CHARLOTTE, N.C., May 3, 2016 /PRNewswire/ --
-- First quarter 2016 adjusted diluted earnings per share (EPS) were $1.13 compared to $1.24 for the first quarter of 2015, reflecting the impact of milder winter weather and the prior-year sale of the Midwest Generation business -- Reported diluted EPS of $1.01 for first quarter 2016, compared to $1.22 for the first quarter of 2015 -- Company remains on track to achieve its 2016 adjusted diluted earnings guidance range of $4.50 to $4.70 per share
Duke Energy (NYSE: DUK) today announced first quarter 2016 adjusted diluted EPS of $1.13, compared to $1.24 for first quarter 2015. First quarter 2016 reported EPS was $1.01, compared to $1.22 for first quarter 2015.
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Adjusted diluted EPS for the first quarter of 2016 were lower than the prior year, primarily due to milder winter weather, the absence of prior-year Midwest Generation results, and higher winter storm costs. International's results were supported by a favorable tax adjustment and stronger results in Brazil.
Based upon results through the first quarter, the company remains on track to achieve its 2016 adjusted diluted earnings guidance range of $4.50 to $4.70 per share.
"Operational excellence continues to underpin our commitment to our customers, communities and investors," said Lynn Good, chairman, president and CEO. "This was evidenced by our quick response in restoring more than 1.1 million customers after multiple winter storms in the Carolinas.
"Equally important, we continued to make investments to better serve our customers -- expanding natural gas and renewable generation investments, modernizing the electric grid and investing in infrastructure while continuing to efficiently manage our operations."
Business unit results
In addition to the summary business unit discussion below, a comprehensive table of quarterly adjusted earnings per share drivers compared to the prior year is provided on page 14.
The discussion below of first-quarter results includes adjusted segment income, which is a non-GAAP financial measure. The tables on pages 23 and 24 present a reconciliation of reported results to adjusted results.
During the first quarter of 2016, Duke Energy began to evaluate interim period segment performance based on financial information that includes the impact of income tax levelization within segment income. This represents a change from the previous measure, where the interim period impacts of income tax levelization were included within Other, and therefore excluded from segment income. As a result, prior period segment results presented in this release have been recast to conform to this change.
Regulated Utilities
Regulated Utilities recognized first quarter 2016 adjusted segment income of $695 million, compared to $774 million in the first quarter 2015, a decrease of $0.11 per share.
Lower quarterly results at Regulated Utilities were primarily driven by:
-- Milder winter weather compared to the prior year (-$0.10 per share), principally in the Carolinas and Midwest -- Higher depreciation and amortization expense (-$0.06 per share), primarily resulting from additional plant-in-service, including the North Carolina Eastern Municipal Power Agency (NCEMPA) asset purchase in July 2015 -- Higher O&M expenses (-$0.01 per share), as a result of significant winter storm costs and the NCEMPA asset purchase, which were mostly offset by lower outage costs and ongoing cost efficiency initiatives
These unfavorable drivers were partially offset by:
-- Higher revenues from increased pricing and riders (+$0.07 per share) driven by the NCEMPA rider and energy efficiency programs
Commercial Portfolio
Commercial Portfolio recognized first quarter 2016 adjusted segment income of $27 million, compared to $101 million in the first quarter 2015, a decrease of $0.11 per share.
Lower quarterly results at Commercial Portfolio were primarily driven by the absence of earnings from the Midwest Generation business (-$0.12 per share), which was sold in April 2015, partially offset by stronger results from the renewables portfolio (+$0.01 per share).
International Energy
International Energy recognized first quarter 2016 adjusted segment income of $123 million, compared to $36 million in the first quarter 2015, an increase of $0.13 per share.
International Energy's improved quarterly earnings were driven by lower tax expense (+$0.11 per share) and stronger results in Brazil (+$0.05 per share), primarily due to improved hydrology. These results were partially offset by weaker foreign currency exchange rates (-$0.02 per share).
Other
On an adjusted basis, Other primarily includes corporate interest expense not allocated to the business units, results from Duke Energy's captive insurance company, and other investments.
Other recognized a first quarter 2016 adjusted net expense of $68 million, compared to net expense of $30 million in the first quarter 2015. The $0.06 per share decrease was primarily driven by tax adjustments in the prior year (-$0.04 per share) and higher interest expense (-$0.01 per share).
The consolidated adjusted effective tax rate for first quarter 2016 was 26 percent, compared to 32 percent in the first quarter of 2015. Adjusted effective tax rate is a non-GAAP financial measure. The tables on pages 25 and 26 present a reconciliation of reported effective tax rate to adjusted effective tax rate.
Accelerated stock repurchase program
In connection with the transaction to sell the Midwest Generation business to Dynegy for $2.8 billion, which closed on April 2, 2015, Duke Energy completed a $1.5 billion accelerated stock repurchase program (ASR). The program resulted in share retirements of approximately 19.8 million, providing a benefit to the first quarter 2016 results of approximately 4 cents per share.
Earnings conference call for analysts
An earnings conference call for analysts is scheduled for 10 a.m. ET today to discuss Duke Energy's financial performance for the quarter and other business and financial updates.
The conference call will be hosted by Lynn Good, chairman, president and chief executive officer, and Steve Young, executive vice president and chief financial officer.
The call can be accessed via the investors' section (http://www.duke-energy.com/investors/) of Duke Energy's website or by dialing 877-856-1955 in the United States or 719-325-4765 outside the United States. The confirmation code is 7567946. Please call in 10 to 15 minutes prior to the scheduled start time.
A replay of the conference call will be available until 1 p.m. ET, May 13, 2016, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 7567946. A replay and transcript also will be available by accessing the investors' section of the company's website.
