Investments In Debt And Equity Securities |
INVESTMENTS IN DEBT AND EQUITY SECURITIES The Duke Energy Registrants classify their investments in debt and equity securities as either trading or available-for-sale. TRADING SECURITIES Piedmont's investments in debt and equity securities held in rabbi trusts associated with certain deferred compensation plans are classified as trading securities. The fair value of these investments was $5 million as of March 31, 2017 and December 31, 2016. AVAILABLE-FOR-SALE SECURITIES All other investments in debt and equity securities are classified as available-for-sale. Duke Energy’s available-for-sale securities are primarily comprised of investments held in (i) the nuclear decommissioning fund (NDTF) at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, (ii) grantor trusts at Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana related to Other Post-Retirement Benefit Obligations (OPEB) plans and (iii) Bison. Duke Energy classifies all other investments in debt and equity securities as long term, unless otherwise noted. Investment Trusts The investments within the NDTF investments and the Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana grantor trusts (Investment Trusts) are managed by independent investment managers with discretion to buy, sell, and invest pursuant to the objectives set forth by the trust agreements. The Duke Energy Registrants have limited oversight of the day-to-day management of these investments. As a result, the ability to hold investments in unrealized loss positions is outside the control of the Duke Energy Registrants. Accordingly, all unrealized losses associated with debt and equity securities within the Investment Trusts are considered OTTIs and are recognized immediately. Investments within the Investment Trusts generally qualify for regulatory accounting, and accordingly realized and unrealized gains and losses are deferred as a regulatory asset or liability. Other Available-for-Sale Securities Unrealized gains and losses on all other available-for-sale securities are included in other comprehensive income until realized, unless it is determined the carrying value of an investment is other-than-temporarily impaired. The Duke Energy Registrants analyze all investment holdings each reporting period to determine whether a decline in fair value should be considered other-than-temporary. If an OTTI exists, the unrealized credit loss is included in earnings. There were no material credit losses as of March 31, 2017 and December 31, 2016. DUKE ENERGY The following table presents the estimated fair value of investments in available-for-sale securities. | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2017 | | December 31, 2016 | | Gross |
| | Gross |
| | | | Gross |
| | Gross |
| | | | Unrealized |
| | Unrealized |
| | Estimated |
| | Unrealized |
| | Unrealized |
| | Estimated |
| | Holding |
| | Holding |
| | Fair |
| | Holding |
| | Holding |
| | Fair |
| (in millions) | Gains |
| | Losses(a) |
| | Value |
| | Gains |
| | Losses(a) |
| | Value |
| NDTF | | | | | | | | | | | | Cash and cash equivalents | $ | — |
| | $ | — |
| | $ | 114 |
| | $ | — |
| | $ | — |
| | $ | 111 |
| Equity securities | 2,250 |
| | 32 |
| | 4,284 |
| | 2,092 |
| | 54 |
| | 4,106 |
| Corporate debt securities | 10 |
| | 5 |
| | 576 |
| | 10 |
| | 8 |
| | 528 |
