The following excerpt is from the company's .
Table of Contents
DUKE ENERGY CORPORATION (Unaudited)
Recasted Segment Income for Interim Periods
Non-GAAP Disclosures (Unaudited)
Adjusted to Reported Earnings Reconciliations
Non-GAAP Financial Measures
(in millions)
GAAP Reported Segment Income
Adjustment
Recasted GAAP Reported Segment Income
Adjusted Segment Income
Recasted Adjusted Segment Income
Three Months Ended March 31, 2015
Regulated Utilities
International Energy
Commercial Portfolio
Three Months Ended June 30, 2015
Six Months Ended June 30, 2015
Three Months Ended September 30, 2015
Nine Months Ended September 30, 2015
Three Months Ended December 31, 2015
During the first quarter of 2016, the Duke Energy Corporation (Duke Energy) chief operating decision maker 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. The adjustment recasts Duke Energy's historical segment measure to reflect the segment measure change. Income tax levelization is recorded within Income tax expense on the Condensed Consolidated Statements of Operations.
ADJUSTED TO REPORTED EARNINGS RECONCILIATION
Three Months Ended March 31, 2015
(Dollars in millions, except per-share amounts)
Special Items
Adjusted Earnings
Costs to Achieve, Progress Merger
Midwest Generation Operations
Discontinued Operations
Total Adjustments
SEGMENT INCOME
Total Reportable Segment Income
Intercompany Eliminations
Total Reportable Segment Income and Other Net Expense
Net Income (Loss) Attributable to Duke Energy Corporation
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED
- Net of $8 million tax benefit. Recorded within Operating Expenses on the Condensed Consolidated Statements of Operations.
- 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).
- Recorded in Income (Loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.
- 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
- Recorded in Income (Loss) From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations, and includes the impact of a litigation reserve related to the nonregulated Midwest generation business.
- Reverses the impact on eliminations of classifying the nonregulated Midwest generation business as discontinued operations.
State tax expense resulting from the completion of the sale of the nonregulated Midwest generation business.
Basic 692
Diluted 692
- Net of $16 million tax benefit. Recorded within Operating Expenses on the Condensed Consolidated Statements of Operations.
- State tax expense resulting from the completion of the sale of the nonregulated Midwest generation business.
Basic 700
Diluted 700
Edwardsport Settlement
Ash Basin Settlement
Economic Hedges (Mark-to-Market) *
- Net of $9 million tax benefit. Recorded within Operating Expenses on the Condensed Consolidated Statements of Operations.
- Net of $34 million tax benefit. $85 million recorded within Impairment charges and $5 million recorded within Other income and expenses, net on the Duke Energy Indiana Condensed Consolidated Statements of Operations.
- Net of $3 million tax benefit. Recorded within Operation, maintenance and other on the Condensed Consolidated Statements of Operations. Includes $1 million and $6 million at Duke Energy Carolinas and Duke Energy Progress, respectively.
- Recorded within Operating Revenues on the Condensed Consolidated Statements of Operations.
- Recorded in (Loss) Income From Discontinued Operations, net of tax on the Condensed Consolidated Statements of Operations.
Basic 688
Diluted 688
* 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...
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