Duke Energy Indiana, LLC - FORM 8-K - EX-99.1 - 4TH QUARTER 2015 STATISTICAL SUPPLEMENT

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8-K - FORM 8-K - Duke Energy Indiana, LLC	a4q2015statisticalsuppleme.htm

4th Quarter 2015 Statistical Supplement



Table of Contents

DUKE ENERGY CORPORATION (Unaudited)		DUKE ENERGY MONEYPOOL SUPPLEMENT (Unaudited)
3	Consolidating Statements of Operations	14	Schedule of Moneypool Balances
5	Consolidating Balance Sheets
		Non-GAAP Disclosures (Unaudited)
REGULATED UTILITIES (Unaudited)		15	Adjusted to Reported Earnings Reconciliations
7	Consolidating Segment Income	17	Non-GAAP Financial Measures
9	Consolidating Balance Sheets
11	Revenues by Customer Class

DUKE ENERGY OHIO SUPPLEMENT (Unaudited)
12	Consolidating Statements of Operations

This Statistical Supplement should be read in conjunction with Duke Energy's Annual Report on Form 10-K for the year ended December 31, 2015.

DUKE ENERGY CORPORATION

Consolidating Statements of Operations

(Unaudited)



	Twelve Months Ended December 31, 2015
(in millions)	Regulated Utilities		International Energy		Commercial Portfolio			Other			Eliminations / Adjustments			Duke Energy
Operating Revenues
Regulated electric	$	21,521	$	—	$	—		$	4		$	(146	)	$	21,379
Nonregulated electric and other	—		1,088		301			119			36			1,544
Regulated natural gas	541		—		—			—			(5		)	536
Total operating revenues	22,062		1,088		301			123			(115		)	23,459
Operating Expenses
Fuel used in electric generation and purchased power - regulated	7,308		—		—			—			—			7,308
Fuel used in electric generation and purchased power - nonregulated	—		306		14			34			—			354
Cost of natural gas	141		53		—			—			1			195
Operation, maintenance and other	5,260		333		216			173			(111		)	5,871
Depreciation and amortization	2,814		92		104			134			—			3,144
Property and other taxes	1,074		7		19			35			—			1,135
Impairment charges^(a)	101		14		—			6			(1		)	120
Total operating expenses	16,698		805		353			382			(111		)	18,127
Gains on Sales of Other Assets and Other, net	11		6		1			17			—			35
Operating Income (Loss)	5,375		289		(51		)	(242		)	(4		)	5,367
Other Income and Expenses, net^(b)	262		101		6			20			(6		)	383
Interest Expense	1,097		85		44			393			(6		)	1,613
Income (Loss) from Continuing Operations Before Income Taxes	4,540		305		(89		)	(615		)	(4		)	4,137
Income Tax Expense (Benefit) from Continuing Operations^(c)	1,647		74		(92		)	(303		)	—			1,326
Income (Loss) from Continuing Operations	2,893		231		3			(312		)	(4		)	2,811
Less: Net Income (Loss) Attributable to Noncontrolling Interest	—		6		(1		)	10			—			15
Segment Income / Other Net Expense	$	2,893	$	225	$	4		$	(322	)	$	(4	)	$	2,796
Income from Discontinued Operations, net of tax^(d)														20
Net Income Attributable to Duke Energy Corporation														$	2,816

Segment Income / Other Net Expense	$	2,893	$	225	$	4		$	(322	)	$	(4	)	$	2,796
Special Items, Economic Hedges, and Discontinued Operations	79		—		136			137			4			356
Adjusted Earnings^(e)	$	2,972	$	225	$	140		$	(185	)	$	—		$	3,152


(a)	Regulated Utilities includes a pretax charge of $88 million related to the Edwardsport settlement.


(b)	International Energy includes Equity in earnings of unconsolidated affiliates of $74 million, net of tax.


(c)	The amount for Commercial Portfolio includes a tax charge of $41 million resulting from the completion of the sale of the nonregulated Midwest generation business.


(d)	Includes the after-tax charge of $53 million for the litigation reserve related to a settlement agreement reached in a lawsuit related to the nonregulated Midwest generation business.


(e)	See page 15 for a detailed reconciliation of Segment Income / Other Net Expense to Adjusted Earnings.

DUKE ENERGY CORPORATION

Consolidating Statements of Operations

(Unaudited)