| Municipal bonds | 3 |
| | 6 |
| | 336 |
| | 3 |
| | 10 |
| | 331 |
| U.S. government bonds | 10 |
| | 8 |
| | 949 |
| | 10 |
| | 8 |
| | 984 |
| Other debt securities | — |
| | 3 |
| | 132 |
| | — |
| | 3 |
| | 124 |
| Total NDTF | $ | 2,273 |
| | $ | 54 |
| | $ | 6,391 |
| | $ | 2,115 |
| | $ | 83 |
| | $ | 6,184 |
| Other Investments | | | | | | | | | | | | Cash and cash equivalents | $ | — |
| | $ | — |
| | $ | 18 |
| | $ | — |
| | $ | — |
| | $ | 25 |
| Equity securities | 44 |
| | — |
| | 106 |
| | 38 |
| | — |
| | 104 |
| Corporate debt securities | 1 |
| | — |
| | 60 |
| | 1 |
| | 1 |
| | 66 |
| Municipal bonds | 2 |
| | 1 |
| | 84 |
| | 2 |
| | 1 |
| | 82 |
| U.S. government bonds | — |
| | — |
| | 43 |
| | — |
| | 1 |
| | 51 |
| Other debt securities | — |
| | 2 |
| | 42 |
| | — |
| | 2 |
| | 42 |
| Total Other Investments(b) | $ | 47 |
| | $ | 3 |
| | $ | 353 |
| | $ | 41 |
| | $ | 5 |
| | $ | 370 |
| Total Investments | $ | 2,320 |
| | $ | 57 |
| | $ | 6,744 |
| | $ | 2,156 |
| | $ | 88 |
| | $ | 6,554 |
|
| | (a) | Substantially all amounts are considered OTTIs on investments within Investment Trusts that have been recognized immediately as a regulatory asset. |
| | (b) | These amounts are recorded in Other within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets. |
The table below summarizes the maturity date for debt securities. | | | | | (in millions) | March 31, 2017 |
| Due in one year or less | $ | 82 |
| Due after one through five years | 640 |
| Due after five through 10 years | 514 |
| Due after 10 years | 986 |
| Total | $ | 2,222 |
|
Realized gains and losses, which were determined on a specific identification basis, from sales of available-for-sale securities were as follows. | | | | | | | | | | Three Months Ended | | March 31, | (in millions) | 2017 |
| | 2016 |
| Realized gains | $ | 93 |
| | $ | 54 |
| Realized losses | 62 |
| | 50 |
|
DUKE ENERGY CAROLINAS The following table presents the estimated fair value of investments in available-for-sale securities. | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2017 | | December 31, 2016 | | Gross |
| | Gross |
| | | | Gross |
| | Gross |
| | | | Unrealized |
| | Unrealized |
| | Estimated |
| | Unrealized |
| | Unrealized |
| | Estimated |
| | Holding |
| | Holding |
| | Fair |
| | Holding |
| | Holding |
| | Fair |
| (in millions) | Gains |
| | Losses(a) |
| | Value |
| | Gains |
| | Losses(a) |
| | Value |
| NDTF | | | | | | | | | | | | Cash and cash equivalents | $ | — |
| | $ | — |
| | $ | 20 |
| | $ | — |
| | $ | — |
| | $ | 18 |
| Equity securities | 1,229 |
| | 15 |
| | 2,366 |
| | 1,157 |
| | 28 |
| | 2,245 |
| Corporate debt securities | 5 |
| | 4 |
| | 388 |
| | 5 |
| | 6 |
| | 354 |
| Municipal bonds | 1 |
| | 1 |
| | 67 |
| | 1 |
| | 2 |
| | 67 |
| U.S. government bonds | 3 |
| | 5 |
| | 431 |
| | 2 |
| | 5 |
| | 458 |
| Other debt securities | — |
| | 3 |
| | 120 |
| | — |
| | 3 |
| | 116 |
| Total NDTF | $ | 1,238 |
| | $ | 28 |
|
| $ | 3,392 |
| | $ | 1,165 |
| | $ | 44 |
| | $ | 3,258 |
| Other Investments | | | | | | | | | | | | Other debt securities | $ | — |
| | $ | 1 |
| | $ | 3 |
| | $ | — |
| | $ | 1 |
| | $ | 3 |
| Total Other Investments(b) | $ | — |
| | $ | 1 |
| | $ | 3 |
| | $ | — |
| | $ | 1 |
| | $ | 3 |
| Total Investments | $ | 1,238 |
| | $ | 29 |
| | $ | 3,395 |
| | $ | 1,165 |
| | $ | 45 |
