2016 Q3 Form 10-Q Financial Statement

#000132616016000411 Filed on November 04, 2016

View on sec.gov

Income Statement

Concept 2016 Q3 2015 Q3
Revenue $6.576B $6.202B
YoY Change 6.03% -3.02%
Cost Of Revenue $2.037B $2.134B
YoY Change -4.55% -1.16%
Gross Profit $4.539B $4.349B
YoY Change 4.37% 2.67%
Gross Profit Margin 69.02% 70.12%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $979.0M $896.0M
YoY Change 9.26% 0.34%
% of Gross Profit 21.57% 20.6%
Operating Expenses $2.581B $2.554B
YoY Change 1.06% -2.52%
Operating Profit $1.954B $1.606B
YoY Change 21.67% -0.8%
Interest Expense $464.0M $402.0M
YoY Change 15.42% -0.74%
% of Operating Profit 23.75% 25.03%
Other Income/Expense, Net $26.00M $74.00M
YoY Change -64.86% -45.99%
Pretax Income $1.516B $1.360B
YoY Change 11.47% 0.67%
Income Tax $515.0M $420.0M
% Of Pretax Income 33.97% 30.88%
Net Earnings $1.176B $932.0M
YoY Change 26.18% -26.84%
Net Earnings / Revenue 17.88% 15.03%
Basic Earnings Per Share $1.70 $1.35
Diluted Earnings Per Share $1.70 $1.35
COMMON SHARES
Basic Shares Outstanding 689.0M shares 688.0M shares
Diluted Shares Outstanding 691.0M shares 688.0M shares

Balance Sheet

Concept 2016 Q3 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $6.223B $1.370B
YoY Change 354.23% -29.99%
Cash & Equivalents $5.716B $1.370B
Short-Term Investments $44.00M
Other Short-Term Assets $1.238B $2.529B
YoY Change -51.05% -27.64%
Inventory $3.351B $3.537B
Prepaid Expenses
Receivables $2.722B $2.759B
Other Receivables $0.00 $0.00
Total Short-Term Assets $13.53B $10.20B
YoY Change 32.75% -11.92%
LONG-TERM ASSETS
Property, Plant & Equipment $78.22B $73.78B
YoY Change 6.02% 6.01%
Goodwill $16.35B $16.31B
YoY Change 0.26% -0.12%
Intangibles
YoY Change
Long-Term Investments $626.0M $501.0M
YoY Change 24.95% -83.99%
Other Assets $2.948B $3.205B
YoY Change -8.02% -2.49%
Total Long-Term Assets $116.2B $110.8B
YoY Change 4.79% 2.55%
TOTAL ASSETS
Total Short-Term Assets $13.53B $10.20B
Total Long-Term Assets $116.2B $110.8B
Total Assets $129.7B $121.0B
YoY Change 7.15% 1.15%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.138B $2.078B
YoY Change 2.89% 15.38%
Accrued Expenses $1.140B $1.111B
YoY Change 2.61% -5.85%
Deferred Revenue
YoY Change
Short-Term Debt $3.011B $2.419B
YoY Change 24.47% 35.37%
Long-Term Debt Due $3.201B $2.536B
YoY Change 26.22% 119.38%
Total Short-Term Liabilities $12.08B $10.52B
YoY Change 14.83% 27.45%
LONG-TERM LIABILITIES
Long-Term Debt $43.96B $37.67B
YoY Change 16.72% -2.67%
Other Long-Term Liabilities $19.41B $18.57B
YoY Change 4.56% 4.13%
Total Long-Term Liabilities $43.96B $37.67B
YoY Change 16.72% -2.67%
TOTAL LIABILITIES
Total Short-Term Liabilities $12.08B $10.52B
Total Long-Term Liabilities $43.96B $37.67B
Total Liabilities $56.04B $48.18B
YoY Change 16.31% 2.62%
SHAREHOLDERS EQUITY
Retained Earnings $3.212B $2.656B
YoY Change 20.93% 7.14%
Common Stock $38.00B $37.95B
YoY Change 0.12% -3.64%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $40.49B $39.83B
YoY Change
Total Liabilities & Shareholders Equity $129.7B $121.0B
YoY Change 7.15% 1.15%

Cashflow Statement

Concept 2016 Q3 2015 Q3
OPERATING ACTIVITIES
Net Income $1.176B $932.0M
YoY Change 26.18% -26.84%
Depreciation, Depletion And Amortization $979.0M $896.0M
YoY Change 9.26% 0.34%
Cash From Operating Activities $2.416B $2.517B
YoY Change -4.01% -1.22%
INVESTING ACTIVITIES
Capital Expenditures -$1.859B -$1.580B
YoY Change 17.66% 16.61%
Acquisitions
YoY Change
Other Investing Activities -$88.00M -$1.417B
YoY Change -93.79% 11708.33%
Cash From Investing Activities -$1.947B -$2.997B
YoY Change -35.04% 119.24%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 5.045B 890.0M
YoY Change 466.85% -170.75%
NET CHANGE
Cash From Operating Activities 2.416B 2.517B
Cash From Investing Activities -1.947B -2.997B
Cash From Financing Activities 5.045B 890.0M
Net Change In Cash 5.514B 410.0M
YoY Change 1244.88% -632.47%
FREE CASH FLOW
Cash From Operating Activities $2.416B $2.517B
Capital Expenditures -$1.859B -$1.580B
Free Cash Flow $4.275B $4.097B
YoY Change 4.34% 4.97%

