Joint owner ownership percentage



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| FINANCIAL STATEMENTS | ORGANIZATION AND BASIS OF PRESENTATION |

  


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|   | December 31, 2021 |
|  |  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |  |
|  | Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |  |
| (in millions)  | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont |
| Materials and supplies  | $ | 2,397  |  |  | $ | 793  |  |  | $ | 1,067  |  |  | $ | 729  |  |  | $ | 338  |  |  | $ | 80  |  |  | $ | 311  |  |  | $ | 14  |  |
| Coal | 486  |  |  | 195  |  |  | 167  |  |  | 94  |  |  | 73  |  |  | 19  |  |  | 105  |  |  | —  |  |
| Natural gas, oil and other fuel | 316  |  |  | 38  |  |  | 164  |  |  | 98  |  |  | 66  |  |  | 17  |  |  | 2  |  |  | 95  |  |
| Total inventory  | $ | 3,199  |  |  | $ | 1,026  |  |  | $ | 1,398  |  |  | $ | 921  |  |  | $ | 477  |  |  | $ | 116  |  |  | $ | 418  |  |  | $ | 109  |  |

OTHER NONCURRENT ASSETSDuke Energy, through a nonregulated subsidiary, was the winner of the Carolina Long Bay offshore wind auction in May 2022 and recorded an asset of $150 million related to the arrangement in Other within Other noncurrent assets.NEW ACCOUNTING STANDARDSNo new accounting standards were adopted by the Duke Energy Registrants in 2022.2. BUSINESS SEGMENTSDuke EnergyDuke Energy's segment structure includes the following segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure and Commercial Renewables. The Electric Utilities and Infrastructure segment primarily includes Duke Energy's regulated electric utilities in the Carolinas, Florida and the Midwest. On January 28, 2021, Duke Energy executed an agreement providing for an investment by an affiliate of GIC in Duke Energy Indiana in exchange for a 19.9% minority interest issued by Duke Energy Indiana Holdco, LLC, the holding company for Duke Energy Indiana. The transaction will be completed following two closings for an aggregate purchase price of approximately $2 billion. The first closing, which occurred on September 8, 2021, resulted in Duke Energy Indiana Holdco, LLC issuing 11.05% of its membership interests in exchange for approximately $1,025 million or 50% of the purchase price. Duke Energy retained indirect control of these assets, and, therefore, no gain or loss was recognized on the Condensed Consolidated Statements of Operations. Duke Energy has the discretion to determine the timing of the second closing, but it will occur no later than January 2023. At the second closing, Duke Energy will issue and sell additional membership interests such that GIC will own 19.9% of the membership interests for the remaining 50% of the purchase price.The Gas Utilities and Infrastructure segment includes Piedmont, Duke Energy's natural gas local distribution companies in Ohio and Kentucky and Duke Energy's natural gas storage, midstream pipeline and renewable natural gas investments.The Commercial Renewables segment is primarily comprised of nonregulated utility-scale wind and solar generation assets located throughout the U.S. See Note 1 for information on the strategic review of the Commercial Renewables business segment. Duke Energy continued to monitor recoverability of its renewable merchant plants located in the ERCOT West market and in the PJM West market during the third quarter of 2022 due to fluctuating market pricing and long-term forecasted energy prices. The assets were not impaired as of September 30, 2022, because the carrying value of approximately $192 million continued to be supported by the expected cash flows. Duke Energy has a 51% ownership interest in these assets.The remainder of Duke Energy’s operations is presented as Other, which is primarily comprised of interest expense on holding company debt, unallocated corporate costs, Duke Energy’s wholly owned captive insurance company, Bison, and Duke Energy's ownership interest in National Methanol Company.Business segment information is presented in the following tables. Segment assets presented exclude intercompany assets. 

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|  | Three Months Ended September 30, 2022 |
|  | Electric |  | Gas |  |  |  | Total |  |  |  |  |  |  |
|  | Utilities and |  | Utilities and |  | Commercial |  | Reportable |  |  |  |  |  |  |
| (in millions) | Infrastructure |  | Infrastructure |  | Renewables |  | Segments |  | Other |  | Eliminations |  | Total |
| Unaffiliated revenues | $ | 7,431  |  |  | $ | 404  |  |  | $ | 127  |  |  | $ | 7,962  |  |  | $ | 6  |  |  | $ | —  |  |  | $ | 7,968  |  |
| Intersegment revenues | 8  |  |  | 23  |  |  | 3  |  |  | 34  |  |  | 23  |  |  | (57) |  |  | —  |  |
| Total revenues | $ | 7,439  |  |  | $ | 427  |  |  | $ | 130  |  |  | $ | 7,996  |  |  | $ | 29  |  |  | $ | (57) |  |  | $ | 7,968  |  |
| Segment income (loss)(a) | $ | 1,540  |  |  | $ | 4  |  |  | $ | 2  |  |  | $ | 1,546  |  |  | $ | (186) |  |  | $ | —  |  |  | $ | 1,360  |  |
| Less: Noncontrolling interests |  |  |  |  |  |  |  |  |  |  |  |  | 9  |  |
| Add: Preferred stock dividend |  |  |  |  |  |  |  |  |  |  |  |  | 39  |  |
| Income from discontinued operations, net of tax(b) |  |  |  |  |  |  |  |  |  |  |  |  | 23  |  |
| Net Income |  |  |  |  |  |  |  |  |  |  |  |  | $ | 1,413  |  |
| Segment assets | $ | 149,518  |  |  | $ | 15,800  |  |  | $ | 7,507  |  |  | $ | 172,825  |  |  | $ | 3,519  |  |  | $ | (4) |  |  | $ | 176,340  |  |

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