| | $ | 3,261 |
|
| | (a) | Substantially all amounts are considered OTTIs on investments within Investment Trusts that have been recognized immediately as a regulatory asset. |
| | (b) | These amounts are recorded in Other within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets. |
The table below summarizes the maturity date for debt securities. | | | | | (in millions) | March 31, 2017 |
| Due in one year or less | $ | 2 |
| Due after one through five years | 221 |
| Due after five through 10 years | 269 |
| Due after 10 years | 517 |
| Total | $ | 1,009 |
|
Realized gains and losses, which were determined on a specific identification basis, from sales of available-for-sale securities were as follows. | | | | | | | | | | Three Months Ended | | March 31, | (in millions) | 2017 |
| | 2016 |
| Realized gains | $ | 66 |
| | $ | 34 |
| Realized losses | 40 |
| | 37 |
|
PROGRESS ENERGY The following table presents the estimated fair value of investments in available-for-sale securities. | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2017 | | December 31, 2016 | | Gross |
| | Gross |
| | | | Gross |
| | Gross |
| | | | Unrealized |
| | Unrealized |
| | Estimated |
| | Unrealized |
| | Unrealized |
| | Estimated |
| | Holding |
| | Holding |
| | Fair |
| | Holding |
| | Holding |
| | Fair |
| (in millions) | Gains |
| | Losses(a) |
| | Value |
| | Gains |
| | Losses(a) |
| | Value |
| NDTF | | | | | | | | | | | | Cash and cash equivalents | $ | — |
| | $ | — |
| | $ | 94 |
| | $ | — |
| | $ | — |
| | $ | 93 |
| Equity securities | 1,021 |
| | 17 |
| | 1,918 |
| | 935 |
| | 26 |
| | 1,861 |
| Corporate debt securities | 5 |
| | 1 |
| | 188 |
| | 5 |
| | 2 |
| | 174 |
| Municipal bonds | 2 |
| | 5 |
| | 269 |
| | 2 |
| | 8 |
| | 264 |
| U.S. government bonds | 7 |
| | 3 |
| | 518 |
| | 8 |
| | 3 |
| | 526 |
| Other debt securities | — |
| | — |
| | 12 |
| | — |
| | — |
| | 8 |
| Total NDTF | $ | 1,035 |
| | $ | 26 |
| | $ | 2,999 |
| | $ | 950 |
| | $ | 39 |
| | $ | 2,926 |
| Other Investments | | | | | | | | | | | | Cash and cash equivalents | $ | — |
| | $ | — |
| | $ | 12 |
| | $ | — |
| | $ | — |
| | $ | 21 |
| Municipal bonds | 2 |
| | — |
| | 46 |
| | 2 |
| | — |
| | 44 |
| Total Other Investments(b) | $ | 2 |
| | $ | — |
| | $ | 58 |
| | $ | 2 |
| | $ | — |
| | $ | 65 |
| Total Investments | $ | 1,037 |
| | $ | 26 |
| | $ | 3,057 |
| | $ | 952 |
| | $ | 39 |
| | $ | 2,991 |
|
| | (a) | Substantially all amounts are considered OTTIs on investments within Investment Trusts that have been recognized immediately as a regulatory asset. |
| | (b) | These amounts are recorded in Other within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets. |
The table below summarizes the maturity date for debt securities. | | | | | (in millions) | March 31, 2017 |
| Due in one year or less | $ | 72 |
| Due after one through five years | 355 |
| Due after five through 10 years | 189 |
| Due after 10 years | 417 |
| Total | $ | 1,033 |
|
Realized gains and losses, which were determined on a specific identification basis, from sales of available-for-sale securities were as follows. | | | | | | | | | | Three Months Ended | | March 31, | (in millions) | 2017 |
| | 2016 |
| Realized gains | $ | 27 |
| | $ | 19 |
| Realized losses | 21 |
| | 13 |
|
