Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

DEFINED BENEFIT RETIREMENT PLANS

Duke Energy and certain subsidiaries maintain, and the Subsidiary Registrants participate in, qualified, non-contributory defined benefit retirement plans. The Duke Energy plans cover most employees using a cash balance formula. Under a cash balance formula, a plan participant accumulates a retirement benefit consisting of pay credits based upon a percentage of current eligible earnings, age or age and years of service and interest credits. Certain employees are eligible for benefits that use a final average earnings formula. Under these final average earnings formulas, a plan participant accumulates a retirement benefit equal to the sum of percentages of their (i) highest three-year, four-year, or five-year average earnings, (ii) highest three-year, four-year, or five-year average earnings in excess of covered compensation per year of participation (maximum of 35 years) or (iii) highest three-year average earnings times years of participation in excess of 35 years. Duke Energy also maintains, and the Subsidiary Registrants participate in, non-qualified, non-contributory defined benefit retirement plans that cover certain executives. The qualified and non-qualified, non-contributory defined benefit plans are closed to new participants.

Duke Energy approved plan amendments to restructure its qualified non-contributory defined benefit retirement plans, effective January 1, 2018. The restructuring involved (i) the spin-off of the majority of inactive participants from two plans into a separate inactive plan and (ii) the merger of the active participant portions of such plans, along with a pension plan acquired as part of the Piedmont transaction, into a single active plan. Benefits offered to the plan participants remain unchanged except that the Piedmont plan's final average earnings formula was frozen as of December 31, 2017, and affected participants were moved into the active plan's cash balance formula. Actuarial gains and losses associated with the Inactive Plan will be amortized over the remaining life expectancy of the inactive participants. The longer amortization period lowered Duke Energy's 2018 pretax qualified pension plan expense by approximately $33 million.

Duke Energy uses a December 31 measurement date for its defined benefit retirement plan assets and obligations.

As a result of the application of settlement accounting due to total lump-sum benefit payments exceeding the settlement threshold (defined as the sum of the service cost and interest cost on projected benefit obligation components of net periodic pension costs) for one of its qualified pension plans, Duke Energy recognized settlement charges of $94 million, primarily as a regulatory asset within Other Noncurrent Assets on the Consolidated Balance Sheets as of December 31, 2019 (an immaterial amount was recorded in Other income and expenses, net within the Consolidated Statement of Operations).

Settlement charges recognized by the Subsidiary Registrants as of December 31, 2019, which represent amounts allocated by Duke Energy for employees of the Subsidiary Registrants and allocated charges for their proportionate share of settlement charges for employees of Duke Energy’s shared services affiliate, were $53 million for Duke Energy Carolinas, $26 million for Progress Energy, $20 million for Duke Energy Progress, $6 million for Duke Energy Florida, $4 million for Duke Energy Indiana, $2 million for Duke Energy Ohio and $8 million for Piedmont.

The settlement charges reflect the recognition of a pro-rata portion of previously unrecognized actuarial losses, equal to the percentage of reduction in the projected benefit obligation resulting from total lump-sum benefit payments as of December 31, 2019. Settlement charges recognized as a regulatory asset within Other Noncurrent Assets on the Consolidated Balance Sheets are amortized over the average remaining service period for participants in the plan. Amortization of settlement charges is disclosed in the tables below as a component of net periodic pension costs.

Net periodic benefit costs disclosed in the tables below represent the cost of the respective benefit plan for the periods presented prior to capitalization of amounts reflected as Net property, plant and equipment, on the Consolidated Balance Sheets. Only the service cost component of net periodic benefit costs is eligible to be capitalized. The remaining non-capitalized portions of net periodic benefit costs are classified as either: (1) service cost, which is recorded in Operations, maintenance and other on the Consolidated Statements of Operations; or as (2) components of non-service cost, which is recorded in Other income and expenses, net, on the Consolidated Statements of Operations. Amounts presented in the tables below for the Subsidiary Registrants represent the amounts of pension and other post-retirement benefit cost allocated by Duke Energy for employees of the Subsidiary Registrants. Additionally, the Consolidated Statements of Operations of the Subsidiary Registrants also include allocated net periodic benefit costs for their proportionate share of pension and post-retirement benefit cost for employees of Duke Energy’s shared services affiliate that provide support to the Subsidiary Registrants. However, in the tables below, these amounts are only presented within the Duke Energy column (except for amortization of settlement charges). These allocated amounts are included in the governance and shared service costs discussed in Note 14.

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. Duke Energy does not anticipate making any contributions in 2020. The following table includes information related to the Duke Energy Registrants’ contributions to its qualified defined benefit pension plans.

			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Contributions Made:
2019	$	77	$	7	$	57	$	4	$	53	$	2	$	2	$	1
2018	141		46		45		25		20		—		8		—
2017	19		—		—		—		—		4		—		11

QUALIFIED PENSION PLANS

Components of Net Periodic Pension Costs

	Year Ended December 31, 2019
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Service cost	$	158		$	49		$	46		$	26		$	20		$	4		$	9		$	5
Interest cost on projected benefit obligation	317			75			100			45			54			18			26			10
Expected return on plan assets	(567		)	(147		)	(178		)	(88		)	(89		)	(28		)	(43		)	(22		)
Amortization of actuarial loss	108			24			39			15			24			4			8			8
Amortization of prior service credit	(32		)	(8		)	(3		)	(2		)	(1		)	—			(2		)	(9		)
Amortization of settlement charges	6			2			1			1			—			2			—			—
Net periodic pension costs(a)(b)	$	(10	)	$	(5	)	$	5		$	(3	)	$	8		$	—		$	(2	)	$	(8	)