Special Items and Non-GAAP Reconciliation
Special items affecting Duke Energy's adjusted diluted EPS for quarterly results in 2016 and 2015 include:
(In millions, except per-share amounts) After-Tax 1Q 2016 1Q 2015 Amount EPS EPS Impact Impact --- ------ ------ First Quarter 2016 ------------------ Cost to achieve, mergers $(74) $(0.11) ------------------------ ---- ------ Cost savings initiatives (12) (0.02) ------------------------ --- ----- Discontinued operations 3 0.01 ----------------------- --- ---- First Quarter 2015 ------------------ Cost to achieve, mergers $(13) $(0.02) ------------------------ ---- ------ Discontinued operations (1) (4) -- -------------------------- --- --- Total diluted EPS impact $(0.12) $(0.02) ------------------------ ------ ------
(1) Amounts exclude the Midwest Generation business operating results of $0.13 per diluted share included in reported income from discontinued operations, and included within adjusted diluted EPS.
Reconciliation of reported to adjusted diluted EPS for the quarter:
1Q 2016 1Q 2015 EPS EPS --- --- Diluted EPS, as reported $1.01 $1.22 ------------------------ ----- ----- Adjustments to reported EPS: Diluted EPS impact of special items and discontinued operations 0.12 0.02 ----------------------------- ---- ---- Diluted EPS, adjusted $1.13 $1.24 --------------------- ----- -----
Non-GAAP financial measures
Management evaluates financial performance in part based on non-GAAP financial measures, adjusted earnings and adjusted diluted EPS. These items represent income from continuing operations net of income (loss) attributable to noncontrolling interests, adjusted for the dollar and per-share impact of special items. Special items represent certain charges and credits, which management believes will not be recurring on a regular basis. The special items for the period ended March 31, 2015, include the operating results of the nonregulated Midwest generation business and Duke Energy Retail Sales (collectively, the Disposal Group) which are classified as discontinued operations for GAAP purposes. Management believes inclusion of the Disposal Group's operating results within adjusted earnings and adjusted diluted EPS results in a better reflection of Duke Energy's financial performance. Costs to achieve mergers includes financing costs related to the Bridge Facility and the mark-to-market unrealized losses related to the forward-starting interest rate swaps used by Duke Energy to manage interest rate exposure for the expected financing of the Piedmont acquisition. The mark-to-market impact of forward-starting interest rate swaps is recognized in GAAP earnings immediately as the contracts do not qualify for hedge accounting or regulatory treatment. Management believes excluding the impact of the mark-to-market losses of the forward-starting interest rate swaps from adjusted earnings better reflects Duke Energy's financial performance and therefore has excluded these impacts from adjusted earnings and adjusted diluted EPS. Management believes the presentation of adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them an additional relevant comparison of Duke Energy's performance across periods. Management uses these non-GAAP financial measures for planning and forecasting and for reporting results to the Board of Directors, employees, stockholders, analysts and investors concerning Duke Energy's financial performance. Adjusted diluted EPS is also used as a basis for employee incentive bonuses. The most directly comparable GAAP measures for adjusted earnings and adjusted diluted EPS are Net Income Attributable to Duke Energy Corporation and Diluted EPS Attributable to Duke Energy Corporation common stockholders.
Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to noncontrolling interests. Segment income, as discussed below, includes intercompany revenues and expenses that are eliminated in the Condensed Consolidated Financial Statements. Management also uses adjusted segment income as a measure of historical and anticipated future segment performance. Adjusted segment income is a non-GAAP financial measure, as it is based upon segment income adjusted for special items, including the operating results of the Disposal Group classified as discontinued operations for GAAP purposes. Management believes the presentation of adjusted segment income as presented provides useful information to investors, as it provides them with an additional relevant comparison of a segment's performance across periods. The most directly comparable GAAP measure for adjusted segment income is segment income, which represents segment income from continuing operations not adjusted for any special items.
Due to the forward-looking nature of any forecasted adjusted earnings guidance, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items for future periods.
Due to the forward-looking nature of any forecasted adjusted segment income or adjusted Other net expenses and any related growth rates for future periods, information to reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures is not available at this time, as the company is unable to forecast all special items or any amounts that may be reported as discontinued operations or extraordinary items for future periods.
Duke Energy's adjusted earnings, adjusted diluted EPS, and adjusted segment income may not be comparable to similarly titled measures of another company because other entities may not calculate the measures in the same manner.
Duke Energy is one of the largest electric power holding companies in the United States. Its regulated utility operations serve approximately 7.4 million electric customers located in six states in the Southeast and Midwest, representing a population of approximately 24 million people. Its Commercial Portfolio and International business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.
Headquartered in Charlotte, N.C., Duke Energy is a S&P 100 Stock Index company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com.
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Forward-Looking Information
This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions and can often be identified by terms and phrases that include "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "guidance," "outlook" or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to: state, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements or climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices; the extent and timing of costs and liabilities to comply with federal and state regulations related to coal ash, including amounts for the required closure of certain ash basins, are uncertain and difficult to estimate; the ability to recover eligible costs, including amounts associated with coal ash basin asset retirement obligations and future significant weather events, and earn an adequate return on investment through the regulatory process; the costs of decommissioning Crystal River Unit 3 and other nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process; credit ratings of the company or its subsidiaries may be different from what is expected; costs and effects of legal and administrative proceedings, settlements, investigations and claims; industrial, commercial and residential growth or decline in service territories or customer bases resulting from variations in customer usage patterns, including energy efficiency efforts and use of alternative energy sources, including self-generation and distributed generation technologies; advancements in technology; additional competition in electric markets and continued industry consolidation; political, economic and regulatory uncertainty in Brazil and other countries in which Duke Energy conducts business; the influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes; the ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources; the impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, and other catastrophic events such as fires, explosions, pandemic health events or other similar occurrences; the inherent risks associated with the operation and potential construction of nuclear facilities, including environmental, health, safety, regulatory and financial risks; the timing and extent of changes in commodity prices, interest rates and foreign currency exchange rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets; the results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations and general economic conditions; declines in the market prices of equity and fixed income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans, and nuclear decommissioning trust funds; construction and development risks associated with the completion of Duke Energy and its subsidiaries' capital investment projects, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules, and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner or at all; changes in rules for regional transmission organizations, including changes in rate designs and new and evolving capacity markets, and risks related to obligations created by the default of other participants; the ability to control operation and maintenance costs; the level of creditworthiness of counterparties to transactions; employee workforce factors, including the potential inability to attract and retain key personnel; the ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent); the performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities; the effect of accounting pronouncements issued periodically by accounting standard-setting bodies; the impact of potential goodwill impairments; the ability to successfully complete future merger, acquisition or divestiture plans; the expected timing and likelihood of completion of the proposed acquisition of Piedmont Natural Gas Company, Inc. (Piedmont), including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed acquisition that could reduce anticipated benefits or cause the parties to abandon the acquisition, and under certain specified circumstance pay a termination fee of $250 million, as well as the ability to successfully integrate the businesses and realize anticipated benefits and the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; and the likelihood, terms and timing of the potential sale of International Energy, excluding the equity investment in National Methanol Company, could change the presentation of certain assets, liabilities and results of operations as assets held for sale, liabilities associated with assets held for sale, and discontinued operations, respectively.
