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Dispositions | 3 Months Ended
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Mar. 31, 2023
Discontinued Operations and Disposal Groups [Abstract] |
Dispositions | DISPOSITIONS Sale of Commercial Renewables Segment In August 2022, Duke Energy announced a strategic review of its commercial renewables business. Since 2007, Duke Energy has built a portfolio of commercial wind, solar and battery projects across the U.S., and established a development pipeline. Duke Energy has developed a strategy to focus on renewables, grid and other investment opportunities within its regulated operations. In November 2022, Duke Energy committed to a plan to sell the Commercial Renewables business segment, excluding the offshore wind contract for Carolina Long Bay, which was moved to the EU&I segment. Prior to March 2023, Duke Energy was actively marketing the Commercial Renewables business as two separate disposal groups, the utility-scale solar and wind group and the distributed generation group. In March 2023, assets for certain projects were removed from the utility-scale solar and wind group and placed in a separate disposal group (collectively, Commercial Renewables Disposal Groups) and a pretax impairment of approximately $220 million was recorded for the three months ended March 31, 2023. The sales processes for the Commercial Renewables Disposal Groups are ongoing and Duke Energy expects to dispose of these groups in the second half of 2023. Assets Held For Sale and Discontinued Operations The Commercial Renewables Disposal Groups were classified as held for sale and as discontinued operations in the fourth quarter of 2022. Originally debt and the related restricted cash and interest rate swaps were not expected to transfer to a buyer but during the marketing process it was determined they would be included with the sale and were classified as held for sale in March 2023. As a result, adjustments were made to the December 31, 2022, Consolidated Balance Sheet to present debt and the related restricted cash and interest rate swaps as held for sale. No adjustments were made to the historical activity within the Consolidated Statements of Comprehensive Income, Consolidated Statements of Cash Flows or the Consolidated Statements of Changes in Equity. Unless otherwise noted, the notes to these consolidated financial statements exclude amounts related to discontinued operations for all periods presented. No interest from corporate level debt was allocated to discontinued operations. The following table presents the carrying values of the major classes of Assets held for sale and Liabilities associated with assets held for sale included in Duke Energy's Consolidated Balance Sheets.
(in millions) | March 31, 2023 |  | December 31, 2022 |
Current Assets Held for Sale |  |  |  |
Cash and cash equivalents | $ | 12 |  |  | $ | 10 |  |
Receivables, net | 114 |  |  | 107 |  |
Inventory | 81 |  |  | 88 |  |
Other | 167 |  |  | 151 |  |
Total current assets held for sale | 374 |  |  | 356 |  |
Noncurrent Assets Held for Sale |  |  |  |
Property, Plant and Equipment |  |  |  |
Cost | 6,334 |  |  | 6,444 |  |
Accumulated depreciation and amortization | (1,651) |  |  | (1,651) |  |
Net property, plant and equipment | 4,683 |  |  | 4,793 |  |
Operating lease right-of-use assets, net | 142 |  |  | 140 |  |
Investments in equity method unconsolidated affiliates | 512 |  |  | 522 |  |
Other | 201 |  |  | 179 |  |
Total other noncurrent assets held for sale | 855 |  |  | 841 |  |
Total Assets Held for Sale | $ | 5,912 |  |  | $ | 5,990 |  |
Current Liabilities Associated with Assets Held for Sale |  |  |  |
Accounts payable | $ | 80 |  |  | $ | 122 |  |
Taxes accrued | 9 |  |  | 17 |  |
Current maturities of long-term debt | 275 |  |  | 276 |  |
Other | 112 |  |  | 120 |  |
Total current liabilities associated with assets held for sale | 476 |  |  | 535 |  |
Noncurrent Liabilities Associated with Assets Held for Sale |  |  |  |
Long-Term debt | 1,184 |  |  | 1,188 |  |
Operating lease liabilities | 150 |  |  | 150 |  |
Asset retirement obligations | 196 |  |  | 190 |  |
Other | 401 |  |  | 399 |  |
Total other noncurrent liabilities associated with assets held for sale | 1,931 |  |  | 1,927 |  |
Total Liabilities Associated with Assets Held for Sale | $ | 2,407 |  |  | $ | 2,462 |  |
As of March 31, 2023, and December 31, 2022, the noncontrolling interest balance is $1.7 billion and $1.6 billion, respectively. The following table presents the results of the Commercial Renewables Disposal Groups, which are included in Loss from Discontinued Operations, net of tax in Duke Energy's Consolidated Statements of Operations.
| Three Months Ended
| March 31,
(in millions) | 2023 |  | 2022
Operating revenues | $ | 80 |  |  | $ | 121 |
Operation, maintenance and other | 89 |  |  | 81
Depreciation and amortization(a) | — |  |  | 64
Property and other taxes | 10 |  |  | 10
Other income and expenses, net | (4) |  |  | — |
Interest expense | 31 |  |  | 19
Loss on disposal | 220 |  |  | — |
Loss before income taxes | (274) |  |  | (53) |
Income tax benefit | (65) |  |  | (38) |
Loss from discontinued operations | $ | (209) |  |  | $ | (15) |
Add: Net loss attributable to noncontrolling interest included in discontinued operations | 64 |  |  | 27 |
Net income from discontinued operations attributable to Duke Energy Corporation | $ | (145) |  |  | $ | 12 |
(a) Upon meeting the criteria for assets held for sale, beginning in November 2022 depreciation and amortization expense were ceased. The Commercial Renewables Disposal Groups' held for sale assets included pretax impairments of approximately $1.7 billion at December 31, 2022. In the first quarter of 2023, a pretax impairment of approximately $220 million was recorded to write-down the carrying amount of property, plant and equipment assets to the estimated fair value of the business, based on the expected selling price less estimated costs to sell. The first quarter impairment was included in Loss from Discontinued Operations, net of tax, in Duke Energy's Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2023. The fair value was primarily determined from market information obtained through the bidding process and discounted cash flow analysis. The discounted cash flow model utilized Level 2 and Level 3 inputs. The fair value hierarchy levels are further discussed in Note 11. The impairment will be updated, if necessary, based on market changes or the final sales price, including all closing adjustments. Duke Energy has elected not to separately disclose discontinued operations on Duke Energy's Consolidated Statements of Cash Flows. The following table summarizes Duke Energy's cash flows from discontinued operations related to the Commercial Renewables Disposal Groups.
| Three Months Ended
| March 31,
(in millions) | 2023 |  | 2022
Cash flows provided by (used in): |  |  |
Operating activities | $ | (54) |  |  | $ | 64 |
Investing activities | (151) |  |  | (88) |
Other Sale-Related Matters Duke Energy (Parent) and several Duke Energy renewables project companies, located in the ERCOT market, were named in several lawsuits arising out of Texas Storm Uri, which occurred in February 2021. The legal actions related to Duke Energy (Parent) from these lawsuits will remain with Duke Energy (Parent) and any future activity related to Duke Energy (Parent) as a defendant in these lawsuits will be presented in discontinued operations. See Note 4 for more information.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 + Details
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