6. EQUITY

A. EARNINGS PER COMMON SHARE

There are no material differences between our basic and diluted earnings per share amounts or our basic and diluted weighted-average number of common shares outstanding for the three and six months ended June 30, 2012 and 2011. The effects of performance share awards and stock options outstanding on diluted earnings per share are immaterial.

B. RECONCILIATION OF TOTAL EQUITY

PROGRESS ENERGY

The consolidated financial statements include the accounts of the Parent and its majority owned subsidiaries. Noncontrolling interests represents minority shareholders' proportionate share of the equity of a subsidiary.

The following table presents changes in total equity for the year to date:

(in millions)		Total Common Stock Equity		Noncontrolling Interests		Total Equity
Balance, December 31, 2011		$	10,021	$	4	$	10,025
Net income^(a)			213		1		214
Other comprehensive income			1		0		1
Issuance of shares through offerings and stock- based compensation plans (See Note 6C)			31		0		31
Dividends declared			(369)		0		(369)
Distributions to noncontrolling interests			0		(2)		(2)
Balance, June 30, 2012		$	9,897	$	3	$	9,900

Balance, December 31, 2010		$	10,023	$	4	$	10,027
Net income^(a)			360		1		361
Other comprehensive loss			(17)		0		(17)
Issuance of shares through offerings and stock- based compensation plans (See Note 6C)			47		0		47
Dividends declared			(367)		0		(367)
Distributions to noncontrolling interests			0		(2)		(2)
Balance, June 30, 2011		$	10,046	$	3	$	10,049

^(a)	For the six months ended June 30, 2012, consolidated net income of $216 million includes $2 million attributable to preferred shareholders of subsidiaries. For the six months ended June 30, 2011, consolidated net income of $363 million includes $2 million attributable to preferred shareholders of subsidiaries. Income attributable to preferred shareholders of subsidiaries is not a component of total equity and is excluded from the table above.

PEC

Interim disclosures of changes in equity are required if the reporting entity has less than wholly owned subsidiaries, of which PEC has none. Therefore, an equity reconciliation for PEC has not been provided.

PEF

Interim disclosures of changes in equity are required if the reporting entity has less than wholly owned subsidiaries, of which PEF has none. Therefore, an equity reconciliation for PEF has not been provided.

C. COMMON STOCK

At June 30, 2012 and December 31, 2011, we had 500 million shares of common stock authorized under our charter, of which 296 million and 295 million shares were outstanding, respectively. Prior to the merger, we periodically issued shares of common stock through the Progress Energy Investor Plus Plan (IPP), equity incentive plans and other benefit plans. Effective July 2, 2012, each of our outstanding shares of common stock was converted into 0.87083 shares of Duke Energy stock (See Note 2). As a result of the merger, Progress Energy has 100 authorized, issued and outstanding shares of common stock, all of which are held by Duke Energy.

The following table presents information for our common stock issuances:

		2012			2011
(in millions)		Shares	Net Proceeds		Shares	Net Proceeds
Three months ended June 30
	Total issuances	0.1	$	3	0.4	$	18
Six months ended June 30
	Total issuances	0.9	$	6	1.4	$	26
	Issuances through IPP	0.0		0	0.0		1

Equity [Line Items]

Equity

6. EQUITY

B. RECONCILIATION OF TOTAL EQUITY

PEF

Interim disclosures of changes in equity are required if the reporting entity has less than wholly owned subsidiaries, of which PEF has none. Therefore, an equity reconciliation for PEF has not been provided.