Additional risks and uncertainties are identified and discussed in Duke Energy's and its subsidiaries' reports filed with the SEC and available at the SEC's website at www.sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made; Duke Energy expressly disclaims an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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March 2016 QUARTERLY HIGHLIGHTS (Unaudited) Three Months Ended March 31, ---------------------------- (In millions, except per- share amounts and where noted) 2016 2015 ------------------------- ---- ---- Earnings Per Share - Basic and Diluted Income from continuing operations attributable to Duke Energy Corporation common stockholders Basic $1.00 $1.09 Diluted $1.00 $1.09 Income from discontinued operations attributable to Duke Energy Corporation common stockholders Basic $0.01 $0.13 Diluted $0.01 $0.13 Net income attributable to Duke Energy Corporation common stockholders Basic $1.01 $1.22 Diluted $1.01 $1.22 Weighted-average shares outstanding Basic 689 708 Diluted 689 708 SEGMENT INCOME (LOSS) BY BUSINESS SEGMENT Regulated Utilities $695 $774 International Energy(a) 123 36 Commercial Portfolio 27 7 --- --- Total Reportable Segment Income 845 817 Other Net Expense(b)(c) (154) (43) Intercompany Eliminations - (1) Income from Discontinued Operations, net of tax 3 91 --- --- Net Income Attributable to Duke Energy Corporation $694 $864 ---- ---- CAPITALIZATION Total Common Equity 48% 49% Total Debt 52% 51% Total Debt $43,794 $43,608 Book Value Per Share $57.98 $58.03 Actual Shares Outstanding 689 708 CAPITAL AND INVESTMENT EXPENDITURES Regulated Utilities $1,448 $1,262 International Energy 5 12 Commercial Portfolio 214 122 Other 37 58 Total Capital and Investment Expenditures $1,704 $1,454 ------ ------ Note: Prior period segment income (loss) has been recast to conform with the new segment income measure. (a) Includes a tax benefit of $84 million related to lower income taxes resulting from the decision to divest the International Energy segment combined with more efficient utilization of foreign tax credits, net of the impact of no longer asserting indefinite reinvestment of foreign earnings for the three months ended March 31, 2016. (b) Includes costs to achieve mergers of $74 million for the three months ended March 31, 2016 (net of tax of $46 million) and $13 million for the three months ended March 31, 2015 (net of tax of $8 million). (c) Includes a charge of $12 million for the three months ended March 31, 2016, related to cost savings initiatives (net of tax of $8 million).
March 2016 QUARTERLY HIGHLIGHTS (Unaudited) Three Months Ended March 31, --------- (In millions, except for GWh and MW amounts) 2016 2015 ------------------------ ---- ---- REGULATED UTILITIES Operating Revenues $5,259 $5,723 Operating Expenses 3,967 4,305 Gains on Sales of Other Assets, net 1 7 Operating Income 1,293 1,425 Other Income and Expenses 64 72 Interest Expense 277 275 Income Before Income Taxes 1,080 1,222 Income Tax Expense 385 448 Segment Income $695 $774 Depreciation and Amortization $728 $698 INTERNATIONAL ENERGY Operating Revenues $246 $273 Operating Expenses 154 207 Operating Income 92 66 Other Income and Expenses 16 14 Interest Expense 22 23 Income Before Income Taxes 86 57 Income Tax (Benefit) Expense(a) (39) 20 Less: Income Attributable to Noncontrolling Interests 2 1 Segment Income $123 $36 ---- --- Depreciation and Amortization $22 $23 Sales, GWh 5,880 4,470 Proportional MW Capacity in Operation 4,315 4,335 COMMERCIAL PORTFOLIO Operating Revenues $114 $73 Operating Expenses 111 89 Gains on Sales of Other Assets, net 1 - Operating Income (Loss) 4 (16) Other Income and Expenses 2 2 Interest Expense 12 12 Loss Before Income Taxes (6) (26) Income Tax Benefit (33) (33) Segment Income $27 $7 Depreciation and Amortization $30 $24 Actual Renewable Plant Production, GWh 2,060 1,310 Net Proportional MW Capacity in Operation 1,963 1,415 OTHER Operating Revenues $29 $27 Operating Expenses(b)(c)(d) 92 50 Gains on Sales of Other Assets, net 7 7 Operating Loss (56) (16) Other Income and Expenses 10 1 Interest Expense(e) 205 97 Loss Before Income Taxes (251) (112) Income Tax Benefit(f)(g)(h) (100) (71) Less: Income Attributable to Noncontrolling Interests 3 2 Segment Net Expense $(154) $(43) ----- ---- Depreciation and Amortization $34 $32 Note: Prior period has been recast to conform with the new segment income measure. (a) Includes a tax benefit of $84 million related to lower income taxes resulting from the decision to divest the International Energy segment combined with more efficient utilization of foreign tax credits, net of the impact of no longer asserting indefinite reinvestment of foreign earnings, for the three months ended March 31, 2016. (b) Includes costs to achieve mergers of $19 million for the three months ended March 31, 2016. (c) Includes a charge of $20 million for the three months ended March 31, 2016, related to cost savings initiatives. (d) Includes costs to achieve Progress merger of $21 million for the three months ended March 31, 2015. (e) Includes costs to achieve mergers of $100 million for the three months ended March 31, 2016. (f) Includes a tax benefit related to costs to achieve mergers of $46 million for the three months ended March 31, 2016. (g) Includes a tax benefit related to cost savings initiatives of $8 million for the three months ended March 31, 2016. (h) Includes a tax benefit related to costs to achieve Progress merger of $8 million for the three months ended March 31, 2015.
