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Organization and Basis of Presentation | 3 Months Ended
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Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Organization and Basis of Presentation | Index to Combined Notes to Condensed Consolidated Financial Statements The unaudited notes to the Condensed Consolidated Financial Statements that follow are a combined presentation. The following list indicates the registrants to which the footnotes apply.
| Applicable Notes
Registrant | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8 |  | 9 |  | 10 |  | 11 |  | 12 |  | 13 |  | 14 |  | 15 |  | 16 |  | 17 |  | 18
Duke Energy | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  |  |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  | •
Duke Energy Carolinas | • |  | • |  | • |  | • |  | • |  | • |  | • |  |  |  | • |  | • |  | • |  | • |  | • |  | • |  |  |  | • |  | • |  | •
Progress Energy | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  |  |  | • |  | • |  | •
Duke Energy Progress | • |  | • |  | • |  | • |  | • |  | • |  | • |  |  |  | • |  | • |  | • |  | • |  | • |  | • |  |  |  | • |  | • |  | •
Duke Energy Florida | • |  | • |  | • |  | • |  | • |  | • |  | • |  |  |  | • |  | • |  | • |  | • |  | • |  | • |  |  |  | • |  | • |  | •
Duke Energy Ohio | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  |  |  | • |  | • |  | • |  |  |  | • |  | • |  | •
Duke Energy Indiana | • |  | • |  | • |  | • |  | • |  | • |  | • |  |  |  | • |  | • |  | • |  | • |  | • |  | • |  |  |  | • |  | • |  | •
Piedmont | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  | • |  |  |  | • |  |  |  | • |  |  |  | • |  | • |  | •
Tables within the notes may not sum across due to (i) Progress Energy's consolidation of Duke Energy Progress, Duke Energy Florida and other subsidiaries that are not registrants and (ii) subsidiaries that are not registrants but included in the consolidated Duke Energy balances. ORGANIZATION AND BASIS OF PRESENTATION BASIS OF PRESENTATION These Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these Condensed Consolidated Financial Statements do not include all information and notes required by GAAP for annual financial statements and should be read in conjunction with the Consolidated Financial Statements in the Duke Energy Registrants’ combined Annual Report on Form 10-K for the year ended December 31, 2018. The information in these combined notes relates to each of the Duke Energy Registrants as noted in the Index to Combined Notes to Condensed Consolidated Financial Statements. However, none of the registrants make any representations as to information related solely to Duke Energy or the subsidiaries of Duke Energy other than itself. These Condensed Consolidated Financial Statements, in the opinion of the respective companies’ management, reflect all normal recurring adjustments necessary to fairly present the financial position and results of operations of each of the Duke Energy Registrants. Amounts reported in Duke Energy’s interim Condensed Consolidated Statements of Operations and each of the Subsidiary Registrants’ interim Condensed Consolidated Statements of Operations and Comprehensive Income are not necessarily indicative of amounts expected for the respective annual periods due to effects of seasonal temperature variations on energy consumption, regulatory rulings, timing of maintenance on electric generating units, changes in mark-to-market valuations, changing commodity prices and other factors. In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. BASIS OF CONSOLIDATION These Condensed Consolidated Financial Statements include, after eliminating intercompany transactions and balances, the accounts of the Duke Energy Registrants and subsidiaries or VIEs where the respective Duke Energy Registrants have control. See Note 13 for additional information on VIEs. These Condensed Consolidated Financial Statements also reflect the Duke Energy Registrants’ proportionate share of certain jointly owned generation and transmission facilities. CASH, CASH EQUIVALENTS AND RESTRICTED CASH Duke Energy, Progress Energy and Duke Energy Florida have restricted cash balances related primarily to collateral assets, escrow deposits and VIEs. See Note 13 for additional information. Restricted cash amounts are included in Other within Current Assets and Other Noncurrent Assets on the Condensed Consolidated Balance Sheets. The following table presents the components of cash, cash equivalents and restricted cash included in the Condensed Consolidated Balance Sheets.
| March 31, 2019 |  | December 31, 2018
|  |  | Duke |  |  |  |  | Duke |
| Duke |  | Progress |  | Energy |  |  | Duke |  | Progress |  | Energy |
| Energy |  | Energy |  | Florida |  |  | Energy |  | Energy |  | Florida |
Current Assets |  |  |  |  |  |  |
Cash and cash equivalents | $ | 377 |  | $ | 45 |  | $ | 8 |  |  | $ | 442 |  | $ | 67 |  | $ | 36 |
Other | 134 |  | 12 |  | 12 |  |  | 141 |  | 39 |  | 39 |
Other Noncurrent Assets |  |  |  |  |  |  |
Other | 39 |  | 38 |  | — |  |  | 8 |  | 6 |  | — |
Total cash, cash equivalents and restricted cash | $ | 550 |  | $ | 95 |  | $ | 20 |  |  | $ | 591 |  | $ | 112 |  | $ | 75 |
INVENTORY Provisions for inventory write-offs were not material at March 31, 2019, and December 31, 2018. The components of inventory are presented in the tables below.
