Duke Energy 2013 Annual Report Download - page 17

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
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 and mark-to-market impacts
of economic hedges in the Commercial Power segment. Management believes
the presentation of adjusted segment income 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
mark-to-market impacts of economic hedges in the Commercial Power segment.
The following is a reconciliation of segment income, net income and diluted EPS to adjusted segment income, adjusted income and adjusted diluted EPS for
2013, 2012 and 2011:
Year Ended December 31, 2013
(in millions, except per share amounts)
Regulated
Utilities
International
Energy
Commercial
Power
Total
Reportable
Segments Other
Duke
Energy
Per
Diluted
Share
Adjusted segment income $ 2,776 $ 408 $ 15 $ 3,199 $ (128) $ 3,071 $ 4.35
Crystal River Unit 3 charges (215) — — (215) — (215) (0.31)
Costs to achieve Progress Energy merger — — — — (184) (184) (0.26)
Nuclear development charges (57) — — (57) — (57) (0.08)
Litigation reserve — — — — (14) (14) (0.02)
Economic hedges (Mark-to-market) — — (3) (3) — (3) (0.01)
Asset sales — — (15) (15) 65 50 0.07
Segment income (loss) $ 2,504 $ 408 $ (3) $ 2,909 $ (261) $ 2,648
Income from Discontinued Operations 17 0.02
Net Income Attributable to Duke Energy $ 2,665 $ 3.76
Year Ended December 31, 2012
(in millions, except per share amounts)
Regulated
Utilities
International
Energy
Commercial
Power
Total
Reportable
Segments Other
Duke
Energy
Per
Diluted
Share
Adjusted segment income $ 2,086 $ 439 $ 93 $2,618 $ (135) $ 2,483 $ 4.32
Edwardsport impairment and other charges (402) — — (402) — (402) (0.70)
Costs to achieve Progress Energy merger — — — — (397) (397) (0.70)
Economic hedges (Mark-to-market) — — (6) (6) — (6) (0.01)
Democratic National Convention Host Committee support — — — — (6) (6) (0.01)
Employee severance and office consolidation 60 — — 60 — 60 0.11
Segment income $ 1,744 $ 439 $ 87 $2,270 $ (538) 1,732
Income from Discontinued Operations 36 0.06
Net Income Attributable to Duke Energy $ 1,768 $ 3.07
Year Ended December 31, 2011
(in millions, except per share amounts)
Regulated
Utilities
International
Energy
Commercial
Power
Total
Reportable
Segments Other
Duke
Energy
Per
Diluted
Share
Adjusted segment income $ 1,316 $ 466 $186 $1,968 $ (25) $ 1,943 $ 4.38
Edwardsport impairment and other charges (135) — — (135) — (135) (0.30)
Emission allowance impairment — — (51) (51) — (51) (0.12)
Costs to achieve Progress Energy merger — — — — (51) (51) (0.12)
Economic hedges (Mark-to-market) — — (1) (1) — (1) (0.01)
Segment income $ 1,181 $ 466 $134 $1,781 $ (76) 1,705
Income from Discontinued Operations 1 —
Net Income Attributable to Duke Energy $ 1,706 $ 3.83