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Business Segments | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Business Segments | BUSINESS SEGMENTS Reportable segments are determined based on information used by the chief operating decision-maker in deciding how to allocate resources and evaluate the performance of the business. Duke Energy evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests. Segment income, as discussed below, includes intercompany revenues and expenses that are eliminated on the Consolidated Financial Statements. Certain governance costs are allocated to each segment. In addition, direct interest expense and income taxes are included in segment income. Products and services are sold between affiliate companies and reportable segments of Duke Energy at cost. Segment assets as presented in the tables that follow exclude all intercompany assets. 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 regulated electric utilities conduct operations through the Subsidiary Registrants that are substantially all regulated and, accordingly, qualify for regulatory accounting treatment. Electric Utilities and Infrastructure also includes Duke Energy's electric transmission infrastructure investments. 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. Gas Utilities and Infrastructure's operations are substantially all regulated and, accordingly, qualify for regulatory accounting treatment. 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. See Note 2 for additional information on the minority interest sale. 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 and Duke Energy’s wholly owned captive insurance company, Bison. Other also includes Duke Energy's interest in NMC. See Note 13 for additional information on the investment in NMC. Business segment information is presented in the following tables. Segment assets presented exclude intercompany assets.
| Year Ended December 31, 2019
| Electric |  |  | Gas |  |  |  |  | Total |  |  |  |  |  |  |
| Utilities and |  |  | Utilities and |  |  | Commercial |  |  | Reportable |  |  |  |  |  |  |
(in millions) | Infrastructure |  |  | Infrastructure |  |  | Renewables |  |  | Segments |  |  | Other |  |  | Eliminations |  |  | Total |
Unaffiliated Revenues | $ | 22,798 |  |  | $ | 1,770 |  |  | $ | 487 |  |  | $ | 25,055 |  |  | $ | 24 |  |  | $ | — |  |  | $ | 25,079 |
Intersegment Revenues | 33 |  |  | 96 |  |  | — |  |  | 129 |  |  | 71 |  |  | (200 | ) |  | — |
Total Revenues | $ | 22,831 |  |  | $ | 1,866 |  |  | $ | 487 |  |  | $ | 25,184 |  |  | $ | 95 |  |  | $ | (200 | ) |  | $ | 25,079 |
Interest Expense | $ | 1,345 |  |  | $ | 117 |  |  | $ | 95 |  |  | $ | 1,557 |  |  | $ | 705 |  |  | $ | (58 | ) |  | $ | 2,204 |
Depreciation and amortization | 3,951 |  |  | 256 |  |  | 168 |  |  | 4,375 |  |  | 178 |  |  | (5 | ) |  | 4,548 |
Equity in earnings (losses) of unconsolidated affiliates | 9 |  |  | 114 |  |  | (4 | ) |  | 119 |  |  | 43 |  |  | — |  |  | 162 |
Income tax expense (benefit) | 785 |  |  | 22 |  |  | (115 | ) |  | 692 |  |  | (173 | ) |  | — |  |  | 519 |
Segment income (loss)(a)(b) | 3,536 |  |  | 432 |  |  | 198 |  |  | 4,166 |  |  | (452 | ) |  | — |  |  | 3,714 |
Add back noncontrolling interest(c) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (177 | )
Add back preferred stock dividend |  |  |  |  |  |  |  |  |  |  |  |  | 41 |
Loss from discontinued operations, net of tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (7 | )
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 3,571 |
Capital investments expenditures and acquisitions | $ | 8,263 |  |  | $ | 1,539 |  |  | $ | 1,423 |  |  | $ | 11,225 |  |  | $ | 221 |  |  | $ | — |  |  | $ | 11,446 |
Segment assets | 135,561 |  |  | 13,921 |  |  | 6,020 |  |  | 155,502 |  |  | 3,148 |  |  | 188 |  |  | 158,838 |
(a) | Electric Utilities and Infrastructure includes a $27 million reduction of a prior year impairment at Citrus County CC related to the plant's cost cap. See Note 4 for additional information.
