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Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets GOODWILL AND INTANGIBLE ASSETS
GOODWILL
Duke Energy
The following table presents goodwill by reportable segment for Duke Energy included on Duke Energy's Consolidated Balance Sheets at December 31, 2019, and 2018.
 
Electric Utilities

 
Gas Utilities

 
Commercial

 
 
(in millions)
and Infrastructure

 
and Infrastructure

 
Renewables

 
Total

Goodwill Balance at December 31, 2018
$
17,379

 
$
1,924

 
$
122

 
$
19,425

Accumulated impairment charges(a)
—

 
—

 
(122
)
 
(122
)
Goodwill balance at December 31, 2018, adjusted for accumulated impairment charges
$
17,379

 
$
1,924

 
$
—

 
$
19,303

 
 
 
 
 
 
 
 
Goodwill Balance at December 31, 2019
$
17,379

 
$
1,924

 
$
122

 
$
19,425

Accumulated impairment charges(a)
—

 
—

 
(122
)
 
(122
)
Goodwill balance at December 31, 2019, adjusted for accumulated impairment charges
$
17,379

 
$
1,924

 
$
—

 
$
19,303


(a)
Duke Energy evaluated the recoverability of goodwill during 2018 and 2017 and recorded impairment charges of $93 million and $29 million, respectively, related to the Commercial Renewables reporting unit included in Impairment charges on Duke Energy’s Consolidated Statements of Operations. The fair value of the reporting unit was determined based on the income approach and market approach in 2018 and 2017, respectively. See "Goodwill Impairment Testing" below for the results of the 2019 goodwill impairment test.
Duke Energy Ohio
Duke Energy Ohio's Goodwill balance of $920 million, allocated $596 million to Electric Utilities and Infrastructure and $324 million to Gas Utilities and Infrastructure, is presented net of accumulated impairment charges of $216 million on the Consolidated Balance Sheets at December 31, 2019, and 2018.
Progress Energy
Progress Energy's Goodwill is included in the Electric Utilities and Infrastructure segment and there are no accumulated impairment charges.
Piedmont
Piedmont's Goodwill is included in the Gas Utilities and Infrastructure segment and there are no accumulated impairment charges.
Goodwill Impairment Testing
Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont are required to perform an annual goodwill impairment test as of the same date each year and, accordingly, perform their annual impairment testing of goodwill as of August 31. Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont 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 for Duke Energy, Progress Energy, Duke Energy Ohio and Piedmont exceeded their respective carrying values at the date of the annual impairment analysis, no goodwill impairment charges were recorded in 2019.
INTANGIBLE ASSETS
The following tables show the carrying amount and accumulated amortization of intangible assets included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets of the Duke Energy Registrants at December 31, 2019, and 2018.
 
December 31, 2019
 
 
 
Duke

 
 
 
Duke

 
Duke

 
Duke

 
Duke

 
 
 
Duke

 
Energy

 
Progress

 
Energy

 
Energy

 
Energy

 
Energy

 
 
(in millions)
Energy

 
Carolinas

 
Energy

 
Progress

 
Florida

 
Ohio

 
Indiana

 
Piedmont

Emission allowances
$
18

 
$
—

 
$
5

 
$
2

 
$
3

 
$
—

 
$
12

 
$
—

Renewable energy certificates
172

 
53

 
118

 
118

 
—

 
1

 
—

 
—

Natural gas, coal and power contracts
24

 
—

 
—

 
—

 
—

 
—

 
24

 
—

Renewable operating and development projects
89

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other
2

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total gross carrying amounts
305

 
53

 
123

 
120

 
3

 
1

 
36

 
—

Accumulated amortization – natural gas, coal and power contracts
(21
)
 
—

 
—

 
—

 
—

 
—

 
(21
)
 
—

Accumulated amortization – renewable operating and development projects
(34
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Accumulated amortization – other
(1
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Total accumulated amortization
(56
)
 
—

 
—

 
—

 
—

 
—

 
(21
)
 
—

Total intangible assets, net
$
249


$
53


$
123


$
120


$
3


$
1


$
15

 
$
—

 
December 31, 2018
 
 
 
 
 
Duke

 
 
 
Duke

 
Duke

 
Duke

 
Duke

 
 
 
Duke

 
Energy

 
Progress

 
Energy

 
Energy

 
Energy

 
Energy

 
 
(in millions)
Energy

 
Carolinas

 
Energy

 
Progress

 
Florida

 
Ohio

 
Indiana

 
Piedmont

Emission allowances
$
18

 
$
—

 
$
5

 
$
2

 
$
3

 
$
—

 
$
12

 
$
—

Renewable energy certificates
168

 
46

 
120

 
120

 
—

 
2

 
—

 
—

Natural gas, coal and power contracts
24

 
—

 
—

 
—

 
—

 
—

 
24

 
—

Renewable operating and development projects
84

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other
6

 
—

 
—

 
—

 
—

 
—

 
—

 
3

Total gross carrying amounts
300

 
46

 
125

 
122

 
3

 
2

 
36

 
3

Accumulated amortization – natural gas, coal and power contracts
(20
)
 
—

 
—

 
—

 
—

 
—

 
(20
)
 
—

Accumulated amortization – renewable operating and development projects
(29
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Accumulated amortization – other
(5
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(3
)
Total accumulated amortization
(54
)
 
—

 
—

 
—

 
—

 
—

 
(20
)
 
(3
)
Total intangible assets, net
$
246


$
46


$
125


$
122


$
3


$
2


$
16

 
$
—


See Note 11 for information related to 2017 impairment charge.
Amortization Expense
Amortization expense amounts for natural gas, coal and power contracts, renewable operating projects and other intangible assets are immaterial for the years ended December 31, 2019, 2018 and 2017, and are expected to be immaterial for the next five years as of December 31, 2019.