	Twelve Months Ended December 31, 2014
(in millions)	Regulated Utilities		International Energy		Commercial Portfolio			Other			Eliminations / Adjustments			Duke Energy
Operating Revenues
Regulated electric	$	21,693	$	—	$	—		$	(2	)	$	(141	)	$	21,550
Nonregulated electric and other	—		1,417		255			107			23			1,802
Regulated natural gas	578		—		—			—			(5		)	573
Total operating revenues	22,271		1,417		255			105			(123		)	23,925
Operating Expenses
Fuel used in electric generation and purchased power - regulated	7,686		—		—			—			—			7,686
Fuel used in electric generation and purchased power - nonregulated	—		486		24			26			(3		)	533
Cost of natural gas	185		63		—			—			—			248
Operation, maintenance and other^(a)	5,205		352		212			197			(110		)	5,856
Depreciation and amortization	2,759		97		92			118			—			3,066
Property and other taxes	1,189		9		19			(4		)	—			1,213
Impairment charges^(b)	2		—		94			(15		)	—			81
Total operating expenses	17,026		1,007		441			322			(113		)	18,683
Gains on Sales of Other Assets and Other, net	4		6		—			6			—			16
Operating Income (Loss)	5,249		416		(186		)	(211		)	(10		)	5,258
Other Income and Expenses, net^(c)	267		190		18			45			(22		)	498
Interest Expense	1,093		93		58			400			(22		)	1,622
Income (Loss) from Continuing Operations Before Income Taxes	4,423		513		(226		)	(566		)	(10		)	4,134
Income Tax Expense (Benefit) from Continuing Operations^(d)	1,628		449		(171		)	(237		)	—			1,669
Income (Loss) from Continuing Operations	2,795		64		(55		)	(329		)	(10		)	2,465
Less: Net Income Attributable to Noncontrolling Interest	—		9		—			5			—			14
Segment Income (Loss) / Other Net Expense	$	2,795	$	55	$	(55	)	$	(334	)	$	(10	)	$	2,451
Loss from Discontinued Operations, Net of tax														(568		)
Net Income Attributable to Duke Energy Corporation														$	1,883

Segment Income (Loss) / Other Net Expense	$	2,795	$	55	$	(55	)	$	(334	)	$	(10	)	$	2,451
Special Items, Economic Hedges, and Discontinued Operations	102		373		164			118			10			767
Adjusted Earnings^(e)	$	2,897	$	428	$	109		$	(216	)	$	—		$	3,218


(a)	Regulated Utilities includes a ligation reserve of $102 million related to the federal grand jury investigation of the February 2014 Dan River coal ash spill and ash basin operations at other North Carolina coal plants.


(b)	The amount for Commercial Portfolio includes an impairment taken related to OVEC.


(c)	International Energy includes Equity in earnings of unconsolidated affiliates of $120 million, net of tax.


(d)	International Energy includes a tax adjustment of $373 million related to a dividend declaration of historical undistributed earnings.


(e)	See page 16 for a detailed reconciliation of Segment Income (Loss) / Other Net Expense to Adjusted Earnings.

DUKE ENERGY CORPORATION

Consolidating Balance Sheets - Assets

(Unaudited)



	December 31, 2015
(in millions)	Regulated Utilities			International Energy			Commercial Portfolio			Other			Eliminations / Adjustments			Duke Energy
Current Assets
Cash and cash equivalents	$	67		$	534		$	18		$	238		$	—		$	857
Receivables, net	453			197			5			48			—			703
Restricted receivables of variable interest entities, net	1,708			—			20			20			—			1,748
Receivables from affiliated companies	117			—			527			3,876			(4,520		)	—
Notes receivable from affiliated companies	103			—			—			1,132			(1,235		)	—
Inventory	3,703			65			18			24			—			3,810
Regulatory assets	795			—			—			82			—			877
Other	383			51			118			(225		)	—			327
Total current assets	7,329			847			706			5,195			(5,755		)	8,322
Investments and Other Assets
Investments in equity method unconsolidated affiliates	2			39			433			25			—			499
Investments and advances (from) to subsidiaries	(53		)	(23		)	(63		)	49,810			(49,671		)	—
Nuclear decommissioning trust funds	5,825			—			—			—			—			5,825
Goodwill	15,950			270			122			—			1			16,343
Other	1,970			185			124			1,237			(474		)	3,042
Total investments and other assets	23,694			471			616			51,072			(50,144		)	25,709
Property, Plant and Equipment
Cost	104,684			2,860			3,591			1,691			—			112,826
Accumulated depreciation and amortization	(35,374		)	(930		)	(439		)	(922		)	—			(37,665		)
Generation facilities to be retired, net	548			—			—			—			—			548
Net property, plant and equipment	69,858			1,930			3,152			769			—			75,709
Regulatory Assets and Deferred Debits
Regulatory assets	10,834			—			—			539			—			11,373
Other	13			—			—			30			—			43
Total regulatory assets and deferred debits	10,847			—			—			569			—			11,416
Total Assets	111,728			3,248			4,474			57,605			(55,899		)	121,156
Segment reclassifications, intercompany balances and other	(166		)	23			(464		)	(55,480		)	56,087			—
Reportable Segment Assets	$	111,562		$	3,271		$	4,010		$	2,125		$	188		$	121,156

DUKE ENERGY CORPORATION

Consolidating Balance Sheets - Liabilities and Equity

(Unaudited)