DUKE ENERGY PROGRESS The following table presents the estimated fair value of investments in available-for-sale securities. | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2017 | | December 31, 2016 | | Gross |
| | Gross |
| | | | Gross |
| | Gross |
| | | | Unrealized |
| | Unrealized |
| | Estimated |
| | Unrealized |
| | Unrealized |
| | Estimated |
| | Holding |
| | Holding |
| | Fair |
| | Holding |
| | Holding |
| | Fair |
| (in millions) | Gains |
| | Losses(a) |
| | Value |
| | Gains |
| | Losses(a) |
| | Value |
| NDTF | | | | | | | | | | | | Cash and cash equivalents | $ | — |
| | $ | — |
| | $ | 43 |
| | $ | — |
| | $ | — |
| | $ | 45 |
| Equity securities | 772 |
| | 13 |
| | 1,541 |
| | 704 |
| | 21 |
| | 1,505 |
| Corporate debt securities | 4 |
| | 1 |
| | 131 |
| | 4 |
| | 1 |
| | 120 |
| Municipal bonds | 2 |
| | 5 |
| | 268 |
| | 2 |
| | 8 |
| | 263 |
| U.S. government bonds | 5 |
| | 2 |
| | 284 |
| | 5 |
| | 2 |
| | 275 |
| Other debt securities | — |
| | — |
| | 7 |
| | — |
| | — |
| | 5 |
| Total NDTF | $ | 783 |
| | $ | 21 |
| | $ | 2,274 |
| | $ | 715 |
| | $ | 32 |
| | $ | 2,213 |
| Other Investments | | | | | | | | | | | | Cash and cash equivalents | $ | — |
| | $ | — |
| | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | 1 |
| Total Other Investments(b) | $ | — |
| | $ | — |
| | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | 1 |
| Total Investments | $ | 783 |
| | $ | 21 |
| | $ | 2,275 |
| | $ | 715 |
| | $ | 32 |
| | $ | 2,214 |
|
| | (a) | Substantially all amounts are considered OTTIs on investments within Investment Trusts that have been recognized immediately as a regulatory asset. |
| | (b) | These amounts are recorded in Other within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets. |
The table below summarizes the maturity date for debt securities. | | | | | (in millions) | March 31, 2017 |
| Due in one year or less | $ | 17 |
| Due after one through five years | 215 |
| Due after five through 10 years | 142 |
| Due after 10 years | 316 |
| Total | $ | 690 |
|
Realized gains and losses, which were determined on a specific identification basis, from sales of available-for-sale securities were as follows. | | | | | | | | | | Three Months Ended | | March 31, | (in millions) | 2017 |
| | 2016 |
| Realized gains | $ | 24 |
| | $ | 15 |
| Realized losses | 19 |
| | 11 |
|
DUKE ENERGY FLORIDA The following table presents the estimated fair value of investments in available-for-sale securities. | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2017 | | December 31, 2016 | | Gross |
| | Gross |
| | | | Gross |
| | Gross |
| | | | Unrealized |
| | Unrealized |
| | Estimated |
| | Unrealized |
| | Unrealized |
| | Estimated |
| | Holding |
| | Holding |
| | Fair |
| | Holding |
| | Holding |
| | Fair |
| (in millions) | Gains |
| | Losses(a) |
| | Value |
| | Gains |
| | Losses(a) |
| | Value |
| NDTF | | | | | | | | | | | | Cash and cash equivalents | $ | — |
| | $ | — |
| | $ | 51 |
| | $ | — |
| | $ | — |
| | $ | 48 |
| Equity securities | 249 |
| | 4 |
| | 377 |
| | 231 |
| | 5 |
| | 356 |
| Corporate debt securities | 1 |
| | — |
| | 57 |
| | 1 |
| | 1 |
| | 54 |
| Municipal bonds | — |
| | — |
| | 1 |
| | — |
| | — |
| | 1 |
| U.S. government bonds | 2 |
| | 1 |
| | 234 |
| | 3 |
| | 1 |
| | 251 |
| Other debt securities | — |
| | — |
| | 5 |
| | — |
| | — |
| | 3 |
| Total NDTF(b) | $ | 252 |
| | $ | 5 |
| | $ | 725 |