	Year Ended December 31, 2018
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Service cost	$	182		$	58		$	51		$	29		$	22		$	5		$	11		$	7
Interest cost on projected benefit obligation	299			72			94			43			50			17			23			11
Expected return on plan assets	(559		)	(147		)	(178		)	(85		)	(91		)	(28		)	(42		)	(22		)
Amortization of actuarial loss	132			29			44			21			23			5			10			11
Amortization of prior service credit	(32		)	(8		)	(3		)	(2		)	(1		)	—			(2		)	(10		)
Net periodic pension costs(a)(b)	$	22		$	4		$	8		$	6		$	3		$	(1	)	$	—		$	(3	)

	Year Ended December 31, 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	$	159		$	48		$	45		$	26		$	19		$	4		$	9		$	10
Interest cost on projected benefit obligation	328			79			100			47			53			18			26			14
Expected return on plan assets	(545		)	(142		)	(167		)	(82		)	(85		)	(27		)	(42		)	(24		)
Amortization of actuarial loss	146			31			52			23			29			5			12			11
Amortization of prior service credit	(24		)	(8		)	(3		)	(2		)	(1		)	(1		)	(2		)	(2		)
Settlement charge	12			—			—			—			—			—			—			12
Other	8			2			2			1			1			—			1			1
Net periodic pension costs(a)(b)	$	84		$	10		$	29		$	13		$	16		$	(1	)	$	4		$	22

(a) Duke Energy amounts exclude $4 million, $5 million and $7 million for the years ended December 2019, 2018 and 2017, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

(b) Duke Energy Ohio amounts exclude $2 million, $2 million and $3 million for the years ended December 2019, 2018 and 2017, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

Amounts Recognized in Accumulated Other Comprehensive Income and Regulatory Assets

	Year Ended December 31, 2019
				Duke						Duke			Duke			Duke		Duke
	Duke			Energy			Progress			Energy			Energy			Energy		Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio		Indiana		Piedmont
Regulatory assets, net increase (decrease)	$	(212	)	$	(156	)	$	(79	)	$	(59	)	$	(20	)	$	12	$	22	$	—
Accumulated other comprehensive loss (income)
Deferred income tax expense (benefit)	$	20		—			1			—			(1		)	—		—		—
Amortization of prior year service credit	1			—			—			—			—			—		—		—
Amortization of prior year actuarial losses	(15		)	—			(2		)	—			3			—		—		—
Net amount recognized in accumulated other comprehensive income	$	6		$	—		$	(1	)	$	—		$	2		$	—	$	—	$	—

	Year Ended December 31, 2018
				Duke					Duke		Duke		Duke		Duke
	Duke			Energy		Progress			Energy		Energy		Energy		Energy
(in millions)	Energy			Carolinas		Energy			Progress		Florida		Ohio		Indiana		Piedmont
Regulatory assets, net increase	$	298		$	170	$	40		$	31	$	9	$	10	$	30	$	8
Accumulated other comprehensive (income) loss
Deferred income tax expense	$	(2	)	$	—	$	1		$	—	$	—	$	—	$	—	$	—
Prior year service credit arising during the year	1			—		—			—		—		—		—		—
Amortization of prior year actuarial losses	10			—		(4		)	—		—		—		—		—
Net amount recognized in accumulated other comprehensive income	$	9		$	—	$	(3	)	$	—	$	—	$	—	$	—	$	—

Reconciliation of Funded Status to Net Amount Recognized

	Year Ended December 31, 2019
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Change in Projected Benefit Obligation
Obligation at prior measurement date	$	7,869		$	1,954		$	2,433		$	1,125		$	1,295		$	435		$	618		$	264
Service cost	150			47			43			25			18			4			8			5
Interest cost	317			75			100			45			54			18			26			10
Actuarial loss	716			101			223			87			135			54			87			33
Transfers	—			11			—			—			—			—			—			—
Benefits paid	(731		)	(265		)	(191		)	(112		)	(78		)	(30		)	(46		)	(20		)
Obligation at measurement date	$	8,321		$	1,923		$	2,608		$	1,170		$	1,424		$	481		$	693		$	292
Accumulated Benefit Obligation at measurement date	$	8,262		$	1,923		$	2,578		$	1,170		$	1,392		$	471		$	686		$	292
Change in Fair Value of Plan Assets
Plan assets at prior measurement date	$	8,233		$	2,168		$	2,606		$	1,268		$	1,322		$	405		$	611		$	305
Employer contributions	77			7			57			4			53			2			2			1
Actual return on plan assets	1,331			342			426			204			218			66			100			49
Benefits paid	(731		)	(265		)	(191		)	(112		)	(78		)	(30		)	(46		)	(20		)
Transfers	—			11			—			—			—			—			—			—
Plan assets at measurement date	$	8,910		$	2,263		$	2,898		$	1,364		$	1,515		$	443		$	667		$	335
Funded status of plan	$	589		$	340		$	290		$	194		$	91		$	(38	)	$	(26	)	$	43

