XML 71 R17.htm IDEA: XBRL DOCUMENT v3.21.1
Investments in Debt and Equity Securities
 3 Months Ended
Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Investments In Debt And Equity Securities INVESTMENTS IN DEBT AND EQUITY SECURITIES
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.
Duke Energy classifies the majority of investments in debt and equity securities as long term, unless otherwise noted.
Investment Trusts
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.
Other AFS Securities
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 March 31, 2021, and December 31, 2020.
Other Investments amounts are recorded in Other within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets.
DUKE ENERGY
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.
March 31, 2021December 31, 2020
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
(in millions)GainsLossesValueGainsLossesValue
NDTF
Cash and cash equivalents$— $— $193 $— $— $177 
Equity securities4,363 47 6,379 4,138 54 6,235 
Corporate debt securities38 8 793 76 1 806 
Municipal bonds13 1 299 22 — 370 
U.S. government bonds31 18 1,559 51 — 1,361 
Other debt securities5 — 184 8 — 180 
Total NDTF Investments$4,450 $74 $9,407 $4,295 $55 $9,129 
Other Investments
Cash and cash equivalents$— $— $222 $— $— $127 
Equity securities86 — 154 79 — 146 
Corporate debt securities2 — 109 8 — 110 
Municipal bonds3 1 77 5 — 86 
U.S. government bonds— 1 55 — — 42 
Other debt securities— 1 36 — — 47 
Total Other Investments$91 $3 $653 $92 $— $558 
Total Investments$4,541 $77 $10,060 $4,387 $55 $9,687 
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three months ended March 31, 2021, and 2020, were as follows.
Three Months Ended
(in millions)March 31, 2021March 31, 2020
FV-NI:
 Realized gains $140 $23 
 Realized losses23 65 
AFS:
 Realized gains18 20 
 Realized losses13 6 
DUKE ENERGY CAROLINAS
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
March 31, 2021December 31, 2020
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
(in millions)GainsLossesValueGainsLossesValue
NDTF
Cash and cash equivalents$— $— $63 $— $— $30 
Equity securities2,531 23 3,738 2,442 23 3,685 
Corporate debt securities23 5 475 49 1 510 
Municipal bonds— — 22 6 — 91 
U.S. government bonds16 9 669 25 — 475 
Other debt securities4 — 178 7 — 174 
Total NDTF Investments$2,574 $37 $5,145 $2,529 $24 $4,965 
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three months ended March 31, 2021, and 2020, were as follows.
Three Months Ended
(in millions)March 31, 2021March 31, 2020
FV-NI:
 Realized gains$128 $9 
 Realized losses 16 45 
AFS:
 Realized gains13 12 
 Realized losses9 5 
PROGRESS ENERGY
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
March 31, 2021December 31, 2020
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
(in millions)GainsLossesValueGainsLossesValue
NDTF
Cash and cash equivalents$— $— $130 $— $— $147 
Equity securities1,832 24 2,641 1,696 31 2,550 
Corporate debt securities15 3 318 27 — 296 
Municipal bonds13 1 277 16 — 279 
U.S. government bonds15 9 890 26 — 886 
Other debt securities1 — 6 1 — 6 
Total NDTF Investments$1,876 $37 $4,262 $1,766 $31 $4,164 
Other Investments
Cash and cash equivalents$— $— $107 $— $— $106 
Municipal bonds2 — 26 3 — 26 
Total Other Investments$2 $— $133 $3 $— $132 
Total Investments$1,878 $37 $4,395 $1,769 $31 $4,296 
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three months ended March 31, 2021, and 2020, were as follows.
Three Months Ended
(in millions)March 31, 2021March 31, 2020
FV-NI:
 Realized gains$12 $14 
 Realized losses7 20 
AFS:
 Realized gains4 5 
 Realized losses3 1 
DUKE ENERGY PROGRESS
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
March 31, 2021December 31, 2020
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
(in millions)GainsLossesValueGainsLossesValue
NDTF
Cash and cash equivalents$— $— $95 $— $— $76 
Equity securities1,746 24 2,547 1,617 31 2,459 
Corporate debt securities15 3 291 27 — 296 
Municipal bonds13 1 277 16 — 279 
U.S. government bonds15 4 429 26 — 412 
Other debt securities1 — 6 1 — 6 
Total NDTF Investments$1,790 $32 $3,645 $1,687 $31 $3,528 
Other Investments
Cash and cash equivalents$— $— $1 $— $— $1 
Total Other Investments$— $— $1 $— $— $1 
Total Investments$1,790 $32 $3,646 $1,687 $31 $3,529 
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three months ended March 31, 2021, and 2020, were as follows.
Three Months Ended
(in millions)March 31, 2021March 31, 2020
FV-NI:
 Realized gains$12 $14 
 Realized losses7 20 
AFS:
 Realized gains4 5 
 Realized losses3 1 
DUKE ENERGY FLORIDA
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
March 31, 2021December 31, 2020
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
(in millions)GainsLossesValueGainsLossesValue
NDTF
Cash and cash equivalents$— $— $35 $— $— $71 
Equity securities86 — 94 79 — 91 
Corporate debt securities— — 27 — — — 
U.S. government bonds— 5 461 — — 474 
Total NDTF Investments(a)
$86 $5 $617 $79 $— $636 
Other Investments
Cash and cash equivalents$— $— $2 $— $— $1 
Municipal bonds2 — 26 3 — 26 
Total Other Investments$2 $— $28 $3 $— $27 
Total Investments$88 $5 $645 $82 $— $663 
(a)During the three months ended March 31, 2021, and the year ended December 31, 2020, Duke Energy Florida received reimbursements from the NDTF for costs related to ongoing decommissioning activity of Crystal River Unit 3.
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three months ended March 31, 2021, and 2020, were immaterial.
DUKE ENERGY INDIANA
The following table presents the estimated fair value of investments in debt and equity securities; equity investments are measured at FV-NI and debt investments are classified as AFS.
March 31, 2021December 31, 2020
GrossGrossGrossGross
UnrealizedUnrealizedEstimatedUnrealizedUnrealizedEstimated
HoldingHoldingFairHoldingHoldingFair
(in millions)GainsLossesValueGainsLossesValue
Investments
Cash and cash equivalents$— $— $— $— $— $1 
Equity securities62 — 102 58 — 97 
Corporate debt securities— — 4 — — 3 
Municipal bonds1 1 35 1 — 38 
U.S. government bonds— — 6 — — 4 
Total Investments$63 $1 $147 $59 $— $143 
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three months ended March 31, 2021, and 2020, were immaterial.
DEBT SECURITY MATURITIES
The table below summarizes the maturity date for debt securities.
March 31, 2021
DukeDukeDukeDuke
DukeEnergyProgressEnergyEnergyEnergy
(in millions)EnergyCarolinasEnergyProgressFloridaIndiana
Due in one year or less$152 $7 $116 $18 $98 $5 
Due after one through five years1,013 375 579 267 312 18 
Due after five through 10 years693 310 289 217 72 9 
Due after 10 years1,254 652 533 501 32 13 
Total$3,112 $1,344 $1,517 $1,003 $514 $45