XML 87 R31.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Consolidated Appropriations Act On December 27, 2020, President Trump signed the Consolidated Appropriations Act (CAA) into law. In addition to the CAA providing funding for government operations, it also provided tax provisions to assist with COVID-19 relief, including extending certain expiring tax provisions. The Company has reviewed the provisions of the CAA and has determined that there is no material impact on the 2020 financial statements as a result of the CAA being signed into law. CARES Act On March 27, 2020, the CARES Act was enacted. The CARES Act is an emergency economic stimulus package in response to the COVID-19 pandemic. Among other provisions, the CARES Act accelerates the remaining AMT credit refund allowances resulting in taxpayers being able to immediately claim a refund in full for any AMT credit carryforwards and deferral of certain 2020 payroll taxes. In the third quarter of 2020, Duke Energy received $572 million related to these AMT credit carryforwards and $19 million of interest income. In addition, the Company has deferred approximately $117 million of payroll taxes, with 50% payable by December 31, 2021, and the remaining 50% payable by December 31, 2022. The other provisions within the CARES Act do not materially impact Duke Energy's income tax accounting. See Note 1 for information on COVID-19. Tax Act On December 22, 2017, President Trump signed the Tax Act into law. Among other provisions, the Tax Act lowered the corporate federal income tax rate from 35% to 21%, limits interest deductions outside of regulated utility operations, requires the normalization of excess deferred taxes associated with property under the average rate assumption method as a prerequisite to qualifying for accelerated depreciation and repealed the federal manufacturing deduction. The Tax Act also repealed the corporate AMT and stipulates a refund of 50% of remaining AMT credit carryforwards (to the extent the credits exceed regular tax for the year) for tax years 2018, 2019, and 2020, with all remaining AMT credits to be refunded in tax year 2021. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin (SAB) 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act, which provides guidance on accounting for the Tax Act’s impact. SAB 118 provides a measurement period, which in no case should extend beyond one year from the Tax Act enactment date, during which a company acting in good faith may complete the accounting for the impacts of the Tax Act under ASC Topic 740. In accordance with SAB 118, a company must reflect the income tax effects of the Tax Act in the reporting period in which the accounting under ASC Topic 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete, a company can determine a reasonable estimate for those effects and record a provisional estimate in the financial statements in the first reporting period in which a reasonable estimate can be determined. As of December 31, 2018, the accounting for the effects of the Tax Act was complete. During the year ended December 31, 2018, Duke Energy recorded the following measurement period adjustments in accordance with SAB 118: •Additional tax expense of $23 million related to the completion of the analysis of Duke Energy’s existing regulatory liability related to deferred taxes; •A $10 million tax benefit for the remeasurement of deferred tax assets and deferred tax liabilities primarily related to the guidance on bonus depreciation issued by the IRS in August 2018, affecting the computation of the Company's 2017 Federal income tax liability; •Additional tax expense of $7 million related to the portion of the deferred tax asset as of December 31, 2017, that represents nondeductible long-term incentives under the Tax Act’s limitation on the deductibility of executive compensation; and •During the fourth quarter of 2018, the Company released the $76 million valuation allowance that it recorded in the first quarter of 2018 as a result of additional guidance published by the IRS that stated refundable AMT credits would not be subject to sequestration. •The majority of Duke Energy’s operations are regulated and it is expected that the Subsidiary Registrants will ultimately pass on the savings associated with the amount representing the remeasurement of deferred tax balances related to regulated operations to customers. For Duke Energy's regulated operations, where the reduction is expected to be returned to customers in future rates, the remeasurement has been