DUKE ENERGY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except per-share amounts) Three Months Ended March 31, ---------------------------- 2016 2015 ---- ---- Operating Revenues Regulated electric $5,053 $5,457 Nonregulated electric and other 400 377 Regulated natural gas 169 231 Total operating revenues 5,622 6,065 --------------- ----- ----- Operating Expenses Fuel used in electric generation and purchased power - regulated 1,577 1,941 Fuel used in electric generation and purchased power - nonregulated 58 104 Cost of natural gas 60 111 Operation, maintenance and other 1,489 1,426 Depreciation and amortization 814 777 Property and other taxes 297 264 Impairment charges 3 - Total operating expenses 4,298 4,623 --------------- ----- ----- Gains on Sales of Other Assets and Other, net 9 14 Operating Income 1,333 1,456 ---------------- ----- ----- Other Income and Expenses Equity in earnings of unconsolidated affiliates 8 13 Other income and expenses, net 79 74 Total other income and expenses 87 87 ---------------------- --- --- Interest Expense 511 403 ---------------- --- --- Income from Continuing Operations before Income Taxes 909 1,140 Income Tax Expense from Continuing Operations 213 364 ------------------ --- --- Income from Continuing Operations 696 776 Income from Discontinued Operations, net of tax 3 91 ------------------- --- --- Net Income 699 867 Less: Net Income Attributable to Noncontrolling Interests 5 3 ---------------- --- --- Net Income Attributable to Duke Energy Corporation $694 $864 --------------------- ---- ---- Earnings Per Share -Basic and Diluted Income from continuing operations attributable to Duke Energy Corporation common stockholders Basic $1.00 $1.09 Diluted $1.00 $1.09 Income from discontinued operations attributable to Duke Energy Corporation common stockholders Basic $0.01 $0.13 Diluted $0.01 $0.13 Net income attributable to Duke Energy Corporation common stockholders Basic $1.01 $1.22 Diluted $1.01 $1.22 Weighted-average shares outstanding Basic 689 708 Diluted 689 708
DUKE ENERGY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in million, except per-share amounts) March 31, 2016 December 31, 2015 ----------------------------- -------------- ----------------- ASSETS Current Assets Cash and cash equivalents $778 $857 Receivables (net of allowance for doubtful accounts of $18 at March 31, 2016 and December 31, 2015) 609 703 Restricted receivables of variable interest entities (net of allowance for doubtful accounts of $55 at March 31, 2016 and $53 at December 31, 2015) 1,714 1,748 Inventory 3,721 3,810 Regulatory assets 813 877 Other 308 327 Total current assets 7,943 8,322 -------------------- ----- ----- Investments and Other Assets Investments in equity method unconsolidated affiliates 547 499 Nuclear decommissioning trust funds 5,880 5,825 Goodwill 16,349 16,343 Other 3,036 3,042 Total investments and other assets 25,812 25,709 ---------------------------------- ------ ------ Property, Plant and Equipment Cost 113,942 112,826 Accumulated depreciation and amortization (38,154) (37,665) Generation facilities to be retired, net 644 548 Net property, plant and equipment 76,432 75,709 --------------------------------- ------ ------ Regulatory Assets and Deferred Debits Regulatory assets 11,483 11,373 Other 39 43 Total regulatory assets and deferred debits 11,522 11,416 --------------------------- ------ ------ Total Assets $121,709 $121,156 ------------ -------- -------- LIABILITIES AND EQUITY Current Liabilities Accounts payable $2,086 $2,400 Notes payable and commercial paper 3,486 3,633 Taxes accrued 394 348 Interest accrued 481 430 Current maturities of long-term debt 2,075 2,074 Regulatory liabilities 404 400 Other 1,965 2,115 Total current liabilities 10,891 11,400 ------------------------- ------ ------ Long-Term Debt 38,232 37,495 -------------- ------ ------ Deferred Credits and Other Liabilities Deferred income taxes 12,825 12,705 Investment tax credits 493 472 Accrued pension and other post- retirement benefit costs 1,077 1,088 Asset retirement obligations 10,269 10,264 Regulatory liabilities 6,278 6,255 Other 1,703 1,706 Total deferred credits and other liabilities 32,645 32,490 -------------------------------- ------ ------ Commitments and Contingencies Equity Common stock, $0.001 par value, 2 billion shares authorized; 689 million and 688 million shares outstanding at March 31, 2016 and December 31, 2015, respectively 1 1 Additional paid-in capital 37,969 37,968 Retained earnings 2,688 2,564 Accumulated other comprehensive income (766) (806) ------------------------------- ---- ---- Total Duke Energy Corporation stockholder's equity 39,892 39,727 Noncontrolling interests 49 44 ------------------------ --- --- Total equity 39,941 39,771 Total Liabilities and Equity $121,709 $121,156 ---------------------------- -------- --------
DUKE ENERGY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) Three Months Ended March 31, ---------------------------- 2016 2015 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES Net Income $699 $867 Adjustments to reconcile net income to net cash provided by operating activities 965 573 --- --- Net cash provided by operating activities 1,664 1,440 ----- ----- CASH FLOWS FROM INVESTING ACTIVITIES Net cash used in investing activities (1,758) (1,456) ------ ------ CASH FLOWS FROM FINANCING ACTIVITIES Net cash provided by financing activities 15 801 --- --- Net (decrease) increase in cash and cash equivalents (79) 785 Cash and cash equivalents at the beginning of period 857 2,036 Cash and cash equivalents at end of period $778 $2,821 ---- ------
