Fourth Quarter 2023 Earnings Review and Business Update
Due to the forward-looking nature of this non-GAAP financial measure for future periods, information to
reconcile it to the most directly comparable GAAP financial measure is not available at this time, as
management is unable to project all special items for future periods, such as legal settlements, the impact of
regulatory orders or asset impairments.
Adjusted Segment Income (Loss) and Adjusted Other Net Loss
The materials for Duke Energy's Fourth Quarter Earnings Review and Business Update on February 8, 2024,
include a discussion of adjusted segment income (loss) and adjusted other net loss for the year-to-date period
ended December 31, 2023, and a discussion of 2023 and 2024 forecasted adjusted segment income and
forecasted adjusted other net loss.
Adjusted segment income (loss) and adjusted other net loss are non-GAAP financial measures, as they
represent reported segment income (loss) and other net loss adjusted for special items (as discussed above
under Adjusted EPS). Management believes the presentation of adjusted segment income (loss) and adjusted
other net expense provides useful information to investors, as it provides an additional relevant comparison of
a segment's or Other's performance across periods. When a per share impact is provided for a segment income
(loss) driver, the after-tax driver is derived using the pretax amount of the item less income taxes based on the
segment statutory tax rate of 24% for Electric Utilities and Infrastructure, 23% for Gas Utilities and
Infrastructure and Other. The after-tax earnings drivers are divided by the Duke Energy weighted average
shares outstanding for the period. The most directly comparable GAAP measures for adjusted segment income
(loss) and adjusted other net loss are reported segment income (loss) and other net loss, which represents
segment income (loss) and other net loss from continuing operations, including any special items. A
reconciliation of adjusted segment income (loss) and adjusted other net loss for the year-to-date period ended
December 31, 2023, to the most directly comparable GAAP measures is included herein. Due to the forward-
looking nature of any forecasted adjusted segment income (loss) and forecasted other net loss and any related
growth rates for future periods, information to reconcile these non-GAAP financial measures to the most
directly comparable GAAP financial measures are not available at this time, as the company is unable to
forecast all special items, as discussed above under Adjusted EPS Guidance.
Effective Tax Rate Including Noncontrolling Interests and Preferred Dividends and Excluding Special
Items
The materials for Duke Energy's Fourth Quarter Earnings Review and Business Update on February 8, 2024,
include a discussion of the effective tax rate including noncontrolling interests and preferred dividends and
excluding special items for the year-to-date period ended December 31, 2023. The materials also include a
discussion of the 2023 and 2024 forecasted effective tax rate including noncontrolling interests and preferred
dividends and excluding special items. Effective tax rate including noncontrolling interests and preferred
dividends and excluding special items is a non-GAAP financial measure as the rate is calculated using pretax
income and income tax expense, both adjusted for the impact of special items, noncontrolling interests and
preferred dividends. The most directly comparable GAAP measure is reported effective tax rate, which
includes the impact of special items and excludes the noncontrolling interests and preferred dividends. A
reconciliation of this non-GAAP financial measure for the year-to-date period ended December 31, 2023, to
the most directly comparable GAAP measure is included herein. Due to the forward-looking nature of the
forecasted effective tax rates including noncontrolling interests and preferred dividends and excluding special
items, information to reconcile it to the most directly comparable GAAP financial measure is not available at
this time, as management is unable to project all special items, as discussed above under Adjusted EPS
Guidance.View entire presentation