	Year Ended December 31, 2018
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Change in Projected Benefit Obligation
Obligation at prior measurement date	$	8,448		$	2,029		$	2,637		$	1,211		$	1,410		$	479		$	669		$	313
Service cost	174			56			49			28			21			5			10			7
Interest cost	299			72			94			43			50			17			23			11
Actuarial gain	(485		)	(44		)	(204		)	(87		)	(114		)	(29		)	(29		)	(18		)
Transfers	—			—			—			—			—			—			—			(16		)
Benefits paid	(567		)	(159		)	(143		)	(70		)	(72		)	(37		)	(55		)	(33		)
Obligation at measurement date	$	7,869		$	1,954		$	2,433		$	1,125		$	1,295		$	435		$	618		$	264
Accumulated Benefit Obligation at measurement date	$	7,818		$	1,954		$	2,404		$	1,125		$	1,265		$	425		$	614		$	264
Change in Fair Value of Plan Assets
Plan assets at prior measurement date	$	9,003		$	2,372		$	2,814		$	1,366		$	1,429		$	458		$	684		$	368
Employer contributions	141			46			45			25			20			—			8			—
Actual return on plan assets	(344		)	(91		)	(110		)	(53		)	(55		)	(16		)	(26		)	(14		)
Benefits paid	(567		)	(159		)	(143		)	(70		)	(72		)	(37		)	(55		)	(33		)
Transfers	—			—			—			—			—			—			—			(16		)
Plan assets at measurement date	$	8,233		$	2,168		$	2,606		$	1,268		$	1,322		$	405		$	611		$	305
Funded status of plan	$	364		$	214		$	173		$	143		$	27		$	(30	)	$	(7	)	$	41

Amounts Recognized in the Consolidated Balance Sheets

	December 31, 2019
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Prefunded pension(a)	$	621		$	340		$	322		$	194		$	123		$	38		$	57		$	43
Noncurrent pension liability(b)	$	32		$	—		$	32		$	—		$	32		$	76		$	83		$	—
Net asset (liability) recognized	$	589		$	340		$	290		$	194		$	91		$	(38	)	$	(26	)	$	43
Regulatory assets	$	1,972		$	420		$	717		$	313		$	404		$	112		$	204		$	81
Accumulated other comprehensive (income) loss
Deferred income tax benefit	$	(23	)	$	—		$	(1	)	$	—		$	(1	)	$	—		$	—		$	—
Prior service credit	(3		)	—			—			—			—			—			—			—
Net actuarial loss	111			—			3			—			3			—			—			—
Net amounts recognized in accumulated other comprehensive loss	$	85		$	—		$	2		$	—		$	2		$	—		$	—		$	—
Amounts to be recognized in net periodic pension costs in the next year
Unrecognized net actuarial loss	$	135		$	29		$	43		$	19		$	24		$	7		$	10		$	9
Unrecognized prior service credit	(32		)	(8		)	(3		)	(2		)	(1		)	(1		)	(2		)	(9		)

	December 31, 2018
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Prefunded pension(a)	$	433		$	214		$	242		$	143		$	96		$	24		$	39		$	41
Noncurrent pension liability(b)	$	69		$	—		$	69		$	—		$	69		$	54		$	46		$	—
Net asset recognized	$	364		$	214		$	173		$	143		$	27		$	(30	)	$	(7	)	$	41
Regulatory assets	$	2,184		$	576		$	796		$	372		$	424		$	100		$	182		$	81
Accumulated other comprehensive (income) loss
Deferred income tax benefit	$	(43	)	$	—		$	(2	)	$	—		$	—		$	—		$	—		$	—
Prior service credit	(4		)	—			—			—			—			—			—			—
Net actuarial loss	126			—			5			—			—			—			—			—
Net amounts recognized in accumulated other comprehensive loss	$	79		$	—		$	3		$	—		$	—		$	—		$	—		$	—
Amounts to be recognized in net periodic pension costs in the next year
Unrecognized net actuarial loss	$	97		$	22		$	37		$	13		$	24		$	3		$	5		$	7
Unrecognized prior service credit	$	(32	)	$	(8	)	$	(3	)	$	(2	)	$	(1	)	$	—		$	(2	)	$	(9	)

(a) Included in Other within Other Noncurrent Assets on the Consolidated Balance Sheets.

(b) Included in Accrued pension and other post-retirement benefit costs on the Consolidated Balance Sheets.

Information for Plans with Accumulated Benefit Obligation in Excess of Plan Assets

	December 31, 2019
	Duke		Duke
	Energy		Energy
(in millions)	Ohio		Indiana
Projected benefit obligation	$	155	$	260
Accumulated benefit obligation	146		252
Fair value of plan assets	79		177

	December 31, 2018
					Duke		Duke		Duke
	Duke		Progress		Energy		Energy		Energy
(in millions)	Energy		Energy		Florida		Ohio		Indiana
Projected benefit obligation	$	679	$	679	$	679	$	123	$	203
Accumulated benefit obligation	651		651		651		115		199
Fair value of plan assets	610		610		610		69		159

Assumptions Used for Pension Benefits Accounting

The discount rate used to determine the current year pension obligation and following year’s pension expense is based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high quality corporate bonds that generate sufficient cash flow to provide for projected benefit payments of the plan. The selected bond portfolio is derived from a universe of non-callable corporate bonds rated Aa quality or higher. After the bond portfolio is selected, a single interest rate is determined that equates the present value of the plan’s projected benefit payments discounted at this rate with the market value of the bonds selected.

The average remaining service period for participants in active plans and life expectancy of participants in inactive plans is 12 years for Duke Energy, Duke Energy Carolinas, Progress Energy and Duke Energy Florida, 13 years for Duke Energy Progress, Duke Energy Indiana and Duke Energy Ohio, and 9 years for Piedmont.

The following tables present the assumptions or range of assumptions used for pension benefit accounting.

