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Investments in Debt and Equity Securities | 9 Months Ended
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Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract] |
Investments In Debt And Equity Securities | INVESTMENTS IN DEBT AND EQUITY SECURITIES Duke Energy’s investments in debt and equity securities are primarily comprised of investments held in (i) the NDTF at Duke Energy Carolinas, Duke Energy Progress and Duke Energy Florida, (ii) the grantor trusts at Duke Energy Progress, Duke Energy Florida and Duke Energy Indiana related to OPEB plans and (iii) Bison. The Duke Energy Registrants classify investments in debt securities as AFS and investments in equity securities as fair value through net income (FV-NI). For investments in debt securities classified as AFS, the unrealized gains and losses are included in other comprehensive income until realized, at which time they are reported through net income. For investments in equity securities classified as FV-NI, both realized and unrealized gains and losses are reported through net income. Substantially all of Duke Energy’s investments in debt and equity securities qualify for regulatory accounting, and accordingly, all associated realized and unrealized gains and losses on these investments are deferred as a regulatory asset or liability. Duke Energy classifies the majority of investments in debt and equity securities as long term, unless otherwise noted. Investment Trusts The investments within the Investment Trusts are managed by independent investment managers with discretion to buy, sell and invest pursuant to the objectives set forth by the investment manager agreements and 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 securities within the Investment Trusts are recognized immediately and deferred to regulatory accounts where appropriate. Other AFS Securities Unrealized gains and losses on all other AFS securities are included in other comprehensive income until realized, unless it is determined the carrying value of an investment has a credit loss. The Duke Energy Registrants analyze all investment holdings each reporting period to determine whether a decline in fair value is related to a credit loss. If a credit loss exists, the unrealized credit loss is included in earnings. There were no material credit losses as of September 30, 2020, and December 31, 2019. Other Investments amounts are recorded in Other within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets. DUKE ENERGY The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
| September 30, 2020 |  | December 31, 2019
| Gross |  |  | Gross |  |  |  |  | Gross |  |  | Gross |  |  |
| Unrealized |  |  | Unrealized |  |  | Estimated |  |  | Unrealized |  |  | Unrealized |  |  | Estimated |
| Holding |  |  | Holding |  |  | Fair |  |  | Holding |  |  | Holding |  |  | Fair |
(in millions) | Gains |  |  | Losses |  |  | Value |  |  | Gains |  |  | Losses |  |  | Value |
NDTF |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 687 |  |  | $ | — |  |  | $ | — |  |  | $ | 101 |
Equity securities | 3,436 |  |  | 103 |  |  | 5,459 |  |  | 3,523 |  |  | 55 |  |  | 5,661 |
Corporate debt securities | 65 |  |  | 1 |  |  | 789 |  |  | 37 |  |  | 1 |  |  | 603 |
Municipal bonds | 19 |  |  | 1 |  |  | 407 |  |  | 13 |  |  | — |  |  | 368 |
U.S. government bonds | 58 |  |  | — |  |  | 843 |  |  | 33 |  |  | 1 |  |  | 1,256 |
Other debt securities | 9 |  |  | — |  |  | 185 |  |  | 3 |  |  | — |  |  | 141 |
Total NDTF Investments | $ | 3,587 |  |  | $ | 105 |  |  | $ | 8,370 |  |  | $ | 3,609 |  |  | $ | 57 |  |  | $ | 8,130 |
Other Investments |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 110 |  |  | $ | — |  |  | $ | — |  |  | $ | 52 |
Equity securities | 60 |  |  | — |  |  | 126 |  |  | 57 |  |  | — |  |  | 122 |
Corporate debt securities | 8 |  |  | — |  |  | 129 |  |  | 3 |  |  | — |  |  | 67 |
Municipal bonds | 6 |  |  | 1 |  |  | 114 |  |  | 4 |  |  | — |  |  | 94 |
U.S. government bonds | 1 |  |  | — |  |  | 21 |  |  | 2 |  |  | — |  |  | 41 |
Other debt securities | — |  |  | — |  |  | 44 |  |  | — |  |  | — |  |  | 56 |
Total Other Investments | $ | 75 |  |  | $ | 1 |  |  | $ | 544 |  |  | $ | 66 |  |  | $ | — |  |  | $ | 432 |
Total Investments | $ | 3,662 |  |  | $ | 106 |  |  | $ | 8,914 |  |  | $ | 3,675 |  |  | $ | 57 |  |  | $ | 8,562 |
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and nine months ended September 30, 2020, and 2019, were as follows.
