Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following table presents goodwill by reportable operating segment for Duke Energy.

Duke Energy



	Regulated		International			Commercial
(in millions)	Utilities		Energy			Portfolio		Total
Goodwill at December 31, 2014^(a)	$	15,950	$	307		$	64	$	16,321
Foreign exchange and other changes	—		(36		)	—		(36		)
Acquisitions	—		—			58		58
Goodwill at December 31, 2015	$	15,950	$	271		$	122	$	16,343


(a)	Excludes fully impaired Goodwill related to the nonregulated Midwest Generation business which was sold in the second quarter of 2015. See Note 2 for further information related to the sale.

Duke Energy Ohio

Duke Energy Ohio's Goodwill balance of $920 million is included in the Regulated Utilities operating segment and presented net of accumulated impairment charges of $216 million on the Consolidated Balance Sheets at December 31, 2015 and 2014.

Progress Energy

Progress Energy's Goodwill is included in the Regulated Utilities operating segment and there are no accumulated impairment charges.

Impairment Testing

Duke Energy, Duke Energy Ohio and Progress Energy perform annual goodwill impairment tests each year as of August 31. Duke Energy, Duke Energy Ohio and Progress Energy update their test between annual tests if events or circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value. As the fair value of Duke Energy, Duke Energy Ohio and Progress Energy’s reporting units exceeded their respective carrying values at the date of the annual impairment analysis, no impairment charges were recorded in 2015.

Intangible Assets

The following tables show the carrying amount and accumulated amortization of intangible assets within Other on the Consolidated Balance Sheets of the Duke Energy Registrants at December 31, 2015 and 2014.



	December 31, 2015
				Duke				Duke		Duke		Duke		Duke
	Duke			Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy			Carolinas		Energy		Progress		Florida		Ohio		Indiana
Emission allowances	$	20		$	1	$	6	$	2	$	4	$	—	$	14
Renewable energy certificates	116			30		80		80		—		5		—
Gas, coal and power contracts	24			—		—		—		—		—		24
Wind development rights	115			—		—		—		—		—		—
Other	68			—		—		—		—		—		—
Total gross carrying amounts	343			31		86		82		4		5		38
Accumulated amortization – gas, coal and power contracts	(16		)	—		—		—		—		—		(16		)
Accumulated amortization – wind development rights	(18		)	—		—		—		—		—		—
Accumulated amortization – other	(24		)	—		—		—		—		—		—
Total accumulated amortization	(58		)	—		—		—		—		—		(16		)
Total intangible assets, net	$	285		$	31	$	86	$	82	$	4	$	5	$	22



	December 31, 2014
				Duke				Duke		Duke		Duke		Duke
	Duke			Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy			Carolinas		Energy		Progress		Florida		Ohio		Indiana
Emission allowances	$	23		$	1	$	7	$	3	$	4	$	—	$	16
Renewable energy certificates	97			25		69		69		—		3		—
Gas, coal and power contracts	24			—		—		—		—		—		24
Wind development rights	97			—		—		—		—		—		—
Other	76			—		—		—		—		—		—
Total gross carrying amounts	317			26		76		72		4		3		40
Accumulated amortization – gas, coal and power contracts	(15		)	—		—		—		—		—		(15		)
Accumulated amortization – wind development rights	(14		)	—		—		—		—		—		—
Accumulated amortization – other	(25		)	—		—		—		—		—		—
Total accumulated amortization	(54		)	—		—		—		—		—		(15		)
Total intangible assets, net	$	263		$	26	$	76	$	72	$	4	$	3	$	25

Amortization Expense

The following table presents amortization expense for gas, coal and power contracts, wind development rights and other intangible assets.



	December 31,
(in millions)	2015		2014		2013
Duke Energy	$	4	$	6	$	13
Duke Energy Ohio	—		2		8
Duke Energy Indiana	1		1		1

The table below shows the expected amortization expense for the next five years for intangible assets as of December 31, 2015. The expected amortization expense includes estimates of emission allowances consumption and estimates of consumption of commodities such as gas and coal under existing contracts, as well as estimated amortization related to the wind development projects. The amortization amounts discussed below are estimates and actual amounts may differ from these estimates due to such factors as changes in consumption patterns, sales or impairments of emission allowances or other intangible assets, delays in the in-service dates of wind assets, additional intangible acquisitions and other events.



(in millions)	2016		2017		2018		2019		2020
Duke Energy	$	8	$	8	$	8	$	7	$	7
Duke Energy Indiana	2		2		2		2		2

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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