	December 31, 2015
(in millions)	Regulated Utilities			International Energy			Commercial Portfolio			Other			Eliminations / Adjustments			Duke Energy
Current Liabilities
Accounts payable	$	1,867		$	51		$	106		$	376		$	—		$	2,400
Accounts payable to affiliated companies	3,255			971			77			119			(4,422		)	—
Notes payable to affiliated companies	981			—			—			103			(1,084		)	—
Notes payable and commercial paper	—			—			—			3,633			—			3,633
Taxes accrued	419			66			(212		)	75			—			348
Interest accrued	307			19			—			104			—			430
Current maturities of long-term debt	1,101			48			108			817			—			2,074
Regulatory liabilities	400			—			—			—			—			400
Other	1,552			109			39			515			(100		)	2,115
Total current liabilities	9,882			1,264			118			5,742			(5,606		)	11,400
Long-Term Debt	25,152			653			968			10,722			—			37,495
Long-Term Debt Payable to Affiliated Companies	625			—			—			—			(625		)	—
Deferred Credits and Other Liabilities
Deferred income taxes	14,767			(565		)	360			(1,857		)	—			12,705
Investment tax credits	472			—			—			—			—			472
Accrued pension and other post-retirement benefit costs	688			1			—			399			—			1,088
Asset retirement obligations	10,185			15			63			1			—			10,264
Regulatory liabilities	6,189			—			—			66			—			6,255
Other	1,033			74			254			345			—			1,706
Total deferred credits and other liabilities	33,334			(475		)	677			(1,046		)	—			32,490
Equity
Total Duke Energy Corporation stockholders' equity	42,735			1,769			2,702			42,203			(49,682		)	39,727
Noncontrolling interests	—			37			9			(16		)	14			44
Total equity^(a)	42,735			1,806			2,711			42,187			(49,668		)	39,771
Total Liabilities and Equity	111,728			3,248			4,474			57,605			(55,899		)	121,156
Segment reclassifications, intercompany balances and other	(166		)	23			(464		)	(55,480		)	56,087			—
Reportable Segment Liabilities and Equity	$	111,562		$	3,271		$	4,010		$	2,125		$	188		$	121,156


(a)	As of December 31, 2015, the International Energy segment had a carrying value of approximately $2.7 billion, adjusted to include the cumulative foreign currency translation losses currently classified as accumulated other comprehensive income.

REGULATED UTILITIES

Consolidating Segment Income

(Unaudited)



	Twelve Months Ended December 31, 2015
(in millions)	Duke Energy Carolinas			Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio(a)		Duke Energy Kentucky		Duke Energy Indiana		Eliminations / Adjustments			Regulated Utilities
Operating Revenues
Regulated electric	$	7,229		$	5,290	$	4,977	$	973	$	359	$	2,890	$	(197	)	$	21,521
Regulated natural gas	—			—		—		438		103		—		—			541
Total operating revenues	7,229			5,290		4,977		1,411		462		2,890		(197		)	22,062
Operating Expenses														—
Fuel used in electric generation and purchased power	1,881			2,029		2,195		303		143		982		(225		)	7,308
Cost of natural gas	—			—		—		99		42		—		—			141
Operation, maintenance and other	1,923			1,402		810		315		133		666		11			5,260
Depreciation and amortization	1,044			643		473		182		44		434		(6		)	2,814
Property and other taxes	269			140		352		241		13		61		(2		)	1,074
Impairment charges^(b)	1			5		7		—		—		88		—			101
Total operating expenses	5,118			4,219		3,837		1,140		375		2,231		(222		)	16,698
(Losses) Gains on Sales of Other Assets and Other, net	(1		)	3		—		8		—		1		—			11
Operating Income	2,110			1,074		1,140		279		87		660		25			5,375
Other Income and Expenses, net^(c)	160			71		24		7		1		11		(12		)	262
Interest Expense	412			235		198		64		14		176		(2		)	1,097
Income from Continuing Operations Before Income Taxes	1,858			910		966		222		74		495		15			4,540
Income Tax Expense	682			312		351		77		28		169		28			1,647
Segment Income	$	1,176		$	598	$	615	$	145	$	46	$	326	$	(13	)	$	2,893
Special Items	12			5		1		1		—		60		—			79
Adjusted Earnings^(d)	$	1,188		$	603	$	616	$	146	$	46	$	386	$	(13	)	$	2,972


(a)	Amounts exclude results from the wholly owned subsidiary, Duke Energy Kentucky.


(b)	The amount for Duke Energy Indiana relates to the Edwardsport settlement.


(c)	Includes an equity component of allowance for funds used during construction of $96 million for Duke Energy Carolinas, $47 million for Duke Energy Progress, $7 million for Duke Energy Florida, $3 million for Duke Energy Ohio, and $11 million for Duke Energy Indiana.


(d)	See page 15 for a detailed reconciliation of Regulated Utilities Segment Income to Adjusted Earnings.

REGULATED UTILITIES

Consolidating Segment Income

(Unaudited)



