Duke Energy’s investments in debt and equity securities are primarily comprised of investments held in (i) the NDTF at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, (ii) the grantor trusts at Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana related to OPEB plans and (iii) Bison. The Duke Energy Registrants classify investments in debt securities as AFS and investments in equity securities as fair value through net income (FV-NI).

For investments in debt securities classified as AFS, the unrealized gains and losses are included in other comprehensive income until realized, at which time they are reported through net income. For investments in equity securities classified as FV-NI, both realized and unrealized gains and losses are reported through net income. Substantially all of Duke Energy’s investments in debt and equity securities qualify for regulatory accounting, and accordingly, all associated realized and unrealized gains and losses on these investments are deferred as a regulatory asset or liability.

The investments within the Investment Trusts are managed by independent investment managers with discretion to buy, sell and invest pursuant to the objectives set forth by the investment manager agreements and trust agreements. The Duke Energy Registrants have limited oversight of the day-to-day management of these investments. As a result, the ability to hold investments in unrealized loss positions is outside the control of the Duke Energy Registrants. Accordingly, all unrealized losses associated with debt securities within the Investment Trusts are recognized immediately and deferred to regulatory accounts where appropriate.

Unrealized gains and losses on all other AFS securities are included in other comprehensive income until realized, unless it is determined the carrying value of an investment has a credit loss. The Duke Energy Registrants analyze all investment holdings each reporting period to determine whether a decline in fair value is related to a credit loss. If a credit loss exists, the unrealized credit loss is included in earnings. There were no material credit losses as of September 30, 2020, and December 31, 2019.

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.



	September 30, 2020						December 31, 2019
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	687	$	—	$	—	$	101
Equity securities	3,436		103		5,459		3,523		55		5,661
Corporate debt securities	65		1		789		37		1		603
Municipal bonds	19		1		407		13		—		368
U.S. government bonds	58		—		843		33		1		1,256
Other debt securities	9		—		185		3		—		141
Total NDTF Investments	$	3,587	$	105	$	8,370	$	3,609	$	57	$	8,130
Other Investments
Cash and cash equivalents	$	—	$	—	$	110	$	—	$	—	$	52
Equity securities	60		—		126		57		—		122
Corporate debt securities	8		—		129		3		—		67
Municipal bonds	6		1		114		4		—		94
U.S. government bonds	1		—		21		2		—		41
Other debt securities	—		—		44		—		—		56
Total Other Investments	$	75	$	1	$	544	$	66	$	—	$	432
Total Investments	$	3,662	$	106	$	8,914	$	3,675	$	57	$	8,562

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and nine months ended September 30, 2020, and 2019, were as follows.



	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
FV-NI:
Realized gains	$	13	$	60	$	338	$	161
Realized losses	16		43		148		136
AFS:
Realized gains	26		53		73		110
Realized losses	19		36		38		83

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.



	September 30, 2020						December 31, 2019
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	42	$	—	$	—	$	21
Equity securities	2,027		52		3,229		1,914		8		3,154
Corporate debt securities	42		1		507		21		1		361
Municipal bonds	5		—		118		3		—		96
U.S. government bonds	28		—		428		16		1		578
Other debt securities	7		—		179		3		—		137
Total NDTF Investments	$	2,109	$	53	$	4,503	$	1,957	$	10	$	4,347



	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
FV-NI:
Realized gains	$	10	$	34	$	46	$	101
Realized losses	12		26		82		95
AFS:
Realized gains	20		21		50		46
Realized losses	17		13		30		34

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.



	September 30, 2020						December 31, 2019
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	645	$	—	$	—	$	80
Equity securities	1,409		51		2,230		1,609		47		2,507
Corporate debt securities	23		—		282		16		—		242
Municipal bonds	14		1		289		10		—		272
U.S. government bonds	30		—		415		17		—		678
Other debt securities	2		—		6		—		—		4
Total NDTF Investments	$	1,478	$	52	$	3,867	$	1,652	$	47	$	3,783
Other Investments
Cash and cash equivalents	$	—	$	—	$	107	$	—	$	—	$	49
Municipal bonds	4		—		53		3		—		51
Total Other Investments	$	4	$	—	$	160	$	3	$	—	$	100
Total Investments	$	1,482	$	52	$	4,027	$	1,655	$	47	$	3,883



	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
FV-NI:
Realized gains	$	3	$	26	$	292	$	60
Realized losses	4		17		66		41
AFS:
Realized gains	6		31		17		62
Realized losses	2		23		7		49

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.



	September 30, 2020						December 31, 2019
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	57	$	—	$	—	$	53
Equity securities	1,340		51		2,150		1,258		21		2,077
Corporate debt securities	23		—		282		16		—		242
Municipal bonds	14		1		289		10		—		272
U.S. government bonds	30		—		415		16		—		403
Other debt securities	2		—		6		—		—		4
Total NDTF Investments	$	1,409	$	52	$	3,199	$	1,300	$	21	$	3,051
Other Investments
Cash and cash equivalents	$	—	$	—	$	1	$	—	$	—	$	2
Total Other Investments	$	—	$	—	$	1	$	—	$	—	$	2
Total Investments	$	1,409	$	52	$	3,200	$	1,300	$	21	$	3,053



	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
FV-NI:
Realized gains	$	3	$	10	$	43	$	27
Realized losses	4		9		51		24
AFS:
Realized gains	6		2		17		4
Realized losses	2		—		7		2

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.



	September 30, 2020						December 31, 2019
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
NDTF
Cash and cash equivalents	$	—	$	—	$	588	$	—	$	—	$	27
Equity securities	69		—		80		351		26		430
U.S. government bonds	—		—		—		1		—		275
Total NDTF Investments^(a)	$	69	$	—	$	668	$	352	$	26	$	732
Other Investments
Cash and cash equivalents	$	—	$	—	$	2	$	—	$	—	$	4
Municipal bonds	4		—		53		3		—		51
Total Other Investments	$	4	$	—	$	55	$	3	$	—	$	55
Total Investments	$	73	$	—	$	723	$	355	$	26	$	787



	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
FV-NI:
Realized gains	$	—	$	16	$	249	$	33
Realized losses	—		8		15		17
AFS:
Realized gains	—		29		—		58
Realized losses	—		23		—		47

The following table presents the estimated fair value of investments in debt and equity securities; equity investments are measured at FV-NI and debt investments are classified as AFS.



	September 30, 2020						December 31, 2019
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized		Estimated		Unrealized		Unrealized		Estimated
	Holding		Holding		Fair		Holding		Holding		Fair
(in millions)	Gains		Losses		Value		Gains		Losses		Value
Investments
Cash and cash equivalents	$	—	$	—	$	1	$	—	$	—	$	—
Equity securities	45		—		84		43		—		81
Corporate debt securities	—		—		3		—		—		6
Municipal bonds	1		1		39		1		—		36
U.S. government bonds	—		—		3		—		—		2
Total Investments	$	46	$	1	$	130	$	44	$	—	$	125



	September 30, 2020
			Duke				Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Indiana
Due in one year or less	$	53	$	13	$	15	$	14	$	1	$	4
Due after one through five years	558		247		256		246		10		16
Due after five through 10 years	608		278		232		224		8		9
Due after 10 years	1,313		694		542		508		34		16
Total	$	2,532	$	1,232	$	1,045	$	992	$	53	$	45