Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 04, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | AGL RESOURCES INC. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 119,656,937 | ||
Entity Public Float | $6,574,107,387 | ||
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 | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Position (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Current assets | ||||
Cash and cash equivalents | $31 | $81 | ||
Short-term investments | 8 | 49 | ||
Receivables | ||||
Energy marketing | 779 | 786 | ||
Natural gas | 391 | 385 | ||
Unbilled revenues | 256 | 268 | ||
Other | 150 | 83 | ||
Less allowance for uncollectible accounts | 35 | 29 | ||
Total receivables, net | 1,541 | 1,493 | ||
Inventories | ||||
Natural gas | 694 | 637 | ||
Other | 22 | 21 | ||
Total inventories | 716 | 658 | ||
Derivative instruments | 245 | 99 | ||
Prepaid expenses | 223 | 63 | ||
Regulatory assets | 83 | 114 | ||
Assets held for sale | 283 | |||
Other | 43 | 55 | ||
Total current assets | 2,890 | 2,895 | ||
Long-term assets and other deferred debits | ||||
Property, plant and equipment | 11,552 | 10,938 | ||
Less accumulated depreciation | 2,462 | 2,295 | ||
Property, plant and equipment, net | 9,090 | 8,643 | ||
Goodwill | 1,827 | 1,827 | ||
Regulatory assets | 631 | 705 | ||
Intangible assets | 125 | 145 | ||
Long-term investments | 105 | 113 | ||
Pension assets | 97 | 117 | ||
Derivative instruments | 42 | 20 | ||
Other | 102 | 85 | ||
Total long-term assets and other deferred debits | 12,019 | 11,655 | ||
Total assets | 14,909 | 14,550 | ||
Current liabilities | ||||
Short-term debt | 1,175 | 1,171 | ||
Energy marketing trade payables | 777 | 671 | ||
Other accounts payable – trade | 312 | 421 | ||
Current portion of long-term debt | 200 | |||
Customer deposits and credit balances | 125 | 136 | ||
Regulatory liabilities | 112 | 183 | ||
Accrued wages and salaries | 97 | 66 | ||
Derivative instruments | 88 | 75 | ||
Accrued environmental remediation liabilities | 87 | 70 | ||
Accrued taxes | 79 | 85 | ||
Accrued interest | 53 | 52 | ||
Liabilities held for sale | 40 | |||
Other | 114 | 148 | ||
Total current liabilities | 3,219 | 3,118 | ||
Long-term liabilities and other deferred credits | ||||
Long-term debt | 3,602 | 3,813 | ||
Accumulated deferred income taxes | 1,724 | 1,628 | ||
Regulatory liabilities | 1,601 | 1,518 | ||
Accrued pension and retiree welfare benefits | 525 | 404 | ||
Accrued environmental remediation liabilities | 327 | 377 | ||
Other | 83 | 79 | ||
Total long-term liabilities and other deferred credits | 7,862 | 7,819 | ||
Total liabilities and other deferred credits | 11,081 | 10,937 | ||
Commitments, guarantees and contingencies (see Note 11) | ||||
Common shareholders’ equity | ||||
Common stock, $5 par value; 750,000,000 shares authorized; outstanding: 119,647,149 shares at December 31, 2014 and 118,888,876 shares at December 31, 2013 | 599 | 595 | ||
Additional paid-in capital | 2,087 | 2,054 | ||
Retained earnings | 1,312 | 1,063 | ||
Accumulated other comprehensive loss | -206 | [1] | -136 | [1] |
Treasury shares, at cost: 216,523 shares at December 31, 2014 and 2013 | -8 | -8 | ||
Total common shareholders’ equity | 3,784 | 3,568 | ||
Noncontrolling interest | 44 | 45 | ||
Total equity | 3,828 | 3,613 | ||
Total liabilities and equity | $14,909 | $14,550 | ||
[1] | All amounts are net of income taxes. Amounts in parentheses indicate debits to accumulated other comprehensive loss. |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Position (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Common stock, par value (in Dollars per share) | $5 | $5 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares outstanding | 119,647,149 | 118,888,876 |
Treasury shares, shares | 216,523 | 216,523 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Operating revenues (includes revenue taxes of $133 for 2014, $112 for 2013 and $86 for 2012) | $5,385 | $4,209 | $3,562 | |||
Operating expenses | ||||||
Cost of goods sold | 2,765 | 2,110 | 1,583 | |||
Operation and maintenance | 939 | 887 | 816 | |||
Depreciation and amortization | 380 | 397 | 394 | |||
Taxes other than income taxes | 208 | 187 | 159 | |||
Nicor merger expenses | 20 | [1] | ||||
Total operating expenses | 4,292 | 3,581 | 2,972 | |||
Gain on disposition of assets | 2 | 11 | ||||
Operating income | 1,095 | 639 | 590 | |||
Other income, net | 14 | 16 | 24 | |||
Interest expense, net | -179 | -170 | -183 | |||
Income before income taxes | 930 | 485 | 431 | |||
Income tax expense | 350 | 177 | 157 | |||
Income from continuing operations | 580 | 308 | 274 | |||
(Loss) income from discontinued operations, net of tax | -80 | 5 | 1 | |||
Net income | 500 | 313 | 275 | |||
Less net income attributable to the noncontrolling interest | 18 | 18 | 15 | |||
Net income attributable to AGL Resources Inc. | 482 | 295 | 260 | |||
Amounts attributable to AGL Resources Inc. | ||||||
Income from continuing operations attributable to AGL Resources Inc. | $562 | $290 | $259 | |||
Basic earnings (loss) per common share | ||||||
Continuing operations (in Dollars per share) | $4.73 | $2.46 | $2.21 | |||
Discontinued operations (in Dollars per share) | ($0.67) | $0.04 | $0.01 | |||
Basic earnings per common share attributable to AGL Resources Inc. common shareholders (in Dollars per share) | $4.06 | $2.50 | $2.22 | |||
Diluted earnings (loss) per common share | ||||||
Continuing operations (in Dollars per share) | $4.71 | [2] | $2.45 | [2] | $2.20 | [2] |
Discontinued operations (in Dollars per share) | ($0.67) | [2] | $0.04 | [2] | $0.01 | [2] |
Diluted earnings per common share attributable to AGL Resources Inc. common shareholders (in Dollars per share) | $4.04 | $2.49 | $2.21 | |||
Cash dividends declared per common share (in Dollars per share) | $1.96 | $1.88 | $1.74 | |||
Weighted average number of common shares outstanding | ||||||
Basic (in Shares) | 118.8 | [3] | 117.9 | [3] | 117 | [3] |
Diluted (in Shares) | 119.2 | [2] | 118.3 | [2] | 117.5 | [2] |
[1] | Transaction expenses associated with the Nicor merger are shown separately to better compare year-over-year results. | |||||
[2] | There were no outstanding stock options excluded from the computation of diluted earnings per common share attributable to AGL Resources Inc. for any of the periods presented because their effect would have been anti-dilutive, as the exercise prices were greater than the average market price. | |||||
[3] | Daily weighted average shares outstanding. |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Parentheticals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating revenues, revenue taxes | $133 | $112 | $86 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $500 | $313 | $275 |
Retirement benefit plans, net of tax | |||
Actuarial (loss) gain arising during the period (net of income tax of $48, $46 and $16) | -71 | 66 | -17 |
Prior service cost arising during the period (net of income tax of $1) | 1 | ||
Reclassification of actuarial loss to net benefit cost (net of income tax of $6, $10 and $9) | 9 | 15 | 13 |
Reclassification of prior service cost to net benefit cost (net of income tax of $1, $2 and $2) | -1 | -3 | -2 |
Retirement benefit plans, net | -63 | 78 | -5 |
Cash flow hedges, net of tax | |||
Net derivative instrument (loss) gain arising during the period (net of income tax of $2, $1 and $-) | -6 | 1 | -2 |
Reclassification of realized derivative (gain) loss to net income (net of income tax of $2, $1 and $3 | -3 | 3 | 6 |
Cash flow hedges, net | -9 | 4 | 4 |
Other comprehensive income (loss), net of tax | -72 | 82 | -1 |
Comprehensive income | 428 | 395 | 274 |
Less comprehensive income attributable to noncontrolling interest | 16 | 18 | 15 |
Comprehensive income attributable to AGL Resources Inc. | $412 | $377 | $259 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parentheticals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Actuarial loss arising during the period, income tax | $48 | $46 | $16 |
Prior service costs arising during the period, income tax | 1 | ||
Reclassification of losses to net benefit cost, income tax | 6 | 10 | 9 |
Reclassification of prior service costs to net benefit cost, income tax | 1 | 2 | 2 |
Net derivative instrument gains (losses) arising during the period, income tax | 2 | 1 | |
Reclassification of realized derivative losses to net income, income tax | $2 | $1 | $3 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (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 | |||||||
As of December 31, 2011 at Dec. 31, 2011 | $586 | $1,989 | $933 | ($217) | ($7) | $21 | $3,305 |
As of December 31, 2011 (in Shares) at Dec. 31, 2011 | 117,000,000 | ||||||
Net income | 260 | 15 | 275 | ||||
Other comprehensive income | -1 | -1 | |||||
Dividends on common stock | -203 | -203 | |||||
Distributions to noncontrolling interest | -14 | -14 | |||||
Stock granted, share-based compensation, net of forfeitures | -10 | -10 | |||||
Stock issued, dividend reinvestment plan | 1 | 9 | 10 | ||||
Stock issued, dividend reinvestment plan (in Shares) | 300,000 | ||||||
Stock issued, share-based compensation, net of forfeitures | 3 | 19 | -1 | 21 | |||
Stock issued, share-based compensation, net of forfeitures (in Shares) | 600,000 | ||||||
Stock-based compensation expense, net of tax | 8 | 8 | |||||
Balance at Dec. 31, 2012 | 590 | 2,015 | 990 | -218 | -8 | 22 | 3,391 |
Balance, shares (in Shares) at Dec. 31, 2012 | 117,900,000 | ||||||
Net income | 295 | 18 | 313 | ||||
Other comprehensive income | 82 | 82 | |||||
Dividends on common stock | -222 | -222 | |||||
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 | 10 | 11 | ||||
Stock issued, dividend reinvestment plan (in Shares) | 300,000 | ||||||
Stock issued, share-based compensation, net of forfeitures | 4 | 24 | 28 | ||||
Stock issued, share-based compensation, net of forfeitures (in Shares) | 700,000 | ||||||
Stock-based compensation expense, net of tax | 11 | 11 | |||||
Balance at Dec. 31, 2013 | 595 | 2,054 | 1,063 | -136 | -8 | 45 | 3,613 |
Balance, shares (in Shares) at Dec. 31, 2013 | 118,900,000 | 118,888,876 | |||||
Net income | 482 | 18 | 500 | ||||
Other comprehensive income | -70 | -2 | -72 | ||||
Dividends on common stock | -233 | -233 | |||||
Distributions to noncontrolling interest | -17 | -17 | |||||
Stock granted, share-based compensation, net of forfeitures | -11 | -11 | |||||
Stock issued, dividend reinvestment plan | 1 | 11 | 12 | ||||
Stock issued, dividend reinvestment plan (in Shares) | 200,000 | ||||||
Stock issued, share-based compensation, net of forfeitures | 3 | 19 | 22 | ||||
Stock issued, share-based compensation, net of forfeitures (in Shares) | 500,000 | ||||||
Stock-based compensation expense, net of tax | 14 | 14 | |||||
Balance at Dec. 31, 2014 | $599 | $2,087 | $1,312 | ($206) | ($8) | $44 | $3,828 |
Balance, shares (in Shares) at Dec. 31, 2014 | 119,600,000 | 119,647,149 |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Parentheticals) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Dividends on common stock, per share | $1.96 | $1.88 | $1.74 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities | |||
Net income | $500,000,000 | $313,000,000 | $275,000,000 |
Adjustments to reconcile net income to net cash flow provided by operating activities | |||
Depreciation and amortization | 380,000,000 | 397,000,000 | 394,000,000 |
Deferred income taxes | 201,000,000 | -16,000,000 | 157,000,000 |
Change in derivative instrument assets and liabilities | -155,000,000 | 66,000,000 | 72,000,000 |
Gain on disposition of assets | -2,000,000 | -11,000,000 | |
Loss (income) from discontinued operations, net of tax | 80,000,000 | -5,000,000 | -1,000,000 |
Changes in certain assets and liabilities | |||
Energy marketing receivables and trade payables, net | 113,000,000 | -54,000,000 | -44,000,000 |
Accrued expenses | 32,000,000 | 39,000,000 | -28,000,000 |
Prepaid and miscellaneous taxes | -244,000,000 | 103,000,000 | 41,000,000 |
Trade payables, other than energy marketing | -81,000,000 | 89,000,000 | 49,000,000 |
Accrued/deferred natural gas costs | -67,000,000 | 2,000,000 | 37,000,000 |
Inventories | -58,000,000 | 41,000,000 | 43,000,000 |
Receivables, other than energy marketing | -55,000,000 | -74,000,000 | 12,000,000 |
Other, net | 21,000,000 | 70,000,000 | -18,000,000 |
Net cash flow (used in) provided by operating activities of discontinued operations | -10,000,000 | 11,000,000 | 14,000,000 |
Net cash flow provided by operating activities | 655,000,000 | 971,000,000 | 1,003,000,000 |
Cash flows from investing activities | |||
Expenditures for property, plant and equipment | -769,000,000 | -731,000,000 | -775,000,000 |
Dispositions of assets | 230,000,000 | 12,000,000 | |
Acquisitions of assets | -154,000,000 | ||
Other, net | 47,000,000 | 8,000,000 | -6,000,000 |
Net cash flow used in investing activities of discontinued operations | -13,000,000 | -11,000,000 | -5,000,000 |
Net cash flow used in investing activities | -505,000,000 | -876,000,000 | -786,000,000 |
Cash flows from financing activities | |||
Benefit, dividend reinvestment and stock purchase plan | 22,000,000 | 33,000,000 | 21,000,000 |
Net issuances (repayments) of commercial paper | 4,000,000 | -206,000,000 | 56,000,000 |
Dividends paid on common shares | -233,000,000 | -222,000,000 | -203,000,000 |
Distribution to noncontrolling interest | -17,000,000 | -17,000,000 | -14,000,000 |
Issuance of senior notes | 0 | 494,000,000 | |
Contribution from noncontrolling interest | 22,000,000 | ||
Payment of senior notes | -225,000,000 | ||
Proceeds from termination of interest rate swap | 17,000,000 | ||
Payment of medium-term notes | -15,000,000 | ||
Other, net | -17,000,000 | ||
Net cash flow used in financing activities | -224,000,000 | -121,000,000 | -155,000,000 |
Net (decrease) increase in cash and cash equivalents - continuing operations | -51,000,000 | -26,000,000 | 53,000,000 |
Net (decrease) increase in cash and cash equivalents - discontinued operations | -23,000,000 | 9,000,000 | |
Cash and cash equivalents (including held for sale) at beginning of period | 105,000,000 | 131,000,000 | 69,000,000 |
Cash and cash equivalents (including held for sale) at end of period | 31,000,000 | 105,000,000 | 131,000,000 |
Less cash and cash equivalents held for sale at end of period | 24,000,000 | 23,000,000 | |
Cash and cash equivalents (excluding held for sale) at end of period | 31,000,000 | 81,000,000 | 108,000,000 |
Cash paid (received) during the period for | |||
Interest | 187,000,000 | 175,000,000 | 174,000,000 |
Income taxes | 422,000,000 | 120,000,000 | -37,000,000 |
Non cash financing transaction | |||
Refinancing of gas facility revenue bonds | $200,000,000 |
Note_1_Organization_and_Basis_
Note 1 - Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2014 | |
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 of 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. | |
Basis of Presentation | |
Our consolidated financial statements as of and for the period ended December 31, 2014 are prepared in accordance with GAAP and under the rules of the SEC. Our consolidated financial statements include our accounts, the accounts of our wholly owned subsidiaries, the accounts of our majority owned or otherwise controlled subsidiaries and the accounts of our variable interest entity, SouthStar, for which we are the primary beneficiary. For unconsolidated entities that we do not control, but exercise significant influence over, we primarily use the equity method of accounting and our proportionate share of income or loss is recorded on the Consolidated Statements of Income. See Note 10 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. | |
In November 2014, we filed a 2013 Form 10-K/A to revise our financial statements and other affected disclosures for items related to the recognition of revenues for certain of our regulatory infrastructure programs and the amortization of our intangible assets as filed in our 2013 Form 10-K. Our prior period financial statements reflect the revised amounts reported in our 2013 Form 10-K/A. | |
In September 2014, we closed on the sale of Tropical Shipping, which historically operated within our cargo shipping segment. The assets and liabilities of these businesses are classified as held for sale on the Consolidated Statements of Financial Position, and the financial results of these businesses are reflected as discontinued operations on the Consolidated Statements of Income. Amounts shown in the following notes, unless otherwise indicated, exclude assets held for sale and discontinued operations. Cargo shipping also included our investment in Triton, which was not part of the sale and has been reclassified into our “other” non-reportable segments. See Note 14 for additional information. | |
Certain amounts from prior periods have been reclassified to conform to the current-period presentation. The reclassifications had no material impact on our prior-period balances. |
Note_2_Significant_Accounting_
Note 2 - Significant Accounting Policies and Methods of Application | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||
Significant Accounting Policies [Text Block] | Note 2 - Significant Accounting Policies and Methods of Application | ||||||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||||||
Our cash and cash equivalents primarily consist 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 December 31, 2013, $24 million of cash and cash equivalents within our Consolidated Statements of Financial Position held by Tropical Shipping were excluded from cash and cash equivalents and included in assets held for sale. Prior to closing the sale, cash and short-term investments that were held in off-shore accounts were repatriated. See Note 12 and Note 14 for additional information on our income taxes on the cumulative foreign earnings for which no tax liability had previously been recorded. | |||||||||||||||||||||||||||||
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 that enable our wholesale services segment to net receivables and payables by counterparty upon settlement. 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 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 December 31, 2014 and 2013, 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 condition. If such collateral were not posted, wholesale services’ ability to continue transacting business with these counterparties would be negatively impacted. | |||||||||||||||||||||||||||||
Wholesale services has a concentration of credit risk for services it provides to marketers and to utility and industrial counterparties. This credit risk is generally concentrated in 20 of its counterparties and is measured by 30-day receivable exposure plus forward exposure. We evaluate the credit risk of our counterparties using an S&P equivalent credit rating, which is determined by a process of converting the lower of the S&P or Moody’s rating to an internal rating ranging from 9 to 1, with 9 being equivalent to AAA/Aaa by S&P and Moody’s and 1 being equivalent to D/Default by S&P and Moody’s. A counterparty that does not have an external rating is assigned an internal rating based on the strength of its financial ratios. As of December 31, 2014, our top 20 counterparties represented 55%, or $367 million, of our total counterparty exposure and had a weighted average S&P equivalent rating of A-. | |||||||||||||||||||||||||||||
We have established credit policies to determine and monitor the creditworthiness of counterparties, including requirements for posting of collateral or other credit security, as well as the quality of pledged collateral. Collateral or credit security is most often in the form of cash or letters of credit from an investment-grade financial institution, but may also include cash or U.S. government securities held by a trustee. When wholesale services is engaged in more than one outstanding derivative transaction with the same counterparty and it also has a legally enforceable netting agreement with that counterparty, the “net” mark-to-market exposure represents the netting of the positive and negative exposures with that counterparty combined with a reasonable measure of our credit risk. Wholesale services also uses other netting agreements with certain counterparties with whom it conducts significant transactions. | |||||||||||||||||||||||||||||
Receivables and Allowance for Uncollectible Accounts | |||||||||||||||||||||||||||||
Our other trade receivables consist primarily of natural gas sales and transportation services billed to residential, commercial, industrial and other customers. We bill customers monthly, and our accounts receivable are due within 30 days. For the majority of our receivables, we establish an allowance for doubtful accounts based on our collection experience and other factors. For our remaining receivables, if we are aware of a specific customer’s inability or reluctance to pay, we record an allowance for doubtful accounts against amounts due to reduce the receivable balance to the amount we reasonably expect to collect. If circumstances change, our estimate of the recoverability of accounts receivable could change as well. Circumstances that could affect our estimates include, but are not limited to, customer credit issues, customer deposits and general economic conditions. Customers’ accounts are written off once we deem them to be uncollectible. | |||||||||||||||||||||||||||||
Nicor GasCredit risk exposure at Nicor Gas is mitigated by a bad debt rider approved by the Illinois Commission. The bad debt rider provides for the recovery from (or refund to) customers of the difference between Nicor Gas’ actual bad debt experience on an annual basis and the benchmark bad debt expense used to establish its base rates for the respective year. See Note 3 for additional information on the bad debt rider. | |||||||||||||||||||||||||||||
Atlanta Gas Light Concentration of credit risk occurs at Atlanta Gas Light for amounts billed for services and other costs to its customers, which consist of 12 Marketers in Georgia. The credit risk exposure to Marketers varies seasonally, with the lowest exposure in the nonpeak summer months and the highest exposure in the peak winter months. Marketers are responsible for the retail sale of natural gas to end-use customers in Georgia. The functions of the retail sale of gas include the purchase and sale of natural gas, customer service, billings and collections. We obtain credit security support in an amount equal to no less than two times a Marketer’s highest month’s estimated bill from Atlanta Gas Light. | |||||||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||||||
For our regulated utilities, except Nicor Gas, our natural 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 11 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 the year that are restored prior to year end are charged to cost of goods sold at the estimated annual replacement cost. Inventory decrements that are not restored prior to year end are charged to cost of goods sold at the actual LIFO cost of the layers liquidated. Since the cost of gas, including inventory costs, is charged to customers without markup, subject to Illinois Commission review, LIFO liquidations have no impact on net income. At December 31, 2014, the Nicor Gas LIFO inventory balance was $141 million. Based on the average cost of gas purchased in December 2014, the estimated replacement cost of Nicor Gas’ inventory at December 31, 2014 was $346 million, which exceeded the LIFO cost by $205 million. During 2014, we liquidated 6.8 Bcf of our LIFO-based inventory at an average cost per million cubic feet (Mcf) of $3.98. For gas purchased in 2014, our average cost per Mcf was $1.33 higher than the average LIFO liquidation rate. Applying LIFO cost in valuing the liquidation, as opposed to using the average gas purchase cost, had the effect of decreasing the cost of gas in 2014 by $9 million. | |||||||||||||||||||||||||||||
Our retail operations, wholesale services and midstream operations segments carry inventory at the lower of cost or market value, where cost is determined on a WACOG basis. 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. As indicated in the following LOCOM table, for any declines considered to be other than temporary, we record these pre-tax adjustments to our Consolidated Statements of Income to reduce the weighted average cost of the natural gas inventory to market value. | |||||||||||||||||||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Retail operations | $ | 4 | $ | 1 | $ | 3 | |||||||||||||||||||||||
Wholesale services (1) | 73 | 8 | 19 | ||||||||||||||||||||||||||
Midstream operations | - | - | 1 | ||||||||||||||||||||||||||
Total | $ | 77 | $ | 9 | $ | 23 | |||||||||||||||||||||||
-1 | The significant in 2014 was due to a significant decline in natural gas prices in December 2014. | ||||||||||||||||||||||||||||
Additionally, we have $17 million of inventory at wholesale services that is currently inaccessible due to operational issues at a third-party storage facility. The owner of the storage facility is working to resolve these issues. While we expect this inventory to be fully recovered, the timing of withdrawal of this gas may be impacted by the operational issues. | |||||||||||||||||||||||||||||
At midstream operations, mechanical integrity tests and engineering studies are periodically performed on the storage facilities in accordance with certain state regulatory requirements. During 2014, an engineering study and mechanical integrity tests were performed at one of our storage facilities, identifying a lower amount of working gas capacity that is the result of naturally occurring shrinkage of the storage caverns. Further, based on the lower capacity and an analysis of the volume of natural gas stored in the facility, we recorded natural gas costs to true-up the amount of retained fuel at this facility in the amount of $10 million. Our other storage facilities at midstream operations were not impacted. | |||||||||||||||||||||||||||||
Regulated Operations | |||||||||||||||||||||||||||||
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 that would otherwise be charged to expense in the current period are capitalized as regulatory assets when it is probable that such costs 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 and regulatory liabilities are amortized into our Consolidated Statements of Income over the period authorized by the regulatory commissions. | |||||||||||||||||||||||||||||
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. See Note 4 for additional fair value disclosures. | |||||||||||||||||||||||||||||
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. The guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy defined by the guidance are as follows: | |||||||||||||||||||||||||||||
Level 1 Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Our Level 1 items consist of exchange-traded derivatives, money market funds and certain retirement plan assets. | |||||||||||||||||||||||||||||
Level 2 Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial and commodity instruments that are valued using valuation methodologies. These methodologies are primarily industry-standard methodologies that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. We obtain market price data from multiple sources in order to value some of our Level 2 transactions and this data is representative of transactions that occurred in the marketplace. Instruments in this category include shorter tenor exchange-traded and non-exchange-traded derivatives such as OTC forwards and options and certain retirement plan assets. | |||||||||||||||||||||||||||||
Level 3 Pricing inputs include significant unobservable inputs that may be used with internally developed methodologies to determine management’s best estimate of fair value from the perspective of market participants. Level 3 instruments include those that may be more structured or otherwise tailored to customers’ needs. Our Level 3 assets, liabilities and any applicable transfers are primarily related to our pension and welfare benefit plan assets as described in Note 4 and Note 6. We determine both transfers into and out of Level 3 using values at the end of the interim period in which the transfer occurred. | |||||||||||||||||||||||||||||
The authoritative guidance related to fair value measurements and disclosures also includes a two-step process to determine whether the market for a financial asset is inactive or a transaction is distressed. Currently, this authoritative guidance does not affect us, as our derivative instruments are traded in active markets. | |||||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||
Our policy is to classify derivative cash flows and gains and losses within the same financial statement category as the hedged item, rather than by the nature of the instrument. | |||||||||||||||||||||||||||||
Fair Value Hierarchy Derivative assets and liabilities are classified in their entirety into the previously described fair value hierarchy levels based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The measurement of fair value incorporates various factors required under the guidance. These factors include not only the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests), but also the impact of our own nonperformance risk on our liabilities. To mitigate the risk that a counterparty to a derivative instrument defaults on settlement or otherwise fails to perform under contractual terms, we have established procedures to monitor the creditworthiness of counterparties, seek guarantees or collateral backup in the form of cash or letters of credit and, in most instances, enter into netting arrangements. See Note 4 for additional fair value disclosures. | |||||||||||||||||||||||||||||
Netting of Cash Collateral and Derivative Assets and Liabilities under Master Netting Arrangements We maintain accounts with brokers to facilitate financial derivative transactions in support of our energy marketing and risk management activities. Based on the value of our positions in these accounts and the associated margin requirements, we may be required to deposit cash into these broker accounts. | |||||||||||||||||||||||||||||
We have elected to net derivative assets and liabilities under master netting arrangements on our Consolidated Statements of Financial Position. With that election, we are also required to offset cash collateral held in our broker accounts with the associated net fair value of the instruments in the accounts. See Note 4 for additional information about our cash collateral. | |||||||||||||||||||||||||||||
Natural Gas and Weather Derivative Instruments The fair value of the natural gas derivative instruments that we use to manage exposures arising from changing natural gas prices and weather risk 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 5 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. As previously noted, such derivative instruments are reported at fair value each reporting period in our Consolidated Statements of Financial Position. 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. | |||||||||||||||||||||||||||||
For our Illinois weather risk associated with Nicor Gas, we have a corporate weather hedging program that utilizes weather derivatives to reduce the risk of lower operating margins potentially resulting from significantly warmer-than-normal weather in Illinois and is carried at intrinsic value. We will continue to use available methods to mitigate our exposure to weather in Illinois. | |||||||||||||||||||||||||||||
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, which occurs 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 our Consolidated Statements of Income in the period in which it occurs. We have not designated the remainder of our derivative instruments as hedges for accounting purposes and, accordingly, we record changes in the fair values of such instruments within cost of goods sold in our Consolidated Statements of Income 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 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 protect the operating margin we will ultimately 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 protect 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 in our Consolidated Statements of Financial Position, with changes in fair value recorded in operating revenues in our Consolidated Statements of Income 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 we recognize these demand charges and payments in our Consolidated Statements of Income in the period they are incurred. This difference in accounting methods can result in volatility in our reported earnings, even though the economic margin is substantially unchanged from the dates the transactions were consummated. | |||||||||||||||||||||||||||||
DebtWe estimate the fair value of debt using a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration, optionality and risk profile. In determining the market interest yield curve, we consider our currently assigned ratings for unsecured debt and the secured rating for the Nicor Gas first mortgage bonds. | |||||||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||||||
A summary of our PP&E by classification as of December 31, 2014 and 2013 is provided in the following table. | |||||||||||||||||||||||||||||
In millions | 2014 | 2013 | |||||||||||||||||||||||||||
Transportation and distribution | $ | 9,105 | $ | 8,371 | |||||||||||||||||||||||||
Storage facilities | 1,202 | 1,170 | |||||||||||||||||||||||||||
Other | 919 | 854 | |||||||||||||||||||||||||||
Construction work in progress | 326 | 543 | |||||||||||||||||||||||||||
Total PP&E, gross | 11,552 | 10,938 | |||||||||||||||||||||||||||
Less accumulated depreciation | 2,462 | 2,295 | |||||||||||||||||||||||||||
Total PP&E, net | $ | 9,090 | $ | 8,643 | |||||||||||||||||||||||||
Distribution Operations Our natural gas utilities’ PP&E consists of property and equipment that is currently in use, being held for future use and currently under construction. We report PP&E at its original cost, which includes: | |||||||||||||||||||||||||||||
● | material and labor; | ||||||||||||||||||||||||||||
● | contractor costs; | ||||||||||||||||||||||||||||
● | construction overhead costs; | ||||||||||||||||||||||||||||
● | AFUDC; and, | ||||||||||||||||||||||||||||
● | Nicor Gas’ pad gas - the portion considered to be non-recoverable is recorded as depreciable PP&E, while the portion considered to be recoverable is recorded as non-depreciable PP&E. | ||||||||||||||||||||||||||||
We recognize no gains or losses on depreciable utility property that is retired or otherwise disposed, as required under the composite depreciation method. Such gains and losses are ultimately refunded to, or recovered from, customers through future rate adjustments. Our natural gas utilities also hold property, primarily land; this is not presently used and useful in utility operations and is not included in rate base. Upon sale, any gain or loss is recognized in other income. | |||||||||||||||||||||||||||||
Retail Operations, Wholesale Services, Midstream Operations and Other PP&E includes property that is in use and under construction, and we report it at cost. We record a gain or loss within operation and maintenance expense for retired or otherwise disposed-of property. Natural gas in salt-dome storage at Jefferson Island and Golden Triangle that is retained as pad gas is classified as non-depreciable PP&E and is carried at cost. Central Valley has two types of pad gas in its depleted reservoir storage facility: The first is non-depreciable PP&E, which is carried at cost, and the second is non-recoverable, over which we have no contractual ownership. | |||||||||||||||||||||||||||||
On April 11, 2014, we entered into two arrangements associated with the Dalton Pipeline. The first was a construction and ownership agreement through which we will have a 50% undivided ownership interest in the 106 mile Dalton Pipeline that will be constructed in Georgia and serve as an extension of the Transco natural gas pipeline system into northwest Georgia. We also entered into an agreement to lease our 50% undivided ownership in the Dalton Pipeline once it is placed in service. The lease payments to be received are $26 million annually for an initial term of 25 years. The lessee will be responsible for maintaining the pipeline during the lease term and for providing service to transportation customers under its FERC-regulated tariff. Engineering design work has commenced and construction is expected to begin in the second quarter of 2016 with a targeted completion date in the second quarter of 2017. The capacity from this pipeline will further enhance system reliability as well as provide access to a more diverse supply of natural gas. | |||||||||||||||||||||||||||||
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. More information on our rates used and the rate method is provided in the following table. | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Atlanta Gas Light (1) | 2.3 | % | 2.6 | % | 2.6 | % | |||||||||||||||||||||||
Chattanooga Gas (1) | 2.5 | % | 2.5 | % | 2.5 | % | |||||||||||||||||||||||
Elizabethtown Gas (2) | 2.5 | % | 2.4 | % | 2.4 | % | |||||||||||||||||||||||
Elkton Gas (2) | 2.8 | % | 2.4 | % | 2.4 | % | |||||||||||||||||||||||
Florida City Gas (2) | 3.9 | % | 3.8 | % | 3.9 | % | |||||||||||||||||||||||
Nicor Gas (2) (3) | 3.1 | % | 3.1 | % | 4.1 | % | |||||||||||||||||||||||
Virginia Natural Gas (1) | 2.5 | % | 2.5 | % | 2.5 | % | |||||||||||||||||||||||
-1 | Average composite straight-line depreciation rates for depreciable property, excluding transportation equipment, which may be depreciated in excess of useful life and recovered in rates. | ||||||||||||||||||||||||||||
-2 | Composite straight-line depreciation rates. | ||||||||||||||||||||||||||||