deferred as a regulatory liability. During 2018, Duke Energy recorded an additional regulatory liability of $83 million, representing the revaluation of those deferred tax balances. The Subsidiary Registrants continue to respond to requests from regulators in various jurisdictions to determine the timing and magnitude of savings they will pass on to customers. In addition, during 2018, Duke Energy reclassified $573 million of AMT credit carryforwards from noncurrent deferred tax liabilities to a current federal income tax receivable. In 2019, Duke Energy received a refund of $573 million related to AMT credit carryforwards based on the filing of Duke Energy's 2018 income tax return in 2019 and reclassified $286 million of AMT credits from noncurrent deferred tax liabilities to a current federal income tax receivable. Income Tax Expense Components of Income Tax Expense
| Year Ended December 31, 2020
|  | Duke |  | Duke | Duke | Duke | Duke |
| Duke | Energy | Progress | Energy | Energy | Energy | Energy |
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont
Current income taxes |  |  |  |  |  |  |  |
Federal | $ | (281) |  | $ | 314 |  | $ | 280 |  | $ | 181 |  | $ | 148 |  | $ | 10 |  | $ | 48 |  | $ | (27) |
State | (9) |  | 35 |  | 29 |  | 17 |  | 24 |  | 1 |  | 7 |  | (8) |
Foreign | 1 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total current income taxes | (289) |  | 349 |  | 309 |  | 198 |  | 172 |  | 11 |  | 55 |  | (35) |
Deferred income taxes |  |  |  |  |  |  |  |
Federal | 155 |  | (171) |  | (167) |  | (180) |  | 1 |  | 30 |  | 12 |  | 60 |
State | (92) |  | (86) |  | (24) |  | (49) |  | 25 |  | 2 |  | 17 |  | (7) |
Total deferred income taxes(a) | 63 |  | (257) |  | (191) |  | (229) |  | 26 |  | 32 |  | 29 |  | 53 |
ITC amortization | (10) |  | (4) |  | (5) |  | (5) |  | — |  | — |  | — |  | — |
Income tax (benefit) expense from continuing operations | (236) |  | 88 |  | 113 |  | (36) |  | 198 |  | 43 |  | 84 |  | 18 |
Tax expense from discontinued operations | 2 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total income tax (benefit) expense included in Consolidated Statements of Operations | $ | (234) |  | $ | 88 |  | $ | 113 |  | $ | (36) |  | $ | 198 |  | $ | 43 |  | $ | 84 |  | $ | 18 |
(a) Total deferred income taxes includes the generation of NOL carryforwards and tax credit carryforwards of $20 million at Duke Energy Carolinas, $3 million at Duke Energy Progress, $8 million at Duke Energy Indiana, and $11 million at Piedmont. In addition, total deferred income taxes includes utilization of NOL carryforwards and tax credit carryforwards of $39 million at Progress Energy, $30 million at Duke Energy Florida and $79 million at Duke Energy.
| Year Ended December 31, 2019 |
|  | Duke |  | Duke | Duke | Duke | Duke |
| Duke | Energy | Progress | Energy | Energy | Energy | Energy |
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont
Current income taxes |  |  |  |  |  |  |  |
Federal | $ | (299) |  | $ | 164 |  | $ | (173) |  | $ | (36) |  | $ | (43) |  | $ | (41) |  | $ | (23) |  | $ | (92) |
State | 10 |  | 13 |  | (7) |  | (3) |  | 18 |  | (1) |  | 1 |  | (1) |
Foreign | 2 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total current income taxes | (287) |  | 177 |  | (180) |  | (39) |  | (25) |  | (42) |  | (22) |  | (93) |
Deferred income taxes |  |  |  |  |  |  |  |
Federal | 855 |  | 175 |  | 422 |  | 220 |  | 153 |  | 77 |  | 128 |  | 133 |
State | (38) |  | (37) |  | 17 |  | (18) |  | 27 |  | 5 |  | 28 |  | 3 |
Total deferred income taxes(a) | 817 |  | 138 |  | 439 |  | 202 |  | 180 |  | 82 |  | 156 |  | 136 |
ITC amortization | (11) |  | (4) |  | (6) |  | (6) |  | — |  | — |  | — |  | — |
Income tax expense from continuing operations | 519 |  | 311 |  | 253 |  | 157 |  | 155 |  | 40 |  | 134 |  | 43 |
Tax benefit from discontinued operations | (2) |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total income tax expense included in Consolidated Statements of Operations | $ | 517 |  | $ | 311 |  | $ | 253 |  | $ | 157 |  | $ | 155 |  | $ | 40 |  | $ | 134 |  | $ | 43 |
(a) Total deferred income taxes includes the generation of tax credit carryforwards of $8 million at Duke Energy Carolinas. In addition, total deferred income taxes includes utilization of NOL carryforwards and tax credit carryforwards of $243 million at Progress Energy, $35 million at Duke Energy Progress, $152 million at Duke Energy Florida, $25 million at Duke Energy Ohio, $60 million at Duke Energy Indiana, $90 million at Piedmont and $775 million at Duke Energy.