(b) | Gas Utilities and Infrastructure includes an after-tax impairment charge of $19 million for the remaining investment in Constitution. See Note 13 for additional information.
(c) | Includes the allocation of losses to noncontrolling tax equity members. See Note 1 for additional information.
| Year Ended December 31, 2018
| Electric |  |  | Gas |  |  |  |  | Total |  |  |  |  |  |  |
| Utilities and |  |  | Utilities and |  |  | Commercial |  |  | Reportable |  |  |  |  |  |  |
(in millions) | Infrastructure |  |  | Infrastructure |  |  | Renewables |  |  | Segments |  |  | Other |  |  | Eliminations |  |  | Total |
Unaffiliated Revenues | $ | 22,242 |  |  | $ | 1,783 |  |  | $ | 477 |  |  | $ | 24,502 |  |  | $ | 19 |  |  | $ | — |  |  | $ | 24,521 |
Intersegment Revenues | 31 |  |  | 98 |  |  | — |  |  | 129 |  |  | 70 |  |  | (199 | ) |  | — |
Total Revenues | $ | 22,273 |  |  | $ | 1,881 |  |  | $ | 477 |  |  | $ | 24,631 |  |  | $ | 89 |  |  | $ | (199 | ) |  | $ | 24,521 |
Interest Expense | $ | 1,288 |  |  | $ | 106 |  |  | $ | 88 |  |  | $ | 1,482 |  |  | $ | 657 |  |  | $ | (45 | ) |  | $ | 2,094 |
Depreciation and amortization | 3,523 |  |  | 245 |  |  | 155 |  |  | 3,923 |  |  | 152 |  |  | (1 | ) |  | 4,074 |
Equity in earnings (losses) of unconsolidated affiliates | 5 |  |  | 27 |  |  | (1 | ) |  | 31 |  |  | 52 |  |  | — |  |  | 83 |
Income tax expense (benefit)(a) | 799 |  |  | 78 |  |  | (147 | ) |  | 730 |  |  | (282 | ) |  | — |  |  | 448 |
Segment income (loss)(b)(c)(d)(e) | 3,058 |  |  | 274 |  |  | 9 |  |  | 3,341 |  |  | (694 | ) |  | — |  |  | 2,647 |
Add back noncontrolling interest component |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (22 | )
Loss from discontinued operations, net of tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 19 |
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 2,644 |
Capital investments expenditures and acquisitions | $ | 8,086 |  |  | $ | 1,133 |  |  | $ | 193 |  |  | $ | 9,412 |  |  | $ | 256 |  |  | $ | — |  |  | $ | 9,668 |
Segment assets | 125,364 |  |  | 12,361 |  |  | 4,204 |  |  | 141,929 |  |  | 3,275 |  |  | 188 |  |  | 145,392 |
(a) | All segments include adjustments to the December 31, 2017, estimate of the income tax effects of the Tax Act. Electric Utilities and Infrastructure includes a $24 million expense, Gas Utilities and Infrastructure includes a $1 million expense, Commercial Renewables includes a $3 million benefit and Other includes a $2 million benefit. See Note 24 for additional information.
(b) | Electric Utilities and Infrastructure includes after-tax regulatory and legislative impairment charges of $202 million related to rate case orders, settlements or other actions of regulators or legislative bodies and an after-tax impairment charge of $46 million related to the Citrus County CC at Duke Energy Florida. See Note 4 for additional information.
(c) | Gas Utilities and Infrastructure includes an after-tax impairment charge of $42 million for the investment in Constitution. See Note 13 for additional information.
(d) | Commercial Renewables includes an impairment charge of $91 million, net of $2 million Noncontrolling interests, related to goodwill. See Note 12 for additional information.
