Duke Energy 2015 Annual Report Download - page 174

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PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. •
DUKE ENERGY PROGRESS, LLC • DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC.
Combined Notes To Consolidated Financial Statements – (Continued)
The following table presents Duke Energy’s investments in unconsolidated affiliates accounted for under the equity method, as well as the respective equity in
earnings, by segment.
Years Ended December 31,
2015 2014 2013
(in millions) Investments Equity in earnings Investments Equity in earnings Equity in earnings
Regulated Utilities $ 2 $ (4) $ 3 $ (3) $ (1)
International Energy 39 74 69 120 110
Commercial Portfolio 433 (3) 258 10 7
Other 25 2 28 3 6
Total $ 499 $ 69 $ 358 $ 130 $ 122
During the years ended December 31, 2015, 2014 and 2013, Duke Energy
received distributions from equity investments of $104 million, $154 million and
$144 million, respectively, which are included in Other assets within Cash Flows
from Operating Activities on the Consolidated Statements of Cash Flows.
Significant investments in affiliates accounted for under the equity
method are discussed below.
International Energy
Duke Energy owns a 25 percent indirect interest in NMC, which owns and
operates a methanol and MTBE business in Jubail, Saudi Arabia. International
Energy’s economic ownership interest will decrease to 17.5 percent upon
successful startup of NMC’s polyacetal production facility, which is expected to
occur in January 2017.
Commercial Portfolio
Investments accounted for under the equity method primarily consist of
Duke Energy’s approximate 50 percent ownership interest in the five Catamount
Sweetwater, LLC wind farm projects (Phase I-V), and DS Cornerstone, LLC. All
of these entities own wind power projects in the United States. Duke Energy
also owns a 50 percent interest in Duke American Transmission Co., LLC, which
builds, owns and operates electric transmission facilities in North America.
Duke Energy also owns a 40 percent and 7.5 percent interest in Atlantic Coast
Pipeline, LLC and Sabal Trail Transmission, LLC, respectively, which will build
and own natural gas pipelines.
Other
On December 31, 2013, Duke Energy completed the sale of its 50 percent
ownership interest in DukeNet, which owned and operated telecommunications
businesses, to Time Warner Cable, Inc. After retiring existing DukeNet debt and
payment of transaction expenses, Duke Energy received $215 million in cash
proceeds and recorded a $105 million pretax gain in the fourth quarter of 2013.