| Year Ended 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
Current income taxes |  |  |  |  |  |  |  |
Federal | $ | (647) |  | $ | (8) |  | $ | (135) |  | $ | (71) |  | $ | (49) |  | $ | 20 |  | $ | 29 |  | $ | 67 |
State | (11) |  | 6 |  | (5) |  | (5) |  | (10) |  | (1) |  | 3 |  | 1 |
Foreign | 3 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total current income taxes | (655) |  | (2) |  | (140) |  | (76) |  | (59) |  | 19 |  | 32 |  | 68 |
Deferred income taxes |  |  |  |  |  |  |  |
Federal | 1,064 |  | 299 |  | 341 |  | 256 |  | 115 |  | 21 |  | 74 |  | (36) |
State | 49 |  | 11 |  | 20 |  | (17) |  | 45 |  | 3 |  | 22 |  | 5 |
Total deferred income taxes(a)(b) | 1,113 |  | 310 |  | 361 |  | 239 |  | 160 |  | 24 |  | 96 |  | (31) |
ITC amortization | (10) |  | (5) |  | (3) |  | (3) |  | — |  | — |  | — |  | — |
Income tax expense from continuing operations | 448 |  | 303 |  | 218 |  | 160 |  | 101 |  | 43 |  | 128 |  | 37 |
Tax benefit from discontinued operations | (26) |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total income tax expense included in Consolidated Statements of Operations | $ | 422 |  | $ | 303 |  | $ | 218 |  | $ | 160 |  | $ | 101 |  | $ | 43 |  | $ | 128 |  | $ | 37 |
(a) Includes benefits of NOL carryforwards and tax credit carryforwards of $22 million at Duke Energy Carolinas, $293 million at Progress Energy, $59 million at Duke Energy Progress, $219 million at Duke Energy Florida, $17 million at Duke Energy Ohio, $21 million at Duke Energy Indiana and $39 million at Piedmont. In addition, total deferred income taxes includes utilization of NOL carryforwards and tax credit carryforwards of $18 million at Duke Energy. (b) For the year ended December 31, 2018, the Company has revised the December 31, 2017, estimates of the income tax effects of the Tax Act, in accordance with SAB 118. See the Statutory Rate Reconciliation section below for additional information on the Tax Act's impact on income tax expense . Duke Energy Income from Continuing Operations before Income Taxes
| Years Ended December 31,
(in millions) | 2020 |  | 2019 |  | 2018
Domestic | $ | 826 |  |  | $ | 4,053 |  |  | $ | 3,018 |
Foreign | 13 |  |  | 44 |  |  | 55 |
Income from continuing operations before income taxes | $ | 839 |  |  | $ | 4,097 |  |  | $ | 3,073 |
Statutory Rate Reconciliation The following tables present a reconciliation of income tax expense at the U.S. federal statutory tax rate to the actual tax expense from continuing operations.
