Investments in Debt and Equity Securities

12 Months Ended

Dec. 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 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 December 31, 2021, and 2020.

Other Investments amounts are recorded in Other within Other Noncurrent Assets on the 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.

	December 31, 2021						December 31, 2020
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized				Unrealized		Unrealized
	Holding		Holding		Estimated		Holding		Holding		Estimated
(in millions)	Gains		Losses		Fair Value		Gains		Losses		Fair Value
NDTF
Cash and cash equivalents	$	—	$	—	$	160	$	—	$	—	$	177
Equity securities	4,905		43		7,350		4,138		54		6,235
Corporate debt securities	39		6		829		76		1		806
Municipal bonds	14		1		314		22		—		370
U.S. government bonds	31		12		1,568		51		—		1,361
Other debt securities	3		1		180		8		—		180
Total NDTF Investments	$	4,992	$	63	$	10,401	$	4,295	$	55	$	9,129
Other Investments
Cash and cash equivalents	$	—	$	—	$	36	$	—	$	—	$	127
Equity securities	36		—		156		79		—		146
Corporate debt securities	2		1		119		8		—		110
Municipal bonds	3		1		80		5		—		86
U.S. government bonds	—		—		56		—		—		42
Other debt securities	—		1		45		—		—		47
Total Other Investments	$	41	$	3	$	492	$	92	$	—	$	558
Total Investments	$	5,033	$	66	$	10,893	$	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 years ended December 31, 2021, 2020 and 2019, were as follows.

	Years Ended December 31,
(in millions)	2021		2020		2019
FV-NI:
Realized gains	$	724	$	366	$	172
Realized losses	141		174		151
AFS:
Realized gains	56		96		94
Realized losses	54		51		67

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.

	December 31, 2021						December 31, 2020
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized				Unrealized		Unrealized
	Holding		Holding		Estimated		Holding		Holding		Estimated
(in millions)	Gains		Losses		Fair Value		Gains		Losses		Fair Value
NDTF
Cash and cash equivalents	$	—	$	—	$	53	$	—	$	—	$	30
Equity securities	2,887		19		4,265		2,442		23		3,685
Corporate debt securities	24		4		506		49		1		510
Municipal bonds	2		—		48		6		—		91
U.S. government bonds	16		3		712		25		—		475
Other debt securities	3		1		175		7		—		174
Total NDTF Investments	$	2,932	$	27	$	5,759	$	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 years ended December 31, 2021, 2020 and 2019, were as follows.

	Years Ended December 31,
(in millions)	2021		2020		2019
FV-NI:
Realized gains	$	440	$	64	$	113
Realized losses	96		99		107
AFS:
Realized gains	38		60		55
Realized losses	37		37		38

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.

	December 31, 2021						December 31, 2020
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized				Unrealized		Unrealized
	Holding		Holding		Estimated		Holding		Holding		Estimated
(in millions)	Gains		Losses		Fair Value		Gains		Losses		Fair Value
NDTF
Cash and cash equivalents	$	—	$	—	$	107	$	—	$	—	$	147
Equity securities	2,018		24		3,085		1,696		31		2,550
Corporate debt securities	15		2		323		27		—		296
Municipal bonds	12		1		266		16		—		279
U.S. government bonds	15		9		856		26		—		886
Other debt securities	—		—		5		1		—		6
Total NDTF Investments	$	2,060	$	36	$	4,642	$	1,766	$	31	$	4,164
Other Investments
Cash and cash equivalents	$	—	$	—	$	20	$	—	$	—	$	106
Municipal bonds	2		—		26		3		—		26
Total Other Investments	$	2	$	—	$	46	$	3	$	—	$	132
Total Investments	$	2,062	$	36	$	4,688	$	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 years ended December 31, 2021, 2020 and 2019, were as follows.

	Years Ended December 31,
(in millions)	2021		2020		2019
FV-NI:
Realized gains	$	284	$	302	$	59
Realized losses	45		75		44
AFS:
Realized gains	16		24		36
Realized losses	14		13		29

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.