	December 31,
	2019				2018				2017
Benefit Obligations
Discount rate				3.30%				4.30%				3.60%
Salary increase	3.50	%	–	4.00%	3.50	%	–	4.00%	3.50	%	–	4.00%
Net Periodic Benefit Cost
Discount rate				4.30%				3.60%				4.10%
Salary increase	3.50	%	–	4.00%	3.50	%	–	4.00%	4.00	%	–	4.50%
Expected long-term rate of return on plan assets				6.85%				6.50%	6.50	%	–	6.75%

Expected Benefit Payments

			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Years ending December 31,
2020	$	643	$	167	$	169	$	89	$	79	$	37	$	50	$	28
2021	653		171		178		95		82		37		50		24
2022	649		177		176		92		84		37		49		22
2023	649		174		182		95		86		36		48		21
2024	638		168		184		96		87		35		48		20
2025-2029	2,851		714		871		419		448		156		220		87

NON-QUALIFIED PENSION PLANS

The accumulated benefit obligation, which equals the projected benefit obligation for non-qualified pension plans, was $318 million for Duke Energy, $15 million for Duke Energy Carolinas, $110 million for Progress Energy, $32 million for Duke Energy Progress, $45 million for Duke Energy Florida, $4 million for Duke Energy Ohio, $3 million for Duke Energy Indiana and $4 million for Piedmont as of December 31, 2019.

Employer contributions, which equal benefits paid for non-qualified pension plans, were $25 million for Duke Energy, $2 million for Duke Energy Carolinas, $9 million for Progress Energy, $3 million for Duke Energy Progress and $3 million for Duke Energy Florida for the year ended December 31, 2019. Employer contributions were not material for Duke Energy Ohio, Duke Energy Indiana or Piedmont for the year ended December 31, 2019.

Net periodic pension costs for non-qualified pension plans were not material for the years ended December 31, 2019, 2018 or 2017.

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. Employees are eligible for these benefits if they have met age and service requirements at retirement, as defined in the plans. The health care benefits include medical, dental and prescription drug coverage and are subject to certain limitations, such as deductibles and copayments.

Duke Energy did not make any pre-funding contributions to its other post-retirement benefit plans during the years ended December 31, 2019, 2018 or 2017.

Components of Net Periodic Other Post-Retirement Benefit Costs

	Year Ended December 31, 2019
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Service cost	$	4		$	1		$	1		$	—		$	1		$	—		$	1		$	—
Interest cost on accumulated post-retirement benefit obligation	30			7			12			7			5			1			3			1
Expected return on plan assets	(12		)	(7		)	—			—			—			—			—			(1		)
Amortization of actuarial loss	4			2			1			—			1			—			4			—
Amortization of prior service credit	(19		)	(5		)	(8		)	(1		)	(7		)	(1		)	(1		)	(2		)
Net periodic post-retirement benefit costs (a)(b)	$	7		$	(2	)	$	6		$	6		$	—		$	—		$	7		$	(2	)

	Year Ended December 31, 2018
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Service cost	$	6		$	1		$	1		$	—		$	1		$	1		$	1		$	1
Interest cost on accumulated post-retirement benefit obligation	28			7			12			6			6			1			3			1
Expected return on plan assets	(13		)	(8		)	—			—			—			—			—			(2		)
Amortization of actuarial loss	6			3			1			1			—			—			4			—
Amortization of prior service credit	(19		)	(5		)	(8		)	(1		)	(7		)	(1		)	(1		)	(2		)
Net periodic post-retirement benefit costs(a)(b)	$	8		$	(2	)	$	6		$	6		$	—		$	1		$	7		$	(2	)

	Year Ended December 31, 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	$	4		$	1		$	—		$	—		$	—		$	—		$	—		$	1
Interest cost on accumulated post-retirement benefit obligation	34			8			13			7			6			1			3			1
Expected return on plan assets	(14		)	(8		)	—			—			—			—			(1		)	(2		)
Amortization of actuarial loss (gain)	10			(2		)	21			12			9			(2		)	(1		)	1
Amortization of prior service credit	(115		)	(10		)	(84		)	(54		)	(30		)	—			(1		)	—
Curtailment credit(c)	(30		)	(4		)	(16		)	—			(16		)	(2		)	(2		)	—
Net periodic post-retirement benefit costs(a)(b)	$	(111	)	$	(15	)	$	(66	)	$	(35	)	$	(31	)	$	(3	)	$	(2	)	$	1

(a) Duke Energy amounts exclude $6 million, $7 million and $7 million for the years ended December 2019, 2018 and 2017, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

(b) Duke Energy Ohio amounts exclude $2 million, $2 million and $2 million for the years ended December 2019, 2018 and 2017, respectively, of regulatory asset amortization resulting from purchase accounting adjustments associated with Duke Energy's merger with Cinergy in April 2006.

(c) Curtailment credit resulted from a reduction in average future service of plan participants due to a plan amendment.