| Year Ended December 31, 2020
|  | Duke |  | Duke | Duke | Duke | Duke |
| Duke | Energy | Progress | Energy | Energy | Energy | Energy |
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont
Income tax expense, computed at the statutory rate of 21% | $ | 176 |  | $ | 219 |  | $ | 243 |  | $ | 80 |  | $ | 204 |  | $ | 62 |  | $ | 103 |  | $ | 61 |
State income tax, net of federal income tax effect | (80) |  | (40) |  | 4 |  | (25) |  | 39 |  | 2 |  | 19 |  | (12) |
Amortization of excess deferred income tax | (276) |  | (82) |  | (118) |  | (68) |  | (49) |  | (20) |  | (36) |  | (21) |
AFUDC equity income | (48) |  | (13) |  | (9) |  | (6) |  | (3) |  | (2) |  | (4) |  | (10) |
AFUDC equity depreciation | 103 |  | 19 |  | 10 |  | 5 |  | 5 |  | 1 |  | 4 |  | — |
Noncontrolling Interests | 62 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Renewable energy PTCs | (110) |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Other tax credits | (37) |  | (13) |  | (16) |  | (14) |  | (2) |  | (1) |  | (3) |  | (2) |
Tax true up | (12) |  | (3) |  | 1 |  | (5) |  | 5 |  | — |  | (1) |  | 1 |
Other items, net | (14) |  | 1 |  | (2) |  | (3) |  | (1) |  | 1 |  | 2 |  | 1 |
Income tax (benefit) expense from continuing operations | $ | (236) |  | $ | 88 |  | $ | 113 |  | $ | (36) |  | $ | 198 |  | $ | 43 |  | $ | 84 |  | $ | 18 |
Effective tax rate | (28.1) | % | 8.4 | % | 9.7 | % | (9.5) | % | 20.4 | % | 14.6 | % | 17.1 | % | 6.2 | %
| Year Ended December 31, 2019 |
|  | Duke |  | Duke | Duke | Duke | Duke |
| Duke | Energy | Progress | Energy | Energy | Energy | Energy |
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont
Income tax expense, computed at the statutory rate of 21% | $ | 860 |  | $ | 360 |  | $ | 332 |  | $ | 202 |  | $ | 178 |  | $ | 59 |  | $ | 120 |  | $ | 51 |
State income tax, net of federal income tax effect | (22) |  | (19) |  | 8 |  | (17) |  | 35 |  | 3 |  | 22 |  | 2 |
Amortization of excess deferred income tax | (121) |  | (29) |  | (64) |  | (10) |  | (54) |  | (12) |  | (6) |  | (10) |
AFUDC equity income | (52) |  | (9) |  | (14) |  | (13) |  | (1) |  | (3) |  | (3) |  | — |
AFUDC equity depreciation | 34 |  | 19 |  | 10 |  | 5 |  | 5 |  | 1 |  | 4 |  | — |
Renewable energy PTCs | (120) |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Other tax credits | (23) |  | (11) |  | (9) |  | (7) |  | (2) |  | (1) |  | (1) |  | (1) |
Tax true up | (64) |  | (9) |  | (8) |  | (3) |  | (5) |  | (7) |  | (1) |  | — |
Other items, net | 27 |  | 9 |  | (2) |  | — |  | (1) |  | — |  | (1) |  | 1 |
Income tax expense from continuing operations | $ | 519 |  | $ | 311 |  | $ | 253 |  | $ | 157 |  | $ | 155 |  | $ | 40 |  | $ | 134 |  | $ | 43 |
Effective tax rate | 12.7 | % | 18.1 | % | 16.0 | % | 16.3 | % | 18.3 | % | 14.3 | % | 23.5 | % | 17.6 | %
| Year Ended 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
Income tax expense, computed at the statutory rate of 21% | $ | 645 |  | $ | 288 |  | $ | 263 |  | $ | 174 |  | $ | 137 |  | $ | 46 |  | $ | 109 |  | $ | 35 |
State income tax, net of federal income tax effect | 30 |  | 14 |  | 13 |  | (17) |  | 28 |  | 2 |  | 20 |  | 4 |
Amortization of excess deferred income tax | (61) |  | — |  | (55) |  | (1) |  | (54) |  | (3) |  | (2) |  | — |
AFUDC equity income | (42) |  | (15) |  | (22) |  | (12) |  | (10) |  | (2) |  | (2) |  | — |
AFUDC equity depreciation | 31 |  | 18 |  | 9 |  | 5 |  | 4 |  | 1 |  | 4 |  | — |
Renewable energy PTCs | (129) |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Other tax credits | (28) |  | (7) |  | (13) |  | (5) |  | (8) |  | (1) |  | (1) |  | (3) |
