Financial Highlights

(In millions, except per-share amounts)   2006     2005     2004     2003 c   2002  
Statement of Operations                              
Operating revenues $ 15,184   $ 16,297   $ 19,596   $ 17,623   $ 14,757  
Operating expenses   12,493     13,416     16,441     16,632     12,313  
Gains on sales of investments in commercial and multi-family real estate   201     191     192     84     106  
Gains (losses) on sales of other assets and other, net   276     534     (416 )   (199 )   32  
Operating income   3,168     3,606     2,931     876     2,582  
Other income and expenses, net   1,008     1,809     304     550     352  
Interest expense   1,253     1,066     1,282     1,331     1,116  
Minority interest expense   61     538     200     62     91  
Earnings from continuing operations before income taxes   2,862     3,811     1,753     33     1,727  
Income tax expense (benefit) from continuing operations   843     1,282     507     (52 )   544  
Income from continuing operations   2,019     2,529     1,246     85     1,183  
(Loss) income from discontinued operations, net of tax   (156 )   (701 )   244     (1,246 )   (149 )
Income (loss) before cumulative effect of change in accounting principle   1,863     1,828     1,490     (1,161 )   1,034  
Cumulative effect of change in accounting principle, net of tax and minority interest       (4 )       (162 )    
Net income (loss)   1,863     1,824     1,490     (1,323 )   1,034  
Dividends and premiums on redemption of preferred and preference stock       12     9     15     13  
Earnings (loss) available for common stockholders $ 1,863   $ 1,812   $ 1,481   $ (1,338 ) $ 1,021  
Ratio of Earnings to Fixed Charges d   3.2     4.7     2.3     b   2.0  
Common Stock Data                              
Shares of common stock outstanding e                              
Year-end   1,257     928     957     911     895  
Weighted average – basic   1,170     934     931     903     836  
Weighted average – diluted   1,188     970     966     904     838  
Earnings (loss) per share                              
Basic $ 1.59   $ 1.94   $ 1.59   $ (1.48 ) $ 1.22  
Diluted $ 1.57   $ 1.88   $ 1.54   $ (1.48 ) $ 1.22  
Dividends per share $ 1.26   $ 1.17   $ 1.10   $ 1.10   $ 1.10  

Balance Sheet
                             
Total assets $ 68,700   $ 54,723   $ 55,770   $ 57,485   $ 60,122  
Long‑term debt including capital leases, less current maturities $ 18,118   $ 14,547   $ 16,932   $ 20,622   $ 20,221  
Capitalization                              
Common equity   55%     50%     45%     37%     36%  
Preferred stock   0%     0%     0%     0%     1%  
Trust preferred securities   0%     0%     0%     0%     3%  
Total common equity and preferred securities   55%     50%     45%     37%     40%  
Minority interests   2%     2%     4%     5%     5%  
Total debt   43%     48%     51%     58%     55%  

 

(a) Significant transactions reflected in the results above include: 2006 merger with Cinergy (see Note 2 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K, “Acquisitions and Dispositions”), 2006 Crescent joint venture transaction and subsequent deconsolidation effective September 7, 2006 (see Note 2 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K, “Acquisitions and Dispositions”), 2005 DENA disposition (see Note 13 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K, “Discontinued Operations and Assets Held for Sale”), 2005 deconsolidation of DEFS effective July 1, 2005 (see Note 2 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K, “Acquisitions and Dispositions”), 2005 DEFS sale of TEPPCO (see Note 2 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K, “Acquisitions and Dispositions”) and 2004 DENA sale of the Southeast plants (see Note 2 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K, “Acquisitions and Dispositions”).

(b) Earnings were inadequate to cover fixed charges by $241 million for the year ended December 31, 2003.

(c) As of January 1, 2003, Duke Energy adopted the remaining provisions of Emerging Issues Task Force (EITF) 02‑03, “Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and for Contracts Involved in Energy Trading and Risk Management Activities” (EITF 02‑03) and SFAS No. 143, “Accounting for Asset Retirement Obligations” (SFAS No. 143). In accordance with the transition guidance for these standards, Duke Energy recorded a net‑of‑tax and minority interest cumulative effect adjustment for change in accounting principles. (See Note 1 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K, “Summary of Significant Accounting Policies,” for further discussion).

(d) Includes pre‑tax gains of approximately $0.9 billion, net of minority interest, related to the sale of TEPPCO GP and LP in 2005 (see Note 2 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K, “Acquisitions and Dispositions”).

(e) 2006 increase primarily attributable to issuance of approximately 313 million shares in connection with Duke Energy’s merger with Cinergy (see Note 2 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K, “Acquisitions and Dispositions”).

See Notes to Consolidated Financial Statements in Duke Energy’s 2006 Form 10‑K .