-3 | In October 2013, the Illinois Commission approved a composite depreciation rate of 3.07%. The depreciation rate was effective as of August 30, 2013, the date the depreciation study was filed, and had the effect of reducing our 2014 and 2013 depreciation expense by $51 million and $19 million, respectively. | ||||||||||||||||||||||||||||
For our non-regulated segments, we compute depreciation expense on a straight-line basis over the following estimated useful lives of the assets. | |||||||||||||||||||||||||||||
In years | Estimated useful life | ||||||||||||||||||||||||||||
Transportation equipment | 5 – 10 | ||||||||||||||||||||||||||||
Storage caverns | 40 – 60 | ||||||||||||||||||||||||||||
Other | up to 40 | ||||||||||||||||||||||||||||
AFUDC and Capitalized Interest | |||||||||||||||||||||||||||||
Atlanta Gas Light, Nicor Gas, Chattanooga Gas and Elizabethtown Gas are authorized by applicable state regulatory agencies or legislatures to capitalize the cost of debt and equity funds as part of the cost of PP&E construction projects in our Consolidated Statements of Financial Position. The capital expenditures of our other three utilities do not qualify for AFUDC treatment. More information on our authorized or actual AFUDC rates is provided in the following table. | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Atlanta Gas Light | 8.1 | % | 8.1 | % | 8.1 | % | |||||||||||||||||||||||
Nicor Gas (1) | 0.24 | % | 0.31 | % | 0.36 | % | |||||||||||||||||||||||
Chattanooga Gas | 7.41 | % | 7.41 | % | 7.41 | % | |||||||||||||||||||||||
Elizabethtown Gas (1) | 0.44 | % | 0.41 | % | 0.51 | % | |||||||||||||||||||||||
AFUDC (in millions) (2) | $ | 7 | $ | 18 | $ | 8 | |||||||||||||||||||||||
-1 | Variable rate is determined by FERC method of AFUDC accounting. | ||||||||||||||||||||||||||||
-2 | Amount recorded in the Consolidated Statements of Income. | ||||||||||||||||||||||||||||
Asset Retirement Obligations | |||||||||||||||||||||||||||||
We record a liability at fair value for an asset retirement obligation (ARO) when a legal obligation to retire the asset has been incurred, with an offsetting increase to the carrying value of the related asset. Accretion of the ARO due to the passage of time is recorded as an operating expense. We have recorded an ARO of $3 million at December 31, 2014 and 2013 principally for our storage facilities. For our distribution PP&E, we cannot reasonably estimate the fair value of this obligation because we have determined that we have insufficient internal or industry information to reasonably estimate the potential settlement dates or costs. | |||||||||||||||||||||||||||||
Impairment of Assets | |||||||||||||||||||||||||||||
Our goodwill is not amortized, but is subject to an annual impairment test. Our other long-lived assets, including our finite-lived intangible assets, require an impairment review when events or circumstances indicate that the carrying amount may not be recoverable. We base our evaluation of the recoverability of other long-lived assets on the presence of impairment indicators such as the future economic benefit of the assets, any historical or future profitability measurements and other external market conditions or factors. | |||||||||||||||||||||||||||||
Goodwill We perform an annual goodwill impairment test on our reporting units that contain goodwill during the fourth quarter of each year, or more frequently if impairment indicators arise. These indicators include, but are not limited to, a significant change in operating performance, the business climate, legal or regulatory factors, or a planned sale or disposition of a significant portion of the business. To estimate the fair value of our reporting units, we use two generally accepted valuation approaches, the income approach and the market approach, using assumptions consistent with a market participant’s perspective. | |||||||||||||||||||||||||||||
Under the income approach, fair value is estimated based on the present value of estimated future cash flows discounted at an appropriate risk-free rate that takes into consideration the time value of money, inflation and the risks inherent in ownership of the business being valued. The cash flow estimates contain a degree of uncertainty, and changes in the projected cash flows could significantly increase or decrease the estimated fair value of a reporting unit. For the regulated reporting units, a fair recovery of, and return on, costs prudently incurred to serve customers is assumed. An unfavorable outcome in a rate case could cause the fair value of these reporting units to decrease. Key assumptions used in the income approach include the return on equity for the regulated reporting units, long-term growth rates used to determine terminal values 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 is based on a combination of historical and forecasted statistics for real gross domestic product and personal income for each utility service area. The estimated rates we will charge to customers for capacity in the storage caverns were based on internal and external rate forecasts. | |||||||||||||||||||||||||||||
Under the market approach, fair value is estimated by applying multiples to forecasted cash flows. This method uses metrics from similar publicly traded companies in the same industry, when available, to determine how much a knowledgeable investor in the marketplace would be willing to pay for an investment in a similar company. | |||||||||||||||||||||||||||||
We weight the results of the two valuation approaches to estimate the fair value of each reporting unit. Our goodwill impairment testing also develops a baseline test and performs a sensitivity analysis to calculate a reasonable valuation range. The sensitivities are derived by altering those assumptions that are subjective in nature and inherent to a discounted cash flows calculation. | |||||||||||||||||||||||||||||
The significant assumptions that drive the estimated values of our reporting units are projected cash flows, discount rates, growth rates, weighted average cost of capital (WACC) and market multiples. Due to the subjectivity of these assumptions, we cannot provide assurance that future analyses will not result in impairment, as a future impairment depends on market and economic factors affecting fair value. Our annual goodwill impairment analysis in the fourth quarter of 2014 indicated that the estimated fair values of all but one of our reporting units with goodwill were in excess of the carrying values by approximately 30% to over 600%, and were not at risk of failing step one of the impairment test. | |||||||||||||||||||||||||||||
Within our midstream operations segment, the estimated fair value of our storage and fuels reporting unit with $14 million of goodwill, exceeded its carrying value by less than 5% and is at risk of failing the step one test. The discounted cash flow model used in the goodwill impairment test for this reporting unit assumed discrete period revenue growth through fiscal 2023 to reflect the recovery of subscription rates, stabilization of earnings and establishment of a reasonable base year off of which we estimated the terminal value. In the terminal year, we assumed a long-term earnings growth rate of 2.5%, which is consistent with our 2013 annual goodwill impairment test, and we believe is appropriate given the current economic and industry specific expectations. As of the valuation date, we utilized a WACC of 7.0%, which we believe is appropriate as it reflects the relative risk, the time value of money, and is consistent with the peer group of this reporting unit as well as the discount rate that was utilized in our 2013 annual goodwill impairment test. | |||||||||||||||||||||||||||||
The cash flow forecast for the storage and fuels reporting unit assumed earnings growth over the next nine years. Should this growth not occur, this reporting unit may fail step one of a goodwill impairment test in a future period. Along with any reductions to our cash flow forecast, changes in other key assumptions used in our 2014 annual impairment analysis may result in the requirement to proceed to step two of the goodwill impairment test in future periods. | |||||||||||||||||||||||||||||
We will continue to monitor this reporting unit for impairment and note that continued declines in capacity or subscription rates, declines for a sustained period at the current market rates or other changes to the key assumptions and factors used in this analysis may result in a future impairment of goodwill. The amounts of goodwill as of December 31, 2014 and 2013 are provided below. In 2013, our goodwill increased by $51 million for an acquisition in our retail operations segment. For 2013, the goodwill at Tropical Shipping was classified as held for sale. See Note 14 for additional information. | |||||||||||||||||||||||||||||
In millions | Distribution Operations | Retail Operations | Wholesale | Midstream Operations | Other | Consolidated | |||||||||||||||||||||||
Services | |||||||||||||||||||||||||||||
Goodwill - December 31, 2014 and 2013 | $ | 1,640 | $ | 173 | $ | - | $ | 14 | $ | - | $ | 1,827 | |||||||||||||||||
Long-Lived AssetsWe depreciate or amortize our long-lived assets and other intangible assets over their useful lives. We have no significant indefinite-lived intangible assets. These long-lived assets and other intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When such events or circumstances are present, we assess the recoverability of long-lived assets by determining whether the carrying value will be recovered through expected future cash flows. Impairment is indicated if the carrying amount of the long-lived asset exceeds the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If impairment is indicated, we record an impairment loss equal to the difference between the carrying value and the fair value of the long-lived asset. | |||||||||||||||||||||||||||||
We determined that there were no long-lived asset impairments in 2014; however, our Golden Triangle storage facility within midstream operations currently has less than a 5% cushion of its undiscounted cash flows over its book value. Accordingly, if it experiences further natural gas price declines or a prolonged slow recovery, future analyses may result in an impairment of these long-lived assets. We will continue to monitor the storage assets in midstream operations. In 2013, we recorded an $8 million loss related to Sawgrass Storage. | |||||||||||||||||||||||||||||
Intangible AssetsOur intangible assets within our retail operations segment are presented in the following table and represent the estimated fair value at the date of acquisition of the acquired intangible assets in our businesses. As indicated previously, we perform an impairment review when impairment indicators are present. If present, we first determine whether the carrying amount of the asset is recoverable through the undiscounted future cash flows expected from the asset. If the carrying amount is not recoverable, we measure the impairment loss, if any, as the amount by which the carrying amount of the asset exceeds its fair value. | |||||||||||||||||||||||||||||
Weighted average | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||
amortization | |||||||||||||||||||||||||||||
In millions | period | Gross | Accumulated amortization | Net | Gross | Accumulated amortization | Net | ||||||||||||||||||||||
(in years) | |||||||||||||||||||||||||||||
Customer relationships | 13 | $ | 130 | $ | (42 | ) | $ | 88 | $ | 130 | $ | (25 | ) | $ | 105 | ||||||||||||||
Trade names | 13 | 45 | (8 | ) | 37 | 45 | (5 | ) | 40 | ||||||||||||||||||||
Total | $ | 175 | $ | (50 | ) | $ | 125 | $ | 175 | $ | (30 | ) | $ | 145 | |||||||||||||||
We amortize these intangible assets in a manner in which the economic benefits are consumed utilizing the undiscounted cash flows that were used in the determination of their fair values. Amortization expense was $20 million in 2014, $18 million in 2013 and $13 million in 2012. Amortization expense for the next five years is as follows: | |||||||||||||||||||||||||||||
In millions | Amortization Expense | ||||||||||||||||||||||||||||
2015 | $ | 17 | |||||||||||||||||||||||||||
2016 | 15 | ||||||||||||||||||||||||||||
2017 | 14 | ||||||||||||||||||||||||||||
2018 | 13 | ||||||||||||||||||||||||||||
2019 | 11 | ||||||||||||||||||||||||||||
Accounting for Retirement Benefit Plans | |||||||||||||||||||||||||||||
We recognize the funded status of our plans as an asset or a liability on our Consolidated Statements of Financial Position, measuring the plans’ assets and obligations that determine our funded status as of the end of the fiscal year. We generally recognize, as a component of OCI, the changes in funded status that occurred during the year that are not yet recognized as part of net periodic benefit cost. Because substantially all of its retirement costs are recoverable through base rates, Nicor Gas defers the change in funded status that would normally be charged or credited to comprehensive income to a regulatory asset or liability until the period in which the costs are included in base rates, in accordance with the authoritative guidance for rate-regulated entities. The assets of our retirement plans are measured at fair value within the funded status and are classified in the fair value hierarchy in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||||||||||||||
In determining net periodic benefit cost, the expected return on plan assets component is determined by applying our expected return on assets to a calculated asset value, rather than to the fair value of the assets as of the end of the previous fiscal year. For more information, see Note 6. In addition, we have elected to amortize gains and losses caused by actual experience that differs from our assumptions into subsequent periods. The amount to be amortized is the amount of the cumulative gain or loss as of the beginning of the year, excluding those gains and losses not yet reflected in the calculated value, that exceeds 10 percent of the greater of the benefit obligation or the calculated asset value; and the amortization period is the average remaining service period of active employees. | |||||||||||||||||||||||||||||
Taxes | |||||||||||||||||||||||||||||
Income Taxes The reporting of our assets and liabilities for financial accounting purposes differs from the reporting for income tax purposes. The principal difference between net income and taxable income relates to the timing of deductions, primarily due to the benefits of tax depreciation since we generally depreciate assets for tax purposes over a shorter period of time than for book purposes. The determination of our provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items. We report the tax effects of depreciation and other temporary differences as deferred income tax assets or liabilities in our Consolidated Statements of Financial Position. | |||||||||||||||||||||||||||||
We have current and deferred income taxes in our Consolidated Statements of Income. Current income tax expense consists of federal and state income tax less applicable tax credits related to the current year. Deferred income tax expense is generally equal to the changes in the deferred income tax liability and regulatory tax liability during the year. | |||||||||||||||||||||||||||||
Accumulated Deferred Income Tax Assets and Liabilities As noted above, we report some of our assets and liabilities differently for financial accounting purposes than we do for income tax purposes. We report the tax effects of the differences in those items as deferred income tax assets or liabilities in our Consolidated Statements of Financial Position. We measure these deferred income tax assets and liabilities using enacted income tax rates. | |||||||||||||||||||||||||||||
With the sale of Tropical Shipping in the third quarter of 2014, we determined that the cumulative foreign earnings of that business would no longer be indefinitely reinvested offshore. Accordingly, we recognized income tax expense of $60 million in 2014 related to the cumulative foreign earnings for which no tax liabilities had been previously recorded, resulting in our repatriation of $86 million in cash. Refer to Note 14 for additional information. | |||||||||||||||||||||||||||||
Income Tax Benefits The authoritative guidance related to income taxes requires us to determine whether tax benefits claimed or expected to be claimed on our tax return should be recorded in our consolidated financial statements. Under this guidance, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based upon the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. | |||||||||||||||||||||||||||||
Uncertain Tax Positions We recognize accrued interest related to uncertain tax positions in interest expense and penalties in operating expense in our Consolidated Statements of Income. | |||||||||||||||||||||||||||||
Tax Collections We do not collect income taxes from our customers on behalf of governmental authorities. However, we do collect and remit various other taxes on behalf of various governmental authorities. We record these amounts in our Consolidated Statements of Financial Position. In other instances, we are allowed to recover from customers other taxes that are imposed upon us. We record such taxes as operating expenses and record the corresponding customer charges as operating revenues. | |||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Distribution operations We record revenues when goods or services are provided to customers. Those revenues are based on rates approved by the state regulatory commissions of our utilities. | |||||||||||||||||||||||||||||
As required by the Georgia Commission, Atlanta Gas Light bills Marketers in equal monthly installments for each residential, commercial and industrial end-use customer’s distribution costs. Additionally, as required by the Georgia Commission, Atlanta Gas Light bills Marketers for capacity costs utilizing a seasonal rate design for the calculation of each residential end-use customer’s annual straight-fixed-variable (SFV) charge, which reflects the historic volumetric usage pattern for the entire residential class. Generally, this seasonal rate design results in billing the Marketers a higher capacity charge in the winter months and a lower charge in the summer months, which impacts our operating cash flows. However, this seasonal billing requirement does not impact our revenues, which are recognized on a straight-line basis, because the associated rate mechanism ensures that we ultimately collect the full annual amount of the SFV charges. | |||||||||||||||||||||||||||||
All of our utilities, with the exception of Atlanta Gas Light, have rate structures that include volumetric rate designs that allow the opportunity to recover of certain costs based on gas usage. Revenues from sales and transportation services are recognized in the same period in which the related volumes are delivered to customers. Revenues from residential and certain commercial and industrial customers are recognized on the basis of scheduled meter readings. Additionally, unbilled revenues are recognized for estimated deliveries of gas not yet billed to these customers, from the last bill date to the end of the accounting period. For other commercial and industrial customers and for all wholesale customers, revenues are based on actual deliveries to the end of the period. | |||||||||||||||||||||||||||||
The tariffs for Virginia Natural Gas, Elizabethtown Gas and Chattanooga Gas contain WNAs that partially mitigate the impact of unusually cold or warm weather on customer billings and operating margin. The WNAs have the effect of reducing customer bills when winter weather is colder-than-normal and increasing customer bills when weather is warmer-than-normal. In addition, the tariffs for Virginia Natural Gas, Chattanooga Gas and Elkton Gas contain revenue normalization mechanisms that mitigate the impact of conservation and declining customer usage. | |||||||||||||||||||||||||||||
Revenue Taxes We charge customers for gas revenue and gas use taxes imposed on us and remit amounts owed to various governmental authorities. Our policy for gas revenue taxes is to record the amounts charged by us to customers, which for some taxes includes a small administrative fee, as operating revenues, and to record the related taxes imposed on us as operating expenses in our Consolidated Statements of Income. Our policy for gas use taxes is to exclude these taxes from revenue and expense, aside from a small administrative fee that is included in operating revenues as the tax is imposed on the customer. As a result, the amount recorded in operating revenues will exceed the amount recorded in operating expenses by the amount of administrative fees that are retained by the company. Revenue taxes included in operating expenses were $130 million in 2014, $110 million in 2013 and $85 million in 2012. | |||||||||||||||||||||||||||||
Retail operations Revenues from natural gas sales and transportation services are recognized in the same period in which the related volumes are delivered to customers. Sales revenues from residential and certain commercial and industrial customers are recognized on the basis of scheduled meter readings. In addition, unbilled revenues are recognized for estimated deliveries of gas not yet billed to these customers, from the most recent meter reading date to the end of the accounting period. For other commercial and industrial customers and for all wholesale customers, revenues are based on actual deliveries during the period. | |||||||||||||||||||||||||||||
We recognize revenues on 12-month utility-bill management contracts as the lesser of cumulative earned or cumulative billed amounts. We recognize revenues for warranty and repair contracts on a straight-line basis over the contract term. Revenues for maintenance services are recognized at the time such services are performed. | |||||||||||||||||||||||||||||
Wholesale services Revenues from energy and risk management activities are required under authoritative guidance to be netted with the associated costs. Profits from sales between segments are eliminated and are recognized as goods or services sold to end-use customers. Transactions that qualify as derivatives under authoritative guidance related to derivatives and hedging are recorded at fair value with changes in fair value recognized in earnings in the period of change and characterized as unrealized gains or losses. Gains and losses on derivatives held for energy trading purposes are required to be presented net in revenue. | |||||||||||||||||||||||||||||
Midstream operations We record operating revenues for storage and transportation services in the period in which volumes are transported and storage services are provided. The majority of our storage services are covered under medium to long-term contracts at fixed market-based rates. We recognize our park and loan revenues ratably over the life of the contract. | |||||||||||||||||||||||||||||
Cost of Goods Sold | |||||||||||||||||||||||||||||
Distribution operations Excluding Atlanta Gas Light, which does not sell natural gas to end-use customers, we charge our utility customers for natural gas consumed using natural gas cost recovery mechanisms set by the state regulatory agencies. Under these mechanisms, all prudently incurred natural gas costs are passed through to customers without markup, subject to regulatory review. In accordance with the authoritative guidance for rate-regulated entities, we defer or accrue (that is, include as an asset or liability in the Consolidated Statements of Financial Position and exclude from, or include in, the Consolidated Statements of Income, respectively) the difference between the actual cost of goods sold and the amount of commodity revenue earned in a given period, such that no operating margin is recognized related to these costs. The deferred or accrued amount is either billed or refunded to our customers prospectively through adjustments to the commodity rate. Deferred natural gas costs are reflected as regulatory assets and accrued natural gas costs are reflected as regulatory liabilities. For more information, see Note 3. | |||||||||||||||||||||||||||||
Retail operations Our retail operations customers are charged for actual or estimated natural gas consumed. Within our cost of goods sold, we also include costs of fuel and lost and unaccounted for gas, adjustments to reduce the value of our inventories to market value and gains and losses associated with certain derivatives. Costs to service our warranty and repair contract claims and costs associated with the installation of HVAC equipment are recorded to cost of goods sold. | |||||||||||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||||||||
We have certain operating leases with provisions for step rent or escalation payments and certain lease concessions. We account for these leases by recognizing the future minimum lease payments on a straight-line basis over the respective minimum lease terms, in accordance with authoritative guidance related to leases. This accounting treatment does not affect the future annual operating lease cash obligations. For more information, see Note 11. | |||||||||||||||||||||||||||||
Other Income | |||||||||||||||||||||||||||||
Our other income is detailed in the following table. For more information on our equity investment income, see Note 10. | |||||||||||||||||||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Equity investment income | $ | 8 | $ | 3 | $ | 13 | |||||||||||||||||||||||
AFUDC - equity | 5 | 12 | 6 | ||||||||||||||||||||||||||
Other, net | 1 | 1 | 5 | ||||||||||||||||||||||||||
Total other income | $ | 14 | $ | 16 | $ | 24 | |||||||||||||||||||||||
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 occurs 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 award programs. The vesting of certain shares of the restricted stock and restricted stock units depends on the satisfaction of defined performance criteria and/or time-based 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. | |||||||||||||||||||||||||||||
In millions (except per share amounts) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Income from continuing operations attributable to AGL Resources Inc. | $ | 562 | $ | 290 | $ | 259 | |||||||||||||||||||||||
(Loss) income from discontinued operations, net of tax | (80 | ) | 5 | 1 | |||||||||||||||||||||||||
Net income attributable to AGL Resources Inc. | $ | 482 | $ | 295 | $ | 260 | |||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Basic weighted average number of common shares outstanding (1) | 118.8 | 117.9 | 117 | ||||||||||||||||||||||||||
Effect of dilutive securities | 0.4 | 0.4 | 0.5 | ||||||||||||||||||||||||||
Diluted weighted average number of common shares outstanding (2) | 119.2 | 118.3 | 117.5 | ||||||||||||||||||||||||||
Basic earnings per common share | |||||||||||||||||||||||||||||
Continuing operations | $ | 4.73 | $ | 2.46 | $ | 2.21 | |||||||||||||||||||||||
Discontinued operations | (0.67 | ) | 0.04 | 0.01 | |||||||||||||||||||||||||
Basic earnings per common share attributable to AGL Resources Inc. common shareholders | $ | 4.06 | $ | 2.5 | $ | 2.22 | |||||||||||||||||||||||
Diluted earnings per common share (2) | |||||||||||||||||||||||||||||
Continuing operations | $ | 4.71 | $ | 2.45 | $ | 2.2 | |||||||||||||||||||||||
Discontinued operations | (0.67 | ) | 0.04 | 0.01 | |||||||||||||||||||||||||
Diluted earnings per common share attributable to AGL Resources Inc. common shareholders | $ | 4.04 | $ | 2.49 | $ | 2.21 | |||||||||||||||||||||||
(1)Daily weighted average shares outstanding. | |||||||||||||||||||||||||||||
(2)There were no outstanding stock options excluded from the computation of diluted earnings per common share attributable to AGL Resources Inc. for any of the periods presented because their effect would have been anti-dilutive, as the exercise prices were greater than the average market price. | |||||||||||||||||||||||||||||
Sale of Compass Energy | |||||||||||||||||||||||||||||
On May 1, 2013, we sold Compass Energy, a non-regulated retail natural gas business supplying commercial and industrial customers, within 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 were eligible to receive contingent cash consideration up to $8 million with a guaranteed minimum receipt of $3 million that was recognized during 2013. The remaining $5 million of contingent cash consideration was to be received from the buyer annually over a five-year earn out period based upon the financial performance of Compass Energy. In the third quarter of 2014, we negotiated with the buyer to settle the future earn-out payments and we received $4 million, resulting in the recognition of a $3 million gain. We have a five-year agreement through April 2018 to supply natural gas to our former customers. As a result of our continued involvement, the sale of Compass Energy did not meet the criteria for treatment as a discontinued operation in 2014. Under the new accounting guidance, which became effective for us on January 1, 2015, the sale of Compass Energy is not considered a strategic shift in operations and would not be reflected as a discontinued operation if we were to terminate our continued involvement in the future. | |||||||||||||||||||||||||||||
Non-Wholly Owned Entities | |||||||||||||||||||||||||||||
We hold ownership interests in a number of business ventures with varying ownership structures. We evaluate all of our partnership interests and other variable interests to determine if each entity is a variable interest entity (VIE), as defined in the authoritative accounting guidance. If a venture is a VIE for which we are the primary beneficiary, we consolidate the assets, liabilities and results of operations of the entity. We reassess our conclusion as to whether an entity is a VIE upon certain occurrences, which are deemed reconsideration events under the guidance. We have concluded that the only venture that we are required to consolidate as a VIE, as we are the primary beneficiary, is SouthStar. On our Consolidated Statements of Financial Position, we recognize Piedmont’s share of the non-wholly owned entity as a separate component of equity entitled “noncontrolling interest.” Piedmont’s share of current operations is reflected in “net income attributable to the noncontrolling interest” on our Consolidated Statements of Income. The consolidation of SouthStar has no effect on our calculation of basic or diluted earnings per common share amounts, which are based upon net income attributable to AGL Resources Inc. | |||||||||||||||||||||||||||||
For entities that are not determined to be VIEs, we evaluate whether we have control or significant influence over the investee to determine the appropriate consolidation and presentation. Generally, entities under our control are consolidated, and entities over which we can exert significant influence, but do not control, are accounted for under the equity method of accounting. However, we also invest in partnerships and limited liability companies that maintain separate ownership accounts. All such investments are required to be accounted for under the equity method unless our interest is so minor that there is virtually no influence over operating and financial policies, as are all investments in joint ventures. | |||||||||||||||||||||||||||||
Investments accounted for under the equity method are included in long-term investments on our Consolidated Statements of Financial Position, and the equity income is recorded within other income on our Consolidated Statements of Income and was immaterial for all periods presented. For additional information, see Note 10. | |||||||||||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||||||||
On January 31, 2013, our retail operations segment acquired approximately 500,000 service contracts and certain other assets from NiSource Inc. for $122 million. These service contracts provide home warranty protection solutions and energy efficiency leasing solutions to residential and small business utility customers and complement the retail business acquired in the Nicor merger. Intangible assets related to this acquisition are primarily customer relationships of $46 million and trade names of $16 million. These intangible assets are being amortized over approximately 14 years for customer relationships and 10 years for trade names. The final allocation of the purchase price to the fair value of assets acquired and liabilities assumed is presented in the following table: | |||||||||||||||||||||||||||||
In millions | |||||||||||||||||||||||||||||
Current assets | $ | 3 | |||||||||||||||||||||||||||
PP&E | 12 | ||||||||||||||||||||||||||||
Goodwill | 51 | ||||||||||||||||||||||||||||
Intangible assets | 62 | ||||||||||||||||||||||||||||
Current liabilities | (6 | ) | |||||||||||||||||||||||||||
Total purchase price | $ | 122 | |||||||||||||||||||||||||||
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 being amortized over 15 years. | |||||||||||||||||||||||||||||
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 rate-regulated subsidiaries, 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. | |||||||||||||||||||||||||||||
Accounting Developments | |||||||||||||||||||||||||||||
In April 2014, the FASB issued authoritative guidance related to reporting discontinued operations. The guidance generally raises the threshold for disposals to qualify as discontinued operations and requires new disclosures of both discontinued operations and certain other material disposals that do not meet the definition of a discontinued operation. The guidance was effective for us prospectively beginning January 1, 2015. It had no impact on our accounting for the sale of Tropical Shipping. There was no impact on January 1, 2015, nor is there any reason we would expect this guidance to have a material impact on our consolidated financial statements in the foreseeable future. | |||||||||||||||||||||||||||||
In May 2014, the FASB issued an update to authoritative guidance related to revenue from contracts with customers. The update replaces most of the existing guidance with a single set of principles for recognizing revenue from contracts with customers. The guidance will be effective for us beginning January 1, 2017. Early adoption is not permitted. The new guidance must be applied retrospectively to each prior period presented or via a cumulative effect upon the date of initial application. We have not yet determined the impact of this new guidance, nor have we selected a transition method. | |||||||||||||||||||||||||||||
In June 2014, the FASB issued an update to authoritative guidance related to accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The guidance will be effective for us beginning January 1, 2016, and it will have no impact on our consolidated financial statements for our existing share-based plans. |
Note_3_Regulated_Operations
Note 3 - Regulated Operations | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||
Schedule of Regulatory Assets and Liabilities [Text Block] | Note 3 – Regulated Operations | ||||||||||||||||||||||||||||
Our regulatory assets and liabilities reflected within our Consolidated Statements of Financial Position as of December 31 are summarized in the following table. | |||||||||||||||||||||||||||||
In millions | 2014 | 2013 | |||||||||||||||||||||||||||
Regulatory assets | |||||||||||||||||||||||||||||
Recoverable ERC | $ | 49 | $ | 45 | |||||||||||||||||||||||||
Recoverable pension and retiree welfare benefit costs | 12 | 9 | |||||||||||||||||||||||||||
Recoverable seasonal rates | 10 | 10 | |||||||||||||||||||||||||||
Deferred natural gas costs | 3 | 1 | |||||||||||||||||||||||||||
Other | 9 | 49 | |||||||||||||||||||||||||||
Total regulatory assets - current | 83 | 114 | |||||||||||||||||||||||||||
Recoverable ERC | 326 | 433 | |||||||||||||||||||||||||||
Recoverable pension and retiree welfare benefit costs | 110 | 99 | |||||||||||||||||||||||||||
Long-term debt fair value adjustment | 74 | 82 | |||||||||||||||||||||||||||
Recoverable regulatory infrastructure program costs | 69 | 55 | |||||||||||||||||||||||||||
Other | 52 | 36 | |||||||||||||||||||||||||||
Total regulatory assets - long-term | 631 | 705 | |||||||||||||||||||||||||||
Total regulatory assets | $ | 714 | $ | 819 | |||||||||||||||||||||||||
Regulatory liabilities | |||||||||||||||||||||||||||||
Bad debt over collection | $ | 33 | $ | 41 | |||||||||||||||||||||||||
Accrued natural gas costs | 27 | 92 | |||||||||||||||||||||||||||
Accumulated removal costs | 25 | 27 | |||||||||||||||||||||||||||
Other | 27 | 23 | |||||||||||||||||||||||||||
Total regulatory liabilities - current | 112 | 183 | |||||||||||||||||||||||||||
Accumulated removal costs | 1,520 | 1,445 | |||||||||||||||||||||||||||
Regulatory income tax liability | 34 | 27 | |||||||||||||||||||||||||||
Unamortized investment tax credit | 22 | 26 | |||||||||||||||||||||||||||
Bad debt over collection | 12 | 17 | |||||||||||||||||||||||||||
Other | 13 | 3 | |||||||||||||||||||||||||||
Total regulatory liabilities - long-term | 1,601 | 1,518 | |||||||||||||||||||||||||||
Total regulatory liabilities | $ | 1,713 | $ | 1,701 | |||||||||||||||||||||||||
Base rates are designed to provide the opportunity to recover cost and a return on investment during the period rates are in effect. As such, all of our regulatory assets recoverable through base rates are subject to review by the respective state regulatory commission during future rate proceedings. We are not aware of 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. Additionally, while some regulatory liabilities would be written off, others would continue to be recorded as liabilities, but not as regulatory liabilities. | |||||||||||||||||||||||||||||
