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Investments in Debt and Equity Securities | 9 Months Ended
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Sep. 30, 2014
Investments, Debt and Equity Securities [Abstract] |
Investments In Debt And Equity Securities | INVESTMENTS IN DEBT AND EQUITY SECURITIES The Duke Energy Registrants classify their investments in debt and equity securities as either trading or available-for-sale. TRADING SECURITIES 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. The fair value of these investments was $7 million at September 30, 2014 and $18 million at December 31, 2013. AVAILABLE-FOR-SALE SECURITIES All other investments in debt and equity securities are classified as available-for-sale securities. Duke Energy’s available-for-sale securities are primarily comprised of investments held in (i) the Nuclear Decommissioning Trust Fund (NDTF) at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, (ii) grantor trusts at Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana related to OPEB plans, (iii) Duke Energy’s captive insurance investment portfolio, and (iv) Duke Energy’s foreign operations investment portfolio. Duke Energy holds corporate debt securities that were purchased using excess cash from its foreign operations. These investments are either classified as Cash and cash equivalents or Short-Term investments on the Condensed Consolidated Balance Sheet based on maturity date and are available for current operations of Duke Energy’s foreign business. The fair value of these investments classified as Short-Term investments was $44 million as of December 31, 2013. Duke Energy classifies all other investments in debt and equity securities as long-term, unless otherwise noted. Investment Trusts 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 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 realized and 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. Other Available-for-Sale Securities 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 is 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 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 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 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, 2014 and December 31, 2013. There were no other-than-temporary impairments for debt or equity securities as of September 30, 2014 and December 31, 2013. DUKE ENERGY The following table presents the estimated fair value of investments in available-for-sale securities.
| September 30, 2014 |  | December 31, 2013
(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 | $ | — |  |  | $ | — |  |  | $ | 74 |  |  | $ | — |  |  | $ | — |  |  | $ | 110 |
Equity securities | 1,943 |  |  | 28 |  |  | 3,825 |  |  | 1,813 |  |  | 10 |  |  | 3,579 |
Corporate debt securities | 13 |  |  | 3 |  |  | 493 |  |  | 8 |  |  | 6 |  |  | 400 |
Municipal bonds | 5 |  |  | 1 |  |  | 132 |  |  | 2 |  |  | 6 |  |  | 160 |
U.S. government bonds | 12 |  |  | 4 |  |  | 713 |  |  | 7 |  |  | 12 |  |  | 730 |
Other debt securities | — |  |  | 1 |  |  | 137 |  |  | 22 |  |  | 2 |  |  | 154 |
Total NDTF | $ | 1,973 |  |  | $ | 37 |  |  | $ | 5,374 |  |  | $ | 1,852 |  |  | $ | 36 |  |  | $ | 5,133 |
Other Investments |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 16 |  |  | $ | — |  |  | $ | — |  |  | $ | 21 |
Equity securities | 32 |  |  | — |  |  | 95 |  |  | 29 |  |  | — |  |  | 91 |
Corporate debt securities | 2 |  |  | — |  |  | 68 |  |  | 1 |  |  | 1 |  |  | 99 |
Municipal bonds | 3 |  |  | — |  |  | 82 |  |  | 2 |  |  | 2 |  |  | 79 |
U.S. government bonds | — |  |  | — |  |  | 16 |  |  | — |  |  | — |  |  | 17 |
Other debt securities | 1 |  |  | 5 |  |  | 96 |  |  | — |  |  | 8 |  |  | 111 |
Total Other Investments(a) | $ | 38 |  |  | $ | 5 |  |  | $ | 373 |  |  | $ | 32 |  |  | $ | 11 |  |  | $ | 418 |
Total Investments | $ | 2,011 |  |  | $ | 42 |  |  | $ | 5,747 |  |  | $ | 1,884 |  |  | $ | 47 |  |  | $ | 5,551 |
(a) These amounts are recorded in Other with Investments and Other Assets on the Condensed Consolidated Balance Sheets. The table below summarizes the maturity date for debt securities.
(in millions) | September 30, 2014 |
Due in one year or less | $ | 33 |
Due after one through five years | 452 |
Due after five through 10 years | 457 |
Due after 10 years | 795 |
Total | $ | 1,737 |
Realized gains and losses, which were determined on a specific identification basis, from sales of available-for-sale securities were as follows.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Realized gains | $ | 28 |  |  | $ | 72 |  |  | $ | 90 |  |  | $ | 135 |
Realized losses | 51 |  |  | 16 |  |  | 57 |  |  | 38 |
DUKE ENERGY CAROLINAS The following table presents the estimated fair value of investments in available-for-sale securities.
