The Duke Energy Registrants classify their investments in debt and equity securities as either trading or available-for-sale.

Investments in debt and equity securities are classified as either short-term investments or long-term investments based on management's intent and ability to sell these securities, taking into consideration illiquidity factors in the current markets.

Investments in debt and equity securities held in Grantor Trusts associated with certain deferred compensation plans and certain other investments are classified as trading securities. These investments are reported at fair value in the Condensed Consolidated Balance Sheets. Net realized and unrealized gains and losses are included in earnings each period. The fair value of these investments was $17 million at September 30, 2013 and $33 million at December 31, 2012.

All other investments in debt and equity securities are classified as available-for-sale securities. Available-for-sale securities are also reported at fair value on the Condensed Consolidated Balance Sheets. Unrealized gains and losses are excluded from earnings and reported either as a (i) regulatory asset or liability, or (ii) a component of other comprehensive income until realized.

Duke Energy's available-for-sale securities are primarily comprised of investments held in (i) the NDTF at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, (ii) Grantor Trusts at Duke Energy Indiana, Duke Energy Florida and Duke Energy Progress related to OPEB plans (iii) Duke Energy's captive insurance investment portfolio, (iv) Duke Energy's foreign operations investment portfolio and (v) Duke Energy and Duke Energy Carolinas' auction rate debt securities portfolio.

Duke Energy holds corporate debt securities that were purchased using excess cash from its foreign operations. These investments are classified as Short-term investments on the Condensed Consolidated Balance Sheet and are available for current operations of Duke Energy's foreign business. The fair value of these investments was $118 million as of September 30, 2013 and $333 million as of December 31, 2012.

Duke Energy classifies all other investments in debt and equity securities as long-term, unless otherwise noted.

The investments within the NDTF at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida and the Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana Grantor Trusts (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 gains and losses associated with debt and equity securities within the Investment Trusts are considered other-than-temporary impairments and are recognized immediately. Pursuant to regulatory accounting, substantially all unrealized gains and losses associated with investments within the Investment Trusts are deferred as a regulatory asset or liability. As a result, there is no immediate impact on earnings of the Duke Energy Registrants.

Unrealized gains and losses on all other available-for-sale securities are included in other comprehensive income until realized, unless it is determined the carrying value of an investment is other-than-temporarily impaired. If an other-than-temporary impairment exists, the unrealized loss may be included in earnings based on the criteria discussed below.

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. Criteria used to evaluate whether an impairment associated with equity securities is other-than-temporary includes, but is not limited to,(i) the length of time over which the market value has been lower than the cost basis of the investment, (ii) the percentage decline compared to the cost of the investment, and (iii) management's intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. If a decline in fair value is determined to be other-than-temporary, the investment is written down to its fair value through a charge to earnings.

If the entity does not have an intent to sell a debt security and it is not more likely than not that management will be required to sell the debt security before the recovery of its cost basis, the impairment write-down to fair value would be recorded as a component of other comprehensive income, except for when it is determined that a credit loss exists. In determining whether a credit loss exists, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than the amortized cost basis, (ii) changes in the financial condition of the issuer of the security, or in the case of an asset backed security, the financial condition of the underlying loan obligors, (iii) consideration of underlying collateral and guarantees of amounts by government entities, (iv) ability of the issuer of the security to make scheduled interest or principal payments, and (v) any changes to the rating of the security by rating agencies. If a credit loss exists, the amount of impairment write-down to fair value is split between credit loss and other factors. The amount related to credit loss is recognized in earnings. The amount related to other factors is recognized in other comprehensive income. There were no credit losses as of September 30, 2013 and December 31, 2012. For the Duke Energy Registrants, there were no other-than-temporary impairments for debt or equity securities as of September 30, 2013 and December 31, 2012. Accordingly, all changes in the market value of investments other than those held in the Investment Trusts, which receive regulatory accounting as discussed above, were reflected as a component of other comprehensive income in 2013 and 2012.

See Note 10 for additional information related to fair value measurements for investments in auction rate debt securities.

DUKE ENERGY

The following table presents the estimated fair value of short-term and long-term investments for Duke Energy. For investments held within the NDTF and investments within Grantor Trusts, unrealized holding gains and losses are recognized immediately and recorded as Regulatory assets or Regulatory liabilities on the Condensed Consolidated Balance Sheets.

