2018 Q4 Form 10-K Financial Statement

#000132616019000057 Filed on February 28, 2019

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q2 2018 Q1
Revenue $6.115B $5.643B $6.135B
YoY Change 5.45% 1.58% 7.09%
Cost Of Revenue $1.887B $1.663B $1.989B
YoY Change 9.26% 2.84% 16.52%
Gross Profit $4.228B $3.980B $4.146B
YoY Change 3.83% 1.07% 3.08%
Gross Profit Margin 69.14% 70.53% 67.58%
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $1.249B $1.161B $1.089B
YoY Change 18.28% 20.69% 9.89%
% of Gross Profit 29.54% 29.17% 26.27%
Operating Expenses $3.292B $2.832B $2.747B
YoY Change 17.53% 9.64% 4.41%
Operating Profit $871.0M $979.0M $1.256B
YoY Change -27.96% -27.64% -10.41%
Interest Expense -$510.0M $518.0M $515.0M
YoY Change 3.45% 6.58% 4.89%
% of Operating Profit -58.55% 52.91% 41.0%
Other Income/Expense, Net $72.00M $146.0M $62.00M
YoY Change -52.0% -3.31% -58.67%
Pretax Income $433.0M $607.0M $803.0M
YoY Change -50.0% -40.37% -24.32%
Income Tax -$21.00M $100.0M $181.0M
% Of Pretax Income -4.85% 16.47% 22.54%
Net Earnings $464.0M $500.0M $620.0M
YoY Change -34.0% -27.11% -13.41%
Net Earnings / Revenue 7.59% 8.86% 10.11%
Basic Earnings Per Share $0.65 $0.71 $0.88
Diluted Earnings Per Share $0.65 $0.71 $0.88
COMMON SHARES
Basic Shares Outstanding 712.9M shares 703.0M shares 701.0M shares
Diluted Shares Outstanding 704.0M shares 701.0M shares

Balance Sheet

Concept 2018 Q4 2018 Q2 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $479.0M $366.0M $435.0M
YoY Change 21.88% -2.66% -53.62%
Cash & Equivalents $442.0M $304.0M $421.0M
Short-Term Investments $37.00M $62.00M $14.00M
Other Short-Term Assets $3.017B $2.116B $1.952B
YoY Change 48.18% 36.52% 39.83%
Inventory $3.084B $3.177B $3.149B
Prepaid Expenses
Receivables $2.172B $2.205B $1.984B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $9.714B $8.476B $8.279B
YoY Change 14.92% 10.47% 3.42%
LONG-TERM ASSETS
Property, Plant & Equipment $91.69B $88.50B $87.37B
YoY Change 6.14% 4.85% 4.62%
Goodwill $19.30B $19.40B $19.40B
YoY Change -0.48% -0.15% -0.15%
Intangibles
YoY Change
Long-Term Investments $1.409B $1.168B $1.189B
YoY Change 19.91% -7.81% 5.97%
Other Assets $2.935B $3.087B $3.062B
YoY Change -0.84% 9.24% 11.18%
Total Long-Term Assets $135.7B $131.8B $130.3B
YoY Change 4.8% 3.5% 3.3%
TOTAL ASSETS
Total Short-Term Assets $9.714B $8.476B $8.279B
Total Long-Term Assets $135.7B $131.8B $130.3B
Total Assets $145.4B $140.3B $138.5B
YoY Change 5.42% 3.89% 3.31%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.487B $2.686B $2.391B
YoY Change 14.59% 23.38% 8.53%
Accrued Expenses $1.136B $1.024B $964.0M
YoY Change 5.58% 9.17% 8.44%
Deferred Revenue
YoY Change
Short-Term Debt $3.410B $3.329B $2.969B
YoY Change 57.65% -4.56% -16.55%
Long-Term Debt Due $3.406B $2.852B $3.951B
YoY Change 4.99% -17.86% 99.85%
Total Short-Term Liabilities $15.04B $12.79B $13.00B
YoY Change 20.5% 2.61% 18.8%
LONG-TERM LIABILITIES
Long-Term Debt $51.12B $49.86B $49.03B
YoY Change 4.26% 8.3% 4.27%
Other Long-Term Liabilities $27.02B $27.58B $27.32B
YoY Change -1.75% 38.09% 36.75%
Total Long-Term Liabilities $51.12B $49.86B $49.03B
YoY Change 4.26% 8.3% 4.27%
TOTAL LIABILITIES
Total Short-Term Liabilities $15.04B $12.79B $13.00B
Total Long-Term Liabilities $51.12B $49.86B $49.03B
Total Liabilities $66.16B $62.65B $62.03B
YoY Change 7.55% 7.08% 7.01%
SHAREHOLDERS EQUITY
Retained Earnings $3.113B $2.894B $3.021B
YoY Change 3.32% 11.01% 19.83%
Common Stock $40.80B $39.68B $38.84B
YoY Change 5.16% 2.38% 0.25%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $43.82B $42.51B $41.79B
YoY Change
Total Liabilities & Shareholders Equity $145.4B $140.3B $138.5B
YoY Change 5.42% 3.89% 3.31%