Tax Act(a) | 20 |  | 1 |  | 25 |  | 19 |  | — |  | 2 |  | — |  | — |
Other items, net | (18) |  | 4 |  | (2) |  | (3) |  | 4 |  | (2) |  | — |  | 1 |
Income tax expense from continuing operations | $ | 448 |  | $ | 303 |  | $ | 218 |  | $ | 160 |  | $ | 101 |  | $ | 43 |  | $ | 128 |  | $ | 37 |
Effective tax rate | 14.6 | % | 22.1 | % | 17.4 | % | 19.3 | % | 15.4 | % | 19.6 | % | 24.6 | % | 22.3 | %
(a) For the year ended December 31, 2018, the Company revised the December 31, 2017, estimates of the income tax effects of the Tax Act, in accordance with SAB 118. Amounts primarily include but are not limited to items that are excluded for ratemaking purposes related certain wholesale fixed-rate contracts, remeasurement of nonregulated net deferred tax liabilities, Federal NOLs, and valuation allowance on foreign tax credits. Valuation allowances have been established for certain state NOL carryforwards and state income tax credits that reduce deferred tax assets to an amount that will be realized on a more-likely-than-not basis. The net change in the total valuation allowance is included in State income tax, net of federal income tax effect, in the above tables. Valuation allowances have been established for foreign tax credits that reduce deferred tax assets to an amount that will be realized on a more-likely-than-not basis. The net change in the total valuation allowance is included in Tax Act in the above tables. DEFERRED TAXES Net Deferred Income Tax Liability Components
| December 31, 2020
|  | Duke |  | Duke | Duke | Duke | Duke |
| Duke | Energy | Progress | Energy | Energy | Energy | Energy |
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont
Deferred credits and other liabilities | $ | 286 |  | $ | 85 |  | $ | 87 |  | $ | 67 |  | $ | 18 |  | $ | 21 |  | $ | 7 |  | $ | 38 |
Lease obligations | 515 |  | 96 |  | 208 |  | 120 |  | 87 |  | 5 |  | 16 |  | 5 |
Pension, post-retirement and other employee benefits | 236 |  | (30) |  | 68 |  | 24 |  | 38 |  | 16 |  | 26 |  | (5) |
Progress Energy merger purchase accounting adjustments(a) | 441 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Tax credits and NOL carryforwards | 3,909 |  | 285 |  | 508 |  | 179 |  | 282 |  | 16 |  | 183 |  | 29 |
Regulatory liabilities and deferred credits | — |  | 11 |  | — |  | — |  | — |  | 18 |  | — |  | — |
Investments and other assets | — |  | — |  | — |  | — |  | — |  | 7 |  |  | — |
Other | 93 |  | 8 |  | 14 |  | 9 |  | 4 |  | 7 |  | 1 |  | 8 |
Valuation allowance | (586) |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total deferred income tax assets | 4,894 |  | 455 |  | 885 |  | 399 |  | 429 |  | 90 |  | 233 |  | 75 |
Investments and other assets | (2,267) |  | (1,127) |  | (669) |  | (507) |  | (164) |  | — |  | (14) |  | (48) |
Accelerated depreciation rates | (10,729) |  | (3,170) |  | (3,868) |  | (1,778) |  | (2,124) |  | (1,071) |  | (1,433) |  | (844) |
Regulatory assets and deferred debits, net | (1,142) |  | — |  | (744) |  | (412) |  | (332) |  | — |  | (14) |  | (4) |
Total deferred income tax liabilities | (14,138) |  | (4,297) |  | (5,281) |  | (2,697) |  | (2,620) |  | (1,071) |  | (1,461) |  | (896) |
Net deferred income tax liabilities | $ | (9,244) |  | $ | (3,842) |  | $ | (4,396) |  | $ | (2,298) |  | $ | (2,191) |  | $ | (981) |  | $ | (1,228) |  | $ | (821) |
(a) Primarily related to lease obligations and debt fair value adjustments. The following table presents the expiration of tax credits and NOL carryforwards.