		September 30, 2013								December 31, 2012
(in millions)		Gross Unrealized Holding Gains			Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Gains			Gross Unrealized Holding Losses			Estimated Fair Value
NDTF
Cash and cash equivalents			$	―		$	―	$	111		$	―		$	―	$	105
Equity securities				1,560			13		3,280			1,132			19		2,837
Corporate debt securities				9			6		323			21			1		338
Municipal bonds				5			7		213			12			1		194
U.S. government bonds				14			8		712			24			1		625
Other debt securities				17			4		167			10			1		164
Total NDTF				1,605			38		4,806			1,199			23		4,263
Other Investments
Cash and cash equivalents				―			―		21			―			―		17
Equity securities				22			―		83			10			―		63
Corporate debt securities				1			2		178			2			―		381
Municipal bonds				2			2		80			4			1		70
U.S. government bonds				―			―		38			―			―		23
Other debt securities				―			1		92			1			―		86
Auction rate securities				―			7		25			―			6		29
Total Other Investments^(a)				25			12		517			17			7		669
Total Investments			$	1,630		$	50	$	5,323		$	1,216		$	30	$	4,932

(a)	These amounts are recorded in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

The table below summarizes the maturity date for debt securities held by Duke Energy. The table below excludes auction rate securities based on the stated maturity date. See Note 10 for information about fair value measurements related to investments in auction rate debt securities.

(in millions)	September 30, 2013
Due in one year or less		$	185
Due after one through five years			394
Due after five through 10 years			434
Due after 10 years			790
Total		$	1,803

Realized gains and losses, which were determined on a specific identification basis, from sales of Duke Energy's available-for-sale securities were as follows.

	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)			2013	2012				2013	2012
Realized gains		$	72	$	30		$	135	$	80
Realized losses			16		12			38		14

DUKE ENERGY CAROLINAS

The following table presents the estimated fair value of short-term and long-term investments for Duke Energy Carolinas. For investments held within the NDTF, unrealized holding gains and losses are recognized immediately and recorded as Regulatory assets or Regulatory liabilities on the Condensed Consolidated Balance Sheets.

		September 30, 2013								December 31, 2012
(in millions)		Gross Unrealized Holding Gains			Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Gains			Gross Unrealized Holding Losses			Estimated Fair Value
NDTF
Cash and cash equivalents			$	―		$	―	$	46		$	―		$	―	$	40
Equity securities				828			5		1,790			600			5		1,592
Corporate debt securities				4			5		236			11			1		250
Municipal bonds				―			1		52			2			―		40
U.S. government bonds				5			4		396			10			―		304
Other debt securities				17			4		147			9			2		135
Total NDTF				854			19		2,667			632			8		2,361
Other Investments
Auction rate securities				―			1		3			―			1		3
Total Other Investments^(a)				―			1		3			―			1		3
Total Investments			$	854		$	20	$	2,670		$	632		$	9	$	2,364

(a)	These amounts are recorded in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

The table below summarizes the maturity date for debt securities held by Duke Energy Carolinas. The table below excludes auction rate securities based on the stated maturity date. See Note 10 for information about fair value measurements related to investments in auction rate debt securities.

(in millions)	September 30, 2013
Due in one year or less		$	23
Due after one through five years			175
Due after five through 10 years			223
Due after 10 years			410
Total		$	831

Realized gains and losses, which were determined on a specific identification basis, from sales of Duke Energy Carolinas' available-for-sale securities were as follows.

	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)			2013	2012				2013	2012
Realized gains		$	49	$	19		$	95	$	65
Realized losses			1		5			11		7

PROGRESS ENERGY

The following table presents the estimated fair value of short-term and long-term investments for Progress Energy. For investments held within the NDTF and investments within Grantor Trusts, unrealized holding gains and losses are recognized immediately and recorded as Regulatory assets or Regulatory liabilities on the Condensed Consolidated Balance Sheets.

		September 30, 2013								December 31, 2012
(in millions)		Gross Unrealized Holding Gains			Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Gains			Gross Unrealized Holding Losses			Estimated Fair Value
NDTF
Cash and cash equivalents			$	―		$	―	$	65		$	―		$	―	$	65
Equity securities				732			8		1,490			532			14		1,245
Corporate debt securities				5			1		87			9			―		89
Municipal bonds				5			6		161			11			1		154
U.S. government bonds				9			4		316			14			―		321
Other debt securities				―			―		20			1			―		28
Total NDTF				751			19		2,139			567			15		1,902
Other Investments
Cash and cash equivalents				―			―		21			―			―		17
Municipal bonds				1			1		36			3			―		40
Total Other Investments^(a)				1			1		57			3			―		57
Total Investments			$	752		$	20	$	2,196		$	570		$	15	$	1,959

(a)	These amounts are recorded in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

Realized gains and losses, which were determined on a specific identification basis, from sales of Progress Energy's available-for-sale securities were as follows.

