EMPLOYEE BENEFIT PLANS

DEFINED BENEFIT RETIREMENT PLANS

Duke Energy maintains, and the Subsidiary Registrants participate in, qualified and non-qualified, non-contributory defined benefit retirement plans. Duke Energy’s policy is to fund amounts on an actuarial basis to provide assets sufficient to meet benefit payments to be paid to plan participants. The following table includes information related to the Duke Energy Registrants' contributions to its U.S. qualified defined benefit pension plans.



			Duke
	Duke		Energy
(in millions)	Energy		Ohio		Piedmont
Anticipated 2017 contributions	$	19	$	4	$	11
Contributions made during the nine months ended September 30, 2017	8		4		—
Remaining estimated contributions to be made in 2017	$	11	$	—	$	11

Duke Energy did not make any contributions to its U.S. qualified defined benefit pension plans during the nine months ended September 30, 2016.

Net periodic benefit costs disclosed in the tables below represent the cost of the respective benefit plan for the periods presented. However, portions of the net periodic benefit costs disclosed in the tables below have been capitalized as a component of property, plant and equipment. Amounts presented in the tables below for the Subsidiary Registrants represent the amounts of pension and other post-retirement benefit costs allocated by Duke Energy for employees of the Subsidiary Registrants. Additionally, the Subsidiary Registrants are allocated their proportionate share of pension and post-retirement benefit costs for employees of Duke Energy’s shared services affiliate that provides support to the Subsidiary Registrants. These allocated amounts are included in the governance and shared service costs discussed in Note 9. Duke Energy uses a December 31 measurement date for its defined benefit retirement plan assets and obligations.

QUALIFIED PENSION PLANS

The following tables include the components of net periodic pension costs for qualified pension plans.



	Three Months Ended September 30, 2017
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Service cost	$	40		$	12		$	12		$	6		$	5		$	1		$	2		$	3
Interest cost on projected benefit obligation	82			20			25			12			13			4			7			3
Expected return on plan assets	(136		)	(35		)	(43		)	(21		)	(21		)	(7		)	(11		)	(6		)
Amortization of actuarial loss	36			8			14			6			7			1			3			3
Amortization of prior service credit	(6		)	(2		)	(1		)	—			—			—			—			(1		)
Other	2			—			1			—			—			—			—			—
Net periodic pension costs	$	18		$	3		$	8		$	3		$	4		$	(1	)	$	1		$	2



	Three Months Ended September 30, 2016
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Service cost	$	36		$	12		$	11		$	6		$	4		$	1		$	2		$	3
Interest cost on projected benefit obligation	83			21			27			12			14			5			7			2
Expected return on plan assets	(128		)	(35		)	(42		)	(21		)	(21		)	(6		)	(10		)	(6		)
Amortization of actuarial loss	33			8			14			6			7			1			3			2
Amortization of prior service credit	(4		)	(2		)	(1		)	—			(1		)	—			—			(1		)
Other	2			1			1			—			1			—			—			—
Net periodic pension costs	$	22		$	5		$	10		$	3		$	4		$	1		$	2		$	—



	Nine Months Ended September 30, 2017
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Service cost	$	120		$	36		$	36		$	18		$	15		$	3		$	6		$	9
Interest cost on projected benefit obligation	246			60			75			36			39			14			21			9
Expected return on plan assets	(408		)	(106		)	(129		)	(63		)	(63		)	(21		)	(33		)	(18		)
Amortization of actuarial loss	108			24			42			18			21			3			9			9
Amortization of prior service credit	(18		)	(6		)	(3		)	—			—			—			—			(3		)
Other	6			—			3			1			—			—			—			1
Net periodic pension costs	$	54		$	8		$	24		$	10		$	12		$	(1	)	$	3		$	7



	Nine Months Ended September 30, 2016
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Service cost	$	109		$	36		$	32		$	18		$	14		$	3		$	6		$	8
Interest cost on projected benefit obligation	249			64			80			37			42			15			21			7
Expected return on plan assets	(386		)	(106		)	(126		)	(62		)	(63		)	(20		)	(31		)	(18		)
Amortization of actuarial loss	99			24			41			17			21			3			9			6
Amortization of prior service credit	(12		)	(6		)	(3		)	(1		)	(1		)	—			—			(2		)
Other	6			2			2			1			1			—			—			—
Net periodic pension costs	$	65		$	14		$	26		$	10		$	14		$	1		$	5		$	1

NON-QUALIFIED PENSION PLANS

The following tables include the components of net periodic pension costs for non-qualified pension plans for registrants with non-qualified pension costs.