Although the natural gas distribution industry is competing with alternative fuels, primarily electricity, our utility operations continue to recover their costs through cost-based rates established by the state regulatory commissions. As a result, we believe that the accounting prescribed under the guidance remains appropriate. It is also our opinion that all regulatory assets are recoverable in future rate proceedings, and therefore we have not recorded any regulatory assets that are recoverable but are not yet included in base rates or contemplated in a rate rider or proceeding. The regulatory liabilities that do not represent revenue collected from customers for expenditures that have not yet been incurred are refunded to ratepayers through a rate rider or base rates. If the regulatory liability is included in base rates, the amount is reflected as a reduction to the rate base used to periodically set base rates. | |||||||||||||||||||||||||||||
The majority of our regulatory assets and liabilities listed in the preceding table are included in base rates except for the regulatory infrastructure program costs, ERC, bad debt over collection, natural gas costs and energy efficiency costs, which are recovered through specific rate riders on a dollar-for-dollar basis. The rate riders that authorize the recovery of regulatory infrastructure program costs and natural gas costs include both a recovery of cost and a return on investment during the recovery period. Nicor Gas’ rate riders for environmental costs and energy efficiency costs provide a return of investment and expense including short-term interest on reconciliation balances. However, there is no interest associated with the under or over collections of bad debt expense. | |||||||||||||||||||||||||||||
Nicor Gas’ pension and retiree welfare benefit costs have historically been considered in rate proceedings in the same period they are accrued under GAAP. As a regulated utility, Nicor Gas expects to continue rate recovery of the eligible costs of these defined benefit retirement plans and, accordingly, associated changes in the funded status of Nicor Gas’ plans have been deferred as a regulatory asset or liability until recognized in net income, instead of being recognized in OCI. The Illinois Commission presently does not allow Nicor Gas the opportunity to earn a return on its recoverable retirement benefit costs. Such costs are expected to be recovered over a period of approximately 10 years. The regulatory assets related to debt are also not included in rate base, but the costs are recovered over the term of the debt through the authorized rate of return component of base rates. | |||||||||||||||||||||||||||||
Unrecognized Ratemaking Amounts The following table illustrates our authorized ratemaking amounts that are not recognized in our Consolidated Statements of Financial Position. These amounts are primarily composed of an allowed equity rate of return on assets associated with certain of our regulatory infrastructure programs. These amounts will be recognized as revenues in our financial statements in the periods they are collected in rates from our customers. | |||||||||||||||||||||||||||||
In millions | Atlanta Gas Light | Virginia Natural Gas | Elizabethtown Gas | Total | |||||||||||||||||||||||||
31-Dec-14 | $ | 113 | $ | 12 | $ | 2 | $ | 127 | |||||||||||||||||||||
31-Dec-13 | 80 | 12 | 1 | 93 | |||||||||||||||||||||||||
Natural Gas Costs We charge our utility customers for natural gas consumed using natural gas cost recovery mechanisms established by the state regulatory agencies. Under these mechanisms, all prudently incurred natural gas costs are passed through to customers without markup, subject to regulatory review. We defer or accrue the difference between the actual cost of gas and the amount of commodity revenue earned in a given period, such that no operating margin is recognized related to these costs. The deferred or accrued amount is either billed or refunded to our customers prospectively through adjustments to the commodity rate. Deferred natural gas costs are reflected as regulatory assets and accrued natural gas costs are reflected as regulatory liabilities. | |||||||||||||||||||||||||||||
Environmental Remediation Costs We are subject to federal, state and local laws and regulations governing environmental quality and pollution control that 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, substantially all of which is related to our MGP sites. The ERC assets and liabilities are associated with our distribution operations segment and remediation costs are generally recoverable from customers through rate mechanisms approved by regulators. Accordingly, both costs incurred to remediate the former MGP sites, plus the future estimated cost recorded as liabilities, net of amounts previously collected, are recognized as a regulatory asset until recovered from customers. | |||||||||||||||||||||||||||||
Our ERC liabilities are estimates of future remediation costs for investigation and cleanup of our current and former operating sites that are contaminated. These estimates are based on conventional engineering estimates and the use of probabilistic models of potential costs when such estimates cannot be made, on an undiscounted basis. These estimates contain various assumptions, which we refine and update on an ongoing basis. These liabilities do not include other potential expenses, such as unasserted property damage claims, personal injury or natural resource damage claims, legal expenses or other costs for which we may be held liable but for which we cannot reasonably estimate an amount. | |||||||||||||||||||||||||||||
Our accrued ERC are not regulatory liabilities; however, they are deferred as a corresponding regulatory asset until the costs are recovered from customers. These recoverable ERC assets are a combination of accrued ERC liabilities and recoverable cash expenditures for investigation and cleanup costs. We primarily recover these deferred costs through three rate riders that authorize dollar-for-dollar recovery. We expect to collect $49 million in revenues over the next 12 months, which is reflected as a current regulatory asset. We recovered $51 million in 2014, $24 million in 2013 and $13 million in 2012 from our ERC rate riders. The following table provides more information on the costs related to remediation of our current and former operating sites. | |||||||||||||||||||||||||||||
In millions | # of sites | Probabilistic model cost estimates(1) | Engineering estimates(1) | Amount recorded | Expected costs over next 12 months | Cost recovery period | |||||||||||||||||||||||
Illinois (2) | 26 | $205 - $462 | $ | 30 | $ | 230 | $ | 41 | As incurred | ||||||||||||||||||||
New Jersey | 6 | 105 - 177 | 14 | 118 | 16 | 7 years | |||||||||||||||||||||||
Georgia and Florida | 13 | 40 - 81 | 15 | 56 | 21 | 5 years | |||||||||||||||||||||||
North Carolina (3) | 1 | n/a | 10 | 10 | 9 | No recovery | |||||||||||||||||||||||
Total | 46 | $350 - $720 | $ | 69 | $ | 414 | -4 | $ | 87 | ||||||||||||||||||||
-1 | The year-end ERC cost estimates were completed as of November 30, 2014. The liability recorded reflects a reduction of these cost estimates for expenses incurred during December. | ||||||||||||||||||||||||||||
-2 | Nicor Gas is responsible in whole or in part for 26 MGP sites, of which two sites have been remediated and their use is no longer restricted by the environmental condition of the property. Nicor Gas and Commonwealth Edison Company are parties to an agreement to cooperate in cleaning up residue at 23 of the sites listed. Nicor Gas’ allocated share of cleanup costs for these sites is 52%. | ||||||||||||||||||||||||||||
-3 | We have no regulatory recovery mechanism for the site in North Carolina. Therefore, there is no amount included within our regulatory assets and changes in estimated costs are recognized in income in the period of change. | ||||||||||||||||||||||||||||
-4 | Decrease of $33 million from December 31, 2013 primarily relates to lower engineering cost estimates for work completed during 2014, partially offset by a scope increase required by the Georgia Environmental Protection Division for a site in Georgia and increases at three Illinois sites due to refinement of the assumptions used in the cost method. | ||||||||||||||||||||||||||||
In July 2014, we reached a $77 million insurance settlement for environmental claims relating to potential contamination at our MGP sites in New Jersey and North Carolina. The terms of the settlement required the $77 million to be paid in two installments. We received $45 million in the third quarter of 2014 and this payment was primarily recorded as a reduction to our recoverable ERC regulatory asset. The remaining $32 million is due in the third quarter of 2015. We will file for approval with the New Jersey BPU to utilize the insurance proceeds related to the New Jersey sites to reduce the ERC expenditures that otherwise would have been recovered from our customers in future periods. As such, the settlement, once approved, is expected to reduce our recoverable ERC regulatory asset and have a favorable impact on the rates for our Elizabethtown Gas customers. | |||||||||||||||||||||||||||||
Bad Debt Rider Nicor Gas’ bad debt rider provides for the recovery from, or refund to, customers of the difference between Nicor Gas’ actual bad debt experience on an annual basis and a benchmark, as determined by the Illinois Commission in February 2010. The over recovery is recorded as an increase to operating expenses on our Consolidated Statements of Income and a regulatory liability on our Consolidated Statements of Financial Position until refunded to customers. In the period refunded, operating expenses are reduced and the regulatory liability is reversed. The actual bad debt experience and resulting refunds are shown in the following table. | |||||||||||||||||||||||||||||
Actual | Total | Amount refunded in | Amount to be refunded in | ||||||||||||||||||||||||||
In millions | Benchmark | bad debt | refund | 2013 | 2014 | 2015 | 2016 | ||||||||||||||||||||||
2014 | $ | 63 | $ | 35 | $ | 28 | $ | - | $ | - | $ | 16 | $ | 12 | |||||||||||||||
2013 | 63 | 21 | 42 | - | 25 | 17 | - | ||||||||||||||||||||||
2012 | 63 | 23 | 40 | 24 | 16 | - | - | ||||||||||||||||||||||
Accumulated Removal Costs In accordance with regulatory treatment, our depreciation rates are comprised of two cost components - historical cost and the estimated cost of removal, net of estimated salvage, of certain regulated properties. We collect these costs in base rates through straight-line depreciation expense, with a corresponding credit to accumulated depreciation. Because the accumulated estimated removal costs are not a generally accepted component of depreciation, but meet the requirements of authoritative guidance related to regulated operations, we have reclassified them from accumulated depreciation to the accumulated removal cost regulatory liability in our Consolidated Statements of Financial Position. In the rate setting process, the liability for these accumulated removal costs is treated as a reduction to the net rate base upon which our regulated utilities have the opportunity to earn their allowed rate of return. | |||||||||||||||||||||||||||||
Regulatory Infrastructure ProgramsWe have infrastructure improvement programs at several of our utilities. Descriptions of these are as follows. | |||||||||||||||||||||||||||||
Nicor Gas In 2013, Illinois enacted legislation that allows Nicor Gas to provide more widespread safety and reliability enhancements to its distribution system. The legislation stipulates that rate increases to customer bills as a result of any infrastructure investments shall not exceed an annual average of 4.0% of base rate revenues. In July 2014, the Illinois Commission approved our new regulatory infrastructure program, Investing in Illinois (previously known as Qualified Infrastructure Plant), for which we may implement rates under the program effective in March 2015. | |||||||||||||||||||||||||||||
Atlanta Gas LightOur STRIDE program is comprised of the Integrated System Reinforcement Program (i-SRP), the Integrated Customer Growth Program (i-CGP), and the Integrated Vintage Plastic Replacement Program (i-VPR). | |||||||||||||||||||||||||||||
The purpose of the i-SRP is to upgrade our distribution system and liquefied natural gas facilities in Georgia, improve our peak-day system reliability and operational flexibility, and create a platform to meet long-term forecasted growth. The STRIDE program requires us to file an updated ten-year forecast of infrastructure requirements under i-SRP along with a new construction plan every three years for review and approval by the Georgia Commission. Our i-CGP authorizes Atlanta Gas Light to extend its pipeline facilities to serve customers in areas without pipeline access and create new economic development opportunities in Georgia. | |||||||||||||||||||||||||||||
A new $260 million, four-year STRIDE program was approved in December 2013, of which $214 million is for i-SRP related projects and $46 million is for i-CGP related projects. The program will be funded through a monthly rider surcharge per customer of $0.48 beginning in January 2015, which will increase to $0.96 beginning in January 2016 and to $1.43 beginning in January 2017. This surcharge will continue through 2025. | |||||||||||||||||||||||||||||
The purpose of the i-VPR program is to replace aging plastic pipe that was installed primarily in the 1960’s to the early 1980’s. We have identified approximately 3,300 miles of vintage plastic mains in our system that potentially should be considered for replacement over the next 15 - 20 years as it reaches the end of its useful life. In 2013, the Georgia Commission approved the replacement of 756 miles of vintage plastic pipe over four years at an estimated cost of $275 million. Additional reporting requirements and monitoring by the staff of the Georgia Commission were also included in the stipulation, which authorized a phased-in approach to funding the program through a monthly rider surcharge of $0.48 per customer through December 2014. This will increase to $0.96 beginning in January 2015 and to $1.45 beginning in January 2016, which will continue through 2025. | |||||||||||||||||||||||||||||
The orders for the STRIDE programs provide for recovery of all prudent costs incurred in the performance of the program. Atlanta Gas Light will recover from end-use customers, through billings to Marketers, the costs related to the programs net of any cost savings from the programs. All such amounts will be recovered through a combination of straight-fixed-variable rates and a STRIDE revenue rider surcharge. The regulatory asset represents recoverable incurred costs related to the programs that will be collected in future rates charged to customers through the rate riders. The future expected costs to be recovered through rates related to allowed, but not incurred costs, are recognized in an unrecognized ratemaking amount that is not reflected within our Consolidated Statements of Financial Position. This allowed cost consists primarily of the equity return on the capital investment under the program. | |||||||||||||||||||||||||||||
Atlanta Gas Light capitalizes and depreciates the capital expenditure costs incurred from the STRIDE programs over the life of the assets. Operation and maintenance costs are expensed as incurred. Recoveries, which are recorded as revenue, are based on a formula that allows Atlanta Gas Light to recover operation and maintenance costs in excess of those included in its current base rates, depreciation expense and an allowed rate of return on capital expenditures. However, Atlanta Gas Light is allowed the recovery of carrying costs on the under-recovered balance resulting from the timing difference. | |||||||||||||||||||||||||||||
Elizabethtown Gas In 2009, the New Jersey BPU approved the enhanced infrastructure program for Elizabethtown Gas, which was created in response to the New Jersey Governor’s request for utilities to assist in the economic recovery by increasing infrastructure investments. In May 2011, the New Jersey BPU approved Elizabethtown Gas’ request to spend an additional $40 million under this program before the end of 2012. Costs associated with the investment in this program are recovered through periodic adjustments to base rates that are approved by the New Jersey BPU. In August 2013, the New Jersey BPU approved the recovery of investments under this program through a permanent adjustment to base rates. | |||||||||||||||||||||||||||||
Additionally, in August 2013, we received approval from the New Jersey BPU for an extension of the accelerated infrastructure replacement program, which allows for infrastructure investment of $115 million over four years, effective as of September 1, 2013. Carrying charges on the additional capital expenditures will be deferred at a WACC of 6.65%, of which 4.27% will be within an unrecognized ratemaking amounts and will be recognized in future periods when recovered through rates. Unlike the previous program, there will be no adjustment to base rates for the investments under the extended program until Elizabethtown Gas files its next rate case. We agreed to file a general rate case by September 2016. | |||||||||||||||||||||||||||||
In September 2013, Elizabethtown Gas filed for a Natural Gas Distribution Utility Reinforcement Effort (ENDURE), a program designed to improve our distribution system’s resiliency against coastal storms and floods. Under the proposed plan, Elizabethtown Gas is investing $15 million in infrastructure and related facilities and communication planning over a one year period that began in January 2014. In July 2014, the New Jersey BPU approved a modified ENDURE plan that allows for Elizabethtown Gas to increase its base rates effective November 1, 2015 for investments made under the program. | |||||||||||||||||||||||||||||
Virginia Natural Gas In 2012, the Virginia Commission approved SAVE, an accelerated infrastructure replacement program, which is expected to be completed over a five-year period. The program permits a maximum capital expenditure of $25 million per year, not to exceed $105 million in total. SAVE is subject to annual review by the Virginia Commission. We began recovering program costs through a rate rider that was effective August 1, 2012. The second year performance rate update was approved by the Virginia Commission in July 2014 and became effective as of August 2014. | |||||||||||||||||||||||||||||
Energy Smart PlanIn May 2014, the Illinois Commission approved Nicor Gas’ Energy Smart Plan, which outlines energy efficiency program offerings and therm reduction goals with spending of $93 million over a three-year period that began in June 2014. Nicor Gas’ first energy efficiency program ended in May 2014. | |||||||||||||||||||||||||||||
Investment Tax Credits Deferred investment tax credits associated with distribution operations are included as a regulatory liability in our Consolidated Statements of Financial Position. These investment tax credits are being amortized over the estimated lives of the related properties as credits to income tax expense. | |||||||||||||||||||||||||||||
RegulatoryIncome Tax Liability For our regulated utilities, we measure deferred income tax assets and liabilities using enacted income tax rates. Thus, when the statutory income tax rate declines before a temporary difference has fully reversed, the deferred income tax liability must be reduced to reflect the newly enacted income tax rates. However, the amount of the reduction is transferred to our regulatory income tax liability, which we are amortizing over the lives of the related properties as the temporary differences reverse over approximately 30 years. | |||||||||||||||||||||||||||||
Other Regulatory Assets and Liabilities Our recoverable pension and retiree welfare benefit plan costs for our utilities other than Nicor Gas are expected to be recovered through base rates over the next 2 to 21 years, based on the remaining recovery periods as designated by the applicable state regulatory commissions. This category also includes recoverable seasonal rates, which reflect the difference between the recognition of a portion of Atlanta Gas Light’s residential base rates revenues on a straight-line basis as compared to the collection of the revenues over a seasonal pattern. These amounts are fully recoverable through base rates within one year. |
Note_4_Fair_Value_Measurements
Note 4 - Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | Note 4 - Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||
Retirement benefit plans assets | |||||||||||||||||||||||||||||||||||||||||
The assets of the AGL Resources Inc. Retirement Plan (AGL Plan), the Employees’ Retirement Plan of NUI Corporation (NUI Plan), and the Health and Welfare Plan for Retirees and Inactive Employees of AGL Resources Inc. (AGL Welfare Plan) were allocated approximately 71% equity and 29% fixed income at December 31, 2014 and 74% equity and 26% fixed income at December 31, 2013 compared to our targets of 70% to 95% equity, 5% to 20% fixed income, and up to 10% cash for both periods. The plans’ investment policies provide for some variation in these targets. The actual asset allocations of our retirement plans are presented in the following table by Level within the fair value hierarchy. | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Pension plans (1) | Welfare plans | ||||||||||||||||||||||||||||||||||||||||
In millions | Level 1 | Level 2 | Level 3 | Total | % of total | Level 1 | Level 2 | Level 3 | Total | % of total | |||||||||||||||||||||||||||||||
Cash | $ | 4 | $ | 1 | $ | - | $ | 5 | 1 | % | $ | 1 | $ | - | $ | - | $ | 1 | 1 | % | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||||||
U.S. large cap (2) | $ | 95 | $ | 203 | $ | - | $ | 298 | 33 | % | $ | - | $ | 51 | $ | - | $ | 51 | 57 | % | |||||||||||||||||||||
U.S. small cap (2) | 76 | 24 | - | 100 | 11 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
International companies (3) | - | 123 | - | 123 | 13 | % | - | 16 | - | 16 | 18 | % | |||||||||||||||||||||||||||||
Emerging markets (4) | - | 31 | - | 31 | 3 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Total equity securities | $ | 171 | $ | 381 | $ | - | $ | 552 | 60 | % | $ | - | $ | 67 | $ | - | $ | 67 | 75 | % | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds (5) | $ | - | $ | 233 | $ | - | $ | 233 | 25 | % | $ | - | $ | 22 | $ | - | $ | 22 | 24 | % | |||||||||||||||||||||
Other (or gov’t/muni bonds) | - | 33 | - | 33 | 4 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Total fixed income securities | $ | - | $ | 266 | $ | - | $ | 266 | 29 | % | $ | - | $ | 22 | $ | - | $ | 22 | 24 | % | |||||||||||||||||||||
Other types of investments: | |||||||||||||||||||||||||||||||||||||||||
Global hedged equity (6) | $ | - | $ | - | $ | 29 | $ | 29 | 3 | % | $ | - | $ | - | $ | - | $ | - | - | % | |||||||||||||||||||||
Absolute return (7) | - | - | 42 | 42 | 5 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Private capital (8) | - | - | 20 | 20 | 2 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Total other investments | $ | - | $ | - | $ | 91 | $ | 91 | 10 | % | $ | - | $ | - | $ | - | $ | - | - | % | |||||||||||||||||||||
Total assets at fair value | $ | 175 | $ | 648 | $ | 91 | $ | 914 | 100 | % | $ | 1 | $ | 89 | $ | - | $ | 90 | 100 | % | |||||||||||||||||||||
% of fair value hierarchy | 19 | % | 71 | % | 10 | % | 100 | % | 1 | % | 99 | % | - | % | 100 | % | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Pension plans (1) | Welfare plans | ||||||||||||||||||||||||||||||||||||||||
In millions | Level 1 | Level 2 | Level 3 | Total | % of total | Level 1 | Level 2 | Level 3 | Total | % of total | |||||||||||||||||||||||||||||||
Cash | $ | 3 | $ | 1 | $ | - | $ | 4 | - | % | $ | 1 | $ | - | $ | - | $ | 1 | 1 | % | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||||||
U.S. large cap (2) | $ | 93 | $ | 205 | $ | - | $ | 298 | 33 | % | $ | - | $ | 52 | $ | - | $ | 52 | 62 | % | |||||||||||||||||||||
U.S. small cap (2) | 72 | 29 | - | 101 | 11 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
International companies (3) | - | 139 | - | 139 | 15 | % | - | 14 | - | 14 | 17 | % | |||||||||||||||||||||||||||||
Emerging markets (4) | - | 34 | - | 34 | 4 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Total equity securities | $ | 165 | $ | 407 | $ | - | $ | 572 | 63 | % | $ | - | $ | 66 | $ | - | $ | 66 | 79 | % | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds (5) | $ | - | $ | 207 | $ | - | $ | 207 | 23 | % | $ | - | $ | 17 | $ | - | $ | 17 | 20 | % | |||||||||||||||||||||
Other (or gov’t/muni bonds) | - | 29 | - | 29 | 3 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Total fixed income securities | $ | - | $ | 236 | $ | - | $ | 236 | 26 | % | $ | - | $ | 17 | $ | - | $ | 17 | 20 | % | |||||||||||||||||||||
Other types of investments: | |||||||||||||||||||||||||||||||||||||||||
Global hedged equity (6) | $ | - | $ | - | $ | 43 | $ | 43 | 5 | % | $ | - | $ | - | $ | - | $ | - | - | % | |||||||||||||||||||||
Absolute return (7) | - | - | 39 | 39 | 4 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Private capital (8) | - | - | 22 | 22 | 2 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Total other investments | $ | - | $ | - | $ | 104 | $ | 104 | 11 | % | $ | - | $ | - | $ | - | $ | - | - | % | |||||||||||||||||||||
Total assets at fair value | $ | 168 | $ | 644 | $ | 104 | $ | 916 | 100 | % | $ | 1 | $ | 83 | $ | - | $ | 84 | 100 | % | |||||||||||||||||||||
% of fair value hierarchy | 19 | % | 70 | % | 11 | % | 100 | % | 1 | % | 99 | % | - | % | 100 | % | |||||||||||||||||||||||||
-1 | Includes $9 million at December 31, 2014 and December 31, 2013 of medical benefit (health and welfare) component for 401h accounts to fund a portion of the other retirement benefits. | ||||||||||||||||||||||||||||||||||||||||
-2 | Includes funds that invest primarily in U.S. common stocks. | ||||||||||||||||||||||||||||||||||||||||
-3 | Includes funds that invest primarily in foreign equity and equity-related securities. | ||||||||||||||||||||||||||||||||||||||||
-4 | Includes funds that invest primarily in common stocks of emerging markets. | ||||||||||||||||||||||||||||||||||||||||
-5 | Includes funds that invest primarily in investment grade debt and fixed income securities. | ||||||||||||||||||||||||||||||||||||||||
-6 | Includes funds that invest in limited / general partnerships, managed accounts, and other investment entities issued by non-traditional firms or “hedge funds.” | ||||||||||||||||||||||||||||||||||||||||
-7 | Includes funds that invest primarily in investment vehicles and commodity pools as a “fund of funds.” | ||||||||||||||||||||||||||||||||||||||||
-8 | Includes funds that invest in private equity and small buyout funds, partnership investments, direct investments, secondary investments, directly / indirectly in real estate and may invest in equity securities of real estate related companies, real estate mortgage loans, and real estate mezzanine loans. | ||||||||||||||||||||||||||||||||||||||||
The following is a reconciliation of our retirement plan assets in Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||||||||||||||||||
Fair value measurements using significant unobservable inputs - Level 3 (1) | |||||||||||||||||||||||||||||||||||||||||
In millions | Global hedged equity | Absolute return | Private capital | Total | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 38 | $ | 36 | $ | 23 | $ | 97 | |||||||||||||||||||||||||||||||||
Actual return on plan assets | 5 | 3 | 4 | 12 | |||||||||||||||||||||||||||||||||||||
Sales | - | - | (5 | ) | (5 | ) | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 43 | $ | 39 | $ | 22 | $ | 104 | |||||||||||||||||||||||||||||||||
Actual return on plan assets | 1 | 3 | 2 | 6 | |||||||||||||||||||||||||||||||||||||
Sales | (15 | ) | - | (4 | ) | (19 | ) | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 29 | $ | 42 | $ | 20 | $ | 91 | |||||||||||||||||||||||||||||||||
(1)There were no transfers out of Level 3, or between Level 1 and Level 2 for any of the periods presented. | |||||||||||||||||||||||||||||||||||||||||
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 Consolidated Statements of Financial Position as of December 31. | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
In millions | Assets (1) | Liabilities | Assets (1) | Liabilities | |||||||||||||||||||||||||||||||||||||
Natural gas derivatives | |||||||||||||||||||||||||||||||||||||||||
Quoted prices in active markets (Level 1) | $ | 58 | $ | (80 | ) | $ | 6 | $ | (79 | ) | |||||||||||||||||||||||||||||||
Significant other observable inputs (Level 2) | 174 | (94 | ) | 67 | (79 | ) | |||||||||||||||||||||||||||||||||||
Netting of cash collateral | 52 | 81 | 43 | 78 | |||||||||||||||||||||||||||||||||||||
Total carrying value (2) (3) | $ | 284 | $ | (93 | ) | $ | 116 | $ | (80 | ) | |||||||||||||||||||||||||||||||
-1 | Balances of $3 million at December 31, 2014 and 2013 associated with certain weather derivatives have been excluded, as they are accounted for based on intrinsic value rather than fair value. | ||||||||||||||||||||||||||||||||||||||||
-2 | There were no significant unobservable inputs (Level 3) for any of the dates presented. | ||||||||||||||||||||||||||||||||||||||||
-3 | There were no significant transfers between Level 1, Level 2, or Level 3 for any of the dates presented. | ||||||||||||||||||||||||||||||||||||||||
Debt | |||||||||||||||||||||||||||||||||||||||||
Our long-term debt is recorded at amortized cost, with the exception of Nicor Gas’ first mortgage bonds, which are recorded at their acquisition-date fair value. We amortize the fair value adjustment of Nicor Gas’ first mortgage bonds over the lives of the bonds. The following table presents the carrying amount and fair value of our long-term debt as of December 31. | |||||||||||||||||||||||||||||||||||||||||
In millions | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Long-term debt carrying amount | $ | 3,802 | $ | 3,813 | |||||||||||||||||||||||||||||||||||||
Long-term debt fair value (1) | 4,231 | 3,956 | |||||||||||||||||||||||||||||||||||||||
-1 | Fair value determined using Level 2 inputs. | ||||||||||||||||||||||||||||||||||||||||
Note_5_Derivative_Instruments
Note 5 - Derivative Instruments | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 5 - Derivative Instruments | |||||||||||||||||
Our risk management activities are monitored by our Risk Management Committee, which consists of members of senior management and is charged with reviewing our risk management activities and enforcing policies. Our use of derivative instruments, including physical transactions, is limited to predefined risk tolerances associated with pre-existing or anticipated physical natural gas sales and purchases and system use and storage. We use the following types of derivative instruments and energy-related contracts to manage natural gas price, interest rate, weather, automobile fuel price and foreign currency risks when deemed appropriate: | ||||||||||||||||||
● | forward, futures and options contracts; | |||||||||||||||||
● | financial swaps; | |||||||||||||||||
● | treasury locks; | |||||||||||||||||
● | weather derivative contracts; | |||||||||||||||||
● | storage and transportation capacity contracts; and | |||||||||||||||||
● | foreign currency forward contracts | |||||||||||||||||
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 December 31, 2014 and 2013, for agreements with such features, derivative instruments with liability fair values totaled $93 million and $80 million, respectively, for which we had posted no collateral to our counterparties. The maximum collateral that could be required with these features is $14 million. For more information, see “Energy Marketing Receivables and Payables” in Note 2, which also have credit risk-related contingent features. Our derivative instrument activities are included within operating cash flows as an increase (decrease) to net income of $(155) million, $66 million and $72 million for the periods ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||
The following table summarizes the various ways in which we account for our derivative instruments and the impact on our 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 realized and unrealized 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 realized and unrealized 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 realized and unrealized on the derivative instrument and the hedged item are recognized in earnings. | ||||||||||||||||
Changes in fair value of the hedged item are recorded as adjustments to the carrying amount of the hedged item | 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 | |||||||||||||||||
Not designated as hedges | Derivative carried at fair value | Gains or losses realized and unrealized 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 realized and unrealized 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 | |||||||||||||||||
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. As of December 31, we had a net long natural gas contracts position outstanding in the following quantities: | ||||||||||||||||||
In Bcf (1) | 2014 (2) | 2013 | ||||||||||||||||
Cash flow hedges | 9 | 6 | ||||||||||||||||
Not designated as hedges | 75 | 183 | ||||||||||||||||
Total volumes | 84 | 189 | ||||||||||||||||
Short position – cash flow hedges | (4 | ) | (6 | ) | ||||||||||||||
Short position – not designated as hedges | (2,828 | ) | (2,616 | ) | ||||||||||||||
Long position – cash flow hedges | 16 | 12 | ||||||||||||||||
Long position – not designated as hedges | 2,900 | 2,799 | ||||||||||||||||
Net long position | 84 | 189 | ||||||||||||||||
-1 | Volumes related to Nicor Gas exclude variable-priced contracts, which are carried at fair value, but whose fair values are not directly impacted by changes in commodity prices. | |||||||||||||||||
-2 | Approximately 100% of these contracts have durations of two years or less and less than 1% expire between two and five years. | |||||||||||||||||
Derivative Instruments in ourConsolidated Statements of Financial Position | ||||||||||||||||||
In accordance with regulatory requirements, gains and losses on derivative instruments used to hedge natural gas purchases for customer use at distribution operations are reflected in accrued natural gas costs within our Consolidated Statements of Financial Position until billed to customers. The following amounts deferred as a regulatory asset or liability on our Consolidated Statements of Financial Position represent the net realized gains (losses) related to these natural gas cost hedges for the years ended December 31. | ||||||||||||||||||
In millions | 2014 | 2013 | ||||||||||||||||
Nicor Gas | $ | 10 | $ | 4 | ||||||||||||||
Elizabethtown Gas | $ | 2 | $ | (6 | ) | |||||||||||||
The following table presents the fair values and Consolidated Statements of Financial Position classifications of our derivative instruments as of December 31: | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
In millions | Classification | Assets | Liabilities | Assets | Liabilities | |||||||||||||
Designated as cash flow or fair value hedges | ||||||||||||||||||
Natural gas contracts | Current | $ | 6 | $ | (11 | ) | $ | 3 | $ | (1 | ) | |||||||
Natural gas contracts | Long-term | - | (1 | ) | - | - | ||||||||||||
Total designated as cash flow or fair value hedges | $ | 6 | $ | (12 | ) | $ | 3 | $ | (1 | ) | ||||||||
Not designated as hedges | ||||||||||||||||||
Natural gas contracts | Current | $ | 1,061 | $ | (1,020 | ) | $ | 691 | $ | (761 | ) | |||||||
Natural gas contracts | Long-term | 145 | (119 | ) | 206 | (220 | ) | |||||||||||
Total not designated as hedges | $ | 1,206 | $ | (1,139 | ) | $ | 897 | $ | (981 | ) | ||||||||
Gross amount of recognized assets and liabilities (1) (2) | 1,212 | (1,151 | ) | 900 | (982 | ) | ||||||||||||
Gross amounts offset in our Consolidated Statements of Financial Position(2) | (925 | ) | 1,058 | (781 | ) | 902 | ||||||||||||
Net amounts of assets and liabilities presented in ourConsolidated Statements of Financial Position (3) | $ | 287 | $ | (93 | ) | $ | 119 | $ | (80 | ) | ||||||||
-1 | The gross amounts of recognized assets and liabilities are netted within our 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 $133 million as of December 31, 2014 and $121 million as of December 31, 2013. Cash collateral is included in the “Gross amounts offset in our Consolidated Statements of Financial Position” line of this table. | |||||||||||||||||
-3 | At December 31, 2014 and 2013, we held letters of credit from counterparties that would offset, under master netting arrangements, an insignificant portion of these assets. | |||||||||||||||||
Derivative Instruments on the Consolidated Statements of Income | ||||||||||||||||||
The following table presents the impacts of our derivative instruments in our Consolidated Statements of Income for the years ended December 31. | ||||||||||||||||||
In millions | 2014 | 2013 | 2012 | |||||||||||||||
Designated as cash flow or fair value hedges | ||||||||||||||||||
Natural gas contracts – net gain (loss) reclassified from OCI into cost of goods sold | $ | 4 | $ | (1 | ) | $ | (5 | ) | ||||||||||
Natural gas contracts – net gain reclassified from OCI into operation and maintenance expense | 1 | - | - | |||||||||||||||
Interest rate swaps – net loss reclassified from OCI into interest expense | - | (3 | ) | (4 | ) | |||||||||||||
Income tax (expense)/benefit | (2 | ) | 1 | 3 | ||||||||||||||
Total designated as cash flow or fair value hedges, net of tax | $ | 3 | $ | (3 | ) | $ | (6 | ) | ||||||||||
Not designated as hedges (1) | ||||||||||||||||||
Natural gas contracts - net gain (loss) recorded in operating revenues | $ | 149 | $ | (90 | ) | $ | 34 | |||||||||||
Natural gas contracts - net gain (loss) recorded in cost of goods sold (2) | (7 | ) | 2 | (4 | ) | |||||||||||||
Income tax (expense)/benefit | (54 | ) | 34 | (11 | ) | |||||||||||||
Total not designated as hedges, net of tax | $ | 88 | $ | (54 | ) | $ | 19 | |||||||||||
Total gains (losses) on derivative instruments, net of tax | $ | 91 | $ | (57 | ) | $ | 13 | |||||||||||
-1 | Associated with the fair value of derivative instruments held at December 31, 2014, 2013 and 2012. | |||||||||||||||||