(e) | Other includes $65 million of after-tax costs to achieve the Piedmont merger, $144 million of after-tax severance charges related to a companywide initiative and an $82 million after-tax loss on the sale of Beckjord described below. For additional information, see Note 2 for the Piedmont Merger and Note 21 for severance charges.
In February 2018, Duke Energy sold Beckjord, a nonregulated facility retired during 2014, and recorded a pretax loss of $106 million within (Losses) Gains on Sales of Other Assets and Other, net and $1 million within Operation, maintenance and other on Duke Energy's Consolidated Statements of Operations for the year ended December 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.
| Year Ended December 31, 2017
| Electric |  |  | Gas |  |  |  |  | Total |  |  |  |  |  |  |
| Utilities and |  |  | Utilities and |  |  | Commercial |  |  | Reportable |  |  |  |  |  |  |
(in millions) | Infrastructure |  |  | Infrastructure |  |  | Renewables |  |  | Segments |  |  | Other |  |  | Eliminations |  |  | Total |
Unaffiliated Revenues | $ | 21,300 |  |  | $ | 1,743 |  |  | $ | 460 |  |  | $ | 23,503 |  |  | $ | 62 |  |  | $ | — |  |  | $ | 23,565 |
Intersegment Revenues | 31 |  |  | 93 |  |  | — |  |  | 124 |  |  | 76 |  |  | (200 | ) |  | — |
Total Revenues | $ | 21,331 |  |  | $ | 1,836 |  |  | $ | 460 |  |  | $ | 23,627 |  |  | $ | 138 |  |  | $ | (200 | ) |  | $ | 23,565 |
Interest Expense | $ | 1,240 |  |  | $ | 105 |  |  | $ | 87 |  |  | $ | 1,432 |  |  | $ | 574 |  |  | $ | (20 | ) |  | $ | 1,986 |
Depreciation and amortization | 3,010 |  |  | 231 |  |  | 155 |  |  | 3,396 |  |  | 131 |  |  | — |  |  | 3,527 |
Equity in earnings (losses) of unconsolidated affiliates | 5 |  |  | 62 |  |  | (5 | ) |  | 62 |  |  | 57 |  |  | — |  |  | 119 |
Income tax expense (benefit)(a) | 1,355 |  |  | 116 |  |  | (628 | ) |  | 843 |  |  | 353 |  |  | — |  |  | 1,196 |
Segment income (loss)(b)(c)(d) | 3,210 |  |  | 319 |  |  | 441 |  |  | 3,970 |  |  | (905 | ) |  | — |  |  | 3,065 |
Add back noncontrolling interest component |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5 |
Loss from discontinued operations, net of tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (6 | )
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 3,064 |
Capital investments expenditures and acquisitions | $ | 7,024 |  |  | $ | 907 |  |  | $ | 92 |  |  | $ | 8,023 |  |  | $ | 175 |  |  | $ | — |  |  | $ | 8,198 |
Segment assets | 119,423 |  |  | 11,462 |  |  | 4,156 |  |  | 135,041 |  |  | 2,685 |  |  | 188 |  |  | 137,914 |
(a) | All segments include impacts of the Tax Act. Electric Utilities and Infrastructure includes a $231 million benefit, Gas Utilities and Infrastructure includes a $26 million benefit, Commercial Renewables includes a $442 million benefit and Other includes charges of $597 million.
(b) | Electric Utilities and Infrastructure includes after-tax regulatory settlement charges of $98 million.
(c) | Commercial Renewables includes after-tax impairment charges of $74 million related to certain wind projects and the Energy Management Solutions reporting unit. See Notes 11 and 12 for additional information.
(d) | Other includes $64 million of after-tax costs to achieve the Piedmont merger. See Note 2 for additional information.