| March 31, 2019
|  |  | Duke |  |  |  |  | Duke |  |  | Duke |  |  | Duke |  |  | Duke |  |  |
| Duke |  |  | Energy |  |  | Progress |  |  | Energy |  |  | Energy |  |  | Energy |  |  | Energy |  |  |
(in millions) | Energy |  |  | Carolinas |  |  | Energy |  |  | Progress |  |  | Florida |  |  | Ohio |  |  | Indiana |  |  | Piedmont |
Materials and supplies | $ | 2,231 |  |  | $ | 738 |  |  | $ | 1,033 |  |  | $ | 720 |  |  | $ | 313 |  |  | $ | 79 |  |  | $ | 321 |  |  | $ | 2 |
Coal | 572 |  |  | 228 |  |  | 218 |  |  | 127 |  |  | 91 |  |  | 13 |  |  | 113 |  |  | — |
Natural gas, oil and other fuel | 299 |  |  | 41 |  |  | 213 |  |  | 112 |  |  | 101 |  |  | 19 |  |  | 1 |  |  | 23 |
Total inventory | $ | 3,102 |  |  | $ | 1,007 |  |  | $ | 1,464 |  |  | $ | 959 |  |  | $ | 505 |  |  | $ | 111 |  |  | $ | 435 |  |  | $ | 25 |
| 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 |
Materials and supplies | $ | 2,238 |  |  | $ | 731 |  |  | $ | 1,049 |  |  | $ | 734 |  |  | $ | 315 |  |  | $ | 84 |  |  | $ | 312 |  |  | $ | 2 |
Coal | 491 |  |  | 175 |  |  | 192 |  |  | 106 |  |  | 86 |  |  | 14 |  |  | 109 |  |  | — |
Natural gas, oil and other fuel | 355 |  |  | 42 |  |  | 218 |  |  | 114 |  |  | 103 |  |  | 28 |  |  | 1 |  |  | 68 |
Total inventory | $ | 3,084 |  |  | $ | 948 |  |  | $ | 1,459 |  |  | $ | 954 |  |  | $ | 504 |  |  | $ | 126 |  |  | $ | 422 |  |  | $ | 70 |
NEW ACCOUNTING STANDARDS Except as noted below, the new accounting standards adopted for 2018 and 2019 had no material impact on the presentation or results of operations, cash flows or financial position of the Duke Energy Registrants. Leases. In February 2016, the FASB issued revised accounting guidance for leases. The core principle of this guidance is that a lessee should recognize the assets and liabilities that arise from leases on the balance sheet. This resulted in a material impact on the presentation for the statement of financial position of the Duke Energy Registrants for the period ended March 31, 2019, and an immaterial impact to the Duke Energy results of operations and cash flows for the three months ended March 31, 2019. Duke Energy elected the modified retrospective method of adoption effective January 1, 2019. Under the modified retrospective method of adoption, prior year reported results are not restated. For adoption, Duke Energy has elected to apply the following practical expedients:
Practical Expedient | Description
Package of transition practical expedients (for leases commenced prior to adoption date and must be adopted as a package) | Do not need to 1) reassess whether any expired or existing contracts are/or contain leases, 2) reassess the lease classification for any expired or existing leases and 3) reassess initial direct costs for any existing leases.
Short-term lease expedient (elect by class of underlying asset) | Elect as an accounting policy to not apply the recognition requirements to short-term leases by asset class.
Lease and non-lease components (elect by class of underlying asset) | Elect as an accounting policy to not separate non-lease components from lease components and instead account for each lease and associated non-lease component as a single lease component by asset class.
Hindsight expedient (when determining lease term) | Elect to use hindsight to determine the lease term.
Existing and expired land easements not previously accounted for as leases | Elect to not evaluate existing or expired easements under the new guidance and carry forward current accounting treatment.
Comparative reporting requirements for initial adoption | Elect to apply transition requirements at adoption date, recognize cumulative effect adjustment to retained earnings in period of adoption and not apply the new requirements to comparative periods, including disclosures.
Lessor expedient (elect by class of underlying asset) | Elect as an accounting policy to aggregate non-lease components with the related lease component when specified conditions are met by asset class. Account for the combined component based on its predominant characteristic (revenue or operating lease).
Duke Energy evaluated the financial statement impact of adopting the standard and monitored industry implementation issues. Under agreements considered leases, where Duke Energy is the lessee, for the use of certain aircraft, space on communication towers, industrial equipment, fleet vehicles, fuel transportation (barges and railcars), land, office space and PPAs are now recognized on the balance sheet. The Duke Energy Registrants did not have a material change to the financial statements from the adoption of the new standard for contracts where it is the lessor. See Note 5 for further information. No new accounting standards that have been issued but not yet adopted are expected to have a material impact on the Duke Energy Registrants as of March 31, 2019.

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- Definition The entire disclosure for the general note to the financial statements for the reporting entity which may include, descriptions of the basis of presentation, business description, significant accounting policies, consolidations, reclassifications, new pronouncements not yet adopted and changes in accounting principles. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -URI http://asc.fasb.org/topic&trid=2197479 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -URI http://asc.fasb.org/topic&trid=2134479 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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