Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 23, 2013 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AGL RESOURCES INC. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -19 | |
Entity Common Stock, Shares Outstanding | 118,788,590 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 1004155 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well-known Seasoned Issuer | Yes | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Financial Position (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |||
In Millions, unless otherwise specified | ||||||
Current assets | ||||||
Cash and cash equivalents | $131 | $131 | $91 | |||
Short-term investments | 42 | 58 | 60 | |||
Receivables | ||||||
Energy marketing receivables | 502 | 677 | 397 | |||
Gas, unbilled and other receivables | 341 | 686 | 305 | |||
Less allowance for uncollectible accounts | 32 | 28 | 31 | |||
Total receivables | 811 | 1,335 | 671 | |||
Inventories, net | 797 | 708 | 778 | |||
Regulatory assets | 133 | 145 | 158 | |||
Derivative instruments | 97 | 130 | 144 | |||
Other current assets | 80 | 161 | 233 | |||
Total current assets | 2,091 | 2,668 | 2,135 | |||
Long-term assets and other deferred debits | ||||||
Property, plant and equipment | 10,920 | 10,478 | 10,281 | |||
Less accumulated depreciation | 2,307 | 2,131 | 2,069 | |||
Property, plant and equipment, net | 8,613 | 8,347 | 8,212 | |||
Goodwill | 1,883 | 1,837 | 1,817 | |||
Regulatory assets | 871 | 944 | 994 | |||
Intangible assets | 180 | 96 | 96 | |||
Derivative instruments | 15 | 14 | 15 | |||
Other long-term assets and deferred debits | 251 | 235 | 234 | |||
Total long-term assets and other deferred debits | 11,813 | 11,473 | 11,368 | |||
Total assets | 13,904 | [1] | 14,141 | [2] | 13,503 | [1] |
Current liabilities | ||||||
Short-term debt | 832 | 1,377 | 1,048 | |||
Energy marketing trade payable | 539 | 611 | 444 | |||
Accounts payable - trade | 304 | 334 | 292 | |||
Regulatory liabilities | 174 | 161 | 117 | |||
Accrued expenses | 157 | 140 | 119 | |||
Customer deposits and credit balances | 140 | 143 | 159 | |||
Accrued environmental remediation liabilities | 48 | 57 | 61 | |||
Derivative instruments | 38 | 33 | 37 | |||
Accrued regulatory infrastructure program costs | 32 | 121 | 122 | |||
Current portion of long-term debt and capital leases | 226 | 226 | ||||
Other current liabilities | 143 | 135 | 139 | |||
Total current liabilities | 2,407 | 3,338 | 2,764 | |||
Long-term liabilities and other deferred credits | ||||||
Long-term debt | 3,816 | 3,327 | 3,330 | |||
Accumulated deferred income taxes | 1,587 | 1,588 | 1,555 | |||
Regulatory liabilities | 1,524 | 1,477 | 1,465 | |||
Accrued environmental remediation liabilities | 416 | 387 | 365 | |||
Accrued retiree welfare benefits | 262 | 268 | 296 | |||
Accrued pension obligations | 249 | 240 | 213 | |||
Derivative instruments | 6 | 6 | 5 | |||
Other long-term liabilities and other deferred credits | 74 | 75 | 112 | |||
Total long-term liabilities and other deferred credits | 7,934 | 7,368 | 7,341 | |||
Total liabilities and other deferred credits | 10,341 | 10,706 | 10,105 | |||
Equity | ||||||
Common stock, $5 par value; 750,000,000 shares authorized: outstanding: 118,778,298 shares at September 30, 2013, 117,855,075 shares at December 31, 2012 and 117,743,809 shares at September 30, 2012 | 595 | 590 | 590 | |||
Additional paid in capital | 2,046 | 2,014 | 2,012 | |||
Retained earnings | 1,100 | 1,035 | 990 | |||
Accumulated other comprehensive loss | -208 | [3] | -218 | [3] | -203 | |
Treasury shares, at cost: 216,523 shares at September 30, 2013 and December 31, 2012 and September 30, 2012 | -8 | -8 | -8 | |||
Total common shareholders’ equity | 3,525 | 3,413 | 3,381 | |||
Noncontrolling interest | 38 | 22 | 17 | |||
Total equity | 3,563 | 3,435 | 3,398 | |||
Total liabilities and equity | $13,904 | $14,141 | $13,503 | |||
[1] | Identifiable assets are those used in each segment's operations. | |||||
[2] | Identifiable assets are those assets used in each segment's operations. | |||||
[3] | All amounts are net of income taxes. Amounts in parentheses indicate debits to accumulated other comprehensive loss. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Financial Position (Unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Common stock, par value (in Dollars per share) | $5 | $5 | $5 |
Common stock, shares authorized | 750,000,000 | 750,000,000 | 750,000,000 |
Common stock, shares outstanding | 118,778,298 | 117,855,075 | 117,743,809 |
Treasury shares, shares | 216,523 | 216,523 | 216,523 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Operating revenues (includes revenue taxes of $8 and $82 for the three and nine months in 2013 and $8 and $63 for the three and nine months in 2012) | $675 | $614 | $3,288 | $2,704 | ||||
Operating expenses | ||||||||
Cost of goods sold | 229 | 215 | 1,609 | 1,174 | ||||
Operation and maintenance | 226 | 212 | 718 | 675 | ||||
Depreciation and amortization | 109 | 104 | 325 | 310 | ||||
Taxes other than income taxes | 29 | 27 | 144 | 123 | ||||
Nicor merger expenses | 2 | [1] | 15 | [1] | ||||
Total operating expenses | 593 | 560 | 2,796 | 2,297 | ||||
Gain on sale of Compass Energy | 11 | |||||||
Operating income | 82 | 54 | 503 | 407 | ||||
Other income | 7 | 6 | 19 | 19 | ||||
Interest expense, net | -43 | -45 | -135 | -137 | ||||
Earnings before income taxes | 46 | 15 | 387 | 289 | ||||
Income tax expense | 18 | 6 | 145 | 106 | ||||
Net income | 28 | 9 | 242 | 183 | ||||
Less net income attributable to the noncontrolling interest | 11 | 10 | ||||||
Net income attributable to AGL Resources Inc. | $28 | $9 | $231 | $173 | ||||
Per common share data | ||||||||
Basic earnings per common share attributable to AGL Resources Inc. common shareholders (in Dollars per share) | $0.24 | $0.08 | $1.96 | $1.48 | ||||
Diluted earnings per common share attributable to AGL Resources Inc. common shareholders (in Dollars per share) | $0.24 | $0.08 | $1.96 | $1.48 | ||||
Cash dividends declared per common share (in Dollars per share) | $0.47 | $0.46 | $1.41 | $1.28 | ||||
Weighted average number of common shares outstanding | ||||||||
Basic (in Shares) | 118.2 | [2] | 117.1 | [2] | 117.8 | [2] | 116.9 | [2] |
Diluted (in Shares) | 118.5 | 117.5 | 118.1 | 117.3 | ||||
[1] | Transaction expenses associated with the Nicor merger are shown separately to better compare year-over-year results. | |||||||
[2] | Daily weighted average shares outstanding. |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Income (Unaudited) (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue taxes | $8 | $8 | $82 | $63 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Other Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Net income | $28 | $9 | $242 | $183 | ||
Retirement benefit plans | ||||||
Reclassification of actuarial losses to net benefit cost (net of income tax of $3 and $8 for the three and nine months ended September 30, 2013, and $2 and $6 for the three and nine months ended September 30, 2012) | 3 | 2 | 11 | 10 | ||
Reclassification of prior service credits to net benefit cost (net of income tax of $(1) for the nine months ended September 30, 2013) | -2 | -3 | ||||
Retirement benefit plans | 1 | [1] | 2 | 8 | [1] | 10 |
Cash flow hedges, net of tax | ||||||
Reclassification of realized derivative instrument (gains) losses to net income (net of income tax of $1 for the nine months ended September 30, 2013 and $1 and $2 for the three and nine months ended September 30, 2012) | [1] | 2 | 2 | [1] | 4 | |
Cash flow hedges, net | [1] | 2 | 2 | [1] | 4 | |
Other comprehensive income, net of tax | 1 | [1] | 4 | 10 | [1] | 14 |
Comprehensive income | 29 | 13 | 252 | 197 | ||
Less comprehensive income attributable to noncontrolling interest | 11 | 10 | ||||
Comprehensive income attributable to AGL Resources Inc. | $29 | $13 | $241 | $187 | ||
[1] | All amounts are net of income taxes. Amounts in parentheses indicate debits to accumulated other comprehensive loss. |
Condensed_Consolidated_Stateme5
Condensed Consolidated Statements of Other Comprehensive Income (Unaudited) (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification of actuarial losses to net benefit cost, income tax | $3 | $2 | $8 | $6 |
Reclassification of prior service credits to net benefit cost, income tax | -1 | |||
Reclassification of realized derivative instrument (gains) losses to net income, income tax | $1 | $1 | $2 |
Condensed_Consolidated_Stateme6
Condensed Consolidated Statements of Equity (Unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total | |
In Millions, except Share data | ||||||||
Balance at Dec. 31, 2011 | $586 | $1,989 | $967 | ($217) | ($7) | $21 | $3,339 | |
Balance (in Shares) at Dec. 31, 2011 | 117,000,000 | |||||||
Net income | 173 | 10 | 183 | |||||
Other comprehensive income | 14 | 14 | ||||||
Dividends on common stock | -150 | -150 | ||||||
Distributions to noncontrolling interest | -14 | -14 | ||||||
Stock granted, share-based compensation, net of forfeitures | -9 | -9 | ||||||
Stock issued, dividend reinvestment plan | 1 | 7 | 8 | |||||
Stock issued, dividend reinvestment plan (in Shares) | 200,000 | |||||||
Stock issued, share-based compensation, net of forfeitures | 3 | 17 | -1 | 19 | ||||
Stock issued, share-based compensation, net of forfeitures (in Shares) | 500,000 | |||||||
Stock-based compensation expense (net of tax) | 8 | 8 | ||||||
Balance at Sep. 30, 2012 | 590 | 2,012 | 990 | -203 | -8 | 17 | 3,398 | |
Balance (in Shares) at Sep. 30, 2012 | 117,700,000 | 117,743,809 | ||||||
Balance at Dec. 31, 2012 | 590 | 2,014 | 1,035 | -218 | -8 | 22 | 3,435 | |
Balance (in Shares) at Dec. 31, 2012 | 117,900,000 | 117,855,075 | ||||||
Net income | 231 | 11 | 242 | |||||
Other comprehensive income | 10 | 10 | [1] | |||||
Dividends on common stock | -166 | -166 | ||||||
Contribution from noncontrolling interest | 22 | 22 | ||||||
Distributions to noncontrolling interest | -17 | -17 | ||||||
Stock granted, share-based compensation, net of forfeitures | -6 | -6 | ||||||
Stock issued, dividend reinvestment plan | 1 | 7 | 8 | |||||
Stock issued, dividend reinvestment plan (in Shares) | 200,000 | |||||||
Stock issued, share-based compensation, net of forfeitures | 4 | 22 | 26 | |||||
Stock issued, share-based compensation, net of forfeitures (in Shares) | 700,000 | |||||||
Stock-based compensation expense (net of tax) | 9 | 9 | ||||||
Balance at Sep. 30, 2013 | $595 | $2,046 | $1,100 | ($208) | ($8) | $38 | $3,563 | |
Balance (in Shares) at Sep. 30, 2013 | 118,800,000 | 118,778,298 | ||||||
[1] | All amounts are net of income taxes. Amounts in parentheses indicate debits to accumulated other comprehensive loss. |
Condensed_Consolidated_Stateme7
Condensed Consolidated Statements of Equity (Unaudited) (Parentheticals) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Dividends on common stock, per share | $1.41 | $1.28 |
Condensed_Consolidated_Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ||
Net income | $242 | $183 |
Adjustments to reconcile net income to net cash flow provided by operating activities | ||
Depreciation and amortization | 325 | 310 |
Change in derivative instrument assets and liabilities | 37 | 61 |
Deferred income taxes | -28 | 89 |
Gain on sale of Compass Energy | -11 | |
Changes in certain assets and liabilities | ||
Receivables, other than energy marketing | 354 | 403 |
Energy marketing receivables and trade payables, net | 103 | 64 |
Prepaid taxes | 64 | 13 |
Accrued expenses | 17 | -43 |
Accrued natural gas costs | 14 | -4 |
Inventories | -89 | -28 |
Trade payables, other than energy marketing | -19 | 14 |
Other, net | 61 | -30 |
Net cash flow provided by operating activities | 1,070 | 1,032 |
Cash flows from investing activities | ||
Expenditures for property, plant and equipment | -535 | -569 |
Acquisitions of assets | -154 | |
Disposition of assets | 12 | |
Other, net | 16 | -8 |
Net cash flow used in investing activities | -661 | -577 |
Cash flows from financing activities | ||
Issuance of senior notes | 494 | |
Contribution from noncontrolling interest | 22 | |
Net payments and borrowings of short-term debt | -545 | -273 |
Payment of senior notes | -225 | |
Dividends paid on common shares | -166 | -150 |
Distribution to noncontrolling interest | -17 | -14 |
Payment of medium-term notes | -15 | |
Proceeds from termination of interest rate swap | 17 | |
Other, net | 28 | 2 |
Net cash flow used in financing activities | -409 | -433 |
Net increase in cash and cash equivalents | 22 | |
Cash and cash equivalents at beginning of period | 131 | 69 |
Cash and cash equivalents at end of period | 131 | 91 |
Cash paid during the period for | ||
Interest | 138 | 142 |
Income taxes | 90 | 4 |
Non cash financing transaction | ||
Refinancing of gas facility revenue bonds | $200 |
Note_1_Organization_and_Basis_
Note 1 - Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 - Organization and Basis of Presentation |
General | |
AGL Resources Inc. is an energy services holding company that conducts substantially all its operations through its subsidiaries. Unless the context requires otherwise, references to “we,” “us,” “our,” the “company,” or “AGL Resources” mean consolidated AGL Resources Inc. and its subsidiaries. | |
The December 31, 2012 Condensed Consolidated Statement of Financial Position data was derived from our audited financial statements, but does not include all disclosures required by GAAP. We have prepared the accompanying unaudited Condensed Consolidated Financial Statements under the rules and regulations of the SEC. In accordance with such rules and regulations, we have condensed or omitted certain information and notes normally included in financial statements prepared in conformity with GAAP. Our unaudited Condensed Consolidated Financial Statements reflect all adjustments of a normal recurring nature that are, in the opinion of management, necessary for a fair presentation of our financial results for the interim periods. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements and related notes included in Item 8 of our 2012 Form 10-K. | |
Due to the seasonal nature of our business and other factors, our results of operations and our financial condition for the periods presented are not necessarily indicative of the results of operations and financial condition to be expected for or as of any other period. | |
Basis of Presentation | |
Our unaudited Condensed Consolidated Financial Statements include our accounts, the accounts of our wholly owned subsidiaries, the accounts of our majority-owned and controlled subsidiaries and the accounts of our consolidated VIE for which we are the primary beneficiary. For unconsolidated entities that we do not control, but exercise significant influence over, we use the equity method of accounting and our proportionate share of income or loss is recorded on the unaudited Condensed Consolidated Statements of Income. See Note 8 for additional information. We have eliminated intercompany profits and transactions in consolidation except for intercompany profits where recovery of such amounts is probable under the affiliates’ rate regulation process. Certain amounts from prior periods have been reclassified and revised to conform to the current period presentation. Such reclassifications and revisions had no material impact on prior periods. | |
During the three months ended September 30, 2013, we recorded a $4 million ($2 million net of tax) reduction to our interest expense to correct the amortization period of credit fees related to the execution of the AGL Credit Facility in 2010 and subsequent amendment in 2011. |
Note_2_Significant_Accounting_
Note 2 - Significant Accounting Policies and Methods of Application | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Significant Accounting Policies [Text Block] | Note 2 - Significant Accounting Policies and Methods of Application | ||||||||||||||||
Our accounting policies are described in Note 2 to our Consolidated Financial Statements and related notes included in Item 8 of our 2012 Form 10-K. There were no significant changes to our accounting policies during the nine months ended September 30, 2013. | |||||||||||||||||
Use of Accounting Estimates | |||||||||||||||||
The preparation of our financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosures. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our estimates may involve complex situations requiring a high degree of judgment either in the application and interpretation of existing literature or in the development of estimates that impact our financial statements. The most significant estimates relate to our regulatory infrastructure program accruals, environmental remediation accruals, uncollectible accounts and other allowances for contingent losses, goodwill and other intangible assets, retirement plan benefit obligations, derivative and hedging activities and provisions for income taxes. We evaluate our estimates on an ongoing basis and our actual results could differ from our estimates. | |||||||||||||||||
Cash, Cash Equivalents and Cash Investments | |||||||||||||||||
Our cash and cash equivalents consist primarily of cash on deposit, money market accounts and certificates of deposit held by domestic subsidiaries with original maturities of three months or less. As of September 30, 2013 and 2012, and December 31, 2012, we had $74 million, $76 million and $80 million, respectively, of cash and short-term investments held by Tropical Shipping. This cash and investments are available for use by our other operations only if we repatriate a portion of Tropical Shipping’s earnings in the form of a dividend, and pay a significant amount of United States income tax. See Note 12 to our Consolidated Financial Statements included in Item 8 of our 2012 Form 10-K for additional information on our income taxes. | |||||||||||||||||
Inventories | |||||||||||||||||
For our regulated utilities, except Nicor Gas, our gas inventories and the inventories we hold for Marketers in Georgia are carried at cost on a WACOG basis. In Georgia’s competitive environment, Marketers sell natural gas to firm end-use customers at market-based prices. Part of the unbundling process, which resulted from deregulation and provides this competitive environment, is the assignment to Marketers of certain pipeline services that Atlanta Gas Light has under contract. On a monthly basis, Atlanta Gas Light assigns the majority of the pipeline storage services that it has under contract to Marketers, along with a corresponding amount of inventory. Atlanta Gas Light also retains and manages a portion of its pipeline storage assets and related natural gas inventories for system balancing and to serve system demand. See Note 9 for information regarding a regulatory filing by Atlanta Gas Light related to gas inventory. | |||||||||||||||||
Nicor Gas’ inventory is carried at cost on a LIFO basis. Inventory decrements occurring during interim periods that are expected to be restored prior to year-end are charged to cost of goods sold at the estimated annual replacement cost, and the difference between this cost and the actual liquidated LIFO layer cost is recorded as a temporary LIFO inventory liquidation. Any temporary LIFO liquidation is included as a current liability in our unaudited Condensed Consolidated Statements of Financial Position. Interim inventory decrements that are not expected to be restored prior to year-end are charged to cost of goods sold at the actual LIFO cost of the layers liquidated. As of September 30, 2013 and 2012, there was no inventory decrement. | |||||||||||||||||
Our retail operations, wholesale services and midstream operations segments are carried at the lower of cost on a WACOG basis or market value. For these segments, we evaluate the weighted average cost of their natural gas inventories against market prices to determine whether any declines in market prices below the WACOG are other than temporary. For any declines considered to be other than temporary, we record adjustments to reduce the weighted average cost of the natural gas inventory to market value. For the periods presented, we recorded LOCOM adjustments to cost of goods sold in the following amounts to reduce the value of our inventories to market value. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Retail operations | $ | 1 | $ | - | $ | 1 | $ | 3 | |||||||||
Wholesale services | - | - | 8 | 18 | |||||||||||||
Midstream operations | - | - | - | 1 | |||||||||||||
Energy Marketing Receivables and Payables | |||||||||||||||||
Our wholesale services segment provides services to retail and wholesale marketers and utility and industrial customers. These customers, also known as counterparties, utilize netting agreements, which enable our wholesale services segment to net receivables and payables by counterparty. Wholesale services also nets across product lines and against cash collateral, provided the master netting and cash collateral agreements include such provisions. While the amounts due from, or owed to, wholesale services' counterparties are settled net, they are recorded on a gross basis in our unaudited Condensed Consolidated Statements of Financial Position as energy marketing receivables and energy marketing payables. | |||||||||||||||||
Our wholesale services segment has trade and credit contracts that contain minimum credit rating requirements. These credit rating requirements typically give counterparties the right to suspend or terminate credit if our credit ratings are downgraded to non-investment grade status. Under such circumstances, wholesale services would need to post collateral to continue transacting business with some of its counterparties. To date, our credit ratings have exceeded the minimum requirements. As of September 30, 2013, December 31, 2012 and September 30, 2012, the collateral that wholesale services would have been required to post if our credit ratings had been downgraded to non-investment grade status would not have had a material impact to our consolidated results of operations, cash flows or financial position. If such collateral were not posted, wholesale services' ability to continue transacting business with these counterparties would be negatively impacted. | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
We have financial and nonfinancial assets and liabilities subject to fair value measurement. The financial assets and liabilities measured and carried at fair value include cash and cash equivalents, and derivative assets and liabilities. The carrying values of receivables, short and long-term investments, accounts payable, short-term debt, other current assets and liabilities, and accrued interest approximate fair value. Our nonfinancial assets and liabilities include pension and other retirement benefits, which are presented in Note 4 to our Consolidated Financial Statements and in related notes included in Item 8 of our 2012 Form 10-K. | |||||||||||||||||
As defined in the authoritative guidance related to fair value measurements and disclosures, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in valuing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. We primarily apply the market approach for recurring fair value measurements to utilize the best available information. Accordingly, we use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. We classify fair value balances based on the observance of those inputs in accordance with the fair value hierarchy. | |||||||||||||||||
Derivative Instruments | |||||||||||||||||
The fair value of the natural gas derivative instruments that we use to manage exposures arising from changing natural gas prices reflects the estimated amounts that we would receive or pay to terminate or close the contracts at the reporting date, taking into account the current unrealized gains or losses on open contracts. We use external market quotes and indices to value substantially all of our derivative instruments. See Note 3 and Note 4 for additional derivative disclosures. | |||||||||||||||||
Distribution Operations Nicor Gas, subject to review by the Illinois Commission, and Elizabethtown Gas, in accordance with a directive from the New Jersey BPU, enter into derivative instruments to hedge the impact of market fluctuations in natural gas prices. In accordance with regulatory requirements, any realized gains and losses related to these derivatives are reflected in natural gas costs and ultimately included in billings to customers. Such derivative instruments are reported at fair value at the end of each reporting period. Hedge accounting is not elected and, in accordance with accounting guidance pertaining to rate-regulated entities, unrealized changes in the fair value of these derivative instruments are deferred or accrued as regulatory assets or liabilities until the related revenue is recognized. | |||||||||||||||||
On June 28, 2013 we entered into an OTC weather derivative to reduce the risk of lower operating margins related to the risk of significantly warmer-than-normal weather in Illinois during the fourth quarter of 2013. The weather derivative is based on fourth quarter 2013 Heating Degree Days at Chicago Midway International Airport and is a cash-settled option. If weather is warmer than normal during the fourth quarter of 2013 the option would partially offset lower operating margin that would result from lower customer usage. Since the option would not be exercised if heating degree days are equal to or higher than normal, the option would not offset margins that are higher because of colder than normal weather. | |||||||||||||||||
Nicor Gas also enters into derivative instruments to reduce the earnings volatility of certain forecasted operating costs arising from fluctuations in natural gas prices, such as the purchase of natural gas for company use. These derivative instruments are carried at fair value. To the extent hedge accounting is not elected, changes in such fair values are recorded in the current period as operation and maintenance expenses. | |||||||||||||||||
Retail Operations We have designated a portion of our derivative instruments, consisting of financial swaps to manage the risk associated with forecasted natural gas purchases and sales, as cash flow hedges. We record derivative gains or losses arising from cash flow hedges in OCI and reclassify them into earnings in the same period that the underlying hedged item is recognized in earnings. | |||||||||||||||||