| September 30, 2014 |  | December 31, 2013
(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 | $ | — |  |  | $ | — |  |  | $ | 39 |  |  | $ | — |  |  | $ | — |  |  | $ | 42 |
Equity securities | 1,046 |  |  | 17 |  |  | 2,124 |  |  | 974 |  |  | 6 |  |  | 1,964 |
Corporate debt securities | 7 |  |  | 3 |  |  | 345 |  |  | 5 |  |  | 5 |  |  | 274 |
Municipal bonds | 1 |  |  | — |  |  | 22 |  |  | — |  |  | 2 |  |  | 54 |
U.S. government bonds | 4 |  |  | 2 |  |  | 317 |  |  | 3 |  |  | 7 |  |  | 354 |
Other debt securities | — |  |  | 1 |  |  | 122 |  |  | 22 |  |  | 2 |  |  | 146 |
Total NDTF | $ | 1,058 |  |  | $ | 23 |  |  | $ | 2,969 |  |  | $ | 1,004 |  |  | $ | 22 |  |  | $ | 2,834 |
Other Investments |  |  |  |  |  |  |  |  |  |  |
Other debt securities | $ | — |  |  | $ | 1 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 3 |
Total Other Investments(a) | $ | — |  |  | $ | 1 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 3 |
Total Investments | $ | 1,058 |  |  | $ | 24 |  |  | $ | 2,972 |  |  | $ | 1,004 |  |  | $ | 23 |  |  | $ | 2,837 |
(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.
(in millions) | September 30, 2014 |
Due in one year or less | $ | 2 |
Due after one through five years | 171 |
Due after five through 10 years | 256 |
Due after 10 years | 380 |
Total | $ | 809 |
Realized gains and losses, which were determined on a specific identification basis, from sales of available-for-sale securities were as follows.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Realized gains | $ | 20 |  |  | $ | 49 |  |  | $ | 72 |  |  | $ | 95 |
Realized losses | 48 |  |  | 1 |  |  | 50 |  |  | 11 |
PROGRESS ENERGY The following table presents the estimated fair value investments in available-for-sale securities.
| September 30, 2014 |  | December 31, 2013
(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 |  |  | $ | — |  |  | $ | — |  |  | $ | 68 |
Equity securities | 897 |  |  | 11 |  |  | 1,701 |  |  | 839 |  |  | 4 |  |  | 1,615 |
Corporate debt securities | 6 |  |  | — |  |  | 148 |  |  | 3 |  |  | 1 |  |  | 126 |
Municipal bonds | 4 |  |  | 1 |  |  | 110 |  |  | 2 |  |  | 4 |  |  | 106 |
U.S. government bonds | 8 |  |  | 2 |  |  | 396 |  |  | 4 |  |  | 5 |  |  | 376 |
Other debt securities | — |  |  | — |  |  | 15 |  |  | — |  |  | — |  |  | 8 |
Total NDTF | $ | 915 |  |  | $ | 14 |  |  | $ | 2,405 |  |  | $ | 848 |  |  | $ | 14 |  |  | $ | 2,299 |
Other Investments |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 15 |  |  | $ | — |  |  | $ | — |  |  | $ | 20 |
Municipal bonds | 3 |  |  | — |  |  | 43 |  |  | 1 |  |  | — |  |  | 39 |
Total Other Investments(a) | $ | 3 |  |  | $ | — |  |  | $ | 58 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 59 |
Total Investments | $ | 918 |  |  | $ | 14 |  |  | $ | 2,463 |  |  | $ | 849 |  |  | $ | 14 |  |  | $ | 2,358 |
(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.
(in millions) | September 30, 2014 |
Due in one year or less | $ | 21 |
Due after one through five years | 218 |
Due after five through 10 years | 145 |
Due after 10 years | 328 |
Total | $ | 712 |
Realized gains and losses, which were determined on a specific identification basis, from sales of available-for-sale securities were as follows.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Realized gains | $ | 8 |  |  | $ | 22 |  |  | $ | 17 |  |  | $ | 37 |
Realized losses | 3 |  |  | 11 |  |  | 6 |  |  | 20 |
DUKE ENERGY PROGRESS The following table presents the estimated fair value of investments in available-for-sale securities.
