Business Segments

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

Duke Energy evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests. Segment income, as discussed below, includes intercompany revenues and expenses that are eliminated in the Consolidated Financial Statements. Certain governance costs are allocated to each segment. In addition, direct interest expense and income taxes are included in segment income.

Operating segments are determined based on information used by the chief operating decision maker in deciding how to allocate resources and evaluate the performance.

Products and services are sold between affiliate companies and reportable segments of Duke Energy at cost. Segment assets as presented in the tables that follow exclude all intercompany assets.

Duke Energy

Duke Energy has the following reportable operating segments: Regulated Utilities, International Energy and Commercial Portfolio.

Regulated Utilities conducts electric and natural gas operations that are substantially all regulated and, accordingly, qualify for regulatory accounting treatment. These operations are primarily conducted through the Subsidiary Registrants and are subject to the rules and regulations of the FERC, NRC, NCUC, PSCSC, FPSC, PUCO, IURC and KPSC.

International Energy principally operates and manages power generation facilities and engages in sales and marketing of electric power, natural gas and natural gas liquids outside the U.S. Its activities principally target power generation in Latin America. Additionally, International Energy owns a 25 percent interest in NMC, a large regional producer of methyl tertiary butyl ether (MTBE) located in Saudi Arabia. The investment in NMC is accounted for under the equity method of accounting. On February 4, 2016, Duke Energy announced it had initiated a process to divest its International Energy business segment, excluding the investment in NMC. See Note 2 for further information.

Commercial Portfolio builds, develops and operates wind and solar renewable generation and energy transmission projects throughout the U.S. The segment was renamed as a result of the sale of the Disposal Group, as discussed in Note 2. For periods subsequent to the sale, beginning in the second quarter of 2015, certain immaterial results of operations and related assets previously presented in the Commercial Portfolio segment are presented in Regulated Utilities and Other.

The remainder of Duke Energy’s operations is presented as Other, which is primarily comprised of unallocated corporate interest expense, unallocated corporate costs, contributions to the Duke Energy Foundation and the operations of Duke Energy’s wholly owned captive insurance subsidiary, Bison Insurance Company Limited (Bison).On December 31, 2013, Duke Energy sold its interest in DukeNet Communications Holdings, LLC (DukeNet) to Time Warner Cable, Inc.

	Year Ended December 31, 2015
									Total
	Regulated			International		Commercial			Reportable
(in millions)	Utilities			Energy		Portfolio			Segments		Other			Eliminations			Total
Unaffiliated Revenues	$	22,024		$	1,088	$	301		$	23,413	$	46		$	—		$	23,459
Intersegment Revenues	38			—		—			38		77			(115		)	—
Total Revenues	$	22,062		$	1,088	$	301		$	23,451	$	123		$	(115	)	$	23,459
Interest Expense	$	1,097		$	85	$	44		$	1,226	$	393		$	(6	)	$	1,613
Depreciation and amortization	2,814			92		104			3,010		134			—			3,144
Equity in earnings of unconsolidated affiliates	(4		)	74		(3		)	67		2			—			69
Income tax expense (benefit)	1,647			74		(92		)	1,629		(303		)	—			1,326
Segment income (loss)(a)(b)(c)(d)	2,893			225		4			3,122		(322		)	(4		)	2,796
Add back noncontrolling interest component																	15
Income from discontinued operations, net of tax(e)																	20
Net income																	$	2,831
Capital investments expenditures and acquisitions	$	6,974		$	45	$	1,131		$	8,150	$	213		$	—		$	8,363
Segment Assets	111,562			3,271		4,010			118,843		2,125			188			121,156

(a) Regulated Utilities includes an after-tax charge of $58 million related to the Edwardsport settlement. Refer to Note 4 for further information.

(b) Commercial Portfolio includes state tax expense of $41 million, resulting from changes to state apportionment factors due to the sale of the Disposal Group, that does not qualify for discontinued operations. Refer to Note 2 for further information related to the sale.