| | $ | 235 |
| | $ | 7 |
| | $ | 713 |
| Other Investments | | | | | | | | | | | | Cash and cash equivalents | $ | — |
| | $ | — |
| | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | 4 |
| Municipal bonds | 2 |
| | — |
| | 46 |
| | 2 |
| | — |
| | 44 |
| Total Other Investments(c) | $ | 2 |
| | $ | — |
| | $ | 47 |
| | $ | 2 |
| | $ | — |
| | $ | 48 |
| Total Investments | $ | 254 |
| | $ | 5 |
| | $ | 772 |
| | $ | 237 |
| | $ | 7 |
| | $ | 761 |
|
| | (a) | Substantially all amounts are considered OTTIs on investments within Investment Trusts that have been recognized immediately as a regulatory asset. |
| | (b) | During the three months ended March 31, 2017, Duke Energy Florida continued to receive reimbursements from the NDTF for costs related to ongoing commissioning activity of the Crystal River Unit 3 nuclear plant. |
| | (c) | These amounts are recorded in Other within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets. |
The table below summarizes the maturity date for debt securities. | | | | | (in millions) | March 31, 2017 |
| Due in one year or less | $ | 55 |
| Due after one through five years | 140 |
| Due after five through 10 years | 47 |
| Due after 10 years | 101 |
| Total | $ | 343 |
|
Realized gains and losses, which were determined on a specific identification basis, from sales of available-for-sale securities were as follows. | | | | | | | | | | Three Months Ended | | March 31, | (in millions) | 2017 |
| | 2016 |
| Realized gains | $ | 3 |
| | $ | 4 |
| Realized losses | 2 |
| | 2 |
|
DUKE ENERGY INDIANA The following table presents the estimated fair value of investments in available-for-sale securities. | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2017 | | December 31, 2016 | | Gross |
| | Gross |
| | | | Gross |
| | Gross |
| | | | Unrealized |
| | Unrealized |
| | Estimated |
| | Unrealized |
| | Unrealized |
| | Estimated |
| | Holding |
| | Holding |
| | Fair |
| | Holding |
| | Holding |
| | Fair |
| (in millions) | Gains |
| | Losses(a) |
| | Value |
| | Gains |
| | Losses(a) |
| | Value |
| Other Investments | | | | | | | | | | | | Equity securities | $ | 38 |
| | $ | — |
| | $ | 84 |
| | $ | 33 |
| | $ | — |
| | $ | 79 |
| Corporate debt securities | — |
| | — |
| | 2 |
| | — |
| | — |
| | 2 |
| Municipal bonds | — |
| | 1 |
| | 28 |
| | — |
| | 1 |
| | 28 |
| U.S. government bonds | — |
| | — |
| | 1 |
| | — |
| | — |
| | 1 |
| Total Other Investments(b) | $ | 38 |
| | $ | 1 |
|
| $ | 115 |
| | $ | 33 |
| | $ | 1 |
| | $ | 110 |
| Total Investments | $ | 38 |
| | $ | 1 |
| | $ | 115 |
| | $ | 33 |
| | $ | 1 |
| | $ | 110 |
|
| | (a) | Substantially all amounts are considered OTTIs on investments within Investment Trusts that have been recognized immediately as a regulatory asset. |
| | (b) | These amounts are recorded in Other within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets. |
The table below summarizes the maturity date for debt securities. | | | | | (in millions) | March 31, 2017 |
| Due in one year or less | $ | 2 |
| Due after one through five years | 15 |
| Due after five through 10 years | 9 |
| Due after 10 years | 5 |
| Total | $ | 31 |
|
Realized gains and losses, which were determined on a specific identification basis, from sales of available-for-sale securities were insignificant for the three months ended March 31, 2017 and 2016.
|