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.

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 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 considered OTTIs and 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 is other-than-temporarily impaired. The Duke Energy Registrants analyze all investment holdings each reporting period to determine whether a decline in fair value should be considered other-than-temporary. If an OTTI exists, the unrealized credit loss is included in earnings. There were no material credit losses as of September 30, 2019, and December 31, 2018.

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, 2019						December 31, 2018
	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	$	—	$	—	$	114	$	—	$	—	$	88
Equity securities	3,118		63		5,222		2,402		95		4,475
Corporate debt securities	40		1		633		4		13		566
Municipal bonds	14		—		370		1		4		353
U.S. government bonds	39		—		1,217		14		12		1,076
Other debt securities	4		—		142		—		2		148
Total NDTF Investments	$	3,215	$	64	$	7,698	$	2,421	$	126	$	6,706
Other Investments
Cash and cash equivalents	$	—	$	—	$	53	$	—	$	—	$	22
Equity securities	48		—		112		36		1		99
Corporate debt securities	2		—		72		—		2		60
Municipal bonds	5		—		94		—		1		85
U.S. government bonds	3		—		40		1		—		45
Other debt securities	1		—		65		—		1		58
Total Other Investments	$	59	$	—	$	436	$	37	$	5	$	369
Total Investments	$	3,274	$	64	$	8,134	$	2,458	$	131	$	7,075

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, 2019, and 2018, were as follows.



	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
FV-NI:
Realized gains	$	60	$	19	$	161	$	85
Realized losses	43		16		136		60
AFS:
Realized gains	53		4		110		14
Realized losses	36		7		83		32

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, 2019						December 31, 2018
	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	$	—	$	—	$	36	$	—	$	—	$	29
Equity securities	1,680		15		2,901		1,309		54		2,484
Corporate debt securities	24		1		409		2		9		341
Municipal bonds	4		—		96		—		1		81
U.S. government bonds	19		—		517		5		8		475
Other debt securities	4		—		137		—		2		143
Total NDTF Investments	$	1,731	$	16	$	4,096	$	1,316	$	74	$	3,553



	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
FV-NI:
Realized gains	$	34	$	11	$	101	$	47
Realized losses	26		8		95		30
AFS:
Realized gains	21		4		46		13
Realized losses	13		6		34		24

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, 2019						December 31, 2018
	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	$	—	$	—	$	78	$	—	$	—	$	59
Equity securities	1,438		48		2,321		1,093		41		1,991
Corporate debt securities	16		—		224		2		4		225
Municipal bonds	10		—		274		1		3		272
U.S. government bonds	20		—		700		9		4		601
Other debt securities	—		—		5		—		—		5
Total NDTF Investments	$	1,484	$	48	$	3,602	$	1,105	$	52	$	3,153
Other Investments
Cash and cash equivalents	$	—	$	—	$	49	$	—	$	—	$	17
Municipal bonds	4		—		52		—		—		47
Total Other Investments	$	4	$	—	$	101	$	—	$	—	$	64
Total Investments	$	1,488	$	48	$	3,703	$	1,105	$	52	$	3,217



	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
FV-NI:
Realized gains	$	26	$	8	$	60	$	38
Realized losses	17		8		41		30
AFS:
Realized gains	31		—		62		1
Realized losses	23		1		49		8

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, 2019						December 31, 2018
	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	$	—	$	—	$	52	$	—	$	—	$	46
Equity securities	1,107		30		1,907		833		30		1,588
Corporate debt securities	16		—		224		2		3		171
Municipal bonds	10		—		274		1		3		271
U.S. government bonds	19		—		420		6		3		415
Other debt securities	—		—		5		—		—		3
Total NDTF Investments	$	1,152	$	30	$	2,882	$	842	$	39	$	2,494
Other Investments
Cash and cash equivalents	$	—	$	—	$	2	$	—	$	—	$	6
Total Other Investments	$	—	$	—	$	2	$	—	$	—	$	6
Total Investments	$	1,152	$	30	$	2,884	$	842	$	39	$	2,500



	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
FV-NI:
Realized gains	$	10	$	7	$	27	$	32
Realized losses	9		7		24		27
AFS:
Realized gains	2		—		4		1
Realized losses	—		1		2		6

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, 2019						December 31, 2018
	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	$	—	$	—	$	26	$	—	$	—	$	13
Equity securities	331		18		414		260		11		403
Corporate debt securities	—		—		—		—		1		54
Municipal bonds	—		—		—		—		—		1
U.S. government bonds	1		—		280		3		1		186
Other debt securities	—		—		—		—		—		2
Total NDTF Investments^(a)	$	332	$	18	$	720	$	263	$	13	$	659
Other Investments
Cash and cash equivalents	$	—	$	—	$	4	$	—	$	—	$	1
Municipal bonds	4		—		52		—		—		47
Total Other Investments	$	4	$	—	$	56	$	—	$	—	$	48
Total Investments	$	336	$	18	$	776	$	263	$	13	$	707



	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
FV-NI:
Realized gains	$	16	$	1	$	33	$	6
Realized losses	8		1		17		3
AFS:
Realized gains	29		—		58		—
Realized losses	23		—		47		2

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, 2019						December 31, 2018
	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
Equity securities	$	37	$	—	$	74	$	29	$	—	$	67
Corporate debt securities	—		—		6		—		—		8
Municipal bonds	1		—		36		—		1		33
U.S. government bonds	—		—		1		—		—		—
Total Investments	$	38	$	—	$	117	$	29	$	1	$	108



	September 30, 2019
			Duke				Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Indiana
Due in one year or less	$	400	$	65	$	328	$	48	$	280	$	4
Due after one through five years	524		220		253		243		10		15
Due after five through 10 years	450		187		209		201		8		5
Due after 10 years	1,259		687		465		431		34		19
Total	$	2,633	$	1,159	$	1,255	$	923	$	332	$	43