Amounts Recognized in Accumulated Other Comprehensive Income and Regulatory Assets and Liabilities

	Year Ended December 31, 2019
				Duke					Duke			Duke			Duke			Duke
	Duke			Energy		Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas		Energy			Progress			Florida			Ohio			Indiana			Piedmont
Regulatory assets, net increase (decrease)	$	(127	)	$	—	$	(127	)	$	(82	)	$	(45	)	$	—		$	(5	)	$	—
Regulatory liabilities, net increase (decrease)	$	(152	)	$	1	$	(149	)	$	(93	)	$	(56	)	$	(1	)	$	(4	)	$	3
Accumulated other comprehensive (income) loss
Deferred income tax benefit	$	—		$	—	$	—		$	—		$	—		$	—		$	—		$	—
Amortization of prior year actuarial gain	(4		)	—		—			—			—			—			—			—
Net amount recognized in accumulated other comprehensive income	$	(4	)	$	—	$	—		$	—		$	—		$	—		$	—		$	—

	Year Ended December 31, 2018
				Duke					Duke		Duke		Duke		Duke
	Duke			Energy			Progress		Energy		Energy		Energy		Energy
(in millions)	Energy			Carolinas			Energy		Progress		Florida		Ohio		Indiana			Piedmont
Regulatory assets, net increase (decrease)	$	137		$	—		$	133	$	84	$	49	$	—	$	(5	)	$	4
Regulatory liabilities, net increase (decrease)	$	154		$	(6	)	$	149	$	93	$	56	$	2	$	3		$	—
Accumulated other comprehensive (income) loss
Deferred income tax benefit	$	(1	)	$	—		$	—	$	—	$	—	$	—	$	—		$	—
Amortization of prior year prior service credit	1			—			—		—		—		—		—			—
Net amount recognized in accumulated other comprehensive income	$	—		$	—		$	—	$	—	$	—	$	—	$	—		$	—

Reconciliation of Funded Status to Accrued Other Post-Retirement Benefit Costs

	Year Ended December 31, 2019
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Change in Projected Benefit Obligation
Accumulated post-retirement benefit obligation at prior measurement date	$	728		$	174		$	303		$	166		$	137		$	29		$	67		$	30
Service cost	4			1			1			—			1			—			1			—
Interest cost	30			7			12			7			5			1			3			1
Plan participants' contributions	16			3			6			3			2			1			2			—
Actuarial losses	28			9			13			9			5			1			2			—
Transfers	—			—			—			—			—			—			—			—
Benefits paid	(83		)	(19		)	(32		)	(17		)	(15		)	(3		)	(11		)	(1		)
Accumulated post-retirement benefit obligation at measurement date	$	723		$	175		$	303		$	168		$	135		$	29		$	64		$	30
Change in Fair Value of Plan Assets
Plan assets at prior measurement date	$	195		$	115		$	—		$	—		$	—		$	8		$	5		$	29
Actual return on plan assets	32			20			(1		)	—			—			1			—			6
Benefits paid	(83		)	(19		)	(32		)	(17		)	(15		)	(3		)	(11		)	(1		)
Employer contributions	60			11			26			13			13			2			9			—
Plan participants' contributions	16			3			6			3			2			1			2			—
Plan assets at measurement date	$	220		$	130		$	(1	)	$	(1	)	$	—		$	9		$	5		$	34
Funded status of plan	$	(503	)	$	(45	)	$	(304	)	$	(169	)	$	(135	)	$	(20	)	$	(59	)	$	4

	Year Ended December 31, 2018
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Change in Projected Benefit Obligation
Accumulated post-retirement benefit obligation at prior measurement date	$	813		$	189		$	342		$	184		$	156		$	30		$	78		$	32
Service cost	6			1			1			—			1			1			1			1
Interest cost	28			7			12			6			6			1			3			1
Plan participants' contributions	18			3			6			4			3			1			2			—
Actuarial losses (gains)	(51		)	(8		)	(23		)	(9		)	(13		)	(2		)	(5		)	(1		)
Transfers	—			—			—			—			—			—			—			(1		)
Benefits paid	(86		)	(18		)	(35		)	(19		)	(16		)	(2		)	(12		)	(2		)
Accumulated post-retirement benefit obligation at measurement date	$	728		$	174		$	303		$	166		$	137		$	29		$	67		$	30
Change in Fair Value of Plan Assets
Plan assets at prior measurement date	$	225		$	133		$	—		$	—		$	—		$	7		$	11		$	31
Actual return on plan assets	(8		)	(5		)	—			—			—			—			—			(1		)
Benefits paid	(86		)	(18		)	(35		)	(19		)	(16		)	(2		)	(12		)	(2		)
Employer contributions (reimbursements)	46			2			29			15			13			2			4			1
Plan participants' contributions	18			3			6			4			3			1			2			—
Plan assets at measurement date	$	195		$	115		$	—		$	—		$	—		$	8		$	5		$	29
Funded status of plan	$	(533	)	$	(59	)	$	(303	)	$	(166	)	$	(137	)	$	(21	)	$	(62	)	$	(1	)

Amounts Recognized in the Consolidated Balance Sheets

	December 31, 2019
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Current post-retirement liability(a)	$	9		$	—		$	5		$	3		$	2		$	1		$	—		$	—
Noncurrent post-retirement liability(b)	494			45			299			166			133			19			59			(4		)
Total accrued post-retirement liability	$	503		$	45		$	304		$	169		$	135		$	20		$	59		$	(4	)
Regulatory assets	$	135		$	—		$	135		$	82		$	53		$	—		$	36		$	—
Regulatory liabilities	$	149		$	39		$	—		$	—		$	—		$	17		$	63		$	3
Accumulated other comprehensive (income) loss
Deferred income tax expense	$	3		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Prior service credit	(2		)	—			—			—			—			—			—			—
Net actuarial gain	(13		)	—			—			—			—			—			—			—
Net amounts recognized in accumulated other comprehensive income	$	(12	)	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Amounts to be recognized in net periodic pension expense in the next year
Unrecognized net actuarial loss	$	5		$	3		$	1		$	—		$	1		$	—		$	—		$	—
Unrecognized prior service credit	(14		)	(4		)	(3		)	(1		)	(2		)	(1		)	(1		)	(2		)