Cashflow Statement

Concept 2018 Q4 2018 Q2 2018 Q1
OPERATING ACTIVITIES
Net Income $464.0M $500.0M $620.0M
YoY Change -34.0% -27.11% -13.41%
Depreciation, Depletion And Amortization $1.249B $1.161B $1.089B
YoY Change 18.28% 20.69% 9.89%
Cash From Operating Activities $1.519B $1.911B $1.391B
YoY Change -7.72% 22.97% 11.64%
INVESTING ACTIVITIES
Capital Expenditures -$2.637B -$2.207B $2.087B
YoY Change 19.27% 27.42% -3.38%
Acquisitions
YoY Change
Other Investing Activities -$153.0M -$174.0M $75.00M
YoY Change -253.0% -30.68% 1150.0%
Cash From Investing Activities -$2.790B -$2.381B -$2.264B
YoY Change 32.16% 20.07% -4.11%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $487.0M
YoY Change 19.36%
Cash From Financing Activities 1.413B 318.0M $947.0M
YoY Change 160.22% -360.66% -40.66%
NET CHANGE
Cash From Operating Activities 1.519B 1.911B $1.391B
Cash From Investing Activities -2.790B -2.381B -$2.264B
Cash From Financing Activities 1.413B 318.0M $947.0M
Net Change In Cash 142.0M -152.0M $74.00M
YoY Change 82.05% -72.41% -84.62%
FREE CASH FLOW
Cash From Operating Activities $1.519B $1.911B $1.391B
Capital Expenditures -$2.637B -$2.207B $2.087B
Free Cash Flow $4.156B $4.118B -$696.0M
YoY Change 7.75% 25.32% -23.85%