	Three Months Ended September 30, 2017
			Duke				Duke		Duke
	Duke		Energy		Progress		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida
Service cost	$	—	$	—	$	—	$	—	$	—
Interest cost on projected benefit obligation	4		—		1		1		1
Amortization of actuarial loss	2		—		1		—		—
Net periodic pension costs	$	6	$	—	$	2	$	1	$	1



	Three Months Ended September 30, 2016
				Duke				Duke		Duke
	Duke			Energy		Progress		Energy		Energy
(in millions)	Energy			Carolinas		Energy		Progress		Florida
Service cost	$	1		$	—	$	—	$	—	$	—
Interest cost on projected benefit obligation	4			—		2		—		—
Amortization of actuarial loss	2			—		1		1		1
Amortization of prior service credit	(1		)	—		—		—		—
Net periodic pension costs	$	6		$	—	$	3	$	1	$	1



	Nine Months Ended September 30, 2017
			Duke				Duke		Duke
	Duke		Energy		Progress		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida
Service cost	$	—	$	—	$	—	$	—	$	—
Interest cost on projected benefit obligation	10		1		3		2		2
Amortization of actuarial loss	6		—		3		—		—
Net periodic pension costs	$	16	$	1	$	6	$	2	$	2



	Nine Months Ended September 30, 2016
				Duke				Duke		Duke
	Duke			Energy		Progress		Energy		Energy
(in millions)	Energy			Carolinas		Energy		Progress		Florida
Service cost	$	2		$	—	$	—	$	—	$	—
Interest cost on projected benefit obligation	11			1		4		1		1
Amortization of actuarial loss	6			—		2		1		1
Amortization of prior service credit	(1		)	—		—		—		—
Net periodic pension costs	$	18		$	1	$	6	$	2	$	2

OTHER POST-RETIREMENT BENEFIT PLANS

Duke Energy provides, and the Subsidiary Registrants participate in, some health care and life insurance benefits for retired employees on a contributory and non-contributory basis.

The following tables include the components of net periodic other post-retirement benefit costs.



	Three Months Ended September 30, 2017
				Duke						Duke			Duke			Duke		Duke
	Duke			Energy			Progress			Energy			Energy			Energy		Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio		Indiana		Piedmont
Service cost	$	1		$	—		$	—		$	—		$	—		$	—	$	—	$	—
Interest cost on accumulated post-retirement benefit obligation	9			2			4			2			2			—		1		—
Expected return on plan assets	(3		)	(2		)	—			—			—			—		—		—
Amortization of actuarial loss	2			—			5			3			2			—		—		—
Amortization of prior service credit	(29		)	(2		)	(21		)	(14		)	(8		)	—		—		—
Net periodic other post-retirement benefit costs	$	(20	)	$	(2	)	$	(12	)	$	(9	)	$	(4	)	$	—	$	1	$	—



	Three Months Ended September 30, 2016
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Service cost	$	—		$	—		$	1		$	—		$	—		$	—		$	—		$	1
Interest cost on accumulated post-retirement benefit obligation	9			2			4			2			3			—			1			—
Expected return on plan assets	(2		)	(2		)	(1		)	—			—			—			—			—
Amortization of actuarial loss (gain)	2			—			5			3			2			(1		)	—			—
Amortization of prior service credit	(35		)	(4		)	(26		)	(16		)	(8		)	—			(1		)	—
Net periodic other post-retirement benefit costs	$	(26	)	$	(4	)	$	(17	)	$	(11	)	$	(3	)	$	(1	)	$	—		$	1



	Nine Months Ended September 30, 2017
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana		Piedmont
Service cost	$	3		$	—		$	—		$	—		$	—		$	—		$	—	$	—
Interest cost on accumulated post-retirement benefit obligation	27			6			11			6			6			—			1		—
Expected return on plan assets	(10		)	(6		)	—			—			—			—			—		—
Amortization of actuarial loss (gain)	6			(2		)	15			9			6			(1		)	—		—
Amortization of prior service credit	(87		)	(6		)	(63		)	(41		)	(23		)	—			—		—
Net periodic other post-retirement benefit costs	$	(61	)	$	(8	)	$	(37	)	$	(26	)	$	(11	)	$	(1	)	$	1	$	—



	Nine Months Ended September 30, 2016
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Service cost	$	2		$	—		$	1		$	—		$	—		$	—		$	—		$	1
Interest cost on accumulated post-retirement benefit obligation	26			6			11			6			6			1			3			1
Expected return on plan assets	(9		)	(6		)	(1		)	—			—			—			(1		)	(1		)
Amortization of actuarial loss (gain)	5			(2		)	16			9			7			(2		)	(1		)	—
Amortization of prior service credit	(106		)	(10		)	(77		)	(50		)	(26		)	—			(1		)	—
Net periodic other post-retirement benefit costs	$	(82	)	$	(12	)	$	(50	)	$	(35	)	$	(13	)	$	(1	)	$	—		$	1

DEFINED CONTRIBUTION RETIREMENT PLANS

EMPLOYEE SAVINGS PLANS

Duke Energy sponsors, and the Subsidiary Registrants participate in, employee savings plans that cover substantially all U.S. employees. The following table presents employer contributions made by Duke Energy and expensed by the Subsidiary Registrants.



			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Three Months Ended September 30,
2017	$	43	$	14	$	12	$	9	$	4	$	1	$	2	$	2
2016	39		13		12		8		3		1		2		2
Nine Months Ended September 30,
2017	$	147	$	49	$	42	$	30	$	13	$	3	$	7	$	5
2016	130		44		39		27		11		3		6		5

MONEY PURCHASE PENSION PLAN

Duke Energy provides, and Piedmont participates in, the Money Purchase Pension (MPP) plan, which is a defined contribution pension plan that allows certain employees to direct investments and assume risk of investment returns. In January 2017, a $2 million contribution was made to the MPP plan.