	December 31, 2018
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
Current post-retirement liability(a)	$	8		$	—		$	5		$	3		$	2		$	2		$	—		$	—
Noncurrent post-retirement liability(b)	525			59			298			163			135			19			62			1
Total accrued post-retirement liability	$	533		$	59		$	303		$	166		$	137		$	21		$	62		$	1
Regulatory assets	$	262		$	—		$	262		$	164		$	98		$	—		$	41		$	—
Regulatory liabilities	$	301		$	38		$	149		$	93		$	56		$	18		$	67		$	—
Accumulated other comprehensive (income) loss
Deferred income tax expense	$	3		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Prior service credit	(2		)	—			—			—			—			—			—			—
Net actuarial gain	(9		)	—			—			—			—			—			—			—
Net amounts recognized in accumulated other comprehensive income	$	(8	)	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Amounts to be recognized in net periodic pension expense in the next year
Unrecognized net actuarial loss (gain)	$	4		$	2		$	1		$	—		$	—		$	—		$	—		$	—
Unrecognized prior service credit	(19		)	(5		)	(7		)	(1		)	(6		)	(1		)	(1		)	(2		)

(a) Included in Other within Current Liabilities on the Consolidated Balance Sheets. 

(b) Included in Accrued pension and other post-retirement benefit costs on the Consolidated Balance Sheets.

Assumptions Used for Other Post-Retirement Benefits Accounting

The discount rate used to determine the current year other post-retirement benefits obligation and following year’s other post-retirement benefits expense is based on a bond selection-settlement portfolio approach. This approach develops a discount rate by selecting a portfolio of high quality corporate bonds that generate sufficient cash flow to provide for projected benefit payments of the plan. The selected bond portfolio is derived from a universe of non-callable corporate bonds rated Aa quality or higher. After the bond portfolio is selected, a single interest rate is determined that equates the present value of the plan’s projected benefit payments discounted at this rate with the market value of the bonds selected.

The average remaining service period of active covered employees is eight years for Duke Energy and Duke Energy Carolinas, seven years for Progress Energy, Duke Energy Florida, and Duke Energy Ohio, and six years for Duke Energy Progress, Duke Energy Indiana, and Piedmont.

The following tables present the assumptions used for other post-retirement benefits accounting.

	December 31,
	2019		2018		2017
Benefit Obligations
Discount rate	3.30	%	4.30	%	3.60	%
Net Periodic Benefit Cost
Discount rate	4.30	%	3.60	%	4.10	%
Expected long-term rate of return on plan assets	6.85	%	6.50	%	6.50	%
Assumed tax rate	23	%	35	%	35	%

Assumed Health Care Cost Trend Rate

	December 31,
	2019		2018
Health care cost trend rate assumed for next year	6.00	%	6.50	%
Rate to which the cost trend is assumed to decline (the ultimate trend rate)	4.75	%	4.75	%
Year that rate reaches ultimate trend	2026		2024

Sensitivity to Changes in Assumed Health Care Cost Trend Rates

	Year Ended December 31, 2019
				Duke						Duke			Duke			Duke			Duke
	Duke			Energy			Progress			Energy			Energy			Energy			Energy
(in millions)	Energy			Carolinas			Energy			Progress			Florida			Ohio			Indiana			Piedmont
1-Percentage Point Increase
Effect on total service and interest costs	$	1		$	—		$	1		$	1		$	—		$	—		$	—		$	—
Effect on post-retirement benefit obligation	22			5			9			5			4			1			2			1
1-Percentage Point Decrease
Effect on total service and interest costs	(1		)	—			(1		)	(1		)	—			—			—			—
Effect on post-retirement benefit obligation	(20		)	(5		)	(8		)	(4		)	(4		)	(1		)	(2		)	(1		)

Expected Benefit Payments

			Duke				Duke		Duke		Duke		Duke
	Duke		Energy		Progress		Energy		Energy		Energy		Energy
(in millions)	Energy		Carolinas		Energy		Progress		Florida		Ohio		Indiana		Piedmont
Years ending December 31,
2020	$	76	$	18	$	29	$	16	$	13	$	4	$	8	$	2
2021	70		17		28		15		13		3		7		2
2022	66		16		27		14		12		3		7		2
2023	63		15		25		14		12		3		6		2
2024	59		15		24		13		11		3		6		2
2025-2029	246		60		101		55		46		11		23		11

PLAN ASSETS

Description and Allocations

Duke Energy Master Retirement Trust

Assets for both the qualified pension and other post-retirement benefits are maintained in the Duke Energy Master Retirement Trust. Approximately 98% of the Duke Energy Master Retirement Trust assets were allocated to qualified pension plans and approximately 2% were allocated to other post-retirement plans (comprised of 401(h) accounts), as of December 31, 2019, and 2018. The investment objective of the Duke Energy Master Retirement Trust is to invest in a diverse portfolio of assets that is expected to generate positive surplus return over time (i.e. asset growth greater than liability growth) subject to a prudent level of portfolio risk, for the purpose of enhancing the security of benefits for plan participants.