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CY2017Q4 us-gaap Assets
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CY2018Q4 us-gaap Assets
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CY2018Q4 us-gaap Assets Current
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CY2017Q4 us-gaap Assets Fair Value Disclosure
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CY2018Q4 us-gaap Assets Fair Value Disclosure
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CY2018Q4 us-gaap Capital Lease Obligations
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570000000 USD
CY2018Q4 us-gaap Available For Sale Securities Debt Maturities After One Through Five Years Fair Value
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CY2018Q4 us-gaap Capital Leases Future Minimum Payments Interest Included In Payments
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CY2018Q4 us-gaap Capital Leases Lessee Balance Sheet Assets By Major Class Accumulated Deprecation
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61000000 USD
CY2017Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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2000000000 shares
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CY2018 us-gaap Comprehensive Income Net Of Tax Including Portion Attributable To Noncontrolling Interest
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CY2018 us-gaap Current Income Tax Expense Benefit
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CY2018Q4 us-gaap Debt Instrument Face Amount
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CY2018Q4 us-gaap Debt Instrument Unamortized Discount Premium And Debt Issuance Costs Net
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1600000000 USD
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CY2018Q4 us-gaap Deferred Tax Liabilities Regulatory Assets
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22000000 USD
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0.0475
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2024
CY2018 us-gaap Defined Benefit Plan Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate
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2024
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169000000 USD
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179000000 USD
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213000000 USD
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1
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CY2017Q4 us-gaap Derivative Assets
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CY2018Q4 us-gaap Derivative Assets
DerivativeAssets
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51000000 USD
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CY2018 us-gaap Discontinued Operation Tax Effect Of Discontinued Operation
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CY2018Q1 us-gaap Disposal Group Not Discontinued Operation Gain Loss On Disposal
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107000000 USD
CY2016 us-gaap Dividends
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2332000000 USD
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Dividends
2450000000 USD
CY2018 us-gaap Dividends
Dividends
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1.02
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0.98
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1.36
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1.00
CY2017 us-gaap Earnings Per Share Basic
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4.36
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0.88
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0.71
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1.51
CY2018Q4 us-gaap Earnings Per Share Basic
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0.65
CY2018 us-gaap Earnings Per Share Basic
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3.76
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3.11
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1.02
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0.98
CY2017Q3 us-gaap Earnings Per Share Diluted
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1.36
CY2017Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.00
CY2017 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
4.36
CY2018Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.88
CY2018Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.71
CY2018Q3 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
1.51
CY2018Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.65
CY2018 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
3.76
CY2016 us-gaap Effective Income Tax Rate Continuing Operations
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0.310
CY2017 us-gaap Effective Income Tax Rate Continuing Operations
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0.280
CY2018 us-gaap Effective Income Tax Rate Continuing Operations
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0.146
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2000000 USD
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4000000 USD
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5000000 USD
CY2016 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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20000000 USD
CY2017 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense
25000000 USD
CY2018 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense
17000000 USD
CY2017Q4 us-gaap Energy Related Inventory Coal
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603000000 USD
CY2018Q4 us-gaap Energy Related Inventory Coal
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354000000 USD
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5000000 USD
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55000000 USD
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57000000 USD
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47000000 USD
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57000000 USD
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54000000 USD
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300000000 USD
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3073000000 USD
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45000000 USD
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59000000 USD
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55000000 USD
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717000000 USD
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691000000 USD
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957000000 USD
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705000000 USD
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3070000000 USD
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622000000 USD
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507000000 USD
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434000000 USD
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1126000000 USD
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1190000000 USD
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422000000 USD
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20000000 USD
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645000000 USD
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11000000 USD
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28000000 USD
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64000000 USD
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69000000 USD
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30000000 USD
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4000000 USD
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296000000 USD
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479000000 USD
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236000000 USD
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174000000 USD
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400000000 USD
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182000000 USD
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270000000 USD
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241000000 USD
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35288000000 USD
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3408000000 USD
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3375000000 USD
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2745000000 USD
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4803000000 USD
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3765000000 USD
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51123000000 USD
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64000000 USD
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73000000 USD