| Three Months Ended |  | Nine Months Ended
(in millions) | September 30, 2020 |  | September 30, 2019 |  | September 30, 2020 |  | September 30, 2019
FV-NI: |  |  |  |  |  |  |
Realized gains | $ | 13 |  |  | $ | 60 |  |  | $ | 338 |  |  | $ | 161 |
Realized losses | 16 |  |  | 43 |  |  | 148 |  |  | 136 |
AFS: |  |  |  |  |  |  |
Realized gains | 26 |  |  | 53 |  |  | 73 |  |  | 110 |
Realized losses | 19 |  |  | 36 |  |  | 38 |  |  | 83 |
DUKE ENERGY CAROLINAS The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
| September 30, 2020 |  | December 31, 2019
| Gross |  |  | Gross |  |  |  |  | Gross |  |  | Gross |  |  |
| Unrealized |  |  | Unrealized |  |  | Estimated |  |  | Unrealized |  |  | Unrealized |  |  | Estimated |
| Holding |  |  | Holding |  |  | Fair |  |  | Holding |  |  | Holding |  |  | Fair |
(in millions) | Gains |  |  | Losses |  |  | Value |  |  | Gains |  |  | Losses |  |  | Value |
NDTF |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 42 |  |  | $ | — |  |  | $ | — |  |  | $ | 21 |
Equity securities | 2,027 |  |  | 52 |  |  | 3,229 |  |  | 1,914 |  |  | 8 |  |  | 3,154 |
Corporate debt securities | 42 |  |  | 1 |  |  | 507 |  |  | 21 |  |  | 1 |  |  | 361 |
Municipal bonds | 5 |  |  | — |  |  | 118 |  |  | 3 |  |  | — |  |  | 96 |
U.S. government bonds | 28 |  |  | — |  |  | 428 |  |  | 16 |  |  | 1 |  |  | 578 |
Other debt securities | 7 |  |  | — |  |  | 179 |  |  | 3 |  |  | — |  |  | 137 |
Total NDTF Investments | $ | 2,109 |  |  | $ | 53 |  |  | $ | 4,503 |  |  | $ | 1,957 |  |  | $ | 10 |  |  | $ | 4,347 |
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and nine months ended September 30, 2020, and 2019, were as follows.
| Three Months Ended |  | Nine Months Ended
(in millions) | September 30, 2020 |  | September 30, 2019 |  | September 30, 2020 |  | September 30, 2019
FV-NI: |  |  |  |  |  |  |
Realized gains | $ | 10 |  |  | $ | 34 |  |  | $ | 46 |  |  | $ | 101 |
Realized losses | 12 |  |  | 26 |  |  | 82 |  |  | 95 |
AFS: |  |  |  |  |  |  |
Realized gains | 20 |  |  | 21 |  |  | 50 |  |  | 46 |
Realized losses | 17 |  |  | 13 |  |  | 30 |  |  | 34 |
PROGRESS ENERGY The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
| September 30, 2020 |  | December 31, 2019
| Gross |  |  | Gross |  |  |  |  | Gross |  |  | Gross |  |  |
| Unrealized |  |  | Unrealized |  |  | Estimated |  |  | Unrealized |  |  | Unrealized |  |  | Estimated |
| Holding |  |  | Holding |  |  | Fair |  |  | Holding |  |  | Holding |  |  | Fair |
(in millions) | Gains |  |  | Losses |  |  | Value |  |  | Gains |  |  | Losses |  |  | Value |
NDTF |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 645 |  |  | $ | — |  |  | $ | — |  |  | $ | 80 |
Equity securities | 1,409 |  |  | 51 |  |  | 2,230 |  |  | 1,609 |  |  | 47 |  |  | 2,507 |
Corporate debt securities | 23 |  |  | — |  |  | 282 |  |  | 16 |  |  | — |  |  | 242 |
Municipal bonds | 14 |  |  | 1 |  |  | 289 |  |  | 10 |  |  | — |  |  | 272 |
U.S. government bonds | 30 |  |  | — |  |  | 415 |  |  | 17 |  |  | — |  |  | 678 |
Other debt securities | 2 |  |  | — |  |  | 6 |  |  | — |  |  | — |  |  | 4 |
Total NDTF Investments | $ | 1,478 |  |  | $ | 52 |  |  | $ | 3,867 |  |  | $ | 1,652 |  |  | $ | 47 |  |  | $ | 3,783 |
Other Investments |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 107 |  |  | $ | — |  |  | $ | — |  |  | $ | 49 |
Municipal bonds | 4 |  |  | — |  |  | 53 |  |  | 3 |  |  | — |  |  | 51 |
Total Other Investments | $ | 4 |  |  | $ | — |  |  | $ | 160 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 100 |
Total Investments | $ | 1,482 |  |  | $ | 52 |  |  | $ | 4,027 |  |  | $ | 1,655 |  |  | $ | 47 |  |  | $ | 3,883 |
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and nine months ended September 30, 2020, and 2019, were as follows.