DUKE ENERGY CORPORATION EARNINGS VARIANCES March 2016 YTD vs. Prior Year ($ per share) Regulated International Commercial Utilities Energy Portfolio Other Consolidated 2015 YTD Reported Earnings Per Share, Diluted $1.09 $0.05 $0.01 $(0.06) $1.22 ----- ----- ----- ------ ----- Costs to Achieve, Mergers - - - 0.02 0.02 Midwest Generation Operations (offset in Discontinued Operations) - - 0.13 - 0.13 Discontinued Operations (0.13) 2015 YTD Adjusted Earnings Per Share, Diluted $1.09 $0.05 $0.14 $(0.04) $1.24 Stock repurchase (a) 0.03 - 0.01 - 0.04 Weather (0.10) - - - (0.10) Pricing and Riders (b) 0.07 - - - 0.07 Volume (0.01) - - - (0.01) Wholesale (c) 0.01 - - - 0.01 Operations and Maintenance, net of recoverables (d) (0.01) - - - (0.01) Latin America, including Foreign Exchange Rates (e) - 0.04 - - 0.04 National Methanol Company - (0.01) - - (0.01) Duke Energy Renewables, net of tax (f) - - 0.01 - 0.01 Midwest Generation, net of tax (g) - - (0.12) - (0.12) Interest Expense - - - (0.01) (0.01) Change in effective income tax rate (h) 0.01 0.11 - (0.04) 0.08 Other (i) (0.08) (0.01) - (0.01) (0.10) 2016 YTD Adjusted Earnings Per Share, Diluted $1.01 $0.18 $0.04 $(0.10) $1.13 ----- ----- ----- ------ ----- Cost to Achieve, Mergers - - - (0.11) (0.11) Cost Savings Initiatives - - - (0.02) (0.02) Discontinued Operations 0.01 2016 YTD Reported Earnings Per Share, Diluted $1.01 $0.18 $0.04 $(0.23) $1.01 ----- ----- ----- ------ ----- Note 1: Earnings Per Share amounts are calculated using the consolidated statutory income tax rate. Note 2: Adjusted and Reported Earnings Per Share amounts by segment may not recompute from other published schedules due to rounding. Note 3: Prior year amounts have been recast to conform with the new segment income measure. (a) Due to the decrease in common shares outstanding as a result of stock repurchased and retired under the Accelerated Stock Repurchase Program. Weighted-average diluted shares outstanding decreased from 708 million shares for the three months ended March 31, 2015, to 689 million shares for the three months ended March 31, 2016. (b) Primarily due to higher retail pricing due to lower volumes for Duke Energy Carolinas and Duke Energy Indiana (+$0.03), the NCEMPA rider (+$0.02), higher recoveries on energy efficiency programs in the Carolinas (+$0.01). (c) Primarily due to the implementation of the new 30-year contract with NCEMPA (+$0.03), partially offset by lower sales volumes (-$0.02). (d) Primarily due to increased storm restoration costs and costs related to the NCEMPA asset purchase, partially offset by lower outage costs and cost efficiency initiatives. (e) Primarily due to higher results in Brazil due to improved hydrology (+$0.05), partially offset by weaker foreign currency exchange rates (-$0.02). (f) Primarily due to higher wind production. (g) Due to the absence of earnings from the nonregulated Midwest generation business, which was sold in April 2015. (h) Amount for International Energy includes lower income taxes resulting from the decision to divest the International Energy segment combined with more efficient utilization of foreign tax credits, net of the impact of no longer asserting indefinite reinvestment of foreign earnings. (i) Amount for Regulated Utilities includes increased depreciation and amortization expense (-$0.06) due to higher depreciable base and higher non-income taxes (-$0.02).
Regulated Utilities Quarterly Highlights Supplemental Regulated Utilities Electric Information March 2016 Three Months Ended March 31 --------------------------- 2016 2015 % % Inc.(Dec.) Inc.(Dec.) Weather Normal (2) --------- GWH Sales (1) Residential 21,662 24,030 (9.9%) (0.3%) General Service 17,850 18,282 (2.4%) (1.5%) Industrial 12,272 12,264 0.1% 0.9% Other Energy Sales 146 152 (3.9%) Unbilled Sales (344) (1,046) 67.1% n/a Total Retail Sales 51,586 53,682 (3.9%) (0.4%) Special Sales 11,145 9,519 17.1% Total Consolidated Electric Sales - Regulated Utilities 62,731 63,201 (0.7%) Average Number of Customers (Electric) Residential 6,425,427 6,342,548 1.3% General Service 957,484 947,745 1.0% Industrial 17,936 18,183 (1.4%) Other Energy Sales 23,112 22,952 0.7% Total Regular Sales 7,423,959 7,331,428 1.3% Special Sales 62 65 (4.6%) Total Average Number of Customers - Regulated Utilities 7,424,021 7,331,493 1.3% Sources of Electric Energy (GWh) Generated - Net Output (3) Coal 17,934 20,961 (14.4%) Nuclear 17,999 17,389 3.5% Hydro 1,047 495 111.5% Oil and Natural Gas 16,083 14,271 12.7% Renewable Energy 53 3 1,666.7% Total Generation (4) 53,116 53,119 -% Purchased Power and Net Interchange (5) 12,513 13,384 (6.5%) Total Sources of Energy 65,629 66,503 (1.3%) Less: Line Loss and Company Usage 2,898 3,302 (12.2%) Total GWh Sources 62,731 63,201 (0.7%) Owned MW Capacity (3) Summer 50,157 49,739 Winter 53,346 52,994 Nuclear Capacity Factor (%) (6) 95 94 (1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes. (2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales). (3) Statistics reflect Duke Energy's ownership share of jointly owned stations. (4) Generation by source is reported net of auxiliary power. (5) Purchased power includes renewable energy purchases. (6) Statistics reflect 100% of jointly owned stations.
