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Business Segments
 6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Business Segments
BUSINESS SEGMENTS
Operating segments are determined based on information used by the chief operating decision-maker in deciding how to allocate resources and evaluate the performance of the business. 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 includes intercompany revenues and expenses that are eliminated on the Condensed Consolidated Financial Statements. Certain governance costs are allocated to each segment. In addition, direct interest expense and income taxes are included in segment income.
Duke Energy
Duke Energy's segment structure includes the following segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure and Commercial Renewables.
The Electric Utilities and Infrastructure segment includes Duke Energy's regulated electric utilities in the Carolinas, Florida and the Midwest. The regulated electric utilities conduct operations through the Subsidiary Registrants that are substantially all regulated and, accordingly, qualify for regulatory accounting treatment. Electric Utilities and Infrastructure also includes Duke Energy's electric transmission infrastructure investments.
The Gas Utilities and Infrastructure segment includes Piedmont, Duke Energy's natural gas local distribution companies in Ohio and Kentucky, and Duke Energy's natural gas storage and midstream pipeline investments. Gas Utilities and Infrastructure's operations are substantially all regulated and, accordingly, qualify for regulatory accounting treatment.
Commercial Renewables is primarily comprised of nonregulated utility scale wind and solar generation assets located throughout the U.S.
The remainder of Duke Energy’s operations is presented as Other, which is primarily comprised of interest expense on holding company debt, unallocated corporate costs and Duke Energy’s wholly owned captive insurance company, Bison Insurance Company Limited (Bison). Other also includes Duke Energy's 17.5 percent interest in National Methanol Company (NMC), a large regional producer of methyl tertiary butyl ether located in Saudi Arabia. The investment in NMC is accounted for under the equity method of accounting.
Business segment information is presented in the following tables. Segment assets presented exclude intercompany assets.
 
Three Months Ended June 30, 2018
 
Electric

 
Gas

 
 
 
Total

 
 
 
 
 
 
 
Utilities and

 
Utilities and

 
Commercial

 
Reportable

 
 
 
 
 
 
(in millions)
Infrastructure

 
Infrastructure

 
Renewables

 
Segments

 
Other

 
Eliminations

 
Consolidated

Unaffiliated revenues
$
5,215

 
$
294

 
$
119

 
$
5,628

 
$
15

 
$
—

 
$
5,643

Intersegment revenues
8

 
24

 
—

 
32

 
17

 
(49
)
 
—

Total revenues
$
5,223

 
$
318

 
$
119

 
$
5,660

 
$
32

 
$
(49
)
 
$
5,643

Segment income (loss)(a)(b)
$
575

 
$
28

 
$
38

 
$
641

 
$
(136
)
 
$
—

 
$
505

Add back noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
2

Loss from discontinued operations, net of tax
 
 
 
 
 
 
 
 
 
 
 
 
(5
)
Net income
 
 
 
 
 
 
 
 
 
 
 
 
$
502

Segment assets
$
121,947

 
$
11,437

 
$
4,233

 
$
137,617

 
$
2,461

 
$
181

 
$
140,259


 
Three Months Ended June 30, 2017
 
Electric

 
Gas

 
 
 
Total

 
 
 
 
 
 
 
Utilities and

 
Utilities and

 
Commercial

 
Reportable

 
 
 
 
 
 
(in millions)
Infrastructure

 
Infrastructure

 
Renewables

 
Segments

 
Other

 
Eliminations

 
Consolidated

Unaffiliated revenues
$
5,150

 
$
279

 
$
110

 
$
5,539

 
$
16

 
$
—

 
$
5,555

Intersegment revenues
8

 
22

 
—

 
30

 
19

 
(49
)
 
—

Total revenues
$
5,158

 
$
301

 
$
110

 
$
5,569

 
$
35

 
$
(49
)
 
$
5,555

Segment income (loss)(b)
$
729

 
$
27

 
$
26

 
$
782

 
$
(94
)
 
$
—

 
$
688

Add back noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
3

Loss from discontinued operations, net of tax
 
 
 
 
 
 
 
 
 
 
 
 
(2
)
Net income
 
 
 
 
 
 
 
 
 
 
 
 
$
689

 
Six Months Ended June 30, 2018
 
Electric

 
Gas

 
 
 
Total

 
 
 
 
 
 
 
Utilities and

 
Utilities and

 
Commercial

 
Reportable

 
 
 
 
 
 
(in millions)
Infrastructure

 
Infrastructure

 
Renewables

 
Segments

 
Other

 
Eliminations

 
Consolidated

Unaffiliated revenues
$
10,530

 
$
997

 
$
220

 
$
11,747

 
$
31

 
$
—

 
$
11,778

Intersegment revenues
16

 
48

 
—

 
64

 
36

 
(100
)
 
—

Total revenues
$
10,546

 
$
1,045

 
$
220

 
$
11,811

 
$
67

 
$
(100
)
 
$
11,778

Segment income (loss)(a)(b)(c)(d)
$
1,325

 
$
144

 
$
58

 
$
1,527

 
$
(402
)
 
$
—

 
$
1,125

Add back noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
4

Loss from discontinued operations, net of tax
 
 
 