| Three Months Ended | Nine Months Ended
(in millions) | September 30, 2020 |  | September 30, 2019 |  | September 30, 2020 |  | September 30, 2019
FV-NI: |  |  |  |  |  |  |
Realized gains | $ | 3 |  |  | $ | 26 |  |  | $ | 292 |  |  | $ | 60 |
Realized losses | 4 |  |  | 17 |  |  | 66 |  |  | 41 |
AFS: |  |  |  |  |  |  |
Realized gains | 6 |  |  | 31 |  |  | 17 |  |  | 62 |
Realized losses | 2 |  |  | 23 |  |  | 7 |  |  | 49 |
DUKE ENERGY PROGRESS The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
| September 30, 2020 |  | December 31, 2019
| Gross |  |  | Gross |  |  |  |  | Gross |  |  | Gross |  |  |
| Unrealized |  |  | Unrealized |  |  | Estimated |  |  | Unrealized |  |  | Unrealized |  |  | Estimated |
| Holding |  |  | Holding |  |  | Fair |  |  | Holding |  |  | Holding |  |  | Fair |
(in millions) | Gains |  |  | Losses |  |  | Value |  |  | Gains |  |  | Losses |  |  | Value |
NDTF |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 57 |  |  | $ | — |  |  | $ | — |  |  | $ | 53 |
Equity securities | 1,340 |  |  | 51 |  |  | 2,150 |  |  | 1,258 |  |  | 21 |  |  | 2,077 |
Corporate debt securities | 23 |  |  | — |  |  | 282 |  |  | 16 |  |  | — |  |  | 242 |
Municipal bonds | 14 |  |  | 1 |  |  | 289 |  |  | 10 |  |  | — |  |  | 272 |
U.S. government bonds | 30 |  |  | — |  |  | 415 |  |  | 16 |  |  | — |  |  | 403 |
Other debt securities | 2 |  |  | — |  |  | 6 |  |  | — |  |  | — |  |  | 4 |
Total NDTF Investments | $ | 1,409 |  |  | $ | 52 |  |  | $ | 3,199 |  |  | $ | 1,300 |  |  | $ | 21 |  |  | $ | 3,051 |
Other Investments |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |
Total Other Investments | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 2 |
Total Investments | $ | 1,409 |  |  | $ | 52 |  |  | $ | 3,200 |  |  | $ | 1,300 |  |  | $ | 21 |  |  | $ | 3,053 |
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and nine months ended September 30, 2020, and 2019, were as follows.
| Three Months Ended | Nine Months Ended
(in millions) | September 30, 2020 |  | September 30, 2019 |  | September 30, 2020 |  | September 30, 2019
FV-NI: |  |  |  |  |  |  |
Realized gains | $ | 3 |  |  | $ | 10 |  |  | $ | 43 |  |  | $ | 27 |
Realized losses | 4 |  |  | 9 |  |  | 51 |  |  | 24 |
AFS: |  |  |  |  |  |  |
Realized gains | 6 |  |  | 2 |  |  | 17 |  |  | 4 |
Realized losses | 2 |  |  | — |  |  | 7 |  |  | 2 |
DUKE ENERGY FLORIDA The following table presents the estimated fair value of investments in debt and equity securities; equity investments are classified as FV-NI and debt investments are classified as AFS.