As of December 31, 2019, Duke Energy assumes pension and other post-retirement plan assets will generate a long-term rate of return of 6.85%. The expected long-term rate of return was developed using a weighted average calculation of expected returns based primarily on future expected returns across asset classes considering the use of active asset managers, where applicable. The asset allocation targets were set after considering the investment objective and the risk profile. Equity securities are held for their higher expected returns. Debt securities are primarily held to hedge the qualified pension plan liability. Real assets, return seeking fixed income, hedge funds and other global securities are held for diversification. Investments within asset classes are diversified to achieve broad market participation and reduce the impact of individual managers or investments.

Effective January 1, 2019, the target asset allocation for the Duke Energy Retirement Master Trust is 58% liability hedging assets and 42% return-seeking assets. Duke Energy periodically reviews its asset allocation targets, and over time, as the funded status of the benefit plans increase, the level of asset risk relative to plan liabilities may be reduced to better manage Duke Energy's benefit plan liabilities and reduce funded status volatility.

The Duke Energy Master Retirement Trust is authorized to engage in the lending of certain plan assets. Securities lending is an investment management enhancement that utilizes certain existing securities of the Duke Energy Master Retirement Trust to earn additional income. Securities lending involves the loaning of securities to approved parties. In return for the loaned securities, the Duke Energy Master Retirement Trust receives collateral in the form of cash and securities as a safeguard against possible default of any borrower on the return of the loan under terms that permit the Duke Energy Master Retirement Trust to sell the securities. The Duke Energy Master Retirement Trust mitigates credit risk associated with securities lending arrangements by monitoring the fair value of the securities loaned, with additional collateral obtained or refunded as necessary. The fair value of securities on loan was approximately $351 million and $154 million at December 31, 2019, and 2018, respectively. Cash and securities obtained as collateral exceeded the fair value of the securities loaned at December 31, 2019, and 2018, respectively. Securities lending income earned by the Duke Energy Master Retirement Trust was immaterial for the years ended December 31, 2019, 2018 and 2017, respectively.

Qualified pension and other post-retirement benefits for the Subsidiary Registrants are derived from the Duke Energy Master Retirement Trust, as such, each are allocated their proportionate share of the assets discussed below.

The following table includes the target asset allocations by asset class at December 31, 2019, and the actual asset allocations for the Duke Energy Master Retirement Trust.

			Actual Allocation at
	Target		December 31,
	Allocation		2019		2018
U.S. equity securities	—	%	—	%	11	%
Global equity securities	28	%	27	%	18	%
Global private equity securities	1	%	1	%	2	%
Debt securities	58	%	57	%	63	%
Return seeking debt securities	4	%	5	%	—	%
Hedge funds	3	%	3	%	2	%
Real estate and cash	6	%	7	%	2	%
Other global securities	—	%	—	%	2	%
Total	100	%	100	%	100	%

Other post-retirement assets

Duke Energy's other post-retirement assets are comprised of VEBA trusts and 401(h) accounts held within the Duke Energy Master Retirement Trust. Duke Energy's investment objective is to achieve sufficient returns, subject to a prudent level of portfolio risk, for the purpose of promoting the security of plan benefits for participants.  

The following table presents target and actual asset allocations for the VEBA trusts at December 31, 2019.

			Actual Allocation at
	Target		December 31,
	Allocation		2019		2018
U.S. equity securities	33	%	35	%	43	%
Non-U.S. equity securities	7	%	9	%	8	%
Real estate	2	%	2	%	2	%
Debt securities	45	%	37	%	40	%
Cash	13	%	17	%	7	%
Total	100	%	100	%	100	%

Fair Value Measurements

Duke Energy classifies recurring and non-recurring fair value measurements based on the fair value hierarchy as discussed in Note 17.

Valuation methods of the primary fair value measurements disclosed below are as follows:

Investments in equity securities

Investments in equity securities are typically valued at the closing price in the principal active market as of the last business day of the reporting period. Principal active markets for equity prices include published exchanges such as NASDAQ and NYSE. Foreign equity prices are translated from their trading currency using the currency exchange rate in effect at the close of the principal active market. Prices have not been adjusted to reflect after-hours market activity. The majority of investments in equity securities are valued using Level 1 measurements. When the price of an institutional commingled fund is unpublished, it is not categorized in the fair value hierarchy, even though the funds are readily available at the fair value.

Investments in corporate debt securities and U.S. government securities

Most debt investments are valued based on a calculation using interest rate curves and credit spreads applied to the terms of the debt instrument (maturity and coupon interest rate) and consider the counterparty credit rating. Most debt valuations are Level 2 measurements. If the market for a particular fixed-income security is relatively inactive or illiquid, the measurement is Level 3. U.S. Treasury debt is typically Level 2.

Investments in short-term investment funds

Investments in short-term investment funds are valued at the net asset value of units held at year end and are readily redeemable at the measurement date. Investments in short-term investment funds with published prices are valued as Level 1. Investments in short-term investment funds with unpublished prices are valued as Level 2.

Investments in real estate limited partnerships

Investments in real estate limited partnerships are valued by the trustee at each valuation date (monthly). As part of the trustee’s valuation process, properties are externally appraised generally on an annual basis, conducted by reputable, independent appraisal firms, and signed by appraisers that are members of the Appraisal Institute, with the professional designation MAI. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There are three valuation techniques that can be used to value investments in real estate assets: the market, income or cost approach. The appropriateness of each valuation technique depends on the type of asset or business being valued. In addition, the trustee may cause additional appraisals to be performed as warranted by specific asset or market conditions. Property valuations and the salient valuation-sensitive assumptions of each direct investment property are reviewed by the trustee quarterly and values are adjusted if there has been a significant change in circumstances related to the investment property since the last valuation. Value adjustments for interim capital expenditures are only recognized to the extent that the valuation process acknowledges a corresponding increase in fair value. An independent firm is hired to review and approve quarterly direct real estate valuations. Key inputs and assumptions used to determine fair value includes among others, rental revenue and expense amounts and related revenue and expense growth rates, terminal capitalization rates and discount rates. Development investments are valued using cost incurred to date as a primary input until substantive progress is achieved in terms of mitigating construction and leasing risk at which point a discounted cash flow approach is more heavily weighted. Key inputs and assumptions in addition to those noted above used to determine the fair value of development investments include construction costs and the status of construction completion and leasing. Investments in real estate limited partnerships are valued at net asset value of units held at year end and are not readily redeemable at the measurement date. Investments in real estate limited partnerships are not categorized within the fair value hierarchy.