 
 
 
 
 
 
 
 
 
(5
)
Net income
 
 
 
 
 
 
 
 
 
 
 
 
$
1,124

 
Six Months Ended June 30, 2017
 
Electric

 
Gas

 
 
 
Total

 
 
 
 
 
 
 
Utilities and

 
Utilities and

 
Commercial

 
Reportable

 
 
 
 
 
 
(in millions)
Infrastructure

 
Infrastructure

 
Renewables

 
Segments

 
Other

 
Eliminations

 
Consolidated

Unaffiliated revenues
$
10,090

 
$
927

 
$
238

 
$
11,255

 
$
29

 
$
—

 
$
11,284

Intersegment revenues
15

 
44

 
—

 
59

 
39

 
(98
)
 
—

Total revenues
$
10,105

 
$
971

 
$
238

 
$
11,314

 
$
68

 
$
(98
)
 
$
11,284

Segment income (loss)(b)
$
1,364

 
$
160

 
$
51

 
$
1,575

 
$
(171
)
 
$
—

 
$
1,404

Add back noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
4

Loss from discontinued operations, net of tax
 
 
 
 
 
 
 
 
 
 
 
 
(2
)
Net income
 
 
 
 
 
 
 
 
 
 
 
 
$
1,406


(a)
Electric Utilities and Infrastructure includes regulatory and legislative impairment charges related to rate case orders, settlements or other actions of regulators or legislative bodies. See Note 3 for additional information.
(b)
Other includes costs to achieve the Piedmont acquisition.
(c)
Gas Utilities and Infrastructure includes an impairment of the investment in Constitution Pipeline Company, LLC (Constitution). See Note 3 for additional information.
(d)
Other includes the loss on the sale of the retired Beckjord Generating Station (Beckjord) described below and a valuation allowance recorded against the alternative minimum tax credits subject to sequestration. See Note 17 for additional information on the valuation allowance.
In February 2018, Duke Energy sold Beckjord, a nonregulated facility retired during 2014, and recorded a pretax loss of $106 million within Gains (Losses) on Sales of Other Assets and Other, net and $1 million within Operation, maintenance and other on Duke Energy's Condensed Consolidated Statements of Operations for the six months ended June 30, 2018. The sale included the transfer of coal ash basins and other real property and indemnification from any and all potential future claims related to the property, whether arising under environmental laws or otherwise.
Duke Energy Ohio
Duke Energy Ohio has two reportable operating segments, Electric Utilities and Infrastructure and Gas Utilities and Infrastructure.
Electric Utilities and Infrastructure transmits and distributes electricity in portions of Ohio and generates, distributes and sells electricity in portions of Northern Kentucky. Gas Utilities and Infrastructure transports and sells natural gas in portions of Ohio and Northern Kentucky. Both reportable operating segments conduct operations primarily through Duke Energy Ohio and its wholly owned subsidiary, Duke Energy Kentucky.
The remainder of Duke Energy Ohio's operations is presented as Other, which 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 the Ohio Valley Electric Corporation's (OVEC) power plants. See Note 8 for additional information on related party transactions.
 
Three Months Ended June 30, 2018
 
Electric

 
Gas

 
Total

 
 
 
 
 
 
 
Utilities and

 
Utilities and

 
Reportable

 
 
 
 
 
 
(in millions)
Infrastructure

 
Infrastructure

 
Segments

 
Other

 
Eliminations

 
Consolidated

Total revenues
$
346

 
$
103

 
$
449

 
$
10

 
$
—

 
$
459

Segment income (loss)/Net income
39

 
18

 
57

 
(11
)
 
—

 
46

Segment assets
$
5,336

 
$
2,727

 
$
8,063

 
$
40

 
$
(2
)
 
$
8,101

 
Three Months Ended June 30, 2017
 
Electric

 
Gas

 
Total

 
 
 
 
 
Utilities and

 
Utilities and

 
Reportable

 
 
 
 
(in millions)
Infrastructure

 
Infrastructure

 
Segments

 
Other

 
Consolidated

Total revenues
$
329

 
$
100

 
$
429

 
$
8

 
$
437

Segment income (loss)/Net income
22

 
17

 
39

 
(9
)
 
30


 
Six Months Ended June 30, 2018
 
Electric

 
Gas

 
Total

 
 
 
 
 
Utilities and

 
Utilities and

 
Reportable

 
 
 
 
(in millions)
Infrastructure

 
Infrastructure

 
Segments

 
Other

 
Consolidated

Total revenues
$
682

 
$
277

 
$
959

 
$
24

 
$
983

Segment income (loss)/Net income(a)
72

 
52

 
124

 
(103
)
 
21


 
Six Months Ended June 30, 2017
 
Electric

 
Gas

 
Total

 
 
 
 
 
Utilities and

 
Utilities and

 
Reportable

 
 
 
 
(in millions)
Infrastructure

 
Infrastructure

 
Segments

 
Other

 
Consolidated

Total revenues
$
665

 
$
270

 
$
935

 
$
20

 
$
955

Segment income (loss)/Net income
46

 
42

 
88

 
(16
)
 
72

(a)    Other includes the loss on the sale of Beckjord.