Regulated Utilities Quarterly Highlights Supplemental Regulated Utilities Electric Information March 2016 Three Months Ended March 31 --------------------------- 2016 2015 % Inc.(Dec.) --------- Heating and Cooling Degree Days Carolinas - Actual Heating Degree Days 1,588 1,904 (16.6%) Cooling Degree Days 28 4 600.0% Variance from Normal -------------------- Heating Degree Days (6.5%) 15.0% n/a Cooling Degree Days 250.0% (60.0%) n/a Midwest - Actual Heating Degree Days 2,435 3,120 (22.0%) Cooling Degree Days - - -% Variance from Normal -------------------- Heating Degree Days (9.4%) 18.6% n/a Cooling Degree Days (100.0%) (100.0%) n/a Florida - Actual Heating Degree Days 401 373 7.5% Cooling Degree Days 199 234 (15.0%) Variance from Normal -------------------- Heating Degree Days 4.2% (4.1%) n/a Cooling Degree Days 7.6% 36.0% n/a
Duke Energy Carolinas Quarterly Highlights Supplemental Regulated Utilities Electric Information March 2016 Three Months Ended March 31 --------------------------- 2016 2015 % % Inc.(Dec.) Inc.(Dec.) Weather Normal (2) --------- GWH Sales (1) Residential 7,580 8,478 (10.6%) General Service 6,664 6,859 (2.8%) Industrial 5,078 5,075 0.1% Other Energy Sales 76 77 (1.3%) Unbilled Sales 5 (489) 101.0% Total Regular Electric Sales 19,403 20,000 (3.0%) 0.3% Special Sales 2,222 2,468 (10.0%) Total Consolidated Electric Sales - Duke Energy Carolinas 21,625 22,468 (3.8%) Average Number of Customers Residential 2,138,535 2,108,669 1.4% General Service 347,329 343,194 1.2% Industrial 6,333 6,471 (2.1%) Other Energy Sales 15,133 14,954 1.2% Total Regular Sales 2,507,330 2,473,288 1.4% Special Sales 24 26 (7.7%) Total Average Number of Customers - Duke Energy Carolinas 2,507,354 2,473,314 1.4% Sources of Electric Energy (GWh) Generated - Net Output (3) Coal 5,579 7,835 (28.8%) Nuclear 10,993 11,316 (2.9%) Hydro 725 257 182.1% Oil and Natural Gas 2,986 2,233 33.7% Renewable Energy 3 3 -% Total Generation (4) 20,286 21,644 (6.3%) Purchased Power and Net Interchange (5) 2,619 2,122 23.4% Total Sources of Energy 22,905 23,766 (3.6%) Less: Line Loss and Company Usage 1,280 1,298 (1.4%) Total GWh Sources 21,625 22,468 (3.8%) Owned MW Capacity (3) Summer 19,678 19,645 Winter 20,383 20,357 Nuclear Capacity Factor (%) (6) 97 95 Heating and Cooling Degree Days Actual Heating Degree Days 1,661 1,941 (14.4%) Cooling Degree Days 19 1 1,800.0% Variance from Normal -------------------- Heating Degree Days (5.9%) 13.1% n/a Cooling Degree Days 171.4% (90.0%) n/a (1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes. (2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales). (3) Statistics reflect Duke Energy's ownership share of jointly owned stations. (4) Generation by source is reported net of auxiliary power. (5) Purchased power includes renewable energy purchases. (6) Statistics reflect 100% of jointly owned stations.
Duke Energy Progress Quarterly Highlights Supplemental Regulated Utilities Electric Information March 2016 Three Months Ended March 31 --------------------------- 2016 2015 % % Inc.(Dec.) Inc.(Dec.) Weather Normal (2) --------- GWH Sales (1) Residential 5,000 5,767 (13.3%) General Service 3,660 3,749 (2.4%) Industrial 2,439 2,437 0.1% Other Energy Sales 24 28 (14.3%) Unbilled Sales (135) (441) 69.4% Total Regular Electric Sales 10,988 11,540 (4.8%) 0.8% Special Sales 6,161 5,225 17.9% Total Consolidated Electric Sales - Duke Energy Progress 17,149 16,765 2.3% Average Number of Customers Residential 1,285,880 1,269,070 1.3% General Service 227,523 224,411 1.4% Industrial 4,159 4,230 (1.7%) Other Energy Sales 1,601 1,688 (5.2%) Total Regular Sales 1,519,163 1,499,399 1.3% Special Sales 15 15 -% Total Average Number of Customers - Duke Energy Progress 1,519,178 1,499,414 1.3% Sources of Electric Energy (GWh) Generated - Net Output (3) Coal 2,107 4,004 (47.4%) Nuclear 7,006 6,073 15.4% Hydro 253 182 39.0% Oil and Natural Gas 6,472 5,821 11.2% Total Generation (4) 15,888 16,080 (1.2%) Purchased Power and Net Interchange (5) 1,765 1,514 16.6% Total Sources of Energy 17,653 17,594 0.3% Less: Line Loss and Company Usage 504 829 (39.2%) Total GWh Sources 17,149 16,765 2.3% Owned MW Capacity (3) Summer 12,935 12,222 Winter 14,034 13,319 Nuclear Capacity Factor (%) (6) 91 92 Heating and Cooling Degree Days Actual Heating Degree Days 1,514 1,867 (18.9%) Cooling Degree Days 36 7 414.3% Variance from Normal -------------------- Heating Degree Days (7.1%) 17.1% n/a Cooling Degree Days 260.0% (36.4%) n/a (1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes. (2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales). (3) Statistics reflect Duke Energy's ownership share of jointly owned stations. (4) Generation by source is reported net of auxiliary power. (5) Purchased power includes renewable energy purchases. (6) Statistics reflect 100% of jointly owned stations.