We currently have minimal hedge ineffectiveness, defined as when the gains or losses on the hedging instrument more than offset the losses or gains on the hedged item. Any cash flow hedge ineffectiveness is recorded in cost of goods sold in the period in which it occurs. We have not designated the remainder of our derivative instruments as hedges for accounting purposes, and we record changes in the fair value of such instruments within cost of goods sold in the period of change. | |||||||||||||||||
We also enter into weather derivative contracts as economic hedges of operating margins in the event of warmer-than-normal weather in the Heating Season. Exchange-traded options are carried at fair value, with changes reflected in operating revenues. Non exchange-traded options are accounted for using the intrinsic value method and do not qualify for hedge accounting designation. Changes in the intrinsic value for non exchange-traded contracts are also reflected in operating revenues in our unaudited Condensed Consolidated Statements of Income. | |||||||||||||||||
Wholesale Services We purchase natural gas for storage when the current market price we pay to buy and transport natural gas plus the cost to store and finance the natural gas is less than the market price we can receive in the future, resulting in a positive net operating margin. We use NYMEX futures and OTC contracts to sell natural gas at that future price to substantially lock in the operating margin we ultimately will realize when the stored natural gas is sold. We also enter into transactions to secure transportation capacity between delivery points in order to serve our customers and various markets. We use NYMEX futures and OTC contracts to capture the price differential or spread between the locations served by the capacity in order to substantially lock in the operating margin we will ultimately realize when we physically flow natural gas between delivery points. These contracts generally meet the definition of derivatives and are carried at fair value, with changes in fair value recorded in operating revenues in the period of change. These contracts are not designated as hedges for accounting purposes. | |||||||||||||||||
The purchase, transportation, storage and sale of natural gas are accounted for on a weighted average cost or accrual basis, as appropriate, rather than on the fair value basis we utilize for the derivatives used to mitigate the natural gas price risk associated with our storage and transportation portfolio. We incur monthly demand charges for the contracted storage and transportation capacity, and payments associated with asset management agreements, and recognize these demand charges and payments in the period they are incurred. This difference in accounting can result in volatility in our reported earnings, even though the economic margin is essentially unchanged from the dates the transactions were consummated. | |||||||||||||||||
Depreciation Expense | |||||||||||||||||
We compute depreciation expense for distribution operations by applying composite, straight-line rates (approved by the state regulatory agencies) to the investment in depreciable property. | |||||||||||||||||
On August 30, 2013 Nicor Gas filed a depreciation study with the Illinois Commission that proposed a composite depreciation rate of 3.07% compared to the current composite rate of 4.10%. On October 23, 2013 the Illinois Commission approved our proposed composite depreciation rate for Nicor Gas. The depreciation rate is effective as of the date the depreciation study was filed and a $4 million reduction to our depreciation expense will be recognized in the fourth quarter of 2013 for the period from August 30, 2013 through September 30, 2013. | |||||||||||||||||
Goodwill | |||||||||||||||||
Our annual goodwill impairment analysis that was performed during the fourth quarter of 2012 indicated that the estimated fair value of a reporting unit within our midstream operations segment, with $14 million of goodwill, exceeded its carrying value by less than 10% as of our testing date. During the third quarter of 2013 we identified a reduction in the near-term market rates at which we are able to re-contract capacity at our storage facilities. We considered a decline in near-term rates an indicator of potential impairment and, accordingly, conducted an interim goodwill impairment analysis during the third quarter of 2013. | |||||||||||||||||
The fair value of this reporting unit was determined utilizing the income and market approaches. The market approach is based on observable transactions of comparable companies and assets. The income approach estimates fair value based upon the present value of estimated future cash flows discounted at an appropriate risk-free rate. These forecasts contain a degree of uncertainty, and changes in the projected cash flows could significantly increase or decrease the estimated fair value of the reporting unit. Key assumptions used in the income approach included long-term growth rates used to determine the terminal value at the end of the discrete forecast period, current and future rates charged for contracted capacity and a discount rate. The discount rate is applied to estimated future cash flows and is one of the most significant assumptions used to determine fair value under the income approach. As interest rates rise, the calculated fair values will decrease. The terminal growth rate was based on a combination of historical and forecasted statistics for real gross domestic product and personal income. The rates we charge to customers for capacity in the storage caverns are based on internal and external rates forecasts. | |||||||||||||||||
While near-term rates have declined, management’s forecast for long-term rates have not significantly changed since our 2012 annual impairment analysis was completed. Our interim goodwill impairment test indicated that the estimated fair value of this reporting unit continues to exceed its carrying value. We continue to monitor this reporting unit for impairment and note that continued declines in capacity or subscription rates or for a sustained period at the current market rates may result in an impairment of goodwill. The risk of impairment of the underlying long-lived assets is not estimated to be significant because the assets have long remaining useful lives and authoritative accounting guidance requires such assets to be tested for impairment based on the basis of undiscounted cash flows over their remaining useful lives. | |||||||||||||||||
Regulatory Assets and Liabilities | |||||||||||||||||
We account for the financial effects of regulation in accordance with authoritative guidance related to regulated entities whose rates are designed to recover the costs of providing service. In accordance with this guidance, incurred costs and estimated future expenditures that otherwise would be charged to expense in the current period are capitalized as regulatory assets when it is probable that such costs or expenditures will be recovered in rates in the future. Similarly, we recognize regulatory liabilities when it is probable that regulators will require customer refunds through future rates or when revenue is collected from customers for estimated expenditures that have not yet been incurred. Generally, regulatory assets are amortized into expense and regulatory liabilities are amortized into income over the period authorized by the regulatory commissions. We are not aware of any evidence that these costs will not be recoverable through either rate riders or base rates, and we believe that we will be able to recover such costs consistent with our historical recoveries. In the event that the provisions of authoritative guidance related to regulated operations were no longer applicable, we would recognize a write-off of regulatory assets that would result in a charge to net income and be classified as an extraordinary item. | |||||||||||||||||
Our regulatory assets and liabilities are summarized in the following table. | |||||||||||||||||
In millions | September 30, | December 31, | September 30, | ||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||
Regulatory assets | |||||||||||||||||
Recoverable regulatory infrastructure program costs | $ | 46 | $ | 47 | $ | 46 | |||||||||||
Recoverable environmental remediation costs | 30 | 38 | 33 | ||||||||||||||
Recoverable pension and retiree welfare benefit costs | 19 | 19 | 27 | ||||||||||||||
Other regulatory assets | 38 | 41 | 52 | ||||||||||||||
Total regulatory assets - current | 133 | 145 | 158 | ||||||||||||||
Recoverable environmental remediation costs | 456 | 438 | 421 | ||||||||||||||
Recoverable pension and retiree welfare benefit costs | 183 | 196 | 228 | ||||||||||||||
Recoverable regulatory infrastructure program costs | 104 | 167 | 194 | ||||||||||||||
Long-term debt fair value adjustment | 84 | 90 | 92 | ||||||||||||||
Other regulatory assets | 44 | 53 | 59 | ||||||||||||||
Total regulatory assets - long-term | 871 | 944 | 994 | ||||||||||||||
Total regulatory assets | $ | 1,004 | $ | 1,089 | $ | 1,152 | |||||||||||
Regulatory liabilities | |||||||||||||||||
Accrued natural gas costs | $ | 104 | $ | 93 | $ | 62 | |||||||||||
Bad debt rider | 37 | 37 | 30 | ||||||||||||||
Accumulated removal costs | 17 | 16 | 14 | ||||||||||||||
Other regulatory liabilities | 16 | 15 | 11 | ||||||||||||||
Total regulatory liabilities - current | 174 | 161 | 117 | ||||||||||||||
Accumulated removal costs | 1,448 | 1,393 | 1,381 | ||||||||||||||
Unamortized investment tax credit | 26 | 29 | 30 | ||||||||||||||
Regulatory income tax liability | 26 | 27 | 23 | ||||||||||||||
Bad debt rider | 20 | 17 | 16 | ||||||||||||||
Other regulatory liabilities | 4 | 11 | 15 | ||||||||||||||
Total regulatory liabilities - long-term | 1,524 | 1,477 | 1,465 | ||||||||||||||
Total regulatory liabilities | $ | 1,698 | $ | 1,638 | $ | 1,582 | |||||||||||
There have been no significant new types of regulatory assets or liabilities beyond those discussed in Note 2 to our Consolidated Financial Statements and related notes in Item 8 of our 2012 Form 10-K. | |||||||||||||||||
Other Income | |||||||||||||||||
Our other income is detailed in the following table for the periods presented. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Allowance for funds used during construction (AFUDC) - equity | $ | 3 | $ | 2 | $ | 9 | $ | 4 | |||||||||
Equity investment income (1) | 3 | 2 | 8 | 10 | |||||||||||||
Other, net | 1 | 2 | 2 | 5 | |||||||||||||
Total other income | $ | 7 | $ | 6 | $ | 19 | $ | 19 | |||||||||
-1 | Primarily relates to our investment in Triton. See Note 8 for additional information. | ||||||||||||||||
Earnings Per Common Share | |||||||||||||||||
We compute basic earnings per common share attributable to AGL Resources Inc. common shareholders by dividing our net income attributable to AGL Resources Inc. by the daily weighted average number of common shares outstanding. Diluted earnings per common share attributable to AGL Resources Inc. common shareholders reflect the potential reduction in earnings per common share attributable to AGL Resources Inc. common shareholders that could occur when potentially dilutive common shares are added to common shares outstanding. | |||||||||||||||||
We derive our potentially dilutive common shares by calculating the number of shares issuable under restricted stock, restricted stock units and stock options. The vesting of certain shares of the restricted stock and restricted stock units depends on the satisfaction of defined performance criteria. The future issuance of shares underlying the outstanding stock options depends on whether the market price of the common shares underlying the options exceeds the respective exercise prices of the stock options. | |||||||||||||||||
The following table shows the calculation of our diluted shares attributable to AGL Resources Inc. common shareholders for the periods presented, if performance units currently earned under the plan ultimately vest and if stock options currently exercisable at prices below the average market prices are exercised. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions (except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income attributable to AGL Resources Inc. | $ | 28 | $ | 9 | $ | 231 | $ | 173 | |||||||||
Denominator: | |||||||||||||||||
Basic weighted average number of shares outstanding (1) | 118.2 | 117.1 | 117.8 | 116.9 | |||||||||||||
Effect of dilutive securities | 0.3 | 0.4 | 0.3 | 0.4 | |||||||||||||
Diluted weighted average number of shares outstanding | 118.5 | 117.5 | 118.1 | 117.3 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.24 | $ | 0.08 | $ | 1.96 | $ | 1.48 | |||||||||
Diluted | $ | 0.24 | $ | 0.08 | $ | 1.96 | $ | 1.48 | |||||||||
-1 | Daily weighted average shares outstanding. | ||||||||||||||||
Acquisitions | |||||||||||||||||
On January 31, 2013 our retail operations segment acquired approximately 500,000 service plans and certain other assets from NiSource Inc. for $120 million, plus $2 million of working capital. These service plans provide home warranty protection solutions and energy efficiency leasing solutions for residential and small business utility customers and complement the retail services business acquired in the Nicor merger. The preliminary allocation of the purchase price is as follows: | |||||||||||||||||
In millions | |||||||||||||||||
Current assets | $ | 5 | |||||||||||||||
PP&E | 11 | ||||||||||||||||
Goodwill | 46 | ||||||||||||||||
Intangible assets | 64 | ||||||||||||||||
Current liabilities | (4 | ) | |||||||||||||||
Total purchase price | $ | 122 | |||||||||||||||
Intangible assets related to this acquisition are primarily customer relationships of $47 million and trade names of $17 million. The amortization periods are estimated to be 14 years for customer relationships and 10 years for trade names. | |||||||||||||||||
On June 30, 2013 our retail operations segment acquired approximately 33,000 residential and commercial energy customer relationships in Illinois for $32 million. These customer relationships have been recorded as an intangible asset and are expected to be amortized on a straight-line basis over an estimated period of 14 to 16 years. | |||||||||||||||||
Sale of Compass Energy | |||||||||||||||||
On May 1, 2013 we sold Compass Energy, a non-regulated retail natural gas business supplying commercial and industrial customers, which was part of our wholesale services segment. We received an initial cash payment of $12 million, which resulted in an $11 million pre-tax gain ($5 million net of tax). Under the terms of the purchase and sale agreement, we are eligible to receive contingent cash consideration up to $8 million with a guaranteed minimum receipt of $3 million. The contingent cash consideration will be received from the buyer over a five-year earn out period based upon the financial performance of Compass Energy. | |||||||||||||||||
Accounting Developments | |||||||||||||||||
On January 1, 2013 we adopted ASU 2011-11, Disclosures about Offsetting Assets and Liabilities and ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which require disclosures about offsetting and related arrangements in order to help financial statement users better understand the effect of those arrangements on our financial position. This guidance had no impact on our unaudited Condensed Consolidated Financial Statements. See Note 4 for additional disclosures about our offsetting of derivative assets and liabilities. | |||||||||||||||||
On January 1, 2013 we adopted ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires enhanced disclosures of amounts reclassified out of accumulated other comprehensive income by component. This guidance had no impact on our unaudited Condensed Consolidated Financial Statements. See Note 7 for additional disclosures relating to accumulated other comprehensive income. |
Note_3_Fair_Value_Measurements
Note 3 - Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | Note 3 - Fair Value Measurements | ||||||||||||||||||||||||
The methods used to determine the fair values of our assets and liabilities are described within Note 2. | |||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||
The following table summarizes, by level within the fair value hierarchy, our derivative assets and liabilities that were carried at fair value on a recurring basis in our unaudited Consolidated Statements of Financial Position as of the dates presented. See Note 4 for additional derivative instrument information. | |||||||||||||||||||||||||
Recurring fair values - Derivative instruments | |||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | 30-Sep-12 | |||||||||||||||||||||||
In millions | Assets (1) | Liabilities | Assets (1) | Liabilities | Assets (1) | Liabilities | |||||||||||||||||||
Natural gas derivatives | |||||||||||||||||||||||||
Quoted prices in active markets (Level 1) | $ | 4 | $ | (52 | ) | $ | 8 | $ | (45 | ) | $ | 11 | $ | (55 | ) | ||||||||||
Significant other observable inputs (Level 2) | 60 | (41 | ) | 96 | (30 | ) | 100 | (33 | ) | ||||||||||||||||
Netting of cash collateral | 45 | 49 | 33 | 36 | 47 | 46 | |||||||||||||||||||
Total carrying value (2) (3) | $ | 109 | $ | (44 | ) | $ | 137 | $ | (39 | ) | $ | 158 | $ | (42 | ) | ||||||||||
Interest rate derivatives | |||||||||||||||||||||||||
Significant other observable inputs (Level 2) | $ | - | $ | - | $ | 3 | $ | - | $ | - | $ | - | |||||||||||||
-1 | Balances of $3 million of premium at September 30, 2013, $4 million at December 31, 2012 and $1 million at September 30, 2012 associated with weather derivatives have been excluded, as they are not material and some are accounted for based on intrinsic value. | ||||||||||||||||||||||||
-2 | There were no material unobservable inputs (Level 3) for any of the dates presented. | ||||||||||||||||||||||||
-3 | There were no material transfers between Level 1, Level 2 or Level 3 for any of the dates presented. | ||||||||||||||||||||||||
Money Market Funds | |||||||||||||||||||||||||
The fair values of our money market funds were recorded within short-term investments as follows: | |||||||||||||||||||||||||
In millions | At September 30, | At December 31, | At September 30, | ||||||||||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||||||||||
Money market funds (1) | $ | 48 | $ | 66 | $ | 69 | |||||||||||||||||||
-1 | Carried at fair value and classified as Level 1 within the fair value hierarchy. | ||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||
Our long-term debt is recorded at amortized cost, with the exception of Nicor Gas’ first mortgage bonds, which were recorded at their acquisition date fair value. The fair value adjustment of Nicor Gas’ first mortgage bonds is being amortized over the lives of the bonds. We estimate the fair value of our debt using a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration, optionality and risk profile. The following table presents the amortized cost and fair value of our long-term debt as of the following dates. | |||||||||||||||||||||||||
In millions | 30-Sep-13 | 31-Dec-12 | 30-Sep-12 | ||||||||||||||||||||||
Long-term debt amortized cost | $ | 3,816 | $ | 3,553 | $ | 3,556 | |||||||||||||||||||
Long-term debt fair value (1) | 4,024 | 4,057 | 4,100 | ||||||||||||||||||||||
-1 | Fair value determined using Level 2 inputs. | ||||||||||||||||||||||||
Note_4_Derivative_Instruments
Note 4 - Derivative Instruments | 9 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 4 - Derivative Instruments | |||||||||||||||||||||||||||||||||
A description of our objectives and strategies for using derivative instruments, related accounting policies and methods used to determine their fair values are described in Note 2. See Note 3 for additional fair value disclosures. | ||||||||||||||||||||||||||||||||||
Certain of our derivative instruments contain credit-risk-related or other contingent features that could require us to post collateral in the normal course of business when our financial instruments are in net liability positions. As of September 30, 2013, for agreements with such features, derivative instruments with liability fair values totaled $44 million, for which we had posted no collateral to our counterparties. In addition, our energy marketing receivables and payables, which also have credit-risk-related or other contingent features, are discussed in Note 2. Our derivative instrument activities are included within operating cash flows as an adjustment to net income of $37 million and $61 million for the nine months ended September 30, 2013 and 2012, respectively. See Note 3 for additional derivative instrument information. The following table summarizes the various ways in which we account for our derivative instruments and the impact on our unaudited Condensed Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||||
Recognition and Measurement | ||||||||||||||||||||||||||||||||||
Accounting Treatment | Statements of Financial Position | Income Statement | ||||||||||||||||||||||||||||||||
Cash flow hedge | Derivative carried at fair value | Ineffective portion of the gain or loss on the derivative instrument is recognized in earnings | ||||||||||||||||||||||||||||||||
Effective portion of the gain or loss on the derivative instrument is reported initially as a component of accumulated OCI (loss) | Effective portion of the gain or loss on the derivative instrument is reclassified out of accumulated OCI (loss) and into earnings when the hedged transaction affects earnings | |||||||||||||||||||||||||||||||||
Fair value hedge | Derivative carried at fair value | Gains or losses on the derivative instrument and the hedged item are recognized in earnings. As a result, to the extent the hedge is effective, the gains or losses will offset and there is no impact on earnings. Any hedge ineffectiveness will impact earnings | ||||||||||||||||||||||||||||||||
Changes in fair value of the hedged item are recorded as adjustments to the carrying amount of the hedged item | ||||||||||||||||||||||||||||||||||
Not designated as hedges | Derivative carried at fair value | Realized and unrealized gains or losses on the derivative instrument are recognized in earnings | ||||||||||||||||||||||||||||||||
Distribution operations’ gains and losses on derivative instruments are deferred as regulatory assets or liabilities until included in cost of goods sold | Gains or losses on these derivative instruments are ultimately included in billings to customers and are recognized in cost of goods sold in the same period as the related revenues | |||||||||||||||||||||||||||||||||
Distribution Operations | ||||||||||||||||||||||||||||||||||
The following amounts represent net realized gains (losses) related to hedging natural gas costs for the periods presented. | ||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Nicor Gas | $ | (6 | ) | $ | (12 | ) | $ | 2 | $ | (60 | ) | |||||||||||||||||||||||
Elizabethtown Gas | (1 | ) | (6 | ) | (5 | ) | (23 | ) | ||||||||||||||||||||||||||
Quantitative Disclosures Related to Derivative Instruments | ||||||||||||||||||||||||||||||||||
As of the dates presented, our derivative instruments were comprised of both long and short natural gas positions. A long position is a contract to purchase natural gas, and a short position is a contract to sell natural gas. We had a net long natural gas contracts position outstanding in the following quantities: | ||||||||||||||||||||||||||||||||||
In Bcf (1) | September 30, | December 31, | September 30, | |||||||||||||||||||||||||||||||
2013 (2) | 2012 | 2012 | ||||||||||||||||||||||||||||||||
Hedge designation | ||||||||||||||||||||||||||||||||||
Cash flow hedges | 3 | 6 | 7 | |||||||||||||||||||||||||||||||
Not designated as hedges | 40 | 96 | 35 | |||||||||||||||||||||||||||||||
Total hedges | 43 | 102 | 42 | |||||||||||||||||||||||||||||||
Hedge position | ||||||||||||||||||||||||||||||||||
Short position | (2,788 | ) | (1,955 | ) | (1,994 | ) | ||||||||||||||||||||||||||||
Long position | 2,831 | 2,057 | 2,036 | |||||||||||||||||||||||||||||||
Net long position | 43 | 102 | 42 | |||||||||||||||||||||||||||||||
-1 | Volumes related to Nicor Gas exclude variable-priced contracts, which are accounted for as derivatives, but whose fair values are not directly impacted by changes in commodity prices. | |||||||||||||||||||||||||||||||||
-2 | Approximately 97% of these contracts have durations of two years or less and the remaining 3% expire between 2 and 6 years. | |||||||||||||||||||||||||||||||||
Derivative Instruments in our Unaudited Condensed Consolidated Statements of Financial Position | ||||||||||||||||||||||||||||||||||
The following table presents the fair values and unaudited Condensed Consolidated Statements of Financial Position classifications of our derivative instruments as of the dates presented. | ||||||||||||||||||||||||||||||||||
Classification | September 30, | December 31, | September 30, | December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2012 | 2011 | |||||||||||||||||||||||||||||||
In millions | (1) (2) | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||
Designated as cash flow hedges and fair value hedges | ||||||||||||||||||||||||||||||||||
Natural gas contracts | Current | $ | 6 | $ | (5 | ) | $ | 1 | $ | (2 | ) | $ | 4 | $ | (3 | ) | $ | 9 | $ | (12 | ) | |||||||||||||
Natural gas contracts | Long-term | - | - | 3 | - | - | - | - | - | |||||||||||||||||||||||||
Interest rate swap agreements | Long-term | - | - | - | - | - | - | 13 | (13 | ) | ||||||||||||||||||||||||
Total | 6 | (5 | ) | 4 | (2 | ) | 4 | (3 | ) | 22 | (25 | ) | ||||||||||||||||||||||
Not designated as cash flow hedges | ||||||||||||||||||||||||||||||||||
Natural gas contracts | Current | 445 | (462 | ) | 394 | (355 | ) | 427 | (408 | ) | 706 | (689 | ) | |||||||||||||||||||||
Natural gas contracts | Long-term | 143 | (153 | ) | 45 | (50 | ) | 54 | (50 | ) | 133 | (116 | ) | |||||||||||||||||||||
Total | 588 | (615 | ) | 439 | (405 | ) | 481 | (458 | ) | 839 | (805 | ) | ||||||||||||||||||||||
Gross amount of recognized assets and liabilities | 594 | (620 | ) | 443 | (407 | ) | 485 | (461 | ) | 861 | (830 | ) | ||||||||||||||||||||||
Gross amounts offset in our unaudited Condensed Consolidated Statements of Financial Position | (482 | ) | 576 | (299 | ) | 368 | (326 | ) | 419 | (573 | ) | 720 | ||||||||||||||||||||||
Net amounts of assets and liabilities presented in our unaudited Condensed Consolidated Statements of Financial Position | $ | 112 | $ | (44 | ) | $ | 144 | $ | (39 | ) | $ | 159 | $ | (42 | ) | $ | 288 | $ | (110 | ) | ||||||||||||||