-2 | Excludes losses recorded in cost of goods sold associated with weather derivatives of $7 million, $5 million and $14 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
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 years ended December 31, 2014, 2013 and 2012. Our expected gains to be reclassified from OCI into cost of goods sold, operation and maintenance expense, interest expense and operating revenues and recognized in our Consolidated Statements of Income over the next 12 months are $7 million. These deferred gains are related to natural gas derivative contracts associated with retail operations’ and Nicor Gas’ system use. The expected gains are based upon the fair values of these financial instruments at December 31, 2014. The effective portion of gains and losses on derivative instruments qualifying as cash flow hedges that were recognized in OCI during the periods is presented on our Consolidated Statements of Income. See Note 9 for these amounts. |
Note_6_Employee_Benefit_Plans
Note 6 - Employee Benefit Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 6 - Employee Benefit Plans | ||||||||||||||||||||||||
Investment Policies, Strategies and Oversight of Plans | |||||||||||||||||||||||||
The Retirement Plan Investment Committee (the Committee) appointed by our Board of Directors is responsible for overseeing the investments of our defined benefit retirement plans. Further, we have an Investment Policy (the Policy) for our pension and welfare benefit plans whose goal is to preserve these plans’ capital and maximize investment earnings in excess of inflation within acceptable levels of capital market volatility. To accomplish this goal, the plans’ assets are managed to optimize long-term return while maintaining a high standard of portfolio quality and diversification. | |||||||||||||||||||||||||
In developing our allocation policy for the pension and welfare plan assets we examined projections of asset returns and volatility over a long-term horizon. In connection with this analysis, we evaluated the risk and return tradeoffs of alternative asset classes and asset mixes given long-term historical relationships as well as prospective capital market returns. We also conducted an asset-liability study to match projected asset growth with projected liability growth to determine whether there is sufficient liquidity for projected benefit payments. We developed our asset mix guidelines by incorporating the results of these analyses with an assessment of our risk posture, and taking into account industry practices. We periodically evaluate our investment strategy to ensure that plan assets are sufficient to meet the benefit obligations of the plans. As part of the ongoing evaluation, we may make changes to our targeted asset allocations and investment strategy. | |||||||||||||||||||||||||
Our investment strategy is designed to meet the following objectives: | |||||||||||||||||||||||||
• | Generate investment returns that, in combination with our funding contributions, provide adequate funding to meet all current and future benefit obligations of the plans. | ||||||||||||||||||||||||
• | Provide investment results that meet or exceed the assumed long-term rate of return, while maintaining the funded status of the plans at acceptable levels. | ||||||||||||||||||||||||
• | Improve funded status over time. | ||||||||||||||||||||||||
• | Decrease contribution and expense volatility as funded status improves. | ||||||||||||||||||||||||
To achieve these investment objectives, our investment strategy is divided into two primary portfolios of return seeking and liability hedging assets. Return seeking assets are intended to provide investment returns in excess of liability growth and reduce deficits in the funded status of the plans, while liability hedging assets are intended to reflect the sensitivity of the liabilities to changes in discount rates. | |||||||||||||||||||||||||
See Note 4 for a detailed listing of the investment types, amounts and percentages allocated to the plans. We will continue to diversify retirement plan investments to minimize the risk of large losses in a single asset class. We do not have a concentration of assets in a single entity, industry, country, commodity or class of investment fund. The Policy’s permissible investments include domestic and international equities (including convertible securities and mutual funds), domestic and international fixed income securities (corporate and government obligations), cash and cash equivalents and other suitable investments. | |||||||||||||||||||||||||
Equity market performance and corporate bond rates have a significant effect on our reported funded status. Changes in the projected benefit obligation (PBO) and accumulated postretirement benefit obligation (APBO) are mainly driven by the assumed discount rate. Additionally, equity market performance has a significant effect on our market-related value of plan assets (MRVPA), which is used by the AGL Plan to determine the expected return on the plan assets component of net annual pension cost. The MRVPA is a calculated value. Gains and losses on plan assets are spread through the MRVPA based on the five-year smoothing weighted average methodology. | |||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||
We sponsor the AGL Plan, which is a tax-qualified defined benefit retirement plan for our eligible employees. A defined benefit plan specifies the amount of benefits an eligible participant eventually will receive using information about the participant, including information related to the participant’s earnings history, years of service and age. In 2012, we also sponsored two other tax-qualified defined benefit retirement plans for our eligible employees, a Nicor plan and a NUI plan. Effective as of December 31, 2012, the NUI plan and the Nicor plan were merged into the AGL Plan. The participants of the former Nicor and NUI plans are now being offered their benefits, as described below, through the AGL Plan. | |||||||||||||||||||||||||
We generally calculate the benefits under the AGL Plan based on age, years of service and pay. The benefit formula for the AGL Plan is currently a career average earnings formula. Participants who were employees as of July 1, 2000 and who were at least 50 years of age as of that date earned benefits until December 31, 2010 under a final average pay formula. Participants who were employed as of July 1, 2000, but did not satisfy the age requirement to continue under the final average earnings formula, transitioned to the career average earnings formula on July 1, 2000. | |||||||||||||||||||||||||
Effective January 1, 2012, the AGL Plan was frozen with respect to participation for non-union employees hired on or after that date. Effective January 1, 2013, the AGL Plan was frozen with respect to participation for union employees hired on or after that date. Such employees are entitled to employer provided benefits under their defined contribution plan that exceed defined contribution benefits for employees who participate in the defined benefit plan. | |||||||||||||||||||||||||
Participants in the former Nicor plan receive noncontributory defined pension benefits. These benefits cover substantially all employees of Nicor Gas and its affiliates that adopted the Nicor plan hired prior to 1998. Pension benefits are based on years of service and the highest average annual salary for management employees and job level for collectively bargained employees (referred to as pension bands). The benefit obligation related to collectively bargained benefits reflects the most recent collective bargained agreement terms with regards to the benefit increases. | |||||||||||||||||||||||||
Participants in the former NUI plan included substantially all of NUI Corporation’s employees who were employed on or before December 31, 2005. Florida City Gas union employees, who until February 2008 participated in a union-sponsored multiemployer plan, became eligible to participate in the AGL Plan in February 2008. The AGL Plan provides pension benefits to NUI participants based on years of credited service and final average compensation as of the plan freeze date. Effective December 31, 2005, participation and benefit accrual under the NUI Plan were frozen. As of January 1, 2006, former participants in that plan became eligible to participate in the AGL Plan. | |||||||||||||||||||||||||
Welfare Benefits | |||||||||||||||||||||||||
Until December 31, 2012, we sponsored two defined benefit retiree health care plans for our eligible employees – the AGL Welfare Plan and the Nicor Welfare Benefit Plan (Nicor Welfare Plan). Eligibility for these benefits is based on age and years of service. Effective December 31, 2012, the Nicor Welfare Plan was terminated and as of January 1, 2013, all participants under that plan became eligible to participate in the AGL Welfare Plan. This change in plan participation eligibility did not affect the benefit terms. The Nicor Welfare Plan benefits described below are now being offered to such participants under the AGL Welfare Plan. Effective March 18, 2014, the Nicor Welfare Plan was closed to participation for all Nicor employees hired on or after that date. | |||||||||||||||||||||||||
The AGL Welfare Plan includes medical coverage for all eligible AGL Resources employees who were employed as of June 30, 2002, if they reach the plan’s retirement age while working for us. In addition, the AGL Welfare Plan provides life insurance for all employees if they have ten years of service at retirement. Effective March 18, 2014, the life insurance coverage is not available to new employees hired on or after that date. The state regulatory commissions have approved phase-in plans that defer a portion of the related benefits expense for future recovery. The AGL Welfare Plan terms include a limit on the employer share of costs at limits based on the coverage tier, plan elected and salary level of the employee at retirement. | |||||||||||||||||||||||||
Medicare eligible retirees covered by the AGL Welfare Plan, including all of those at least age 65, receive benefits through our contribution to a retiree health reimbursement arrangement account. Additionally, on the pre-65 medical coverage of the AGL Welfare Plan, our expected cost is determined by a retiree premium schedule based on salary level and years of service. Due to the cost limits, there is no impact on our periodic benefit cost or on our accumulated projected benefit obligation for a change in the assumed healthcare cost trend rate for this portion of the plan. | |||||||||||||||||||||||||
The plan provisions that are applicable to prior participants in the Nicor Welfare Plan include health care and life insurance benefits to eligible retired employees and include a limit on the employer share of cost for employees hired after 1982. | |||||||||||||||||||||||||
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 provides for a prescription drug benefit under Medicare Part D, as well as a federal subsidy to sponsors of retiree health care benefit plans that provide a benefit that is at least actuarially equivalent to Medicare Part D. Prescription drug coverage for the Nicor Gas Medicare-eligible population changed effective January 1, 2013 from an employer-sponsored prescription drug plan with the Retiree Drug Subsidy to an Employer Group Waiver Plan (EGWP). The EGWP replaces the employer sponsored prescription drug plan. | |||||||||||||||||||||||||
We also have a separate unfunded supplemental retirement health care plan that provides health care and life insurance benefits to employees of discontinued businesses. This plan is noncontributory with defined benefits. Net plan expenses were immaterial in 2014 and 2013. The APBO associated with this plan was $2 million at December 31, 2014 and $2 million at December 31, 2013. | |||||||||||||||||||||||||
Assumptions | |||||||||||||||||||||||||
We considered a variety of factors in determining and selecting our assumptions for the discount rate at December 31. We based our discount rates separately for each plan on an above-mean yield curve provided by our actuaries that is derived from a portfolio of high quality (rated AA or better) corporate bonds with a yield higher than the regression mean curve and the equivalent annuity cash flows. | |||||||||||||||||||||||||
The components of our pension and welfare costs are set forth in the following table. | |||||||||||||||||||||||||
Pension plans | Welfare plans | ||||||||||||||||||||||||
Dollars in millions | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 24 | $ | 29 | $ | 28 | $ | 2 | $ | 3 | $ | 4 | |||||||||||||
Interest cost | 47 | 43 | 44 | 15 | 14 | 16 | |||||||||||||||||||
Expected return on plan assets | (65 | ) | (62 | ) | (64 | ) | (7 | ) | (6 | ) | (5 | ) | |||||||||||||
Net amortization of prior service cost | (2 | ) | (2 | ) | (2 | ) | (3 | ) | (5 | ) | (3 | ) | |||||||||||||
Recognized actuarial loss | 22 | 35 | 34 | 6 | 8 | 9 | |||||||||||||||||||
Net periodic benefit cost | $ | 26 | $ | 43 | $ | 40 | $ | 13 | $ | 14 | $ | 21 | |||||||||||||
Assumptions used to determine benefit costs | |||||||||||||||||||||||||
Discount rate (1) | 5 | % | 4.2 | % | 4.6 | % | 4.7 | % | 4 | % | 4.5 | % | |||||||||||||
Expected return on plan assets (1) | 7.8 | % | 7.8 | % | 8.4 | % | 7.8 | % | 7.8 | % | 8.5 | % | |||||||||||||
Rate of compensation increase (1) | 3.7 | % | 3.7 | % | 3.7 | % | 3.7 | % | 3.8 | % | 3.8 | % | |||||||||||||
Pension band increase (2) | 2 | % | 2 | % | 2 | % | n/a | n/a | n/a | ||||||||||||||||
-1 | Rates are presented on a weighted average basis. | ||||||||||||||||||||||||
-2 | Only applicable to the Nicor Gas union employees. The pension bands for the former Nicor Plan have been updated to reflect the new negotiated rates for 2015 and 2016, of 2.0% and 0%, respectively, as indicated in the union agreement dated March 2014. | ||||||||||||||||||||||||
The following tables present details about our pension and welfare plans. | |||||||||||||||||||||||||
Pension plans | Welfare plans | ||||||||||||||||||||||||
Dollars in millions | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||
Fair value of plan assets, January 1, | $ | 907 | $ | 837 | $ | 93 | $ | 77 | |||||||||||||||||
Actual return on plan assets | 68 | 134 | 5 | 16 | |||||||||||||||||||||
Employee contributions | - | - | 2 | 3 | |||||||||||||||||||||
Employer contributions | 1 | 1 | 17 | 19 | |||||||||||||||||||||
Benefits paid | (70 | ) | (65 | ) | (19 | ) | (23 | ) | |||||||||||||||||
Medicare Part D reimbursements | - | - | 1 | 1 | |||||||||||||||||||||
Fair value of plan assets, December 31, | $ | 906 | $ | 907 | $ | 99 | $ | 93 | |||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||
Benefit obligation, January 1, | $ | 960 | $ | 1,046 | $ | 326 | $ | 354 | |||||||||||||||||
Service cost | 24 | 29 | 2 | 3 | |||||||||||||||||||||
Interest cost | 47 | 43 | 15 | 14 | |||||||||||||||||||||
Actuarial loss (gain) | 137 | (93 | ) | 8 | (26 | ) | |||||||||||||||||||
Medicare Part D reimbursements | - | - | 1 | 1 | |||||||||||||||||||||
Benefits paid | (70 | ) | (65 | ) | (19 | ) | (23 | ) | |||||||||||||||||
Employee contributions | - | - | 1 | 3 | |||||||||||||||||||||
Benefit obligation, December 31, | $ | 1,098 | $ | 960 | $ | 334 | $ | 326 | |||||||||||||||||
Funded status at end of year | $ | (192 | ) | $ | (53 | ) | $ | (235 | ) | $ | (233 | ) | |||||||||||||
Amounts recognized in the Consolidated Statements of Financial Position consist of | |||||||||||||||||||||||||
Long-term asset (2) | $ | 97 | $ | 117 | $ | - | $ | - | |||||||||||||||||
Current liability | (2 | ) | (2 | ) | - | - | |||||||||||||||||||
Long-term liability | (287 | ) | (168 | ) | (235 | ) | (233 | ) | |||||||||||||||||
Net liability at December 31, | $ | (192 | ) | $ | (53 | ) | $ | (235 | ) | $ | (233 | ) | |||||||||||||
Accumulated benefit obligation (1) | $ | 1,027 | $ | 902 | n/a | n/a | |||||||||||||||||||
Assumptions used to determine benefit obligations | |||||||||||||||||||||||||
Discount rate | 4.2 | % | 5 | % | 4 | % | 4.7 | % | |||||||||||||||||
Rate of compensation increase | 3.7 | % | 3.7 | % | 3.7 | % | 3.7 | % | |||||||||||||||||
Pension band increase (3) | 2 | % | 2 | % | n/a | n/a | |||||||||||||||||||
-1 | APBO differs from the projected benefit obligation in that APBO excludes the effect of salary and wage increases. | ||||||||||||||||||||||||
-2 | As a result of historically having multiple plans, a portion of our obligation is in an asset position. | ||||||||||||||||||||||||
-3 | Only applicable to the Nicor Gas union employees. | ||||||||||||||||||||||||
A portion of the net benefit cost or credit related to these plans has been capitalized as a cost of constructing gas distribution facilities and the remainder is included in operation and maintenance expense. | |||||||||||||||||||||||||
Assumptions used to determine the health care benefit cost for the AGL Welfare Plan were as follows: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Health care cost trend rate assumed for next year | 8.1 | % | 8.4 | % | |||||||||||||||||||||
Ultimate rate to which the cost trend rate is assumed to decline | 4.5 | % | 4.5 | % | |||||||||||||||||||||
Year that reaches ultimate trend rate | 2030 | 2030 | |||||||||||||||||||||||
Assumed health care cost trend rates can have a significant effect on the amounts reported for the health care plans. A one percentage point change in the assumed health care cost trend rates for the AGL Welfare Plan would have the following effects on our benefit obligation and there was no effect on our service and interest cost. | |||||||||||||||||||||||||
In millions | Effect on benefit obligation | ||||||||||||||||||||||||
1% Health care cost trend rate increase | $ | 15 | |||||||||||||||||||||||
1% Health care cost trend rate decrease | (13 | ) | |||||||||||||||||||||||
As a result of a cap on expected cost for the AGL Welfare Plan, a one percentage point increase or decrease in the assumed health care trend does not materially affect the Plan’s periodic benefit cost or accumulated benefit obligation. | |||||||||||||||||||||||||
The following table presents the amounts not yet reflected in net periodic benefit cost and included in net regulatory assets and accumulated OCI as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
Net regulatory assets | Accumulated OCI | Total | |||||||||||||||||||||||
In millions | Pension plans | Welfare plans | Pension plans | Welfare plans | Pension plans | Welfare plans | |||||||||||||||||||
December 31, 2014: | |||||||||||||||||||||||||
Prior service credit | $ | - | $ | (18 | ) | $ | (6 | ) | $ | - | $ | (6 | ) | $ | (18 | ) | |||||||||
Net loss | 76 | 57 | 307 | 36 | 383 | 93 | |||||||||||||||||||
Total | $ | 76 | $ | 39 | $ | 301 | $ | 36 | $ | 377 | $ | 75 | |||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Prior service credit | $ | - | $ | (20 | ) | $ | (9 | ) | $ | - | $ | (9 | ) | $ | (20 | ) | |||||||||
Net loss | 61 | 60 | 210 | 30 | 271 | 90 | |||||||||||||||||||
Total | $ | 61 | $ | 40 | $ | 201 | $ | 30 | $ | 262 | $ | 70 | |||||||||||||
The 2015 estimated amortizations out of regulatory assets or accumulated OCI for these plans are set forth in the following table. | |||||||||||||||||||||||||
Net Regulatory Asset | Accumulated OCI | Total | |||||||||||||||||||||||
In millions | Pension plans | Welfare plans | Pension plans | Welfare plans | Pension plans | Welfare plans | |||||||||||||||||||
Amortization of prior service credit | $ | - | $ | (3 | ) | $ | (2 | ) | $ | - | $ | (2 | ) | $ | (3 | ) | |||||||||
Amortization of net loss | 9 | 3 | 20 | 2 | 29 | 5 | |||||||||||||||||||
We recorded regulatory assets for anticipated future cost recoveries of $122 million and $108 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
The following table presents the gross benefit payments expected for the years ended December 31, 2015 through 2024 for our pension and welfare plans. There will be benefit payments under these plans beyond 2024. | |||||||||||||||||||||||||
In millions | Pension plans | Welfare plans | |||||||||||||||||||||||
2015 | $ | 61 | $ | 19 | |||||||||||||||||||||
2016 | 64 | 20 | |||||||||||||||||||||||
2017 | 67 | 20 | |||||||||||||||||||||||
2018 | 70 | 21 | |||||||||||||||||||||||
2019 | 72 | 22 | |||||||||||||||||||||||
2020-2024 | 374 | 115 | |||||||||||||||||||||||
Contributions | |||||||||||||||||||||||||
Our employees generally do not contribute to our pension and welfare plans; however, Nicor Gas and pre-65 AGL retirees make nominal contributions to their health care plan. We fund the qualified pension plans by contributing at least the minimum amount required by applicable regulations and as recommended by our actuary. However, we may also contribute in excess of the minimum required amount. As required by The Pension Protection Act of 2006 (the Act), we calculate the minimum amount of funding using the traditional unit credit cost method. | |||||||||||||||||||||||||
The Act contained new funding requirements for single-employer defined benefit pension plans and established a 100% funding target (over a 7-year amortization period) for plan years beginning after December 31, 2007. In 2014 and 2013, we had no required contributions to the merged AGL Plan. | |||||||||||||||||||||||||
Employee Savings Plan Benefits | |||||||||||||||||||||||||
We sponsor defined contribution retirement benefit plans that allow eligible participants to make contributions to their accounts up to specified limits. Under these plans, our matching contributions to participant accounts were $17 million in 2014, $14 million in 2013 and $12 million in 2012. |
Note_7_Stockbased_Compensation
Note 7 - Stock-based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 7 – Stock-Based Compensation | ||||||||||||||||
General | |||||||||||||||||
The AGL Resources Inc. Omnibus Performance Incentive Plan, as amended and restated, and the Long-Term Incentive Plan (1999) provide for the grant of incentive and nonqualified stock options, stock appreciation rights, shares of restricted stock, restricted stock units, performance cash awards and other stock-based awards to officers and key employees. Under the Omnibus Performance Incentive Plan, as of December 31, 2014, the number of shares issuable upon exercise of outstanding stock options, warrants and rights is 587,292 shares. Under the Long-Term Incentive Plan (1999) as of December 31, 2014, the number of shares issuable upon exercise of outstanding stock options, warrants and rights is 436,400 shares. The maximum number of shares available for future issuance under the Omnibus Performance Incentive Plan is 3,962,335 shares, which includes 1,551,040 shares previously available under the Nicor Inc. 2006 Long-Term Incentive Plan, as amended, pursuant to NYSE rules. No further grants will be made from the Long-Term Incentive Plan (1999) except for reload options that may be granted pursuant to the terms of certain outstanding options. | |||||||||||||||||
Accounting Treatment and Compensation Expense | |||||||||||||||||
We measure and recognize stock-based compensation expense for our stock-based awards over the requisite service period in our financial statements based on the estimated fair value at the date of grant for our stock-based awards using the modified prospective method. These stock awards include: | |||||||||||||||||
● | stock options; | ||||||||||||||||
● | stock and restricted stock awards; and | ||||||||||||||||
● | performance units (restricted stock units, performance share units and performance cash units). | ||||||||||||||||
Performance-based stock awards and performance units contain market and performance conditions. Stock options, restricted stock awards and performance units also contain a service condition. | |||||||||||||||||
We estimate forfeitures over the requisite service period when recognizing compensation expense. These estimates are adjusted to the extent that actual forfeitures differ, or are expected to materially differ, from such estimates. The authoritative guidance requires excess tax benefits to be reported as a financing cash inflow. The difference between the proceeds from the exercise of our stock-based awards and the par value of the stock is recorded within additional paid-in capital. | |||||||||||||||||
We have granted incentive and nonqualified stock options with a strike price equal to the fair market value on the date of the grant. Fair market value is defined under the terms of the applicable plans as the closing price per share of AGL Resources common stock for the trading day immediately preceding the grant date, as reported in The Wall Street Journal. Stock options generally have a three-year vesting period. | |||||||||||||||||
The following table provides additional information related to our cash and stock-based compensation awards. | |||||||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||||||
Compensation costs (1) | $ | 24 | $ | 22 | $ | 9 | |||||||||||
Income tax benefits (1) | 1 | 1 | 1 | ||||||||||||||
Excess tax benefits (2) | - | - | 1 | ||||||||||||||
-1 | Recorded in our Consolidated Statements of Income. | ||||||||||||||||
-2 | Recorded in our Consolidated Statements of Financial Position. | ||||||||||||||||
Incentive and Nonqualified Stock Options | |||||||||||||||||
The stock options we granted generally expire 10 years after the date of grant. Participants realize value from option grants only to the extent that the fair market value of our common stock on the date of exercise of the option exceeds the fair market value of the common stock on the date of the grant. | |||||||||||||||||
As of December 31, 2014 and 2013, we had no unrecognized compensation costs related to stock options. Cash received from stock option exercises for 2014 and 2013 were $9 million and $21 million, respectively, and the income tax benefit from stock option exercises was immaterial for both years. The following tables summarize activity related to stock options for key employees and non-employee directors. As used in the table, intrinsic value for options means the difference between the current market value and the grant price. | |||||||||||||||||
Stock Options | |||||||||||||||||
Number of options | Weighted average exercise price | Weighted average remaining life | Aggregate intrinsic value (in millions) | ||||||||||||||
(in years) | |||||||||||||||||
Outstanding - December 31, 2011 | 1,823,154 | $ | 35.61 | ||||||||||||||
Granted | - | - | |||||||||||||||
Exercised | (234,844 | ) | 32.07 | ||||||||||||||
Forfeited | (59,720 | ) | 37.34 | ||||||||||||||
Outstanding - December 31, 2012(1) | 1,528,590 | $ | 36.09 | ||||||||||||||
Granted | - | - | |||||||||||||||
Exercised | (617,358 | ) | 35.37 | ||||||||||||||
Forfeited | (12,500 | ) | 38.36 | ||||||||||||||
Outstanding - December 31, 2013 (1) | 898,732 | $ | 36.55 | 3 | $ | 10 | |||||||||||
Granted | - | - | - | ||||||||||||||
Exercised | (267,182 | ) | 36.84 | 1.7 | |||||||||||||
Forfeited | (4,000 | ) | 39.71 | 2.7 | |||||||||||||
Outstanding - December 31, 2014 (1) (2) | 627,550 | $ | 36.41 | 2.2 | $ | 11 | |||||||||||
-1 | All options outstanding at December 31, 2014, 2013 and 2012 were exercisable. | ||||||||||||||||
-2 | The range of exercise prices for the options outstanding at December 31, 2014 was $31.09 to $43.54. | ||||||||||||||||
We measure compensation cost related to stock options based on the fair value of these awards at their date of grant using the Black-Scholes option-pricing model. There were no options granted in 2014, 2013 and 2012. We use shares purchased under our 2006 share repurchase program to satisfy exercises to the extent that repurchased shares are available. Otherwise, we issue new shares from our authorized common stock. | |||||||||||||||||
Performance Units | |||||||||||||||||
In general, a performance unit is an award of the right to receive (i) an equal number of shares of our common stock, which we refer to as a restricted stock unit or (ii) cash, subject to the achievement of certain pre-established performance criteria, which we refer to as a performance cash unit. Performance units are subject to certain transfer restrictions and forfeiture upon termination of employment. The compensation cost of restricted stock unit awards is equal to the grant date fair value of the awards, recognized over the requisite service period, determined according to the authoritative guidance related to stock compensation. The compensation cost of performance cash unit awards is equal to the grant date fair value of the awards measured against progress towards the performance measure, recognized over the requisite service period. No other assumptions are used to value these awards. | |||||||||||||||||
Restricted Stock Units In general, a restricted stock unit is an award that represents the opportunity to receive a specified number of shares of our common stock, subject to the achievement of certain pre-established performance criteria. In 2014, we granted 44,272 restricted stock units (including dividends) to certain employees, all of which were outstanding as of December 31, 2014. These restricted stock units had a performance measurement period that ended December 31, 2014. The performance measure, which related to earnings before interest, income tax, depreciation and amortization, was met. As such, the related restricted stock awards will occur in 2015 and are subject to a three year service condition. | |||||||||||||||||
Performance Share Unit Awards A performance share unit award represents the opportunity to receive cash and shares subject to the achievement of certain pre-established performance criteria. In 2012, 2013 and 2014, we granted performance share unit awards to certain officers. These awards have a performance measure that relates to the company’s relative total shareholder return relative to a group of peer companies. The recorded liability and maximum potential liability related to the 2014, 2013 and 2012 grants are as follows: | |||||||||||||||||
In millions | Measurement period end date | Fair value accrued at December 31, 2014 | Maximum aggregate payout | ||||||||||||||
Granted in 2012 | December 31, 2014 (1) | $ | 8 | $ | 20 | ||||||||||||
Granted in 2013 | 31-Dec-15 | 7 | 21 | ||||||||||||||
Granted in 2014 | 31-Dec-16 | 4 | 24 | ||||||||||||||
(1)The actual liability is $8 million, and the maximum amount that could have been paid was $20 million. | |||||||||||||||||
Stock and Restricted Stock Awards | |||||||||||||||||
The compensation cost of both stock awards and restricted stock awards is equal to the grant date fair value of the awards, recognized over the requisite service period. No other assumptions are used to value the awards. We refer to restricted stock as an award of our common stock that is subject to time-based vesting or achievement of performance measures. Prior to vesting, restricted stock awards are subject to certain transfer restrictions and forfeiture upon termination of employment. | |||||||||||||||||
Stock Awards -Non-Employee Directors Non-employee director compensation may be paid in shares of our common stock in connection with initial election, the annual retainer, and chair retainers, as applicable. Stock awards for non-employee directors are 100% vested and non-forfeitable as of the date of grant. During 2014, we issued 21,903 shares with a weighted average fair value of $52.97 to our non-employee directors. | |||||||||||||||||
Restricted Stock Awards -Employees The following table summarizes the restricted stock awards activity for our employees during the last three years. | |||||||||||||||||
Shares of restricted stock | Weighted average remaining vesting period (in years) | Weighted average fair value | |||||||||||||||
Outstanding - December 31, 2011 (1) | 477,354 | $ | 34.4 | ||||||||||||||
Issued | 268,840 | 40.08 | |||||||||||||||
Forfeited | (28,829 | ) | 39.07 | ||||||||||||||
Vested | (214,274 | ) | 36.45 | ||||||||||||||
Outstanding - December 31, 2012 (1) | 503,091 | $ | 39.44 | ||||||||||||||
Issued | 175,935 | 42.41 | |||||||||||||||
Forfeited | (33,352 | ) | 40.64 | ||||||||||||||
Vested | (204,421 | ) | 38.71 | ||||||||||||||
Outstanding - December 31, 2013 (1) | 441,253 | 1.8 | $ | 40.82 | |||||||||||||
Issued | 262,235 | 4.4 | 47.03 | ||||||||||||||
Forfeited | (14,895 | ) | 2.4 | 43.41 | |||||||||||||
Vested | (225,683 | ) | - | 42.31 | |||||||||||||
Outstanding - December 31, 2014 (1) | 462,910 | 1.8 | $ | 43.54 | |||||||||||||
-1 | Subject to restriction. | ||||||||||||||||
Employee Stock Purchase Plan (ESPP) | |||||||||||||||||
We have a nonqualified, broad based ESPP for all eligible employees. As of December 31, 2014, there were 422,564 shares available for future issuance under this plan. Employees may purchase shares of our common stock in quarterly intervals at 85% of fair market value, and we record an expense for the 15% purchase price discount. Employee ESPP contributions may not exceed $25,000 per employee during any calendar year. | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Shares purchased on the open market | 100,199 | 97,734 | 103,589 | ||||||||||||||
Average per-share purchase price | $ | 51.6 | $ | 42.96 | $ | 38.96 | |||||||||||
Total purchase price discount | $ | 739,598 | $ | 628,358 | $ | 591,855 | |||||||||||
Note_8_Debt_and_Credit_Facilit
Note 8 - Debt and Credit Facilities | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
Debt Disclosure [Text Block] | Note 8 - Debt and Credit Facilities | ||||||||||||||||||||
Our financing activities, including long-term and short-term debt, are subject to customary approval or review by state and federal regulatory bodies. Our wholly owned subsidiary, AGL Capital, was established to provide for our ongoing financing needs through a commercial paper program, the issuance of various debt and hybrid securities and other financing arrangements. We fully and unconditionally guarantee all debt issued by AGL Capital. Nicor Gas is not permitted by regulation to make loans to affiliates or utilize AGL Capital for its financing needs. 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 Consolidated Statements of Financial Position. | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Dollars in millions | Year(s) due | Weighted average | Outstanding | Weighted average | Outstanding | ||||||||||||||||
interest rate (1) | interest rate (1) | ||||||||||||||||||||
Short-term debt | |||||||||||||||||||||
Commercial paper - AGL Capital (2) | 2015 | 0.3 | % | $ | 590 | 0.4 | % | $ | 857 | ||||||||||||
Commercial paper - Nicor Gas (2) | 2015 | 0.2 | 585 | 0.3 | 314 | ||||||||||||||||
Total short-term debt | 0.3 | % | $ | 1,175 | 0.4 | % | $ | 1,171 | |||||||||||||
Current portion of long-term debt | 2015 | 5 | % | $ | 200 | - | % | $ | - | ||||||||||||
Long-term debt - excluding current portion | |||||||||||||||||||||
Senior notes | 2016-2043 | 5 | % | $ | 2,625 | 5 | % | $ | 2,825 | ||||||||||||
First mortgage bonds | 2016-2038 | 5.6 | 500 | 5.6 | 500 | ||||||||||||||||
Gas facility revenue bonds | 2022-2033 | 0.9 | 200 | 1 | 200 | ||||||||||||||||
Medium-term notes | 2017-2027 | 7.8 | 181 | 7.8 | 181 | ||||||||||||||||
Total principal long-term debt | 4.9 | % | $ | 3,506 | 4.9 | % | $ | 3,706 | |||||||||||||
Fair value adjustment of long-term debt (3) | 2016-2038 | n/a | 80 | n/a | 91 | ||||||||||||||||
Unamortized debt premium, net | n/a | n/a | 16 | n/a | 16 | ||||||||||||||||
Total non-principal long-term debt | n/a | 96 | n/a | 107 | |||||||||||||||||
Total long-term debt | $ | 3,602 | $ | 3,813 | |||||||||||||||||
Total debt | $ | 4,977 | $ | 4,984 | |||||||||||||||||
-1 | Interest rates are calculated based on the daily weighted average balance outstanding for the 12 months ended December 31, 2014 and 2013. | ||||||||||||||||||||
-2 | As of December 31, 2014, the effective interest rates on our commercial paper borrowings were 0.5% for AGL Capital and 0.4% for Nicor Gas. | ||||||||||||||||||||
-3 | See Note 4 for additional information on our fair value measurements. | ||||||||||||||||||||
Short-term Debt | |||||||||||||||||||||
Our short-term debt at December 31, 2014 and 2013 was comprised of borrowings under our commercial paper programs. | |||||||||||||||||||||
Commercial Paper Programs We maintain commercial paper programs at AGL Capital and at Nicor Gas that consist of short-term, unsecured promissory notes used in conjunction with cash from operations to fund our seasonal working capital requirements. Working capital needs fluctuate during the year and are highest during the injection period in advance of the Heating Season. The Nicor Gas commercial paper program supports working capital needs at Nicor Gas, while all of our other subsidiaries and SouthStar participate in the AGL Capital commercial paper program. During 2014, our commercial paper maturities ranged from 1 to 108 days, and at December 31, 2014, remaining terms to maturity ranged from 2 to 70 days. During 2014, total borrowings and repayments netted to a borrowing of $4 million. For commercial paper issuances with original maturities over three months, borrowings and repayments were $50 million and $195 million, respectively. During 2014, we utilized a portion of the approximately $225 million in proceeds and distributions from the sale of Tropical Shipping to reduce our commercial paper borrowings. | |||||||||||||||||||||
Credit FacilitiesAt December 31, 2014 and 2013, there were no outstanding borrowings under either the AGL Capital or Nicor Gas credit facilities. In 2013, the AGL Credit Facility and Nicor Gas Credit Facility maturity dates were extended to November 10, 2017 and December 15, 2017, respectively. The terms, conditions and pricing under the agreements remain unchanged. | |||||||||||||||||||||
Current Portion of Long-term DebtThe current portion of our long-term debt at December 31, 2014 is composed of the portion of our long-term debt due within the next 12 months. | |||||||||||||||||||||
Long-term Debt | |||||||||||||||||||||
