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Dispositions | 12 Months Ended
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Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract] |
Dispositions | DISPOSITIONS The following table summarizes the Loss from Discontinued Operations, net of tax recorded on Duke Energy's Consolidated Statements of Operations:
|  | Years Ended December 31,
(in millions) |  | 2023 | 2022 | 2021
Commercial Renewables Disposal Groups |  | $ | (1,457) |  | $ | (1,349) |  | $ | (151) |
Other(a) |  | 2 |  | 26 |  | 7 |
Loss from Discontinued Operations, net of tax |  | $ | (1,455) |  | $ | (1,323) |  | $ | (144) |
(a) Amounts primarily represent income tax adjustments for previously sold businesses not related to the Commercial Renewables Disposal Groups. Sale of Commercial Renewables Segment 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. In June 2023, Duke Energy announced that it had entered into a purchase and sale agreement with affiliates of Brookfield for the sale of the utility-scale solar and wind grou p. Duke Energy closed on this transaction on October 25, 2023, for proceeds of $1.1 billion, with approximately half of the proceeds received at closing and th e remainder due 18 months after closing. The balance of the proceeds to be received is classified in Other, within Other Noncurrent Asset on Duke Energy's Consolidated Balance Sheets. In July 2023, Duke Energy announced that it had entered into a purchase and sale agreement with affiliates of ArcLight for the distributed generation group. Duke Energy closed on this transaction on October 4, 2023, and received proceeds of $243 million. These proceeds amounts are gross of cash divested as part of the sales of the utility-scale wind and solar group and the distributed generation group, which totaled approximately $75 million. In March 2023, assets for certain projects were removed from the utility-scale solar and wind group and placed in a separate disposal group. The disposal process for the remaining assets is expected to be completed in the first half of 2024, with net proceeds from the dispositions not anticipated to be material. 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. No interest from corporate level debt was allocated to discontinued operations and 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. 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.
|  | December 31, |
(in millions) |  | 2023 |  | 2022 |
Current Assets Held for Sale |  |  |  |  |
Cash and cash equivalents |  | $ | — |  |  | $ | 10 |  |
Receivables, net |  | — |  |  | 107 |  |
Inventory |  | — |  |  | 88 |  |
Other |  | 14 |  |  | 151 |  |
Total current assets held for sale |  | 14 |  |  | 356 |  |
Noncurrent Assets Held for Sale |  |  |  |  |
Property, Plant and Equipment |  |  |  |  |
Cost |  | 247 |  |  | 6,444 |  |
Accumulated depreciation and amortization |  | (57) |  |  | (1,651) |  |
Net property, plant and equipment |  | 190 |  |  | 4,793 |  |
Operating lease right-of-use assets, net |  | 4 |  |  | 140 |  |
Investments in equity method unconsolidated affiliates |  | — |  |  | 522 |  |
Other |  | 3 |  |  | 179 |  |
Total other noncurrent assets held for sale |  | 7 |  |  | 841 |  |
Total Assets Held for Sale |  | $ | 211 |  |  | $ | 5,990 |  |
Current Liabilities Associated with Assets Held for Sale |  |  |  |  |
Accounts payable |  | $ | 9 |  |  | $ | 122 |  |
Taxes accrued |  | 3 |  |  | 17 |  |
Current maturities of long-term debt |  | 5 |  |  | 276 |  |
Unrealized losses on commodity hedges |  | 68 |  |  | 37 |  |
Other |  | 37 |  |  | 83 |  |
Total current liabilities associated with assets held for sale |  | 122 |  |  | 535 |  |
Noncurrent Liabilities Associated with Assets Held for Sale |  |  |  |  |
Long-Term debt |  | 39 |  |  | 1,188 |  |
Operating lease liabilities |  | 5 |  |  | 150 |  |
Asset retirement obligations |  | 8 |  |  | 190 |  |
Unrealized losses on commodity hedges |  | 94 |  |  | 187 |  |
Other |  | 11 |  |  | 212 |  |
Total other noncurrent liabilities associated with assets held for sale |  | 157 |  |  | 1,927 |  |
Total Liabilities Associated with Assets Held for Sale |  | $ | 279 |  |  | $ | 2,462 |  |
As of December 31, 2023, and 2022, the noncontrolling interest balance is $66.3 million 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.