Duke Energy Florida Quarterly Highlights Supplemental Regulated Utilities Electric Information March 2016 Three Months Ended March 31 --------------------------- 2016 2015 % % Inc.(Dec.) Inc.(Dec.) Weather Normal (2) --------- GWH Sales (1) Residential 4,173 4,104 1.7% General Service 3,241 3,235 0.2% Industrial 752 760 (1.1%) Other Energy Sales 6 6 -% Unbilled Sales (11) 114 (109.6%) Total Regular Electric Sales 8,161 8,219 (0.7%) (1.0%) Special Sales 295 254 16.1% Total Electric Sales -Duke Energy Florida 8,456 8,473 (0.2%) Average Number of Customers Residential 1,541,555 1,516,509 1.7% General Service 194,707 192,560 1.1% Industrial 2,202 2,256 (2.4%) Other Energy Sales 1,536 1,542 (0.4%) Total Regular Sales 1,740,000 1,712,867 1.6% Special Sales 13 15 (13.3%) Total Average Number of Customers -Duke Energy Florida 1,740,013 1,712,882 1.6% Sources of Electric Energy (GWh) Generated - Net Output (3) Coal 1,451 2,153 (32.6%) Oil and Natural Gas 6,123 5,483 11.7% Total Generation (4) 7,574 7,636 (0.8%) Purchased Power and Net Interchange (5) 1,509 1,384 9.0% Total Sources of Energy 9,083 9,020 0.7% Less: Line Loss and Company Usage 627 547 14.6% Total GWh Sources 8,456 8,473 (0.2%) Owned MW Capacity (3) Summer 8,989 9,154 Winter 9,894 10,120 Heating and Cooling Degree Days Actual Heating Degree Days 401 373 7.5% Cooling Degree Days 199 234 (15.0%) Variance from Normal -------------------- Heating Degree Days 4.2% (4.1%) n/a Cooling Degree Days 7.6% 36.05 n/a (1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes. (2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales). (3) Statistics reflect Duke Energy's ownership share of jointly owned stations. (4) Generation by source is reported net of auxiliary power. (5) Purchased power includes renewable energy purchases.
Duke Energy Ohio Quarterly Highlights Supplemental Regulated Utilities Electric Information March 2016 Three Months Ended March 31 --------------------------- 2016 2015 % % Inc.(Dec.) Inc.(Dec.) Weather Normal (2) --------- GWH Sales (1) Residential 2,320 2,681 (13.5%) General Service 2,297 2,363 (2.8%) Industrial 1,444 1,448 (0.3%) Other Energy Sales 27 28 (3.6%) Unbilled Sales (92) (133) 30.8% Total Regular Electric Sales 5,996 6,387 (6.1%) (2.1%) Special Sales 111 380 (70.8%) Total Electric Sales -Duke Energy Ohio 6,107 6,767 (9.8%) Average Number of Customers Residential 753,189 747,619 0.7% General Service 87,441 87,173 0.3% Industrial 2,529 2,536 (0.3%) Other Energy Sales 3,245 3,206 1.2% Total Regular Sales 846,404 840,534 0.7% Special Sales 1 1 -% Total Average Number of Customers -Duke Energy Ohio 846,405 840,535 0.7% Sources of Electric Energy (GWh) Generated - Net Output (3) Coal 928 1,220 (23.9%) Oil and Natural Gas 1 20 (95.0%) Total Generation (4) 929 1,240 (25.1%) Purchased Power and Net Interchange (5) 5,555 5,950 (6.6%) Total Sources of Energy 6,484 7,190 (9.8%) Less: Line Loss and Company Usage 377 423 (10.9%) Total GWh Sources 6,107 6,767 (9.8%) Owned MW Capacity (3) Summer 1,062 1,225 Winter 1,164 1,327 Heating and Cooling Degree Days Actual Heating Degree Days 2,349 2,962 (20.7%) Cooling Degree Days - - -% Variance from Normal -------------------- Heating Degree Days (9.5%) 16.4% n/a Cooling Degree Days (100.0%) (100.0%) n/a (1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes. (2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales). (3) Statistics reflect Duke Energy's ownership share of jointly owned stations. (4) Generation by source is reported net of auxiliary power. (5) Purchased power includes renewable energy purchases.
Duke Energy Ohio Quarterly Highlights Supplemental Regulated Utilities Gas Information March 2016 Three Months Ended March 31 --------------------------- 2016 2015 % % Inc.(Dec.) Inc.(Dec.) Weather Normal (2) --------- MCF Sales (1) Residential 16,697,555 22,178,905 (24.7%) General Service 10,079,678 13,071,081 (22.9%) Industrial 2,478,003 3,075,861 (19.4%) Other Energy Sales 5,825,284 6,216,151 (6.3%) Unbilled Sales (339,000) (353,000) 4.0% Total Gas Sales -Duke Energy Ohio 34,741,520 44,188,998 (21.4%) (9.8%) Average Number of Customers Residential 480,519 478,136 0.5% General Service 45,224 45,340 (0.3%) Industrial 1,699 1,706 (0.4%) Other Energy Sales 143 144 (0.7%) Total Average Number of Gas Customers -Duke Energy Ohio 527,585 525,326 0.4% Heating and Cooling Degree Days Actual Heating Degree Days 2,349 2,962 (20.7%) Cooling Degree Days - - -% Variance from Normal -------------------- Heating Degree Days (9.5%) 16.4% n/a Cooling Degree Days (100.0%) (100.0%) n/a (1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes. (2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales).
Duke Energy Indiana Quarterly Highlights Supplemental Regulated Utilities Electric Information March 2016 Three Months Ended March 31 --------------------------- 2016 2015 % % Inc.(Dec.) Inc.(Dec.) Weather Normal (2) --------- GWH Sales (1) Residential 2,589 3,000 (13.7%) General Service 1,988 2,076 (4.2%) Industrial 2,559 2,544 0.6% Other Energy Sales 13 13 -% Unbilled Sales (111) (97) (14.4%) Total Regular Electric Sales 7,038 7,536 (6.6%) (2.2%) Special Sales 2,356 1,192 97.7% Total Electric Sales -Duke Energy Indiana 9,394 8,728 7.6% Average Number of Customers Residential 706,268 700,681 0.8% General Service 100,484 100,407 0.1% Industrial 2,713 2,690 0.9% Other Energy Sales 1,597 1,562 2.2% Total Regular Sales 811,062 805,340 0.7% Special Sales 9 8 12.5% Total Average Number of Customers -Duke Energy Indiana 811,071 805,348 0.7% Sources of Electric Energy (GWh) Generated - Net Output (3) Coal 7,869 5,749 36.9% Hydro 69 56 23.2% Oil and Natural Gas 501 714 (29.8%) Total Generation (4) 8,439 6,519 29.5% Purchased Power and Net Interchange (5) 1,065 2,414 (55.9%) Total Sources of Energy 9,504 8,933 6.4% Less: Line Loss and Company Usage 110 205 (46.3%) Total GWh Sources 9,394 8,728 7.6% Owned MW Capacity (3) Summer 7,493 7,493 Winter 7,871 7,871 Heating and Cooling Degree Days Actual Heating Degree Days 2,521 3,278 (23.1%) Cooling Degree Days - - -% Variance from Normal -------------------- Heating Degree Days (9.3%) 20.7% n/a Cooling Degree Days (100.0%) (100.0%) n/a (1) Except as indicated in footnote (2), represents non-weather normalized billed sales, with energy delivered but not yet billed (i.e. unbilled sales) reflected as a single amount and not allocated to the respective retail classes. (2) Represents weather normal total retail calendar sales (i.e. billed and unbilled sales). (3) Statistics reflect Duke Energy's ownership share of jointly owned stations. (4) Generation by source is reported net of auxiliary power. (5) Purchased power includes renewable energy purchases.