	Twelve Months Ended December 31, 2014
(in millions)	Duke Energy Carolinas		Duke Energy Progress		Duke Energy Florida		Duke Energy Ohio(a)		Duke Energy Kentucky		Duke Energy Indiana		Eliminations /Adjustments			Regulated Utilities
Operating Revenues
Regulated electric	$	7,356	$	5,176	$	4,975	$	947	$	369	$	3,175	$	(305	)	$	21,693
Regulated natural gas	—		—		—		454		124		—		—			578
Total operating revenues	7,356		5,176		4,975		1,401		493		3,175		(305		)	22,271
Operating Expenses
Fuel used in electric generation and purchased power	2,118		2,025		2,158		287		172		1,259		(333		)	7,686
Cost of natural gas	—		—		—		125		60		—		—			185
Operation, maintenance and other^(b)	1,890		1,413		819		287		133		652		11			5,205
Depreciation and amortization	1,009		582		545		167		44		413		(1		)	2,759
Property and other taxes	316		174		343		216		14		128		(2		)	1,189
Impairment charges	—		—		2		—		—		—		—			2
Total operating expenses	5,333		4,194		3,867		1,082		423		2,452		(325		)	17,026
Gains on Sales of Other Assets and Other, net	—		3		1		1		—		—		(1		)	4
Operating Income	2,023		985		1,109		320		70		723		19			5,249
Other Income and Expenses, net^(c)	172		51		20		8		2		22		(8		)	267
Interest Expense	407		234		201		65		16		171		(1		)	1,093
Income from Continuing Operations Before Income Taxes	1,788		802		928		263		56		574		12			4,423
Income Tax Expense	637		304		361		96		21		204		5			1,628
Segment Income	$	1,151	$	498	$	567	$	167	$	35	$	370	$	7		$	2,795
Special Items	72		30		—		—		—		—		—			102
Adjusted Earnings^(d)	$	1,223	$	528	$	567	$	167	$	35	$	370	$	7		$	2,897


(a)	Amounts exclude results from the wholly owned subsidiary, Duke Energy Kentucky.


(b)	Duke Energy Carolinas and Duke Energy Progress include $72 million and $30 million, respectively related to the federal grand jury investigation of the February 2014 Dan River coal ash release and ash basin operations at other North Carolina coal plants.


(c)	Includes an equity component of allowance for funds used during construction of $91 million for Duke Energy Carolinas, $25 million for Duke Energy Progress,


	$4 million for Duke Energy Ohio, and $14 million for Duke Energy Indiana.


(d)	See page 16 for a detailed reconciliation of Regulated Utilities Segment Income to Adjusted Earnings.

REGULATED UTILITIES

Consolidating Balance Sheets - Assets

(Unaudited)



	December 31, 2015
(in millions)	Duke Energy Carolinas			Duke Energy Progress			Duke Energy Florida			Duke Energy Ohio(a)			Duke Energy Kentucky			Duke Energy Indiana			Eliminations / Adjustments(b)			Regulated Utilities
Current Assets
Cash and cash equivalents	$	13		$	15		$	8		$	13		$	9		$	9		$	—		$	67
Receivables, net	142			87			60			59			5			96			4			453
Restricted receivables of variable interest entities, net	596			349			308			—			—			—			455			1,708
Receivables from affiliated companies	113			16			85			19			11			29			(156		)	117
Notes receivable from affiliated companies	163			—			—			—			—			83			(143		)	103
Inventory	1,276			1,088			663			61			44			570			1			3,703
Regulatory assets	305			264			98			17			9			102			—			795
Other	95			113			39			60			38			15			23			383
Total current assets	2,703			1,932			1,261			229			116			904			184			7,329
Investments and Other Assets
Investments in equity method unconsolidated affiliates	—			—			2			—			—			—			—			2
Investments and advances from subsidiaries	(48		)	2			(3		)	(1		)	—			—			(3		)	(53		)
Nuclear decommissioning trust funds	3,050			2,035			740			—			—			—			—			5,825
Goodwill	—			—			—			920			—			—			15,030			15,950
Other	999			485			289			27			6			209			(45		)	1,970
Total investments and other assets	4,001			2,522			1,028			946			6			209			14,982			23,694
Property, Plant and Equipment
Cost	39,398			27,313			15,343			5,670			2,080			14,007			873			104,684
Accumulated depreciation and amortization	(13,521		)	(10,141		)	(4,720		)	(1,583		)	(924		)	(4,484		)	(1		)	(35,374		)
Generation facilities to be retired, net	—			548			—			—			—			—			—			548
Net property, plant and equipment	25,877			17,720			10,623			4,087			1,156			9,523			872			69,858
Regulatory Assets and Deferred Debits
Regulatory assets	2,766			2,667			2,725			445			62			716			1,453			10,834
Other	4			3			2			2			—			2			—			13
Total regulatory assets and deferred debits	2,770			2,670			2,727			447			62			718			1,453			10,847
Total Assets	35,351			24,844			15,639			5,709			1,340			11,354			17,491			111,728
Intercompany balances and other	(94		)	(140		)	(105		)	(19		)	—			(38		)	230			(166		)
Reportable Segment Assets	$	35,257		$	24,704		$	15,534		$	5,690		$	1,340		$	11,316		$	17,721		$	111,562


(a)	Excludes the balances of the wholly owned subsidiary, Duke Energy Kentucky.


(b)	Includes the elimination of intercompany balances, purchase accounting adjustments and restricted receivables related to Cinergy Receivables Company.