Duke Energy Master Retirement Trust

The following tables provide the fair value measurement amounts for the Duke Energy Master Retirement Trust qualified pension and other post-retirement assets.

	December 31, 2019
	Total Fair									Not
(in millions)	Value		Level 1			Level 2		Level 3		Categorized(b)
Equity securities	$	2,730	$	2,712		$	—	$	—	$	18
Corporate debt securities	3,999		—			3,999		—		—
Short-term investment funds	545		455			90		—		—
Partnership interests	104		—			—		—		104
Hedge funds	206		—			—		—		206
Real estate limited partnerships	—		—			—		—		—
U.S. government securities	1,231		—			1,231		—		—
Guaranteed investment contracts	11		—			—		11		—
Governments bonds – foreign	78		—			78		—		—
Cash	75		75			—		—		—
Net pending transactions and other investments	46		(43		)	89		—		—
Total assets(a)	$	9,025	$	3,199		$	5,487	$	11	$	328

(a) Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana, and Piedmont were allocated approximately 26%, 31%, 15%, 17%, 5%, 7%, and 4%, respectively, of the Duke Energy Master Retirement Trust at December 31, 2019. Accordingly, all amounts included in the table above are allocable to the Subsidiary Registrants using these percentages.

(b) Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy.

	December 31, 2018
	Total Fair										Not
(in millions)	Value			Level 1			Level 2		Level 3		Categorized(b)
Equity securities	$	2,373		$	1,751		$	—	$	—	$	622
Corporate debt securities	4,054			—			4,054		—		—
Short-term investment funds	363			279			84		—		—
Partnership interests	120			—			—		—		120
Hedge funds	226			—			—		—		226
Real estate limited partnerships	144			—			—		—		144
U.S. government securities	961			—			961		—		—
Guaranteed investment contracts	27			—			—		27		—
Governments bonds – foreign	30			—			30		—		—
Cash	28			28			—		—		—
Net pending transactions and other investments	(2		)	(6		)	4		—		—
Total assets(a)	$	8,324		$	2,052		$	5,133	$	27	$	1,112

(a) Duke Energy Carolinas, Progress Energy, Duke Energy Progress, Duke Energy Florida, Duke Energy Ohio, Duke Energy Indiana, and Piedmont were allocated approximately 27%, 31%, 15%, 16%, 5%, 7%, and 4%, respectively, of the Duke Energy Master Retirement Trust and Piedmont's Pension assets at December 31, 2018. Accordingly, all amounts included in the table above are allocable to the Subsidiary Registrants using these percentages.

(b) Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy.

The following table provides a reconciliation of beginning and ending balances of Duke Energy Master Retirement Trust qualified pension and other post-retirement assets at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3).

(in millions)	2019			2018
Balance at January 1	$	27		$	28
Sales	(18		)	(1		)
Total gains and other, net	2			—
Transfer of Level 3 assets to other classifications	—			—
Balance at December 31	$	11		$	27

Other post-retirement assets

The following tables provide the fair value measurement amounts for VEBA trust assets.

	December 31, 2019
	Total Fair
(in millions)	Value		Level 2
Cash and cash equivalents	$	9	$	9
Real estate	1		1
Equity securities	22		22
Debt securities	18		18
Total assets	$	50	$	50

	December 31, 2018
	Total Fair
(in millions)	Value		Level 2
Cash and cash equivalents	$	3	$	3
Real estate	1		1
Equity securities	25		25
Debt securities	20		20
Total assets	$	49	$	49

 

EMPLOYEE SAVINGS PLANS

Retirement Savings Plan

Duke Energy or its affiliates sponsor, and the Subsidiary Registrants participate in, employee savings plans that cover substantially all U.S. employees. Most employees participate in a matching contribution formula where Duke Energy provides a matching contribution generally equal to 100% of employee before-tax and Roth 401(k) contributions of up to 6% of eligible pay per pay period. Dividends on Duke Energy shares held by the savings plans are charged to retained earnings when declared and shares held in the plans are considered outstanding in the calculation of basic and diluted EPS.

For new and rehired employees who are not eligible to participate in Duke Energy’s defined benefit plans, an additional employer contribution of 4% of eligible pay per pay period, which is subject to a three-year vesting schedule, is provided to the employee’s savings plan account. Certain Piedmont employees whose participation in a prior Piedmont defined benefit plan (that was frozen as of December 31, 2017) are eligible for employer transition credit contributions of 3% to 5% of eligible pay per period, for each pay period during the three-year period ending December 31, 2020.

The following table includes pretax employer matching 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
Years ended December 31,
2019	$	214	$	66	$	58	$	38	$	20	$	5	$	11	$	13
2018	213		68		58		40		19		4		10		12
2017	179		61		53		37		16		3		9		7