Facts In Submission

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us-gaap Employee Service Share Based Compensation Allocation Of Recognized Period Costs Capitalized Amount
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us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Settlements
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us-gaap Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Inputs Reconciliation Settlements
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us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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us-gaap Income Loss From Continuing Operations Including Portion Attributable To Noncontrolling Interest
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us-gaap Other Comprehensive Income Unrealized Gain Loss On Derivatives Arising During Period Net Of Tax
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us-gaap Nature Of Operations
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;font-weight:bold;">NATURE OF OPERATIONS AND BASIS OF CONSOLIDATION</font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Duke Energy Corporation (collectively with its subsidiaries, Duke Energy) is an energy company headquartered in Charlotte, North Carolina, subject to regulation by the Federal Energy Regulatory Commission (FERC). Duke Energy operates in the United States (U.S.) and Latin America primarily through its direct and indirect subsidiaries. See Note 2 for information on the proposed sale of International Energy. Duke Energy&#8217;s subsidiaries include its subsidiary registrants, Duke Energy Carolinas, LLC (Duke Energy Carolinas); Progress Energy, Inc. (Progress Energy); Duke Energy Progress, LLC (Duke Energy Progress); Duke Energy Florida, LLC (Duke Energy Florida); Duke Energy Ohio, Inc. (Duke Energy Ohio) and Duke Energy Indiana, LLC (Duke Energy Indiana). When discussing Duke Energy&#8217;s consolidated financial information, it necessarily includes the results of its six separate subsidiary registrants (collectively referred to as the Subsidiary Registrants), which, along with Duke Energy, are collectively referred to as the Duke Energy Registrants (Duke Energy Registrants).</font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">These Condensed Consolidated Financial Statements include, after eliminating intercompany transactions and balances, the accounts of the Duke Energy Registrants and subsidiaries where the respective Duke Energy Registrants have control. These Condensed Consolidated Financial Statements also reflect the Duke Energy Registrants&#8217; proportionate share of certain jointly owned generation and transmission facilities.</font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Duke Energy Carolinas is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina and South Carolina. Duke Energy Carolinas is subject to the regulatory provisions of the North Carolina Utilities Commission (NCUC), Public Service Commission of South Carolina (PSCSC), U.S. Nuclear Regulatory Commission (NRC) and FERC. Substantially all of Duke Energy Carolinas&#8217; operations qualify for regulatory accounting.</font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Progress Energy is a public utility holding company headquartered in Raleigh, North Carolina, subject to regulation by FERC. Progress Energy conducts operations through its wholly owned subsidiaries, Duke Energy Progress and Duke Energy Florida. Substantially all of Progress Energy&#8217;s operations qualify for regulatory accounting. </font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Duke Energy Progress is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina and South Carolina. Duke Energy Progress is subject to the regulatory provisions of the NCUC, PSCSC, NRC and FERC. Substantially all of Duke Energy Progress&#8217; operations qualify for regulatory accounting. </font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Duke Energy Florida is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of Florida. Duke Energy Florida is subject to the regulatory provisions of the Florida Public Service Commission (FPSC), NRC and FERC. Substantially all of Duke Energy Florida&#8217;s operations qualify for regulatory accounting. </font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Duke Energy Ohio is a regulated public utility primarily engaged in the transmission and distribution of electricity in portions of Ohio and Kentucky, the generation and sale of electricity in portions of Kentucky and the transportation and sale of natural gas in portions of Ohio and Kentucky. Duke Energy Ohio conducts competitive auctions for retail electricity supply in Ohio whereby the energy price is recovered from retail customers and recorded in Operating Revenues on the Condensed Consolidated Statements of Operations and Comprehensive Income. Operations in Kentucky are conducted through its wholly owned subsidiary, Duke Energy Kentucky, Inc. (Duke Energy Kentucky). References herein to Duke Energy Ohio collectively include Duke Energy Ohio and its subsidiaries, unless otherwise noted. Duke Energy Ohio is subject to the regulatory provisions of the Public Utilities Commission of Ohio (PUCO), Kentucky Public Service Commission (KPSC) and FERC. On April 2, 2015, Duke Energy completed the sale of its nonregulated Midwest generation business, which sold power into wholesale energy markets, to a subsidiary of Dynegy Inc. (Dynegy). See Note </font><font style="font-family:Arial;font-size:8pt;">2</font><font style="font-family:Arial;font-size:8pt;"> for additional information. Substantially all of Duke Energy Ohio&#8217;s operations that remain after the sale qualify for regulatory accounting.</font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Duke Energy Indiana is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of Indiana. Duke Energy Indiana is subject to the regulatory provisions of the Indiana Utility Regulatory Commission (IURC) and FERC. Substantially all of Duke Energy Indiana&#8217;s operations qualify for regulatory accounting. On January 1, 2016, Duke Energy Indiana, an Indiana corporation, converted into an Indiana limited liability company.</font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">See Note 2 for information regarding Duke Energy's acquisition of Piedmont Natural Gas Company, Inc. (Piedmont) that closed on October 3, 2016. For the periods presented, Duke Energy's condensed consolidated financial information does not include the results of Piedmont. Also, the Duke Energy Registrants, as defined above, do not include Piedmont, unless otherwise noted. </font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;font-weight:bold;"></font></div></div>
us-gaap Use Of Estimates
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">In preparing financial statements that conform to GAAP, management must make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.</font></div></div>

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