Acquisitions and Dispositions (Tables)

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired

The preliminary purchase price allocation of the Piedmont acquisition is estimated as follows:

(in millions)
Current assets	$	497
Property, plant and equipment, net	4,714
Goodwill	3,353
Other long-term assets	804
Total assets	9,368
Current liabilities, including current maturities of long-term debt	576
Long-term liabilities	1,790
Long-term debt	2,002
Total liabilities	4,368
Total purchase price	$	5,000

The assets acquired are presented in the following table.

(in millions)
Inventory	$	56
Net property, plant and equipment	845
Total assets	901
Acquisition adjustment, recorded within property, plant and equipment	350
Total purchase price	$	1,251

Business Acquisition, Pro Forma Information

This information has been presented for illustrative purposes only and is not necessarily indicative of the consolidated results of operations that would have been achieved or the future consolidated results of operations of Duke Energy.

	Years Ended December 31,
(in millions)	2016		2015
Operating Revenues	$	23,504	$	23,570
Net Income Attributable to Duke Energy Corporation	2,442		2,877

Disposal Groups, Including Discontinued Operations

The following table presents the results of the International Disposal Group which are included in (Loss) Income from Discontinued Operations, net of tax in Duke Energy's Consolidated Statements of Operations.

	Years Ended December 31,
(in millions)	2016			2015		2014
Operating Revenues	$	988		$	1,088	$	1,417
Fuel used in electric generation and purchased power	227			306		486
Cost of natural gas	43			53		63
Operation, maintenance and other	341			334		352
Depreciation and amortization(a)	62			92		97
Property and other taxes	15			7		9
Impairment charges (b)	194			13		—
(Loss) Gains on Sales of Other Assets and Other, net	(3		)	6		6
Other Income and Expenses, net	58			23		47
Interest Expense	82			85		93
Pretax loss on disposal(c)	(514		)	—		—
(Loss) Income before income taxes(d)	(435		)	227		370
Income tax expense(e)(f)	99			70		443
(Loss) Income from discontinued operations of the International Disposal Group	$	(534	)	$	157	$	(73	)

(a) Upon meeting the criteria for assets held for sale, beginning in the fourth quarter of 2016 depreciation expense was ceased.

(b) In conjunction with the advancements of marketing efforts during 2016, Duke Energy performed recoverability tests of the long-lived asset groups of International Energy. As a result, Duke Energy determined the carrying value of certain assets in Central America was not fully recoverable and recorded a pretax impairment charge of $194 million. The charge represents the excess of carrying value over the estimated fair value of the assets, which was based on a Level 3 Fair Value measurement that was primarily determined from the income approach using discounted cash flows but also considered market information obtained in 2016.

(c) The pretax loss on disposal includes the recognition of cumulative foreign currency translation losses of $620 million as of the disposal date. See the Consolidated Statements of Changes in Equity for additional information.

(d) Pretax (Loss) Income attributable to Duke Energy Corporation was $(445) million, $221 million and $360 million for the years ended December 31, 2016, 2015 and 2014, respectively.

(e) 2016 amount includes $126 million of income tax expense on the disposal, which primarily reflects in-country taxes incurred as a result of the sale. The after-tax loss on disposal was $640 million.

(f) 2016 amount includes an income tax benefit of $95 million and 2014 amount includes an income tax charge of $373 million related to historical undistributed foreign earnings. See Note 22, "Income Taxes," for additional information.

The following table summarizes the (Loss) Income from Discontinued Operations, net of tax recorded on Duke Energy's Consolidated Statements of Operations:

	Years Ended December 31,
(in millions)	2016			2015			2014
International Energy Disposal Group	$	(534	)	$	157		$	(73	)
Midwest Generation Disposal Group	36			33			(524		)
Other(a)	90			(13		)	(52		)
(Loss) Income from Discontinued Operations, net of tax	$	(408	)	$	177		$	(649	)

(a) Relates to previously sold businesses not related to the Disposal Groups. The amount for 2016 represents an income tax benefit resulting from immaterial out of period deferred tax liability adjustments. The amounts for 2015 and 2014 include indemnifications provided for certain legal, tax and environmental matters and foreign currency translation adjustments.

The following table summarizes the Midwest Generation Disposal Group activity recorded within discontinued operations.

	Duke Energy									Duke Energy Ohio
	Years Ended December 31,									Years Ended December 31,
(in millions)	2016			2015			2014			2016			2015			2014
Operating Revenues	$	—		$	543		$	1,748		$	—		$	412		$	1,299
Pretax Loss on disposal(a)	—			(45		)	(929		)	—			(52		)	(959		)
Income (loss) before income taxes(b)	$	—		$	59		$	(818	)	$	—		$	44		$	(863	)
Income tax (benefit) expense(c)	(36		)	26			(294		)	(36		)	21			(300		)
Income (loss) from discontinued operations	$	36		$	33		$	(524	)	$	36		$	23		$	(563	)

(a) The Loss on disposal includes impairments recorded to adjust the carrying amount of the assets to the estimated fair value of the business, based on the selling price to Dynegy less cost to sell.

(b) 2015 amounts include the impact of an $81 million charge for the settlement agreement reached in a lawsuit related to the Midwest Generation Disposal Group. Refer to Note 5 for further information about the lawsuit.

(c) 2016 amounts result from immaterial out of period deferred tax liability adjustments.

Disclosure of Long Lived Assets Held-for-sale

The following table presents the carrying values of the major classes of Assets held for sale and Liabilities associated with assets held for sale included in the Consolidated Balance Sheets. As a result of Duke Energy closing both transactions in December 2016, there are no Assets held for sale or Liabilities associated with assets held for sale as of December 31, 2016.

(in millions)	December 31, 2015
Current assets held for sale
Cash and cash equivalents	$	474
Receivables, net	188
Inventory	65
Other	19
Total current assets held for sale	746
Noncurrent assets held for sale
Property, Plant and Equipment
Cost	2,859
Accumulated depreciation and amortization	(930		)
Net property, plant and equipment	1,929
Goodwill	271
Other	213
Total noncurrent assets held for sale	2,413
Total assets held for sale	$	3,159
Current liabilities associated with assets held for sale
Accounts payable	$	51
Taxes accrued	60
Current maturities of long-term debt	48
Other	120
Total current liabilities associated with assets held for sale	279
Noncurrent liabilities associated with assets held for sale
Long-Term Debt	653
Deferred income taxes	157
Other	90
Total noncurrent liabilities associated with assets held for sale	900
Total liabilities associated with assets held for sale	$	1,179

The value of goodwill increased by $7 million from December 31, 2015 through the date of sale as a result of changes in foreign currency exchanges rates. At the time of the disposition, the International Disposal Group included goodwill of $278 million.

Schedule of Cash Flow, Supplemental Disclosures

The following table summarizes Duke Energy's cash flows from discontinued operations related to the International Disposal Group.

	Years Ended December 31,
(in millions)	2016			2015		2014
Cash flows provided by (used in):
Operating activities	$	204		$	248	$	339
Investing activities	(434		)	177		111