| September 30, 2014 |  | December 31, 2013
(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 | $ | — |  |  | $ | — |  |  | $ | 28 |  |  | $ | — |  |  | $ | — |  |  | $ | 48 |
Equity securities | 574 |  |  | 7 |  |  | 1,127 |  |  | 535 |  |  | 3 |  |  | 1,069 |
Corporate debt securities | 4 |  |  | — |  |  | 95 |  |  | 3 |  |  | 1 |  |  | 80 |
Municipal bonds | 4 |  |  | 1 |  |  | 108 |  |  | 2 |  |  | 4 |  |  | 104 |
U.S. government bonds | 6 |  |  | 2 |  |  | 257 |  |  | 4 |  |  | 3 |  |  | 232 |
Other debt securities | — |  |  | — |  |  | 8 |  |  | — |  |  | — |  |  | 5 |
Total NDTF | $ | 588 |  |  | $ | 10 |  |  | $ | 1,623 |  |  | $ | 544 |  |  | $ | 11 |  |  | $ | 1,538 |
Other Investments |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |
Total Other Investments(a) | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |
Total Investments | $ | 588 |  |  | $ | 10 |  |  | $ | 1,625 |  |  | $ | 544 |  |  | $ | 11 |  |  | $ | 1,540 |
(a) These amounts are recorded in Other with Investments and Other Assets on the Condensed Consolidated Balance Sheets. The table below summarizes the maturity date for debt securities.
(in millions) | September 30, 2014 |
Due in one year or less | $ | 10 |
Due after one through five years | 147 |
Due after five through 10 years | 94 |
Due after 10 years | 217 |
Total | $ | 468 |
Realized gains and losses, which were determined on a specific identification basis, from sales of available-for-sale securities were as follows.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Realized gains | $ | 4 |  |  | $ | 7 |  |  | $ | 11 |  |  | $ | 15 |
Realized losses | 2 |  |  | 2 |  |  | 4 |  |  | 6 |
DUKE ENERGY FLORIDA The following table presents the estimated fair value of investments in available-for-sale securities.
| September 30, 2014 |  | December 31, 2013
(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 | $ | — |  |  | $ | — |  |  | $ | 7 |  |  | $ | — |  |  | $ | — |  |  | $ | 20 |
Equity securities | 323 |  |  | 4 |  |  | 574 |  |  | 304 |  |  | 1 |  |  | 546 |
Corporate debt securities | 2 |  |  | — |  |  | 53 |  |  | — |  |  | — |  |  | 46 |
Municipal bonds | — |  |  | — |  |  | 2 |  |  | — |  |  | — |  |  | 2 |
U.S. government bonds | 2 |  |  | — |  |  | 139 |  |  | — |  |  | 2 |  |  | 144 |
Other debt securities | — |  |  | — |  |  | 7 |  |  | — |  |  | — |  |  | 3 |
Total NDTF | $ | 327 |  |  | $ | 4 |  |  | $ | 782 |  |  | $ | 304 |  |  | $ | 3 |  |  | $ | 761 |
Other Investments |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3 |
Municipal bonds | 3 |  |  | — |  |  | 43 |  |  | 1 |  |  | — |  |  | 39 |
Total Other Investments(a) | $ | 3 |  |  | $ | — |  |  | $ | 43 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 42 |
Total Investments | $ | 330 |  |  | $ | 4 |  |  | $ | 825 |  |  | $ | 305 |  |  | $ | 3 |  |  | $ | 803 |
(a) These amounts are recorded in Other with Investments and Other Assets on the Condensed Consolidated Balance Sheets. The table below summarizes the maturity date for debt securities.
(in millions) | September 30, 2014 |
Due in one year or less | $ | 11 |
Due after one through five years | 71 |
Due after five through 10 years | 51 |
Due after 10 years | 111 |
Total | $ | 244 |
Realized gains and losses, which were determined on a specific identification basis, from sales of available-for-sale securities were as follows.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Realized gains | $ | 3 |  |  | $ | 14 |  |  | $ | 5 |  |  | $ | 22 |
Realized losses | 1 |  |  | 9 |  |  | 2 |  |  | 13 |
DUKE ENERGY INDIANA The following table presents the estimated fair value of investments in available-for-sale securities.
| September 30, 2014 |  | December 31, 2013
(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 |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
Equity securities | 26 |  |  | — |  |  | 68 |  |  | 24 |  |  | — |  |  | 65 |
Municipal bonds | — |  |  | — |  |  | 30 |  |  | — |  |  | 1 |  |  | 28 |
Total Other Investments(a) | $ | 26 |  |  | $ | — |  |  | $ | 99 |  |  | $ | 24 |  |  | $ | 1 |  |  | $ | 94 |
Total Investments | $ | 26 |  |  | $ | — |  |  | $ | 99 |  |  | $ | 24 |  |  | $ | 1 |  |  | $ | 94 |
(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.
(in millions) | September 30, 2014 |
Due in one year or less | $ | 1 |
Due after one through five years | 18 |
Due after five through 10 years | 8 |
Due after 10 years | 3 |
Total | $ | 30 |
Realized gains and losses, which were determined on a specific identification basis, from sales of available-for-sale securities were insignificant for the three and nine months ended September 30, 2014 and 2013.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27232-111563 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27405-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 + Details
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