REGULATED UTILITIES

Consolidating Balance Sheets - Liabilities and Equity

(Unaudited)



	December 31, 2015
(in millions)	Duke Energy Carolinas			Duke Energy Progress			Duke Energy Florida			Duke Energy Ohio(a)			Duke Energy Kentucky		Duke Energy Indiana			Eliminations / Adjustments(b)			Regulated Utilities
Current Liabilities
Accounts payable	$	753		$	399		$	322		$	176		$	26	$	189		$	2		$	1,867
Accounts payable to affiliated companies	137			162			106			14			14		35			2,787			3,255
Notes payable to affiliated companies	—			209			813			47			56		—			(144		)	981
Taxes accrued	25			15			139			137			11		92			—			419
Interest accrued	95			96			43			15			3		56			(1		)	307
Current maturities of long-term debt	356			2			13			4			102		547			77			1,101
Regulatory liabilities	39			85			200			9			3		62			2			400
Other	519			412			452			54			18		97			—			1,552
Total current liabilities	1,924			1,380			2,088			456			233		1,078			2,723			9,882
Long-Term Debt	7,711			6,366			4,253			1,274			193		3,071			2,284			25,152
Long-Term Debt Payable to Affiliated Companies	300			150			—			—			25		150			—			625
Deferred Credits and Other Liabilities
Deferred income taxes	6,163			3,005			2,478			1,133			290		1,657			41			14,767
Investment tax credits	199			132			—			3			1		138			(1		)	472
Accrued pension and other post-retirement benefit costs	107			262			242			42			12		80			(57		)	688
Asset retirement obligations	3,918			4,567			802			21			104		525			248			10,185
Regulatory liabilities	2,802			1,878			509			192			53		754			1			6,189
Other	621			45			146			137			25		65			(6		)	1,033
Total deferred credits and other liabilities	13,810			9,889			4,177			1,528			485		3,219			226			33,334
Equity	11,606			7,059			5,121			2,451			404		3,836			12,258			42,735
Total Liabilities and Equity	35,351			24,844			15,639			5,709			1,340		11,354			17,491			111,728
Intercompany balances and other	(94		)	(140		)	(105		)	(19		)	—		(38		)	230			(166		)
Reportable Segment Liabilities and Equity	$	35,257		$	24,704		$	15,534		$	5,690		$	1,340	$	11,316		$	17,721		$	111,562


(a)	Excludes the balances of the wholly owned subsidiary, Duke Energy Kentucky.


(b)	Includes the elimination of intercompany balances and purchase accounting adjustments.

REGULATED UTILITIES

Revenues By Customer Class

(Unaudited)



	December 31, 2015
(in millions)	Duke Energy Carolinas			Duke Energy Progress			Duke Energy Florida			Duke Energy Ohio(a)			Duke Energy Kentucky			Duke Energy Indiana			Eliminations / Adjustments			Regulated Utilities
Regulated Electric Revenues
Residential	$	2,991		$	1,943		$	2,651		$	590		$	125		$	991		$	—		$	9,291
General service	2,276			1,339			1,546			299			134			734			—			6,328
Industrial	1,319			664			294			62			53			734			—			3,126
Wholesale	415			1,005			234			—			37			312			—			2,003
Change in unbilled	(15		)	(15		)	(12		)	1			(1		)	(15		)	—			(57		)
Other revenues	243			354			264			21			11			134			(197		)	830
Total Revenues	$	7,229		$	5,290		$	4,977		$	973		$	359		$	2,890		$	(197	)	$	21,521

Regulated Natural Gas Revenues
Residential	$	—		$	—		$	—		$	292		$	70		$	—		$	—		$	362
General service	—			—			—			120			28			—			—			148
Industrial	—			—			—			16			5			—			—			21
Change in unbilled	—			—			—			(4		)	(1		)	—			—			(5		)
Other revenues	—			—			—			14			1			—			—			15
Total Revenues	$	—		$	—		$	—		$	438		$	103		$	—		$	—		$	541



	December 31, 2014
(in millions)	Duke Energy Carolinas			Duke Energy Progress			Duke Energy Florida		Duke Energy Ohio(a)			Duke Energy Kentucky			Duke Energy Indiana			Eliminations / Adjustments			Regulated Utilities
Regulated Electric Revenues
Residential	$	2,951		$	1,913		$	2,628	$	573		$	134		$	1,087		$	—		$	9,286
General service	2,271			1,310			1,573		295			144			811			—			6,404
Industrial	1,267			668			300		56			60			832			—			3,183
Wholesale	385			911			210		—			20			321			—			1,847
Change in unbilled	(27		)	(1		)	13		(4		)	(1		)	(9		)	—			(29		)
Other revenues	509			375			251		27			12			133			(305		)	1,002
Total Revenues	$	7,356		$	5,176		$	4,975	$	947		$	369		$	3,175		$	(305	)	$	21,693

Regulated Natural Gas Revenues
Residential	$	—		$	—		$	—	$	299		$	81		$	—		$	—		$	380
General service	—			—			—		119			35			—			—			154
Industrial	—			—			—		17			5			—			—			22
Change in unbilled	—			—			—		(4		)	(1		)	—			—			(5		)
Other revenues	—			—			—		23			4			—			—			27
Total Revenues	$	—		$	—		$	—	$	454		$	124		$	—		$	—		$	578

(a) Amounts exclude results from the wholly owned subsidiary, Duke Energy Kentucky.