(c)    Other includes $60 million of after-tax costs to achieve mergers.

(d) Other includes an after-tax charge of $77 million related to cost savings initiatives. Refer to Note 19 for further information related to the cost savings initiatives.

(e) Includes after-tax impact of $53 million for the settlement agreement reached in a lawsuit related to the Disposal Group. Refer to Note 5 for further information related to the lawsuit.

	Year Ended December 31, 2014
									Total
	Regulated			International		Commercial			Reportable
(in millions)	Utilities			Energy		Portfolio			Segments		Other			Eliminations			Total
Unaffiliated Revenues	$	22,228		$	1,417	$	255		$	23,900	$	25		$	—		$	23,925
Intersegment Revenues	43			—		—			43		80			(123		)	—
Total Revenues	$	22,271		$	1,417	$	255		$	23,943	$	105		$	(123	)	$	23,925
Interest Expense	$	1,093		$	93	$	58		$	1,244	$	400		$	(22	)	$	1,622
Depreciation and amortization	2,759			97		92			2,948		118			—			3,066
Equity in earnings of unconsolidated affiliates	(3		)	120		10			127		3			—			130
Income tax expense (benefit)(a)	1,628			449		(171		)	1,906		(237		)	—			1,669
Segment income (loss)(b)(c)(d)	2,795			55		(55		)	2,795		(334		)	(10		)	2,451
Add back noncontrolling interest component																	14
Loss from discontinued operations, net of tax																	(576		)
Net income																	$	1,889
Capital investments expenditures and acquisitions	$	4,744		$	67	$	555		$	5,366	$	162		$	—		$	5,528
Segment Assets	106,574			5,093		6,278			117,945		2,423			189			120,557

(a) International Energy includes a tax adjustment of $373 million related to deferred tax impact resulting from the decision to repatriate all cumulative historical undistributed foreign earnings. See Note 22 for additional information.

(b) Commercial Portfolio recorded a $94 million pretax impairment charge related to OVEC.

(c) Other includes costs to achieve mergers.

(d) Regulated Utilities includes an increase in the litigation reserve related to the criminal investigation of the Dan River coal ash spill. See Note 5 for additional information.

	Year Ended December 31, 2013
									Total
	Regulated			International		Commercial			Reportable
(in millions)	Utilities			Energy		Portfolio			Segments		Other			Eliminations			Total
Unaffiliated Revenues(a)(b)(c)	$	20,871		$	1,546	$	254		$	22,671	$	85		$	—		$	22,756
Intersegment Revenues	39			—		6			45		90			(135		)	—
Total Revenues	$	20,910		$	1,546	$	260		$	22,716	$	175		$	(135	)	$	22,756
Interest Expense	$	986		$	86	$	61		$	1,133	$	416		$	(6	)	$	1,543
Depreciation and amortization	2,323			100		110			2,533		135			—			2,668
Equity in earnings of unconsolidated affiliates	(1		)	110		7			116		6			—			122
Income tax expense (benefit)	1,522			166		(148		)	1,540		(335		)	—			1,205
Segment income (loss) (a)(b)(c)(d)(e)(f)(g)	2,504			408		(88		)	2,824		(238		)	(12		)	2,574
Add back noncontrolling interest component																	16
Income from discontinued operations, net of tax																	86
Net income																	$	2,676
Capital investments expenditures and acquisitions	$	5,049		$	67	$	268		$	5,384	$	223		$	—		$	5,607
Segment Assets	99,884			4,998		6,955			111,837		2,754			188			114,779

(a) In May 2013, the PUCO approved a Duke Energy Ohio settlement agreement that provides for a net annual increase in electric distribution revenues beginning in May 2013. This rate increase impacts Regulated Utilities.

(b) In June 2013, NCUC approved a Duke Energy Progress settlement agreement that included an increase in rates in the first year beginning in June 2013. This rate increase impacts Regulated Utilities.