-1 | The gross amounts of recognized assets and liabilities are netted within our unaudited Condensed Consolidated Statements of Financial Position to the extent that we have netting arrangements with the counterparties. | |||||||||||||||||||||||||||||||||
-2 | As required by the authoritative guidance related to derivatives and hedging, the gross amounts of recognized assets and liabilities above do not include cash collateral held on deposit in broker margin accounts of $94 million as of September 30, 2013, $69 million as of December 31, 2012, $93 million as of September 30, 2012 and $147 million as of December 31, 2011. Cash collateral is included in the “Gross amounts offset in our unaudited Condensed Consolidated Statements of Financial Position” line of this table. | |||||||||||||||||||||||||||||||||
Derivative Instruments Impacts in our Unaudited Condensed Consolidated Statements of Income | ||||||||||||||||||||||||||||||||||
The following table presents the after tax (gain) loss amounts of our derivative instruments in our unaudited Condensed Consolidated Statements of Income for the periods presented. | ||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Designated as cash flow hedges | ||||||||||||||||||||||||||||||||||
Natural gas contracts reclassified from OCI to cost of goods sold | $ | (1 | ) | $ | (2 | ) | $ | - | $ | (2 | ) | |||||||||||||||||||||||
Natural gas contracts reclassified from OCI to operation and maintenance expense | - | (2 | ) | - | (1 | ) | ||||||||||||||||||||||||||||
Interest rate swaps reclassified from OCI to interest expense | 1 | 2 | (2 | ) | (1 | ) | ||||||||||||||||||||||||||||
Not designated as hedges | ||||||||||||||||||||||||||||||||||
Natural gas contracts - net fair value adjustments recorded in operating revenues (1) | (14 | ) | (17 | ) | (16 | ) | (40 | ) | ||||||||||||||||||||||||||
Natural gas contracts - net fair value adjustments recorded in cost of goods sold (2) | - | 1 | (1 | ) | (2 | ) | ||||||||||||||||||||||||||||
Total (losses) on derivative instruments | $ | (14 | ) | $ | (18 | ) | $ | (19 | ) | $ | (46 | ) | ||||||||||||||||||||||
-1 | Associated with the fair value of existing derivative instruments at September 30, 2013 and 2012. | |||||||||||||||||||||||||||||||||
-2 | Excludes losses recorded in operating revenues or cost of goods sold associated with weather derivatives of $3 million for the nine months ended September 30, 2013 and gains of $14 million for the nine months ended September 30, 2012. | |||||||||||||||||||||||||||||||||
Any amounts recognized in operating income, related to ineffectiveness or due to a forecasted transaction that is no longer expected to occur were immaterial for the nine months ended September 30, 2013 and 2012. | ||||||||||||||||||||||||||||||||||
Our expected pre-tax net loss to be reclassified from OCI and recognized in cost of goods sold, operation and maintenance expenses and interest expense in our unaudited Condensed Consolidated Statements of Income over the next 12 months is less than $1 million. These pre-tax deferred gains and losses are recorded in OCI related to natural gas derivative contracts associated with retail operations and Nicor Gas and interest rate swaps with AGL Capital. The expected losses are based upon the fair values of these financial instruments at September 30, 2013. | ||||||||||||||||||||||||||||||||||
There have been no other significant changes to our derivative instruments, as described in Note 2 and Note 4 to our Consolidated Financial Statements and related notes included in Item 8 of our 2012 Form 10-K. |
Note_5_Employee_Benefit_Plans
Note 5 - Employee Benefit Plans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 5 - Employee Benefit Plans | ||||||||||||||||
Pension Benefits | |||||||||||||||||
On December 31, 2012 the AGL Resources Inc. Retirement Plan (AGL Plan), the Nicor Companies Pension and Retirement Plan (Nicor Plan) and the Employees’ Retirement Plan of NUI Corporation (NUI Plan) were merged with, and into, the AGL Plan. The eligibility and benefit terms for participants under the Nicor Plan and the NUI Plan were not changed as a result of the plan merger. The AGL Plan is described in Note 6 to our Consolidated Financial Statements and related notes included in Item 8 of our 2012 Form 10-K. | |||||||||||||||||
Following are the components of our pension benefit costs for the periods indicated. | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 7 | $ | 7 | $ | 22 | $ | 21 | |||||||||
Interest cost | 11 | 10 | 32 | 32 | |||||||||||||
Expected return on plan assets | (16 | ) | (16 | ) | (47 | ) | (48 | ) | |||||||||
Net amortization of prior service cost | - | - | (1 | ) | (1 | ) | |||||||||||
Recognized actuarial loss | 9 | 9 | 26 | 26 | |||||||||||||
Net periodic pension benefit cost | $ | 11 | $ | 10 | $ | 32 | $ | 30 | |||||||||
Retiree Welfare Benefits | |||||||||||||||||
On December 31, 2012 the Nicor Gas Welfare Benefit Plan (Nicor Welfare Plan) was terminated and as of January 1, 2013 all participants under that plan became eligible to participate in the Health and Welfare Plan for Retirees and Inactive Employees of AGL Resources Inc. (AGL Welfare Plan). This change in plan participation eligibility did not affect the benefit terms under the predecessor plans. The Nicor Welfare Plan benefits are now being offered to such participants under the AGL Welfare Plan. The benefits of the AGL Welfare Plan are described in Note 6 to our Consolidated Financial Statements and related notes included in Item 8 of our 2012 Form 10-K. | |||||||||||||||||
Following are the components of our retiree welfare benefit costs for the periods indicated. | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 2 | $ | 3 | |||||||||
Interest cost | 3 | 4 | 10 | 12 | |||||||||||||
Expected return on plan assets | (1 | ) | (1 | ) | (4 | ) | (4 | ) | |||||||||
Net amortization of prior service cost | (1 | ) | (1 | ) | (3 | ) | (2 | ) | |||||||||
Recognized actuarial loss | 2 | 2 | 6 | 7 | |||||||||||||
Net periodic welfare benefit cost | $ | 4 | $ | 5 | $ | 11 | $ | 16 | |||||||||
Capitalized Costs | |||||||||||||||||
Net pension benefit and net welfare benefit costs are included in operation and maintenance expense, except for a portion that is capitalized as a cost of constructing natural gas distribution facilities. | |||||||||||||||||
Contributions | |||||||||||||||||
Our employees generally do not contribute to these pension and retiree welfare plans. We fund the qualified pension plan by contributing at least the minimum amounts required by applicable regulations and as recommended by our actuary. However, we may contribute in excess of the minimum required amounts. | |||||||||||||||||
As a result of the 2012 merging of our pension plans, there were no contributions required during the nine months ended September 30, 2013. We contributed a combined $32 million to the AGL Plan and the NUI Plan during the same period last year. For more information on our pension plans, see Note 6 to our Consolidated Financial Statements and related notes included in Item 8 of our 2012 Form 10-K. |
Note_6_Debt_and_Credit_Facilit
Note 6 - Debt and Credit Facilities | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||
Debt Disclosure [Text Block] | Note 6 - Debt and Credit Facilities | |||||||||||||||||||||||||
The following table provides maturity dates, year-to-date weighted average interest rates and amounts outstanding for our various debt securities and facilities that are included in our unaudited Condensed Consolidated Statements of Financial Position. For additional information on our debt, see Note 8 in our Consolidated Financial Statements and related notes in Item 8 of our 2012 Form 10-K. | ||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-12 | |||||||||||||||||||||||||
Dollars in millions | Year(s) due | Weighted | Outstanding | Outstanding at December 31, | Weighted | Outstanding | ||||||||||||||||||||
average | 2012 | average | ||||||||||||||||||||||||
interest rate (1) | interest rate (1) | |||||||||||||||||||||||||
Short-term debt | ||||||||||||||||||||||||||
Commercial paper - AGL Capital (2) | 2013 | 0.4 | % | $ | 680 | $ | 1,063 | 0.5 | % | $ | 875 | |||||||||||||||
Commercial paper - Nicor Gas (2) | 2013 | 0.3 | 152 | 314 | 0.5 | 173 | ||||||||||||||||||||
Total short-term debt | 0.4 | 832 | 1,377 | 0.5 | 1,048 | |||||||||||||||||||||
Current portion of long-term debt and capital leases | ||||||||||||||||||||||||||
Current portion of long-term debt | n/a | - | - | 225 | 4.6 | 225 | ||||||||||||||||||||
Current portion of capital leases | n/a | - | - | 1 | 4.9 | 1 | ||||||||||||||||||||
Total current portion of long-term debt and capital leases | - | $ | - | $ | 226 | 4.6 | % | $ | 226 | |||||||||||||||||
Long-term debt - excluding current portion | ||||||||||||||||||||||||||
Senior notes | 2015 | - | 2043 | 5.1 | % | $ | 2,825 | $ | 2,325 | 5.1 | % | $ | 2,325 | |||||||||||||
First mortgage bonds | 2016 | - | 2038 | 5.6 | 500 | 500 | 5.6 | 500 | ||||||||||||||||||
Gas facility revenue bonds | 2022 | - | 2033 | 0.8 | 200 | 200 | 1.1 | 200 | ||||||||||||||||||
Medium-term notes | 2017 | - | 2027 | 7.8 | 181 | 181 | 7.8 | 181 | ||||||||||||||||||
Total principal long-term debt | 4.9 | 3,706 | 3,206 | 5 | 3,206 | |||||||||||||||||||||
Fair value adjustment of long-term debt (3) | 2016 | - | 2038 | n/a | 94 | 103 | n/a | 106 | ||||||||||||||||||
Unamortized debt premium, net | n/a | n/a | 16 | 18 | n/a | 18 | ||||||||||||||||||||
Total non-principal long-term debt | n/a | 110 | 121 | n/a | 124 | |||||||||||||||||||||
Total long-term debt | $ | 3,816 | $ | 3,327 | $ | 3,330 | ||||||||||||||||||||
Total debt | $ | 4,648 | $ | 4,930 | $ | 4,604 | ||||||||||||||||||||
-1 | Interest rates are calculated based on the daily weighted average balance outstanding for the nine months ended September 30. | |||||||||||||||||||||||||
-2 | As of September 30, 2013, the effective interest rates on our commercial paper borrowings were 0.4% for AGL Capital and 0.2% for Nicor Gas. | |||||||||||||||||||||||||
-3 | See Note 3 for additional information on our fair value measurements. | |||||||||||||||||||||||||
AGL and Nicor Gas Credit Facilities | ||||||||||||||||||||||||||
In October 2013 we notified the administrative agents for our two credit facilities of our request to extend the maturity date of each facility by one year, in accordance with the terms of the respective credit agreements. Subject to receiving the required lender consents for the extensions, the AGL Credit Facility and Nicor Gas Credit Facility maturity dates will be extended to November 10, 2017 and December 15, 2017, respectively. The existing terms, conditions and pricing under the agreements will remain unchanged. Upon receipt of consents from all lenders under the respective agreements, we will pay $1 million in extension fees, which will be amortized over the remaining periods of the respective credit facilities. | ||||||||||||||||||||||||||
Long-Term Debt | ||||||||||||||||||||||||||
On May 16, 2013 we issued $500 million in 30-year senior notes with a fixed interest rate of 4.4%. The net proceeds were used to repay a portion of AGL Capital’s commercial paper, including $225 million we borrowed to redeem our senior notes that matured on April 15, 2013. We fully and unconditionally guarantee all debt issued by AGL Capital. | ||||||||||||||||||||||||||
During the first quarter of 2013, we refinanced $200 million of our outstanding tax-exempt gas facility revenue bonds, $180 million of which were previously issued by the New Jersey Economic Development Authority and $20 million of which were previously issued by Brevard County, Florida. The refinancing involved a combination of the issuance of $60 million of refunding bonds to, and the purchase of $140 million of existing bonds by, a syndicate of banks. Our relationship with the syndicate of banks regarding the bonds is governed by an agreement that contains representations, warranties, covenants and default provisions consistent with those contained in similar financing documents of ours. All of the bonds are floating-rate instruments. AGL Resources had no cash receipts or payments in connection with the refinancing. The letters of credit providing credit support for the outstanding revenue bonds along with other related agreements were terminated as a result of the refinancing. | ||||||||||||||||||||||||||
Interest Rate Swaps | ||||||||||||||||||||||||||
On April 4, 2013 we entered into two ten-year, $50 million fixed-rate forward-starting interest rate swaps to hedge any potential interest rate volatility prior to our issuance of senior notes in the second quarter 2013. The average interest rate on these swaps was 1.98%. Including existing forward-starting interest rate swap hedges, which were executed last year, we had fixed-rate swaps totaling $300 million in notional value at an average interest rate of 1.85%. We designated the forward-starting interest rate swaps as cash flow hedges of our second quarter 2013 senior note issuance. The interest rate swaps were settled on May 16, 2013, the senior note issuance date, at which time we received $6 million in proceeds. The $6 million will be amortized to reduce interest expense over the first 10 years of the 30-year senior notes. | ||||||||||||||||||||||||||
Financial and Non-Financial Covenants | ||||||||||||||||||||||||||
The AGL Credit Facility and the Nicor Gas Credit Facility each include a financial covenant that requires us to maintain a ratio of total debt to total capitalization of no more than 70% at the end of any fiscal month; however, our goal is to maintain these ratios at levels between 50% and 60%.These ratios, as calculated in accordance with the debt covenants, include standby letters of credit and surety bonds and exclude accumulated OCI items related to non-cash OCI pension adjustments, other post-retirement benefits liability adjustments and accounting adjustments for cash flow hedges. Adjusting for these items, the following table contains our debt-to-capitalization ratios for the dates presented, which are below the maximum allowed. | ||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | 30-Sep-12 | ||||||||||||||||||||||||
AGL Credit Facility | 55 | % | 58 | % | 56 | % | ||||||||||||||||||||
Nicor Gas Credit Facility | 50 | % | 55 | % | 51 | % | ||||||||||||||||||||
The credit facilities contain certain non-financial covenants that, among other things, restrict liens and encumbrances, loans and investments, acquisitions, dividends and other restricted payments, asset dispositions, mergers and consolidations and other matters customarily restricted in such agreements. | ||||||||||||||||||||||||||
Default Provisions | ||||||||||||||||||||||||||
Our credit facilities and other financial obligations include provisions that, if not complied with, could require early payment or similar actions. The most important default events include: | ||||||||||||||||||||||||||
● | a maximum leverage ratio | |||||||||||||||||||||||||
● | insolvency events and nonpayment of scheduled principal or interest payments | |||||||||||||||||||||||||
● | acceleration of other financial obligations | |||||||||||||||||||||||||
● | change of control provisions | |||||||||||||||||||||||||
We have no triggering events in our debt instruments that are tied to changes in our specified credit ratings or our stock price, and have not entered into any transaction that requires us to issue equity based on credit ratings or other triggering events. We were in compliance with all existing debt provisions and covenants, both financial and non-financial, for all periods presented. |
Note_7_Equity
Note 7 - Equity | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity [Abstract] | |||||||||||||
Other Comprehensive Income, Noncontrolling Interest [Text Block] | Note 7 - Equity | ||||||||||||
Our other comprehensive income amounts are aggregated within our accumulated other comprehensive loss. The following table provides changes in the components of our accumulated other comprehensive loss balance, net of the related income tax effects. | |||||||||||||
2013 | |||||||||||||
In millions (1) | Cash | Retirement | Total | ||||||||||
flow | benefit | ||||||||||||
hedges | plans | ||||||||||||
For the three months ended September 30 | |||||||||||||
Balance as of June 30 | $ | (1 | ) | $ | (208 | ) | $ | (209 | ) | ||||
Other comprehensive income, before reclassifications | - | - | - | ||||||||||
Amounts reclassified from accumulated other comprehensive income | - | 1 | 1 | ||||||||||
Net current-period other comprehensive (loss) income | - | 1 | 1 | ||||||||||
Balance as of September 30 | $ | (1 | ) | $ | (207 | ) | $ | (208 | ) | ||||
For the nine months ended September 30 | |||||||||||||
Balance as of December 31, prior year | $ | (3 | ) | $ | (215 | ) | $ | (218 | ) | ||||
Other comprehensive income, before reclassifications | - | - | - | ||||||||||
Amounts reclassified from accumulated other comprehensive income | 2 | 8 | 10 | ||||||||||
Net current-period other comprehensive income | 2 | 8 | 10 | ||||||||||
Balance as of September 30 | $ | (1 | ) | $ | (207 | ) | $ | (208 | ) | ||||
-1 | All amounts are net of income taxes. Amounts in parentheses indicate debits to accumulated other comprehensive loss. | ||||||||||||
The following table provides details of the reclassifications out of accumulated other comprehensive loss for the three and nine months ended September 30, 2013, and the ultimate impact on net income. | |||||||||||||
In millions | Three | Nine | |||||||||||
Months | Months | ||||||||||||
Cash flow hedges | |||||||||||||
Natural gas contracts | (1 | ) | - | Cost of goods sold | |||||||||
Interest rate contracts | 1 | (3 | ) | Interest expense, net | |||||||||
Income tax benefit | - | 1 | |||||||||||
Total cash flow hedges | - | (2 | ) | ||||||||||
Retirement benefit plan amortization of | |||||||||||||
Actuarial losses | (6 | ) | (19 | ) | See (2), below | ||||||||
Prior service credits | 2 | 4 | See (2), below | ||||||||||
Total before income tax | (4 | ) | (15 | ) | |||||||||
Income tax benefit | 3 | 7 | |||||||||||
Total retirement benefit plans | (1 | ) | (8 | ) | |||||||||
Total reclassification for the period | $ | (1 | ) | $ | (10 | ) | |||||||
-1 | Amounts in parentheses indicate debits, or reductions, to profit/loss and credits to accumulated other comprehensive loss. Except for retirement benefit plan amounts, the profit/loss impacts are immediate. | ||||||||||||
-2 | Amortization of these accumulated other comprehensive loss components is included in the computation of net periodic benefit cost. See Note 5 for additional details about net periodic benefit cost. | ||||||||||||
Note_8_NonWholly_Owned_Entitie
Note 8 - Non-Wholly Owned Entities | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||
Noncontrolling Interest Disclosure [Text Block] | Note 8 - Non-Wholly Owned Entities | ||||||||||||||||||||||||||||||||||||
Variable Interest Entities | |||||||||||||||||||||||||||||||||||||
On a quarterly basis, we evaluate all of our ownership interests to determine if they represent a VIE as defined by the authoritative accounting guidance on consolidation, and if so, which party is the primary beneficiary. We have determined that SouthStar, a joint venture owned 85% by us and 15% by Piedmont, is our only VIE for which we are the primary beneficiary, which requires us to consolidate its assets, liabilities and statements of income. See Note 10 to our Consolidated Financial Statements and related notes included in Item 8 of our 2012 Form 10-K. Earnings from SouthStar in 2013 and 2012 were allocated entirely in accordance with the ownership interests. | |||||||||||||||||||||||||||||||||||||
On September 1, 2013 we contributed to SouthStar our Illinois retail energy businesses with approximately 108,000 customers. Additionally, Piedmont contributed to SouthStar $22.5 million in cash to maintain its 15% ownership in the joint venture. In connection with the contribution of our Illinois retail energy businesses, we provided certain limited protections to Piedmont regarding the value of the contributed businesses related to goodwill and other intangible assets. Piedmont’s contribution is reflected as an increase to noncontrolling interest on our unaudited Condensed Consolidated Statements of Financial Position and a financing activity on our unaudited Condensed Consolidated Statements of Cash Flows. These funds were used to reduce our commercial paper borrowings. | |||||||||||||||||||||||||||||||||||||
SouthStar markets natural gas and related services under the trade name Georgia Natural Gas to retail customers primarily in Georgia, under various other trade names to retail customers in Illinois, Ohio, Florida, Maryland and New York, and to commercial and industrial customers in the southeastern United States. | |||||||||||||||||||||||||||||||||||||
There have been no significant changes to the primary risks associated with SouthStar beyond those discussed in our risk factors included in Item 1A of our 2012 Form 10-K. | |||||||||||||||||||||||||||||||||||||
SouthStar’s financial results are seasonal in nature, with the majority of its earnings occurring during the first and fourth quarters of each year. SouthStar’s current assets consist primarily of natural gas inventory, derivative instruments and receivables from its customers. SouthStar also has receivables from us due to its participation in AGL Capital’s commercial paper program. See Note 2 for additional discussions of inventories. SouthStar’s restricted assets consist of customer deposits and were immaterial as of September 30, 2013 and 2012. SouthStar’s current liabilities consist primarily of accounts payable for natural gas purchases, other accrued expenses, customer deposits, derivative instruments and payables to us from its participation in AGL Capital’s commercial paper program. | |||||||||||||||||||||||||||||||||||||
SouthStar’s other contractual commitments and obligations, including operating leases and agreements with third party providers, do not contain terms that would trigger material financial obligations in the event that such contracts were terminated. SouthStar’s creditors have no recourse to our general credit beyond our corporate guarantees that we have provided to SouthStar’s counterparties and natural gas suppliers. We have provided no financial or other support that was not previously contractually required. With the exception of our corporate guarantees, we have not entered into any arrangements that could require us to provide financial support to SouthStar. | |||||||||||||||||||||||||||||||||||||
Price and volume fluctuations of SouthStar’s natural gas inventories can cause significant variations in our working capital and cash flow from operations. Changes to SouthStar’s working capital resulting from the impact of weather, the timing of customer collections, payments for natural gas purchases and cash collateral amounts that SouthStar maintains to facilitate its derivative instruments also impact our operating cash flow. | |||||||||||||||||||||||||||||||||||||
Cash flows used in our investing activities include capital expenditures for SouthStar of $2 million for the nine months ended September 30, 2013 and 2012. Cash flows used in our financing activities include SouthStar’s distribution to Piedmont for its portion of SouthStar’s annual earnings from the previous year. Generally, this distribution occurs in the first quarter of each fiscal year. For the nine months ended September 30, 2013 SouthStar distributed $17 million to Piedmont and $14 million during the same period last year. The increase was primarily the result of increased earnings year-over-year and a distribution of excess working capital from the joint venture. | |||||||||||||||||||||||||||||||||||||
The following table provides additional information on all of SouthStar’s assets and liabilities as of the dates presented, which are consolidated within our unaudited Condensed Consolidated Statements of Financial Position. | |||||||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | 30-Sep-12 | |||||||||||||||||||||||||||||||||||
In millions | Consolidated | SouthStar | Consolidated | SouthStar | Consolidated | SouthStar | |||||||||||||||||||||||||||||||
Current assets | $ | 2,091 | $ | 192 | 9 | % | $ | 2,668 | $ | 201 | 8 | % | $ | 2,135 | $ | 152 | 7 | % | |||||||||||||||||||
Goodwill and other intangible assets | 2,063 | 141 | 7 | % | 1,933 | - | - | 1,913 | - | - | |||||||||||||||||||||||||||
Long-term assets and other deferred debits | 9,750 | 11 | - | 9,540 | 10 | - | 9,455 | 10 | - | ||||||||||||||||||||||||||||
Total assets | $ | 13,904 | $ | 344 | 2 | % | $ | 14,141 | $ | 211 | 1 | % | $ | 13,503 | $ | 162 | 1 | % | |||||||||||||||||||
Current liabilities | $ | 2,407 | $ | 73 | 3 | % | $ | 3,338 | $ | 62 | 2 | % | $ | 2,764 | $ | 42 | 2 | % | |||||||||||||||||||
Long-term liabilities and other deferred credits | 7,934 | - | - | 7,368 | - | - | 7,341 | - | - | ||||||||||||||||||||||||||||
Total Liabilities | 10,341 | 73 | 1 | % | 10,706 | 62 | 1 | 10,105 | 42 | - | |||||||||||||||||||||||||||
Equity | 3,563 | 271 | 8 | % | 3,435 | 149 | 4 | 3,398 | 120 | 4 | |||||||||||||||||||||||||||
Total liabilities and equity | $ | 13,904 | $ | 344 | 2 | % | $ | 14,141 | $ | 211 | 1 | % | 13,503 | $ | 162 | 1 | % | ||||||||||||||||||||
The following table provides additional information on SouthStar’s operating revenues and operating expenses for the periods presented, which are consolidated within our unaudited Condensed Consolidated Statements of Income. | |||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Operating revenues | $ | 98 | $ | 87 | $ | 464 | $ | 401 | |||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||||
Cost of goods sold | 81 | 73 | 340 | 286 | |||||||||||||||||||||||||||||||||
Operation and maintenance | 16 | 13 | 49 | 44 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 1 | 1 | 2 | 2 | |||||||||||||||||||||||||||||||||
Taxes other than income taxes | - | - | 1 | 2 | |||||||||||||||||||||||||||||||||
Total operating expenses | 98 | 87 | 392 | 334 | |||||||||||||||||||||||||||||||||
Operating income | $ | - | $ | - | $ | 72 | $ | 67 | |||||||||||||||||||||||||||||
Equity Method Investments | |||||||||||||||||||||||||||||||||||||