Our long-term debt at December 31, 2014 and 2013 consisted of medium-term notes: Series A, Series B, and Series C, which we issued under an indenture dated December 1, 1989; senior notes; first mortgage bonds; and gas facility revenue bonds. Some of these issuances were completed in the private placement market. In determining that those specific bonds qualify for exemption from registration under Section 4(2) of the Securities Act of 1933, we relied on the facts that the bonds were offered only to a limited number of large institutional investors and each institutional investor that purchased the bonds represented that it was purchasing the bonds for its own account and not with a view to distribute them. We fully and unconditionally guarantee all of our senior notes and gas facility revenue bonds. Additionally, substantially all of Nicor Gas’ properties are subject to the lien of the indenture securing its first mortgage bonds. | |||||||||||||||||||||
The majority of our long-term debt matures after fiscal year 2019. The annual maturities of our long-term debt for the next five years and thereafter are as follows: | |||||||||||||||||||||
Year | Amount | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||
2015 | $ | 200 | |||||||||||||||||||
2016 | 545 | ||||||||||||||||||||
2017 | 22 | ||||||||||||||||||||
2018 | 155 | ||||||||||||||||||||
2019 | 350 | ||||||||||||||||||||
Thereafter | 2,434 | ||||||||||||||||||||
Total | $ | 3,706 | |||||||||||||||||||
Senior Notes There were no senior note issuances in 2014; however, during the fourth quarter of 2014, $120 million of senior notes that were issued to help fund the Nicor merger converted from a 1.9% fixed rate to a LIBOR-based floating rate. In 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. | |||||||||||||||||||||
On January 23, 2015, we executed $800 million in notional value of 10 year and 30 year fixed-rate forward-starting interest rate swaps to hedge potential interest rate volatility prior to anticipated issuances of senior notes during 2015 and 2016. These debt issuances will be used to reduce our commercial paper for the amount that was borrowed to repay our senior notes that matured in January 2015 and to fund upcoming debt maturities as well as capital expenditures associated with increased utility investment and construction of our new pipeline projects. We have designated the forward-starting interest rate swaps, which will be settled on the debt issuance dates, as cash flow hedges. | |||||||||||||||||||||
First Mortgage Bonds We acquired the first mortgage bonds of Nicor Gas, which were issued through the public and private placement markets, as a result of the 2011 merger. | |||||||||||||||||||||
Gas Facility Revenue Bonds We are party to a series of loan agreements with the New Jersey Economic Development Authority and Brevard County, Florida under which a series of gas facility revenue bonds has been issued. These revenue bonds are issued by state agencies or counties to investors, and proceeds from the issuance are then loaned to us. | |||||||||||||||||||||
During 2013, we refinanced $200 million of our outstanding tax-exempt gas facility revenue bonds, which 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. We 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. | |||||||||||||||||||||
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 pension adjustments, welfare benefits liability adjustments and accounting adjustments for cash flow hedges. Adjusting for these items, the following table contains our debt-to-capitalization ratios as of December 31, which are below the maximum allowed. | |||||||||||||||||||||
AGL Resources | Nicor Gas | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Debt-to-capitalization ratio | 55 | % | 57 | % | 62 | % | 55 | % | |||||||||||||
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 the following: | |||||||||||||||||||||
● | a maximum leverage ratio | ||||||||||||||||||||
● | insolvency events and/or 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, as of December 31, 2014 and 2013. |
Note_9_Equity
Note 9 - Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | Note 9 - Equity | ||||||||||||
Treasury Shares | |||||||||||||
Our Board of Directors authorized us to purchase up to 8 million treasury shares through our repurchase plan, which expired on January 31, 2011. This plan was used to offset shares issued under our employee and non-employee director incentive compensation plans and our dividend reinvestment and stock purchase plans. Stock purchases under this plan were made in the open market or in private transactions at times and in amounts that we deemed appropriate. We held the purchased shares as treasury shares and accounted for them using the cost method. We purchased no treasury shares in 2014 or 2013. | |||||||||||||
Preferred Securities | |||||||||||||
At December 31, 2014 and 2013, we had 10 million shares of authorized, unissued Class A junior participating preferred stock, no par value, and 10 million shares of authorized, unissued preferred stock, no par value. | |||||||||||||
Dividends | |||||||||||||
Our common shareholders may receive dividends when declared at the discretion of our Board of Directors. Dividends may be paid in cash, stock or other form of payment, and payment of future dividends will depend on our future earnings, cash flow, financial requirements and other factors. | |||||||||||||
Additionally, we derive a substantial portion of our consolidated assets, earnings and cash flow from the operation of regulated utility subsidiaries, whose legal authority to pay dividends or make other distributions to us is subject to regulation. As with most other companies, the payment of dividends is restricted by laws in the states where we conduct business. In certain cases, our ability to pay dividends to our common shareholders is limited by (i) our ability to pay our debts as they become due in the usual course of business and satisfy our obligations under certain financing agreements, including our debt-to-capitalization covenant, (ii) our ability to maintain total assets below total liabilities, and (iii) our ability to satisfy our obligations to any preferred shareholders. | |||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||
Our share of comprehensive income includes net income plus OCI (loss), which includes changes in fair value of certain derivatives designated as cash flow hedges, certain changes in pension and welfare benefit plans and reclassifications for amounts included in net income less net income, and OCI attributable to the noncontrolling interest. For more information on our derivative instruments, see Note 5. For more information on our pensions and retirement benefit obligations, see Note 6. Our OCI (loss) amounts are aggregated within accumulated other comprehensive loss on our Consolidated Statement of Financial Position. The following table provides changes in the components of our accumulated other comprehensive loss balances net of the related income tax effects. | |||||||||||||
In millions (1) | Cash flow hedges | Retirement benefit plans | Total | ||||||||||
Balance as of December 31, 2011 | $ | (7 | ) | $ | (210 | ) | $ | (217 | ) | ||||
Other comprehensive income (loss) | 4 | (5 | ) | (1 | ) | ||||||||
Balance as of December 31, 2012 | (3 | ) | (215 | ) | (218 | ) | |||||||
Other comprehensive income, before reclassifications | 1 | 66 | 67 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 3 | 12 | 15 | ||||||||||
Balance as of December 31, 2013 | 1 | (137 | ) | (136 | ) | ||||||||
Other comprehensive loss, before reclassifications | (6 | ) | (71 | ) | (77 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | (1 | ) | 8 | 7 | |||||||||
Balance as of December 31, 2014 | $ | (6 | ) | $ | (200 | ) | $ | (206 | ) | ||||
-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 years ended December 31, 2014 and 2013 and the ultimate unfavorable impact on net income. | |||||||||||||
December 31, | |||||||||||||
In millions (1) | 2014 | 2013 | |||||||||||
Cash flow hedges | |||||||||||||
Cost of goods sold (natural gas contracts) | $ | 4 | $ | (1 | ) | ||||||||
Operation and maintenance expense (natural gas contracts) | 1 | - | |||||||||||
Interest expense (interest rate contracts) | - | (3 | ) | ||||||||||
Total before income tax | 5 | (4 | ) | ||||||||||
Income tax (expense)/benefit | (2 | ) | 1 | ||||||||||
Cash flow hedges net of income tax | 3 | (3 | ) | ||||||||||
Less noncontrolling interest | 2 | - | |||||||||||
Total cash flow hedges net of income tax | 1 | (3 | ) | ||||||||||
Retirement benefit plans | |||||||||||||
Operation and maintenance expense (actuarial losses)(2) | (15 | ) | (25 | ) | |||||||||
Operation and maintenance expense (prior service credits) (2) | 2 | 5 | |||||||||||
Total before income tax | (13 | ) | (20 | ) | |||||||||
Income tax benefit | 5 | 8 | |||||||||||
Total retirement benefit plans | (8 | ) | (12 | ) | |||||||||
Total reclassification | $ | (7 | ) | $ | (15 | ) | |||||||
-1 | Amounts in parentheses indicate reductions to our net income and to accumulated other comprehensive loss. Except for retirement benefit plan amounts, the net income impacts are immediate. | ||||||||||||
-2 | Amortization of these accumulated other comprehensive loss components is included in the computation of net periodic benefit cost. See Note 6 for additional details about net periodic benefit cost. | ||||||||||||
Note_10_Nonwholly_Owned_Entiti
Note 10 - Non-wholly Owned Entities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||
Noncontrolling Interest Disclosure [Text Block] | Note 10 - Non-Wholly Owned Entities | ||||||||||||||||||||||||
Variable Interest Entities | |||||||||||||||||||||||||
On a quarterly basis, we evaluate our variable interests in other entities, primarily ownership interests, to determine if they represent a variable interest entity (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 by us and Piedmont, is our only VIE for which we are the primary beneficiary. This requires us to consolidate its assets, liabilities and Statements of Income. Our conclusion that SouthStar is a VIE resulted from our equal voting rights with Piedmont not being proportional to our economic obligation to absorb 85% of losses or residual returns from the joint venture. We account for our ownership of SouthStar in accordance with authoritative accounting guidance, which is described within Note 2. | |||||||||||||||||||||||||
SouthStar markets natural gas and related services under the trade name Georgia Natural Gas to customers in Georgia, and under various other trade names to customers in Illinois, Ohio, Florida, Maryland, Michigan and New York. Following are additional factors we considered in determining that we have the power to direct SouthStar’s activities that most significantly impact its performance. | |||||||||||||||||||||||||
Operations | |||||||||||||||||||||||||
Our wholly owned subsidiaries Nicor Gas and Atlanta Gas Light provide the following services, which affect SouthStar’s operations: | |||||||||||||||||||||||||
● | meter reading for SouthStar’s customers in Illinois and Georgia | ||||||||||||||||||||||||
● | maintenance and expansion of the natural gas infrastructure in Illinois and Georgia | ||||||||||||||||||||||||
● | assignment of storage and transportation capacity used in delivering natural gas to SouthStar’s customers | ||||||||||||||||||||||||
Liquidity and capital resources | |||||||||||||||||||||||||
● | guarantees of SouthStar’s activities with, and its credit exposure to, its counterparties and to certain natural gas suppliers in support of SouthStar’s payment obligations | ||||||||||||||||||||||||
● | support of SouthStar’s daily cash management activities and assistance ensuring SouthStar has adequate liquidity and working capital resources by allowing SouthStar to utilize the AGL Capital commercial paper program for its liquidity and working capital requirements in accordance with our services agreement | ||||||||||||||||||||||||
Back office functions | |||||||||||||||||||||||||
● | accounting, information technology, legal, human resources, credit and internal controls services in accordance with our services agreement | ||||||||||||||||||||||||
SouthStar’s earnings are allocated entirely in accordance with the ownership interests and are seasonal in nature, with the majority 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. SouthStar’s current liabilities consist primarily of accrued natural gas costs, other accrued expenses, customer deposits, derivative instruments and payables to us from its participation in AGL Capital’s commercial paper program. | |||||||||||||||||||||||||
SouthStar’s 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. As a result, our maximum exposure to a loss at SouthStar is considered to be immaterial. 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 and the aforementioned limited protections related to goodwill and intangible assets, 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 in our operating cash flows are also attributable to SouthStar’s working capital changes 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. | |||||||||||||||||||||||||
Cash flows used in our investing activities include capital expenditures for SouthStar for the year ended December 31, of $7 million for 2014, $3 million for 2013 and $1 million for 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 years ended December 31, 2014, 2013 and 2012, SouthStar distributed $17 million, $17 million and $14 million to Piedmont, respectively. | |||||||||||||||||||||||||
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 the noncontrolling interest on our Consolidated Statements of Financial Position and a financing activity on our Consolidated Statements of Cash Flows. These funds were used to reduce our commercial paper borrowings. The following table provides additional information on SouthStar’s assets and liabilities as of December 31, which are consolidated within our Consolidated Statements of Financial Position. | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
In millions | Consolidated | SouthStar (1) | -2% | Consolidated | SouthStar (1) | -2% | |||||||||||||||||||
Current assets | $ | 2,890 | $ | 238 | 8 | % | $ | 2,895 | $ | 264 | 9 | % | |||||||||||||
Goodwill and other intangible assets | 1,952 | 125 | 6 | 1,972 | 133 | 7 | |||||||||||||||||||
Long-term assets and other deferred debits | 10,067 | 17 | - | 9,683 | 13 | - | |||||||||||||||||||
Total assets | $ | 14,909 | $ | 380 | 3 | % | $ | 14,550 | $ | 410 | 3 | % | |||||||||||||
Current liabilities | $ | 3,219 | $ | 71 | 2 | % | $ | 3,118 | $ | 95 | 3 | % | |||||||||||||
Long-term liabilities and other deferred credits | 7,862 | - | - | 7,819 | - | - | |||||||||||||||||||
Total liabilities | 11,081 | 71 | 1 | 10,937 | 95 | 1 | |||||||||||||||||||
Equity | 3,828 | 309 | 8 | 3,613 | 315 | 9 | |||||||||||||||||||
Total liabilities and equity | $ | 14,909 | $ | 380 | 3 | % | $ | 14,550 | $ | 410 | 3 | % | |||||||||||||
-1 | These amounts reflect information for SouthStar and exclude intercompany eliminations and the balances of our wholly owned subsidiary with an 85% ownership interest in SouthStar. | ||||||||||||||||||||||||
-2 | SouthStar’s percentage of the amount on our Consolidated Statements of Financial Position. | ||||||||||||||||||||||||
The following table provides information on SouthStar’s operating revenues and operating expenses for the years ended December 31, which are consolidated within our Consolidated Statements of Income. | |||||||||||||||||||||||||
In millions | 2014 | 2013 | |||||||||||||||||||||||
Operating revenues | $ | 866 | $ | 687 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||
Cost of goods sold | 645 | 491 | |||||||||||||||||||||||
Operation and maintenance | 87 | 72 | |||||||||||||||||||||||
Depreciation and amortization | 11 | 7 | |||||||||||||||||||||||
Taxes other than income taxes | 1 | 1 | |||||||||||||||||||||||
Total operating expenses | 744 | 571 | |||||||||||||||||||||||
Operating income | $ | 122 | $ | 116 | |||||||||||||||||||||
Equity Method Investments | |||||||||||||||||||||||||
Triton We have an investment in Triton, a cargo container leasing company, which is included within our “other” non-reportable segment. Container equipment that is acquired by Triton is accounted for in tranches as defined in Triton’s operating agreement, and investors make capital contributions to Triton to invest in each of the tranches. As of December 31, 2014, we had invested in seven tranches established by Triton. | |||||||||||||||||||||||||
Horizon Pipeline We own a 50% interest in a joint venture with Natural Gas Pipeline Company of America that is regulated by the FERC and is included within our midstream operations segment. Horizon Pipeline operates an approximate 70-mile natural gas pipeline from Joliet, Illinois to near the Wisconsin/Illinois border. Nicor Gas typically contracts for 70% to 80% of the total capacity. | |||||||||||||||||||||||||
Sawgrass Storage We own a 50% interest in Sawgrass Storage, a joint venture between us and a privately held energy exploration and production company for the development of an underground natural gas storage facility in Louisiana with 30 Bcf of working gas capacity and is included within our midstream operations segment. In December 2013, the joint venture decided to terminate the development of this facility and recognized an impairment loss of $16 million, which reduced the carrying amount of the joint venture’s long-lived assets to fair value. Consequently, we recognized our 50% interest in the loss during the fourth quarter of 2013, resulting in an $8 million ($5 million net of tax) charge to operating income. | |||||||||||||||||||||||||
The carrying amounts of our investments that are accounted for under the equity method at December 31 were as follows: | |||||||||||||||||||||||||
In millions | 2014 | 2013 | |||||||||||||||||||||||
Triton | $ | 62 | $ | 70 | |||||||||||||||||||||
Horizon Pipeline | 14 | 15 | |||||||||||||||||||||||
Other (1) | 4 | 1 | |||||||||||||||||||||||
Total | $ | 80 | $ | 86 | |||||||||||||||||||||
-1 | Includes our current investment in PennEast Pipeline of $1 million and Atlantic Coast pipeline of $2 million as of December 31, 2014. | ||||||||||||||||||||||||
Income from our equity method investments is classified as other income in our Consolidated Statements of Income. The following table provides the income from our equity method investments for the years ended December 31. The majority of our net equity investment income is attributable to our investment in Triton. For more information on our other income, see Note 2. During 2014 and 2013, we received distributions of $17 million from our equity investees. | |||||||||||||||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Triton | $ | 6 | $ | 9 | $ | 11 | |||||||||||||||||||
Horizon Pipeline | 2 | 2 | 2 | ||||||||||||||||||||||
Other | - | (8 | ) | - | |||||||||||||||||||||
Total | $ | 8 | $ | 3 | $ | 13 | |||||||||||||||||||
In 2014, we entered into two interstate pipeline joint ventures within our midstream operations segment as described below. Our investments in these joint ventures were immaterial in 2014. The capacity from these joint ventures will further enhance system reliability as well as provide access to a more diverse supply of natural gas. We have concluded that, at present, both are VIEs. We are not considered the primary beneficiary and, therefore, we have not consolidated the financial statements for these joint ventures in our consolidated financial statements because we share in the ability to direct the activities that most significantly impact their economic performance with their other member companies. We have accounted for our investment in these joint ventures using the equity method of accounting, and we have classified the investments in other noncurrent assets in our Consolidated Statements of Financial Position. | |||||||||||||||||||||||||
PennEast Pipeline On August 11, 2014, we entered into a joint venture in which we hold a 20% ownership interest to develop and operate a 108-mile natural gas pipeline between New Jersey and Pennsylvania with initial transportation capacity of 1 Bcf per day, which may be expanded to 1.2 Bcf per day. Subject to FERC approval, construction is expected to begin in the first quarter of 2017 with a targeted completion date in the fourth quarter of 2017. | |||||||||||||||||||||||||
Atlantic Coast Pipeline On September 2, 2014, we entered into a joint venture in which we hold a 5% ownership interest to develop and operate a 550-mile natural gas pipeline in North Carolina, Virginia, and West Virginia with initial transportation capacity of 1.5 Bcf per day, which may be expanded to 2.0 Bcf per day. Subject to FERC approval, construction is expected to begin in the second half of 2016 with a targeted completion date in the second half of 2018. |
Note_11_Commitments_Guarantees
Note 11 - Commitments, Guarantees and Contingencies | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] | Note 11 - Commitments, Guarantees and Contingencies | ||||||||||||||||||||||||||||
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. In 2014, we entered into several unconditional purchase obligations in the ordinary course of business. These include capacity and supply agreements related to the Dalton Pipeline, PennEast Pipeline, Atlantic Coast Pipeline and wholesale services, which are reflected in the table below. The following table illustrates our expected future contractual payments under our obligations and other commitments as of December 31, 2014. | |||||||||||||||||||||||||||||
2020 & | |||||||||||||||||||||||||||||
In millions | Total | 2015 | 2016 | 2017 | 2018 | 2019 | thereafter | ||||||||||||||||||||||
Recorded contractual obligations: | |||||||||||||||||||||||||||||
Long-term debt (1) | $ | 3,706 | $ | 200 | $ | 545 | $ | 22 | $ | 155 | $ | 350 | $ | 2,434 | |||||||||||||||
Short-term debt | 1,175 | 1,175 | - | - | - | - | - | ||||||||||||||||||||||
Environmental remediation liabilities (2) | 414 | 87 | 93 | 55 | 47 | 37 | 95 | ||||||||||||||||||||||
Total | $ | 5,295 | $ | 1,462 | $ | 638 | $ | 77 | $ | 202 | $ | 387 | $ | 2,529 | |||||||||||||||
Unrecorded contractual obligations and commitments(3) (8): | |||||||||||||||||||||||||||||
Pipeline charges, storage capacity and gas supply (4) | $ | 4,303 | $ | 805 | $ | 457 | $ | 280 | $ | 234 | $ | 222 | $ | 2,305 | |||||||||||||||
Interest charges (5) | 2,762 | 179 | 171 | 147 | 146 | 141 | 1,978 | ||||||||||||||||||||||
Operating leases (6) | 188 | 33 | 31 | 24 | 17 | 18 | 65 | ||||||||||||||||||||||
Asset management agreements (7) | 32 | 9 | 10 | 7 | 4 | 2 | - | ||||||||||||||||||||||
Standby letters of credit, performance/surety bonds (8) | 50 | 49 | 1 | - | - | - | - | ||||||||||||||||||||||
Other | 8 | 3 | 3 | 1 | 1 | - | - | ||||||||||||||||||||||
Total | $ | 7,343 | $ | 1,078 | $ | 673 | $ | 459 | $ | 402 | $ | 383 | $ | 4,348 | |||||||||||||||
-1 | Excludes the $75 million step up to fair value of first mortgage bonds, $16 million unamortized debt premium and $5 million interest rate swaps fair value adjustment. Includes our current portion of long-term debt of $200 million, which matured in January 2015. | ||||||||||||||||||||||||||||
-2 | Includes charges recoverable through base rates or rate rider mechanisms. | ||||||||||||||||||||||||||||
-3 | In accordance with GAAP, these items are not reflected in our Consolidated Statements of Financial Position. | ||||||||||||||||||||||||||||
-4 | Includes charges recoverable through a natural gas cost recovery mechanism or alternatively billed to marketers and demand charges associated with Sequent. The gas supply balance includes amounts for Nicor Gas and SouthStar gas commodity purchase commitments of 51 Bcf at floating gas prices calculated using forward natural gas prices as of December 31, 2014, and is valued at $142 million. As we do for other subsidiaries, we provide guarantees to certain gas suppliers for SouthStar in support of payment obligations. | ||||||||||||||||||||||||||||
-5 | Floating rate interest charges are calculated based on the interest rate as of December 31, 2014 and the maturity date of the underlying debt instrument. As of December 31, 2014, we have $53 million of accrued interest on our Consolidated Statements of Financial Position that will be paid in 2015. | ||||||||||||||||||||||||||||
-6 | We have certain operating leases with provisions for step rent or escalation payments and certain lease concessions. We account for these leases by recognizing the future minimum lease payments on a straight-line basis over the respective minimum lease terms, in accordance with GAAP. However, this lease accounting treatment does not affect the future annual operating lease cash obligations as shown herein. Our operating leases are primarily for real estate. | ||||||||||||||||||||||||||||
-7 | Represent fixed-fee minimum payments for Sequent’s affiliated asset management agreements. | ||||||||||||||||||||||||||||
-8 | We provide guarantees to certain municipalities and other agencies and certain gas suppliers of SouthStar in support of payment obligations. | ||||||||||||||||||||||||||||
Contingencies and Guarantees | |||||||||||||||||||||||||||||
Contingent financial commitments, such as financial guarantees, represent obligations that become payable only if certain predefined events occur. 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 is remote. No liability has been recorded for such guarantees and indemnifications as the fair value was inconsequential at inception. | |||||||||||||||||||||||||||||
Financial guarantees AGL Equipment Leasing Inc. (AEL), a wholly owned subsidiary, holds our interest in Triton and has an obligation to restore to zero any deficit in its equity account for income tax purposes in the unlikely event that Triton is liquidated and a deficit balance remains. This obligation was not impacted by the 2014 sale of Tropical Shipping and continues for the life of the Triton partnerships. Any payment is effectively limited to the net assets of AEL, which were less than $1 million at December 31, 2014. We believe the likelihood of any such payment by AEL is remote and as such no liability has been recorded for this obligation. | |||||||||||||||||||||||||||||
Indemnities In certain instances, we have undertaken to indemnify current property owners and others against costs associated with the effects and/or remediation of contaminated sites for which we may be responsible under applicable federal or state environmental laws, generally with no limitation as to the amount. These indemnifications relate primarily to ongoing coal tar cleanup, as discussed in Environmental Matters. We believe that the likelihood of payment under our other environmental indemnifications is remote. No liability has been recorded for such indemnifications as the fair value was inconsequential at inception. | |||||||||||||||||||||||||||||
Regulatory Matters | |||||||||||||||||||||||||||||
In December 2012, Atlanta Gas Light filed a petition with the Georgia Commission for approval to resolve a volumetric imbalance 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. In September 2014, we filed a stipulation that was entered between us, staff of the Georgia Commission and several Marketers that included a resolution of the 4.6 Bcf imbalance over a five-year period from January 1, 2015 through December 31, 2019. The Georgia Commission approved the stipulation in December 2014. Over the five-year period, discretionary funds available to the Universal Service Fund, which is controlled by the Georgia Commission, will be used to resolve 25% of the imbalance, or approximately 1.15 Bcf of natural gas. Atlanta Gas Light is obligated to resolve 25% and we have recorded a reserve in our Consolidated Statements of Financial Position representing the future estimated cost to purchase the approximately 1.15 Bcf of natural gas. The cost to resolve the remaining difference of approximately 2.3 Bcf of natural gas will be recovered from all certificated Marketers through charges for system retained storage gas as it is used by the certificated Marketers. | |||||||||||||||||||||||||||||
On August 7, 2014, staff of the Illinois Commission and the Citizens Utility Board (CUB) filed testimony in the 2003 gas cost prudence review disputing certain gas loan transactions offered by Nicor Gas under its Chicago Hub services requesting refunds of $18 million and $22 million, respectively. We filed surrebuttal testimony in December 2014 in this proceeding disputing that any refund is due, as Nicor Gas was authorized to enter into these transactions and revenues associated with such transactions reduced rate payers’ costs as either credits to the purchased gas adjustment (PGA) or reductions to base rates consistent with then-current Illinois Commission orders governing these activities. We believe these claims engage in hindsight speculation, which is expressly prohibited in a prudence review examination, and we intend to vigorously defend against these claims. Evidentiary hearings are scheduled for March 2015. Similar gas loan transactions were provided in other open review years. The resolution will ultimately be decided by the Illinois Commission. We are currently unable to predict the ultimate outcome and have recorded no liability for this matter. | |||||||||||||||||||||||||||||
Environmental Matters | |||||||||||||||||||||||||||||
We are subject to federal, state and local laws and regulations governing environmental quality and pollution control that require us to remove or remedy the effect on the environment of the disposal or release of specified substances at current and former operating sites. See Note 3 for additional information. | |||||||||||||||||||||||||||||
We are involved in an investigation by the EPA 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. | |||||||||||||||||||||||||||||
Litigation | |||||||||||||||||||||||||||||
We are involved in litigation arising in the normal course of business. Although in some cases we are 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 us 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, results of operations or cash flows. | |||||||||||||||||||||||||||||
PBR Proceeding Nicor Gas’ PBR plan was a regulatory plan that provided economic incentives based on natural gas cost performance. The PBR plan went into effect in 2000 and was terminated effective January 1, 2003, following allegations that Nicor Gas acted improperly in connection with the plan. 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. Since 2002, the amount of the savings and losses required to be shared has been disputed by the CUB and others, with the Illinois Attorney General (IAG) intervening, and subject to extensive contested discovery and other regulatory proceedings before administrative law judges and the Illinois Commission. In 2009, the staff of the Illinois Commission, IAG and CUB requested refunds of $85 million, $255 million and $305 million, respectively. | |||||||||||||||||||||||||||||
In February 2012, we committed to a stipulation with the staff of the Illinois Commission for a resolution of the dispute through credits to Nicor Gas customers of $64 million. On November 5, 2012, the Administrative Law Judges issued a proposed order for a refund of $72 million to ratepayers. In the fourth quarter of 2012, we increased our accrual for this dispute by $8 million for a total of $72 million as a result of these developments and their effect on the estimated liability. | |||||||||||||||||||||||||||||
On June 7, 2013, the Illinois Commission issued an order requiring us to refund $72 million to current Nicor Gas customers through our PGA mechanism based upon natural gas throughput over 12 months beginning on July 1, 2013. Approximately $43 million was refunded during the first half of 2014, which resulted in the completion of all refunds. On February 28, 2014, the CUB appealed the Illinois Commission’s order requesting refunds consistent with its 2009 request to the appellate court in Illinois and Nicor Gas filed its response brief on July 25, 2014. The CUB filed its reply brief on October 17, 2014. There is no set time frame for a final ruling by the appellate court. | |||||||||||||||||||||||||||||
Other In addition to the matters set forth above, we are involved with legal or administrative proceedings before various courts and agencies with respect to general claims, taxes, environmental, gas cost prudence reviews and other matters. We are unable to determine the ultimate outcome of these other contingencies. We believe that these amounts are appropriately reflected in our consolidated financial statements, including the recording of appropriate liabilities when reasonably estimable. |
Note_12_Income_Taxes
Note 12 - Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Tax Disclosure [Text Block] | Note 12 - Income Taxes | ||||||||||||
Income Tax Expense | |||||||||||||
The relative split between current and deferred taxes is due to a variety of factors, including true ups of prior year tax returns, and most importantly, the timing of our property-related deductions. Components of income tax expense in the Consolidated Statements of Income are shown in the following table. | |||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||
Current income taxes | |||||||||||||
Federal | $ | 113 | $ | 164 | $ | 8 | |||||||
State | 38 | 35 | 4 | ||||||||||
Deferred income taxes | |||||||||||||
Federal | 184 | (8 | ) | 128 | |||||||||
State | 17 | (11 | ) | 20 | |||||||||
Amortization of investment tax credits | (2 | ) | (3 | ) | (3 | ) | |||||||
Total | $ | 350 | $ | 177 | $ | 157 | |||||||
The reconciliations between the statutory federal income tax rate of 35%, the effective rate and the related amount of income tax expense for the years ended December 31, in our Consolidated Statements of Income are presented in the following table. | |||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||
Computed tax expense at statutory rate | $ | 325 | $ | 165 | $ | 151 | |||||||
State income tax, net of federal income tax benefit | 36 | 20 | 19 | ||||||||||
Tax effect of net income attributable to the noncontrolling interest | (7 | ) | (7 | ) | (6 | ) | |||||||
Amortization of investment tax credits | (2 | ) | (3 | ) | (3 | ) | |||||||
Affordable housing credits | (2 | ) | (2 | ) | (2 | ) | |||||||
Flexible dividend deduction | (2 | ) | (2 | ) | (2 | ) | |||||||
Sale of Compass Energy | - | 6 | - | ||||||||||
Other | 2 | - | - | ||||||||||
Total income tax expense on Consolidated Statements of Income | $ | 350 | $ | 177 | $ | 157 | |||||||
Accumulated Deferred Income Tax Assets and Liabilities | |||||||||||||
We report some of our assets and liabilities differently for financial accounting purposes than we do for income tax purposes. We report the tax effects of the differences in those items as deferred income tax assets or liabilities in our Consolidated Statements of Financial Position. We measure the assets and liabilities using income tax rates that are currently in effect. The current portion of our deferred income taxes is recognized within current assets in our Consolidated Statements of Financial Position. We have provided a valuation allowance for some of these items that reduce our net deferred tax assets to amounts we believe are more likely than not to be realized in future periods. With respect to our continuing operations, we have net operating losses in various jurisdictions. Components that give rise to the net current and long-term accumulated deferred income tax liability are as follows. | |||||||||||||
As of December 31, | |||||||||||||
In millions | 2014 | 2013 | |||||||||||
Current accumulated deferred income tax liabilities | |||||||||||||
Mark-to-market | $ | 33 | $ | - | |||||||||
Inventory | 26 | 18 | |||||||||||
Total current accumulated deferred income tax liabilities | 59 | 18 | |||||||||||
Current accumulated deferred income tax assets | |||||||||||||
Compensation accruals | 30 | 19 | |||||||||||
Lower of cost or market | 26 | - | |||||||||||
Allowance for doubtful accounts | 12 | 10 | |||||||||||
Mark-to-market | - | 24 | |||||||||||
Other | 21 | 16 | |||||||||||
Total current accumulated deferred income tax assets | 89 | 69 | |||||||||||
Valuation allowances (1) | (6 | ) | (8 | ) | |||||||||
Total current accumulated deferred income tax assets, net of valuation allowance | 83 | 61 | |||||||||||
Net current accumulated deferred income tax asset | $ | 24 | $ | 43 | |||||||||
Long-term accumulated deferred income tax liabilities | |||||||||||||
Property - accelerated depreciation and other property-related items | $ | 1,801 | $ | 1,608 | |||||||||
Investments in partnerships | 16 | 18 | |||||||||||
Acquisition intangibles | 14 | 11 | |||||||||||
Mark-to-market | 12 | - | |||||||||||
Undistributed earnings of foreign subsidiaries | - | 26 | |||||||||||
Other | 85 | 97 | |||||||||||
Total long-term accumulated deferred income tax liabilities | 1,928 | 1,760 | |||||||||||
Long-term accumulated deferred income tax assets | |||||||||||||
Unfunded pension and retiree welfare benefit obligation | 117 | 92 | |||||||||||
Deferred investment tax credits | 6 | 7 | |||||||||||
Mark-to-market | - | 3 | |||||||||||
Other | 95 | 44 | |||||||||||
Total long-term accumulated deferred income tax assets | 218 | 146 | |||||||||||
Valuation allowances (1) | (14 | ) | (14 | ) | |||||||||
Total long-term accumulated deferred income tax assets, net of valuation allowance | 204 | 132 | |||||||||||
Net long-term accumulated deferred income tax liability | $ | 1,724 | $ | 1,628 | |||||||||
-1 | The total valuation allowance in 2014 and 2013 is $20 million and $22 million respectively. For 2014 the total is comprised of $1 million due to net operating losses of a former non-operating facility that are not allowed in New Jersey and $19 million related to our investment in Triton. For 2013 the total is comprised of $3 million due to net operating losses in New Jersey of a former non-operating facility that are not allowed in New Jersey and $19 million related to our investment in Triton. New Jersey net operating losses expired in 2014, resulting in the reduction of the valuation allowance. | ||||||||||||