(c) In September 2013, Duke Energy Carolinas implemented revised customer rates approved by the NCUC and the PSCSC. These rate increases impact Regulated Utilities.

(d) Regulated Utilities recorded an impairment charge related to Duke Energy Florida's Crystal River Unit 3. See Note 4 for additional information.

(e) Regulated Utilities recorded an impairment charge related to the letter Duke Energy Progress filed with the NRC requesting the NRC to suspend its review activities associated with the combined construction and operating license (COL) at the Harris site. Regulated Utilities also recorded an impairment charge related to the write-off of the wholesale portion of the Levy investments at Duke Energy Florida in accordance with the 2013 Settlement. See Note 4 for additional information.

(f) Other includes costs to achieve mergers.

(g) Other includes gain from the sale of Duke Energy's ownership interest in DukeNet. See Note 12 for additional information on the sale of DukeNet.

Geographical Information

(in millions)	U.S.		Latin America(a)		Consolidated
2015
Consolidated revenues	$	22,371	$	1,088	$	23,459
Consolidated long-lived assets	87,552		2,012		89,564
2014
Consolidated revenues	$	22,508	$	1,417	$	23,925
Consolidated long-lived assets	80,709		2,458		83,167
2013
Consolidated revenues	$	21,211	$	1,545	$	22,756
Consolidated long-lived assets	78,581		2,781		81,362

(a) Change in amounts of long-lived assets in Latin America includes foreign currency translation adjustments on property, plant and equipment and other long-lived asset balances.

Products and Services

The following table summarizes revenues of the reportable segments by type.

	Retail		Wholesale		Retail		Wholesale				Total
(in millions)	Electric		Electric		Natural Gas		Natural Gas		Other		Revenues
2015
Regulated Utilities	$	18,695	$	2,014	$	546	$	—	$	807	$	22,062
International Energy	—		1,025		—		63		—		1,088
Commercial Portfolio	—		260		—		—		41		301
Total Reportable Segments	$	18,695	$	3,299	$	546	$	63	$	848	$	23,451
2014
Regulated Utilities	$	19,007	$	1,879	$	571	$	—	$	814	$	22,271
International Energy	—		1,326		—		91		—		1,417
Commercial Portfolio	—		255		—		—		—		255
Total Reportable Segments	$	19,007	$	3,460	$	571	$	91	$	814	$	23,943
2013
Regulated Utilities	$	17,837	$	1,720	$	506	$	—	$	847	$	20,910
International Energy	—		1,447		—		99		—		1,546
Commercial Portfolio	—		260		—		—		—		260
Total Reportable Segments	$	17,837	$	3,427	$	506	$	99	$	847	$	22,716

Duke Energy Ohio

Duke Energy Ohio had two reportable operating segments, Regulated Utilities and Commercial Portfolio, prior to the sale of the nonregulated Midwest generation business. As a result of the sale discussed in Note 2, Commercial Portfolio no longer qualifies as a Duke Energy Ohio reportable operating segment. Therefore, for periods subsequent to the sale, beginning in the second quarter of 2015, all of the remaining assets and related results of operations previously presented in Commercial Portfolio are presented in Regulated Utilities and Other.

Regulated Utilities transmits and distributes electricity in portions of Ohio and generates, distributes and sells electricity in portions of Kentucky. Regulated Utilities also transports and sells natural gas in portions of Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Ohio and its wholly owned subsidiary, Duke Energy Kentucky.

Other is primarily comprised of governance costs allocated by its parent, Duke Energy, and revenues and expenses related to Duke Energy Ohio's contractual arrangement to buy power from OVEC's power plants. For additional information on related party transactions refer to Note 9. See Note 13 for additional information. All of Duke Energy Ohio’s revenues are generated domestically and its long-lived assets are all in the U.S.