| December 31, 2020
(in millions) | Amount |  | Expiration Year
General Business Credits | $ | 2,033 |  |  | 2024 |  | — |  | 2040
Federal NOL carryforwards(a) (f) | 154 |  |  | 2024 |  | — |  | Indefinite
Capital loss carryforward(e) | 85 |  |  | 2024
State carryforwards and credits(b) (f) | 340 |  |  | 2021 |  | — |  | Indefinite
Foreign NOL carryforwards(c) | 12 |  |  | 2027 |  | — |  | 2037
Foreign Tax Credits(d) | 1,272 |  |  | 2024 |  | — |  | 2027
Charitable contribution carryforwards | 13 |  |  | 2025
Total tax credits and NOL carryforwards | $ | 3,909 |  |  |  |  |  |  |
(a) A valuation allowance of $4 million has been recorded on the Federal NOL carryforwards, as presented in the Net Deferred Income Tax Liability Components table. (b) A valuation allowance of $97 million has been recorded on the state NOL and attribute carryforwards, as presented in the Net Deferred Income Tax Liability Components table. (c) A valuation allowance of $12 million has been recorded on the foreign NOL carryforwards, as presented in the Net Deferred Income Tax Liability Components table. (d) A valuation allowance of $388 million has been recorded on the foreign tax credits, as presented in the Net Deferred Income Tax Liability Components table. (e) A valuation allowance of $85 million has been recorded on the Federal capital loss carryforward, as presented in the Net Deferred Income Tax Liability Components table. (f) Indefinite carryforward for Federal NOLs, and NOLs for states that have adopted the Tax Act's NOL provisions, generated in tax years beginning after December 31, 2017.
| December 31, 2019
|  | Duke |  | Duke | Duke | Duke | Duke |
| Duke | Energy | Progress | Energy | Energy | Energy | Energy |
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont
Deferred credits and other liabilities | $ | 125 |  | $ | 24 |  | $ | 25 |  | $ | 49 |  | $ | — |  | $ | 14 |  | $ | 5 |  | $ | 22 |
Lease obligations | 462 |  | 72 |  | 193 |  | 92 |  | 102 |  | 5 |  | 17 |  | 6 |
Pension, post-retirement and other employee benefits | 303 |  | (5) |  | 88 |  | 38 |  | 44 |  | 17 |  | 27 |  | (3) |
Progress Energy merger purchase accounting adjustments(a) | 389 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Tax credits and NOL carryforwards | 3,925 |  | 262 |  | 486 |  | 176 |  | 253 |  | 16 |  | 176 |  | 19 |
Regulatory liabilities and deferred credits | — |  | — |  | — |  | — |  | — |  | 36 |  | 52 |  | 42 |
Investments and other assets | — |  | — |  | — |  | — |  | — |  | 10 |  | — |  | 2 |
Other | 97 |  | 5 |  | 8 |  | 3 |  | 2 |  | 8 |  | 1 |  | 6 |
Valuation allowance | (587) |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total deferred income tax assets | 4,714 |  | 358 |  | 800 |  | 358 |  | 401 |  | 106 |  | 278 |  | 94 |
Investments and other assets | (1,664) |  | (981) |  | (577) |  | (390) |  | (190) |  | — |  | (12) |  | — |
Accelerated depreciation rates | (10,813) |  | (3,254) |  | (3,798) |  | (1,918) |  | (1,913) |  | (1,028) |  | (1,416) |  | (802) |
Regulatory assets and deferred debits, net | (1,115) |  | (44) |  | (887) |  | (438) |  | (477) |  | — |  | — |  | — |
Total deferred income tax liabilities | (13,592) |  | (4,279) |  | (5,262) |  | (2,746) |  | (2,580) |  | (1,028) |  | (1,428) |  | (802) |
Net deferred income tax liabilities | $ | (8,878) |  | $ | (3,921) |  | $ | (4,462) |  | $ | (2,388) |  | $ | (2,179) |  | $ | (922) |  | $ | (1,150) |  | $ | (708) |
(a) Primarily related to finance lease obligations and debt fair value adjustments. UNRECOGNIZED TAX BENEFITS The following tables present changes to unrecognized tax benefits.