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3410000000 USD
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6000000 USD
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12000000 USD
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8000000 USD
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21000000 USD
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659000000 USD
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CY2018 us-gaap Unregulated Operating Revenue
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CY2018Q4 us-gaap Unsecured Debt
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UnusualOrInfrequentItemNetOfInsuranceProceeds
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UnusualOrInfrequentItemNetOfInsuranceProceeds
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CY2017 us-gaap Unusual Or Infrequent Item Net Of Insurance Proceeds
UnusualOrInfrequentItemNetOfInsuranceProceeds
261000000 USD
CY2018Q1 us-gaap Unusual Or Infrequent Item Net Of Insurance Proceeds
UnusualOrInfrequentItemNetOfInsuranceProceeds
341000000 USD
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UnusualOrInfrequentItemNetOfInsuranceProceeds
199000000 USD
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UnusualOrInfrequentItemNetOfInsuranceProceeds
106000000 USD
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UnusualOrInfrequentItemNetOfInsuranceProceeds
225000000 USD
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UnusualOrInfrequentItemNetOfInsuranceProceeds
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632000000 USD
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UtilitiesOperatingExpenseGasAndPetroleumPurchased
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6224000000 USD
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5944000000 USD
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UtilitiesOperatingExpenseMaintenanceOperationsAndOtherCostsAndExpenses
6463000000 USD
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WeightedAverageNumberOfDilutedSharesOutstanding
691000000 shares
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WeightedAverageNumberOfDilutedSharesOutstanding
700000000 shares
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WeightedAverageNumberOfDilutedSharesOutstanding
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WeightedAverageNumberOfSharesOutstandingBasic
691000000 shares
CY2017 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2018 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
708000000 shares
CY2018 us-gaap Guarantees Indemnifications And Warranties Policies
GuaranteesIndemnificationsAndWarrantiesPolicies
<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;">Guarantees</font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">If necessary, liabilities are recognized at the time of issuance or material modification of a guarantee for the estimated fair value of the obligation it assumes. Fair value is estimated using a probability-weighted approach. The obligation is reduced over the term of the guarantee or related contract in a systematic and rational method as risk is reduced. Any additional contingent loss for guarantee contracts subsequent to the initial recognition of a liability is accounted for and recognized at the time a loss is probable and can be reasonably estimated. See Note </font><font style="font-family:Arial;font-size:8pt;">7</font><font style="font-family:Arial;font-size:8pt;"> for further information.</font></div></div>
CY2018 us-gaap Nature Of Operations
NatureOfOperations
<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 is an energy company headquartered in Charlotte, North Carolina, subject to regulation by the FERC and other regulatory agencies listed below. Duke Energy operates in the U.S. primarily through its direct and indirect subsidiaries. Certain Duke Energy subsidiaries are also subsidiary registrants, including Duke Energy Carolinas; Progress Energy; Duke Energy Progress; Duke Energy Florida; Duke Energy Ohio; Duke Energy Indiana and Piedmont. When discussing Duke Energy&#8217;s consolidated financial information, it necessarily includes the results of its separate Subsidiary Registrants, which along with Duke Energy, are collectively referred to as the Duke Energy Registrants.</font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">In October 2016, Duke Energy completed the acquisition of Piedmont. Duke Energy's consolidated financial statements include Piedmont's results of operations and cash flows activity subsequent to the acquisition date. Effective November 1, 2016, Piedmont's fiscal year-end was changed from October 31 to December 31, the year-end of Duke Energy. A transition report was filed on Form 10-Q (Form 10-QT) for the transition period from November 1, 2016, to December 31, 2016. See Note </font><font style="font-family:Arial;font-size:8pt;">2</font><font style="font-family:Arial;font-size:8pt;"> for additional information regarding the acquisition.</font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">In December 2016, Duke Energy completed an exit of the Latin American market to focus on its domestic regulated business, which was further bolstered by the acquisition of Piedmont. The sale of the International Energy business segment, excluding an equity method investment in NMC, was completed through two transactions including a sale of assets in Brazil to CTG and a sale of Duke Energy's remaining Latin American assets in Peru, Chile, Ecuador, Guatemala, El Salvador and Argentina to I Squared (collectively, the International Disposal Group). See Note </font><font style="font-family:Arial;font-size:8pt;">2</font><font style="font-family:Arial;font-size:8pt;"> for additional information on the sale of International Energy.</font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">The information in these combined notes relates to each of the Duke Energy Registrants as noted in the Index to Combined Notes to Consolidated Financial Statements. However, none of the Subsidiary Registrants make any representation as to information related solely to Duke Energy or the Subsidiary Registrants of Duke Energy other than itself.</font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">These Consolidated Financial Statements include, after eliminating intercompany transactions and balances, the accounts of the Duke Energy Registrants and subsidiaries or VIEs where the respective Duke Energy Registrants have control. See Note </font><font style="font-family:Arial;font-size:8pt;">17</font><font style="font-family:Arial;font-size:8pt;"> for additional information on VIEs. These Consolidated Financial Statements also reflect the Duke Energy Registrants&#8217; proportionate share of certain jointly owned generation and transmission facilities. See Note </font><font style="font-family:Arial;font-size:8pt;">8</font><font style="font-family:Arial;font-size:8pt;"> for additional information on joint ownership. Substantially all of the Subsidiary Registrants' 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 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 NCUC, PSCSC, NRC and FERC. </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, which conducts operations through its wholly owned subsidiaries, Duke Energy Progress and Duke Energy Florida. Progress Energy is subject to regulation by FERC and other regulatory agencies listed below. </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. </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 FPSC, NRC and FERC. </font></div><div style="line-height:120%;padding-bottom:10px;text-align:left;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 Consolidated Statements of Operations and Comprehensive Income. Operations in Kentucky are conducted through its wholly owned subsidiary, 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 PUCO, KPSC and FERC.</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 IURC and FERC. </font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Piedmont is a regulated public utility primarily engaged in the distribution of natural gas in portions of North Carolina, South Carolina and Tennessee. Piedmont is subject to the regulatory provisions of the NCUC, PSCSC, TPUC and FERC.</font></div><div style="line-height:120%;padding-bottom:10px;font-size:8pt;"><font style="font-family:Arial;font-size:8pt;">Certain prior year amounts have been reclassified to conform to the current year presentation.</font></div></div>
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<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;">Use of Estimates</font></div><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, the Duke Energy Registrants 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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