| $ | 17 |
|
| $ | 85 |
|
| $ | 67 |
|
| $ | 18 |
|
| $ | 118 |
|
| $ | 32 |
|
Amortization Expense The following table presents amortization expense for gas, coal and power contracts, wind development rights and other intangible assets. | | | | | | | | | | | | | | December 31, | (in millions) | 2014 |
| | 2013 |
| | 2012 |
| Duke Energy | $ | 6 |
| | $ | 13 |
| | $ | 14 |
| Duke Energy Ohio | 2 |
| | 8 |
| | 12 |
| Duke Energy Indiana | 1 |
| | 1 |
| | 1 |
|
The table below shows the expected amortization expense for the next five years for intangible assets as of December 31, 2014. The expected amortization expense includes estimates of emission allowances consumption and estimates of consumption of commodities such as gas and coal under existing contracts, as well as estimated amortization related to the wind development projects. The amortization amounts discussed below are estimates and actual amounts may differ from these estimates due to such factors as changes in consumption patterns, sales or impairments of emission allowances or other intangible assets, delays in the in-service dates of wind assets, additional intangible acquisitions and other events. | | | | | | | | | | | | | | | | | | | | | (in millions) | 2015 |
| | 2016 |
| | 2017 |
| | 2018 |
| | 2019 |
| Duke Energy | $ | 11 |
| | $ | 8 |
| | $ | 7 |
| | $ | 7 |
| | $ | 7 |
| Duke Energy Ohio | 2 |
| | 1 |
| | 1 |
| | 1 |
| | 1 |
| Duke Energy Indiana | 5 |
| | 3 |
| | 2 |
| | 2 |
| | 2 |
|
|