Duke Energy 2015 Annual Report Download - page 48

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PART II
ITEM 6. SELECTED FINANCIAL DATA
The following table provides selected financial data for the years of 2011 through 2015.
(in millions, except per share amounts) 2015 2014 2013 2012 2011
Statement of Operations(a)
Total operating revenues $ 23,459 $ 23,925 $ 22,756 $ 17,912 $ 12,412
Operating income 5,367 5,258 4,854 2,911 2,475
Income from continuing operations 2,811 2,465 2,590 1,611 1,508
Income (loss) from discontinued operations, net of tax 20 (576) 86 171 206
Net income 2,831 1,889 2,676 1,782 1,714
Net income attributable to Duke Energy Corporation 2,816 1,883 2,665 1,768 1,706
Common Stock Data
Income from continuing operations attributable to Duke Energy Corporation common stockholders(b)
Basic $ 4.02 $ 3.46 $ 3.64 $ 2.77 $ 3.34
Diluted 4.02 3.46 3.63 2.77 3.34
Income (loss) from discontinued operations attributable to Duke Energy Corporation common stockholders(b)
Basic $ 0.03 $ (0.80) $ 0.13 $ 0.30 $ 0.49
Diluted 0.03 (0.80) 0.13 0.30 0.49
Net income attributable to Duke Energy Corporation common stockholders(b)
Basic $ 4.05 $ 2.66 $ 3.77 $ 3.07 $ 3.83
Diluted 4.05 2.66 3.76 3.07 3.83
Dividends declared per share of common stock(b) 3.24 3.15 3.09 3.03 2.97
Balance Sheet
Total assets(c) $ 120,976 $120,557 $ 114,779 $ 113,856 $ 62,526
Long-term debt including capital leases and redeemable preferred stock of subsidiaries, less current maturities(c) 37,495 37,061 38,152 36,444 18,679
(a) Significant transactions reflected in the results above include: (i) 2014 impairment of the Disposal Group (see Note 2 to the Consolidated Financial Statements, “Acquisitions and Dispositions”); (ii) 2014 incremental tax
expense resulting from the decision to repatriate all cumulative historical undistributed foreign earnings (see Note 22 to the Consolidated Financial Statements, “Income Taxes”); (iii) 2014 increase in the litigation reserve
related to the criminal investigation of the Dan River coal ash release (see Note 5 to the Consolidated Financial Statements, “Commitments and Contingencies”); (iv) 2013 charges related to Crystal River Unit 3 and nuclear
development costs (see Note 4 to the Consolidated Financial Statements, “Regulatory Matters”); (v) the 2012 merger with Progress Energy; (vi) costs to achieve mergers in 2015, 2014, 2013, 2012 and 2011; and (vii) 2012
and 2011 pretax impairment and other charges related to the Edwardsport Integrated Gasification Combined Cycle (IGCC) project of $628 million and $222 million, respectively.
(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.
(c) During 2015, Duke Energy adopted new accounting guidance related to the presentation of debt issuance costs on the balance sheet. As a result of the adoption, Total Assets and Long-term debt including capital leases
and redeemable preferred stock of subsidiaries, less current maturities were recasted to conform to the new presentation. The impact to 2013, 2012 and 2011 was not material. See Note 1 to the Consolidated Financial
Statements, “Summary of Significant Accounting Policies,” for additional information related the new accounting standard.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management’s Discussion and Analysis includes financial information
prepared in accordance with generally accepted accounting principles (GAAP)
in the United States (U.S.), as well as certain non-GAAP financial measures
such as adjusted earnings, adjusted earnings per share and adjusted segment
income, discussed below. Generally, a non-GAAP financial measure is a
numerical measure of financial performance, financial position or cash flows
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 financial measures should be viewed as a supplement to,
and not a substitute for, financial 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 filed by Duke
Energy Corporation (collectively with its subsidiaries, Duke Energy) and its
subsidiaries Duke Energy Carolinas, LLC (Duke Energy Carolinas), Progress
Energy, Inc. (Progress Energy), Duke Energy Progress, LLC (formerly Duke
Energy Progress, Inc.) (Duke Energy Progress), Duke Energy Florida, LLC
(formerly Duke Energy Florida, Inc.) (Duke Energy Florida), Duke Energy Ohio,
Inc. (Duke Energy Ohio) and Duke Energy Indiana, LLC (formerly Duke Energy
Indiana, Inc.) (Duke Energy Indiana) (collectively referred to as the Subsidiary
Registrants). 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 is an energy company headquartered in Charlotte, North
Carolina. Duke Energy operates in the U.S. primarily through its wholly owned
subsidiaries, Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida,
Duke Energy Ohio, and Duke Energy Indiana, as well as in Latin America.
When discussing Duke Energy’s consolidated financial information, it
necessarily includes the results of the Subsidiary Registrants, which, along with
Duke Energy, are collectively referred to as the Duke Energy Registrants.
Management’s Discussion and Analysis should be read in conjunction
with the Consolidated Financial Statements and Notes for the years ended
December 31, 2015, 2014 and 2013.
Executive Overview
Acquisition of Piedmont Natural Gas
On October 24, 2015, Duke Energy entered into an Agreement and
Plan of Merger (Merger Agreement) with Piedmont Natural Gas Company,
Inc., (Piedmont) a North Carolina corporation. Under the terms of the Merger
Agreement, Duke Energy will acquire Piedmont for approximately $4.9 billion in
cash. Upon closing, Piedmont will become a wholly owned subsidiary of Duke
Energy.