Gains on sales of other assets



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| FINANCIAL STATEMENTS |  |

DUKE ENERGY CAROLINAS, LLCCondensed Consolidated Statements of Cash Flows(Unaudited)

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|  | Nine Months Ended |
|  | September 30, |
| (in millions) | 2022 |  | 2021 |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |  |
| Net income | $ | 1,292  |  |  | $ | 1,070  |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |
| Depreciation and amortization (including amortization of nuclear fuel) | 1,335  |  |  | 1,295  |  |
| Equity component of AFUDC | (75) |  |  | (46) |  |
| Gains on sales of other assets | —  |  |  | (1) |  |
| Impairment of assets and other charges | (3) |  |  | 238  |  |
| Deferred income taxes | 230  |  |  | (146) |  |
|  |  |  |  |
|  |  |  |  |
| Contributions to qualified pension plans | (15) |  |  | —  |  |
| Payments for asset retirement obligations | (137) |  |  | (132) |  |
| Provision for rate refunds | (55) |  |  | (29) |  |
| (Increase) decrease in |  |  |  |
| Net realized and unrealized mark-to-market and hedging transactions | —  |  |  | (1) |  |
| Receivables | (17) |  |  | (172) |  |
| Receivables from affiliated companies | (107) |  |  | 39  |  |
| Inventory | (86) |  |  | 41  |  |
| Other current assets(a) | (1,139) |  |  | (153) |  |
| Increase (decrease) in |  |  |  |
| Accounts payable | 104  |  |  | (254) |  |
| Accounts payable to affiliated companies | (88) |  |  | (15) |  |
| Taxes accrued | (9) |  |  | 315  |  |
| Other current liabilities | 279  |  |  | 72  |  |
| Other assets | 22  |  |  | 52  |  |
| Other liabilities | (269) |  |  | 167  |  |
| Net cash provided by operating activities | 1,262  |  |  | 2,340  |  |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |  |
| Capital expenditures | (2,313) |  |  | (1,947) |  |
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|  |  |  |  |
| Purchases of debt and equity securities | (2,083) |  |  | (2,465) |  |
| Proceeds from sales and maturities of debt and equity securities | 2,083  |  |  | 2,465  |  |
|  |  |  |  |
| Other | (185) |  |  | (122) |  |
| Net cash used in investing activities | (2,498) |  |  | (2,069) |  |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |  |
| Proceeds from the issuance of long-term debt | 1,352  |  |  | 1,367  |  |
| Payments for the redemption of long-term debt | (389) |  |  | (616) |  |
| Notes payable to affiliated companies | 358  |  |  | (421) |  |
| Distributions to parent | (50) |  |  | (600) |  |
| Other | (1) |  |  | (1) |  |
| Net cash provided by (used in) financing activities | 1,270  |  |  | (271) |  |
| Net increase in cash, cash equivalents and restricted cash | 34  |  |  | —  |  |
| Cash, cash equivalents and restricted cash at beginning of period | 8  |  |  | 21  |  |
| Cash, cash equivalents and restricted cash at end of period | $ | 42  |  |  | $ | 21  |  |
| Supplemental Disclosures: |  |  |  |
| Significant non-cash transactions: |  |  |  |
| Accrued capital expenditures | $ | 460  |  |  | $ | 308  |  |

(a)    Includes approximately $1.1 billion of under-collected deferred fuel regulatory assets for the nine months ended September 30, 2022See Notes to Condensed Consolidated Financial Statements17