Tax Benefits | |||||||||||||
As of December 31, 2014, and December 31, 2013, we did not have a liability for unrecognized tax benefits. Based on current information, we do not anticipate that this will change materially in 2015. As of December 31, 2014, we did not have a liability recorded for payment of interest or penalties associated with uncertain tax positions nor did we have any such interest or penalties during 2014 or 2013. | |||||||||||||
We file a U.S. federal consolidated income tax return and various state income tax returns. We are no longer subject to income tax examinations by the Internal Revenue Service or in any state for years before 2011. |
Note_13_Segment_Information
Note 13 - Segment Information | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | Note 13 - Segment Information | ||||||||||||||||||||||||||||
Our reportable 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 four reportable segments - distribution operations, retail operations, wholesale services, midstream operations. Our non-reportable segments are combined and presented as “other segments”. | |||||||||||||||||||||||||||||
Effective September 1, 2014, we closed on the sale of Tropical Shipping, which historically operated within our cargo shipping segment. The assets and liabilities of these businesses are classified as held for sale on the Consolidated Statements of Financial Position, and the financial results of these businesses as of December 31, 2013 are reflected as discontinued operations on the Consolidated Statements of Income. Amounts shown in this note, unless otherwise indicated, exclude assets held for sale and discontinued operations. Cargo shipping also included our investment in Triton, which was not part of the sale and has been reclassified to a non-reportable segment. See Note 14 for additional information. | |||||||||||||||||||||||||||||
Our distribution operations segment is the largest component of our business and includes natural gas local distribution utilities in seven states. 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 and Illinois. Additionally, retail operations provides home protection products and services. Our wholesale services segment engages in natural gas storage and gas pipeline arbitrage and related activities. Additionally, they provide natural gas asset management and/or related logistics services for each of our utilities except Nicor Gas, as well as for non-affiliated companies. Our midstream operations segment includes our non-utility storage and pipeline operations, including the operation of high-deliverability natural gas storage assets. Our “other” non-reportable segments include subsidiaries that individually are not significant on a stand-alone basis and that do not fit into one of our reportable segments. | |||||||||||||||||||||||||||||
The chief operating decision maker of the company is the Chairman, President and Chief Executive Officer, who utilizes EBIT as the primary measure of profit and loss in assessing the results of each segment’s operations. EBIT includes operating income and other income and expenses. Items we do not include in EBIT are income taxes and financing costs, including interest expense, each of which we evaluate on a consolidated basis. Summarized Statements of Income, Statements of Financial Position and capital expenditure information by segment as of and for the years ended December 31, 2014, 2013 and 2012 are shown in the following tables. | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
In millions | Distribution operations | Retail operations | Wholesale services (1) | Midstream operations | Other (2) | Intercompany eliminations | Consolidated | ||||||||||||||||||||||
Operating revenues from external parties | $ | 3,802 | $ | 994 | $ | 578 | $ | 88 | $ | 7 | $ | (84 | ) | $ | 5,385 | ||||||||||||||
Intercompany revenues | 199 | - | - | - | - | (199 | ) | - | |||||||||||||||||||||
Total operating revenues | 4,001 | 994 | 578 | 88 | 7 | (283 | ) | 5,385 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Cost of goods sold | 2,223 | 683 | 77 | 57 | - | (275 | ) | 2,765 | |||||||||||||||||||||
Operation and maintenance | 699 | 147 | 75 | 26 | - | (8 | ) | 939 | |||||||||||||||||||||
Depreciation and amortization | 317 | 28 | 1 | 18 | 16 | - | 380 | ||||||||||||||||||||||
Taxes other than income taxes | 189 | 4 | 3 | 6 | 6 | - | 208 | ||||||||||||||||||||||
Total operating expenses | 3,428 | 862 | 156 | 107 | 22 | (283 | ) | 4,292 | |||||||||||||||||||||
Gain (loss) on disposition of assets | - | - | 3 | - | (1 | ) | - | 2 | |||||||||||||||||||||
Operating income (loss) | 573 | 132 | 425 | (19 | ) | (16 | ) | - | 1,095 | ||||||||||||||||||||
Other income (expense) | 8 | - | (3 | ) | 2 | 7 | - | 14 | |||||||||||||||||||||
EBIT | $ | 581 | $ | 132 | $ | 422 | $ | (17 | ) | $ | (9 | ) | $ | - | $ | 1,109 | |||||||||||||
Identifiable and total assets (3) | $ | 12,041 | $ | 670 | $ | 1,402 | $ | 694 | $ | 9,723 | $ | (9,621 | ) | $ | 14,909 | ||||||||||||||
Capital expenditures | $ | 715 | $ | 11 | $ | 2 | $ | 15 | $ | 26 | $ | - | $ | 769 | |||||||||||||||
2013 | |||||||||||||||||||||||||||||
In millions | Distribution operations | Retail operations | Wholesale services (1) | Midstream operations | Other (2) | Intercompany eliminations | Consolidated | ||||||||||||||||||||||
Operating revenues from external parties | $ | 3,230 | $ | 858 | $ | 60 | $ | 74 | $ | 8 | $ | (21 | ) | $ | 4,209 | ||||||||||||||
Intercompany revenues | 182 | - | - | - | - | (182 | ) | - | |||||||||||||||||||||
Total operating revenues | 3,412 | 858 | 60 | 74 | 8 | (203 | ) | 4,209 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Cost of goods sold | 1,687 | 564 | 21 | 33 | - | (195 | ) | 2,110 | |||||||||||||||||||||
Operation and maintenance | 687 | 132 | 49 | 24 | 3 | (8 | ) | 887 | |||||||||||||||||||||
Depreciation and amortization | 339 | 27 | 1 | 17 | 13 | - | 397 | ||||||||||||||||||||||
Taxes other than income taxes | 167 | 3 | 3 | 5 | 9 | - | 187 | ||||||||||||||||||||||
Total operating expenses | 2,880 | 726 | 74 | 79 | 25 | (203 | ) | 3,581 | |||||||||||||||||||||
Gain on disposition of assets | - | - | 11 | - | - | - | 11 | ||||||||||||||||||||||
Operating income (loss) | 532 | 132 | (3 | ) | (5 | ) | (17 | ) | - | 639 | |||||||||||||||||||
Other income (expense) | 14 | - | - | (5 | ) | 7 | - | 16 | |||||||||||||||||||||
EBIT | $ | 546 | $ | 132 | $ | (3 | ) | $ | (10 | ) | $ | (10 | ) | $ | - | $ | 655 | ||||||||||||
Identifiable and total assets (3) | $ | 11,634 | $ | 685 | $ | 1,163 | $ | 713 | $ | 10,160 | $ | (10,088 | ) | $ | 14,267 | ||||||||||||||
Capital expenditures | $ | 684 | $ | 9 | $ | 2 | $ | 12 | $ | 24 | $ | - | $ | 731 | |||||||||||||||
2012 | |||||||||||||||||||||||||||||
In millions | Distribution operations | Retail operations | Wholesale services (1) | Midstream operations | Other (2) | Intercompany eliminations | Consolidated | ||||||||||||||||||||||
Operating revenues from external parties | $ | 2,691 | $ | 733 | $ | 88 | $ | 78 | $ | 7 | $ | (35 | ) | $ | 3,562 | ||||||||||||||
Intercompany revenues | 167 | 2 | - | - | - | (169 | ) | - | |||||||||||||||||||||
Total operating revenues | 2,858 | 735 | 88 | 78 | 7 | (204 | ) | 3,562 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Cost of goods sold | 1,221 | 488 | 38 | 32 | - | (196 | ) | 1,583 | |||||||||||||||||||||
Operation and maintenance | 642 | 114 | 48 | 19 | 1 | (8 | ) | 816 | |||||||||||||||||||||
Depreciation and amortization | 347 | 18 | 2 | 14 | 13 | - | 394 | ||||||||||||||||||||||
Nicor merger expenses (4) | - | - | - | - | 20 | - | 20 | ||||||||||||||||||||||
Taxes other than income taxes | 140 | 4 | 4 | 5 | 6 | - | 159 | ||||||||||||||||||||||
Total operating expenses | 2,350 | 624 | 92 | 70 | 40 | (204 | ) | 2,972 | |||||||||||||||||||||
Operating income (loss) | 508 | 111 | (4 | ) | 8 | (33 | ) | - | 590 | ||||||||||||||||||||
Other income | 9 | - | 1 | 2 | 12 | - | 24 | ||||||||||||||||||||||
EBIT | $ | 517 | $ | 111 | $ | (3 | ) | $ | 10 | $ | (21 | ) | $ | - | $ | 614 | |||||||||||||
Identifiable and total assets (3) | $ | 11,256 | $ | 506 | $ | 1,218 | $ | 720 | $ | 9,848 | $ | (9,769 | ) | $ | 13,779 | ||||||||||||||
Capital expenditures | $ | 649 | $ | 8 | $ | 3 | $ | 62 | $ | 53 | $ | - | $ | 775 | |||||||||||||||
-1 | The revenues for wholesale services are netted with costs associated with its energy and risk management activities. A reconciliation of our operating revenues and our intercompany revenues for the years ended December 31, are shown in the following table. Wholesale services 2014 operating revenues are related to colder-than-normal weather and extreme volatility and are not indicative of future performance. | ||||||||||||||||||||||||||||
In millions | Third party gross revenues | Intercompany revenues | Total gross revenues | Less gross gas costs | Operating revenues | ||||||||||||||||||||||||
2014 | $ | 10,709 | $ | 718 | $ | 11,427 | $ | 10,849 | $ | 578 | |||||||||||||||||||
2013 | 7,681 | 417 | 8,098 | 8,038 | 60 | ||||||||||||||||||||||||
2012 | 6,089 | 350 | 6,439 | 6,351 | 88 | ||||||||||||||||||||||||
-2 | Our other non-reportable segments now also include our investment in Triton, which was part of our cargo shipping segment that is classified as discontinued operations. For more information, see Note 14. | ||||||||||||||||||||||||||||
-3 | Identifiable assets are those used in each segment’s operations and exclude assets held for sale. | ||||||||||||||||||||||||||||
-4 | Transaction expenses associated with the Nicor merger are shown separately to better compare year-over-year results. | ||||||||||||||||||||||||||||
Note_14_Discontinued_Operation
Note 14 - Discontinued Operations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 14 - Discontinued Operations | ||||||||||||
On September 1, 2014, we closed on the sale of Tropical Shipping to an unrelated third party. The after-tax cash proceeds and distributions from the transaction were approximately $225 million. We determined that the cumulative foreign earnings of Tropical Shipping would no longer be indefinitely reinvested offshore. Accordingly, we recognized income tax expense of $60 million, of which $31 million was recorded in the first quarter of 2014, and the remaining $29 million was recorded in the third quarter of 2014 related to the cumulative foreign earnings for which no tax liabilities had been previously recorded, resulting in our repatriation of $86 million in cash. | |||||||||||||
During the first quarter of 2014, based upon the negotiated sales price, we also recorded a goodwill impairment charge of $19 million, for which there is no income tax benefit. Additionally, we recognized a total of $7 million charge in the second and third quarters of 2014 related to the suspension of depreciation and amortization for assets that we were not compensated for by the buyer. | |||||||||||||
The assets and liabilities of Tropical Shipping classified as held for sale on the Consolidated Statements of Financial Position are as follows: | |||||||||||||
December 31, | |||||||||||||
In millions | 2013 | ||||||||||||
Current assets | |||||||||||||
Cash and cash equivalents | $ | 24 | |||||||||||
Short-term investments | 1 | ||||||||||||
Receivables | 36 | ||||||||||||
Inventories | 9 | ||||||||||||
Other | 1 | ||||||||||||
Total current assets | 71 | ||||||||||||
Long-term assets and other deferred debits | |||||||||||||
Property, plant and equipment, net | 124 | ||||||||||||
Goodwill | 61 | ||||||||||||
Intangible assets | 19 | ||||||||||||
Other | 8 | ||||||||||||
Total long-term assets and other deferred debits | 212 | ||||||||||||
Total assets held for sale | $ | 283 | |||||||||||
Current liabilities | |||||||||||||
Accrued expenses | $ | 7 | |||||||||||
Other accounts payable - trade | 11 | ||||||||||||
Other | 22 | ||||||||||||
Total liabilities held for sale | $ | 40 | |||||||||||
The financial results of these businesses are reflected as discontinued operations, and all prior periods presented have been recast to reflect the discontinued operations. The components of discontinued operations recorded on the Consolidated Statements of Income as of December 31, are as follows: | |||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||
Operating revenues | $ | 243 | $ | 365 | $ | 342 | |||||||
Operating expenses | |||||||||||||
Cost of goods sold | 149 | 222 | 208 | ||||||||||
Operation and maintenance (1) | 75 | 110 | 106 | ||||||||||
Depreciation and amortization (2) | 5 | 19 | 22 | ||||||||||
Taxes other than income taxes | 5 | 6 | 6 | ||||||||||
Loss on sale and goodwill impairment (3) | 28 | - | - | ||||||||||
Total operating expenses | 262 | 357 | 342 | ||||||||||
Operating (loss) income | (19 | ) | 8 | - | |||||||||
(Loss) income before income taxes | (19 | ) | 8 | - | |||||||||
Income tax expense (4) | (61 | ) | 3 | (1 | ) | ||||||||
(Loss) income from discontinued operations, net of tax | $ | (80 | ) | $ | 5 | $ | 1 | ||||||
-1 | Includes $1 million for another business not related to Tropical Shipping that we discontinued in 2014 and was included in our “other” non-reportable segment. | ||||||||||||
-2 | We ceased depreciating and amortizing Tropical Shipping’s assets on April 4, 2014, as a result of entering into an agreement to sell this business and the assets were classified as held for sale. | ||||||||||||
-3 | Primarily relates to the suspension of depreciation and amortization during 2014 totaling $7 million, and $19 million of goodwill attributable to Tropical Shipping that was impaired as of March 31, 2014, based on the negotiated sales price. | ||||||||||||
-4 | Includes $60 million that was recorded in 2014 related to the cumulative foreign earnings for which no tax liabilities had been previously recorded. | ||||||||||||
Note_15_Selected_Quarterly_Fin
Note 15 - Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Information [Text Block] | Note 15 - Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||
The variance in our quarterly earnings is primarily the result of the seasonal nature of the distribution of natural gas to customers, the volatility within our wholesale services segment and the sale of our cargo shipping segment in 2014. During the Heating Season, natural gas usage and operating revenues are generally higher at our distribution operations and retail operations segments as more customers are connected to our distribution systems and natural gas usage is higher in periods of colder weather. However, our base operating expenses, excluding cost of goods sold, interest expense and certain incentive compensation costs, are incurred relatively uniformly over any given year. Thus, our operating results can vary significantly from quarter to quarter as a result of seasonality. | |||||||||||||||||
Our 2014 operating revenues and operating income were higher than 2013, primarily as a result of significantly colder-than-normal weather in 2014, volatility in the natural gas market and transportation constraints in the Northeast and Midwest. Our quarterly financial data for 2014 and 2013 are summarized below. | |||||||||||||||||
In millions, except per share amounts | 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||
2014 | |||||||||||||||||
Operating revenues | $ | 2,462 | $ | 889 | $ | 589 | $ | 1,445 | |||||||||
Operating income | 592 | 139 | 78 | 286 | |||||||||||||
EBIT | 595 | 141 | 81 | 292 | |||||||||||||
Income from continuing operations | 346 | 59 | 23 | 152 | |||||||||||||
Income from continuing operations attributable to AGL Resources Inc. | 334 | 57 | 23 | 148 | |||||||||||||
(Loss) income from discontinued operations, net of tax | (50 | ) | 1 | (31 | ) | - | |||||||||||
Net income (loss) attributable to AGL Resources Inc. | 284 | 58 | (8 | ) | 148 | ||||||||||||
Basic earnings (loss) per common share: | |||||||||||||||||
Continuing operations | 2.82 | 0.48 | 0.19 | 1.24 | |||||||||||||
Discontinued operations | (0.43 | ) | 0.01 | (0.25 | ) | - | |||||||||||
Diluted earnings (loss) per common share: | |||||||||||||||||
Continuing operations | 2.81 | 0.48 | 0.19 | 1.24 | |||||||||||||
Discontinued operations | (0.43 | ) | 0.01 | (0.25 | ) | - | |||||||||||
2013 | |||||||||||||||||
Operating revenues | $ | 1,612 | $ | 805 | $ | 574 | $ | 1,218 | |||||||||
Operating income | 290 | 113 | 70 | 166 | |||||||||||||
EBIT | 295 | 119 | 77 | 164 | |||||||||||||
Income from continuing operations | 159 | 45 | 24 | 80 | |||||||||||||
Income from continuing operations attributable to AGL Resources Inc. | 149 | 44 | 24 | 73 | |||||||||||||
Income (loss) from discontinued operations, net of tax | 1 | (1 | ) | 1 | 4 | ||||||||||||
Net income attributable to AGL Resources Inc. | 150 | 43 | 25 | 77 | |||||||||||||
Basic earnings (loss) per common share: | |||||||||||||||||
Continuing operations | 1.27 | 0.38 | 0.2 | 0.61 | |||||||||||||
Discontinued operations | 0.01 | (0.01 | ) | 0.01 | 0.03 | ||||||||||||
Diluted earnings (loss) per common share: | |||||||||||||||||
Continuing operations | 1.26 | 0.38 | 0.2 | 0.61 | |||||||||||||
Discontinued operations | 0.01 | (0.01 | ) | 0.01 | 0.03 | ||||||||||||
Our basic and diluted earnings per common share are calculated based on the weighted daily average number of common shares and common share equivalents outstanding during the quarter. Those totals differ from the basic and diluted earnings per common share attributable to AGL Resources Inc. common shareholders shown in the Consolidated Statements of Income, which are based on the weighted average number of common shares and common share equivalents outstanding during the entire year. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Additions | ||||||||||||||||||||
In millions | Balance at beginning of period | Charged to costs and expenses | Charged to other accounts | Deductions | Balance at end of period | ||||||||||||||||
2012 | |||||||||||||||||||||
Allowance for uncollectible accounts | $ | 17 | $ | 25 | $ | 3 | $ | (17 | ) | $ | 28 | ||||||||||
Income tax valuation | 3 | - | 19 | - | 22 | ||||||||||||||||
2013 | |||||||||||||||||||||
Allowance for uncollectible accounts | $ | 28 | $ | 37 | $ | - | $ | (36 | ) | $ | 29 | ||||||||||
Income tax valuation | 22 | - | - | - | 22 | ||||||||||||||||
2014 | |||||||||||||||||||||
Allowance for uncollectible accounts | $ | 29 | $ | 54 | $ | 2 | $ | (50 | ) | $ | 35 | ||||||||||
Income tax valuation | 22 | - | - | (2 | ) | 20 | |||||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents | ||||||||||||||||||||||||||||
Our cash and cash equivalents primarily consist 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 December 31, 2013, $24 million of cash and cash equivalents within our Consolidated Statements of Financial Position held by Tropical Shipping were excluded from cash and cash equivalents and included in assets held for sale. Prior to closing the sale, cash and short-term investments that were held in off-shore accounts were repatriated. See Note 12 and Note 14 for additional information on our income taxes on the cumulative foreign earnings for which no tax liability had previously been recorded. | |||||||||||||||||||||||||||||
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 that enable our wholesale services segment to net receivables and payables by counterparty upon settlement. 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 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 December 31, 2014 and 2013, 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 condition. If such collateral were not posted, wholesale services’ ability to continue transacting business with these counterparties would be negatively impacted. | |||||||||||||||||||||||||||||
Wholesale services has a concentration of credit risk for services it provides to marketers and to utility and industrial counterparties. This credit risk is generally concentrated in 20 of its counterparties and is measured by 30-day receivable exposure plus forward exposure. We evaluate the credit risk of our counterparties using an S&P equivalent credit rating, which is determined by a process of converting the lower of the S&P or Moody’s rating to an internal rating ranging from 9 to 1, with 9 being equivalent to AAA/Aaa by S&P and Moody’s and 1 being equivalent to D/Default by S&P and Moody’s. A counterparty that does not have an external rating is assigned an internal rating based on the strength of its financial ratios. As of December 31, 2014, our top 20 counterparties represented 55%, or $367 million, of our total counterparty exposure and had a weighted average S&P equivalent rating of A-. | |||||||||||||||||||||||||||||
We have established credit policies to determine and monitor the creditworthiness of counterparties, including requirements for posting of collateral or other credit security, as well as the quality of pledged collateral. Collateral or credit security is most often in the form of cash or letters of credit from an investment-grade financial institution, but may also include cash or U.S. government securities held by a trustee. When wholesale services is engaged in more than one outstanding derivative transaction with the same counterparty and it also has a legally enforceable netting agreement with that counterparty, the “net” mark-to-market exposure represents the netting of the positive and negative exposures with that counterparty combined with a reasonable measure of our credit risk. Wholesale services also uses other netting agreements with certain counterparties with whom it conducts significant transactions | |||||||||||||||||||||||||||||
Receivables, Policy [Policy Text Block] | Receivables and Allowance for Uncollectible Accounts | ||||||||||||||||||||||||||||
Our other trade receivables consist primarily of natural gas sales and transportation services billed to residential, commercial, industrial and other customers. We bill customers monthly, and our accounts receivable are due within 30 days. For the majority of our receivables, we establish an allowance for doubtful accounts based on our collection experience and other factors. For our remaining receivables, if we are aware of a specific customer’s inability or reluctance to pay, we record an allowance for doubtful accounts against amounts due to reduce the receivable balance to the amount we reasonably expect to collect. If circumstances change, our estimate of the recoverability of accounts receivable could change as well. Circumstances that could affect our estimates include, but are not limited to, customer credit issues, customer deposits and general economic conditions. Customers’ accounts are written off once we deem them to be uncollectible. | |||||||||||||||||||||||||||||
Nicor GasCredit risk exposure at Nicor Gas is mitigated by a bad debt rider approved by the Illinois Commission. The bad debt rider provides for the recovery from (or refund to) customers of the difference between Nicor Gas’ actual bad debt experience on an annual basis and the benchmark bad debt expense used to establish its base rates for the respective year. See Note 3 for additional information on the bad debt rider. | |||||||||||||||||||||||||||||
Atlanta Gas Light Concentration of credit risk occurs at Atlanta Gas Light for amounts billed for services and other costs to its customers, which consist of 12 Marketers in Georgia. The credit risk exposure to Marketers varies seasonally, with the lowest exposure in the nonpeak summer months and the highest exposure in the peak winter months. Marketers are responsible for the retail sale of natural gas to end-use customers in Georgia. The functions of the retail sale of gas include the purchase and sale of natural gas, customer service, billings and collections. We obtain credit security support in an amount equal to no less than two times a Marketer’s highest month’s estimated bill from Atlanta Gas Light. | |||||||||||||||||||||||||||||
Inventory, Policy [Policy Text Block] | Inventories | ||||||||||||||||||||||||||||
For our regulated utilities, except Nicor Gas, our natural 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 11 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 the year that are restored prior to year end are charged to cost of goods sold at the estimated annual replacement cost. Inventory decrements that are not restored prior to year end are charged to cost of goods sold at the actual LIFO cost of the layers liquidated. Since the cost of gas, including inventory costs, is charged to customers without markup, subject to Illinois Commission review, LIFO liquidations have no impact on net income. At December 31, 2014, the Nicor Gas LIFO inventory balance was $141 million. Based on the average cost of gas purchased in December 2014, the estimated replacement cost of Nicor Gas’ inventory at December 31, 2014 was $346 million, which exceeded the LIFO cost by $205 million. During 2014, we liquidated 6.8 Bcf of our LIFO-based inventory at an average cost per million cubic feet (Mcf) of $3.98. For gas purchased in 2014, our average cost per Mcf was $1.33 higher than the average LIFO liquidation rate. Applying LIFO cost in valuing the liquidation, as opposed to using the average gas purchase cost, had the effect of decreasing the cost of gas in 2014 by $9 million. | |||||||||||||||||||||||||||||
Our retail operations, wholesale services and midstream operations segments carry inventory at the lower of cost or market value, where cost is determined on a WACOG basis. 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. As indicated in the following LOCOM table, for any declines considered to be other than temporary, we record these pre-tax adjustments to our Consolidated Statements of Income to reduce the weighted average cost of the natural gas inventory to market value. | |||||||||||||||||||||||||||||
In millions | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Retail operations | $ | 4 | $ | 1 | $ | 3 | |||||||||||||||||||||||
Wholesale services (1) | 73 | 8 | 19 | ||||||||||||||||||||||||||
Midstream operations | - | - | 1 | ||||||||||||||||||||||||||
Total | $ | 77 | $ | 9 | $ | 23 | |||||||||||||||||||||||
-1 | The significant in 2014 was due to a significant decline in natural gas prices in December 2014. | ||||||||||||||||||||||||||||
Additionally, we have $17 million of inventory at wholesale services that is currently inaccessible due to operational issues at a third-party storage facility. The owner of the storage facility is working to resolve these issues. While we expect this inventory to be fully recovered, the timing of withdrawal of this gas may be impacted by the operational issues. | |||||||||||||||||||||||||||||
At midstream operations, mechanical integrity tests and engineering studies are periodically performed on the storage facilities in accordance with certain state regulatory requirements. During 2014, an engineering study and mechanical integrity tests were performed at one of our storage facilities, identifying a lower amount of working gas capacity that is the result of naturally occurring shrinkage of the storage caverns. Further, based on the lower capacity and an analysis of the volume of natural gas stored in the facility, we recorded natural gas costs to true-up the amount of retained fuel at this facility in the amount of $10 million. Our other storage facilities at midstream operations were not impacted. | |||||||||||||||||||||||||||||
Public Utilities, Policy [Policy Text Block] | Regulated Operations | ||||||||||||||||||||||||||||
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 that would otherwise be charged to expense in the current period are capitalized as regulatory assets when it is probable that such costs 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 and regulatory liabilities are amortized into our Consolidated Statements of Income over the period authorized by the regulatory commissions. | |||||||||||||||||||||||||||||
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. See Note 4 for additional fair value disclosures. | |||||||||||||||||||||||||||||
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. The guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy defined by the guidance are as follows: | |||||||||||||||||||||||||||||
Level 1 Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Our Level 1 items consist of exchange-traded derivatives, money market funds and certain retirement plan assets. | |||||||||||||||||||||||||||||
Level 2 Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial and commodity instruments that are valued using valuation methodologies. These methodologies are primarily industry-standard methodologies that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. We obtain market price data from multiple sources in order to value some of our Level 2 transactions and this data is representative of transactions that occurred in the marketplace. Instruments in this category include shorter tenor exchange-traded and non-exchange-traded derivatives such as OTC forwards and options and certain retirement plan assets. | |||||||||||||||||||||||||||||
Level 3 Pricing inputs include significant unobservable inputs that may be used with internally developed methodologies to determine management’s best estimate of fair value from the perspective of market participants. Level 3 instruments include those that may be more structured or otherwise tailored to customers’ needs. Our Level 3 assets, liabilities and any applicable transfers are primarily related to our pension and welfare benefit plan assets as described in Note 4 and Note 6. We determine both transfers into and out of Level 3 using values at the end of the interim period in which the transfer occurred. | |||||||||||||||||||||||||||||
The authoritative guidance related to fair value measurements and disclosures also includes a two-step process to determine whether the market for a financial asset is inactive or a transaction is distressed. Currently, this authoritative guidance does not affect us, as our derivative instruments are traded in active markets. | |||||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||
Our policy is to classify derivative cash flows and gains and losses within the same financial statement category as the hedged item, rather than by the nature of the instrument. | |||||||||||||||||||||||||||||
Fair Value Hierarchy Derivative assets and liabilities are classified in their entirety into the previously described fair value hierarchy levels based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The measurement of fair value incorporates various factors required under the guidance. These factors include not only the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests), but also the impact of our own nonperformance risk on our liabilities. To mitigate the risk that a counterparty to a derivative instrument defaults on settlement or otherwise fails to perform under contractual terms, we have established procedures to monitor the creditworthiness of counterparties, seek guarantees or collateral backup in the form of cash or letters of credit and, in most instances, enter into netting arrangements. See Note 4 for additional fair value disclosures. | |||||||||||||||||||||||||||||
Netting of Cash Collateral and Derivative Assets and Liabilities under Master Netting Arrangements We maintain accounts with brokers to facilitate financial derivative transactions in support of our energy marketing and risk management activities. Based on the value of our positions in these accounts and the associated margin requirements, we may be required to deposit cash into these broker accounts. | |||||||||||||||||||||||||||||
We have elected to net derivative assets and liabilities under master netting arrangements on our Consolidated Statements of Financial Position. With that election, we are also required to offset cash collateral held in our broker accounts with the associated net fair value of the instruments in the accounts. See Note 4 for additional information about our cash collateral. | |||||||||||||||||||||||||||||
Natural Gas and Weather Derivative Instruments The fair value of the natural gas derivative instruments that we use to manage exposures arising from changing natural gas prices and weather risk 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 5 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. As previously noted, such derivative instruments are reported at fair value each reporting period in our Consolidated Statements of Financial Position. 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. | |||||||||||||||||||||||||||||
For our Illinois weather risk associated with Nicor Gas, we have a corporate weather hedging program that utilizes weather derivatives to reduce the risk of lower operating margins potentially resulting from significantly warmer-than-normal weather in Illinois and is carried at intrinsic value. We will continue to use available methods to mitigate our exposure to weather in Illinois. | |||||||||||||||||||||||||||||
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, which occurs 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 our Consolidated Statements of Income in the period in which it occurs. We have not designated the remainder of our derivative instruments as hedges for accounting purposes and, accordingly, we record changes in the fair values of such instruments within cost of goods sold in our Consolidated Statements of Income 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 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 protect the operating margin we will ultimately 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 protect 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 in our Consolidated Statements of Financial Position, with changes in fair value recorded in operating revenues in our Consolidated Statements of Income 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 we recognize these demand charges and payments in our Consolidated Statements of Income in the period they are incurred. This difference in accounting methods can result in volatility in our reported earnings, even though the economic margin is substantially unchanged from the dates the transactions were consummated. | |||||||||||||||||||||||||||||
DebtWe estimate the fair value of debt using a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration, optionality and risk profile. In determining the market interest yield curve, we consider our currently assigned ratings for unsecured debt and the secured rating for the Nicor Gas first mortgage bonds. | |||||||||||||||||||||||||||||
Derivatives, Policy [Policy Text Block] | Derivative Instruments | ||||||||||||||||||||||||||||
Our policy is to classify derivative cash flows and gains and losses within the same financial statement category as the hedged item, rather than by the nature of the instrument. | |||||||||||||||||||||||||||||
Fair Value Hierarchy Derivative assets and liabilities are classified in their entirety into the previously described fair value hierarchy levels based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The measurement of fair value incorporates various factors required under the guidance. These factors include not only the credit standing of the counterparties involved and the impact of credit enhancements (such as cash deposits, letters of credit and priority interests), but also the impact of our own nonperformance risk on our liabilities. To mitigate the risk that a counterparty to a derivative instrument defaults on settlement or otherwise fails to perform under contractual terms, we have established procedures to monitor the creditworthiness of counterparties, seek guarantees or collateral backup in the form of cash or letters of credit and, in most instances, enter into netting arrangements. See Note 4 for additional fair value disclosures. | |||||||||||||||||||||||||||||
Netting of Cash Collateral and Derivative Assets and Liabilities under Master Netting Arrangements We maintain accounts with brokers to facilitate financial derivative transactions in support of our energy marketing and risk management activities. Based on the value of our positions in these accounts and the associated margin requirements, we may be required to deposit cash into these broker accounts. | |||||||||||||||||||||||||||||
We have elected to net derivative assets and liabilities under master netting arrangements on our Consolidated Statements of Financial Position. With that election, we are also required to offset cash collateral held in our broker accounts with the associated net fair value of the instruments in the accounts. See Note 4 for additional information about our cash collateral. | |||||||||||||||||||||||||||||
Natural Gas and Weather Derivative Instruments The fair value of the natural gas derivative instruments that we use to manage exposures arising from changing natural gas prices and weather risk 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 5 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. As previously noted, such derivative instruments are reported at fair value each reporting period in our Consolidated Statements of Financial Position. 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. | |||||||||||||||||||||||||||||
For our Illinois weather risk associated with Nicor Gas, we have a corporate weather hedging program that utilizes weather derivatives to reduce the risk of lower operating margins potentially resulting from significantly warmer-than-normal weather in Illinois and is carried at intrinsic value. We will continue to use available methods to mitigate our exposure to weather in Illinois. | |||||||||||||||||||||||||||||