	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)			2013	2012				2013	2012
Realized gains		$	22	$	8		$	37	$	23
Realized losses			11		6			20		12

DUKE ENERGY PROGRESS

The following table presents the estimated fair value of short-term and long-term investments for Duke Energy Progress. For investments held within the NDTF and investments within Grantor Trusts, unrealized holding gains and losses are recognized immediately and recorded as Regulatory assets or Regulatory liabilities on the Condensed Consolidated Balance Sheets.

		September 30, 2013								December 31, 2012
(in millions)		Gross Unrealized Holding Gains			Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Gains			Gross Unrealized Holding Losses			Estimated Fair Value
NDTF
Cash and cash equivalents			$	―		$	―	$	30		$	―		$	―	$	55
Equity securities				472			7		985			337			11		811
Corporate debt securities				5			1		83			8			―		78
Municipal bonds				2			4		103			4			―		80
U.S. government bonds				8			3		225			13			―		241
Other debt securities				―			―		9			1			―		10
Total NDTF				487			15		1,435			363			11		1,275
Other Investments
Cash and cash equivalents				―			―		2			―			―		3
Total Other Investments^(a)				―			―		2			―			―		3
Total Investments			$	487		$	15	$	1,437		$	363		$	11	$	1,278

(a)	These amounts are recorded in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.

Realized gains and losses, which were determined on a specific identification basis, from sales of Duke Energy Progress' available-for-sale securities were as follows.

	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)			2013	2012				2013	2012
Realized gains		$	7	$	4		$	15	$	14
Realized losses			2		2			6		5

DUKE ENERGY FLORIDA

The following table presents the estimated fair value of short-term and long-term investments for Duke Energy Florida. For investments held within the NDTF and investments within Grantor Trusts, unrealized holding gains and losses are recognized immediately and recorded as Regulatory assets or Regulatory liabilities on the Condensed Balance Sheets.

		September 30, 2013								December 31, 2012
(in millions)		Gross Unrealized Holding Gains			Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Gains			Gross Unrealized Holding Losses			Estimated Fair Value
NDTF
Cash and cash equivalents			$	―		$	―	$	35		$	―		$	―	$	10
Equity securities				260			1		505			194			4		434
Corporate debt securities				―			―		4			1			―		11
Municipal bonds				3			2		58			7			―		74
U.S. government bonds				1			1		91			1			―		80
Other debt securities				―			―		11			1			―		18
Total NDTF				264			4		704			204			4		627
Other Investments
Cash and cash equivalents				―			―		4			―			―		1
Municipal bonds				1			1		37			3			―		40
Total Other Investments^(a)				1			1		41			3			―		41
Total Investments			$	265		$	5	$	745		$	207		$	4	$	668

(a)	These amounts are recorded in Other within Investments and Other Assets on the Condensed Balance Sheets.

Realized gains and losses, which were determined on a specific identification basis, from sales of Duke Energy Florida's available-for-sale securities were as follows.

	Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)			2013	2012				2013		2012
Realized gains		$	14	$	4		$	22	$	9
Realized losses			9		4			13		7

DUKE ENERGY INDIANA

The following table presents the estimated fair value of short-term and long-term investments for Duke Energy Indiana. For investments held within Grantor Trusts, unrealized holding gains and losses on these investments are recognized immediately and recorded as Regulatory assets or Regulatory liabilities on the Condensed Consolidated Balance Sheets.

		September 30, 2013								December 31, 2012
(in millions)		Gross Unrealized Holding Gains			Gross Unrealized Holding Losses			Estimated Fair Value		Gross Unrealized Holding Gains			Gross Unrealized Holding Losses			Estimated Fair Value
Other Investments
Equity securities			$	19		$	―	$	60		$	9		$	―	$	50
Municipal bonds				―			1		28			1			―		28
Total Other Investments^(a)				19			1		88			10			―		78
Total Investments			$	19		$	1	$	88		$	10		$	―	$	78

(a)	These amounts are recorded in Other within Investments and Other Assets on the Condensed Consolidated Balance Sheets.