Duke Energy’s 2020 Sustainability Report references adjusted EPS for the year-to-date periods ended December 31, 2020, 2019 and 2018 of $5.12, $5.06 and $4.72, respectively.
The non-GAAP financial measure, adjusted EPS, represents basic EPS available to Duke Energy Corporation common stockholders (GAAP reported EPS), adjusted for the per share impact of special items. As discussed below, special items represent certain charges and credits, which management believes are not indicative of Duke Energy’s ongoing performance. Management believes the presentation of adjusted EPS provides useful information to investors, as it provides them with an additional relevant comparison of Duke Energy’s performance across periods. Management uses this non-GAAP financial measure for planning and forecasting and for reporting financial results to the Duke Energy Board of Directors, employees, stockholders, analysts and investors. Adjusted EPS is also used as a basis for employee incentive bonuses. The most directly comparable GAAP measure for adjusted EPS is reported basic EPS available to Duke Energy Corporation common stockholders.
Special items included in the periods presented include the following items, which management believes do not reflect ongoing costs:
Duke Energy’s adjusted EPS may not be comparable to a similarly titled measure of another company because other entities may not calculate the measure in the same manner.
The following table presents a reconciliation of reported EPS to adjusted EPS for 2020, 2019 and 2018:
Duke Energy’s 2020 Sustainability Report references Duke Energy’s forecasted 2021 adjusted EPS guidance range of $5.00 to $5.30 per share. The materials also reference a preliminary estimate of the 2021 adjusted EPS midpoint of approximately $5.15. In addition, the materials reference the long-term range of 5 to 7 percent through 2025 off the midpoint of 2021 adjusted EPS guidance range of $5.15. The forecasted adjusted EPS is a non-GAAP financial measure as it represents basic EPS available to Duke Energy Corporation common stockholders (GAAP reported EPS), adjusted for the per share impact of special items (as discussed under Adjusted EPS). 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.