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, which occurs 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 our Consolidated Statements of Income in the period in which it occurs. We have not designated the remainder of our derivative instruments as hedges for accounting purposes and, accordingly, we record changes in the fair values of such instruments within cost of goods sold in our Consolidated Statements of Income 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 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 protect the operating margin we will ultimately 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 protect 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 in our Consolidated Statements of Financial Position, with changes in fair value recorded in operating revenues in our Consolidated Statements of Income 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 we recognize these demand charges and payments in our Consolidated Statements of Income in the period they are incurred. This difference in accounting methods can result in volatility in our reported earnings, even though the economic margin is substantially unchanged from the dates the transactions were consummated. | |||||||||||||||||||||||||||||
DebtWe estimate the fair value of debt using a discounted cash flow technique that incorporates a market interest yield curve with adjustments for duration, optionality and risk profile. In determining the market interest yield curve, we consider our currently assigned ratings for unsecured debt and the secured rating for the Nicor Gas first mortgage bonds. | |||||||||||||||||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment | ||||||||||||||||||||||||||||
A summary of our PP&E by classification as of December 31, 2014 and 2013 is provided in the following table. | |||||||||||||||||||||||||||||
In millions | 2014 | 2013 | |||||||||||||||||||||||||||
Transportation and distribution | $ | 9,105 | $ | 8,371 | |||||||||||||||||||||||||
Storage facilities | 1,202 | 1,170 | |||||||||||||||||||||||||||
Other | 919 | 854 | |||||||||||||||||||||||||||
Construction work in progress | 326 | 543 | |||||||||||||||||||||||||||
Total PP&E, gross | 11,552 | 10,938 | |||||||||||||||||||||||||||
Less accumulated depreciation | 2,462 | 2,295 | |||||||||||||||||||||||||||
Total PP&E, net | $ | 9,090 | $ | 8,643 | |||||||||||||||||||||||||
Distribution Operations Our natural gas utilities’ PP&E consists of property and equipment that is currently in use, being held for future use and currently under construction. We report PP&E at its original cost, which includes: | |||||||||||||||||||||||||||||
● | material and labor; | ||||||||||||||||||||||||||||
● | contractor costs; | ||||||||||||||||||||||||||||
● | construction overhead costs; | ||||||||||||||||||||||||||||
● | AFUDC; and, | ||||||||||||||||||||||||||||
● | Nicor Gas’ pad gas - the portion considered to be non-recoverable is recorded as depreciable PP&E, while the portion considered to be recoverable is recorded as non-depreciable PP&E. | ||||||||||||||||||||||||||||
We recognize no gains or losses on depreciable utility property that is retired or otherwise disposed, as required under the composite depreciation method. Such gains and losses are ultimately refunded to, or recovered from, customers through future rate adjustments. Our natural gas utilities also hold property, primarily land; this is not presently used and useful in utility operations and is not included in rate base. Upon sale, any gain or loss is recognized in other income. | |||||||||||||||||||||||||||||
Retail Operations, Wholesale Services, Midstream Operations and Other PP&E includes property that is in use and under construction, and we report it at cost. We record a gain or loss within operation and maintenance expense for retired or otherwise disposed-of property. Natural gas in salt-dome storage at Jefferson Island and Golden Triangle that is retained as pad gas is classified as non-depreciable PP&E and is carried at cost. Central Valley has two types of pad gas in its depleted reservoir storage facility: The first is non-depreciable PP&E, which is carried at cost, and the second is non-recoverable, over which we have no contractual ownership. | |||||||||||||||||||||||||||||
On April 11, 2014, we entered into two arrangements associated with the Dalton Pipeline. The first was a construction and ownership agreement through which we will have a 50% undivided ownership interest in the 106 mile Dalton Pipeline that will be constructed in Georgia and serve as an extension of the Transco natural gas pipeline system into northwest Georgia. We also entered into an agreement to lease our 50% undivided ownership in the Dalton Pipeline once it is placed in service. The lease payments to be received are $26 million annually for an initial term of 25 years. The lessee will be responsible for maintaining the pipeline during the lease term and for providing service to transportation customers under its FERC-regulated tariff. Engineering design work has commenced and construction is expected to begin in the second quarter of 2016 with a targeted completion date in the second quarter of 2017. The capacity from this pipeline will further enhance system reliability as well as provide access to a more diverse supply of natural gas. | |||||||||||||||||||||||||||||
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. More information on our rates used and the rate method is provided in the following table. | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Atlanta Gas Light (1) | 2.3 | % | 2.6 | % | 2.6 | % | |||||||||||||||||||||||
Chattanooga Gas (1) | 2.5 | % | 2.5 | % | 2.5 | % | |||||||||||||||||||||||
Elizabethtown Gas (2) | 2.5 | % | 2.4 | % | 2.4 | % | |||||||||||||||||||||||
Elkton Gas (2) | 2.8 | % | 2.4 | % | 2.4 | % | |||||||||||||||||||||||
Florida City Gas (2) | 3.9 | % | 3.8 | % | 3.9 | % | |||||||||||||||||||||||
Nicor Gas (2) (3) | 3.1 | % | 3.1 | % | 4.1 | % | |||||||||||||||||||||||
Virginia Natural Gas (1) | 2.5 | % | 2.5 | % | 2.5 | % | |||||||||||||||||||||||
-1 | Average composite straight-line depreciation rates for depreciable property, excluding transportation equipment, which may be depreciated in excess of useful life and recovered in rates. | ||||||||||||||||||||||||||||
-2 | Composite straight-line depreciation rates. | ||||||||||||||||||||||||||||
-3 | In October 2013, the Illinois Commission approved a composite depreciation rate of 3.07%. The depreciation rate was effective as of August 30, 2013, the date the depreciation study was filed, and had the effect of reducing our 2014 and 2013 depreciation expense by $51 million and $19 million, respectively. | ||||||||||||||||||||||||||||
For our non-regulated segments, we compute depreciation expense on a straight-line basis over the following estimated useful lives of the assets. | |||||||||||||||||||||||||||||
In years | Estimated useful life | ||||||||||||||||||||||||||||
Transportation equipment | 5 – 10 | ||||||||||||||||||||||||||||
Storage caverns | 40 – 60 | ||||||||||||||||||||||||||||
Other | up to 40 | ||||||||||||||||||||||||||||
AFUDC and Capitalized Interest | |||||||||||||||||||||||||||||
Atlanta Gas Light, Nicor Gas, Chattanooga Gas and Elizabethtown Gas are authorized by applicable state regulatory agencies or legislatures to capitalize the cost of debt and equity funds as part of the cost of PP&E construction projects in our Consolidated Statements of Financial Position. The capital expenditures of our other three utilities do not qualify for AFUDC treatment. More information on our authorized or actual AFUDC rates is provided in the following table. | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Atlanta Gas Light | 8.1 | % | 8.1 | % | 8.1 | % | |||||||||||||||||||||||
Nicor Gas (1) | 0.24 | % | 0.31 | % | 0.36 | % | |||||||||||||||||||||||
Chattanooga Gas | 7.41 | % | 7.41 | % | 7.41 | % | |||||||||||||||||||||||
Elizabethtown Gas (1) | 0.44 | % | 0.41 | % | 0.51 | % | |||||||||||||||||||||||
AFUDC (in millions) (2) | $ | 7 | $ | 18 | $ | 8 | |||||||||||||||||||||||
-1 | Variable rate is determined by FERC method of AFUDC accounting. | ||||||||||||||||||||||||||||
-2 | Amount recorded in the Consolidated Statements of Income. | ||||||||||||||||||||||||||||
Asset Retirement Obligations | |||||||||||||||||||||||||||||
We record a liability at fair value for an asset retirement obligation (ARO) when a legal obligation to retire the asset has been incurred, with an offsetting increase to the carrying value of the related asset. Accretion of the ARO due to the passage of time is recorded as an operating expense. We have recorded an ARO of $3 million at December 31, 2014 and 2013 principally for our storage facilities. For our distribution PP&E, we cannot reasonably estimate the fair value of this obligation because we have determined that we have insufficient internal or industry information to reasonably estimate the potential settlement dates or costs. | |||||||||||||||||||||||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Impairment of Assets | ||||||||||||||||||||||||||||
Our goodwill is not amortized, but is subject to an annual impairment test. Our other long-lived assets, including our finite-lived intangible assets, require an impairment review when events or circumstances indicate that the carrying amount may not be recoverable. We base our evaluation of the recoverability of other long-lived assets on the presence of impairment indicators such as the future economic benefit of the assets, any historical or future profitability measurements and other external market conditions or factors. | |||||||||||||||||||||||||||||
Goodwill We perform an annual goodwill impairment test on our reporting units that contain goodwill during the fourth quarter of each year, or more frequently if impairment indicators arise. These indicators include, but are not limited to, a significant change in operating performance, the business climate, legal or regulatory factors, or a planned sale or disposition of a significant portion of the business. To estimate the fair value of our reporting units, we use two generally accepted valuation approaches, the income approach and the market approach, using assumptions consistent with a market participant’s perspective. | |||||||||||||||||||||||||||||
Under the income approach, fair value is estimated based on the present value of estimated future cash flows discounted at an appropriate risk-free rate that takes into consideration the time value of money, inflation and the risks inherent in ownership of the business being valued. The cash flow estimates contain a degree of uncertainty, and changes in the projected cash flows could significantly increase or decrease the estimated fair value of a reporting unit. For the regulated reporting units, a fair recovery of, and return on, costs prudently incurred to serve customers is assumed. An unfavorable outcome in a rate case could cause the fair value of these reporting units to decrease. Key assumptions used in the income approach include the return on equity for the regulated reporting units, long-term growth rates used to determine terminal values 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 is based on a combination of historical and forecasted statistics for real gross domestic product and personal income for each utility service area. The estimated rates we will charge to customers for capacity in the storage caverns were based on internal and external rate forecasts. | |||||||||||||||||||||||||||||
Under the market approach, fair value is estimated by applying multiples to forecasted cash flows. This method uses metrics from similar publicly traded companies in the same industry, when available, to determine how much a knowledgeable investor in the marketplace would be willing to pay for an investment in a similar company. | |||||||||||||||||||||||||||||
We weight the results of the two valuation approaches to estimate the fair value of each reporting unit. Our goodwill impairment testing also develops a baseline test and performs a sensitivity analysis to calculate a reasonable valuation range. The sensitivities are derived by altering those assumptions that are subjective in nature and inherent to a discounted cash flows calculation. | |||||||||||||||||||||||||||||
The significant assumptions that drive the estimated values of our reporting units are projected cash flows, discount rates, growth rates, weighted average cost of capital (WACC) and market multiples. Due to the subjectivity of these assumptions, we cannot provide assurance that future analyses will not result in impairment, as a future impairment depends on market and economic factors affecting fair value. Our annual goodwill impairment analysis in the fourth quarter of 2014 indicated that the estimated fair values of all but one of our reporting units with goodwill were in excess of the carrying values by approximately 30% to over 600%, and were not at risk of failing step one of the impairment test. | |||||||||||||||||||||||||||||
Within our midstream operations segment, the estimated fair value of our storage and fuels reporting unit with $14 million of goodwill, exceeded its carrying value by less than 5% and is at risk of failing the step one test. The discounted cash flow model used in the goodwill impairment test for this reporting unit assumed discrete period revenue growth through fiscal 2023 to reflect the recovery of subscription rates, stabilization of earnings and establishment of a reasonable base year off of which we estimated the terminal value. In the terminal year, we assumed a long-term earnings growth rate of 2.5%, which is consistent with our 2013 annual goodwill impairment test, and we believe is appropriate given the current economic and industry specific expectations. As of the valuation date, we utilized a WACC of 7.0%, which we believe is appropriate as it reflects the relative risk, the time value of money, and is consistent with the peer group of this reporting unit as well as the discount rate that was utilized in our 2013 annual goodwill impairment test. | |||||||||||||||||||||||||||||
The cash flow forecast for the storage and fuels reporting unit assumed earnings growth over the next nine years. Should this growth not occur, this reporting unit may fail step one of a goodwill impairment test in a future period. Along with any reductions to our cash flow forecast, changes in other key assumptions used in our 2014 annual impairment analysis may result in the requirement to proceed to step two of the goodwill impairment test in future periods. | |||||||||||||||||||||||||||||
We will continue to monitor this reporting unit for impairment and note that continued declines in capacity or subscription rates, declines for a sustained period at the current market rates or other changes to the key assumptions and factors used in this analysis may result in a future impairment of goodwill. The amounts of goodwill as of December 31, 2014 and 2013 are provided below. In 2013, our goodwill increased by $51 million for an acquisition in our retail operations segment. For 2013, the goodwill at Tropical Shipping was classified as held for sale. See Note 14 for additional information. | |||||||||||||||||||||||||||||
In millions | Distribution Operations | Retail Operations | Wholesale | Midstream Operations | Other | Consolidated | |||||||||||||||||||||||
Services | |||||||||||||||||||||||||||||
Goodwill - December 31, 2014 and 2013 | $ | 1,640 | $ | 173 | $ | - | $ | 14 | $ | - | $ | 1,827 | |||||||||||||||||
Long-Lived AssetsWe depreciate or amortize our long-lived assets and other intangible assets over their useful lives. We have no significant indefinite-lived intangible assets. These long-lived assets and other intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When such events or circumstances are present, we assess the recoverability of long-lived assets by determining whether the carrying value will be recovered through expected future cash flows. Impairment is indicated if the carrying amount of the long-lived asset exceeds the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If impairment is indicated, we record an impairment loss equal to the difference between the carrying value and the fair value of the long-lived asset. | |||||||||||||||||||||||||||||
We determined that there were no long-lived asset impairments in 2014; however, our Golden Triangle storage facility within midstream operations currently has less than a 5% cushion of its undiscounted cash flows over its book value. Accordingly, if it experiences further natural gas price declines or a prolonged slow recovery, future analyses may result in an impairment of these long-lived assets. We will continue to monitor the storage assets in midstream operations. In 2013, we recorded an $8 million loss related to Sawgrass Storage. | |||||||||||||||||||||||||||||
Intangible AssetsOur intangible assets within our retail operations segment are presented in the following table and represent the estimated fair value at the date of acquisition of the acquired intangible assets in our businesses. As indicated previously, we perform an impairment review when impairment indicators are present. If present, we first determine whether the carrying amount of the asset is recoverable through the undiscounted future cash flows expected from the asset. If the carrying amount is not recoverable, we measure the impairment loss, if any, as the amount by which the carrying amount of the asset exceeds its fair value. | |||||||||||||||||||||||||||||
Weighted average | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||
amortization | |||||||||||||||||||||||||||||
In millions | period | Gross | Accumulated amortization | Net | Gross | Accumulated amortization | Net | ||||||||||||||||||||||
(in years) | |||||||||||||||||||||||||||||
Customer relationships | 13 | $ | 130 | $ | (42 | ) | $ | 88 | $ | 130 | $ | (25 | ) | $ | 105 | ||||||||||||||
Trade names | 13 | 45 | (8 | ) | 37 | 45 | (5 | ) | 40 | ||||||||||||||||||||
Total | $ | 175 | $ | (50 | ) | $ | 125 | $ | 175 | $ | (30 | ) | $ | 145 | |||||||||||||||
We amortize these intangible assets in a manner in which the economic benefits are consumed utilizing the undiscounted cash flows that were used in the determination of their fair values. Amortization expense was $20 million in 2014, $18 million in 2013 and $13 million in 2012. Amortization expense for the next five years is as follows: | |||||||||||||||||||||||||||||
In millions | Amortization Expense | ||||||||||||||||||||||||||||
2015 | $ | 17 | |||||||||||||||||||||||||||
2016 | 15 | ||||||||||||||||||||||||||||
2017 | 14 | ||||||||||||||||||||||||||||
2018 | 13 | ||||||||||||||||||||||||||||
2019 | 11 | ||||||||||||||||||||||||||||
Pension and Other Postretirement Plans, Nonpension Benefits, Policy [Policy Text Block] | Accounting for Retirement Benefit Plans | ||||||||||||||||||||||||||||
We recognize the funded status of our plans as an asset or a liability on our Consolidated Statements of Financial Position, measuring the plans’ assets and obligations that determine our funded status as of the end of the fiscal year. We generally recognize, as a component of OCI, the changes in funded status that occurred during the year that are not yet recognized as part of net periodic benefit cost. Because substantially all of its retirement costs are recoverable through base rates, Nicor Gas defers the change in funded status that would normally be charged or credited to comprehensive income to a regulatory asset or liability until the period in which the costs are included in base rates, in accordance with the authoritative guidance for rate-regulated entities. The assets of our retirement plans are measured at fair value within the funded status and are classified in the fair value hierarchy in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||||||||||||||
In determining net periodic benefit cost, the expected return on plan assets component is determined by applying our expected return on assets to a calculated asset value, rather than to the fair value of the assets as of the end of the previous fiscal year. For more information, see Note 6. In addition, we have elected to amortize gains and losses caused by actual experience that differs from our assumptions into subsequent periods. The amount to be amortized is the amount of the cumulative gain or loss as of the beginning of the year, excluding those gains and losses not yet reflected in the calculated value, that exceeds 10 percent of the greater of the benefit obligation or the calculated asset value; and the amortization period is the average remaining service period of active employees. | |||||||||||||||||||||||||||||
Income Tax, Policy [Policy Text Block] | Taxes | ||||||||||||||||||||||||||||
Income Taxes The reporting of our assets and liabilities for financial accounting purposes differs from the reporting for income tax purposes. The principal difference between net income and taxable income relates to the timing of deductions, primarily due to the benefits of tax depreciation since we generally depreciate assets for tax purposes over a shorter period of time than for book purposes. The determination of our provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. Significant judgment is required in assessing the timing and amounts of deductible and taxable items. We report the tax effects of depreciation and other temporary differences as deferred income tax assets or liabilities in our Consolidated Statements of Financial Position. | |||||||||||||||||||||||||||||
We have current and deferred income taxes in our Consolidated Statements of Income. Current income tax expense consists of federal and state income tax less applicable tax credits related to the current year. Deferred income tax expense is generally equal to the changes in the deferred income tax liability and regulatory tax liability during the year. | |||||||||||||||||||||||||||||
Accumulated Deferred Income Tax Assets and Liabilities As noted above, we report some of our assets and liabilities differently for financial accounting purposes than we do for income tax purposes. We report the tax effects of the differences in those items as deferred income tax assets or liabilities in our Consolidated Statements of Financial Position. We measure these deferred income tax assets and liabilities using enacted income tax rates. | |||||||||||||||||||||||||||||
With the sale of Tropical Shipping in the third quarter of 2014, we determined that the cumulative foreign earnings of that business would no longer be indefinitely reinvested offshore. Accordingly, we recognized income tax expense of $60 million in 2014 related to the cumulative foreign earnings for which no tax liabilities had been previously recorded, resulting in our repatriation of $86 million in cash. Refer to Note 14 for additional information. | |||||||||||||||||||||||||||||
Income Tax Benefits The authoritative guidance related to income taxes requires us to determine whether tax benefits claimed or expected to be claimed on our tax return should be recorded in our consolidated financial statements. Under this guidance, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based upon the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. | |||||||||||||||||||||||||||||
Uncertain Tax Positions We recognize accrued interest related to uncertain tax positions in interest expense and penalties in operating expense in our Consolidated Statements of Income. | |||||||||||||||||||||||||||||
Tax Collections We do not collect income taxes from our customers on behalf of governmental authorities. However, we do collect and remit various other taxes on behalf of various governmental authorities. We record these amounts in our Consolidated Statements of Financial Position. In other instances, we are allowed to recover from customers other taxes that are imposed upon us. We record such taxes as operating expenses and record the corresponding customer charges as operating revenues. | |||||||||||||||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenues | ||||||||||||||||||||||||||||
Distribution operations We record revenues when goods or services are provided to customers. Those revenues are based on rates approved by the state regulatory commissions of our utilities. | |||||||||||||||||||||||||||||
As required by the Georgia Commission, Atlanta Gas Light bills Marketers in equal monthly installments for each residential, commercial and industrial end-use customer’s distribution costs. Additionally, as required by the Georgia Commission, Atlanta Gas Light bills Marketers for capacity costs utilizing a seasonal rate design for the calculation of each residential end-use customer’s annual straight-fixed-variable (SFV) charge, which reflects the historic volumetric usage pattern for the entire residential class. Generally, this seasonal rate design results in billing the Marketers a higher capacity charge in the winter months and a lower charge in the summer months, which impacts our operating cash flows. However, this seasonal billing requirement does not impact our revenues, which are recognized on a straight-line basis, because the associated rate mechanism ensures that we ultimately collect the full annual amount of the SFV charges. | |||||||||||||||||||||||||||||
All of our utilities, with the exception of Atlanta Gas Light, have rate structures that include volumetric rate designs that allow the opportunity to recover of certain costs based on gas usage. Revenues from sales and transportation services are recognized in the same period in which the related volumes are delivered to customers. Revenues from residential and certain commercial and industrial customers are recognized on the basis of scheduled meter readings. Additionally, unbilled revenues are recognized for estimated deliveries of gas not yet billed to these customers, from the last bill date to the end of the accounting period. For other commercial and industrial customers and for all wholesale customers, revenues are based on actual deliveries to the end of the period. | |||||||||||||||||||||||||||||
The tariffs for Virginia Natural Gas, Elizabethtown Gas and Chattanooga Gas contain WNAs that partially mitigate the impact of unusually cold or warm weather on customer billings and operating margin. The WNAs have the effect of reducing customer bills when winter weather is colder-than-normal and increasing customer bills when weather is warmer-than-normal. In addition, the tariffs for Virginia Natural Gas, Chattanooga Gas and Elkton Gas contain revenue normalization mechanisms that mitigate the impact of conservation and declining customer usage. | |||||||||||||||||||||||||||||
Revenue Taxes We charge customers for gas revenue and gas use taxes imposed on us and remit amounts owed to various governmental authorities. Our policy for gas revenue taxes is to record the amounts charged by us to customers, which for some taxes includes a small administrative fee, as operating revenues, and to record the related taxes imposed on us as operating expenses in our Consolidated Statements of Income. Our policy for gas use taxes is to exclude these taxes from revenue and expense, aside from a small administrative fee that is included in operating revenues as the tax is imposed on the customer. As a result, the amount recorded in operating revenues will exceed the amount recorded in operating expenses by the amount of administrative fees that are retained by the company. Revenue taxes included in operating expenses were $130 million in 2014, $110 million in 2013 and $85 million in 2012. | |||||||||||||||||||||||||||||
Retail operations Revenues from natural gas sales and transportation services are recognized in the same period in which the related volumes are delivered to customers. Sales revenues from residential and certain commercial and industrial customers are recognized on the basis of scheduled meter readings. In addition, unbilled revenues are recognized for estimated deliveries of gas not yet billed to these customers, from the most recent meter reading date to the end of the accounting period. For other commercial and industrial customers and for all wholesale customers, revenues are based on actual deliveries during the period. | |||||||||||||||||||||||||||||
We recognize revenues on 12-month utility-bill management contracts as the lesser of cumulative earned or cumulative billed amounts. We recognize revenues for warranty and repair contracts on a straight-line basis over the contract term. Revenues for maintenance services are recognized at the time such services are performed. | |||||||||||||||||||||||||||||
Wholesale services Revenues from energy and risk management activities are required under authoritative guidance to be netted with the associated costs. Profits from sales between segments are eliminated and are recognized as goods or services sold to end-use customers. Transactions that qualify as derivatives under authoritative guidance related to derivatives and hedging are recorded at fair value with changes in fair value recognized in earnings in the period of change and characterized as unrealized gains or losses. Gains and losses on derivatives held for energy trading purposes are required to be presented net in revenue. | |||||||||||||||||||||||||||||
Midstream operations We record operating revenues for storage and transportation services in the period in which volumes are transported and storage services are provided. The majority of our storage services are covered under medium to long-term contracts at fixed market-based rates. We recognize our park and loan revenues ratably over the life of the contract. | |||||||||||||||||||||||||||||
Cost of Sales, Policy [Policy Text Block] | Cost of Goods Sold | ||||||||||||||||||||||||||||
Distribution operations Excluding Atlanta Gas Light, which does not sell natural gas to end-use customers, we charge our utility customers for natural gas consumed using natural gas cost recovery mechanisms set by the state regulatory agencies. Under these mechanisms, all prudently incurred natural gas costs are passed through to customers without markup, subject to regulatory review. In accordance with the authoritative guidance for rate-regulated entities, we defer or accrue (that is, include as an asset or liability in the Consolidated Statements of Financial Position and exclude from, or include in, the Consolidated Statements of Income, respectively) the difference between the actual cost of goods sold and the amount of commodity revenue earned in a given period, such that no operating margin is recognized related to these costs. The deferred or accrued amount is either billed or refunded to our customers prospectively through adjustments to the commodity rate. Deferred natural gas costs are reflected as regulatory assets and accrued natural gas costs are reflected as regulatory liabilities. For more information, see Note 3. | |||||||||||||||||||||||||||||
Retail operations Our retail operations customers are charged for actual or estimated natural gas consumed. Within our cost of goods sold, we also include costs of fuel and lost and unaccounted for gas, adjustments to reduce the value of our inventories to market value and gains and losses associated with certain derivatives. Costs to service our warranty and repair contract claims and costs associated with the installation of HVAC equipment are recorded to cost of goods sold. | |||||||||||||||||||||||||||||
Lease, Policy [Policy Text Block] | Operating Leases | ||||||||||||||||||||||||||||
We have certain operating leases with provisions for step rent or escalation payments and certain lease concessions. We account for these leases by recognizing the future minimum lease payments on a straight-line basis over the respective minimum lease terms, in accordance with authoritative guidance related to leases. This accounting treatment does not affect the future annual operating lease cash obligations. For more information, see Note 11. | |||||||||||||||||||||||||||||
OtherIncome [Policy Text Block] | Other IncomeOur other income is detailed in the following table. For more information on our equity investment income, see Note 10.In millions 2014 2013 2012 Equity investment income $ 8 $ 3 $ 13 AFUDC - equity 5 12 6 Other, net 1 1 5 Total other income $ 14 $ 16 $ 24 | ||||||||||||||||||||||||||||
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 occurs 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 award programs. The vesting of certain shares of the restricted stock and restricted stock units depends on the satisfaction of defined performance criteria and/or time-based 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. | |||||||||||||||||||||||||||||
In millions (except per share amounts) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Income from continuing operations attributable to AGL Resources Inc. | $ | 562 | $ | 290 | $ | 259 | |||||||||||||||||||||||
(Loss) income from discontinued operations, net of tax | (80 | ) | 5 | 1 | |||||||||||||||||||||||||
Net income attributable to AGL Resources Inc. | $ | 482 | $ | 295 | $ | 260 | |||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Basic weighted average number of common shares outstanding (1) | 118.8 | 117.9 | 117 | ||||||||||||||||||||||||||
Effect of dilutive securities | 0.4 | 0.4 | 0.5 | ||||||||||||||||||||||||||
Diluted weighted average number of common shares outstanding (2) | 119.2 | 118.3 | 117.5 | ||||||||||||||||||||||||||
Basic earnings per common share | |||||||||||||||||||||||||||||
Continuing operations | $ | 4.73 | $ | 2.46 | $ | 2.21 | |||||||||||||||||||||||
Discontinued operations | (0.67 | ) | 0.04 | 0.01 | |||||||||||||||||||||||||
Basic earnings per common share attributable to AGL Resources Inc. common shareholders | $ | 4.06 | $ | 2.5 | $ | 2.22 | |||||||||||||||||||||||
Diluted earnings per common share (2) | |||||||||||||||||||||||||||||
Continuing operations | $ | 4.71 | $ | 2.45 | $ | 2.2 | |||||||||||||||||||||||
Discontinued operations | (0.67 | ) | 0.04 | 0.01 | |||||||||||||||||||||||||
Diluted earnings per common share attributable to AGL Resources Inc. common shareholders | $ | 4.04 | $ | 2.49 | $ | 2.21 | |||||||||||||||||||||||
(1)Daily weighted average shares outstanding. | |||||||||||||||||||||||||||||
(2)There were no outstanding stock options excluded from the computation of diluted earnings per common share attributable to AGL Resources Inc. for any of the periods presented because their effect would have been anti-dilutive, as the exercise prices were greater than the average market price. | |||||||||||||||||||||||||||||
Discontinued Operations, Policy [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, within 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 were eligible to receive contingent cash consideration up to $8 million with a guaranteed minimum receipt of $3 million that was recognized during 2013. The remaining $5 million of contingent cash consideration was to be received from the buyer annually over a five-year earn out period based upon the financial performance of Compass Energy. In the third quarter of 2014, we negotiated with the buyer to settle the future earn-out payments and we received $4 million, resulting in the recognition of a $3 million gain. We have a five-year agreement through April 2018 to supply natural gas to our former customers. As a result of our continued involvement, the sale of Compass Energy did not meet the criteria for treatment as a discontinued operation in 2014. Under the new accounting guidance, which became effective for us on January 1, 2015, the sale of Compass Energy is not considered a strategic shift in operations and would not be reflected as a discontinued operation if we were to terminate our continued involvement in the future. | |||||||||||||||||||||||||||||
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Non-Wholly Owned Entities | ||||||||||||||||||||||||||||
We hold ownership interests in a number of business ventures with varying ownership structures. We evaluate all of our partnership interests and other variable interests to determine if each entity is a variable interest entity (VIE), as defined in the authoritative accounting guidance. If a venture is a VIE for which we are the primary beneficiary, we consolidate the assets, liabilities and results of operations of the entity. We reassess our conclusion as to whether an entity is a VIE upon certain occurrences, which are deemed reconsideration events under the guidance. We have concluded that the only venture that we are required to consolidate as a VIE, as we are the primary beneficiary, is SouthStar. On our Consolidated Statements of Financial Position, we recognize Piedmont’s share of the non-wholly owned entity as a separate component of equity entitled “noncontrolling interest.” Piedmont’s share of current operations is reflected in “net income attributable to the noncontrolling interest” on our Consolidated Statements of Income. The consolidation of SouthStar has no effect on our calculation of basic or diluted earnings per common share amounts, which are based upon net income attributable to AGL Resources Inc. | |||||||||||||||||||||||||||||
For entities that are not determined to be VIEs, we evaluate whether we have control or significant influence over the investee to determine the appropriate consolidation and presentation. Generally, entities under our control are consolidated, and entities over which we can exert significant influence, but do not control, are accounted for under the equity method of accounting. However, we also invest in partnerships and limited liability companies that maintain separate ownership accounts. All such investments are required to be accounted for under the equity method unless our interest is so minor that there is virtually no influence over operating and financial policies, as are all investments in joint ventures. | |||||||||||||||||||||||||||||
Investments accounted for under the equity method are included in long-term investments on our Consolidated Statements of Financial Position, and the equity income is recorded within other income on our Consolidated Statements of Income and was immaterial for all periods presented. For additional information, see Note 10. | |||||||||||||||||||||||||||||