DUKE ENERGY OHIO SUPPLEMENT

Consolidating Statements of Operations

(Unaudited)



	Twelve Months Ended December 31, 2015
	Regulated Utilities				Commercial Portfolio(a)			Other			Eliminations			Duke Energy Ohio
(in millions)	Ohio Transmission & Distribution		Duke Energy Kentucky
Operating Revenues
Regulated electric	$	973	$	359	$	—		$	—		$	(1	)	$	1,331
Nonregulated electric and other	—		—		14			19			—			33
Regulated natural gas	438		103		—			—			—			541
Total operating revenues	1,411		462		14			19			(1		)	1,905
Operating Expenses
Fuel used in electric generation and purchased power - regulated	303		143		—			—			—			446
Fuel used in electric generation and purchased power - nonregulated	—		—		14			33			—			47
Cost of natural gas	99		42		—			—			—			141
Operation, maintenance and other	315		133		12			35			—			495
Depreciation and amortization	182		44		—			1			—			227
Property and other taxes	241		13		1			(1		)	—			254
Total operating expenses	1,140		375		27			68			—			1,610
Gain on Sales of Other Assets and Other, net	8		—		—			—			—			8
Operating Income (Loss)	279		87		(13		)	(49		)	(1		)	303
Other Income and Expenses, net	7		1		—			(2		)	—			6
Interest Expense	64		14		—			1			—			79
Income (Loss) from Continuing Operations Before Income Taxes	222		74		(13		)	(52		)	(1		)	230
Income Tax Expense (Benefit) from Continuing Operations	77		28		(5		)	(19		)	—			81
Segment Income (Loss) / Other Net Expense	$	145	$	46	$	(8	)	$	(33	)	$	(1	)	$	149
Income from Discontinued Operations, net of tax^(b)														23
Net Income														$	172


(a)	Subsequent to the sale of the nonregulated Midwest generation business, beginning in the second quarter of 2015, all Duke Energy Ohio results of operations are presented in Regulated Utilities and Other.


(b)	Includes the after-tax charge of $53 million for the litigation reserve related to a settlement agreement reached in a lawsuit related to the nonregulated Midwest generation business.

DUKE ENERGY OHIO SUPPLEMENT

Consolidating Statements of Operations

(Unaudited)



	Twelve Months Ended December 31, 2014
	Regulated Utilities				Commercial Portfolio			Other			Duke Energy Ohio
(in millions)	Ohio Transmission & Distribution		Duke Energy Kentucky
Operating Revenues
Regulated electric	$	947	$	369	$	—		$	—		$	1,316
Nonregulated electric and other	—		—		19			—			19
Regulated natural gas	454		124		—			—			578
Total operating revenues	1,401		493		19			—			1,913
Operating Expenses
Fuel used in electric generation and purchased power - regulated	287		172		—			—			459
Fuel used in electric generation and purchased power - nonregulated	—		—		25			—			25
Cost of natural gas	125		60		—			—			185
Operation, maintenance and other	287		133		78			18			516
Depreciation and amortization	167		44		2			1			214
Property and other taxes	216		14		3			1			234
Impairment charges^(a)	—		—		94			—			94
Total operating expenses	1,082		423		202			20			1,727
Gain on Sales of Other Assets and Other, net	1		—		—			—			1
Operating Income (Loss)	320		70		(183		)	(20		)	187
Other Income and Expenses, net	8		2		—			—			10
Interest Expense	65		16		5			—			86
Income (Loss) from Continuing Operations before Income Taxes	263		56		(188		)	(20		)	111
Income Tax Expense (Benefit) from Continuing Operations	96		21		(67		)	(7		)	43
Segment Income (Loss) / Other Net Expense	$	167	$	35	$	(121	)	$	(13	)	$	68
Loss from Discontinued Operations, net of tax											(563		)
Net Loss											$	(495	)


(a)	The amount for Commercial Portfolio includes an impairment charge related to OVEC.

DUKE ENERGY MONEYPOOL SUPPLEMENT

Schedule of Moneypool Balances

(Unaudited)



	December 31, 2015
(in millions)	Duke Energy(a)			Duke Energy Carolinas			Duke Energy Progress			Duke Energy Florida			Duke Energy Ohio(b)			Duke Energy Kentucky			Duke Energy Indiana			Consolidated
Moneypool lendings (borrowings) of commercial paper^(c)	$	1,607		$	(300	)	$	(333	)	$	(709	)	$	(41	)	$	(74	)	$	(150	)	$	—
Moneypool (borrowings) lendings^(d)	(102		)	163			(27		)	(104		)	(6		)	(7		)	83			—


(a)	Duke Energy only includes Duke Energy Corporation (the Parent) and Duke Energy Business Services (DEBS).


(b)	Excludes amounts of from the wholly owned subsidiary, Duke Energy Kentucky.


(c)	Duke Energy issues commercial paper and loans a portion of the proceeds through the moneypool to the Subsidiary Public Utilities.


(d)	Duke Energy participates in a moneypool arrangement with the Subsidiary Public Utilities. Under the arrangement, short-term loans may be provided to affiliates. The Parent may loan funds through the moneypool but is prohibited from borrowing funds. DEBS is permitted to both borrow and loan funds into the moneypool. Borrowings presented for Duke Energy are borrowed by DEBS.