	December 31, 2021						December 31, 2020
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized				Unrealized		Unrealized
	Holding		Holding		Estimated		Holding		Holding		Estimated
(in millions)	Gains		Losses		Fair Value		Gains		Losses		Fair Value
NDTF
Cash and cash equivalents	$	—	$	—	$	94	$	—	$	—	$	76
Equity securities	1,915		23		2,970		1,617		31		2,459
Corporate debt securities	15		2		282		27		—		296
Municipal bonds	12		1		266		16		—		279
U.S. government bonds	15		3		472		26		—		412
Other debt securities	—		—		5		1		—		6
Total NDTF Investments	$	1,957	$	29	$	4,089	$	1,687	$	31	$	3,528
Other Investments
Cash and cash equivalents	$	—	$	—	$	16	$	—	$	—	$	1
Total Other Investments	$	—	$	—	$	16	$	—	$	—	$	1
Total Investments	$	1,957	$	29	$	4,105	$	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 years ended December 31, 2021, 2020 and 2019, were as follows.

	Years Ended December 31,
(in millions)	2021		2020		2019
FV-NI:
Realized gains	$	283	$	52	$	38
Realized losses	44		59		33
AFS:
Realized gains	15		24		7
Realized losses	13		13		5

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.

	December 31, 2021						December 31, 2020
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized				Unrealized		Unrealized
	Holding		Holding		Estimated		Holding		Holding		Estimated
(in millions)	Gains		Losses		Fair Value		Gains		Losses		Fair Value
NDTF
Cash and cash equivalents	$	—	$	—	$	13	$	—	$	—	$	71
Equity securities	103		1		115		79		—		91
Corporate debt securities	—		—		41		—		—		—
U.S. government bonds	—		6		384		—		—		474
Total NDTF Investments(a)	$	103	$	7	$	553	$	79	$	—	$	636
Other Investments
Cash and cash equivalents	$	—	$	—	$	3	$	—	$	—	$	1
Municipal bonds	2		—		26		3		—		26
Total Other Investments	$	2	$	—	$	29	$	3	$	—	$	27
Total Investments	$	105	$	7	$	582	$	82	$	—	$	663

(a)    During the years ended December 31, 2021, and 2020, Duke Energy Florida continued to receive reimbursements from the NDTF for costs related to ongoing decommissioning activity of the 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 years ended December 31, 2021, 2020 and 2019, were as follows.

	Years Ended December 31,
(in millions)	2021		2020		2019
FV-NI:
Realized gains	$	1	$	250	$	21
Realized losses	1		16		11
AFS:
Realized gains	1		—		29
Realized losses	1		—		24

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.

	December 31, 2021						December 31, 2020
	Gross		Gross				Gross		Gross
	Unrealized		Unrealized				Unrealized		Unrealized
	Holding		Holding		Estimated		Holding		Holding		Estimated
(in millions)	Gains		Losses		Fair Value		Gains		Losses		Fair Value
Investments
Cash and cash equivalents	$	—	$	—	$	—	$	—	$	—	$	1
Equity securities	6		—		97		58		—		97
Corporate debt securities	—		—		6		—		—		3
Municipal bonds	1		1		46		1		—		38
U.S. government bonds	—		—		12		—		—		4
Total Investments	$	7	$	1	$	161	$	59	$	—	$	143

Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the years ended December 31, 2021, 2020 and 2019, were immaterial.

DEBT SECURITY MATURITIES

The table below summarizes the maturity date for debt securities.

	December 31, 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	$	159	$	3	$	138	$	31	$	107	$	7
Due after one through five years	957		337		546		256		290		25
Due after five through 10 years	550		226		248		231		17		10
Due after 10 years	1,525		875		544		507		37		22
Total	$	3,191	$	1,441	$	1,476	$	1,025	$	451	$	64