Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Balance Sheet Amounts Recorded for Operating and Finance Leases

Adoption of the new standard resulted in the recording of ROU assets and operating lease liabilities as follows:

	As of January 1, 2019
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
ROU assets	$	1,750	$	153	$	863	$	407	$	456	$	23	$	61	$	26
Operating lease liabilities – current	205		28		96		35		61		1		4		4
Operating lease liabilities – noncurrent	1,504		127		766		371		395		22		58		25

The following tables contain additional information related to leases.

		June 30, 2019
				Duke				Duke		Duke		Duke		Duke
		Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Classification	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Assets
Operating	Operating lease ROU assets, net	$	1,735	$	141	$	839	$	407	$	432	$	22	$	60	$	26
Finance	Net property, plant and equipment	1,013		122		423		309		114		—		10		—
Total lease assets		$	2,748	$	263	$	1,262	$	716	$	546	$	22	$	70	$	26
Liabilities
Current
Operating	Other current liabilities	$	213	$	27	$	100	$	36	$	64	$	1	$	4	$	4
Finance	Current maturities of long-term debt	115		6		23		6		17		—		—		—
Noncurrent
Operating	Operating lease liabilities	1,502		117		747		377		370		21		56		25
Finance	Long-Term Debt	907		101		394		304		90		—		10		—
Total lease liabilities		$	2,737	$	251	$	1,264	$	723	$	541	$	22	$	70	$	29

Lease Costs and Cash Flows Information

The following table presents the components of lease expense.

	Three Months Ended June 30, 2019
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Operating lease expense(a)	$	73	$	11	$	40	$	17	$	23	$	3	$	5	$	2
Short-term lease expense(a)	6		2		4		2		2		1		—		—
Variable lease expense(a)	10		4		5		2		3		—		—		—
Finance lease expense
Amortization of leased assets(b)	29		1		5		1		4		1		—		—
Interest on lease liabilities(c)	20		3		13		10		3		—		1		—
Total finance lease expense	49		4		18		11		7		1		1		—
Total lease expense	$	138	$	21	$	67	$	32	$	35	$	5	$	6	$	2

	Six Months Ended June 30, 2019
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Operating lease expense(a)	$	145	$	23	$	82	$	36	$	46	$	6	$	10	$	3
Short-term lease expense(a)	13		4		7		3		4		1		1		—
Variable lease expense(a)	21		12		7		3		4		—		—		—
Finance lease expense
Amortization of leased assets(b)	56		2		8		2		6		1		—		—
Interest on lease liabilities(c)	37		7		19		14		5		—		1		—
Total finance lease expense	93		9		27		16		11		1		1		—
Total lease expense	$	272	$	48	$	123	$	58	$	65	$	8	$	12	$	3

(a) Included in Operations, maintenance and other or, for barges and railcars, Fuel used in electric generation and purchased power on the Condensed Consolidated Statements of Operations.

(b) Included in Depreciation and amortization on the Condensed Consolidated Statements of Operations.

(c)

Included in Interest Expense on the Condensed Consolidated Statements of Operations.

	Six Months Ended June 30, 2019
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Cash paid for amounts included in the measurement of lease liabilities(a)
Operating cash flows from operating leases	$	136	$	15	$	60	$	23	$	37	$	1	$	3	$	5
Operating cash flows from finance leases	37		7		19		14		5		—		1		—
Financing cash flows from finance leases	56		2		8		2		6		1		—		—
Lease assets obtained in exchange for new lease liabilities (non-cash)
Operating(b)	$	78	$	2	$	30	$	30	$	—	$	—	$	—	$	1
Finance	175		—		175		175		—		—		—		—

(a) No amounts were classified as investing cash flows from operating leases for the six months ended June 30, 2019.

(b)

Does not include ROU assets recorded as a result of the adoption of the new lease standard.

Schedule of Rent Expense

The following table presents rental expense for operating leases, as reported under the old lease standard. These amounts are included in Operation, maintenance and other and Fuel used in electric generation and purchased power on the Condensed Consolidated Statements of Operations.