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

Twelve Months Ended December 31, 2015

(Dollars in millions, except per-share amounts)



				Special Items
	Adjusted Earnings			Costs to Achieve, Mergers				Edwardsport Settlement				Midwest Generation Operations				Ash Basin Settlement and Penalties				Cost Savings Initiatives				Discontinued Operations				Total Adjustments			Reported Earnings
SEGMENT INCOME

Regulated Utilities	$	2,972		$	—			$	(58	)	B	$	—			$	(11	)	D	$	(10	)	E	$	—			$	(79	)	$	2,893

International Energy	225			—				—				—				—				—				—				—			225

Commercial Portfolio	140			—				—				(94		)	C	—				(1		)	F	(41		)	H	(136		)	4

Total Reportable Segment Income	3,337			—				(58		)		(94		)		(11		)		(11		)		(41		)		(215		)	3,122

Other	(185		)	(60		)	A	—				—				—				(77		)	G	—				(137		)	(322		)

Intercompany Eliminations	—			—				—				—				—				—				(4		)	I	(4		)	(4		)

Total Reportable Segment Income and Other Net Expense	3,152			(60		)		(58		)		(94		)		(11		)		(88		)		(45		)		(356		)	2,796

Discontinued Operations	—			—				—				94			C	—				—				(74		)	J	20			20

Net Income Attributable to Duke Energy Corporation	$	3,152		$	(60	)		$	(58	)		$	—			$	(11	)		$	(88	)		$	(119	)		$	(336	)	$	2,816

EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC	$	4.54		$	(0.09	)		$	(0.08	)		$	—			$	(0.02	)		$	(0.13	)		$	(0.17	)		$	(0.49	)	$	4.05

EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED	$	4.54		$	(0.09	)		$	(0.08	)		$	—			$	(0.02	)		$	(0.13	)		$	(0.17	)		$	(0.49	)	$	4.05

A - Net of $37 million tax benefit. Recorded within Operating Expenses and Interest Expenses on the Consolidated Statements of Operations.

B - Net of $35 million tax benefit. $88 million recorded within Impairment charges and $5 million recorded within Other income and expenses, net on the Duke Energy Indiana Consolidated Statements of Operations.

C - 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).

D - Net of $3 million tax benefit. Recorded within Operation, maintenance and other on the Consolidated Statements of Operations. Includes $8 million and $6 million at Duke Energy Carolinas and Duke Energy Progress, respectively.

E - Net of $6 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations. Includes $7 million at Duke Energy Carolinas, $4 million at Duke Energy Progress, $2 million at Duke Energy Florida, $1 million at Duke Energy Ohio and $2 million at Duke Energy Indiana.

F - Net of $1 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations.

G - Net of $47 million tax benefit. Primarily consists of severance costs recorded within Operation, maintenance and other on the Consolidated Statements of Operations.

H - State tax expense resulting from the completion of the sale of the nonregulated Midwest generation business.

I - Reverses the impact on eliminations of classifying the nonregulated Midwest generation business as discontinued operations.

J - Recorded in Income (Loss) From Discontinued Operations, net of tax on the Consolidated Statements of Operations, and includes the impact of a litigation reserve related to the nonregulated Midwest generation business.

Weighted Average Shares (reported and adjusted) - in millions

Basic 694

Diluted 694

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

Twelve Months Ended December 31, 2014

(Dollars in millions, except per-share amounts)



				Special Items
	Adjusted Earnings			Costs to Achieve, Progress Merger				Asset Impairment				Midwest Generation Operations				Litigation Reserve				Asset Sales			International Tax Adjustment				Economic Hedges (Mark-to-Market) *				Discontinued Operations				Total Adjustments			Reported Earnings
SEGMENT INCOME

Regulated Utilities	$	2,897		$	—			$	—			$	—			$	(102	)	J	$	—		$	—			$	—			$	—			$	(102	)	$	2,795

International Energy	428			—				—				—				—				—			(373		)	H	—				—				(373		)	55

Commercial Portfolio	109			—				(59		)	F	(114		)	C	—				—			—				(6		)	B	15			I	(164		)	(55		)

Total Reportable Segment Income	3,434			—				(59		)		(114		)		(102		)		—			(373		)		(6		)		15				(639		)	2,795

Other	(216		)	(127		)	A	—				—				—				9		E	—				—				—				(118		)	(334		)

Intercompany Eliminations	—			—				—				—				—				—			—				—				(10		)	G	(10		)	(10		)

Total Reportable Segment Income and Other Net Expense	3,218			(127		)		(59		)		(114		)		(102		)		9			(373		)		(6		)		5				(767		)	2,451

Discontinued Operations	—			—				—				114			C	—				—			—				—				(682		)	D	(568		)	(568		)

Net Income Attributable to Duke Energy Corporation	$	3,218		$	(127	)		$	(59	)		$	—			$	(102	)		$	9		$	(373	)		$	(6	)		$	(677	)		$	(1,335	)	$	1,883

EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC	$	4.55		$	(0.18	)		$	(0.08	)		$	—			$	(0.14	)		$	0.01		$	(0.53	)		$	(0.01	)		$	(0.96	)		$	(1.89	)	$	2.66

EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED	$	4.55		$	(0.18	)		$	(0.08	)		$	—			$	(0.14	)		$	0.01		$	(0.53	)		$	(0.01	)		$	(0.96	)		$	(1.89	)	$	2.66

A - Net of $78 million tax benefit. $5 million recorded as a decrease in Operating Revenues, $198 million recorded within Operating Expenses and $2 million recorded within Interest Expense on the Consolidated Statements of Operations.