| September 30, 2020 |  | December 31, 2019
| Gross |  |  | Gross |  |  |  |  | Gross |  |  | Gross |  |  |
| Unrealized |  |  | Unrealized |  |  | Estimated |  |  | Unrealized |  |  | Unrealized |  |  | Estimated |
| Holding |  |  | Holding |  |  | Fair |  |  | Holding |  |  | Holding |  |  | Fair |
(in millions) | Gains |  |  | Losses |  |  | Value |  |  | Gains |  |  | Losses |  |  | Value |
NDTF |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 588 |  |  | $ | — |  |  | $ | — |  |  | $ | 27 |
Equity securities | 69 |  |  | — |  |  | 80 |  |  | 351 |  |  | 26 |  |  | 430 |
U.S. government bonds | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 275 |
Total NDTF Investments(a) | $ | 69 |  |  | $ | — |  |  | $ | 668 |  |  | $ | 352 |  |  | $ | 26 |  |  | $ | 732 |
Other Investments |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 4 |
Municipal bonds | 4 |  |  | — |  |  | 53 |  |  | 3 |  |  | — |  |  | 51 |
Total Other Investments | $ | 4 |  |  | $ | — |  |  | $ | 55 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 55 |
Total Investments | $ | 73 |  |  | $ | — |  |  | $ | 723 |  |  | $ | 355 |  |  | $ | 26 |  |  | $ | 787 |
(a) | During the nine months ended September 30, 2020, Duke Energy Florida continued to receive reimbursements from the NDTF for costs related to ongoing decommissioning activity of Crystal River Unit 3.
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and nine months ended September 30, 2020, and 2019, were as follows.
| Three Months Ended | Nine Months Ended
(in millions) | September 30, 2020 |  | September 30, 2019 |  | September 30, 2020 |  | September 30, 2019
FV-NI: |  |  |  |  |  |  |
Realized gains | $ | — |  |  | $ | 16 |  |  | $ | 249 |  |  | $ | 33 |
Realized losses | — |  |  | 8 |  |  | 15 |  |  | 17 |
AFS: |  |  |  |  |  |  |
Realized gains | — |  |  | 29 |  |  | — |  |  | 58 |
Realized losses | — |  |  | 23 |  |  | — |  |  | 47 |
DUKE ENERGY INDIANA The following table presents the estimated fair value of investments in debt and equity securities; equity investments are measured at FV-NI and debt investments are classified as AFS.
| September 30, 2020 |  | December 31, 2019
| Gross |  |  | Gross |  |  |  |  | Gross |  |  | Gross |  |  |
| Unrealized |  |  | Unrealized |  |  | Estimated |  |  | Unrealized |  |  | Unrealized |  |  | Estimated |
| Holding |  |  | Holding |  |  | Fair |  |  | Holding |  |  | Holding |  |  | Fair |
(in millions) | Gains |  |  | Losses |  |  | Value |  |  | Gains |  |  | Losses |  |  | Value |
Investments |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Equity securities | 45 |  |  | — |  |  | 84 |  |  | 43 |  |  | — |  |  | 81 |
Corporate debt securities | — |  |  | — |  |  | 3 |  |  | — |  |  | — |  |  | 6 |
Municipal bonds | 1 |  |  | 1 |  |  | 39 |  |  | 1 |  |  | — |  |  | 36 |
U.S. government bonds | — |  |  | — |  |  | 3 |  |  | — |  |  | — |  |  | 2 |
Total Investments | $ | 46 |  |  | $ | 1 |  |  | $ | 130 |  |  | $ | 44 |  |  | $ | — |  |  | $ | 125 |
Realized gains and losses, which were determined on a specific identification basis, from sales of FV-NI and AFS securities for the three and nine months ended September 30, 2020, and 2019, were immaterial. DEBT SECURITY MATURITIES The table below summarizes the maturity date for debt securities.
| September 30, 2020
|  |  | Duke |  |  |  |  | Duke |  |  | Duke |  |  | Duke |
| Duke |  |  | Energy |  |  | Progress |  |  | Energy |  |  | Energy |  |  | Energy |
(in millions) | Energy |  |  | Carolinas |  |  | Energy |  |  | Progress |  |  | Florida |  |  | Indiana |
Due in one year or less | $ | 53 |  |  | $ | 13 |  |  | $ | 15 |  |  | $ | 14 |  |  | $ | 1 |  |  | $ | 4 |
Due after one through five years | 558 |  |  | 247 |  |  | 256 |  |  | 246 |  |  | 10 |  |  | 16 |
Due after five through 10 years | 608 |  |  | 278 |  |  | 232 |  |  | 224 |  |  | 8 |  |  | 9 |
Due after 10 years | 1,313 |  |  | 694 |  |  | 542 |  |  | 508 |  |  | 34 |  |  | 16 |
Total | $ | 2,532 |  |  | $ | 1,232 |  |  | $ | 1,045 |  |  | $ | 992 |  |  | $ | 53 |  |  | $ | 45 |

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
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