Geographical Information Substantially all assets and revenues from continuing operations are within the U.S. Major Customers For the year ended December 31, 2019, revenues from one customer of Duke Energy Progress are $635 million. Duke Energy Progress has one reportable segment, Electric Utilities and Infrastructure. No other Subsidiary Registrant has an individual customer representing more than 10% of its revenues. Products and Services The following table summarizes revenues of the reportable segments by type.
| Retail |  |  | Wholesale |  |  | Retail |  |  |  |  | Total |
(in millions) | Electric |  |  | Electric |  |  | Natural Gas |  |  | Other |  |  | Revenues |
2019 |  |  |  |  |  |  |  |  |
Electric Utilities and Infrastructure | $ | 19,745 |  |  | $ | 2,231 |  |  | $ | — |  |  | $ | 855 |  |  | $ | 22,831 |
Gas Utilities and Infrastructure | — |  |  | — |  |  | 1,782 |  |  | 84 |  |  | 1,866 |
Commercial Renewables | — |  |  | 389 |  |  | — |  |  | 98 |  |  | 487 |
Total Reportable Segments | $ | 19,745 |  |  | $ | 2,620 |  |  | $ | 1,782 |  |  | $ | 1,037 |  |  | $ | 25,184 |
2018 |  |  |  |  |  |  |  |  |
Electric Utilities and Infrastructure | $ | 19,013 |  |  | $ | 2,345 |  |  | $ | — |  |  | $ | 915 |  |  | $ | 22,273 |
Gas Utilities and Infrastructure | — |  |  | — |  |  | 1,817 |  |  | 64 |  |  | 1,881 |
Commercial Renewables | — |  |  | 375 |  |  | — |  |  | 102 |  |  | 477 |
Total Reportable Segments | $ | 19,013 |  |  | $ | 2,720 |  |  | $ | 1,817 |  |  | $ | 1,081 |  |  | $ | 24,631 |
2017 |  |  |  |  |  |  |  |  |
Electric Utilities and Infrastructure | $ | 18,177 |  |  | $ | 2,104 |  |  | $ | — |  |  | $ | 1,050 |  |  | $ | 21,331 |
Gas Utilities and Infrastructure | — |  |  | — |  |  | 1,732 |  |  | 104 |  |  | 1,836 |
Commercial Renewables | — |  |  | 375 |  |  | — |  |  | 85 |  |  | 460 |
Total Reportable Segments | $ | 18,177 |  |  | $ | 2,479 |  |  | $ | 1,732 |  |  | $ | 1,239 |  |  | $ | 23,627 |
Duke Energy Ohio Duke Energy Ohio has two reportable segments, Electric Utilities and Infrastructure and Gas Utilities and Infrastructure. Electric Utilities and Infrastructure transmits and distributes electricity in portions of Ohio and generates, distributes and sells electricity in portions of Northern Kentucky. Gas Utilities and Infrastructure transports and sells natural gas in portions of Ohio and Northern Kentucky. Both reportable segments conduct operations primarily through Duke Energy Ohio and its wholly owned subsidiary, Duke Energy Kentucky. The remainder of Duke Energy Ohio's operations is presented as Other. In December 2018, the PUCO approved an order which allows the recovery or credit of revenues and expenses related to Duke Energy Ohio's contractual arrangement to buy power from OVEC power plants. Due to the change in regulatory treatment of these amounts, OVEC revenues and expenses are now reflected in the Electric Utilities and Infrastructure segment. Previously, OVEC revenues and expense were included in Other. These amounts are deemed immaterial for Duke Energy Ohio. Therefore, no prior period amounts were restated. See Note 4 for additional information on the PUCO order. All Duke Energy Ohio assets and revenues from continuing operations are within the U.S.