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION Three Months Ended March 31, 2016 (Dollars in millions, except per-share amounts) Special Items ------------- Adjusted Costs to Cost Savings Discontinued Total Reported Earnings Achieve, Initiatives Operations Adjustments Earnings Mergers --------- --------- ------------- ------------- ------------ --------- SEGMENT INCOME Regulated Utilities $695 $ - $ - $ - $ - $695 International Energy 123 - - - - 123 Commercial Portfolio 27 - - - - 27 Total Reportable Segment Income 845 - - - - 845 Other (68) (74) A (12) B - (86) (154) Total Reportable Segment Income and Other Net Expense 777 (74) (12) - (86) 691 Discontinued Operations - - - 3 C 3 3 Net Income Attributable to Duke Energy Corporation $777 $(74) $(12) $3 $(83) $694 ==== ==== ==== === ==== ==== EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC $1.13 $(0.11) $(0.02) $0.01 $(0.12) $1.01 ===== ====== ====== ===== ====== ===== EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED $1.13 $(0.11) $(0.02) $0.01 $(0.12) $1.01 ===== ====== ====== ===== ====== ===== A - Net of $46 million tax benefit. Includes $1 million recorded within Operating Revenues, $19 million recorded within Operating Expenses and $100 million recorded within Interest Expense on the Condensed Consolidated Statements of Operations. B - Net of $8 million tax benefit. Consists of severance costs recorded within Operation, maintenance and other on the Condensed Consolidated Statements of Operations. C - Recorded in Income (Loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations. Weighted Average Shares (reported and adjusted) - in millions Basic 689 Diluted 689
DUKE ENERGY CORPORATION ADJUSTED TO REPORTED EARNINGS RECONCILIATION Three Months Ended March 31, 2015 (Dollars in millions, except per-share amounts) Special Items ------------- Adjusted Costs to Midwest Discontinued Total Reported Earnings Achieve, Generation Operations Adjustments Earnings Progress Merger Operations --------- ---------------- ----------- ------------- ------------ --------- SEGMENT INCOME Regulated Utilities $774 $ - $ - $ - $ - $774 International Energy 36 - - - - 36 Commercial Portfolio 101 - (94) B - (94) 7 Total Reportable Segment Income 911 - (94) - (94) 817 Other (30) (13) A - - (13) (43) Intercompany Eliminations - - - (1) D (1) (1) --- --- --- --- --- --- Total Reportable Segment Income and Other Net Expense 881 (13) (94) (1) (108) 773 Discontinued Operations - - 94 B (3) C 91 91 --- --- --- --- --- --- Net Income Attributable to Duke Energy Corporation $881 $(13) $ - $(4) $(17) $864 ==== === === === ==== ==== EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC $1.24 $(0.02) $ - $ - $(0.02) $1.22 ===== ====== === === === === ====== ===== EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED $1.24 $(0.02) $ - $ - $(0.02) $1.22 ===== ====== === === === === ====== ===== A - Net of $8 million tax benefit. Recorded within Operating Expenses on the Condensed Consolidated Statements of Operations. B - Operating results of the nonregulated Midwest generation business that had been classified from discontinued operations after adjustment for special items and economic hedges (net of $53 million tax benefit). C - Recorded in Income (Loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations. D - Reverses the impact on eliminations of classifying the nonregulated Midwest generation business as discontinued operations. Weighted Average Shares (reported and adjusted) - in millions Basic 708 Diluted 708
DUKE ENERGY CORPORATION ADJUSTED EFFECTIVE TAX RECONCILIATION Three Months Ended March 31, 2016 (Dollars in Millions) Three Months Ended March 31, 2016 -------------- Balance Effective Tax Rate ------- ------------------ Adjusted Earnings, Pretax Income $1,044 Costs to Achieve, Mergers (120) Cost Savings Initiatives (20) Noncontrolling interests 5 Reported Income From Continuing Operations Before Income Taxes $909 ==== Adjusted Tax Expense $267 26% * Costs to Achieve, Mergers (46) Cost Savings Initiatives (8) Reported Income Tax Expense From Continuing Operations $213 23% ==== *Adjusted effective tax rate is a non-GAAP financial measure as the rate is calculated using pretax earnings and income tax expense, both adjusted for the impact of special items. The most directly comparable GAAP measure for adjusted effective tax rate is reported effective tax rate, which includes the impact of special items.
DUKE ENERGY CORPORATION ADJUSTED EFFECTIVE TAX RECONCILIATION Three Months Ended March 31, 2015 (Dollars in Millions) Three Months Ended March 31, 2015 -------------- Balance Effective Tax Rate ------- ------------------ Adjusted Earnings, Pretax Income $1,305 Costs to Achieve, Mergers (21) Midwest Generation Operations (147) Noncontrolling interests 3 Reported Income From Continuing Operations Before Income Taxes $1,140 ====== Adjusted Tax Expense $425 32% * Costs to Achieve, Mergers (8) Midwest Generation Operations (53) Reported Income Tax Expense From Continuing Operations $364 32% ==== *Adjusted effective tax rate is a non-GAAP financial measure as the rate is calculated using pretax earnings and income tax expense, both adjusted for the impact of special items. The most directly comparable GAAP measure for adjusted effective tax rate is reported effective tax rate, which includes the impact of special items.
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