	Year Ended December 31, 2015
						Total
	Regulated		Commercial			Reportable
(in millions)	Utilities		Portfolio			Segments		Other			Eliminations			Total
Unaffiliated revenues	$	1,872	$	14		$	1,886	$	19		$	—		$	1,905
Intersegment revenues	1		—			1		—			(1		)	—
Total revenues	$	1,873	$	14		$	1,887	$	19		$	(1	)	$	1,905
Interest expense	$	78	$	—		$	78	$	1		$	—		$	79
Depreciation and amortization	226		—			226		1			—			227
Income tax expense (benefit)	105		(5		)	100		(19		)	—			81
Segment income (loss)	191		(8		)	183		(33		)	(1		)	149
Income from discontinued operations, net of tax														23
Net income														$	172
Capital expenditures	$	399	$	—		$	399	$	—		$	—		$	399
Segment assets	7,050		—			7,050		55			(8		)	7,097

	Year Ended December 31, 2014
						Total
	Regulated		Commercial			Reportable
(in millions)	Utilities		Portfolio			Segments		Other			Eliminations			Total
Unaffiliated revenues	$	1,894	$	19		$	1,913	$	—		$	—		$	1,913
Intersegment revenues	1		—			1		—			(1		)	—
Total revenues	$	1,895	$	19		$	1,914	$	—		$	(1	)	$	1,913
Interest expense	$	81	$	5		$	86	$	—		$	—		$	86
Depreciation and amortization	211		2			213		1			—			214
Income tax expense (benefit)	117		(67		)	50		(7		)	—			43
Segment income (loss)(a)	202		(121		)	81		(13		)	—			68
Income from discontinued operations, net of tax														(563		)
Net loss														$	(495	)
Capital expenditures	$	300	$	22		$	322	$	—		$	—		$	322
Segment assets	6,902		3,187			10,089		134			(230		)	9,993

(a) Commercial Portfolio recorded a $94 million pretax impairment charge related to OVEC.

	Year Ended December 31, 2013
						Total
	Regulated		Commercial			Reportable
(in millions)	Utilities		Portfolio			Segments		Other			Eliminations			Total
Total revenues	$	1,765	$	40		$	1,805	$	—		$	—		$	1,805
Interest expense	$	74	$	—		$	74	$	—		$	—		$	74
Depreciation and amortization	200		13			213		—			—			213
Income tax expense (benefit)	91		(36		)	55		(12		)	—			43
Segment income (loss)	151		(65		)	86		(19		)	—			67
Income from discontinued operations, net of tax														35
Net income														$	102
Capital expenditures	$	375	$	58		$	433	$	—		$	—		$	433
Segment assets	6,649		4,170			10,819		99			(155		)	10,763

DUKE ENERGY CAROLINAS, PROGRESS ENERGY, DUKE ENERGY PROGRESS, DUKE ENERGY FLORIDA AND DUKE ENERGY INDIANA

The remaining Subsidiary Registrants each have one reportable operating segment, Regulated Utilities, which generates, transmits, distributes and sells electricity. The remainder of each company’s operations is classified as Other. While not considered a reportable segment for any of these companies, Other consists of certain unallocated corporate costs. Other for Progress Energy also includes interest expense on corporate debt instruments of $240 million, $241 million and $300 million for the years ended December 31, 2015, 2014 and 2013. The following table summarizes the net loss for Other for each of these entities.

	Years Ended December 31,
(in millions)	2015			2014			2013
Duke Energy Carolinas	$	(95	)	$	(79	)	$	(97	)
Progress Energy	(159		)	(190		)	(241		)
Duke Energy Progress	(32		)	(31		)	(46		)
Duke Energy Florida	(16		)	(19		)	(24		)
Duke Energy Indiana	(10		)	(11		)	(16		)

Duke Energy Progress earned approximately 10 percent of its consolidated operating revenues from North Carolina Electric Membership Corporation (NCEMC) in 2015. These revenues relate to wholesale contracts and transmission revenues. The assets Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana are substantially all included within the Regulated Utilities segment at December 31, 2015, 2014 and 2013.3