| Year Ended December 31, 2019
| Electric |  |  | Gas |  |  | Total |  |  |  |  |  |  |
| Utilities and |  |  | Utilities and |  |  | Reportable |  |  |  |  |  |  |
(in millions) | Infrastructure |  |  | Infrastructure |  |  | Segments |  |  | Other |  |  | Eliminations |  |  | Total |
Total revenues | $ | 1,456 |  |  | $ | 484 |  |  | $ | 1,940 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,940 |
Interest expense | $ | 80 |  |  | $ | 29 |  |  | $ | 109 |  |  | $ | — |  |  | $ | — |  |  | $ | 109 |
Depreciation and amortization | 182 |  |  | 83 |  |  | 265 |  |  | — |  |  | — |  |  | 265 |
Income tax expense (benefit) | 20 |  |  | 21 |  |  | 41 |  |  | (1 | ) |  | — |  |  | 40 |
Segment income (loss)/Net income | 159 |  |  | 85 |  |  | 244 |  |  | (5 | ) |  | — |  |  | 239 |
Loss from discontinued operations, net of tax |  |  |  |  |  |  |  |  |  |  | (1 | )
Net income |  |  |  |  |  |  |  |  |  |  | $ | 238 |
Capital expenditures | $ | 680 |  |  | $ | 272 |  |  | $ | 952 |  |  | $ | — |  |  | $ | — |  |  | $ | 952 |
Segment assets | 6,188 |  |  | 3,116 |  |  | 9,304 |  |  | 34 |  |  | — |  |  | 9,338 |
| Year Ended December 31, 2018
| Electric |  |  | Gas |  |  | Total |  |  |  |  |  |  |
| Utilities and |  |  | Utilities and |  |  | Reportable |  |  |  |  |  |  |
(in millions) | Infrastructure |  |  | Infrastructure |  |  | Segments |  |  | Other |  |  | Eliminations |  |  | Total |
Total revenues | $ | 1,450 |  |  | $ | 506 |  |  | $ | 1,956 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1,957 |
Interest expense | $ | 67 |  |  | $ | 24 |  |  | $ | 91 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 92 |
Depreciation and amortization | 183 |  |  | 85 |  |  | 268 |  |  | — |  |  | — |  |  | 268 |
Income tax expense (benefit) | 47 |  |  | 24 |  |  | 71 |  |  | (28 | ) |  | — |  |  | 43 |
Segment income (loss)/Net income(a) | 186 |  |  | 93 |  |  | 279 |  |  | (103 | ) |  | — |  |  | 176 |
Capital expenditures | $ | 655 |  |  | $ | 172 |  |  | $ | 827 |  |  | $ | — |  |  | $ | — |  |  | $ | 827 |
Segment assets | 5,643 |  |  | 2,874 |  |  | 8,517 |  |  | 38 |  |  | — |  |  | 8,555 |
(a) Other includes the loss on the sale of Beckjord, see discussion above.
| Year Ended December 31, 2017
| Electric |  |  | Gas |  |  | Total |  |  |  |  |  |  |
| Utilities and |  |  | Utilities and |  |  | Reportable |  |  |  |  |  |  |
(in millions) | Infrastructure |  |  | Infrastructure |  |  | Segments |  |  | Other |  |  | Eliminations |  |  | Total |
Total revenues | $ | 1,373 |  |  | $ | 508 |  |  | $ | 1,881 |  |  | $ | 42 |  |  | $ | — |  |  | $ | 1,923 |
Interest expense | $ | 62 |  |  | $ | 28 |  |  | $ | 90 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 91 |
Depreciation and amortization | 178 |  |  | 83 |  |  | 261 |  |  | — |  |  | — |  |  | 261 |
Income tax expense (benefit) | 40 |  |  | 39 |  |  | 79 |  |  | (20 | ) |  | — |  |  | 59 |
Segment income (loss) | 138 |  |  | 85 |  |  | 223 |  |  | (30 | ) |  | — |  |  | 193 |
Loss from discontinued operations, net of tax |  |  |  |  |  |  |  |  |  |  | (1 | )
Net income |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 192 |
Capital expenditures | $ | 491 |  |  | $ | 195 |  |  | $ | 686 |  |  | $ | — |  |  | $ | — |  |  | $ | 686 |
Segment assets | 5,066 |  |  | 2,758 |  |  | 7,824 |  |  | 66 |  |  | (15 | ) |  | 7,875 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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