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Organization and Basis of Presentation | 3 Months Ended
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Mar. 31, 2022
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
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, 2021. 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 11 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. NONCONTROLLING INTEREST Duke Energy maintains a controlling financial interest in certain less than wholly owned nonregulated subsidiaries. As a result, Duke Energy consolidates these subsidiaries and presents the third-party investors' portion of Duke Energy's net income (loss), net assets and comprehensive income (loss) as noncontrolling interest. Noncontrolling interest is included as a component of equity on the Condensed Consolidated Balance Sheets. Several operating agreements of Duke Energy's subsidiaries with noncontrolling interest are subject to allocations of earnings, tax attributes and cash flows in accordance with contractual agreements that vary throughout the lives of the subsidiaries. Therefore, Duke Energy and the other investors' (the owners) interests in the subsidiaries are not fixed, and the subsidiaries apply the Hypothetical Liquidation at Book Value (HLBV) method in allocating income or loss and other comprehensive income or loss (all measured on a pretax basis) to the owners. The HLBV method measures the amounts that each owner would hypothetically claim at each balance sheet reporting date, including tax benefits realized by the owners over the IRS recapture period, upon a hypothetical liquidation of the subsidiary at the net book value of its underlying assets. The change in the amount that each owner would hypothetically receive at the reporting date compared to the amount it would have received on the previous reporting date represents the amount of income or loss allocated to each owner for the reporting period. During September 2021, Duke Energy completed the initial minority interest investment in a portion of Duke Energy Indiana to an affiliate of GIC. GIC's ownership interest in Duke Energy Indiana represents a noncontrolling interest. See Note 2 for additional information on the sale. Other operating agreements of Duke Energy's subsidiaries with noncontrolling interest allocate profit and loss based on their pro rata shares of the ownership interest in the respective subsidiary. Therefore, Duke Energy allocates net income or loss and other comprehensive income or loss of these subsidiaries to the owners based on their pro rata shares. The following table presents allocated losses to noncontrolling interest for the three months ended March 31, 2022, and 2021.
| Three Months Ended March 31, |  |
(in millions) | 2022 |  | 2021 |  |  |  |
Noncontrolling Interest Allocation of Income |  |  |  |  |  |  |
Allocated losses to noncontrolling tax equity members utilizing the HLBV method | $ | 24 |  |  | $ | 43 |  |  |  |  |
Allocated losses to noncontrolling members based on pro rata shares of ownership | 13 |  |  | 8 |  |  |  |  |
Total Noncontrolling Interest Allocated Losses | $ | 37 |  |  | $ | 51 |  |  |  |  |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH Duke Energy, Duke Energy Carolinas, Progress Energy, Duke Energy Progress and Duke Energy Florida have restricted cash balances related primarily to collateral assets, escrow deposits and VIEs. See Notes 9 and 11 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, 2022 |  | December 31, 2021
|  | Duke |  | Duke | Duke |  |  | Duke |  | Duke | Duke
| Duke | Energy | Progress | Energy | Energy |  | Duke | Energy | Progress | Energy | Energy
| Energy | Carolinas | Energy | Progress | Florida |  | Energy | Carolinas | Energy | Progress | Florida
Current Assets |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 853 |  | $ | 4 |  | $ | 63 |  | $ | 42 |  | $ | 13 |  |  | $ | 343 |  | $ | 7 |  | $ | 70 |  | $ | 35 |  | $ | 23 |
Other | 151 |  | 4 |  | 28 |  | 13 |  | 13 |  |  | 170 |  | — |  | 39 |  | — |  | 39 |
Other Noncurrent Assets |  |  |  |  |  |  |  |  |  |  |
Other | 16 |  | 1 |  | 4 |  | 4 |  | — |  |  | 7 |  | 1 |  | 4 |  | 4 |  | — |
Total cash, cash equivalents and restricted cash | $ | 1,020 |  | $ | 9 |  | $ | 95 |  | $ | 59 |  | $ | 26 |  |  | $ | 520 |  | $ | 8 |  | $ | 113 |  | $ | 39 |  | $ | 62 |
INVENTORY Provisions for inventory write-offs were not material at March 31, 2022, and December 31, 2021. The components of inventory are presented in the tables below.
| March 31, 2022
|  |  | 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 | $ | 2,455 |  |  | $ | 810 |  |  | $ | 1,089 |  |  | $ | 744 |  |  | $ | 345 |  |  | $ | 89 |  |  | $ | 320 |  |  | $ | 14 |
Coal | 469 |  |  | 196 |  |  | 149 |  |  | 93 |  |  | 56 |  |  | 16 |  |  | 108 |  |  | — |
Natural gas, oil and other fuel | 247 |  |  | 34 |  |  | 165 |  |  | 103 |  |  | 62 |  |  | 9 |  |  | 2 |  |  | 37 |
Total inventory | $ | 3,171 |  |  | $ | 1,040 |  |  | $ | 1,403 |  |  | $ | 940 |  |  | $ | 463 |  |  | $ | 114 |  |  | $ | 430 |  |  | $ | 51 |
| December 31, 2021
|  |  | 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 | $ | 2,397 |  |  | $ | 793 |  |  | $ | 1,067 |  |  | $ | 729 |  |  | $ | 338 |  |  | $ | 80 |  |  | $ | 311 |  |  | $ | 14 |
Coal | 486 |  |  | 195 |  |  | 167 |  |  | 94 |  |  | 73 |  |  | 19 |  |  | 105 |  |  | — |
Natural gas, oil and other fuel | 316 |  |  | 38 |  |  | 164 |  |  | 98 |  |  | 66 |  |  | 17 |  |  | 2 |  |  | 95 |
Total inventory | $ | 3,199 |  |  | $ | 1,026 |  |  | $ | 1,398 |  |  | $ | 921 |  |  | $ | 477 |  |  | $ | 116 |  |  | $ | 418 |  |  | $ | 109 |
NEW ACCOUNTING STANDARDS No new accounting standards were adopted by the Duke Energy Registrants in 2022.

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