Duke Energy 2012 Annual Report Download - page 52

32
PART II
ITEM 6. SELECTED FINANCIAL DATA
(in millions, except per-share amounts) 2012 2011 2010 2009 2008
Statement of Operations(a)
Total operating revenues $ 19,624 $14,529 $14,272 $12,731 $13,207
Operating income 3,126 2,777 2,461 2,249 2,511
Income from continuing operations 1,746 1,713 1,320 1,073 1,275
Net income 1,782 1,714 1,323 1,085 1,358
Net income attributable to Duke Energy Corporation 1,768 1,706 1,320 1,075 1,362
Common Stock Data
Income from continuing operations attributable to Duke Energy Corporation common shareholders(b)
Basic $ 3.01 $ 3.83 $ 2.99 $ 2.46 $ 3.03
Diluted 3.01 3.83 2.99 2.46 3.03
Net income attributable to Duke Energy Corporation common shareholders(b)
Basic $ 3.07 $ 3.83 $ 3.00 $ 2.49 $ 3.23
Diluted 3.07 3.83 3.00 2.49 3.22
Dividends declared per share(b) 3.03 2.97 2.91 2.82 2.70
Balance Sheet
Total assets $ 113,856 $62,526 $59,090 $57,040 $53,077
Long-term debt including capital leases, VIEs and redeemable preferred stock of subsidiaries, less current maturities 36,444 18,679 17,935 16,113 13,250
(a) Signifi cant transactions refl ected in the results above include: (i) the 2012 merger with Progress Energy and (ii) 2012 and 2011 pre-tax impairment and other charges related to the Edwardsport IGCC project (see Note 4 to the
Consolidated Financial Statements, “Regulatory Matters”); and (iii) 2010 impairment of goodwill and other assets (see Note 12 to the Consolidated Financial Statements, “Goodwill, Intangible Assets and Impairments”).
(b) On July 2, 2012, immediately prior to the merger with Progress Energy, Duke Energy executed a one-for-three reverse stock split. All share and earnings per share amounts are presented as if the one-for-three reverse stock
split had been effective at the beginning of the earliest period presented.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management’s Discussion and Analysis includes fi nancial information
prepared in accordance with generally accepted accounting principles (GAAP)
in the United States (U.S.), as well as certain non-GAAP fi nancial measures
such as adjusted earnings and adjusted earnings per share, discussed below.
Generally, a non-GAAP fi nancial measure is a numerical measure of fi nancial
performance, fi nancial position or cash fl ows that excludes (or includes)
amounts that are included in (or excluded from) the most directly comparable
measure calculated and presented in accordance with GAAP. The non-GAAP
fi nancial measures should be viewed as a supplement to, and not a substitute
for, fi nancial measures presented in accordance with GAAP. Non-GAAP
measures as presented herein may not be comparable to similarly titled
measures used by other companies.
The following combined Management’s Discussion and Analysis of
Financial Condition and Results of Operations is separately fi led by Duke Energy,
Duke Energy Carolinas, Progress Energy, Progress Energy Carolinas, Progress
Energy Florida, Duke Energy Ohio and Duke Energy Indiana. However, none of the
registrants makes any representation as to information related solely to Duke
Energy or the Subsidiary Registrants of Duke Energy other than itself.
DUKE ENERGY
Duke Energy Corporation (collectively with its subsidiaries, Duke Energy)
is an energy company headquartered in Charlotte, North Carolina. Duke
Energy operates in the United States (U.S.) primarily through its wholly owned
subsidiaries, Duke Energy Carolinas, LLC (Duke Energy Carolinas), Carolina
Power & Light Company d/b/a Progress Energy Carolinas, Inc. (Progress Energy
Carolinas), Florida Power Corporation d/b/a Progress Energy Florida, Inc.
(Progress Energy Florida), Duke Energy Ohio, Inc. (Duke Energy Ohio), and Duke
Energy Indiana, Inc. (Duke Energy Indiana), as well as in Latin America through
International Energy.
When discussing Duke Energy’s consolidated fi nancial information, it
necessarily includes the results of its six separate subsidiary registrants, Duke
Energy Carolinas, Progress Energy, Inc. (Progress Energy), Progress Energy
Carolinas, Progress Energy Florida, Duke Energy Ohio and Duke Energy Indiana
(collectively referred to as the Subsidiary Registrants), which, along with Duke
Energy, are collectively referred to as the Duke Energy Registrants.
On July 2, 2012, Duke Energy merged with Progress Energy, with Duke
Energy continuing as the surviving corporation, and Progress Energy becoming
a wholly owned subsidiary of Duke Energy. Progress Energy Carolinas and
Progress Energy Florida, Progress Energy’s regulated utility subsidiaries,
are now indirect wholly owned subsidiaries of Duke Energy. Duke Energy’s
consolidated fi nancial statements include Progress Energy, Progress Energy
Carolinas and Progress Energy Florida activity from July 2, 2012, forward.
Management’s Discussion and Analysis should be read in conjunction
with the Consolidated Financial Statements and Notes for the years ended
December 31, 2012, 2011, and 2010.
EXECUTIVE OVERVIEW
Merger with Progress Energy
On July 2, 2012, Duke Energy completed the merger contemplated by the
Agreement and Plan of Merger (Merger Agreement), among Diamond Acquisition
Corporation, a North Carolina corporation and Duke Energy’s wholly owned
subsidiary (Merger Sub) and Progress Energy, Inc. (Progress Energy), a North
Carolina corporation engaged in the regulated utility business of generation,
transmission and distribution and sale of electricity in portions of North
Carolina, South Carolina and Florida. As a result of the merger, Merger Sub
was merged into Progress Energy and Progress Energy became a wholly owned
subsidiary of Duke Energy.
The merger between Duke Energy and Progress Energy provides increased
scale and diversity with potentially enhanced access to capital over the long
term and a greater ability to undertake the signifi cant construction programs
necessary to respond to increasing environmental regulation, plant retirements
and customer demand growth. Duke Energy’s business risk profi le is expected
to improve over time due to the increased proportion of the business that is
regulated. Additionally, cost savings, effi ciencies and other benefi ts are expected
from the combined operations.