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Business Segments
 3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Business Segments
BUSINESS SEGMENTS
Duke Energy
Duke Energy's segment structure includes the following segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure and Commercial Renewables. The Electric Utilities and Infrastructure segment includes Duke Energy's regulated electric utilities in the Carolinas, Florida and the Midwest. The Gas Utilities and Infrastructure segment includes Piedmont, Duke Energy's natural gas local distribution companies in Ohio and Kentucky, and Duke Energy's natural gas storage and midstream pipeline investments.
The Commercial Renewables segment is primarily comprised of nonregulated utility-scale wind and solar generation assets located throughout the U.S. On April 24, 2019, Duke Energy executed an agreement to sell a minority interest in a portion of certain renewable assets. The portion of Duke Energy’s commercial renewables energy portfolio to be sold includes 49 percent of 37 operating wind, solar and battery storage assets and 33 percent of 11 operating solar assets across the U.S. The sale will result in pretax proceeds to Duke Energy of $415 million. Duke Energy will retain control of these assets, and, therefore, no gain or loss is expected to be recognized in the Condensed Consolidated Statements of Operations upon closing of the transaction. The sale is subject to customary closing conditions, including approvals from the FERC, the Public Utility Commission of Texas and the Committee on Foreign Investment in the U.S. The transaction is expected to close in the second half of 2019.
The remainder of Duke Energy’s operations is presented as Other, which is primarily comprised of interest expense on holding company debt, unallocated corporate costs, Duke Energy’s wholly owned captive insurance company, Bison, and Duke Energy's interest in NMC.
Business segment information is presented in the following tables. Segment assets presented exclude intercompany assets.
 
Three Months Ended March 31, 2019
 
Electric

 
Gas

 
 
 
Total

 
 
 
 
 
 
 
Utilities and

 
Utilities and

 
Commercial

 
Reportable

 
 
 
 
 
 
(in millions)
Infrastructure

 
Infrastructure

 
Renewables

 
Segments

 
Other

 
Eliminations

 
Total

Unaffiliated revenues
$
5,321

 
$
732

 
$
106

 
$
6,159

 
$
4

 
$
—

 
$
6,163

Intersegment revenues
8

 
24

 
—

 
32

 
17

 
(49
)
 
—

Total revenues
$
5,329

 
$
756

 
$
106

 
$
6,191

 
$
21

 
$
(49
)
 
$
6,163

Segment income (loss)
$
750

 
$
226

 
$
13

 
$
989

 
$
(89
)
 
$
—

 
$
900

Add back noncontrolling interest component
 
 
 
 
 
 
 
 
 
 
 
 
(7
)
Net income
 
 
 
 
 
 
 
 
 
 
 
 
$
893

Segment assets
$
130,406

 
$
12,639

 
$
4,378

 
$
147,423

 
$
3,536

 
$
177

 
$
151,136


 
Three Months Ended March 31, 2018
 
Electric

 
Gas

 
 
 
Total

 
 
 
 
 
 
 
Utilities and

 
Utilities and

 
Commercial

 
Reportable

 
 
 
 
 
 
(in millions)
Infrastructure

 
Infrastructure

 
Renewables

 
Segments

 
Other

 
Eliminations

 
Total

Unaffiliated revenues
$
5,315

 
$
702

 
$
101

 
$
6,118

 
$
17

 
$
—

 
$
6,135

Intersegment revenues
8

 
25

 
—

 
33

 
18

 
(51
)
 
—

Total revenues
$
5,323

 
$
727

 
$
101

 
$
6,151

 
$
35

 
$
(51
)
 
$
6,135

Segment income (loss)(a)(b)(c)
$
750

 
$
116

 
$
20

 
$
886

 
$
(266
)
 
$
—

 
$
620

Add back noncontrolling interest component
 
 
 
 
 
 
 
 
 
 
 
 
2

Net income
 
 
 
 
 
 
 
 
 
 
 
 
$
622


(a)
Electric Utilities and Infrastructure includes regulatory and legislative impairment charges related to rate case orders, settlements or other actions of regulators or legislative bodies. See Note 3 for additional information.
(b)
Gas Utilities and Infrastructure includes an impairment of the investment in Constitution. See Note 3 for additional information.
(c)
Other includes the loss on the sale of Beckjord described below, costs to achieve the Piedmont acquisition and a valuation allowance recorded against the AMT credits.
In February 2018, Duke Energy sold Beckjord, a nonregulated facility retired during 2014, and recorded a pretax loss of $106 million within Losses on Sales of Other Assets and Other, net and $1 million within Operation, maintenance and other on Duke Energy's Condensed Consolidated Statements of Operations for the three months ended March 31, 2018. The sale included the transfer of coal ash basins and other real property and indemnification from any and all potential future claims related to the property, whether arising under environmental laws or otherwise.
Duke Energy Ohio
Duke Energy Ohio has two reportable segments, Electric Utilities and Infrastructure and Gas Utilities and Infrastructure. The remainder of Duke Energy Ohio's operations is presented as Other.
 
Three Months Ended March 31, 2019
 
Electric

 
Gas

 
Total

 
 
 
 
 
 
 
Utilities and

 
Utilities and

 
Reportable

 
 
 
 
 
 
(in millions)
Infrastructure

 
Infrastructure

 
Segments

 
Other

 
Eliminations

 
Total

Total revenues
$
355

 
$
176

 
$
531

 
$
—

 
$
—

 
$
531

Segment income/Net (loss) income
$
36

 
$
35

 
$
71

 
$
(2
)
 
$
—

 
$
69

Segment assets
$
6,058

 
$
3,051

 
$
9,109

 
$
37

 
$
(2
)
 
$
9,144

 
Three Months Ended March 31, 2018
 
Electric

 
Gas

 
Total

 
 
 
 
 
Utilities and

 
Utilities and

 
Reportable

 
 
 
 
(in millions)
Infrastructure

 
Infrastructure

 
Segments

 
Other

 
Total

Total revenues
$
336

 
$
174

 
$
510

 
$
14

 
$
524

Segment income/Net loss(a)
$
33

 
$
34

 
$
67

 
$
(92
)
 
$
(25
)

(a)
Other includes the loss on the sale of Beckjord described above.