| Years Ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
Operating revenues | $ | 330 |  |  | $ | 465 |  |  | $ | 476 |
Operation, maintenance and other | 302 |  | 337 |  | 343
Depreciation and amortization(a) | — |  |  | 201 |  | 227
Property and other taxes | 45 |  | 36 |  | 34
Other income and expenses, net | (8) |  |  | 2 |  |  | (27) |
Interest expense | 65 |  | 10 |  | 72
Loss on disposal | 1,725 |  |  | 1,748 |  |  | — |
Loss before income taxes | (1,815) |  |  | (1,865) |  |  | (227) |
Income tax benefit | (358) |  |  | (516) |  |  | (76) |
Loss from discontinued operations | $ | (1,457) |  |  | $ | (1,349) |  |  | $ | (151) |
Add: Net loss attributable to noncontrolling interest included in discontinued operations | 64 |  |  | 108 |  |  | 344 |
Net (loss) income from discontinued operations attributable to Duke Energy Corporation | $ | (1,393) |  |  | $ | (1,241) |  |  | $ | 193 |
(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' assets held for sale amounts presented above reflect pretax impairments recorded against property, plant and equipment of approximately $278 million and $1.7 billion as of December 31, 2023, and 2022, respectively. In connection with the sales of the utility-scale solar and wind group and the distributed generation group, impairments were recorded based upon the purchase and sale agreements and the net assets were derecognized following the closing of the sales. For the remainder of the assets, impairments were recorded based upon fair value determined from a discounted cash flow analysis. The impairments were included in Loss from Discontinued Operations, net of tax in Duke Energy's Consolidated Statements of Operations and Comprehensive Income for the periods presented. The discounted cash flow model utilized Level 2 and Level 3 inputs. The fair value hierarchy levels are further discussed in Note 17. The impairments for the utility-scale and distributed generation assets were updated based on customary adjustments at closing, and will be updated, if necessary, for any post-closing adjustments. The carrying amounts for the remaining assets will be updated, if necessary, based on final disposition amounts. 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.
| Years Ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
Cash flows provided by (used in): |  |  |  |  |
Operating activities | $ | 607 |  |  | $ | 213 |  |  | $ | 62 |
Investing activities | 122 |  |  | (802) |  |  | (542) |
Other Sale Related Matters Duke Energy (Parent) and several Duke Energy renewables project companies, located in the Electric Reliability Council of Texas (ERCOT) market, were named in several lawsuits arising out of Texas Storm Uri, which occurred in February 2021. The legal actions related to all but one of the project companies in this matter transferred to affiliates of Brookfield in conjunction with the transaction closing in October 2023. See Note 5 for more information. As part of the purchase and sale agreement for the distributed generation group, Duke Energy has agreed to retain certain guarantees, with expiration dates between 2029 through 2034, related to tax equity partners' assets and operations that will be disposed of via sale. Duke Energy has obtained certain guarantees from the buyers in regard to future performance obligations to assist in limiting Duke Energy's exposure under the retained guarantees. The fair value of the guarantees is immaterial as Duke Energy does not believe conditions are likely for performance under these guarantees. Sale of Minority Interest in Duke Energy Indiana Holdco, LLC On January 28, 2021, Duke Energy executed an agreement providing for an investment by an affiliate of GIC in Duke Energy Indiana in exchange for a 19.9% minority interest issued by Duke Energy Indiana Holdco, LLC, the holding company for Duke Energy Indiana. The transaction was completed following two closings for an aggregate purchase price of approximately $2.05 billion. The first closing, which occurred on September 8, 2021, resulted in Duke Energy Indiana Holdco, LLC issuing 11.05% of its membership interests in exchange for approximately $1.03 billion or 50% of the purchase price. The difference between the cash consideration received, net of transaction costs of approximately $27 million, and the carrying value of the noncontrolling interest is $545 million and was recorded as an increase to equity. The second closing was completed in December 2022 and resulted in Duke Energy Indiana Holdco, LLC issuing an additional 8.85% of its membership interests in exchange for approximately $1.03 billion. The difference between the cash consideration received, net of transaction costs of approximately $6 million, and the carrying value of the noncontrolling interest is $492 million and was recorded as an increase to equity. Duke Energy retained indirect control of these assets, and, therefore, no gain or loss was recognized on the Consolidated Statements of Operations for either transaction.

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