Increase (decrease) in plan assets



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| FINANCIAL STATEMENTS | EMPLOYEE BENEFIT PLANS |

  
15. EMPLOYEE BENEFIT PLANSDEFINED BENEFIT RETIREMENT PLANSDuke Energy and certain subsidiaries maintain, and the Subsidiary Registrants participate in, qualified and non-qualified, non-contributory defined benefit retirement plans. Duke Energy's policy is to fund amounts on an actuarial basis to provide assets sufficient to meet benefit payments to be paid to plan participants.The following table includes information related to the Duke Energy Registrants' contributions to its qualified defined benefit pension plans.

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|  | Nine Months Ended September 30, 2022 |
|  |  |  | Duke |  |  | Duke |  | Duke |  | Duke |  | Duke |  |  |
|  | Duke |  | Energy |  | Progress | Energy |  | Energy |  | Energy |  | Energy |  |  |
| (in millions) | Energy |  | Carolinas |  | Energy | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont |
| Contributions made | $ | 58  |  |  | $ | 15  |  |  | $ | 13  |  | $ | 8  |  |  | $ | 5  |  |  | $ | 3  |  |  | $ | 5  |  |  | $ | 2  |  |

Duke Energy uses a December 31 measurement date for its qualified non-contributory defined benefit retirement plan assets and obligations. However, because Duke Energy believes it is probable in 2022 that total lump-sum benefit payments will exceed the settlement threshold, which is defined as the sum of the service cost and interest cost on projected benefit obligation components of net periodic pension costs, Duke Energy remeasured the plan assets and plan obligations associated with one of its qualified pension plans as of September 30, 2022. The discount rate used for the remeasurement was 5.7% as of September 30, 2022. The cash balance interest crediting rate was 4.5% as of September 30, 2022. The interest rate for lump sum and annuity conversions was updated to reflect current market conditions. All other assumptions used for the September 30, 2022, remeasurement were consistent with the measurement as of December 31, 2021.As a result of the remeasurement, Duke Energy recognized a remeasurement loss of $276 million, of which $266 million was recorded in Regulatory Assets within Other Noncurrent Assets and $10 million was recorded in Accumulated Other Comprehensive Loss within the Condensed Consolidated Balance Sheets as of September 30, 2022. The remeasurement loss, which represents a decrease in funded status, reflects a decrease of $1,198 million in the fair value of plan assets and a decrease of $922 million in the projected benefit obligation. As the result of settlement accounting, Duke Energy recognized settlement charges of $66 million, of which $55 million was recorded to Regulatory Assets within Other Noncurrent Assets on the Condensed Consolidated Balance Sheets and $11 million was recorded to Other Income and Expenses, net, within the Condensed Consolidated Statement of Operations as of September 30, 2022. Settlement charges recognized by the Subsidiary Registrants as of September 30, 2022, were $28 million for Duke Energy Carolinas, $16 million for Duke Energy Progress, $5 million for Duke Energy Florida, $4 million for Duke Energy Indiana, $2 million for Duke Energy Ohio and $11 million for Piedmont. QUALIFIED PENSION PLANSThe following tables include the components of net periodic pension costs for qualified pension plans. 

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|  | Three Months Ended September 30, 2022 |
|  |  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |  |
|  | Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |  |
| (in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont |
| Service cost | $ | 39  |  |  | $ | 12  |  |  | $ | 11  |  |  | $ | 6  |  |  | $ | 4  |  |  | $ | 1  |  |  | $ | 3  |  |  | $ | 1  |  |
| Interest cost on projected benefit obligation | 58  |  |  | 14  |  |  | 19  |  |  | 9  |  |  | 10  |  |  | 3  |  |  | 4  |  |  | 2  |  |
| Expected return on plan assets | (140) |  |  | (38) |  |  | (46) |  |  | (22) |  |  | (24) |  |  | (6) |  |  | (9) |  |  | (6) |  |
| Amortization of actuarial loss | 24  |  |  | 5  |  |  | 6  |  |  | 3  |  |  | 3  |  |  | 2  |  |  | 3  |  |  | 2  |  |
| Amortization of prior service credit | (5) |  |  | (1) |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | (2) |  |
| Amortization of settlement charges | 14  |  |  | 3  |  |  | 5  |  |  | 4  |  |  | 1  |  |  | 2  |  |  | 1  |  |  | 2  |  |
| Net periodic pension costs | $ | (10) |  |  | $ | (5) |  |  | $ | (5) |  |  | $ | —  |  |  | $ | (6) |  |  | $ | 2  |  |  | $ | 2  |  |  | $ | (1) |  |



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|  | Three Months Ended September 30, 2021 |
|  |  |  | Duke |  |  |  | Duke |  | Duke |  | Duke |  | Duke |  |  |
|  | Duke |  | Energy |  | Progress |  | Energy |  | Energy |  | Energy |  | Energy |  |  |
| (in millions) | Energy |  | Carolinas |  | Energy |  | Progress |  | Florida |  | Ohio |  | Indiana |  | Piedmont |
| Service cost | $ | 43  |  |  | $ | 14  |  |  | $ | 13  |  |  | $ | 7  |  |  | $ | 5  |  |  | $ | 2  |  |  | $ | 2  |  |  | $ | 1  |  |
| Interest cost on projected benefit obligation | 55  |  |  | 13  |  |  | 17  |  |  | 8  |  |  | 10  |  |  | 2  |  |  | 5  |  |  | 2  |  |
| Expected return on plan assets | (139) |  |  | (36) |  |  | (47) |  |  | (21) |  |  | (25) |  |  | (7) |  |  | (10) |  |  | (5) |  |
| Amortization of actuarial loss | 33  |  |  | 7  |  |  | 10  |  |  | 5  |  |  | 5  |  |  | 2  |  |  | 3  |  |  | 2  |  |
| Amortization of prior service credit | (7) |  |  | (2) |  |  | (1) |  |  | —  |  |  | (1) |  |  | —  |  |  | —  |  |  | (1) |  |
| Amortization of settlement charges | 2  |  |  | 1  |  |  | 1  |  |  | —  |  |  | —  |  |  | —  |  |  | —  |  |  | 1  |  |
| Net periodic pension costs | $ | (13) |  |  | $ | (3) |  |  | $ | (7) |  |  | $ | (1) |  |  | $ | (6) |  |  | $ | (1) |  |  | $ | —  |  |  | $ | —  |  |

88