Income from our equity method investments is classified as other income in our unaudited Condensed Consolidated Statements of Income. The following table provides the income from our equity method investments. For more information about our equity method investments, see Note 10 to our Consolidated Financial Statements under Item 8 included in our 2012 Form 10-K. | |||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Triton | $ | 3 | $ | 2 | $ | 7 | $ | 8 | |||||||||||||||||||||||||||||
Other | - | - | 1 | 2 | |||||||||||||||||||||||||||||||||
Note_9_Commitments_Guarantees_
Note 9 - Commitments, Guarantees and Contingencies | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] | Note 9 - Commitments, Guarantees and Contingencies | |||||||||||||||||
Other than the changes in our debt, see Note 6 herein, there were no significant changes to our contractual obligations beyond those described in Note 11 to our Consolidated Financial Statements and related notes as filed in Item 8 of our 2012 Form 10-K. | ||||||||||||||||||
We have incurred various contractual obligations and financial commitments in the normal course of our operating and financing activities that are reasonably likely to have a material effect on liquidity or the availability of capital resources. Contractual obligations include future cash payments required under existing contractual arrangements, such as debt and lease agreements. These obligations may result from both general financing activities and from commercial arrangements that are directly supported by related revenue-producing activities. | ||||||||||||||||||
Contingencies and Guarantees | ||||||||||||||||||
Contingent financial commitments, such as financial guarantees, represent obligations that become payable only if certain predefined events occur and include the nature of the guarantee and the maximum potential amount of future payments that could be required of us as the guarantor. We have certain subsidiaries that enter into various financial and performance guarantees and indemnities providing assurance to third parties. We believe the likelihood of payment under our guarantees and indemnities is remote. No liability has been recorded for such guarantees and indemnifications as the fair value is insignificant. | ||||||||||||||||||
Regulatory Matters | ||||||||||||||||||
On December 21, 2012 Atlanta Gas Light filed a petition with the Georgia Commission for approval to resolve an imbalance of approximately 4.8 Bcf of natural gas related to Atlanta Gas Light’s use of retained storage assets to operationally balance the system for the benefit of the natural gas market. We believe that any costs associated with resolving the imbalance are recoverable from Marketers. The resolution of this imbalance will be decided by the Georgia Commission and we are unable to predict the ultimate outcome. | ||||||||||||||||||
Environmental Matters | ||||||||||||||||||
We are subject to federal, state and local laws and regulations governing environmental quality and pollution control. These laws and regulations require us to remove or remedy the effect on the environment of the disposal or release of specified substances at our current and former operating sites. The following table provides more information on the costs related to remediation of our current and former operating sites as of September 30, 2013 and reflects changes in estimates since our 2012 Form 10-K. | ||||||||||||||||||
In millions | Probabilistic model cost estimates | Engineering | Amount | Expected costs over | ||||||||||||||
estimates | recorded | next twelve months | ||||||||||||||||
Illinois | $208 | - | $458 | $ | 45 | $ | 248 | $ | 34 | |||||||||
New Jersey | 146 | - | 240 | 5 | 150 | 5 | ||||||||||||
Georgia and Florida | 42 | - | 100 | 11 | 55 | 2 | ||||||||||||
North Carolina | n/a | 11 | 11 | 7 | ||||||||||||||
Total | $396 | - | $798 | $ | 72 | $ | 464 | $ | 48 | |||||||||
Our environmental remediation cost liabilities are estimates of future remediation costs for our current and former operating sites that are contaminated. Our estimates are based on conventional engineering estimates and the use of probabilistic models of potential costs when such estimates cannot be made, which is generally the case when remediation has not commenced or during the early years of a remediation effort. For those elements of the program where we cannot perform engineering estimates, there remains considerable variability in future cost estimates. Accordingly, we have established a probabilistic model to determine a range of potential expenditures to remediate and monitor our former operating sites. We cannot, at this time, identify any single number within this range as a better estimate of likely future costs, and we generally have recorded the low end of the range for our probabilistic cost estimates. | ||||||||||||||||||
As we conduct the actual remediation and enter into cleanup contracts, we are increasingly able to provide conventional engineering estimates of the likely costs of many elements of the remediation program. These estimates contain various engineering assumptions, which we refine and update on an ongoing basis. With the exception of our North Carolina site, these costs are recoverable from our customers as they are paid and, accordingly, we have recorded a regulatory asset associated with the recorded liabilities. For more information on our environmental remediation costs, see Note 11 to our Consolidated Financial Statements and related notes as filed in Item 8 of our 2012 Form 10-K. | ||||||||||||||||||
Litigation | ||||||||||||||||||
We are involved in litigation arising in the normal course of business. Although in some cases the company is unable to estimate the amount of loss reasonably possible in addition to any amounts already recognized, it is possible that the resolution of these contingencies, either individually or in aggregate, will require the company to take charges against, or will result in reductions in, future earnings. Management believes that while the resolution of these contingencies, whether individually or in aggregate, could be material to earnings in a particular period, they will not have a material adverse effect on our consolidated financial position or cash flows. For additional litigation information, see Note 11 in our Consolidated Financial Statements and related notes in Item 8 of our 2012 Form 10-K. | ||||||||||||||||||
PBR Proceeding From 2000 to 2002 Nicor Gas operated a PBR plan for natural gas costs. Under this plan, Nicor Gas’ total gas supply costs were compared to a market-sensitive benchmark. Savings and losses relative to the benchmark were determined annually and shared equally with sales customers. The PBR plan was under review by the Illinois Commission since 2002 due to allegations that Nicor Gas acted improperly in connection with the plan. On June 27, 2002, the Citizens Utility Board (CUB) filed a motion to reopen the record in the Illinois Commission’s proceedings to review the PBR plan (the “Illinois Commission Proceedings”). As a result of the motion to reopen, Nicor Gas entered into a stipulation with the staff of the Illinois Commission and CUB providing for additional discovery. The Illinois Attorney General’s Office (IAGO) has also intervened in this matter. In addition, the IAGO issued Civil Investigation Demands (CIDs) to CUB and the Illinois Commission staff. The CIDs ordered that CUB and the Illinois Commission staff produce all documents relating to any claims that Nicor Gas may have presented, or caused to be presented, regarding false information related to its PBR plan. We have committed to cooperate fully in the reviews of the PBR plan. | ||||||||||||||||||
The Nicor Board of Directors directed management to, among other things, make appropriate adjustments to account for, and fully address, the adverse consequences to ratepayers, and conduct a detailed study of the adequacy of internal accounting and regulatory controls. The adjustments were made in prior years’ financial statements resulting in a $25 million liability. Included in this $25 million liability is a $4 million loss contingency. A $2 million adjustment to the previously recorded liability, which is discussed below, was made in 2004 increasing the recorded liability to $27 million. By the end of 2003, Nicor Gas completed steps to correct the weaknesses and deficiencies identified in the detailed study of the adequacy of internal controls. | ||||||||||||||||||
On February 5, 2003 CUB filed a motion for $27 million in sanctions against Nicor Gas in the Illinois Commission Proceedings. In that motion, CUB alleged that Nicor Gas’ responses to certain CUB data requests were false. Also on February 5, 2003, CUB stated in a press release that, in addition to $27 million in sanctions, it would seek additional refunds to consumers. On March 5, 2003 the Illinois Commission staff filed a response brief in support of CUB’s motion for sanctions. On May 1, 2003 the Administrative Law Judges assigned to the proceeding issued a ruling denying CUB’s motion for sanctions. CUB has filed an appeal of the motion for sanctions with the Illinois Commission, and the Illinois Commission has indicated that it will not rule on the appeal until the final disposition of the Illinois Commission Proceedings. It is not possible to determine how the Illinois Commission will resolve the claims of CUB or other parties to the Illinois Commission Proceedings. | ||||||||||||||||||
In 2004 Nicor Gas became aware of additional information relating to the activities of individuals affecting the PBR plan for the period from 1999 through 2002, including information consisting of third party documents and recordings of telephone conversations from Entergy-Koch Trading, LP (EKT), a natural gas, storage and transportation trader and consultant with whom Nicor Gas did business under the PBR plan. Review of additional information completed in 2004 resulted in the $2 million adjustment to the previously recorded liability referenced above. | ||||||||||||||||||
The evidentiary hearings on this matter were stayed in 2004 in order to permit the parties to undertake additional third party discovery from EKT. In December 2006 the additional third party discovery from EKT was obtained and the Administrative Law Judge issued a scheduling order that provided for Nicor Gas to submit direct testimony by April 13, 2007. Nicor Gas submitted direct testimony in April 2007, rebuttal testimony in April 2011 and surrebuttal testimony in December 2011. In surrebuttal testimony, we sought $6 million, which included interest due to us of $2 million, as of December 31, 2011. The staff of the Illinois Commission, IAGO and CUB submitted direct testimony to the Illinois Commission in April 2009 and rebuttal testimony in October 2011. In rebuttal testimony, the staff of the Illinois Commission, IAGO and CUB requested refunds of $85 million, $255 million and $305 million, respectively. | ||||||||||||||||||
In February 2012 we committed to a stipulated resolution of issues, which existed prior to our acquisition of Nicor Gas, with the staff of the Illinois Commission that would include crediting Nicor Gas customers $64 million. There were no new developments between the date of acquisition and the date of the stipulated resolution. The CUB and IAGO were not parties to the stipulated resolution and continue to pursue their claims in this proceeding. Evidentiary hearings before the Administrative Law Judges were held during the first quarter of 2012 and post-trial legal briefs from the parties were submitted during the second quarter of 2012. Following the submission of legal briefs, on November 5, 2012 the Administrative Law Judges issued a proposed order for a refund of $72 million to ratepayers. During the fourth quarter of 2012, we increased our accrual by $8 million for a total of $72 million as a result of these developments and its effect on the estimated liability. | ||||||||||||||||||
On June 7, 2013 the Illinois Commission issued an order requiring us to refund $72 million to Nicor Gas’ current customers over a 12-month period. We maintain that the appropriate PBR refund is $64 million, consistent with the stipulated resolution with the staff of the Illinois Commission, and filed an appeal for the amount in excess of that specified in the stipulated resolution. The CUB has also filed an appeal. During the third quarter of 2013 the Illinois Commission denied all applications for rehearing of its June order and the Illinois appellate court denied Nicor Gas’s request for a stay on the obligation to refund the amount in excess of $64 million. On July 1, 2013 we began refunding customers the full $72 million through our purchased gas adjustment mechanism. The amount refunded is based upon actual natural gas throughput and $5 million was refunded during the third quarter of 2013. | ||||||||||||||||||
Nicor Services Warranty Product Actions Nicor Gas, Nicor Services and Nicor are defendants in a putative class action initially filed in September 2011, in state court in Cook County, Illinois. The plaintiffs purport to represent a class of customers of Nicor Gas who purchased the Gas Line Comfort Guard product from Nicor Services. The plaintiffs variously allege that the marketing, sale and billing of the Nicor Services Gas Line Comfort Guard violate the Illinois Consumer Fraud and Deceptive Business Practices Act, constitute common law fraud and result in unjust enrichment of Nicor Services and Nicor Gas. The plaintiffs seek, on behalf of the classes they purport to represent, actual and punitive damages, interest, costs, attorney fees and injunctive relief. While we are unable to predict the outcome of these matters or to reasonably estimate our potential exposure related thereto, if any, and have not recorded a liability associated with this contingency, the final disposition of this matter is not expected to have a material adverse impact on our liquidity or financial condition. | ||||||||||||||||||
Other We also are involved in an investigation by the United States Environmental Protection Agency regarding the applicable regulatory requirements for polychlorinated biphenyl in the Nicor Gas distribution system. While we are unable to predict the outcome of this matter or to reasonably estimate our potential exposure related thereto, if any, and have not recorded a liability associated with this contingency, the final disposition of this matter is not expected to have a material adverse impact on our liquidity or financial condition. | ||||||||||||||||||
For additional litigation information on these matters, see Note 11 in our Consolidated Financial Statements and related notes in Item 8 of our 2012 Form 10-K. | ||||||||||||||||||
In addition to the matters set forth above, we are involved in legal or administrative proceedings before various courts and agencies with respect to general claims, taxes, environmental, gas cost prudence reviews and other matters. Although we are unable to determine the ultimate outcomes of these other contingencies, we believe that our financial statements appropriately reflect these amounts, including the recording of liabilities when a loss is probable and reasonably estimable. |
Note_10_Segment_Information
Note 10 - Segment Information | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | Note 10 - Segment Information | ||||||||||||||||||||||||||||
Our operating segments comprise revenue-generating components of our company for which we produce separate financial information internally that we regularly use to make operating decisions and assess performance. Our determination of reportable segments considers the strategic operating units under which we manage sales of various products and services to customers in differing regulatory environments. We manage our businesses through five operating segments - distribution operations, retail operations, wholesale services, midstream operations, cargo shipping and other, a non-operating segment. | |||||||||||||||||||||||||||||
Our distribution operations segment is the largest component of our business and includes natural gas local distribution utilities in seven states - Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee and Maryland. These utilities construct, manage and maintain intrastate natural gas pipelines and distribution facilities. Although the operations of our distribution operations segment are geographically dispersed, the operating subsidiaries within the distribution operations segment are regulated utilities, with rates determined by individual state regulatory commissions. These natural gas distribution utilities have similar economic and risk characteristics. | |||||||||||||||||||||||||||||
We are also involved in several related and complementary businesses. Our retail operations segment includes retail natural gas marketing to end-use customers primarily in Georgia, as well as various businesses that market retail energy-related products and services to residential and small business customers primarily in Illinois, such as warranty protection solutions to customers and customer move connection services for other utilities. Our wholesale services segment includes natural gas asset management and related logistics activities for each of our utilities, except Nicor Gas, as well as for nonaffiliated companies, natural gas storage arbitrage and related activities. Our midstream operations segment includes our non-utility storage, fuels and pipeline operations, including the development and operation of high-deliverability natural gas storage assets. | |||||||||||||||||||||||||||||
Our cargo shipping segment transports containerized freight between Florida, the eastern coast of Canada, the Bahamas and the Caribbean region. Our cargo shipping segment also includes amounts related to cargo insurance coverage sold to our customers and other third parties. Our cargo shipping segment’s vessels are under foreign registry, and its containers are considered instruments of international trade. Although the majority of its long-lived assets are foreign owned and its revenues are derived from foreign operations, the functional currency is generally the United States dollar. Our cargo shipping segment also includes an equity investment in Triton, a cargo container leasing business. Profits and losses are generally allocated to investors’ capital accounts in proportion to their capital contributions. Our investment in Triton is accounted for under the equity method, and our share of earnings is reported within other income in our unaudited Condensed Consolidated Statements of Income. | |||||||||||||||||||||||||||||
Our other segment includes intercompany eliminations and aggregated subsidiaries that are individually not significant enough to be reportable. | |||||||||||||||||||||||||||||
We evaluate segment performance using the non-GAAP measure of EBIT that includes operating income, other income and expenses, and equity investment income. Items we do not include in EBIT are income taxes and financing costs, including interest and debt expense, each of which we evaluate on a consolidated basis. We believe EBIT is a useful measurement of our performance because it provides information that can be used to evaluate the effectiveness of our businesses from an operational perspective, exclusive of the costs to finance those activities and exclusive of income taxes, neither of which is directly relevant to the efficiency of those operations. | |||||||||||||||||||||||||||||
You should not consider EBIT an alternative to, or a more meaningful indicator of, our operating performance than operating income or net income as determined in accordance with GAAP. In addition, our EBIT may not be comparable to a similarly titled measure of another company. The reconciliations of EBIT to operating income, earnings before income taxes and net income for the periods presented are as follows: | |||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Operating income | $ | 82 | $ | 54 | $ | 503 | $ | 407 | |||||||||||||||||||||
Other income | 7 | 6 | 19 | 19 | |||||||||||||||||||||||||
EBIT | 89 | 60 | 522 | 426 | |||||||||||||||||||||||||
Interest expense | 43 | 45 | 135 | 137 | |||||||||||||||||||||||||
Earnings before income taxes | 46 | 15 | 387 | 289 | |||||||||||||||||||||||||
Income taxes | 18 | 6 | 145 | 106 | |||||||||||||||||||||||||
Net income | $ | 28 | $ | 9 | $ | 242 | $ | 183 | |||||||||||||||||||||
Information by segment on our Statements of Financial Position as of December 31, 2012 is as follows: | |||||||||||||||||||||||||||||
In millions | Identifiable and | Goodwill | |||||||||||||||||||||||||||
total assets (1) | |||||||||||||||||||||||||||||
Distribution operations | $ | 11,320 | $ | 1,640 | |||||||||||||||||||||||||
Retail operations | 511 | 122 | |||||||||||||||||||||||||||
Wholesale services | 1,218 | - | |||||||||||||||||||||||||||
Midstream operations | 720 | 14 | |||||||||||||||||||||||||||
Cargo shipping | 464 | 61 | |||||||||||||||||||||||||||
Other (2) | (92 | ) | - | ||||||||||||||||||||||||||
Consolidated | $ | 14,141 | $ | 1,837 | |||||||||||||||||||||||||
-1 | Identifiable assets are those assets used in each segment’s operations. | ||||||||||||||||||||||||||||
-2 | The assets of our other segment consist primarily of cash and cash equivalents and PP&E, and reflect the effect of intercompany eliminations. | ||||||||||||||||||||||||||||
Summarized Statements of Income, Statements of Financial Position and capital expenditure information by segment as of and for the periods presented are shown in the following tables. | |||||||||||||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||||||||||||
In millions | Distributionoperations | Retail operations | Wholesale services | Midstream operations | Cargo | Other and intercompany eliminations (4) | Consolidated | ||||||||||||||||||||||
shipping | |||||||||||||||||||||||||||||
Operating revenues from external parties | $ | 420 | $ | 138 | $ | 13 | $ | 19 | $ | 89 | $ | (4 | ) | $ | 675 | ||||||||||||||
Intercompany revenues (1) | 36 | - | - | - | - | (36 | ) | - | |||||||||||||||||||||
Total operating revenues | 456 | 138 | 13 | 19 | 89 | (40 | ) | 675 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Cost of goods sold | 111 | 92 | 1 | 9 | 55 | (39 | ) | 229 | |||||||||||||||||||||
Operation and maintenance | 150 | 31 | 13 | 5 | 29 | (2 | ) | 226 | |||||||||||||||||||||
Depreciation and amortization | 91 | 6 | - | 5 | 4 | 3 | 109 | ||||||||||||||||||||||
Taxes other than income taxes | 22 | 1 | 1 | 1 | 2 | 2 | 29 | ||||||||||||||||||||||
Total operating expenses | 374 | 130 | 15 | 20 | 90 | (36 | ) | 593 | |||||||||||||||||||||
Operating income (loss) | 82 | 8 | (2 | ) | (1 | ) | (1 | ) | (4 | ) | 82 | ||||||||||||||||||
Other income | 4 | - | - | - | 3 | - | 7 | ||||||||||||||||||||||
EBIT | $ | 86 | $ | 8 | $ | (2 | ) | $ | (1 | ) | $ | 2 | $ | (4 | ) | $ | 89 | ||||||||||||
Capital expenditures | $ | 200 | $ | 3 | $ | - | $ | 3 | $ | 6 | $ | 5 | $ | 217 | |||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||||||||||
In millions | Distribution operations | Retail operations | Wholesale services | Midstream operations | Cargo | Other and intercompany eliminations (4) | Consolidated | ||||||||||||||||||||||
shipping | |||||||||||||||||||||||||||||
Operating revenues from external parties | $ | 405 | $ | 118 | $ | (12 | ) | $ | 22 | $ | 83 | $ | (2 | ) | $ | 614 | |||||||||||||
Intercompany revenues (1) | 37 | - | - | - | - | (37 | ) | - | |||||||||||||||||||||
Total operating revenues | 442 | 118 | (12 | ) | 22 | 83 | (39 | ) | 614 | ||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Cost of goods sold | 107 | 83 | - | 12 | 51 | (38 | ) | 215 | |||||||||||||||||||||
Operation and maintenance | 148 | 26 | 11 | 4 | 29 | (6 | ) | 212 | |||||||||||||||||||||
Depreciation and amortization | 88 | 3 | - | 4 | 5 | 4 | 104 | ||||||||||||||||||||||
Taxes other than income taxes | 21 | 1 | 1 | 1 | 1 | 2 | 27 | ||||||||||||||||||||||
Nicor merger expenses (2) | - | - | - | - | - | 2 | 2 | ||||||||||||||||||||||
Total operating expenses | 364 | 113 | 12 | 21 | 86 | (36 | ) | 560 | |||||||||||||||||||||
Operating income (loss) | 78 | 5 | (24 | ) | 1 | (3 | ) | (3 | ) | 54 | |||||||||||||||||||
Other income | 2 | - | 1 | - | 2 | 1 | 6 | ||||||||||||||||||||||
EBIT | $ | 80 | $ | 5 | $ | (23 | ) | $ | 1 | $ | (1 | ) | $ | (2 | ) | $ | 60 | ||||||||||||
Capital expenditures | $ | 189 | $ | 3 | $ | 1 | $ | 18 | $ | 1 | $ | 7 | $ | 219 | |||||||||||||||
In millions | Distributionoperations | Retail operations | Wholesale services | Midstream operations | Cargo | Other and intercompany eliminations (4) | Consolidated | ||||||||||||||||||||||
shipping | |||||||||||||||||||||||||||||
Operating revenues from external parties | $ | 2,299 | $ | 605 | $ | 73 | $ | 58 | $ | 264 | $ | (11 | ) | $ | 3,288 | ||||||||||||||
Intercompany revenues (1) | 134 | - | - | - | - | (134 | ) | - | |||||||||||||||||||||
Total operating revenues | 2,433 | 605 | 73 | 58 | 264 | (145 | ) | 3,288 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Cost of goods sold | 1,142 | 402 | 21 | 25 | 162 | (143 | ) | 1,609 | |||||||||||||||||||||
Operation and maintenance | 494 | 94 | 36 | 17 | 87 | (10 | ) | 718 | |||||||||||||||||||||
Depreciation and amortization | 271 | 16 | 1 | 13 | 14 | 10 | 325 | ||||||||||||||||||||||
Taxes other than income taxes | 124 | 3 | 2 | 4 | 5 | 6 | 144 | ||||||||||||||||||||||
Total operating expenses | 2,031 | 515 | 60 | 59 | 268 | (137 | ) | 2,796 | |||||||||||||||||||||
Gain on sale of Compass Energy | - | - | 11 | - | - | - | 11 | ||||||||||||||||||||||
Operating income (loss) | 402 | 90 | 24 | (1 | ) | (4 | ) | (8 | ) | 503 | |||||||||||||||||||
Other income (loss) | 11 | - | - | 2 | 7 | (1 | ) | 19 | |||||||||||||||||||||
EBIT | $ | 413 | $ | 90 | $ | 24 | $ | 1 | $ | 3 | $ | (9 | ) | $ | 522 | ||||||||||||||
Identifiable and total assets (3) | $ | 11,300 | $ | 652 | $ | 930 | $ | 726 | $ | 464 | $ | (168 | ) | $ | 13,904 | ||||||||||||||
Goodwill | $ | 1,640 | $ | 168 | $ | - | $ | 14 | $ | 61 | $ | - | $ | 1,883 | |||||||||||||||
Capital expenditures | $ | 495 | $ | 7 | $ | - | $ | 11 | $ | 9 | $ | 13 | $ | 535 | |||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||||||||||
In millions | Distribution operations | Retail operations | Wholesale services | Midstream operations | Cargo | Other and intercompany eliminations (4) | Consolidated | ||||||||||||||||||||||
shipping | |||||||||||||||||||||||||||||
Operating revenues from external parties | $ | 1,848 | $ | 517 | $ | 59 | $ | 56 | $ | 247 | $ | (23 | ) | $ | 2,704 | ||||||||||||||
Intercompany revenues (1) | 124 | - | - | - | - | (124 | ) | - | |||||||||||||||||||||
Total operating revenues | 1,972 | 517 | 59 | 56 | 247 | (147 | ) | 2,704 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Cost of goods sold | 767 | 342 | 34 | 24 | 152 | (145 | ) | 1,174 | |||||||||||||||||||||
Operation and maintenance | 473 | 83 | 35 | 13 | 83 | (12 | ) | 675 | |||||||||||||||||||||
Depreciation and amortization | 262 | 10 | 1 | 10 | 17 | 10 | 310 | ||||||||||||||||||||||
Taxes other than income taxes | 103 | 3 | 3 | 4 | 4 | 6 | 123 | ||||||||||||||||||||||
Nicor merger expenses (2) | - | - | - | - | - | 15 | 15 | ||||||||||||||||||||||
Total operating expenses | 1,605 | 438 | 73 | 51 | 256 | (126 | ) | 2,297 | |||||||||||||||||||||
Operating income (loss) | 367 | 79 | (14 | ) | 5 | (9 | ) | (21 | ) | 407 | |||||||||||||||||||
Other income | 7 | - | 1 | 1 | 8 | 2 | 19 | ||||||||||||||||||||||
EBIT | $ | 374 | $ | 79 | $ | (13 | ) | $ | 6 | $ | (1 | ) | $ | (19 | ) | $ | 426 | ||||||||||||
Identifiable and total assets (3) | $ | 10,970 | $ | 472 | $ | 970 | $ | 712 | $ | 482 | $ | (103 | ) | $ | 13,503 | ||||||||||||||
Goodwill | $ | 1,591 | $ | 122 | $ | - | $ | 14 | $ | 90 | $ | - | $ | 1,817 | |||||||||||||||
Capital expenditures | $ | 457 | $ | 7 | $ | 1 | $ | 77 | $ | 2 | $ | 25 | $ | 569 | |||||||||||||||
-1 | Intercompany revenues - wholesale services records its energy marketing and risk management revenues on a net basis and its total operating revenues include intercompany revenues of $69 million and $312 million for the three and nine months ended September 30, 2013, respectively, and $93 million and $230 million for the three and nine months ended September 30, 2012, respectively. | ||||||||||||||||||||||||||||
-2 | Transaction expenses associated with the Nicor merger are shown separately to better compare year-over-year results. | ||||||||||||||||||||||||||||
-3 | Identifiable assets are those used in each segment’s operations. | ||||||||||||||||||||||||||||
-4 | The assets of our other segment consist primarily of cash and cash equivalents and PP&E, and reflect the effect of intercompany eliminations. | ||||||||||||||||||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Accounting Estimates | ||||||||||||||||
The preparation of our financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosures. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our estimates may involve complex situations requiring a high degree of judgment either in the application and interpretation of existing literature or in the development of estimates that impact our financial statements. The most significant estimates relate to our regulatory infrastructure program accruals, environmental remediation accruals, uncollectible accounts and other allowances for contingent losses, goodwill and other intangible assets, retirement plan benefit obligations, derivative and hedging activities and provisions for income taxes. We evaluate our estimates on an ongoing basis and our actual results could differ from our estimates. | |||||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Cash Investments | ||||||||||||||||
Our cash and cash equivalents consist primarily of cash on deposit, money market accounts and certificates of deposit held by domestic subsidiaries with original maturities of three months or less. As of September 30, 2013 and 2012, and December 31, 2012, we had $74 million, $76 million and $80 million, respectively, of cash and short-term investments held by Tropical Shipping. This cash and investments are available for use by our other operations only if we repatriate a portion of Tropical Shipping’s earnings in the form of a dividend, and pay a significant amount of United States income tax. See Note 12 to our Consolidated Financial Statements included in Item 8 of our 2012 Form 10-K for additional information on our income taxes. | |||||||||||||||||
Inventory, Policy [Policy Text Block] | Inventories | ||||||||||||||||
For our regulated utilities, except Nicor Gas, our gas inventories and the inventories we hold for Marketers in Georgia are carried at cost on a WACOG basis. In Georgia’s competitive environment, Marketers sell natural gas to firm end-use customers at market-based prices. Part of the unbundling process, which resulted from deregulation and provides this competitive environment, is the assignment to Marketers of certain pipeline services that Atlanta Gas Light has under contract. On a monthly basis, Atlanta Gas Light assigns the majority of the pipeline storage services that it has under contract to Marketers, along with a corresponding amount of inventory. Atlanta Gas Light also retains and manages a portion of its pipeline storage assets and related natural gas inventories for system balancing and to serve system demand. See Note 9 for information regarding a regulatory filing by Atlanta Gas Light related to gas inventory. | |||||||||||||||||
Nicor Gas’ inventory is carried at cost on a LIFO basis. Inventory decrements occurring during interim periods that are expected to be restored prior to year-end are charged to cost of goods sold at the estimated annual replacement cost, and the difference between this cost and the actual liquidated LIFO layer cost is recorded as a temporary LIFO inventory liquidation. Any temporary LIFO liquidation is included as a current liability in our unaudited Condensed Consolidated Statements of Financial Position. Interim inventory decrements that are not expected to be restored prior to year-end are charged to cost of goods sold at the actual LIFO cost of the layers liquidated. As of September 30, 2013 and 2012, there was no inventory decrement. | |||||||||||||||||
Our retail operations, wholesale services and midstream operations segments are carried at the lower of cost on a WACOG basis or market value. For these segments, we evaluate the weighted average cost of their natural gas inventories against market prices to determine whether any declines in market prices below the WACOG are other than temporary. For any declines considered to be other than temporary, we record adjustments to reduce the weighted average cost of the natural gas inventory to market value. For the periods presented, we recorded LOCOM adjustments to cost of goods sold in the following amounts to reduce the value of our inventories to market value. | |||||||||||||||||
Energy Marketing Receivables And Payables [Policy Text Block] | Energy Marketing Receivables and Payables | ||||||||||||||||
Our wholesale services segment provides services to retail and wholesale marketers and utility and industrial customers. These customers, also known as counterparties, utilize netting agreements, which enable our wholesale services segment to net receivables and payables by counterparty. Wholesale services also nets across product lines and against cash collateral, provided the master netting and cash collateral agreements include such provisions. While the amounts due from, or owed to, wholesale services' counterparties are settled net, they are recorded on a gross basis in our unaudited Condensed Consolidated Statements of Financial Position as energy marketing receivables and energy marketing payables. | |||||||||||||||||
Our wholesale services segment has trade and credit contracts that contain minimum credit rating requirements. These credit rating requirements typically give counterparties the right to suspend or terminate credit if our credit ratings are downgraded to non-investment grade status. Under such circumstances, wholesale services would need to post collateral to continue transacting business with some of its counterparties. To date, our credit ratings have exceeded the minimum requirements. As of September 30, 2013, December 31, 2012 and September 30, 2012, the collateral that wholesale services would have been required to post if our credit ratings had been downgraded to non-investment grade status would not have had a material impact to our consolidated results of operations, cash flows or financial position. If such collateral were not posted, wholesale services' ability to continue transacting business with these counterparties would be negatively impacted. | |||||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurements | ||||||||||||||||
We have financial and nonfinancial assets and liabilities subject to fair value measurement. The financial assets and liabilities measured and carried at fair value include cash and cash equivalents, and derivative assets and liabilities. The carrying values of receivables, short and long-term investments, accounts payable, short-term debt, other current assets and liabilities, and accrued interest approximate fair value. Our nonfinancial assets and liabilities include pension and other retirement benefits, which are presented in Note 4 to our Consolidated Financial Statements and in related notes included in Item 8 of our 2012 Form 10-K. | |||||||||||||||||
As defined in the authoritative guidance related to fair value measurements and disclosures, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). We utilize market data or assumptions that market participants would use in valuing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. We primarily apply the market approach for recurring fair value measurements to utilize the best available information. Accordingly, we use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. We classify fair value balances based on the observance of those inputs in accordance with the fair value hierarchy. | |||||||||||||||||
Derivatives, Policy [Policy Text Block] | Derivative Instruments | ||||||||||||||||
The fair value of the natural gas derivative instruments that we use to manage exposures arising from changing natural gas prices reflects the estimated amounts that we would receive or pay to terminate or close the contracts at the reporting date, taking into account the current unrealized gains or losses on open contracts. We use external market quotes and indices to value substantially all of our derivative instruments. See Note 3 and Note 4 for additional derivative disclosures. | |||||||||||||||||
Distribution Operations Nicor Gas, subject to review by the Illinois Commission, and Elizabethtown Gas, in accordance with a directive from the New Jersey BPU, enter into derivative instruments to hedge the impact of market fluctuations in natural gas prices. In accordance with regulatory requirements, any realized gains and losses related to these derivatives are reflected in natural gas costs and ultimately included in billings to customers. Such derivative instruments are reported at fair value at the end of each reporting period. Hedge accounting is not elected and, in accordance with accounting guidance pertaining to rate-regulated entities, unrealized changes in the fair value of these derivative instruments are deferred or accrued as regulatory assets or liabilities until the related revenue is recognized. | |||||||||||||||||
On June 28, 2013 we entered into an OTC weather derivative to reduce the risk of lower operating margins related to the risk of significantly warmer-than-normal weather in Illinois during the fourth quarter of 2013. The weather derivative is based on fourth quarter 2013 Heating Degree Days at Chicago Midway International Airport and is a cash-settled option. If weather is warmer than normal during the fourth quarter of 2013 the option would partially offset lower operating margin that would result from lower customer usage. Since the option would not be exercised if heating degree days are equal to or higher than normal, the option would not offset margins that are higher because of colder than normal weather. | |||||||||||||||||
Nicor Gas also enters into derivative instruments to reduce the earnings volatility of certain forecasted operating costs arising from fluctuations in natural gas prices, such as the purchase of natural gas for company use. These derivative instruments are carried at fair value. To the extent hedge accounting is not elected, changes in such fair values are recorded in the current period as operation and maintenance expenses. | |||||||||||||||||
Retail Operations We have designated a portion of our derivative instruments, consisting of financial swaps to manage the risk associated with forecasted natural gas purchases and sales, as cash flow hedges. We record derivative gains or losses arising from cash flow hedges in OCI and reclassify them into earnings in the same period that the underlying hedged item is recognized in earnings. | |||||||||||||||||
We currently have minimal hedge ineffectiveness, defined as when the gains or losses on the hedging instrument more than offset the losses or gains on the hedged item. Any cash flow hedge ineffectiveness is recorded in cost of goods sold in the period in which it occurs. We have not designated the remainder of our derivative instruments as hedges for accounting purposes, and we record changes in the fair value of such instruments within cost of goods sold in the period of change. | |||||||||||||||||
We also enter into weather derivative contracts as economic hedges of operating margins in the event of warmer-than-normal weather in the Heating Season. Exchange-traded options are carried at fair value, with changes reflected in operating revenues. Non exchange-traded options are accounted for using the intrinsic value method and do not qualify for hedge accounting designation. Changes in the intrinsic value for non exchange-traded contracts are also reflected in operating revenues in our unaudited Condensed Consolidated Statements of Income. | |||||||||||||||||
Wholesale Services We purchase natural gas for storage when the current market price we pay to buy and transport natural gas plus the cost to store and finance the natural gas is less than the market price we can receive in the future, resulting in a positive net operating margin. We use NYMEX futures and OTC contracts to sell natural gas at that future price to substantially lock in the operating margin we ultimately will realize when the stored natural gas is sold. We also enter into transactions to secure transportation capacity between delivery points in order to serve our customers and various markets. We use NYMEX futures and OTC contracts to capture the price differential or spread between the locations served by the capacity in order to substantially lock in the operating margin we will ultimately realize when we physically flow natural gas between delivery points. These contracts generally meet the definition of derivatives and are carried at fair value, with changes in fair value recorded in operating revenues in the period of change. These contracts are not designated as hedges for accounting purposes. | |||||||||||||||||
The purchase, transportation, storage and sale of natural gas are accounted for on a weighted average cost or accrual basis, as appropriate, rather than on the fair value basis we utilize for the derivatives used to mitigate the natural gas price risk associated with our storage and transportation portfolio. We incur monthly demand charges for the contracted storage and transportation capacity, and payments associated with asset management agreements, and recognize these demand charges and payments in the period they are incurred. This difference in accounting can result in volatility in our reported earnings, even though the economic margin is essentially unchanged from the dates the transactions were consummated. | |||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Depreciation Expense | ||||||||||||||||
We compute depreciation expense for distribution operations by applying composite, straight-line rates (approved by the state regulatory agencies) to the investment in depreciable property. | |||||||||||||||||
On August 30, 2013 Nicor Gas filed a depreciation study with the Illinois Commission that proposed a composite depreciation rate of 3.07% compared to the current composite rate of 4.10%. On October 23, 2013 the Illinois Commission approved our proposed composite depreciation rate for Nicor Gas. The depreciation rate is effective as of the date the depreciation study was filed and a $4 million reduction to our depreciation expense will be recognized in the fourth quarter of 2013 for the period from August 30, 2013 through September 30, 2013. | |||||||||||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill | ||||||||||||||||
Our annual goodwill impairment analysis that was performed during the fourth quarter of 2012 indicated that the estimated fair value of a reporting unit within our midstream operations segment, with $14 million of goodwill, exceeded its carrying value by less than 10% as of our testing date. During the third quarter of 2013 we identified a reduction in the near-term market rates at which we are able to re-contract capacity at our storage facilities. We considered a decline in near-term rates an indicator of potential impairment and, accordingly, conducted an interim goodwill impairment analysis during the third quarter of 2013. | |||||||||||||||||
The fair value of this reporting unit was determined utilizing the income and market approaches. The market approach is based on observable transactions of comparable companies and assets. The income approach estimates fair value based upon the present value of estimated future cash flows discounted at an appropriate risk-free rate. These forecasts contain a degree of uncertainty, and changes in the projected cash flows could significantly increase or decrease the estimated fair value of the reporting unit. Key assumptions used in the income approach included long-term growth rates used to determine the terminal value at the end of the discrete forecast period, current and future rates charged for contracted capacity and a discount rate. The discount rate is applied to estimated future cash flows and is one of the most significant assumptions used to determine fair value under the income approach. As interest rates rise, the calculated fair values will decrease. The terminal growth rate was based on a combination of historical and forecasted statistics for real gross domestic product and personal income. The rates we charge to customers for capacity in the storage caverns are based on internal and external rates forecasts. | |||||||||||||||||
While near-term rates have declined, management’s forecast for long-term rates have not significantly changed since our 2012 annual impairment analysis was completed. Our interim goodwill impairment test indicated that the estimated fair value of this reporting unit continues to exceed its carrying value. We continue to monitor this reporting unit for impairment and note that continued declines in capacity or subscription rates or for a sustained period at the current market rates may result in an impairment of goodwill. The risk of impairment of the underlying long-lived assets is not estimated to be significant because the assets have long remaining useful lives and authoritative accounting guidance requires such assets to be tested for impairment based on the basis of undiscounted cash flows over their remaining useful lives. | |||||||||||||||||
Public Utilities, Policy [Policy Text Block] | Regulatory Assets and Liabilities | ||||||||||||||||
We account for the financial effects of regulation in accordance with authoritative guidance related to regulated entities whose rates are designed to recover the costs of providing service. In accordance with this guidance, incurred costs and estimated future expenditures that otherwise would be charged to expense in the current period are capitalized as regulatory assets when it is probable that such costs or expenditures will be recovered in rates in the future. Similarly, we recognize regulatory liabilities when it is probable that regulators will require customer refunds through future rates or when revenue is collected from customers for estimated expenditures that have not yet been incurred. Generally, regulatory assets are amortized into expense and regulatory liabilities are amortized into income over the period authorized by the regulatory commissions. We are not aware of any evidence that these costs will not be recoverable through either rate riders or base rates, and we believe that we will be able to recover such costs consistent with our historical recoveries. In the event that the provisions of authoritative guidance related to regulated operations were no longer applicable, we would recognize a write-off of regulatory assets that would result in a charge to net income and be classified as an extraordinary item. | |||||||||||||||||
Our regulatory assets and liabilities are summarized in the following table. | |||||||||||||||||
In millions | September 30, | December 31, | September 30, | ||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||
Regulatory assets | |||||||||||||||||
Recoverable regulatory infrastructure program costs | $ | 46 | $ | 47 | $ | 46 | |||||||||||
Recoverable environmental remediation costs | 30 | 38 | 33 | ||||||||||||||
Recoverable pension and retiree welfare benefit costs | 19 | 19 | 27 | ||||||||||||||
Other regulatory assets | 38 | 41 | 52 | ||||||||||||||
Total regulatory assets - current | 133 | 145 | 158 | ||||||||||||||
Recoverable environmental remediation costs | 456 | 438 | 421 | ||||||||||||||
Recoverable pension and retiree welfare benefit costs | 183 | 196 | 228 | ||||||||||||||
Recoverable regulatory infrastructure program costs | 104 | 167 | 194 | ||||||||||||||
Long-term debt fair value adjustment | 84 | 90 | 92 | ||||||||||||||
Other regulatory assets | 44 | 53 | 59 | ||||||||||||||
Total regulatory assets - long-term | 871 | 944 | 994 | ||||||||||||||
Total regulatory assets | $ | 1,004 | $ | 1,089 | $ | 1,152 | |||||||||||
Regulatory liabilities | |||||||||||||||||
Accrued natural gas costs | $ | 104 | $ | 93 | $ | 62 | |||||||||||
Bad debt rider | 37 | 37 | 30 | ||||||||||||||
Accumulated removal costs | 17 | 16 | 14 | ||||||||||||||
Other regulatory liabilities | 16 | 15 | 11 | ||||||||||||||
Total regulatory liabilities - current | 174 | 161 | 117 | ||||||||||||||
Accumulated removal costs | 1,448 | 1,393 | 1,381 | ||||||||||||||
Unamortized investment tax credit | 26 | 29 | 30 | ||||||||||||||
Regulatory income tax liability | 26 | 27 | 23 | ||||||||||||||
Bad debt rider | 20 | 17 | 16 | ||||||||||||||
Other regulatory liabilities | 4 | 11 | 15 | ||||||||||||||
Total regulatory liabilities - long-term | 1,524 | 1,477 | 1,465 | ||||||||||||||
Total regulatory liabilities | $ | 1,698 | $ | 1,638 | $ | 1,582 | |||||||||||
There have been no significant new types of regulatory assets or liabilities beyond those discussed in Note 2 to our Consolidated Financial Statements and related notes in Item 8 of our 2012 Form 10-K. | |||||||||||||||||
Other Income and Other Expense Disclosure [Text Block] | Other Income | ||||||||||||||||
Our other income is detailed in the following table for the periods presented. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Allowance for funds used during construction (AFUDC) - equity | $ | 3 | $ | 2 | $ | 9 | $ | 4 | |||||||||
Equity investment income (1) | 3 | 2 | 8 | 10 | |||||||||||||
Other, net | 1 | 2 | 2 | 5 | |||||||||||||
Total other income | $ | 7 | $ | 6 | $ | 19 | $ | 19 | |||||||||
-1 | Primarily relates to our investment in Triton. See Note 8 for additional information. | ||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Common Share | ||||||||||||||||
We compute basic earnings per common share attributable to AGL Resources Inc. common shareholders by dividing our net income attributable to AGL Resources Inc. by the daily weighted average number of common shares outstanding. Diluted earnings per common share attributable to AGL Resources Inc. common shareholders reflect the potential reduction in earnings per common share attributable to AGL Resources Inc. common shareholders that could occur when potentially dilutive common shares are added to common shares outstanding. | |||||||||||||||||
We derive our potentially dilutive common shares by calculating the number of shares issuable under restricted stock, restricted stock units and stock options. The vesting of certain shares of the restricted stock and restricted stock units depends on the satisfaction of defined performance criteria. The future issuance of shares underlying the outstanding stock options depends on whether the market price of the common shares underlying the options exceeds the respective exercise prices of the stock options. | |||||||||||||||||
The following table shows the calculation of our diluted shares attributable to AGL Resources Inc. common shareholders for the periods presented, if performance units currently earned under the plan ultimately vest and if stock options currently exercisable at prices below the average market prices are exercised. | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions (except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income attributable to AGL Resources Inc. | $ | 28 | $ | 9 | $ | 231 | $ | 173 | |||||||||
Denominator: | |||||||||||||||||
Basic weighted average number of shares outstanding (1) | 118.2 | 117.1 | 117.8 | 116.9 | |||||||||||||
Effect of dilutive securities | 0.3 | 0.4 | 0.3 | 0.4 | |||||||||||||
Diluted weighted average number of shares outstanding | 118.5 | 117.5 | 118.1 | 117.3 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.24 | $ | 0.08 | $ | 1.96 | $ | 1.48 | |||||||||
Diluted | $ | 0.24 | $ | 0.08 | $ | 1.96 | $ | 1.48 | |||||||||
-1 | Daily weighted average shares outstanding. | ||||||||||||||||
Business Combinations Policy [Policy Text Block] | Acquisitions | ||||||||||||||||
On January 31, 2013 our retail operations segment acquired approximately 500,000 service plans and certain other assets from NiSource Inc. for $120 million, plus $2 million of working capital. These service plans provide home warranty protection solutions and energy efficiency leasing solutions for residential and small business utility customers and complement the retail services business acquired in the Nicor merger. The preliminary allocation of the purchase price is as follows: | |||||||||||||||||
In millions | |||||||||||||||||
Current assets | $ | 5 | |||||||||||||||
PP&E | 11 | ||||||||||||||||
Goodwill | 46 | ||||||||||||||||
Intangible assets | 64 | ||||||||||||||||
Current liabilities | (4 | ) | |||||||||||||||
Total purchase price | $ | 122 | |||||||||||||||
Intangible assets related to this acquisition are primarily customer relationships of $47 million and trade names of $17 million. The amortization periods are estimated to be 14 years for customer relationships and 10 years for trade names. | |||||||||||||||||
On June 30, 2013 our retail operations segment acquired approximately 33,000 residential and commercial energy customer relationships in Illinois for $32 million. These customer relationships have been recorded as an intangible asset and are expected to be amortized on a straight-line basis over an estimated period of 14 to 16 years. | |||||||||||||||||
Sale of Business [Policy Text Block] | Sale of Compass Energy | ||||||||||||||||
On May 1, 2013 we sold Compass Energy, a non-regulated retail natural gas business supplying commercial and industrial customers, which was part of our wholesale services segment. We received an initial cash payment of $12 million, which resulted in an $11 million pre-tax gain ($5 million net of tax). Under the terms of the purchase and sale agreement, we are eligible to receive contingent cash consideration up to $8 million with a guaranteed minimum receipt of $3 million. The contingent cash consideration will be received from the buyer over a five-year earn out period based upon the financial performance of Compass Energy. | |||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Developments | ||||||||||||||||
On January 1, 2013 we adopted ASU 2011-11, Disclosures about Offsetting Assets and Liabilities and ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which require disclosures about offsetting and related arrangements in order to help financial statement users better understand the effect of those arrangements on our financial position. This guidance had no impact on our unaudited Condensed Consolidated Financial Statements. See Note 4 for additional disclosures about our offsetting of derivative assets and liabilities. | |||||||||||||||||
On January 1, 2013 we adopted ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires enhanced disclosures of amounts reclassified out of accumulated other comprehensive income by component. This guidance had no impact on our unaudited Condensed Consolidated Financial Statements. See Note 7 for additional disclosures relating to accumulated other comprehensive income. |
Note_2_Significant_Accounting_1
Note 2 - Significant Accounting Policies and Methods of Application (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Schedule of Inventory Lower of Cost or Market Adjustment [Table Text Block] | Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Retail operations | $ | 1 | $ | - | $ | 1 | $ | 3 | |||||||||
Wholesale services | - | - | 8 | 18 | |||||||||||||
Midstream operations | - | - | - | 1 | |||||||||||||
Schedule of Regulatory Assets [Table Text Block] | In millions | September 30, | December 31, | September 30, | |||||||||||||
2013 | 2012 | 2012 | |||||||||||||||
Regulatory assets | |||||||||||||||||
Recoverable regulatory infrastructure program costs | $ | 46 | $ | 47 | $ | 46 | |||||||||||
Recoverable environmental remediation costs | 30 | 38 | 33 | ||||||||||||||
Recoverable pension and retiree welfare benefit costs | 19 | 19 | 27 | ||||||||||||||
Other regulatory assets | 38 | 41 | 52 | ||||||||||||||
Total regulatory assets - current | 133 | 145 | 158 | ||||||||||||||
Recoverable environmental remediation costs | 456 | 438 | 421 | ||||||||||||||
Recoverable pension and retiree welfare benefit costs | 183 | 196 | 228 | ||||||||||||||
Recoverable regulatory infrastructure program costs | 104 | 167 | 194 | ||||||||||||||
Long-term debt fair value adjustment | 84 | 90 | 92 | ||||||||||||||
Other regulatory assets | 44 | 53 | 59 | ||||||||||||||
Total regulatory assets - long-term | 871 | 944 | 994 | ||||||||||||||
Total regulatory assets | $ | 1,004 | $ | 1,089 | $ | 1,152 | |||||||||||
Regulatory liabilities | |||||||||||||||||
Accrued natural gas costs | $ | 104 | $ | 93 | $ | 62 | |||||||||||
Bad debt rider | 37 | 37 | 30 | ||||||||||||||
Accumulated removal costs | 17 | 16 | 14 | ||||||||||||||
Other regulatory liabilities | 16 | 15 | 11 | ||||||||||||||
Total regulatory liabilities - current | 174 | 161 | 117 | ||||||||||||||
Accumulated removal costs | 1,448 | 1,393 | 1,381 | ||||||||||||||
Unamortized investment tax credit | 26 | 29 | 30 | ||||||||||||||
Regulatory income tax liability | 26 | 27 | 23 | ||||||||||||||
Bad debt rider | 20 | 17 | 16 | ||||||||||||||
Other regulatory liabilities | 4 | 11 | 15 | ||||||||||||||
Total regulatory liabilities - long-term | 1,524 | 1,477 | 1,465 | ||||||||||||||
Total regulatory liabilities | $ | 1,698 | $ | 1,638 | $ | 1,582 | |||||||||||
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Allowance for funds used during construction (AFUDC) - equity | $ | 3 | $ | 2 | $ | 9 | $ | 4 | |||||||||
Equity investment income (1) | 3 | 2 | 8 | 10 | |||||||||||||
Other, net | 1 | 2 | 2 | 5 | |||||||||||||
Total other income | $ | 7 | $ | 6 | $ | 19 | $ | 19 | |||||||||
Schedule of Weighted Average Number of Shares [Table Text Block] | Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | ||||||||||||||||
In millions (except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income attributable to AGL Resources Inc. | $ | 28 | $ | 9 | $ | 231 | $ | 173 | |||||||||
Denominator: | |||||||||||||||||
Basic weighted average number of shares outstanding (1) | 118.2 | 117.1 | 117.8 | 116.9 | |||||||||||||
Effect of dilutive securities | 0.3 | 0.4 | 0.3 | 0.4 | |||||||||||||
Diluted weighted average number of shares outstanding | 118.5 | 117.5 | 118.1 | 117.3 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.24 | $ | 0.08 | $ | 1.96 | $ | 1.48 | |||||||||
Diluted | $ | 0.24 | $ | 0.08 | $ | 1.96 | $ | 1.48 | |||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | In millions | ||||||||||||||||
Current assets | $ | 5 | |||||||||||||||
PP&E | 11 | ||||||||||||||||
Goodwill | 46 | ||||||||||||||||
Intangible assets | 64 | ||||||||||||||||
Current liabilities | (4 | ) | |||||||||||||||
Total purchase price | $ | 122 |
Note_3_Fair_Value_Measurements1
Note 3 - Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Note 3 - Fair Value Measurements (Tables) [Line Items] | |||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | In millions | 30-Sep-13 | 31-Dec-12 | 30-Sep-12 | |||||||||||||||||||||
Long-term debt amortized cost | $ | 3,816 | $ | 3,553 | $ | 3,556 | |||||||||||||||||||
Long-term debt fair value (1) | 4,024 | 4,057 | 4,100 | ||||||||||||||||||||||
Natural Gas Derivatives [Member] | |||||||||||||||||||||||||
Note 3 - Fair Value Measurements (Tables) [Line Items] | |||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Recurring fair values - Derivative instruments | ||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | 30-Sep-12 | |||||||||||||||||||||||
In millions | Assets (1) | Liabilities | Assets (1) | Liabilities | Assets (1) | Liabilities | |||||||||||||||||||
Natural gas derivatives | |||||||||||||||||||||||||
Quoted prices in active markets (Level 1) | $ | 4 | $ | (52 | ) | $ | 8 | $ | (45 | ) | $ | 11 | $ | (55 | ) | ||||||||||
Significant other observable inputs (Level 2) | 60 | (41 | ) | 96 | (30 | ) | 100 | (33 | ) | ||||||||||||||||
Netting of cash collateral | 45 | 49 | 33 | 36 | 47 | 46 | |||||||||||||||||||
Total carrying value (2) (3) | $ | 109 | $ | (44 | ) | $ | 137 | $ | (39 | ) | $ | 158 | $ | (42 | ) | ||||||||||
Interest rate derivatives | |||||||||||||||||||||||||
Significant other observable inputs (Level 2) | $ | - | $ | - | $ | 3 | $ | - | $ | - | $ | - | |||||||||||||
Money Market Funds [Member] | |||||||||||||||||||||||||
Note 3 - Fair Value Measurements (Tables) [Line Items] | |||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | In millions | At September 30, | At December 31, | At September 30, | |||||||||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||||||||||
Money market funds (1) | $ | 48 | $ | 66 | $ | 69 |
Note_4_Derivative_Instruments_
Note 4 - Derivative Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Nicor Gas | $ | (6 | ) | $ | (12 | ) | $ | 2 | $ | (60 | ) | |||||||||||||||||||||||
Elizabethtown Gas | (1 | ) | (6 | ) | (5 | ) | (23 | ) | ||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | In Bcf (1) | September 30, | December 31, | September 30, | ||||||||||||||||||||||||||||||
2013 (2) | 2012 | 2012 | ||||||||||||||||||||||||||||||||
Hedge designation | ||||||||||||||||||||||||||||||||||
Cash flow hedges | 3 | 6 | 7 | |||||||||||||||||||||||||||||||
Not designated as hedges | 40 | 96 | 35 | |||||||||||||||||||||||||||||||
Total hedges | 43 | 102 | 42 | |||||||||||||||||||||||||||||||
Hedge position | ||||||||||||||||||||||||||||||||||
Short position | (2,788 | ) | (1,955 | ) | (1,994 | ) | ||||||||||||||||||||||||||||
Long position | 2,831 | 2,057 | 2,036 | |||||||||||||||||||||||||||||||
Net long position | 43 | 102 | 42 | |||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | Classification | September 30, | December 31, | September 30, | December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2012 | 2011 | |||||||||||||||||||||||||||||||
In millions | (1) (2) | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||
Designated as cash flow hedges and fair value hedges | ||||||||||||||||||||||||||||||||||
Natural gas contracts | Current | $ | 6 | $ | (5 | ) | $ | 1 | $ | (2 | ) | $ | 4 | $ | (3 | ) | $ | 9 | $ | (12 | ) | |||||||||||||
Natural gas contracts | Long-term | - | - | 3 | - | - | - | - | - | |||||||||||||||||||||||||
Interest rate swap agreements | Long-term | - | - | - | - | - | - | 13 | (13 | ) | ||||||||||||||||||||||||
Total | 6 | (5 | ) | 4 | (2 | ) | 4 | (3 | ) | 22 | (25 | ) | ||||||||||||||||||||||
Not designated as cash flow hedges | ||||||||||||||||||||||||||||||||||
Natural gas contracts | Current | 445 | (462 | ) | 394 | (355 | ) | 427 | (408 | ) | 706 | (689 | ) | |||||||||||||||||||||
Natural gas contracts | Long-term | 143 | (153 | ) | 45 | (50 | ) | 54 | (50 | ) | 133 | (116 | ) | |||||||||||||||||||||
Total | 588 | (615 | ) | 439 | (405 | ) | 481 | (458 | ) | 839 | (805 | ) | ||||||||||||||||||||||
Gross amount of recognized assets and liabilities | 594 | (620 | ) | 443 | (407 | ) | 485 | (461 | ) | 861 | (830 | ) | ||||||||||||||||||||||
Gross amounts offset in our unaudited Condensed Consolidated Statements of Financial Position | (482 | ) | 576 | (299 | ) | 368 | (326 | ) | 419 | (573 | ) | 720 | ||||||||||||||||||||||
Net amounts of assets and liabilities presented in our unaudited Condensed Consolidated Statements of Financial Position | $ | 112 | $ | (44 | ) | $ | 144 | $ | (39 | ) | $ | 159 | $ | (42 | ) | $ | 288 | $ | (110 | ) | ||||||||||||||
Schedule of Derivative Instruments [Table Text Block] | Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Designated as cash flow hedges | ||||||||||||||||||||||||||||||||||
Natural gas contracts reclassified from OCI to cost of goods sold | $ | (1 | ) | $ | (2 | ) | $ | - | $ | (2 | ) | |||||||||||||||||||||||
Natural gas contracts reclassified from OCI to operation and maintenance expense | - | (2 | ) | - | (1 | ) | ||||||||||||||||||||||||||||
Interest rate swaps reclassified from OCI to interest expense | 1 | 2 | (2 | ) | (1 | ) | ||||||||||||||||||||||||||||
Not designated as hedges | ||||||||||||||||||||||||||||||||||
Natural gas contracts - net fair value adjustments recorded in operating revenues (1) | (14 | ) | (17 | ) | (16 | ) | (40 | ) | ||||||||||||||||||||||||||
Natural gas contracts - net fair value adjustments recorded in cost of goods sold (2) | - | 1 | (1 | ) | (2 | ) | ||||||||||||||||||||||||||||
Total (losses) on derivative instruments | $ | (14 | ) | $ | (18 | ) | $ | (19 | ) | $ | (46 | ) |
Note_5_Employee_Benefit_Plans_
Note 5 - Employee Benefit Plans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 7 | $ | 7 | $ | 22 | $ | 21 | |||||||||
Interest cost | 11 | 10 | 32 | 32 | |||||||||||||
Expected return on plan assets | (16 | ) | (16 | ) | (47 | ) | (48 | ) | |||||||||
Net amortization of prior service cost | - | - | (1 | ) | (1 | ) | |||||||||||
Recognized actuarial loss | 9 | 9 | 26 | 26 | |||||||||||||
Net periodic pension benefit cost | $ | 11 | $ | 10 | $ | 32 | $ | 30 | |||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 2 | $ | 3 | |||||||||
Interest cost | 3 | 4 | 10 | 12 | |||||||||||||
Expected return on plan assets | (1 | ) | (1 | ) | (4 | ) | (4 | ) | |||||||||
Net amortization of prior service cost | (1 | ) | (1 | ) | (3 | ) | (2 | ) | |||||||||
Recognized actuarial loss | 2 | 2 | 6 | 7 | |||||||||||||
Net periodic welfare benefit cost | $ | 4 | $ | 5 | $ | 11 | $ | 16 |
Note_6_Debt_and_Credit_Facilit1
Note 6 - Debt and Credit Facilities (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||
Schedule of Debt [Table Text Block] | 30-Sep-13 | 30-Sep-12 | ||||||||||||||||||||||||
Dollars in millions | Year(s) due | Weighted | Outstanding | Outstanding at December 31, | Weighted | Outstanding | ||||||||||||||||||||
average | 2012 | average | ||||||||||||||||||||||||
interest rate (1) | interest rate (1) | |||||||||||||||||||||||||
Short-term debt | ||||||||||||||||||||||||||
Commercial paper - AGL Capital (2) | 2013 | 0.4 | % | $ | 680 | $ | 1,063 | 0.5 | % | $ | 875 | |||||||||||||||
Commercial paper - Nicor Gas (2) | 2013 | 0.3 | 152 | 314 | 0.5 | 173 | ||||||||||||||||||||
Total short-term debt | 0.4 | 832 | 1,377 | 0.5 | 1,048 | |||||||||||||||||||||
Current portion of long-term debt and capital leases | ||||||||||||||||||||||||||
Current portion of long-term debt | n/a | - | - | 225 | 4.6 | 225 | ||||||||||||||||||||
Current portion of capital leases | n/a | - | - | 1 | 4.9 | 1 | ||||||||||||||||||||
Total current portion of long-term debt and capital leases | - | $ | - | $ | 226 | 4.6 | % | $ | 226 | |||||||||||||||||
Long-term debt - excluding current portion | ||||||||||||||||||||||||||
Senior notes | 2015 | - | 2043 | 5.1 | % | $ | 2,825 | $ | 2,325 | 5.1 | % | $ | 2,325 | |||||||||||||
First mortgage bonds | 2016 | - | 2038 | 5.6 | 500 | 500 | 5.6 | 500 | ||||||||||||||||||
Gas facility revenue bonds | 2022 | - | 2033 | 0.8 | 200 | 200 | 1.1 | 200 | ||||||||||||||||||
Medium-term notes | 2017 | - | 2027 | 7.8 | 181 | 181 | 7.8 | 181 | ||||||||||||||||||
Total principal long-term debt | 4.9 | 3,706 | 3,206 | 5 | 3,206 | |||||||||||||||||||||
Fair value adjustment of long-term debt (3) | 2016 | - | 2038 | n/a | 94 | 103 | n/a | 106 | ||||||||||||||||||
Unamortized debt premium, net | n/a | n/a | 16 | 18 | n/a | 18 | ||||||||||||||||||||
Total non-principal long-term debt | n/a | 110 | 121 | n/a | 124 | |||||||||||||||||||||
Total long-term debt | $ | 3,816 | $ | 3,327 | $ | 3,330 | ||||||||||||||||||||
Total debt | $ | 4,648 | $ | 4,930 | $ | 4,604 | ||||||||||||||||||||
Schedule of Capitalization [Table Text Block] | 30-Sep-13 | 31-Dec-12 | 30-Sep-12 | |||||||||||||||||||||||
AGL Credit Facility | 55 | % | 58 | % | 56 | % | ||||||||||||||||||||
Nicor Gas Credit Facility | 50 | % | 55 | % | 51 | % |
Note_7_Equity_Tables
Note 7 - Equity (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity [Abstract] | |||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | 2013 | ||||||||||||
In millions (1) | Cash | Retirement | Total | ||||||||||
flow | benefit | ||||||||||||
hedges | plans | ||||||||||||
For the three months ended September 30 | |||||||||||||
Balance as of June 30 | $ | (1 | ) | $ | (208 | ) | $ | (209 | ) | ||||
Other comprehensive income, before reclassifications | - | - | - | ||||||||||
Amounts reclassified from accumulated other comprehensive income | - | 1 | 1 | ||||||||||
Net current-period other comprehensive (loss) income | - | 1 | 1 | ||||||||||
Balance as of September 30 | $ | (1 | ) | $ | (207 | ) | $ | (208 | ) | ||||
For the nine months ended September 30 | |||||||||||||
Balance as of December 31, prior year | $ | (3 | ) | $ | (215 | ) | $ | (218 | ) | ||||
Other comprehensive income, before reclassifications | - | - | - | ||||||||||
Amounts reclassified from accumulated other comprehensive income | 2 | 8 | 10 | ||||||||||
Net current-period other comprehensive income | 2 | 8 | 10 | ||||||||||
Balance as of September 30 | $ | (1 | ) | $ | (207 | ) | $ | (208 | ) | ||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | In millions | Three | Nine | ||||||||||
Months | Months | ||||||||||||
Cash flow hedges | |||||||||||||
Natural gas contracts | (1 | ) | - | Cost of goods sold | |||||||||
Interest rate contracts | 1 | (3 | ) | Interest expense, net | |||||||||
Income tax benefit | - | 1 | |||||||||||
Total cash flow hedges | - | (2 | ) | ||||||||||
Retirement benefit plan amortization of | |||||||||||||
Actuarial losses | (6 | ) | (19 | ) | See (2), below | ||||||||
Prior service credits | 2 | 4 | See (2), below | ||||||||||
Total before income tax | (4 | ) | (15 | ) | |||||||||
Income tax benefit | 3 | 7 | |||||||||||
Total retirement benefit plans | (1 | ) | (8 | ) | |||||||||
Total reclassification for the period | $ | (1 | ) | $ | (10 | ) |
Note_8_NonWholly_Owned_Entitie1
Note 8 - Non-Wholly Owned Entities (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Table Text Block] | 30-Sep-13 | 31-Dec-12 | 30-Sep-12 | ||||||||||||||||||||||||||||||||||
In millions | Consolidated | SouthStar | Consolidated | SouthStar | Consolidated | SouthStar | |||||||||||||||||||||||||||||||
Current assets | $ | 2,091 | $ | 192 | 9 | % | $ | 2,668 | $ | 201 | 8 | % | $ | 2,135 | $ | 152 | 7 | % | |||||||||||||||||||
Goodwill and other intangible assets | 2,063 | 141 | 7 | % | 1,933 | - | - | 1,913 | - | - | |||||||||||||||||||||||||||
Long-term assets and other deferred debits | 9,750 | 11 | - | 9,540 | 10 | - | 9,455 | 10 | - | ||||||||||||||||||||||||||||
Total assets | $ | 13,904 | $ | 344 | 2 | % | $ | 14,141 | $ | 211 | 1 | % | $ | 13,503 | $ | 162 | 1 | % | |||||||||||||||||||
Current liabilities | $ | 2,407 | $ | 73 | 3 | % | $ | 3,338 | $ | 62 | 2 | % | $ | 2,764 | $ | 42 | 2 | % | |||||||||||||||||||
Long-term liabilities and other deferred credits | 7,934 | - | - | 7,368 | - | - | 7,341 | - | - | ||||||||||||||||||||||||||||
Total Liabilities | 10,341 | 73 | 1 | % | 10,706 | 62 | 1 | 10,105 | 42 | - | |||||||||||||||||||||||||||
Equity | 3,563 | 271 | 8 | % | 3,435 | 149 | 4 | 3,398 | 120 | 4 | |||||||||||||||||||||||||||
Total liabilities and equity | $ | 13,904 | $ | 344 | 2 | % | $ | 14,141 | $ | 211 | 1 | % | 13,503 | $ | 162 | 1 | % | ||||||||||||||||||||
Schedule of Variable Interest Entities [Table Text Block] | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Operating revenues | $ | 98 | $ | 87 | $ | 464 | $ | 401 | |||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||||
Cost of goods sold | 81 | 73 | 340 | 286 | |||||||||||||||||||||||||||||||||
Operation and maintenance | 16 | 13 | 49 | 44 | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 1 | 1 | 2 | 2 | |||||||||||||||||||||||||||||||||
Taxes other than income taxes | - | - | 1 | 2 | |||||||||||||||||||||||||||||||||
Total operating expenses | 98 | 87 | 392 | 334 | |||||||||||||||||||||||||||||||||
Operating income | $ | - | $ | - | $ | 72 | $ | 67 | |||||||||||||||||||||||||||||
Equity Method Investments [Table Text Block] | Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Triton | $ | 3 | $ | 2 | $ | 7 | $ | 8 | |||||||||||||||||||||||||||||
Other | - | - | 1 | 2 |
Note_9_Commitments_Guarantees_1
Note 9 - Commitments, Guarantees and Contingencies (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||
Environmental Exit Costs by Cost [Table Text Block] | In millions | Probabilistic model cost estimates | Engineering | Amount | Expected costs over | |||||||||||||
estimates | recorded | next twelve months | ||||||||||||||||
Illinois | $208 | - | $458 | $ | 45 | $ | 248 | $ | 34 | |||||||||
New Jersey | 146 | - | 240 | 5 | 150 | 5 | ||||||||||||
Georgia and Florida | 42 | - | 100 | 11 | 55 | 2 | ||||||||||||
North Carolina | n/a | 11 | 11 | 7 | ||||||||||||||
Total | $396 | - | $798 | $ | 72 | $ | 464 | $ | 48 |
Note_10_Segment_Information_Ta
Note 10 - Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
In millions | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Operating income | $ | 82 | $ | 54 | $ | 503 | $ | 407 | |||||||||||||||||||||
Other income | 7 | 6 | 19 | 19 | |||||||||||||||||||||||||
EBIT | 89 | 60 | 522 | 426 | |||||||||||||||||||||||||
Interest expense | 43 | 45 | 135 | 137 | |||||||||||||||||||||||||
Earnings before income taxes | 46 | 15 | 387 | 289 | |||||||||||||||||||||||||
Income taxes | 18 | 6 | 145 | 106 | |||||||||||||||||||||||||
Net income | $ | 28 | $ | 9 | $ | 242 | $ | 183 | |||||||||||||||||||||
Schedule Of Segment Reporting Information By Segment Total Assets Goodwill [Table Text Block] | In millions | Identifiable and | Goodwill | ||||||||||||||||||||||||||
total assets (1) | |||||||||||||||||||||||||||||
Distribution operations | $ | 11,320 | $ | 1,640 | |||||||||||||||||||||||||
Retail operations | 511 | 122 | |||||||||||||||||||||||||||
Wholesale services | 1,218 | - | |||||||||||||||||||||||||||
Midstream operations | 720 | 14 | |||||||||||||||||||||||||||
Cargo shipping | 464 | 61 | |||||||||||||||||||||||||||
Other (2) | (92 | ) | - | ||||||||||||||||||||||||||
Consolidated | $ | 14,141 | $ | 1,837 | |||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | In millions | Distributionoperations | Retail operations | Wholesale services | Midstream operations | Cargo | Other and intercompany eliminations (4) | Consolidated | |||||||||||||||||||||
shipping | |||||||||||||||||||||||||||||
Operating revenues from external parties | $ | 420 | $ | 138 | $ | 13 | $ | 19 | $ | 89 | $ | (4 | ) | $ | 675 | ||||||||||||||
Intercompany revenues (1) | 36 | - | - | - | - | (36 | ) | - | |||||||||||||||||||||
Total operating revenues | 456 | 138 | 13 | 19 | 89 | (40 | ) | 675 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Cost of goods sold | 111 | 92 | 1 | 9 | 55 | (39 | ) | 229 | |||||||||||||||||||||
Operation and maintenance | 150 | 31 | 13 | 5 | 29 | (2 | ) | 226 | |||||||||||||||||||||
Depreciation and amortization | 91 | 6 | - | 5 | 4 | 3 | 109 | ||||||||||||||||||||||
Taxes other than income taxes | 22 | 1 | 1 | 1 | 2 | 2 | 29 | ||||||||||||||||||||||
Total operating expenses | 374 | 130 | 15 | 20 | 90 | (36 | ) | 593 | |||||||||||||||||||||
Operating income (loss) | 82 | 8 | (2 | ) | (1 | ) | (1 | ) | (4 | ) | 82 | ||||||||||||||||||
Other income | 4 | - | - | - | 3 | - | 7 | ||||||||||||||||||||||
EBIT | $ | 86 | $ | 8 | $ | (2 | ) | $ | (1 | ) | $ | 2 | $ | (4 | ) | $ | 89 | ||||||||||||
Capital expenditures | $ | 200 | $ | 3 | $ | - | $ | 3 | $ | 6 | $ | 5 | $ | 217 | |||||||||||||||
In millions | Distribution operations | Retail operations | Wholesale services | Midstream operations | Cargo | Other and intercompany eliminations (4) | Consolidated | ||||||||||||||||||||||
shipping | |||||||||||||||||||||||||||||
Operating revenues from external parties | $ | 405 | $ | 118 | $ | (12 | ) | $ | 22 | $ | 83 | $ | (2 | ) | $ | 614 | |||||||||||||
Intercompany revenues (1) | 37 | - | - | - | - | (37 | ) | - | |||||||||||||||||||||
Total operating revenues | 442 | 118 | (12 | ) | 22 | 83 | (39 | ) | 614 | ||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Cost of goods sold | 107 | 83 | - | 12 | 51 | (38 | ) | 215 | |||||||||||||||||||||
Operation and maintenance | 148 | 26 | 11 | 4 | 29 | (6 | ) | 212 | |||||||||||||||||||||
Depreciation and amortization | 88 | 3 | - | 4 | 5 | 4 | 104 | ||||||||||||||||||||||
Taxes other than income taxes | 21 | 1 | 1 | 1 | 1 | 2 | 27 | ||||||||||||||||||||||
Nicor merger expenses (2) | - | - | - | - | - | 2 | 2 | ||||||||||||||||||||||
Total operating expenses | 364 | 113 | 12 | 21 | 86 | (36 | ) | 560 | |||||||||||||||||||||
Operating income (loss) | 78 | 5 | (24 | ) | 1 | (3 | ) | (3 | ) | 54 | |||||||||||||||||||
Other income | 2 | - | 1 | - | 2 | 1 | 6 | ||||||||||||||||||||||
EBIT | $ | 80 | $ | 5 | $ | (23 | ) | $ | 1 | $ | (1 | ) | $ | (2 | ) | $ | 60 | ||||||||||||
Capital expenditures | $ | 189 | $ | 3 | $ | 1 | $ | 18 | $ | 1 | $ | 7 | $ | 219 | |||||||||||||||
In millions | Distributionoperations | Retail operations | Wholesale services | Midstream operations | Cargo | Other and intercompany eliminations (4) | Consolidated | ||||||||||||||||||||||
shipping | |||||||||||||||||||||||||||||
Operating revenues from external parties | $ | 2,299 | $ | 605 | $ | 73 | $ | 58 | $ | 264 | $ | (11 | ) | $ | 3,288 | ||||||||||||||
Intercompany revenues (1) | 134 | - | - | - | - | (134 | ) | - | |||||||||||||||||||||
Total operating revenues | 2,433 | 605 | 73 | 58 | 264 | (145 | ) | 3,288 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Cost of goods sold | 1,142 | 402 | 21 | 25 | 162 | (143 | ) | 1,609 | |||||||||||||||||||||
Operation and maintenance | 494 | 94 | 36 | 17 | 87 | (10 | ) | 718 | |||||||||||||||||||||
Depreciation and amortization | 271 | 16 | 1 | 13 | 14 | 10 | 325 | ||||||||||||||||||||||
Taxes other than income taxes | 124 | 3 | 2 | 4 | 5 | 6 | 144 | ||||||||||||||||||||||
Total operating expenses | 2,031 | 515 | 60 | 59 | 268 | (137 | ) | 2,796 | |||||||||||||||||||||
Gain on sale of Compass Energy | - | - | 11 | - | - | - | 11 | ||||||||||||||||||||||
Operating income (loss) | 402 | 90 | 24 | (1 | ) | (4 | ) | (8 | ) | 503 | |||||||||||||||||||
Other income (loss) | 11 | - | - | 2 | 7 | (1 | ) | 19 | |||||||||||||||||||||
EBIT | $ | 413 | $ | 90 | $ | 24 | $ | 1 | $ | 3 | $ | (9 | ) | $ | 522 | ||||||||||||||
Identifiable and total assets (3) | $ | 11,300 | $ | 652 | $ | 930 | $ | 726 | $ | 464 | $ | (168 | ) | $ | 13,904 | ||||||||||||||
Goodwill | $ | 1,640 | $ | 168 | $ | - | $ | 14 | $ | 61 | $ | - | $ | 1,883 | |||||||||||||||
Capital expenditures | $ | 495 | $ | 7 | $ | - | $ | 11 | $ | 9 | $ | 13 | $ | 535 | |||||||||||||||
In millions | Distribution operations | Retail operations | Wholesale services | Midstream operations | Cargo | Other and intercompany eliminations (4) | Consolidated | ||||||||||||||||||||||
shipping | |||||||||||||||||||||||||||||
Operating revenues from external parties | $ | 1,848 | $ | 517 | $ | 59 | $ | 56 | $ | 247 | $ | (23 | ) | $ | 2,704 | ||||||||||||||
Intercompany revenues (1) | 124 | - | - | - | - | (124 | ) | - | |||||||||||||||||||||
Total operating revenues | 1,972 | 517 | 59 | 56 | 247 | (147 | ) | 2,704 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Cost of goods sold | 767 | 342 | 34 | 24 | 152 | (145 | ) | 1,174 | |||||||||||||||||||||
Operation and maintenance | 473 | 83 | 35 | 13 | 83 | (12 | ) | 675 | |||||||||||||||||||||
Depreciation and amortization | 262 | 10 | 1 | 10 | 17 | 10 | 310 | ||||||||||||||||||||||
Taxes other than income taxes | 103 | 3 | 3 | 4 | 4 | 6 | 123 | ||||||||||||||||||||||
Nicor merger expenses (2) | - | - | - | - | - | 15 | 15 | ||||||||||||||||||||||
Total operating expenses | 1,605 | 438 | 73 | 51 | 256 | (126 | ) | 2,297 | |||||||||||||||||||||
Operating income (loss) | 367 | 79 | (14 | ) | 5 | (9 | ) | (21 | ) | 407 | |||||||||||||||||||
Other income | 7 | - | 1 | 1 | 8 | 2 | 19 | ||||||||||||||||||||||
EBIT | $ | 374 | $ | 79 | $ | (13 | ) | $ | 6 | $ | (1 | ) | $ | (19 | ) | $ | 426 | ||||||||||||
Identifiable and total assets (3) | $ | 10,970 | $ | 472 | $ | 970 | $ | 712 | $ | 482 | $ | (103 | ) | $ | 13,503 | ||||||||||||||
Goodwill | $ | 1,591 | $ | 122 | $ | - | $ | 14 | $ | 90 | $ | - | $ | 1,817 | |||||||||||||||
Capital expenditures | $ | 457 | $ | 7 | $ | 1 | $ | 77 | $ | 2 | $ | 25 | $ | 569 |
Note_1_Organization_and_Basis_1
Note 1 - Organization and Basis of Presentation (Details) (Interest Expense [Member], USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Note 1 - Organization and Basis of Presentation (Details) [Line Items] | |
Prior Period Reclassification Adjustment | $4 |
Net of Tax [Member] | |
Note 1 - Organization and Basis of Presentation (Details) [Line Items] | |
Prior Period Reclassification Adjustment | $2 |
Note_2_Significant_Accounting_2
Note 2 - Significant Accounting Policies and Methods of Application (Details) (USD $) | 1 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 8 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Aug. 29, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jan. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 |
Net of Tax [Member] | Midstream Operations [Member] | Midstream Operations [Member] | Midstream Operations [Member] | Proposed Rate [Member] | Current Rate [Member] | Compass Energy [Member] | Tropical Shipping [Member] | Tropical Shipping [Member] | Tropical Shipping [Member] | NiSource Inc. [Member] | NiSource Inc. [Member] | NiSource Inc. [Member] | Customer Relationships [Member] | Minimum [Member] | Maximum [Member] | |||||
Compass Energy [Member] | Nicor Gas [Member] | Nicor Gas [Member] | Customer Relationships [Member] | Trade Names [Member] | Customer Relationships [Member] | Customer Relationships [Member] | ||||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | ||||||||||||||||||||
Investments and Cash | $74 | $80 | $76 | |||||||||||||||||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 3.07% | 4.10% | ||||||||||||||||||
Reduction in Depreciation Expense | 4 | |||||||||||||||||||
Goodwill | 1,883 | 1,883 | 1,837 | 1,817 | 14 | 14 | 14 | 46 | ||||||||||||
Percent Goodwill Exceeds Carrying Value | 10.00% | |||||||||||||||||||
Service Plans Acquired | 500,000 | |||||||||||||||||||
Payments to Acquire Businesses, Gross | 120 | |||||||||||||||||||
Working Capital Acquired | 2 | |||||||||||||||||||
Finite-lived Intangible Assets Acquired | 47 | 17 | ||||||||||||||||||
Finite-Lived Intangible Asset, Useful Life | 14 years | 10 years | 14 years | 16 years | ||||||||||||||||
Customer Relationships Acquired | 33,000 | |||||||||||||||||||
Finite-Lived Customer Relationships, Gross | 32 | |||||||||||||||||||
Proceeds from Sales of Business, Affiliate and Productive Assets | 12 | 12 | ||||||||||||||||||
Gain (Loss) on Disposition of Business | 5 | 11 | ||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 8 | |||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $3 | |||||||||||||||||||
Business Combination Contingent Consideration Arrangements Earn Out Period | 5 years |
Note_2_Significant_Accounting_3
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost of Goods Sold Adjustments (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Retail Operations [Member] | Three Months Ended [Member] | ||
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost of Goods Sold Adjustments [Line Items] | ||
LOCOM Adjustments | $1 | |
Retail Operations [Member] | Nine Months Ended [Member] | ||
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost of Goods Sold Adjustments [Line Items] | ||
LOCOM Adjustments | 1 | 3 |
Wholesale Services [Member] | Nine Months Ended [Member] | ||
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost of Goods Sold Adjustments [Line Items] | ||
LOCOM Adjustments | 8 | 18 |
Midstream Operations [Member] | Nine Months Ended [Member] | ||
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost of Goods Sold Adjustments [Line Items] | ||
LOCOM Adjustments | $1 |
Note_2_Significant_Accounting_4
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Summary of Regulatory Assets and Liabilities (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Millions, unless otherwise specified | |||
Regulatory assets | |||
Regulatory assets - current | $133 | $145 | $158 |
Regulatory assets - noncurrent | 871 | 944 | 994 |
Total regulatory assets | 1,004 | 1,089 | 1,152 |
Regulatory liabilities | |||
Regulatory liabilities - current | 174 | 161 | 117 |
Regulatory liabilities - noncurrent | 1,524 | 1,477 | 1,465 |
Total regulatory liabilities | 1,698 | 1,638 | 1,582 |
Accrued natural gas costs [Member] | |||
Regulatory liabilities | |||
Regulatory liabilities - current | 104 | 93 | 62 |
Bad debt rider [Member] | |||
Regulatory liabilities | |||
Regulatory liabilities - current | 37 | 37 | 30 |
Regulatory liabilities - noncurrent | 20 | 17 | 16 |
Accumulated removal costs [Member] | |||
Regulatory liabilities | |||
Regulatory liabilities - current | 17 | 16 | 14 |
Regulatory liabilities - noncurrent | 1,448 | 1,393 | 1,381 |
Other Regulatory Liabilities [Member] | |||
Regulatory liabilities | |||
Regulatory liabilities - current | 16 | 15 | 11 |
Regulatory liabilities - noncurrent | 4 | 11 | 15 |
Unamortized investment tax credit [Member] | |||
Regulatory liabilities | |||
Regulatory liabilities - noncurrent | 26 | 29 | 30 |
Regulatory income tax liability [Member] | |||
Regulatory liabilities | |||
Regulatory liabilities - noncurrent | 26 | 27 | 23 |
Recoverable regulatory infrastructure program costs [Member] | |||
Regulatory assets | |||
Regulatory assets - current | 46 | 47 | 46 |
Regulatory assets - noncurrent | 104 | 167 | 194 |
Recoverable Environmental Remediation Costs [Member] | |||
Regulatory assets | |||
Regulatory assets - current | 30 | 38 | 33 |
Regulatory assets - noncurrent | 456 | 438 | 421 |
Recoverable Pension And Other Retirement Benefit Costs [Member] | |||
Regulatory assets | |||
Regulatory assets - current | 19 | 19 | 27 |
Regulatory assets - noncurrent | 183 | 196 | 228 |
Other Regulatory Assets [Member] | |||
Regulatory assets | |||
Regulatory assets - current | 38 | 41 | 52 |
Regulatory assets - noncurrent | 44 | 53 | 59 |
Long-Term Debt Fair Value Adjustment [Member] | |||
Regulatory assets | |||
Regulatory assets - noncurrent | $84 | $90 | $92 |
Note_2_Significant_Accounting_5
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Other Income (Expense), Net (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Other Income (Expense), Net [Abstract] | ||||||||
Allowance for funds used during construction (AFUDC) - equity | $3 | $2 | $9 | $4 | ||||
Equity investment income (1) | 3 | [1] | 2 | [1] | 8 | [1] | 10 | [1] |
Other, net | 1 | 2 | 2 | 5 | ||||
Total other income | $7 | $6 | $19 | $19 | ||||
[1] | Primarily relates to our investment in Triton. See Note 8 for additional information. |
Note_2_Significant_Accounting_6
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Potentially Dilutive Common Share Calculation (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Potentially Dilutive Common Share Calculation [Abstract] | ||||||||
Net income attributable to AGL Resources Inc. (in Dollars) | $28 | $9 | $231 | $173 | ||||
Basic weighted average number of shares outstanding (1) | 118.2 | [1] | 117.1 | [1] | 117.8 | [1] | 116.9 | [1] |
Effect of dilutive securities | 0.3 | 0.4 | 0.3 | 0.4 | ||||
Diluted weighted average number of shares outstanding | 118.5 | 117.5 | 118.1 | 117.3 | ||||
Basic (in Dollars per share) | $0.24 | $0.08 | $1.96 | $1.48 | ||||
Diluted (in Dollars per share) | $0.24 | $0.08 | $1.96 | $1.48 | ||||
[1] | Daily weighted average shares outstanding. |
Note_2_Significant_Accounting_7
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Purchase Price Allocation (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jan. 31, 2013 |
In Millions, unless otherwise specified | NiSource Inc. [Member] | |||
Business Acquisition [Line Items] | ||||
Current assets | $5 | |||
PP&E | 11 | |||
Goodwill | 1,883 | 1,837 | 1,817 | 46 |
Intangible assets | 64 | |||
Current liabilities | -4 | |||
Total purchase price | $122 |
Note_3_Fair_Value_Measurements2
Note 3 - Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Millions, unless otherwise specified | |||
Fair Value Disclosures [Abstract] | |||
Weather Derivative Premium | $3 | $4 | $1 |
Note_3_Fair_Value_Measurements3
Note 3 - Fair Value Measurements (Details) - Derivative Assets and Liabilities (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |||
In Millions, unless otherwise specified | ||||||
Netting of Cash Collateral [Member] | Natural Gas Derivatives [Member] | ||||||
Note 3 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||||
Derivative Assets | $45 | [1] | $33 | [1] | $47 | [1] |
Derivative Liabilities | 49 | 36 | 46 | |||
Fair Value, Inputs, Level 1 [Member] | Natural Gas Derivatives [Member] | ||||||
Note 3 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||||
Derivative Assets | 4 | [1] | 8 | [1] | 11 | [1] |
Derivative Liabilities | -52 | -45 | -55 | |||
Fair Value, Inputs, Level 2 [Member] | Natural Gas Derivatives [Member] | ||||||
Note 3 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||||
Derivative Assets | 60 | [1] | 96 | [1] | 100 | [1] |
Derivative Liabilities | -41 | -30 | -33 | |||
Fair Value, Inputs, Level 2 [Member] | Interest Rate Contract [Member] | ||||||
Note 3 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||||
Derivative Assets | [1] | 3 | [1] | [1] | ||
Natural Gas Derivatives [Member] | ||||||
Note 3 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||||
Derivative Assets | 109 | [1],[2],[3] | 137 | [1],[2],[3] | 158 | [1],[2],[3] |
Derivative Liabilities | ($44) | [2],[3] | ($39) | [2],[3] | ($42) | [2],[3] |
[1] | Balances of $3 million of premium at September 30, 2013, $4 million at December 31, 2012 and $1 million at September 30, 2012 associated with weather derivatives have been excluded, as they are not material and some are accounted for based on intrinsic value. | |||||
[2] | There were no material unobservable inputs (Level 3) for any of the dates presented. | |||||
[3] | There were no material transfers between Level 1, Level 2 or Level 3 for any of the dates presented. |
Note_3_Fair_Value_Measurements4
Note 3 - Fair Value Measurements (Details) - Money Market Funds (Fair Value, Inputs, Level 1 [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |||
In Millions, unless otherwise specified | ||||||
Fair Value, Inputs, Level 1 [Member] | ||||||
Note 3 - Fair Value Measurements (Details) - Money Market Funds [Line Items] | ||||||
Money market funds (1) | $48 | [1] | $66 | [1] | $69 | [1] |
[1] | Carried at fair value and classified as Level 1 within the fair value hierarchy. |
Note_3_Fair_Value_Measurements5
Note 3 - Fair Value Measurements (Details) - Amortized Cost and Fair Value of Long-Term Debt (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |||
In Millions, unless otherwise specified | ||||||
Note 3 - Fair Value Measurements (Details) - Amortized Cost and Fair Value of Long-Term Debt [Line Items] | ||||||
Long-term debt amortized cost | $3,816 | $3,553 | $3,556 | |||
Fair Value, Inputs, Level 2 [Member] | ||||||
Note 3 - Fair Value Measurements (Details) - Amortized Cost and Fair Value of Long-Term Debt [Line Items] | ||||||
Long-term debt fair value (1) | $4,024 | [1] | $4,057 | [1] | $4,100 | [1] |
[1] | Fair value determined using Level 2 inputs. |
Note_4_Derivative_Instruments_1
Note 4 - Derivative Instruments (Details) (USD $) | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Note 4 - Derivative Instruments (Details) [Line Items] | ||||||||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | $44 | [1],[2] | $42 | [1],[2] | $39 | [1],[2] | $110 | [1],[2] |
Increase (Decrease) in Risk Management Assets and Liabilities | -37 | -61 | ||||||
Collateral Already Posted, Aggregate Fair Value | 94 | 93 | 69 | 147 | ||||
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | 1 | |||||||
Less Than Two Years [Member] | Natural Gas [Member] | ||||||||
Note 4 - Derivative Instruments (Details) [Line Items] | ||||||||
Percent Of Derivative Contracts | 97.00% | |||||||
ExpiringIn Two To Six Years [Member] | Natural Gas [Member] | ||||||||
Note 4 - Derivative Instruments (Details) [Line Items] | ||||||||
Percent Of Derivative Contracts | 3.00% | |||||||
Weather Derivatives [Member] | ||||||||
Note 4 - Derivative Instruments (Details) [Line Items] | ||||||||
Derivative, Gain (Loss) on Derivative, Net | ($3) | $14 | ||||||
Minimum [Member] | ||||||||
Note 4 - Derivative Instruments (Details) [Line Items] | ||||||||
Natural Gas Derivative Term | 2 years | |||||||
Maximum [Member] | ||||||||
Note 4 - Derivative Instruments (Details) [Line Items] | ||||||||
Natural Gas Derivative Term | 6 years | |||||||
[1] | As required by the authoritative guidance related to derivatives and hedging, the gross amounts of recognized assets and liabilities above do not include cash collateral held on deposit in broker margin accounts of $94 million as of September 30, 2013, $69 million as of December 31, 2012, $93 million as of September 30, 2012 and $147 million as of December 31, 2011. Cash collateral is included in the "Gross amounts offset in our unaudited Condensed Consolidated Statements of Financial Position" line of this table. | |||||||
[2] | The gross amounts of recognized assets and liabilities are netted within our unaudited Condensed Consolidated Statements of Financial Position to the extent that we have netting arrangements with the counterparties. |
Note_4_Derivative_Instruments_2
Note 4 - Derivative Instruments (Details) - Gains and Losses on Derivative Instruments (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Nicor Gas [Member] | ||||
Note 4 - Derivative Instruments (Details) - Gains and Losses on Derivative Instruments [Line Items] | ||||
Realized losses related to hedging natural gas costs | ($6) | ($12) | $2 | ($60) |
Elizabethtown Gas [Member] | ||||
Note 4 - Derivative Instruments (Details) - Gains and Losses on Derivative Instruments [Line Items] | ||||
Realized losses related to hedging natural gas costs | ($1) | ($6) | ($5) | ($23) |
Note_4_Derivative_Instruments_3
Note 4 - Derivative Instruments (Details) - Net Long Natural Gas Contracts | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |||
ft3 | ft3 | ft3 | ||||
Hedge designation | ||||||
Cash flow hedges | 3,000,000,000 | [1],[2] | 6,000,000,000 | [1] | 7,000,000,000 | [1] |
Not designated as hedges | 40,000,000,000 | [1],[2] | 96,000,000,000 | [1] | 35,000,000,000 | [1] |
Total hedges | 43,000,000,000 | [1],[2] | 102,000,000,000 | [1] | 42,000,000,000 | [1] |
Hedge position | ||||||
Short position | -2,788,000,000,000 | [1],[2] | -1,955,000,000,000 | [1] | -1,994,000,000,000 | [1] |
Long position | 2,831,000,000,000 | [1],[2] | 2,057,000,000,000 | [1] | 2,036,000,000,000 | [1] |
Net long position | 43,000,000,000 | [1],[2] | 102,000,000,000 | [1] | 42,000,000,000 | [1] |
[1] | Volumes related to Nicor Gas exclude variable-priced contracts, which are accounted for as derivatives, but whose fair values are not directly impacted by changes in commodity prices. | |||||
[2] | Approximately 97% of these contracts have durations of two years or less and the remaining 3% expire between 2 and 6 years. |
Note_4_Derivative_Instruments_4
Note 4 - Derivative Instruments (Details) - Derivative Instruments on the Condensed Consolidated Statements of Financial Position (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||||
In Millions, unless otherwise specified | ||||||||
Designated as cash flow hedges and fair value hedges | ||||||||
Net amounts of assets and liabilities presented in our unaudited Condensed Consolidated Statements of Financial Position | $112 | [1],[2] | $144 | [1],[2] | $159 | [1],[2] | $288 | [1],[2] |
Net amounts of assets and liabilities presented in our unaudited Condensed Consolidated Statements of Financial Position | -44 | [1],[2] | -39 | [1],[2] | -42 | [1],[2] | -110 | [1],[2] |
Designated as Hedging Instrument [Member] | Current Natural Gas Contracts [Member] | ||||||||
Designated as cash flow hedges and fair value hedges | ||||||||
Assets | 6 | [1],[2] | 1 | [1],[2] | 4 | [1],[2] | 9 | [1],[2] |
Liabilities | -5 | [1],[2] | -2 | [1],[2] | -3 | [1],[2] | -12 | [1],[2] |
Designated as Hedging Instrument [Member] | Long-Term Natural Gas Contracts [Member] | ||||||||
Designated as cash flow hedges and fair value hedges | ||||||||
Assets | [1],[2] | 3 | [1],[2] | [1],[2] | [1],[2] | |||
Liabilities | [1],[2] | [1],[2] | [1],[2] | [1],[2] | ||||
Designated as Hedging Instrument [Member] | Long-Term Interest Rate Swap Agreements [Member] | ||||||||
Designated as cash flow hedges and fair value hedges | ||||||||
Assets | [1],[2] | [1],[2] | [1],[2] | 13 | [1],[2] | |||
Liabilities | [1],[2] | [1],[2] | [1],[2] | -13 | [1],[2] | |||
Designated as Hedging Instrument [Member] | ||||||||
Designated as cash flow hedges and fair value hedges | ||||||||
Assets | 6 | [1],[2] | 4 | [1],[2] | 4 | [1],[2] | 22 | [1],[2] |
Liabilities | -5 | [1],[2] | -2 | [1],[2] | -3 | [1],[2] | -25 | [1],[2] |
Not Designated as Hedging Instrument [Member] | Current Natural Gas Contracts [Member] | ||||||||
Designated as cash flow hedges and fair value hedges | ||||||||
Assets | 445 | [1],[2] | 394 | [1],[2] | 427 | [1],[2] | 706 | [1],[2] |
Liabilities | -462 | [1],[2] | -355 | [1],[2] | -408 | [1],[2] | -689 | [1],[2] |
Not Designated as Hedging Instrument [Member] | Long-Term Natural Gas Contracts [Member] | ||||||||
Designated as cash flow hedges and fair value hedges | ||||||||
Assets | 143 | [1],[2] | 45 | [1],[2] | 54 | [1],[2] | 133 | [1],[2] |
Liabilities | -153 | [1],[2] | -50 | [1],[2] | -50 | [1],[2] | -116 | [1],[2] |
Not Designated as Hedging Instrument [Member] | ||||||||
Designated as cash flow hedges and fair value hedges | ||||||||
Assets | 588 | [1],[2] | 439 | [1],[2] | 481 | [1],[2] | 839 | [1],[2] |
Liabilities | -615 | [1],[2] | -405 | [1],[2] | -458 | [1],[2] | -805 | [1],[2] |
Long-Term Natural Gas Contracts [Member] | ||||||||
Designated as cash flow hedges and fair value hedges | ||||||||
Assets | 594 | [1],[2] | 443 | [1],[2] | 485 | [1],[2] | 861 | [1],[2] |
Liabilities | -620 | [1],[2] | -407 | [1],[2] | -461 | [1],[2] | -830 | [1],[2] |
Gross amounts offset in our unaudited Condensed Consolidated Statements of Financial Position | -482 | [1],[2] | -299 | [1],[2] | -326 | [1],[2] | -573 | [1],[2] |
Gross amounts offset in our unaudited Condensed Consolidated Statements of Financial Position | $576 | [1],[2] | $368 | [1],[2] | $419 | [1],[2] | $720 | [1],[2] |
[1] | As required by the authoritative guidance related to derivatives and hedging, the gross amounts of recognized assets and liabilities above do not include cash collateral held on deposit in broker margin accounts of $94 million as of September 30, 2013, $69 million as of December 31, 2012, $93 million as of September 30, 2012 and $147 million as of December 31, 2011. Cash collateral is included in the "Gross amounts offset in our unaudited Condensed Consolidated Statements of Financial Position" line of this table. | |||||||
[2] | The gross amounts of recognized assets and liabilities are netted within our unaudited Condensed Consolidated Statements of Financial Position to the extent that we have netting arrangements with the counterparties. |
Note_4_Derivative_Instruments_5
Note 4 - Derivative Instruments (Details) - Derivative Instruments on the Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Not designated as hedges | ||||||||
Total (losses) on derivative instruments | ($14) | ($18) | ($19) | ($46) | ||||
Cash Flow Hedging [Member] | Cost of Sales [Member] | ||||||||
Designated as cash flow hedges | ||||||||
Natural gas contracts - gain reclassified from OCI | -1 | -2 | -2 | |||||
Cash Flow Hedging [Member] | Operating Expense [Member] | ||||||||
Designated as cash flow hedges | ||||||||
Natural gas contracts - gain reclassified from OCI | -2 | -1 | ||||||
Cash Flow Hedging [Member] | Interest Expense [Member] | ||||||||
Designated as cash flow hedges | ||||||||
Interest rate swaps reclassified from OCI to interest expense | 1 | 2 | -2 | -1 | ||||
Fair Value Hedging [Member] | Cost of Sales [Member] | ||||||||
Not designated as hedges | ||||||||
Natural gas contracts - net value adjustments | [1] | 1 | [1] | -1 | [1] | -2 | [1] | |
Fair Value Hedging [Member] | Sales [Member] | ||||||||
Not designated as hedges | ||||||||
Natural gas contracts - net value adjustments | ($14) | [2] | ($17) | [2] | ($16) | [2] | ($40) | [2] |
[1] | Excludes losses recorded in operating revenues or cost of goods sold associated with weather derivatives of $3 million for the nine months ended September 30, 2013 and gains of $14 million for the nine months ended September 30, 2012. | |||||||
[2] | Associated with the fair value of existing derivative instruments at September 30, 2013 and 2012. |
Note_5_Employee_Benefit_Plans_1
Note 5 - Employee Benefit Plans (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Benefit Plan, Contributions by Employer | $0 | $32,000,000 |
Note_5_Employee_Benefit_Plans_2
Note 5 - Employee Benefit Plans (Details) - Employee Benefit Plans (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Plan, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $7 | $7 | $22 | $21 |
Interest cost | 11 | 10 | 32 | 32 |
Expected return on plan assets | -16 | -16 | -47 | -48 |
Net amortization of prior service cost | -1 | -1 | ||
Recognized actuarial loss | 9 | 9 | 26 | 26 |
Net periodic pension benefit cost | 11 | 10 | 32 | 30 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 2 | 3 |
Interest cost | 3 | 4 | 10 | 12 |
Expected return on plan assets | -1 | -1 | -4 | -4 |
Net amortization of prior service cost | -1 | -1 | -3 | -2 |
Recognized actuarial loss | 2 | 2 | 6 | 7 |
Net periodic pension benefit cost | $4 | $5 | $11 | $16 |
Note_6_Debt_and_Credit_Facilit2
Note 6 - Debt and Credit Facilities (Details) (USD $) | 0 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 6 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | 31-May-13 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | 31-May-13 | Apr. 30, 2013 | Jun. 30, 2013 | 15-May-13 | Apr. 30, 2013 | Sep. 30, 2013 | |
Subsequent Event [Member] | Subsequent Event [Member] | Target ratio [Member] | Target ratio [Member] | Refinanced [Member] | Refinanced [Member] | Refinanced [Member] | Refinanced [Member] | Refinanced [Member] | AGL Capital [Member] | Nicor Gas [Member] | Interest Rate Swap 1 [Member] | Gas Facility Revenue Bonds [Member] | Gas Facility Revenue Bonds [Member] | Gas Facility Revenue Bonds [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2 [Member] | Maximum [Member] | ||||||
AGL and Nicor Gas Credit Facilities [Member] | Maximum [Member] | Minimum [Member] | Debt Issued By New Jersey Economic Development Authority [Member] | Debt Issued by Brevard County Florida [Member] | Refunding Bonds [Member] | Purchase of Existing Bonds [Member] | Gas Facility Revenue Bonds [Member] | |||||||||||||||||||
Gas Facility Revenue Bonds [Member] | Gas Facility Revenue Bonds [Member] | Gas Facility Revenue Bonds [Member] | Gas Facility Revenue Bonds [Member] | |||||||||||||||||||||||
Note 6 - Debt and Credit Facilities (Details) [Line Items] | ||||||||||||||||||||||||||
Debt, Weighted Average Interest Rate | 0.40% | 0.20% | ||||||||||||||||||||||||
Extension Term | 1 year | |||||||||||||||||||||||||
Line of Credit Facility, Extension Fees | $1 | |||||||||||||||||||||||||
Proceeds from Issuance of Long-term Debt | 500 | |||||||||||||||||||||||||
Debt Instrument, Term | 30 years | 30 years | ||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | |||||||||||||||||||||||||
Repayments of Senior Debt | 225 | 225 | ||||||||||||||||||||||||
Long-term Debt | 3,816 | 3,327 | 3,330 | 180 | 20 | 60 | 140 | 200 | 200 | [1] | 200 | 200 | ||||||||||||||
Derivative, Term of Contract | 10 years | |||||||||||||||||||||||||
Derivative Asset, Notional Amount | 50 | 300 | 50 | |||||||||||||||||||||||
Derivative, Average Swaption Interest Rate | 1.98% | 1.85% | ||||||||||||||||||||||||
Proceeds from Derivative Instrument, Financing Activities | $6 | |||||||||||||||||||||||||
Amortization Period of Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge | 10 years | |||||||||||||||||||||||||
Ratio of Indebtedness to Net Capital | 0.6 | 0.5 | 0.7 | |||||||||||||||||||||||
[1] | Interest rates are calculated based on the daily weighted average balance outstanding for the nine months ended September 30. |
Note_6_Debt_and_Credit_Facilit3
Note 6 - Debt and Credit Facilities (Details) - Debt Schedule (USD $) | 9 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |||
Short-term debt | ||||||
Weighted average interest rate | [1] | 4.60% | [1] | |||
Outstanding | $226 | $226 | ||||
Long-term debt - excluding current portion | ||||||
Outstanding | 3,816 | 3,327 | 3,330 | |||
Total debt | 4,648 | 4,930 | 4,604 | |||
Commercial Paper [Member] | AGL Capital [Member] | ||||||
Short-term debt | ||||||
Maturity Date | 2013 | [2] | ||||
Weighted average interest rate | 0.40% | [1],[2] | 0.50% | [1],[2] | ||
Outstanding | 680 | [2] | 1,063 | [2] | 875 | [2] |
Long-term debt - excluding current portion | ||||||
Maturity Date | 2013 | [2] | ||||
Commercial Paper [Member] | Nicor Gas [Member] | ||||||
Short-term debt | ||||||
Maturity Date | 2013 | |||||
Weighted average interest rate | 0.30% | [1] | 0.50% | [1] | ||
Outstanding | 152 | 314 | 173 | |||
Long-term debt - excluding current portion | ||||||
Maturity Date | 2013 | |||||
Commercial Paper [Member] | ||||||
Short-term debt | ||||||
Weighted average interest rate | 0.40% | [1] | 0.50% | [1] | ||
Outstanding | 832 | 1,377 | 1,048 | |||
Current Portion Long-Term Debt [Member] | ||||||
Short-term debt | ||||||
Maturity Date | n/a | |||||
Weighted average interest rate | [1] | 4.60% | [1] | |||
Outstanding | 225 | 225 | ||||
Long-term debt - excluding current portion | ||||||
Maturity Date | n/a | |||||
Current Portion of Capital Leases [Member] | ||||||
Short-term debt | ||||||
Maturity Date | n/a | |||||
Weighted average interest rate | [1] | 4.90% | [1] | |||
Outstanding | 1 | [1] | 1 | |||
Long-term debt - excluding current portion | ||||||
Maturity Date | n/a | |||||
Senior Notes [Member] | ||||||
Short-term debt | ||||||
Maturity Date | - | [1] | ||||
Long-term debt - excluding current portion | ||||||
Maturity Date | - | [1] | ||||
Weighted average interest rate | 5.10% | [1] | 5.10% | [1] | ||
Outstanding | 2,825 | [1] | 2,325 | 2,325 | ||
First Mortgage Bonds [Member] | ||||||
Short-term debt | ||||||
Maturity Date | - | [1] | ||||
Long-term debt - excluding current portion | ||||||
Maturity Date | - | [1] | ||||
Weighted average interest rate | 5.60% | [1] | 5.60% | [1] | ||
Outstanding | 500 | [1] | 500 | 500 | ||
Gas Facility Revenue Bonds [Member] | ||||||
Short-term debt | ||||||
Maturity Date | - | [1] | ||||
Long-term debt - excluding current portion | ||||||
Maturity Date | - | [1] | ||||
Weighted average interest rate | 0.80% | [1] | 1.10% | [1] | ||
Outstanding | 200 | [1] | 200 | 200 | ||
Medium-term Notes [Member] | ||||||
Short-term debt | ||||||
Maturity Date | - | [1] | ||||
Long-term debt - excluding current portion | ||||||
Maturity Date | - | [1] | ||||
Weighted average interest rate | 7.80% | [1] | 7.80% | [1] | ||
Outstanding | 181 | [1] | 181 | 181 | ||
Long-Term Debt Principal [Member] | ||||||
Long-term debt - excluding current portion | ||||||
Weighted average interest rate | 4.90% | [1] | 5.00% | [1] | ||
Outstanding | 3,706 | 3,206 | 3,206 | |||
Long-Term Debt Fair Value Adjustment [Member] | ||||||
Short-term debt | ||||||
Maturity Date | - | [1],[3] | ||||
Long-term debt - excluding current portion | ||||||
Maturity Date | - | [1],[3] | ||||
Weighted average interest rate | [1],[3] | [1],[3] | ||||
Outstanding | 94 | [1],[3] | 103 | [3] | 106 | [3] |
Unamortized Debt Premium Discount Net [Member] | ||||||
Short-term debt | ||||||
Maturity Date | n/a | |||||
Long-term debt - excluding current portion | ||||||
Maturity Date | n/a | |||||
Weighted average interest rate | [1] | [1] | ||||
Outstanding | 16 | 18 | 18 | |||
Long-Term Debt Non-Principal [Member] | ||||||
Long-term debt - excluding current portion | ||||||
Weighted average interest rate | [1] | [1] | ||||
Outstanding | $110 | $121 | $124 | |||
Minimum [Member] | Senior Notes [Member] | ||||||
Short-term debt | ||||||
Maturity Date | 2015 | |||||
Long-term debt - excluding current portion | ||||||
Maturity Date | 2015 | |||||
Minimum [Member] | First Mortgage Bonds [Member] | ||||||
Short-term debt | ||||||
Maturity Date | 2016 | |||||
Long-term debt - excluding current portion | ||||||
Maturity Date | 2016 | |||||
Minimum [Member] | Gas Facility Revenue Bonds [Member] | ||||||
Short-term debt | ||||||
Maturity Date | 2022 | |||||
Long-term debt - excluding current portion | ||||||
Maturity Date | 2022 | |||||
Minimum [Member] | Medium-term Notes [Member] | ||||||
Short-term debt | ||||||
Maturity Date | 2017 | |||||
Long-term debt - excluding current portion | ||||||
Maturity Date | 2017 | |||||
Minimum [Member] | Long-Term Debt Fair Value Adjustment [Member] | ||||||
Short-term debt | ||||||
Maturity Date | 2016 | [3] | ||||
Long-term debt - excluding current portion | ||||||
Maturity Date | 2016 | [3] | ||||
Maximum [Member] | Senior Notes [Member] | ||||||
Short-term debt | ||||||
Maturity Date | 2043 | |||||
Long-term debt - excluding current portion | ||||||
Maturity Date | 2043 | |||||
Maximum [Member] | First Mortgage Bonds [Member] | ||||||
Short-term debt | ||||||
Maturity Date | 2038 | |||||
Long-term debt - excluding current portion | ||||||
Maturity Date | 2038 | |||||
Maximum [Member] | Gas Facility Revenue Bonds [Member] | ||||||
Short-term debt | ||||||
Maturity Date | 2033 | |||||
Long-term debt - excluding current portion | ||||||
Maturity Date | 2033 | |||||
Maximum [Member] | Medium-term Notes [Member] | ||||||
Short-term debt | ||||||
Maturity Date | 2027 | |||||
Long-term debt - excluding current portion | ||||||
Maturity Date | 2027 | |||||
Maximum [Member] | Long-Term Debt Fair Value Adjustment [Member] | ||||||
Short-term debt | ||||||
Maturity Date | 2038 | [3] | ||||
Long-term debt - excluding current portion | ||||||
Maturity Date | 2038 | [3] | ||||
[1] | Interest rates are calculated based on the daily weighted average balance outstanding for the nine months ended September 30. | |||||
[2] | As of September 30, 2013, the effective interest rates on our commercial paper borrowings were 0.4% for AGL Capital and 0.2% for Nicor Gas. | |||||
[3] | See Note 3 for additional information on our fair value measurements. |
Note_6_Debt_and_Credit_Facilit4
Note 6 - Debt and Credit Facilities (Details) - Debt-to-capitalization Ratios | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
AGL Capital [Member] | |||
Schedule of Capitalization [Line Items] | |||
Debt-to-capitalization ratio | 0.55 | 0.58 | 0.56 |
Nicor Gas [Member] | |||
Schedule of Capitalization [Line Items] | |||
Debt-to-capitalization ratio | 0.5 | 0.55 | 0.51 |
Note_7_Equity_Details_Other_Co
Note 7 - Equity (Details) - Other Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Other Comprehensive Income (Loss) [Abstract] | ||||||
Cash flow hedges | ($1) | [1] | ($3) | [1] | ||
Retirement benefit plans | -208 | [1] | -215 | [1] | ||
Total | -209 | [1] | -218 | [1] | ||
Other comprehensive income, before reclassifications | [1] | |||||
Other comprehensive income, before reclassifications | [1] | |||||
Other comprehensive income, before reclassifications | [1] | |||||
Amounts reclassified from accumulated other comprehensive income | [1] | 2 | 2 | [1] | 4 | |
Amounts reclassified from accumulated other comprehensive income | 1 | [1] | 8 | [1] | ||
Amounts reclassified from accumulated other comprehensive income | 1 | [1] | 10 | [1] | ||
Net current-period other comprehensive (loss) income | [1] | 2 | 2 | [1] | 4 | |
Net current-period other comprehensive (loss) income | 1 | [1] | 2 | 8 | [1] | 10 |
Net current-period other comprehensive (loss) income | 1 | [1] | 4 | 10 | [1] | 14 |
Cash flow hedges | -1 | [1] | -1 | [1] | ||
Retirement benefit plans | -207 | [1] | -207 | [1] | ||
Total | ($208) | [1] | ($203) | ($208) | [1] | ($203) |
[1] | All amounts are net of income taxes. Amounts in parentheses indicate debits to accumulated other comprehensive loss. |
Note_7_Equity_Details_Reclassi
Note 7 - Equity (Details) - Reclassifications Out of Accumulated Other Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Cash flow hedges | ||||||
Interest rate contracts | $43 | $45 | $135 | $137 | ||
Income tax benefit | 18 | 6 | 145 | 106 | ||
Net of tax | 28 | 9 | 231 | 173 | ||
Retirement benefit plan amortization of | ||||||
Total before income tax | 46 | 15 | 387 | 289 | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Natural Gas Derivatives [Member] | ||||||
Cash flow hedges | ||||||
Natural gas contracts | -1 | |||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest Rate Contract [Member] | ||||||
Cash flow hedges | ||||||
Interest rate contracts | 1 | -3 | ||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Cash flow hedges | ||||||
Income tax benefit | 1 | |||||
Net of tax | -2 | |||||
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Cash flow hedges | ||||||
Income tax benefit | 3 | 7 | ||||
Net of tax | -1 | [1] | -8 | [1] | ||
Retirement benefit plan amortization of | ||||||
Actuarial losses | -6 | [1],[2] | -19 | [1],[2] | ||
Prior service credits | 2 | [1],[2] | 4 | [1],[2] | ||
Total before income tax | -4 | [1] | -15 | [1] | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Cash flow hedges | ||||||
Net of tax | ($1) | [1] | ($10) | [1] | ||
[1] | Amounts in parentheses indicate debits, or reductions, to profit/loss and credits to accumulated other comprehensive loss. Except for retirement benefit plan amounts, the profit/loss impacts are immediate. | |||||
[2] | Amortization of these accumulated other comprehensive loss components is included in the computation of net periodic benefit cost. See Note 5 for additional details about net periodic benefit cost. |
Note_8_NonWholly_Owned_Entitie2
Note 8 - Non-Wholly Owned Entities (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
South Star [Member] | South Star [Member] | South Star [Member] | South Star [Member] | South Star [Member] | South Star [Member] | South Star [Member] | Piedmont [Member] | |||||
AGL Resources Inc [Member] | Piedmont [Member] | Piedmont [Member] | Piedmont [Member] | |||||||||
Note 8 - Non-Wholly Owned Entities (Details) [Line Items] | ||||||||||||
Equity Method Investment, Ownership Percentage | 85.00% | 15.00% | ||||||||||
Increase in number of customers | 108,000 | |||||||||||
Proceeds from Contributions from Affiliates | $22 | $22.50 | ||||||||||
Payments to Acquire Property, Plant, and Equipment | 217 | 219 | 535 | 569 | 2 | 2 | ||||||
Payments of Ordinary Dividends, Noncontrolling Interest | $17 | $14 | $17 | $14 |
Note_8_NonWholly_Owned_Entitie3
Note 8 - Non-Wholly Owned Entities (Details) - Variable Interest Entities (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | |||
In Millions, unless otherwise specified | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Current assets | $2,091 | $2,668 | $2,135 | ||||
Goodwill and other intangible assets | 2,063 | 1,933 | 1,913 | ||||
Long-term assets and other deferred debits | 9,750 | 9,540 | 9,455 | ||||
Total assets | 13,904 | [1] | 14,141 | [2] | 13,503 | [1] | |
Current liabilities | 2,407 | 3,338 | 2,764 | ||||
Long-term liabilities and other deferred credits | 7,934 | 7,368 | 7,341 | ||||
Total Liabilities | 10,341 | 10,706 | 10,105 | ||||
Equity | 3,563 | 3,435 | 3,398 | 3,339 | |||
Total liabilities and equity | 13,904 | 14,141 | 13,503 | ||||
South Star [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Current assets | 192 | 201 | 152 | ||||
Goodwill and other intangible assets | 141 | ||||||
Long-term assets and other deferred debits | 11 | 10 | 10 | ||||
Total assets | 344 | 211 | 162 | ||||
Current liabilities | 73 | 62 | 42 | ||||
Total Liabilities | 73 | 62 | 42 | ||||
Equity | 271 | 149 | 120 | ||||
Total liabilities and equity | $344 | $211 | $162 | ||||
South Star Percentage To Consolidated [Member] | |||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||
Current assets | 9.00% | 8.00% | 7.00% | ||||
Goodwill and other intangible assets | 7.00% | ||||||
Total assets | 2.00% | 1.00% | 1.00% | ||||
Current liabilities | 3.00% | 2.00% | 2.00% | ||||
Total Liabilities | 1.00% | 1.00% | |||||
Equity | 8.00% | 4.00% | 4.00% | ||||
Total liabilities and equity | 2.00% | 1.00% | 1.00% | ||||
[1] | Identifiable assets are those used in each segment's operations. | ||||||
[2] | Identifiable assets are those assets used in each segment's operations. |
Note_8_NonWholly_Owned_Entitie4
Note 8 - Non-Wholly Owned Entities (Details) - SouthStar’s Revenues and Expenses (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Variable Interest Entity [Line Items] | ||||
Operating revenues | $675 | $614 | $3,288 | $2,704 |
Operating income | 82 | 54 | 503 | 407 |
Cost of goods sold | 229 | 215 | 1,609 | 1,174 |
Operation and maintenance | 226 | 212 | 718 | 675 |
Depreciation and amortization | 109 | 104 | 325 | 310 |
Taxes other than income taxes | 29 | 27 | 144 | 123 |
Total operating expenses | 593 | 560 | 2,796 | 2,297 |
South Star [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Operating revenues | 98 | 87 | 464 | 401 |
Operating income | 72 | 67 | ||
Cost of goods sold | 81 | 73 | 340 | 286 |
Operation and maintenance | 16 | 13 | 49 | 44 |
Depreciation and amortization | 1 | 1 | 2 | 2 |
Taxes other than income taxes | 1 | 2 | ||
Total operating expenses | $98 | $87 | $392 | $334 |
Note_8_NonWholly_Owned_Entitie5
Note 8 - Non-Wholly Owned Entities (Details) - Equity Method Investments (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Triton [Member] | Three Months Ended [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $3 | $2 |
Triton [Member] | Nine Months Ended [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | 7 | 8 |
Other Equity Investments [Member] | Nine Months Ended [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $1 | $2 |
Note_9_Commitments_Guarantees_2
Note 9 - Commitments, Guarantees and Contingencies (Details) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2004 | Dec. 21, 2012 | Dec. 31, 2011 | Dec. 31, 2003 | Nov. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | Jun. 07, 2013 | Feb. 01, 2012 | Dec. 31, 2011 | Dec. 31, 2011 |
ft3 | Interest Due [Member] | Adverse Consequences To Ratepayers [Member] | Illinois Commission [Member] | Illinois Commission [Member] | Illinois Commission [Member] | Illinois Commission [Member] | Illinois Commission [Member] | IAGO [Member] | CUB [Member] | |||
Note 9 - Commitments, Guarantees and Contingencies (Details) [Line Items] | ||||||||||||
Gas Balancing Volume Amount (in Cubic Feet) | 4,800,000,000 | |||||||||||
Prior Period Reclassification Adjustment | $25 | |||||||||||
Loss Contingency, Estimate of Possible Loss | 27 | 4 | 64 | 64 | ||||||||
Adjustment To Previously Recorded Pbr Reserve | 2 | |||||||||||
Loss Contingency, Damages Sought, Value | 6 | 2 | 85 | 255 | 305 | |||||||
Loss Contingency, Damages Awarded, Value | 72 | |||||||||||
Loss Contingency Accrual, Period Increase (Decrease) | 8 | |||||||||||
Loss Contingency Accrual | 72 | |||||||||||
Loss Contingency, Damages Paid, Value | $5 |
Note_9_Commitments_Guarantees_3
Note 9 - Commitments, Guarantees and Contingencies (Details) - Environmental Matters (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Engineering Estimates [Member] | Engineering Estimates [Member] | Engineering Estimates [Member] | Engineering Estimates [Member] | Engineering Estimates [Member] | Amount Recorded [Member] | Amount Recorded [Member] | Amount Recorded [Member] | Amount Recorded [Member] | Amount Recorded [Member] | Illinois Environmental [Member] | Illinois Environmental [Member] | Illinois Environmental [Member] | New Jersey Environmental [Member] | New Jersey Environmental [Member] | New Jersey Environmental [Member] | Georgia And Florida [Member] | Georgia And Florida [Member] | Georgia And Florida [Member] | North Carolina Environmental [Member] | Minimum [Member] | Maximum [Member] | |||
Illinois Environmental [Member] | New Jersey Environmental [Member] | Georgia And Florida [Member] | North Carolina Environmental [Member] | Illinois Environmental [Member] | New Jersey Environmental [Member] | Georgia And Florida [Member] | North Carolina Environmental [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||
Environmental Exit Cost [Line Items] | |||||||||||||||||||||||||
Probabilistic model cost estimates, low estimate | $208 | $146 | $42 | $396 | |||||||||||||||||||||
Probabilistic model cost estimates, high estimate | 458 | 240 | 100 | 798 | |||||||||||||||||||||
Amount recorded | 45 | 5 | 11 | 11 | 72 | 248 | 150 | 55 | 11 | 464 | |||||||||||||||
Expected costs over next twelve months | 48 | 57 | 61 | 34 | 5 | 2 | 7 | ||||||||||||||||||
Engineering estimates | $45 | $5 | $11 | $11 | $72 | $248 | $150 | $55 | $11 | $464 |
Note_10_Segment_Information_De
Note 10 - Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Note 10 - Segment Information (Details) [Line Items] | ||||
Number of Operating Segments | 5 | |||
Number of States in which Entity Operates | 7 | 7 | ||
Wholesale Services [Member] | ||||
Note 10 - Segment Information (Details) [Line Items] | ||||
Intercompany Revenues | $69 | $93 | $312 | $230 |
Note_10_Segment_Information_De1
Note 10 - Segment Information (Details) - Reconciliation of EBIT to Operating Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reconciliation of EBIT to Operating Income [Abstract] | ||||
Operating income | $82 | $54 | $503 | $407 |
Other income | 7 | 6 | 19 | 19 |
EBIT | 89 | 60 | 522 | 426 |
Interest expense | 43 | 45 | 135 | 137 |
Earnings before income taxes | 46 | 15 | 387 | 289 |
Income taxes | 18 | 6 | 145 | 106 |
Net income | $28 | $9 | $242 | $183 |
Note_10_Segment_Information_De2
Note 10 - Segment Information (Details) - Segment Reporting (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |||
In Millions, unless otherwise specified | ||||||
Note 10 - Segment Information (Details) - Segment Reporting [Line Items] | ||||||
Identifiable and Total Assets | $13,904 | [1] | $14,141 | [2] | $13,503 | [1] |
Goodwill | 1,883 | 1,837 | 1,817 | |||
Distribution Operations [Member] | ||||||
Note 10 - Segment Information (Details) - Segment Reporting [Line Items] | ||||||
Identifiable and Total Assets | 11,300 | [1] | 11,320 | [2] | 10,970 | [1] |
Goodwill | 1,640 | 1,640 | 1,591 | |||
Retail Operations [Member] | ||||||
Note 10 - Segment Information (Details) - Segment Reporting [Line Items] | ||||||
Identifiable and Total Assets | 652 | [1] | 511 | [2] | 472 | [1] |
Goodwill | 168 | 122 | 122 | |||
Wholesale Services [Member] | ||||||
Note 10 - Segment Information (Details) - Segment Reporting [Line Items] | ||||||
Identifiable and Total Assets | 930 | [1] | 1,218 | [2] | 970 | [1] |
Midstream Operations [Member] | ||||||
Note 10 - Segment Information (Details) - Segment Reporting [Line Items] | ||||||
Identifiable and Total Assets | 726 | [1] | 720 | [2] | 712 | [1] |
Goodwill | 14 | 14 | 14 | |||
Cargo Shipping [Member] | ||||||
Note 10 - Segment Information (Details) - Segment Reporting [Line Items] | ||||||
Identifiable and Total Assets | 464 | [1] | 464 | [2] | 482 | [1] |
Goodwill | 61 | 61 | 90 | |||
Other Segments [Member] | ||||||
Note 10 - Segment Information (Details) - Segment Reporting [Line Items] | ||||||
Identifiable and Total Assets | -168 | [1],[3] | -92 | [2],[3] | -103 | [1],[3] |
Goodwill | [3] | [3] | [3] | |||
[1] | Identifiable assets are those used in each segment's operations. | |||||
[2] | Identifiable assets are those assets used in each segment's operations. | |||||
[3] | The assets of our other segment consist primarily of cash and cash equivalents and PP&E, and reflect the effect of intercompany eliminations. |
Note_10_Segment_Information_De3
Note 10 - Segment Information (Details) - Intersegment Reporting (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | $675 | $614 | $3,288 | $2,704 | ||||||
Cost of goods sold | 229 | 215 | 1,609 | 1,174 | ||||||
Operation and maintenance | 226 | 212 | 718 | 675 | ||||||
Depreciation and amortization | 109 | 104 | 325 | 310 | ||||||
Taxes other than income taxes | 29 | 27 | 144 | 123 | ||||||
Nicor merger expenses | 2 | [1] | 15 | [1] | ||||||
Total operating expenses | 593 | 560 | 2,796 | 2,297 | ||||||
Gain on sale of Compass Energy | 11 | |||||||||
Operating income (loss) | 82 | 54 | 503 | 407 | ||||||
Other income | 7 | 6 | 19 | 19 | ||||||
EBIT | 89 | 60 | 522 | 426 | ||||||
Identifiable and total assets | 13,904 | [2] | 13,503 | [2] | 13,904 | [2] | 13,503 | [2] | 14,141 | [3] |
Goodwill | 1,883 | 1,817 | 1,883 | 1,817 | 1,837 | |||||
Capital expenditures | 217 | 219 | 535 | 569 | ||||||
External Parties [Member] | Distribution Operations [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | 420 | 405 | 2,299 | 1,848 | ||||||
External Parties [Member] | Retail Operations [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | 138 | 118 | 605 | 517 | ||||||
External Parties [Member] | Wholesale Services [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | 13 | -12 | 73 | 59 | ||||||
External Parties [Member] | Midstream Operations [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | 19 | 22 | 58 | 56 | ||||||
External Parties [Member] | Cargo Shipping [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | 89 | 83 | 264 | 247 | ||||||
External Parties [Member] | Other Segments [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | -4 | [4] | -2 | [4] | -11 | [4] | -23 | [4] | ||
External Parties [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | 675 | 614 | 3,288 | 2,704 | ||||||
Intersegment Eliminations [Member] | Distribution Operations [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | 36 | [5] | 37 | [5] | 134 | [5] | 124 | [5] | ||
Intersegment Eliminations [Member] | Retail Operations [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | [5] | [5] | [5] | [5] | ||||||
Intersegment Eliminations [Member] | Wholesale Services [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | [5] | [5] | [5] | [5] | ||||||
Intersegment Eliminations [Member] | Midstream Operations [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | [5] | [5] | [5] | [5] | ||||||
Intersegment Eliminations [Member] | Cargo Shipping [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | [5] | [5] | [5] | [5] | ||||||
Intersegment Eliminations [Member] | Other Segments [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | -36 | [4],[5] | -37 | [4],[5] | -134 | [4],[5] | -124 | [4],[5] | ||
Intersegment Eliminations [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | [5] | [5] | [5] | [5] | ||||||
Distribution Operations [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | 456 | 442 | 2,433 | 1,972 | ||||||
Cost of goods sold | 111 | 107 | 1,142 | 767 | ||||||
Operation and maintenance | 150 | 148 | 494 | 473 | ||||||
Depreciation and amortization | 91 | 88 | 271 | 262 | ||||||
Taxes other than income taxes | 22 | 21 | 124 | 103 | ||||||
Nicor merger expenses | [1] | [1] | ||||||||
Total operating expenses | 374 | 364 | 2,031 | 1,605 | ||||||
Operating income (loss) | 82 | 78 | 402 | 367 | ||||||
Other income | 4 | 2 | 11 | 7 | ||||||
EBIT | 86 | 80 | 413 | 374 | ||||||
Identifiable and total assets | 11,300 | [2] | 10,970 | [2] | 11,300 | [2] | 10,970 | [2] | 11,320 | [3] |
Goodwill | 1,640 | 1,591 | 1,640 | 1,591 | 1,640 | |||||
Capital expenditures | 200 | 189 | 495 | 457 | ||||||
Retail Operations [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | 138 | 118 | 605 | 517 | ||||||
Cost of goods sold | 92 | 83 | 402 | 342 | ||||||
Operation and maintenance | 31 | 26 | 94 | 83 | ||||||
Depreciation and amortization | 6 | 3 | 16 | 10 | ||||||
Taxes other than income taxes | 1 | 1 | 3 | 3 | ||||||
Nicor merger expenses | [1] | [1] | ||||||||
Total operating expenses | 130 | 113 | 515 | 438 | ||||||
Operating income (loss) | 8 | 5 | 90 | 79 | ||||||
EBIT | 8 | 5 | 90 | 79 | ||||||
Identifiable and total assets | 652 | [2] | 472 | [2] | 652 | [2] | 472 | [2] | 511 | [3] |
Goodwill | 168 | 122 | 168 | 122 | 122 | |||||
Capital expenditures | 3 | 3 | 7 | 7 | ||||||
Wholesale Services [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | 13 | -12 | 73 | 59 | ||||||
Cost of goods sold | 1 | 21 | 34 | |||||||
Operation and maintenance | 13 | 11 | 36 | 35 | ||||||
Depreciation and amortization | 1 | 1 | ||||||||
Taxes other than income taxes | 1 | 1 | 2 | 3 | ||||||
Nicor merger expenses | [1] | [1] | ||||||||
Total operating expenses | 15 | 12 | 60 | 73 | ||||||
Gain on sale of Compass Energy | 11 | |||||||||
Operating income (loss) | -2 | -24 | 24 | -14 | ||||||
Other income | 1 | 1 | ||||||||
EBIT | -2 | -23 | 24 | -13 | ||||||
Identifiable and total assets | 930 | [2] | 970 | [2] | 930 | [2] | 970 | [2] | 1,218 | [3] |
Capital expenditures | 1 | 1 | ||||||||
Midstream Operations [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | 19 | 22 | 58 | 56 | ||||||
Cost of goods sold | 9 | 12 | 25 | 24 | ||||||
Operation and maintenance | 5 | 4 | 17 | 13 | ||||||
Depreciation and amortization | 5 | 4 | 13 | 10 | ||||||
Taxes other than income taxes | 1 | 1 | 4 | 4 | ||||||
Nicor merger expenses | [1] | [1] | ||||||||
Total operating expenses | 20 | 21 | 59 | 51 | ||||||
Operating income (loss) | -1 | 1 | -1 | 5 | ||||||
Other income | 2 | 1 | ||||||||
EBIT | -1 | 1 | 1 | 6 | ||||||
Identifiable and total assets | 726 | [2] | 712 | [2] | 726 | [2] | 712 | [2] | 720 | [3] |
Goodwill | 14 | 14 | 14 | 14 | 14 | |||||
Capital expenditures | 3 | 18 | 11 | 77 | ||||||
Cargo Shipping [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | 89 | 83 | 264 | 247 | ||||||
Cost of goods sold | 55 | 51 | 162 | 152 | ||||||
Operation and maintenance | 29 | 29 | 87 | 83 | ||||||
Depreciation and amortization | 4 | 5 | 14 | 17 | ||||||
Taxes other than income taxes | 2 | 1 | 5 | 4 | ||||||
Nicor merger expenses | [1] | [1] | ||||||||
Total operating expenses | 90 | 86 | 268 | 256 | ||||||
Operating income (loss) | -1 | -3 | -4 | -9 | ||||||
Other income | 3 | 2 | 7 | 8 | ||||||
EBIT | 2 | -1 | 3 | -1 | ||||||
Identifiable and total assets | 464 | [2] | 482 | [2] | 464 | [2] | 482 | [2] | 464 | [3] |
Goodwill | 61 | 90 | 61 | 90 | 61 | |||||
Capital expenditures | 6 | 1 | 9 | 2 | ||||||
Other Segments [Member] | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||
Operating revenues | -40 | [4] | -39 | [4] | -145 | [4] | -147 | [4] | ||
Cost of goods sold | -39 | [4] | -38 | [4] | -143 | [4] | -145 | [4] | ||
Operation and maintenance | -2 | [4] | -6 | [4] | -10 | [4] | -12 | [4] | ||
Depreciation and amortization | 3 | [4] | 4 | [4] | 10 | [4] | 10 | [4] | ||
Taxes other than income taxes | 2 | [4] | 2 | [4] | 6 | [4] | 6 | [4] | ||
Nicor merger expenses | 2 | [1],[4] | 15 | [1],[4] | ||||||
Total operating expenses | -36 | [4] | -36 | [4] | -137 | [4] | -126 | [4] | ||
Gain on sale of Compass Energy | [4] | |||||||||
Operating income (loss) | -4 | [4] | -3 | [4] | -8 | [4] | -21 | [4] | ||
Other income | [4] | 1 | [4] | -1 | [4] | 2 | [4] | |||
EBIT | -4 | [4] | -2 | [4] | -9 | [4] | -19 | [4] | ||
Identifiable and total assets | -168 | [2],[4] | -103 | [2],[4] | -168 | [2],[4] | -103 | [2],[4] | -92 | [3],[4] |
Goodwill | [4] | [4] | [4] | [4] | [4] | |||||
Capital expenditures | $5 | [4] | $7 | [4] | $13 | [4] | $25 | [4] | ||
[1] | Transaction expenses associated with the Nicor merger are shown separately to better compare year-over-year results. | |||||||||
[2] | Identifiable assets are those used in each segment's operations. | |||||||||
[3] | Identifiable assets are those assets used in each segment's operations. | |||||||||
[4] | The assets of our other segment consist primarily of cash and cash equivalents and PP&E, and reflect the effect of intercompany eliminations. | |||||||||
[5] | Intercompany revenues - wholesale services records its energy marketing and risk management revenues on a net basis and its total operating revenues include intercompany revenues of $69 million and $312 million for the three and nine months ended September 30, 2013, respectively, and $93 million and $230 million for the three and nine months ended September 30, 2012, respectively. |