(in millions)	Year Ended December 31, 2018
Duke Energy	$	268
Duke Energy Carolinas	49
Progress Energy	143
Duke Energy Progress	75
Duke Energy Florida	68
Duke Energy Ohio	13
Duke Energy Indiana	21
Piedmont	11

Lessee, Operating Lease, Liability, Maturity

The following table presents operating lease maturities and a reconciliation of the undiscounted cash flows to operating lease liabilities.

	Twelve Months Ended June 30,
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
2020	$	279		$	33		$	129		$	51		$	78		$	2		$	6		$	5
2021	239			28			112			52			60			2			5			5
2022	199			19			94			40			54			2			4			5
2023	190			18			95			40			55			2			4			5
2024	178			15			96			41			55			2			4			5
Thereafter	1,055			61			513			306			207			22			65			7
Total operating lease payments	2,140			174			1,039			530			509			32			88			32
Less: present value discount	(425		)	(30		)	(192		)	(117		)	(75		)	(10		)	(28		)	(3		)
Total operating lease liabilities(a)	$	1,715		$	144		$	847		$	413		$	434		$	22		$	60		$	29

(a)

Certain operating lease payments include renewal options that are reasonably certain to be exercised.

Schedule of Future Minimum Rental Payments for Operating Leases

The following table presents future minimum lease payments under operating leases, which at inception had a non-cancelable term of more than one year, as reported under the old lease standard.

	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
2019	$	239	$	33	$	97	$	49	$	48	$	2	$	6	$	5
2020	219		29		90		46		44		2		5		5
2021	186		19		79		37		42		2		4		5
2022	170		19		76		34		42		2		4		5
2023	160		17		77		35		42		2		5		6
Thereafter	1,017		68		455		314		141		23		66		11
Total	$	1,991	$	185	$	874	$	515	$	359	$	33	$	90	$	37

Maturities of Finance Lease Liabilities

The following table presents finance lease maturities and a reconciliation of the undiscounted cash flows to finance lease liabilities.

	Twelve Months Ended June 30,
				Duke						Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Indiana
2020	$	177		$	19		$	69		$	44		$	25		$	1
2021	183			17			69			44			25			1
2022	180			14			69			44			25			1
2023	171			14			69			44			25			1
2024	172			14			64			44			20			1
Thereafter	847			191			560			547			13			28
Total finance lease payments	1,730			269			900			767			133			33
Less: amounts representing interest	(708		)	(162		)	(483		)	(457		)	(26		)	(23		)
Total finance lease liabilities	$	1,022		$	107		$	417		$	310		$	107		$	10

Schedule of Future Minimum Lease Payments for Capital Leases

The following table presents future minimum lease payments under finance leases, as reported under the old lease standard.

	December 31, 2018
				Duke						Duke			Duke			Duke		Duke
	Duke			Energy			Progress			Energy			Energy			Energy		Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio		Indiana
2019	$	170		$	20		$	45		$	20		$	25		$	2	$	1
2020	174			20			46			21			25			—		1
2021	177			15			45			20			25			—		1
2022	165			15			45			21			24			—		1
2023	165			15			45			21			24			—		1
Thereafter	577			204			230			209			21			—		27
Minimum annual payments	1,428			289			456			312			144			2		32
Less: amount representing interest	(487		)	(180		)	(205		)	(175		)	(30		)	—		(22		)
Total	$	941		$	109		$	251		$	137		$	114		$	2	$	10

Lessee, Lease, Supplemental Information

	June 30, 2019
			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Weighted-average remaining lease term (years)
Operating leases	11		9		10		12		9		18		19		6
Finance leases	16		19		17		18		12		—		27		—
Weighted-average discount rate(a)
Operating leases	3.9	%	3.7	%	3.8	%	3.8	%	3.7	%	4.2	%	4.1	%	3.6	%
Finance leases	7.9	%	12.9	%	11.8	%	12.4	%	8.3	%	—	%	11.9	%	—	%

(a)

The discount rate is calculated using the rate implicit in a lease if it is readily determinable. Generally, the rate used by the lessor is not provided to Duke Energy and in these cases the incremental borrowing rate is used. Duke Energy will typically use its fully collateralized incremental borrowing rate as of the commencement date to calculate and record the lease. The incremental borrowing rate is influenced by the lessee’s credit rating and lease term and as such may differ for individual leases, embedded leases or portfolios of leased assets.