| Year Ended December 31, 2020
|  | Duke |  | Duke | Duke | Duke | Duke |
| Duke | Energy | Progress | Energy | Energy | Energy | Energy |
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont
Unrecognized tax benefits – January 1 | $ | 126 |  | $ | 8 |  | $ | 9 |  | $ | 6 |  | $ | 3 |  | $ | 1 |  | $ | 1 |  | $ | 4 |
Gross decreases – tax positions in prior periods | (2) |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Gross increases – current period tax positions | 4 |  | 2 |  | 1 |  | — |  | — |  | — |  | — |  | — |
Reduction due to lapse of statute of limitations | (3) |  | — |  | — |  | — |  | — |  | — |  | — |  | (3) |
Total changes | (1) |  | 2 |  | 1 |  | — |  | — |  | — |  | — |  | (3) |
Unrecognized tax benefits – December 31 | $ | 125 |  | $ | 10 |  | $ | 10 |  | $ | 6 |  | $ | 3 |  | $ | 1 |  | $ | 1 |  | $ | 1 |
| Year Ended December 31, 2019 |
|  | Duke |  | Duke | Duke | Duke | Duke |
| Duke | Energy | Progress | Energy | Energy | Energy | Energy |
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont
Unrecognized tax benefits – January 1 | $ | 24 |  | $ | 6 |  | $ | 9 |  | $ | 6 |  | $ | 3 |  | $ | 1 |  | $ | 1 |  | $ | 4 |
Unrecognized tax benefits increases | 105 |  | 2 |  | 1 |  | 1 |  | — |  | — |  | — |  | — |
Gross decreases – tax positions in prior periods | (3) |  | — |  | (1) |  | (1) |  | — |  | — |  | — |  | — |
Total changes | 102 |  | 2 |  | — |  | — |  | — |  | — |  | — |  | — |
Unrecognized tax benefits – December 31 | $ | 126 |  | $ | 8 |  | $ | 9 |  | $ | 6 |  | $ | 3 |  | $ | 1 |  | $ | 1 |  | $ | 4 |
| Year Ended 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
Unrecognized tax benefits – January 1 | $ | 25 |  | $ | 5 |  | $ | 5 |  | $ | 5 |  | $ | 5 |  | $ | 1 |  | $ | 1 |  | $ | 3 |
Unrecognized tax benefits increases (decreases) |  |  |  |  |  |  |  |
Gross decreases – tax positions in prior periods | (2) |  | (1) |  | — |  | — |  | (4) |  | — |  | — |  | — |
Gross increases – tax positions in prior periods | 7 |  | 2 |  | 4 |  | 1 |  | 2 |  | — |  | — |  | 1 |
Decreases due to settlements | (6) |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total changes | (1) |  | 1 |  | 4 |  | 1 |  | (2) |  | — |  | — |  | 1 |
Unrecognized tax benefits – December 31 | $ | 24 |  | $ | 6 |  | $ | 9 |  | $ | 6 |  | $ | 3 |  | $ | 1 |  | $ | 1 |  | $ | 4 |
The following table includes additional information regarding the Duke Energy Registrants' unrecognized tax benefits at December 31, 2020. Duke Energy Registrants do not anticipate a material increase or decrease in unrecognized tax benefits within the next 12 months.
| December 31, 2020
|  | Duke |  | Duke | Duke | Duke | Duke |
| Duke | Energy | Progress | Energy | Energy | Energy | Energy |
(in millions) | Energy | Carolinas | Energy | Progress | Florida | Ohio | Indiana | Piedmont
Amount that if recognized, would affect the effective tax rate or regulatory liability(a) | $ | 122 |  | $ | 10 |  | $ | 10 |  | $ | 6 |  | $ | 3 |  | $ | 1 |  | $ | 1 |  | $ | 1 |
(a) The Duke Energy Registrants are unable to estimate the specific amounts that would affect the ETR versus the regulatory liability. Duke Energy and its subsidiaries are no longer subject to U.S. federal examination for years before 2016. With few exceptions, Duke Energy and its subsidiaries are no longer subject to state, local or non-U.S. income tax examinations by tax authorities for years before 2016.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration