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 June 30, 2021, and December 31, 2020.


	June 30, 2021						December 31, 2020
	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	$	—	$	—	$	153	$	—	$	—	$	177
Equity securities	4,710		31		6,743		4,138		54		6,235
Corporate debt securities	51		3		861		76		1		806
Municipal bonds	17		—		298		22		—		370
U.S. government bonds	36		8		1,665		51		—		1,361

Other debt securities	6		—		188		8		—		180
Total NDTF Investments	$	4,820	$	42	$	9,908	$	4,295	$	55	$	9,129
Other Investments
Cash and cash equivalents	$	—	$	—	$	83	$	—	$	—	$	127
Equity securities	98		—		166		79		—		146
Corporate debt securities	4		—		118		8		—		110
Municipal bonds	4		1		69		5		—		86
U.S. government bonds	1		—		66		—		—		42
Other debt securities	—		—		31		—		—		47
Total Other Investments	$	107	$	1	$	533	$	92	$	—	$	558
Total Investments	$	4,927	$	43	$	10,441	$	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 and six months ended June 30, 2021, and 2020, were as follows.


	Three Months Ended				Six Months Ended
(in millions)	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
FV-NI:
Realized gains	$	146	$	302	$	286	$	325
Realized losses	37		67		60		132
AFS:
Realized gains	16		27		34		47
Realized losses	18		13		31		19


	June 30, 2021						December 31, 2020
	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	$	—	$	—	$	68	$	—	$	—	$	30
Equity securities	2,729		14		3,910		2,442		23		3,685
Corporate debt securities	32		2		495		49		1		510
Municipal bonds	2		—		21		6		—		91
U.S. government bonds	19		3		770		25		—		475
Other debt securities	5		—		182		7		—		174
Total NDTF Investments	$	2,787	$	19	$	5,446	$	2,529	$	24	$	4,965


	Three Months Ended				Six Months Ended
(in millions)	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
FV-NI:
Realized gains	$	90	$	27	$	218	$	36
Realized losses	23		25		39		70
AFS:
Realized gains	12		18		25		30
Realized losses	13		8		22		13


	June 30, 2021						December 31, 2020
	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	$	—	$	—	$	85	$	—	$	—	$	147
Equity securities	1,981		17		2,833		1,696		31		2,550
Corporate debt securities	19		1		366		27		—		296
Municipal bonds	15		—		277		16		—		279
U.S. government bonds	17		5		895		26		—		886

Other debt securities	1		—		6		1		—		6
Total NDTF Investments	$	2,033	$	23	$	4,462	$	1,766	$	31	$	4,164
Other Investments
Cash and cash equivalents	$	—	$	—	$	4	$	—	$	—	$	106

Municipal bonds	3		—		27		3		—		26
Total Other Investments	$	3	$	—	$	31	$	3	$	—	$	132
Total Investments	$	2,036	$	23	$	4,493	$	1,769	$	31	$	4,296


	Three Months Ended				Six Months Ended
(in millions)	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
FV-NI:
Realized gains	$	56	$	275	$	68	$	289
Realized losses	14		42		21		62
AFS:
Realized gains	3		6		7		11
Realized losses	3		4		6		5


	June 30, 2021						December 31, 2020
	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	$	—	$	—	$	73	$	—	$	—	$	76
Equity securities	1,888		17		2,730		1,617		31		2,459
Corporate debt securities	19		1		299		27		—		296
Municipal bonds	15		—		277		16		—		279
U.S. government bonds	17		2		479		26		—		412
Other debt securities	1		—		6		1		—		6
Total NDTF Investments	$	1,940	$	20	$	3,864	$	1,687	$	31	$	3,528
Other Investments
Cash and cash equivalents	$	—	$	—	$	1	$	—	$	—	$	1
Total Other Investments	$	—	$	—	$	1	$	—	$	—	$	1
Total Investments	$	1,940	$	20	$	3,865	$	1,687	$	31	$	3,529


	Three Months Ended				Six Months Ended
(in millions)	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
FV-NI:
Realized gains	$	55	$	26	$	67	$	40
Realized losses	13		27		20		47
AFS:
Realized gains	3		6		7		11
Realized losses	3		4		6		5


	June 30, 2021						December 31, 2020
	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	$	—	$	—	$	12	$	—	$	—	$	71
Equity securities	93		—		103		79		—		91
Corporate debt securities	—		—		67		—		—		—

U.S. government bonds	—		3		416		—		—		474


Total NDTF Investments(a)	$	93	$	3	$	598	$	79	$	—	$	636
Other Investments
Cash and cash equivalents	$	—	$	—	$	1	$	—	$	—	$	1

Municipal bonds	3		—		27		3		—		26
Total Other Investments	$	3	$	—	$	28	$	3	$	—	$	27
Total Investments	$	96	$	3	$	626	$	82	$	—	$	663

(a)During the six months ended June 30, 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.


	June 30, 2021						December 31, 2020
	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	$	—	$	—	$	1
Equity securities	70		—		110		58		—		97
Corporate debt securities	—		—		4		—		—		3
Municipal bonds	1		1		35		1		—		38
U.S. government bonds	—		—		6		—		—		4

Total Investments	$	71	$	1	$	156	$	59	$	—	$	143


	June 30, 2021
			Duke				Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Indiana
Due in one year or less	$	162	$	10	$	112	$	16	$	96	$	4
Due after one through five years	1,022		385		578		262		316		18
Due after five through 10 years	683		301		302		243		59		8
Due after 10 years	1,429		772		579		540		39		15
Total	$	3,296	$	1,468	$	1,571	$	1,061	$	510	$	45