B - Net of $3 million tax benefit. Recorded within Operating Revenues on the Consolidated Statements of Operations.

C - Midwest Generation Operations reclassifies the operating results of the nonregulated Midwest generation business that had been classified as discontinued operations after adjustment for special items and economic hedges from discontinued operations to the Commercial Power segment (net of $71 million tax benefit).

D - Recorded in Income (loss) From Discontinued Operations, net of tax on the Consolidated Statements of Operations. Includes the impairment of the nonregulated Midwest generation business, the mark-to-market of economic hedges of the nonregulated Midwest generation business and certain costs associated with a contract settlement.

E - Net of $5 million tax expense. Recorded in Other Income and Expenses on the Consolidated Statements of Operations.

F - Net of $35 million tax benefit. Recorded in impairment charges on the Consolidated Statements of Operations.

G - Reverses the impact on eliminations of classifying the nonregulated Midwest generation business as discontinued operations.

H - Deferred tax impact resulting from the decision to repatriate International Energy's historic undistributed foreign earnings, included within Income Tax Expense on the Consolidated Statement of Operations.

I - State tax benefit resulting from the planned disposition of the nonregulated Midwest generation business.

J - Recorded within Operating, maintenance and other (Operating Expenses) on the Consolidated Statements of Operations.

Weighted Average Shares (reported and adjusted) - in millions

Basic 707

Diluted 707

* Mark-to-market adjustments reflect the impact of derivative contracts, which are used in Duke Energy’s hedging of a portion of the economic value of its generation assets in the Commercial Portfolio segment and also relate to existing derivative positions that may have tenors beyond the planned disposal date of the nonregulated Midwest generation business. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory treatment. The economic value of generation assets is subject to fluctuations in fair value due to market price volatility of input and output commodities (e.g. coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes of the derivative contracts from adjusted earnings until settlement better matches the financial impacts of the derivative contract with the portion of economic value of the underlying hedged asset. However, due to the divestiture of the nonregulated Midwest generation business as mentioned above, certain derivative positions have tenors beyond the planned disposal date of these assets. As such, management has excluded settlements of these derivative positions from adjusted diluted EPS as these realized gains and losses more closely relate to the loss on disposal of these assets. Management believes that the presentation of adjusted diluted EPS Attributable to Duke Energy Corporation provides useful information to investors, as it provides them an additional relevant comparison of Duke Energy Corporation's performance across periods.

DUKE ENERGY CORPORATION

Non-GAAP Financial Measures

Management evaluates financial performance in part based on the non-GAAP financial measures, adjusted earnings and adjusted diluted earnings per share (EPS). These items are measured as income from continuing operations net of income (loss) attributable to non-controlling interests, adjusted for the dollar and per-share impact of mark-to-market impacts of economic hedges in the Commercial Portfolio segment and special items including the operating results of the Midwest Generation business (Disposal Group) classified as discontinued operations for GAAP purposes. Special items represent certain charges and credits, which management believes will not be recurring on a regular basis, although it is reasonably possible such charges and credits could recur. Operating results of the Disposal Group sold to Dynegy are reported as discontinued operations, including a portion of the mark-to-market adjustments associated with derivative contracts. Management believes that including the operating results of the Disposal Group reported as discontinued operations better reflects its financial performance and therefore has included these results in adjusted earnings and adjusted diluted EPS prior to the sale of the Disposal Group. Additionally, as a result of completing the sale of the Disposal Group during the second quarter of 2015, state income tax expense increased as state income tax apportionments changed. The additional tax expense was recognized in Continuing Operations on a GAAP basis. This impact to state income taxes has been excluded from the Commercial Portfolio segment for adjusted diluted EPS purposes as management believes these impacts are incidental to the sale of the Disposal Group. Derivative contracts are used in Duke Energy’s hedging of a portion of the economic value of its generation assets in the Commercial Portfolio segment. The mark-to-market impact of derivative contracts is recognized in GAAP earnings immediately and, if associated with the Disposal Group, classified as discontinued operations, as such derivative contracts do not qualify for hedge accounting or regulatory treatment. The economic value of generation assets is subject to fluctuations in fair value due to market price volatility of input and output commodities (e.g. coal, electricity, natural gas). Economic hedging involves both purchases and sales of those input and output commodities related to generation assets. Operations of the generation assets are accounted for under the accrual method. Management believes excluding impacts of mark-to-market changes of the derivative contracts from adjusted earnings until settlement better matches the financial impacts of the derivative contract with the portion of economic value of the underlying hedged asset. 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, shareholders, 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 shareholders, which include the dollar and per share impact of special items, mark-to-market impacts of economic hedges in the Commercial Portfolio segment and discontinued operations.

Management evaluates segment performance based on segment income. Segment income is defined as income from continuing operations net of income attributable to non-controlling interests. Segment income, includes intercompany revenues and expenses that are eliminated in the 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 the mark-to-market impacts of economic hedges in the Commercial Portfolio segment and 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, including any special items and the mark-to-market impacts of economic hedges in the Commercial Portfolio segment.

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 Indiana, LLC - FORM 8-K - EX-99.1 - 4TH QUARTER 2015 STATISTICAL SUPPLEMENT - March 15, 2016

Attached files