Business Combinations Policy [Policy Text Block] | Acquisitions | ||||||||||||||||||||||||||||
On January 31, 2013, our retail operations segment acquired approximately 500,000 service contracts and certain other assets from NiSource Inc. for $122 million. These service contracts provide home warranty protection solutions and energy efficiency leasing solutions to residential and small business utility customers and complement the retail business acquired in the Nicor merger. Intangible assets related to this acquisition are primarily customer relationships of $46 million and trade names of $16 million. These intangible assets are being amortized over approximately 14 years for customer relationships and 10 years for trade names. The final allocation of the purchase price to the fair value of assets acquired and liabilities assumed is presented in the following table: | |||||||||||||||||||||||||||||
In millions | |||||||||||||||||||||||||||||
Current assets | $ | 3 | |||||||||||||||||||||||||||
PP&E | 12 | ||||||||||||||||||||||||||||
Goodwill | 51 | ||||||||||||||||||||||||||||
Intangible assets | 62 | ||||||||||||||||||||||||||||
Current liabilities | (6 | ) | |||||||||||||||||||||||||||
Total purchase price | $ | 122 | |||||||||||||||||||||||||||
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 being amortized over 15 years. | |||||||||||||||||||||||||||||
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 rate-regulated subsidiaries, 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. | |||||||||||||||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Accounting Developments | ||||||||||||||||||||||||||||
In April 2014, the FASB issued authoritative guidance related to reporting discontinued operations. The guidance generally raises the threshold for disposals to qualify as discontinued operations and requires new disclosures of both discontinued operations and certain other material disposals that do not meet the definition of a discontinued operation. The guidance was effective for us prospectively beginning January 1, 2015. It had no impact on our accounting for the sale of Tropical Shipping. There was no impact on January 1, 2015, nor is there any reason we would expect this guidance to have a material impact on our consolidated financial statements in the foreseeable future. | |||||||||||||||||||||||||||||
In May 2014, the FASB issued an update to authoritative guidance related to revenue from contracts with customers. The update replaces most of the existing guidance with a single set of principles for recognizing revenue from contracts with customers. The guidance will be effective for us beginning January 1, 2017. Early adoption is not permitted. The new guidance must be applied retrospectively to each prior period presented or via a cumulative effect upon the date of initial application. We have not yet determined the impact of this new guidance, nor have we selected a transition method. | |||||||||||||||||||||||||||||
In June 2014, the FASB issued an update to authoritative guidance related to accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The guidance will be effective for us beginning January 1, 2016, and it will have no impact on our consolidated financial statements for our existing share-based plans. |
Note_2_Significant_Accounting_1
Note 2 - Significant Accounting Policies and Methods of Application (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Tables) [Line Items] | |||||||||||||||||||||||||||||
Schedule of Inventory Lower of Cost or Market Adjustment [Table Text Block] | In millions | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
Retail operations | $ | 4 | $ | 1 | $ | 3 | |||||||||||||||||||||||
Wholesale services (1) | 73 | 8 | 19 | ||||||||||||||||||||||||||
Midstream operations | - | - | 1 | ||||||||||||||||||||||||||
Total | $ | 77 | $ | 9 | $ | 23 | |||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] | In millions | 2014 | 2013 | ||||||||||||||||||||||||||
Transportation and distribution | $ | 9,105 | $ | 8,371 | |||||||||||||||||||||||||
Storage facilities | 1,202 | 1,170 | |||||||||||||||||||||||||||
Other | 919 | 854 | |||||||||||||||||||||||||||
Construction work in progress | 326 | 543 | |||||||||||||||||||||||||||
Total PP&E, gross | 11,552 | 10,938 | |||||||||||||||||||||||||||
Less accumulated depreciation | 2,462 | 2,295 | |||||||||||||||||||||||||||
Total PP&E, net | $ | 9,090 | $ | 8,643 | |||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | In millions | Distribution Operations | Retail Operations | Wholesale | Midstream Operations | Other | Consolidated | ||||||||||||||||||||||
Services | |||||||||||||||||||||||||||||
Goodwill - December 31, 2014 and 2013 | $ | 1,640 | $ | 173 | $ | - | $ | 14 | $ | - | $ | 1,827 | |||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Weighted average | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||
amortization | |||||||||||||||||||||||||||||
In millions | period | Gross | Accumulated amortization | Net | Gross | Accumulated amortization | Net | ||||||||||||||||||||||
(in years) | |||||||||||||||||||||||||||||
Customer relationships | 13 | $ | 130 | $ | (42 | ) | $ | 88 | $ | 130 | $ | (25 | ) | $ | 105 | ||||||||||||||
Trade names | 13 | 45 | (8 | ) | 37 | 45 | (5 | ) | 40 | ||||||||||||||||||||
Total | $ | 175 | $ | (50 | ) | $ | 125 | $ | 175 | $ | (30 | ) | $ | 145 | |||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | In millions | Amortization Expense | |||||||||||||||||||||||||||
2015 | $ | 17 | |||||||||||||||||||||||||||
2016 | 15 | ||||||||||||||||||||||||||||
2017 | 14 | ||||||||||||||||||||||||||||
2018 | 13 | ||||||||||||||||||||||||||||
2019 | 11 | ||||||||||||||||||||||||||||
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | In millions | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
Equity investment income | $ | 8 | $ | 3 | $ | 13 | |||||||||||||||||||||||
AFUDC - equity | 5 | 12 | 6 | ||||||||||||||||||||||||||
Other, net | 1 | 1 | 5 | ||||||||||||||||||||||||||
Total other income | $ | 14 | $ | 16 | $ | 24 | |||||||||||||||||||||||
Schedule of Weighted Average Number of Shares [Table Text Block] | In millions (except per share amounts) | 2014 | 2013 | 2012 | |||||||||||||||||||||||||
Income from continuing operations attributable to AGL Resources Inc. | $ | 562 | $ | 290 | $ | 259 | |||||||||||||||||||||||
(Loss) income from discontinued operations, net of tax | (80 | ) | 5 | 1 | |||||||||||||||||||||||||
Net income attributable to AGL Resources Inc. | $ | 482 | $ | 295 | $ | 260 | |||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Basic weighted average number of common shares outstanding (1) | 118.8 | 117.9 | 117 | ||||||||||||||||||||||||||
Effect of dilutive securities | 0.4 | 0.4 | 0.5 | ||||||||||||||||||||||||||
Diluted weighted average number of common shares outstanding (2) | 119.2 | 118.3 | 117.5 | ||||||||||||||||||||||||||
Basic earnings per common share | |||||||||||||||||||||||||||||
Continuing operations | $ | 4.73 | $ | 2.46 | $ | 2.21 | |||||||||||||||||||||||
Discontinued operations | (0.67 | ) | 0.04 | 0.01 | |||||||||||||||||||||||||
Basic earnings per common share attributable to AGL Resources Inc. common shareholders | $ | 4.06 | $ | 2.5 | $ | 2.22 | |||||||||||||||||||||||
Diluted earnings per common share (2) | |||||||||||||||||||||||||||||
Continuing operations | $ | 4.71 | $ | 2.45 | $ | 2.2 | |||||||||||||||||||||||
Discontinued operations | (0.67 | ) | 0.04 | 0.01 | |||||||||||||||||||||||||
Diluted earnings per common share attributable to AGL Resources Inc. common shareholders | $ | 4.04 | $ | 2.49 | $ | 2.21 | |||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | In millions | ||||||||||||||||||||||||||||
Current assets | $ | 3 | |||||||||||||||||||||||||||
PP&E | 12 | ||||||||||||||||||||||||||||
Goodwill | 51 | ||||||||||||||||||||||||||||
Intangible assets | 62 | ||||||||||||||||||||||||||||
Current liabilities | (6 | ) | |||||||||||||||||||||||||||
Total purchase price | $ | 122 | |||||||||||||||||||||||||||
Depreciation [Member] | |||||||||||||||||||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Tables) [Line Items] | |||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Atlanta Gas Light (1) | 2.3 | % | 2.6 | % | 2.6 | % | |||||||||||||||||||||||
Chattanooga Gas (1) | 2.5 | % | 2.5 | % | 2.5 | % | |||||||||||||||||||||||
Elizabethtown Gas (2) | 2.5 | % | 2.4 | % | 2.4 | % | |||||||||||||||||||||||
Elkton Gas (2) | 2.8 | % | 2.4 | % | 2.4 | % | |||||||||||||||||||||||
Florida City Gas (2) | 3.9 | % | 3.8 | % | 3.9 | % | |||||||||||||||||||||||
Nicor Gas (2) (3) | 3.1 | % | 3.1 | % | 4.1 | % | |||||||||||||||||||||||
Virginia Natural Gas (1) | 2.5 | % | 2.5 | % | 2.5 | % | |||||||||||||||||||||||
Estimated Useful Lives [Member] | |||||||||||||||||||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Tables) [Line Items] | |||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] | In years | Estimated useful life | |||||||||||||||||||||||||||
Transportation equipment | 5 – 10 | ||||||||||||||||||||||||||||
Storage caverns | 40 – 60 | ||||||||||||||||||||||||||||
Other | up to 40 | ||||||||||||||||||||||||||||
Authorized AFUDC Rates [Member] | |||||||||||||||||||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Tables) [Line Items] | |||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Atlanta Gas Light | 8.1 | % | 8.1 | % | 8.1 | % | |||||||||||||||||||||||
Nicor Gas (1) | 0.24 | % | 0.31 | % | 0.36 | % | |||||||||||||||||||||||
Chattanooga Gas | 7.41 | % | 7.41 | % | 7.41 | % | |||||||||||||||||||||||
Elizabethtown Gas (1) | 0.44 | % | 0.41 | % | 0.51 | % | |||||||||||||||||||||||
AFUDC (in millions) (2) | $ | 7 | $ | 18 | $ | 8 |
Note_3_Regulated_Operations_Ta
Note 3 - Regulated Operations (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Note 3 - Regulated Operations (Tables) [Line Items] | |||||||||||||||||||||||||||||
Schedule of Regulatory Assets [Table Text Block] | In millions | 2014 | 2013 | ||||||||||||||||||||||||||
Regulatory assets | |||||||||||||||||||||||||||||
Recoverable ERC | $ | 49 | $ | 45 | |||||||||||||||||||||||||
Recoverable pension and retiree welfare benefit costs | 12 | 9 | |||||||||||||||||||||||||||
Recoverable seasonal rates | 10 | 10 | |||||||||||||||||||||||||||
Deferred natural gas costs | 3 | 1 | |||||||||||||||||||||||||||
Other | 9 | 49 | |||||||||||||||||||||||||||
Total regulatory assets - current | 83 | 114 | |||||||||||||||||||||||||||
Recoverable ERC | 326 | 433 | |||||||||||||||||||||||||||
Recoverable pension and retiree welfare benefit costs | 110 | 99 | |||||||||||||||||||||||||||
Long-term debt fair value adjustment | 74 | 82 | |||||||||||||||||||||||||||
Recoverable regulatory infrastructure program costs | 69 | 55 | |||||||||||||||||||||||||||
Other | 52 | 36 | |||||||||||||||||||||||||||
Total regulatory assets - long-term | 631 | 705 | |||||||||||||||||||||||||||
Total regulatory assets | $ | 714 | $ | 819 | |||||||||||||||||||||||||
Regulatory liabilities | |||||||||||||||||||||||||||||
Bad debt over collection | $ | 33 | $ | 41 | |||||||||||||||||||||||||
Accrued natural gas costs | 27 | 92 | |||||||||||||||||||||||||||
Accumulated removal costs | 25 | 27 | |||||||||||||||||||||||||||
Other | 27 | 23 | |||||||||||||||||||||||||||
Total regulatory liabilities - current | 112 | 183 | |||||||||||||||||||||||||||
Accumulated removal costs | 1,520 | 1,445 | |||||||||||||||||||||||||||
Regulatory income tax liability | 34 | 27 | |||||||||||||||||||||||||||
Unamortized investment tax credit | 22 | 26 | |||||||||||||||||||||||||||
Bad debt over collection | 12 | 17 | |||||||||||||||||||||||||||
Other | 13 | 3 | |||||||||||||||||||||||||||
Total regulatory liabilities - long-term | 1,601 | 1,518 | |||||||||||||||||||||||||||
Total regulatory liabilities | $ | 1,713 | $ | 1,701 | |||||||||||||||||||||||||
Environmental Exit Costs by Cost [Table Text Block] | In millions | # of sites | Probabilistic model cost estimates(1) | Engineering estimates(1) | Amount recorded | Expected costs over next 12 months | Cost recovery period | ||||||||||||||||||||||
Illinois (2) | 26 | $205 - $462 | $ | 30 | $ | 230 | $ | 41 | As incurred | ||||||||||||||||||||
New Jersey | 6 | 105 - 177 | 14 | 118 | 16 | 7 years | |||||||||||||||||||||||
Georgia and Florida | 13 | 40 - 81 | 15 | 56 | 21 | 5 years | |||||||||||||||||||||||
North Carolina (3) | 1 | n/a | 10 | 10 | 9 | No recovery | |||||||||||||||||||||||
Total | 46 | $350 - $720 | $ | 69 | $ | 414 | -4 | $ | 87 | ||||||||||||||||||||
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets [Table Text Block] | Actual | Total | Amount refunded in | Amount to be refunded in | |||||||||||||||||||||||||
In millions | Benchmark | bad debt | refund | 2013 | 2014 | 2015 | 2016 | ||||||||||||||||||||||
2014 | $ | 63 | $ | 35 | $ | 28 | $ | - | $ | - | $ | 16 | $ | 12 | |||||||||||||||
2013 | 63 | 21 | 42 | - | 25 | 17 | - | ||||||||||||||||||||||
2012 | 63 | 23 | 40 | 24 | 16 | - | - | ||||||||||||||||||||||
Regulatory Asset Off Balance Sheet [Member] | |||||||||||||||||||||||||||||
Note 3 - Regulated Operations (Tables) [Line Items] | |||||||||||||||||||||||||||||
Schedule of Regulatory Assets [Table Text Block] | In millions | Atlanta Gas Light | Virginia Natural Gas | Elizabethtown Gas | Total | ||||||||||||||||||||||||
31-Dec-14 | $ | 113 | $ | 12 | $ | 2 | $ | 127 | |||||||||||||||||||||
31-Dec-13 | 80 | 12 | 1 | 93 |
Note_4_Fair_Value_Measurements1
Note 4 - Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Note 4 - Fair Value Measurements (Tables) [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | In millions | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
Long-term debt carrying amount | $ | 3,802 | $ | 3,813 | |||||||||||||||||||||||||||||||||||||
Long-term debt fair value (1) | 4,231 | 3,956 | |||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | Fair value measurements using significant unobservable inputs - Level 3 (1) | ||||||||||||||||||||||||||||||||||||||||
In millions | Global hedged equity | Absolute return | Private capital | Total | |||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 38 | $ | 36 | $ | 23 | $ | 97 | |||||||||||||||||||||||||||||||||
Actual return on plan assets | 5 | 3 | 4 | 12 | |||||||||||||||||||||||||||||||||||||
Sales | - | - | (5 | ) | (5 | ) | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 43 | $ | 39 | $ | 22 | $ | 104 | |||||||||||||||||||||||||||||||||
Actual return on plan assets | 1 | 3 | 2 | 6 | |||||||||||||||||||||||||||||||||||||
Sales | (15 | ) | - | (4 | ) | (19 | ) | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 29 | $ | 42 | $ | 20 | $ | 91 | |||||||||||||||||||||||||||||||||
(1)There were no transfers out of Level 3, or between Level 1 and Level 2 for any of the periods presented. | |||||||||||||||||||||||||||||||||||||||||
Natural Gas and Interest Rate Derivatives [Member] | |||||||||||||||||||||||||||||||||||||||||
Note 4 - Fair Value Measurements (Tables) [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
In millions | Assets (1) | Liabilities | Assets (1) | Liabilities | |||||||||||||||||||||||||||||||||||||
Natural gas derivatives | |||||||||||||||||||||||||||||||||||||||||
Quoted prices in active markets (Level 1) | $ | 58 | $ | (80 | ) | $ | 6 | $ | (79 | ) | |||||||||||||||||||||||||||||||
Significant other observable inputs (Level 2) | 174 | (94 | ) | 67 | (79 | ) | |||||||||||||||||||||||||||||||||||
Netting of cash collateral | 52 | 81 | 43 | 78 | |||||||||||||||||||||||||||||||||||||
Total carrying value (2) (3) | $ | 284 | $ | (93 | ) | $ | 116 | $ | (80 | ) | |||||||||||||||||||||||||||||||
Natural Gas Derivatives [Member] | |||||||||||||||||||||||||||||||||||||||||
Note 4 - Fair Value Measurements (Tables) [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | 31-Dec-14 | ||||||||||||||||||||||||||||||||||||||||
Pension plans (1) | Welfare plans | ||||||||||||||||||||||||||||||||||||||||
In millions | Level 1 | Level 2 | Level 3 | Total | % of total | Level 1 | Level 2 | Level 3 | Total | % of total | |||||||||||||||||||||||||||||||
Cash | $ | 4 | $ | 1 | $ | - | $ | 5 | 1 | % | $ | 1 | $ | - | $ | - | $ | 1 | 1 | % | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||||||
U.S. large cap (2) | $ | 95 | $ | 203 | $ | - | $ | 298 | 33 | % | $ | - | $ | 51 | $ | - | $ | 51 | 57 | % | |||||||||||||||||||||
U.S. small cap (2) | 76 | 24 | - | 100 | 11 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
International companies (3) | - | 123 | - | 123 | 13 | % | - | 16 | - | 16 | 18 | % | |||||||||||||||||||||||||||||
Emerging markets (4) | - | 31 | - | 31 | 3 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Total equity securities | $ | 171 | $ | 381 | $ | - | $ | 552 | 60 | % | $ | - | $ | 67 | $ | - | $ | 67 | 75 | % | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds (5) | $ | - | $ | 233 | $ | - | $ | 233 | 25 | % | $ | - | $ | 22 | $ | - | $ | 22 | 24 | % | |||||||||||||||||||||
Other (or gov’t/muni bonds) | - | 33 | - | 33 | 4 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Total fixed income securities | $ | - | $ | 266 | $ | - | $ | 266 | 29 | % | $ | - | $ | 22 | $ | - | $ | 22 | 24 | % | |||||||||||||||||||||
Other types of investments: | |||||||||||||||||||||||||||||||||||||||||
Global hedged equity (6) | $ | - | $ | - | $ | 29 | $ | 29 | 3 | % | $ | - | $ | - | $ | - | $ | - | - | % | |||||||||||||||||||||
Absolute return (7) | - | - | 42 | 42 | 5 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Private capital (8) | - | - | 20 | 20 | 2 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Total other investments | $ | - | $ | - | $ | 91 | $ | 91 | 10 | % | $ | - | $ | - | $ | - | $ | - | - | % | |||||||||||||||||||||
Total assets at fair value | $ | 175 | $ | 648 | $ | 91 | $ | 914 | 100 | % | $ | 1 | $ | 89 | $ | - | $ | 90 | 100 | % | |||||||||||||||||||||
% of fair value hierarchy | 19 | % | 71 | % | 10 | % | 100 | % | 1 | % | 99 | % | - | % | 100 | % | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Pension plans (1) | Welfare plans | ||||||||||||||||||||||||||||||||||||||||
In millions | Level 1 | Level 2 | Level 3 | Total | % of total | Level 1 | Level 2 | Level 3 | Total | % of total | |||||||||||||||||||||||||||||||
Cash | $ | 3 | $ | 1 | $ | - | $ | 4 | - | % | $ | 1 | $ | - | $ | - | $ | 1 | 1 | % | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||||||
U.S. large cap (2) | $ | 93 | $ | 205 | $ | - | $ | 298 | 33 | % | $ | - | $ | 52 | $ | - | $ | 52 | 62 | % | |||||||||||||||||||||
U.S. small cap (2) | 72 | 29 | - | 101 | 11 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
International companies (3) | - | 139 | - | 139 | 15 | % | - | 14 | - | 14 | 17 | % | |||||||||||||||||||||||||||||
Emerging markets (4) | - | 34 | - | 34 | 4 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Total equity securities | $ | 165 | $ | 407 | $ | - | $ | 572 | 63 | % | $ | - | $ | 66 | $ | - | $ | 66 | 79 | % | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds (5) | $ | - | $ | 207 | $ | - | $ | 207 | 23 | % | $ | - | $ | 17 | $ | - | $ | 17 | 20 | % | |||||||||||||||||||||
Other (or gov’t/muni bonds) | - | 29 | - | 29 | 3 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Total fixed income securities | $ | - | $ | 236 | $ | - | $ | 236 | 26 | % | $ | - | $ | 17 | $ | - | $ | 17 | 20 | % | |||||||||||||||||||||
Other types of investments: | |||||||||||||||||||||||||||||||||||||||||
Global hedged equity (6) | $ | - | $ | - | $ | 43 | $ | 43 | 5 | % | $ | - | $ | - | $ | - | $ | - | - | % | |||||||||||||||||||||
Absolute return (7) | - | - | 39 | 39 | 4 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Private capital (8) | - | - | 22 | 22 | 2 | % | - | - | - | - | - | % | |||||||||||||||||||||||||||||
Total other investments | $ | - | $ | - | $ | 104 | $ | 104 | 11 | % | $ | - | $ | - | $ | - | $ | - | - | % | |||||||||||||||||||||
Total assets at fair value | $ | 168 | $ | 644 | $ | 104 | $ | 916 | 100 | % | $ | 1 | $ | 83 | $ | - | $ | 84 | 100 | % | |||||||||||||||||||||
% of fair value hierarchy | 19 | % | 70 | % | 11 | % | 100 | % | 1 | % | 99 | % | - | % | 100 | % |
Note_5_Derivative_Instruments_
Note 5 - Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | In Bcf (1) | 2014 (2) | 2013 | |||||||||||||||
Cash flow hedges | 9 | 6 | ||||||||||||||||
Not designated as hedges | 75 | 183 | ||||||||||||||||
Total volumes | 84 | 189 | ||||||||||||||||
Short position – cash flow hedges | (4 | ) | (6 | ) | ||||||||||||||
Short position – not designated as hedges | (2,828 | ) | (2,616 | ) | ||||||||||||||
Long position – cash flow hedges | 16 | 12 | ||||||||||||||||
Long position – not designated as hedges | 2,900 | 2,799 | ||||||||||||||||
Net long position | 84 | 189 | ||||||||||||||||
Loss Recognized In Income [Table Text Block] | In millions | 2014 | 2013 | |||||||||||||||
Nicor Gas | $ | 10 | $ | 4 | ||||||||||||||
Elizabethtown Gas | $ | 2 | $ | (6 | ) | |||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | 2014 | 2013 | ||||||||||||||||
In millions | Classification | Assets | Liabilities | Assets | Liabilities | |||||||||||||
Designated as cash flow or fair value hedges | ||||||||||||||||||
Natural gas contracts | Current | $ | 6 | $ | (11 | ) | $ | 3 | $ | (1 | ) | |||||||
Natural gas contracts | Long-term | - | (1 | ) | - | - | ||||||||||||
Total designated as cash flow or fair value hedges | $ | 6 | $ | (12 | ) | $ | 3 | $ | (1 | ) | ||||||||
Not designated as hedges | ||||||||||||||||||
Natural gas contracts | Current | $ | 1,061 | $ | (1,020 | ) | $ | 691 | $ | (761 | ) | |||||||
Natural gas contracts | Long-term | 145 | (119 | ) | 206 | (220 | ) | |||||||||||
Total not designated as hedges | $ | 1,206 | $ | (1,139 | ) | $ | 897 | $ | (981 | ) | ||||||||
Gross amount of recognized assets and liabilities (1) (2) | 1,212 | (1,151 | ) | 900 | (982 | ) | ||||||||||||
Gross amounts offset in our Consolidated Statements of Financial Position(2) | (925 | ) | 1,058 | (781 | ) | 902 | ||||||||||||
Net amounts of assets and liabilities presented in ourConsolidated Statements of Financial Position (3) | $ | 287 | $ | (93 | ) | $ | 119 | $ | (80 | ) | ||||||||
Schedule of Derivative Instruments [Table Text Block] | In millions | 2014 | 2013 | 2012 | ||||||||||||||
Designated as cash flow or fair value hedges | ||||||||||||||||||
Natural gas contracts – net gain (loss) reclassified from OCI into cost of goods sold | $ | 4 | $ | (1 | ) | $ | (5 | ) | ||||||||||
Natural gas contracts – net gain reclassified from OCI into operation and maintenance expense | 1 | - | - | |||||||||||||||
Interest rate swaps – net loss reclassified from OCI into interest expense | - | (3 | ) | (4 | ) | |||||||||||||
Income tax (expense)/benefit | (2 | ) | 1 | 3 | ||||||||||||||
Total designated as cash flow or fair value hedges, net of tax | $ | 3 | $ | (3 | ) | $ | (6 | ) | ||||||||||
Not designated as hedges (1) | ||||||||||||||||||
Natural gas contracts - net gain (loss) recorded in operating revenues | $ | 149 | $ | (90 | ) | $ | 34 | |||||||||||
Natural gas contracts - net gain (loss) recorded in cost of goods sold (2) | (7 | ) | 2 | (4 | ) | |||||||||||||
Income tax (expense)/benefit | (54 | ) | 34 | (11 | ) | |||||||||||||
Total not designated as hedges, net of tax | $ | 88 | $ | (54 | ) | $ | 19 | |||||||||||
Total gains (losses) on derivative instruments, net of tax | $ | 91 | $ | (57 | ) | $ | 13 |
Note_6_Employee_Benefit_Plans_
Note 6 - Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Net Benefit Costs [Table Text Block] | Pension plans | Welfare plans | |||||||||||||||||||||||
Dollars in millions | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 24 | $ | 29 | $ | 28 | $ | 2 | $ | 3 | $ | 4 | |||||||||||||
Interest cost | 47 | 43 | 44 | 15 | 14 | 16 | |||||||||||||||||||
Expected return on plan assets | (65 | ) | (62 | ) | (64 | ) | (7 | ) | (6 | ) | (5 | ) | |||||||||||||
Net amortization of prior service cost | (2 | ) | (2 | ) | (2 | ) | (3 | ) | (5 | ) | (3 | ) | |||||||||||||
Recognized actuarial loss | 22 | 35 | 34 | 6 | 8 | 9 | |||||||||||||||||||
Net periodic benefit cost | $ | 26 | $ | 43 | $ | 40 | $ | 13 | $ | 14 | $ | 21 | |||||||||||||
Assumptions used to determine benefit costs | |||||||||||||||||||||||||
Discount rate (1) | 5 | % | 4.2 | % | 4.6 | % | 4.7 | % | 4 | % | 4.5 | % | |||||||||||||
Expected return on plan assets (1) | 7.8 | % | 7.8 | % | 8.4 | % | 7.8 | % | 7.8 | % | 8.5 | % | |||||||||||||
Rate of compensation increase (1) | 3.7 | % | 3.7 | % | 3.7 | % | 3.7 | % | 3.8 | % | 3.8 | % | |||||||||||||
Pension band increase (2) | 2 | % | 2 | % | 2 | % | n/a | n/a | n/a | ||||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | Pension plans | Welfare plans | |||||||||||||||||||||||
Dollars in millions | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||
Fair value of plan assets, January 1, | $ | 907 | $ | 837 | $ | 93 | $ | 77 | |||||||||||||||||
Actual return on plan assets | 68 | 134 | 5 | 16 | |||||||||||||||||||||
Employee contributions | - | - | 2 | 3 | |||||||||||||||||||||
Employer contributions | 1 | 1 | 17 | 19 | |||||||||||||||||||||
Benefits paid | (70 | ) | (65 | ) | (19 | ) | (23 | ) | |||||||||||||||||
Medicare Part D reimbursements | - | - | 1 | 1 | |||||||||||||||||||||
Fair value of plan assets, December 31, | $ | 906 | $ | 907 | $ | 99 | $ | 93 | |||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||
Benefit obligation, January 1, | $ | 960 | $ | 1,046 | $ | 326 | $ | 354 | |||||||||||||||||
Service cost | 24 | 29 | 2 | 3 | |||||||||||||||||||||
Interest cost | 47 | 43 | 15 | 14 | |||||||||||||||||||||
Actuarial loss (gain) | 137 | (93 | ) | 8 | (26 | ) | |||||||||||||||||||
Medicare Part D reimbursements | - | - | 1 | 1 | |||||||||||||||||||||
Benefits paid | (70 | ) | (65 | ) | (19 | ) | (23 | ) | |||||||||||||||||
Employee contributions | - | - | 1 | 3 | |||||||||||||||||||||
Benefit obligation, December 31, | $ | 1,098 | $ | 960 | $ | 334 | $ | 326 | |||||||||||||||||
Funded status at end of year | $ | (192 | ) | $ | (53 | ) | $ | (235 | ) | $ | (233 | ) | |||||||||||||
Amounts recognized in the Consolidated Statements of Financial Position consist of | |||||||||||||||||||||||||
Long-term asset (2) | $ | 97 | $ | 117 | $ | - | $ | - | |||||||||||||||||
Current liability | (2 | ) | (2 | ) | - | - | |||||||||||||||||||
Long-term liability | (287 | ) | (168 | ) | (235 | ) | (233 | ) | |||||||||||||||||
Net liability at December 31, | $ | (192 | ) | $ | (53 | ) | $ | (235 | ) | $ | (233 | ) | |||||||||||||
Accumulated benefit obligation (1) | $ | 1,027 | $ | 902 | n/a | n/a | |||||||||||||||||||
Assumptions used to determine benefit obligations | |||||||||||||||||||||||||
Discount rate | 4.2 | % | 5 | % | 4 | % | 4.7 | % | |||||||||||||||||
Rate of compensation increase | 3.7 | % | 3.7 | % | 3.7 | % | 3.7 | % | |||||||||||||||||
Pension band increase (3) | 2 | % | 2 | % | n/a | n/a | |||||||||||||||||||
Schedule of Health Care Cost Trend Rates [Table Text Block] | 2014 | 2013 | |||||||||||||||||||||||
Health care cost trend rate assumed for next year | 8.1 | % | 8.4 | % | |||||||||||||||||||||
Ultimate rate to which the cost trend rate is assumed to decline | 4.5 | % | 4.5 | % | |||||||||||||||||||||
Year that reaches ultimate trend rate | 2030 | 2030 | |||||||||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | In millions | Effect on benefit obligation | |||||||||||||||||||||||
1% Health care cost trend rate increase | $ | 15 | |||||||||||||||||||||||
1% Health care cost trend rate decrease | (13 | ) | |||||||||||||||||||||||
Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block] | Net regulatory assets | Accumulated OCI | Total | ||||||||||||||||||||||
In millions | Pension plans | Welfare plans | Pension plans | Welfare plans | Pension plans | Welfare plans | |||||||||||||||||||
December 31, 2014: | |||||||||||||||||||||||||
Prior service credit | $ | - | $ | (18 | ) | $ | (6 | ) | $ | - | $ | (6 | ) | $ | (18 | ) | |||||||||
Net loss | 76 | 57 | 307 | 36 | 383 | 93 | |||||||||||||||||||
Total | $ | 76 | $ | 39 | $ | 301 | $ | 36 | $ | 377 | $ | 75 | |||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Prior service credit | $ | - | $ | (20 | ) | $ | (9 | ) | $ | - | $ | (9 | ) | $ | (20 | ) | |||||||||
Net loss | 61 | 60 | 210 | 30 | 271 | 90 | |||||||||||||||||||
Total | $ | 61 | $ | 40 | $ | 201 | $ | 30 | $ | 262 | $ | 70 | |||||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] | Net Regulatory Asset | Accumulated OCI | Total | ||||||||||||||||||||||
In millions | Pension plans | Welfare plans | Pension plans | Welfare plans | Pension plans | Welfare plans | |||||||||||||||||||
Amortization of prior service credit | $ | - | $ | (3 | ) | $ | (2 | ) | $ | - | $ | (2 | ) | $ | (3 | ) | |||||||||
Amortization of net loss | 9 | 3 | 20 | 2 | 29 | 5 | |||||||||||||||||||
Schedule of Expected Benefit Payments [Table Text Block] | In millions | Pension plans | Welfare plans | ||||||||||||||||||||||
2015 | $ | 61 | $ | 19 | |||||||||||||||||||||
2016 | 64 | 20 | |||||||||||||||||||||||
2017 | 67 | 20 | |||||||||||||||||||||||
2018 | 70 | 21 | |||||||||||||||||||||||
2019 | 72 | 22 | |||||||||||||||||||||||
2020-2024 | 374 | 115 |
Note_7_Stockbased_Compensation1
Note 7 - Stock-based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | In millions | 2014 | 2013 | 2012 | |||||||||||||
Compensation costs (1) | $ | 24 | $ | 22 | $ | 9 | |||||||||||
Income tax benefits (1) | 1 | 1 | 1 | ||||||||||||||
Excess tax benefits (2) | - | - | 1 | ||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of options | Weighted average exercise price | Weighted average remaining life | Aggregate intrinsic value (in millions) | |||||||||||||
(in years) | |||||||||||||||||
Outstanding - December 31, 2011 | 1,823,154 | $ | 35.61 | ||||||||||||||
Granted | - | - | |||||||||||||||
Exercised | (234,844 | ) | 32.07 | ||||||||||||||
Forfeited | (59,720 | ) | 37.34 | ||||||||||||||
Outstanding - December 31, 2012(1) | 1,528,590 | $ | 36.09 | ||||||||||||||
Granted | - | - | |||||||||||||||
Exercised | (617,358 | ) | 35.37 | ||||||||||||||
Forfeited | (12,500 | ) | 38.36 | ||||||||||||||
Outstanding - December 31, 2013 (1) | 898,732 | $ | 36.55 | 3 | $ | 10 | |||||||||||
Granted | - | - | - | ||||||||||||||
Exercised | (267,182 | ) | 36.84 | 1.7 | |||||||||||||
Forfeited | (4,000 | ) | 39.71 | 2.7 | |||||||||||||
Outstanding - December 31, 2014 (1) (2) | 627,550 | $ | 36.41 | 2.2 | $ | 11 | |||||||||||
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | In millions | Measurement period end date | Fair value accrued at December 31, 2014 | Maximum aggregate payout | |||||||||||||
Granted in 2012 | December 31, 2014 (1) | $ | 8 | $ | 20 | ||||||||||||
Granted in 2013 | 31-Dec-15 | 7 | 21 | ||||||||||||||
Granted in 2014 | 31-Dec-16 | 4 | 24 | ||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Shares of restricted stock | Weighted average remaining vesting period (in years) | Weighted average fair value | ||||||||||||||
Outstanding - December 31, 2011 (1) | 477,354 | $ | 34.4 | ||||||||||||||
Issued | 268,840 | 40.08 | |||||||||||||||
Forfeited | (28,829 | ) | 39.07 | ||||||||||||||
Vested | (214,274 | ) | 36.45 | ||||||||||||||
Outstanding - December 31, 2012 (1) | 503,091 | $ | 39.44 | ||||||||||||||
Issued | 175,935 | 42.41 | |||||||||||||||
Forfeited | (33,352 | ) | 40.64 | ||||||||||||||
Vested | (204,421 | ) | 38.71 | ||||||||||||||
Outstanding - December 31, 2013 (1) | 441,253 | 1.8 | $ | 40.82 | |||||||||||||
Issued | 262,235 | 4.4 | 47.03 | ||||||||||||||
Forfeited | (14,895 | ) | 2.4 | 43.41 | |||||||||||||
Vested | (225,683 | ) | - | 42.31 | |||||||||||||
Outstanding - December 31, 2014 (1) | 462,910 | 1.8 | $ | 43.54 | |||||||||||||
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity [Table Text Block] | 2014 | 2013 | 2012 | ||||||||||||||
Shares purchased on the open market | 100,199 | 97,734 | 103,589 | ||||||||||||||
Average per-share purchase price | $ | 51.6 | $ | 42.96 | $ | 38.96 | |||||||||||
Total purchase price discount | $ | 739,598 | $ | 628,358 | $ | 591,855 |
Note_8_Debt_and_Credit_Facilit1
Note 8 - Debt and Credit Facilities (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Debt [Table Text Block] | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
Dollars in millions | Year(s) due | Weighted average | Outstanding | Weighted average | Outstanding | ||||||||||||||||
interest rate (1) | interest rate (1) | ||||||||||||||||||||
Short-term debt | |||||||||||||||||||||
Commercial paper - AGL Capital (2) | 2015 | 0.3 | % | $ | 590 | 0.4 | % | $ | 857 | ||||||||||||
Commercial paper - Nicor Gas (2) | 2015 | 0.2 | 585 | 0.3 | 314 | ||||||||||||||||
Total short-term debt | 0.3 | % | $ | 1,175 | 0.4 | % | $ | 1,171 | |||||||||||||
Current portion of long-term debt | 2015 | 5 | % | $ | 200 | - | % | $ | - | ||||||||||||
Long-term debt - excluding current portion | |||||||||||||||||||||
Senior notes | 2016-2043 | 5 | % | $ | 2,625 | 5 | % | $ | 2,825 | ||||||||||||
First mortgage bonds | 2016-2038 | 5.6 | 500 | 5.6 | 500 | ||||||||||||||||
Gas facility revenue bonds | 2022-2033 | 0.9 | 200 | 1 | 200 | ||||||||||||||||
Medium-term notes | 2017-2027 | 7.8 | 181 | 7.8 | 181 | ||||||||||||||||
Total principal long-term debt | 4.9 | % | $ | 3,506 | 4.9 | % | $ | 3,706 | |||||||||||||
Fair value adjustment of long-term debt (3) | 2016-2038 | n/a | 80 | n/a | 91 | ||||||||||||||||
Unamortized debt premium, net | n/a | n/a | 16 | n/a | 16 | ||||||||||||||||
Total non-principal long-term debt | n/a | 96 | n/a | 107 | |||||||||||||||||
Total long-term debt | $ | 3,602 | $ | 3,813 | |||||||||||||||||
Total debt | $ | 4,977 | $ | 4,984 | |||||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | Year | Amount | |||||||||||||||||||
(in millions) | |||||||||||||||||||||
2015 | $ | 200 | |||||||||||||||||||
2016 | 545 | ||||||||||||||||||||
2017 | 22 | ||||||||||||||||||||
2018 | 155 | ||||||||||||||||||||
2019 | 350 | ||||||||||||||||||||
Thereafter | 2,434 | ||||||||||||||||||||
Total | $ | 3,706 | |||||||||||||||||||
Schedule of Capitalization [Table Text Block] | AGL Resources | Nicor Gas | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Debt-to-capitalization ratio | 55 | % | 57 | % | 62 | % | 55 | % |
Note_9_Equity_Tables
Note 9 - Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | In millions (1) | Cash flow hedges | Retirement benefit plans | Total | |||||||||
Balance as of December 31, 2011 | $ | (7 | ) | $ | (210 | ) | $ | (217 | ) | ||||
Other comprehensive income (loss) | 4 | (5 | ) | (1 | ) | ||||||||
Balance as of December 31, 2012 | (3 | ) | (215 | ) | (218 | ) | |||||||
Other comprehensive income, before reclassifications | 1 | 66 | 67 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 3 | 12 | 15 | ||||||||||
Balance as of December 31, 2013 | 1 | (137 | ) | (136 | ) | ||||||||
Other comprehensive loss, before reclassifications | (6 | ) | (71 | ) | (77 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | (1 | ) | 8 | 7 | |||||||||
Balance as of December 31, 2014 | $ | (6 | ) | $ | (200 | ) | $ | (206 | ) | ||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | December 31, | ||||||||||||
In millions (1) | 2014 | 2013 | |||||||||||
Cash flow hedges | |||||||||||||
Cost of goods sold (natural gas contracts) | $ | 4 | $ | (1 | ) | ||||||||
Operation and maintenance expense (natural gas contracts) | 1 | - | |||||||||||
Interest expense (interest rate contracts) | - | (3 | ) | ||||||||||
Total before income tax | 5 | (4 | ) | ||||||||||
Income tax (expense)/benefit | (2 | ) | 1 | ||||||||||
Cash flow hedges net of income tax | 3 | (3 | ) | ||||||||||
Less noncontrolling interest | 2 | - | |||||||||||
Total cash flow hedges net of income tax | 1 | (3 | ) | ||||||||||
Retirement benefit plans | |||||||||||||
Operation and maintenance expense (actuarial losses)(2) | (15 | ) | (25 | ) | |||||||||
Operation and maintenance expense (prior service credits) (2) | 2 | 5 | |||||||||||
Total before income tax | (13 | ) | (20 | ) | |||||||||
Income tax benefit | 5 | 8 | |||||||||||
Total retirement benefit plans | (8 | ) | (12 | ) | |||||||||
Total reclassification | $ | (7 | ) | $ | (15 | ) |
Note_10_Nonwholly_Owned_Entiti1
Note 10 - Non-wholly Owned Entities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Table Text Block] | 2014 | 2013 | |||||||||||||||||||||||
In millions | Consolidated | SouthStar (1) | -2% | Consolidated | SouthStar (1) | -2% | |||||||||||||||||||
Current assets | $ | 2,890 | $ | 238 | 8 | % | $ | 2,895 | $ | 264 | 9 | % | |||||||||||||
Goodwill and other intangible assets | 1,952 | 125 | 6 | 1,972 | 133 | 7 | |||||||||||||||||||
Long-term assets and other deferred debits | 10,067 | 17 | - | 9,683 | 13 | - | |||||||||||||||||||
Total assets | $ | 14,909 | $ | 380 | 3 | % | $ | 14,550 | $ | 410 | 3 | % | |||||||||||||
Current liabilities | $ | 3,219 | $ | 71 | 2 | % | $ | 3,118 | $ | 95 | 3 | % | |||||||||||||
Long-term liabilities and other deferred credits | 7,862 | - | - | 7,819 | - | - | |||||||||||||||||||
Total liabilities | 11,081 | 71 | 1 | 10,937 | 95 | 1 | |||||||||||||||||||
Equity | 3,828 | 309 | 8 | 3,613 | 315 | 9 | |||||||||||||||||||
Total liabilities and equity | $ | 14,909 | $ | 380 | 3 | % | $ | 14,550 | $ | 410 | 3 | % | |||||||||||||
Schedule of Variable Interest Entities [Table Text Block] | In millions | 2014 | 2013 | ||||||||||||||||||||||
Operating revenues | $ | 866 | $ | 687 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||
Cost of goods sold | 645 | 491 | |||||||||||||||||||||||
Operation and maintenance | 87 | 72 | |||||||||||||||||||||||
Depreciation and amortization | 11 | 7 | |||||||||||||||||||||||
Taxes other than income taxes | 1 | 1 | |||||||||||||||||||||||
Total operating expenses | 744 | 571 | |||||||||||||||||||||||
Operating income | $ | 122 | $ | 116 | |||||||||||||||||||||
Equity Method Investments [Table Text Block] | In millions | 2014 | 2013 | ||||||||||||||||||||||
Triton | $ | 62 | $ | 70 | |||||||||||||||||||||
Horizon Pipeline | 14 | 15 | |||||||||||||||||||||||
Other (1) | 4 | 1 | |||||||||||||||||||||||
Total | $ | 80 | $ | 86 | |||||||||||||||||||||
Schedule of Other Nonoperating Income, by Component [Table Text Block] | In millions | 2014 | 2013 | 2012 | |||||||||||||||||||||
Triton | $ | 6 | $ | 9 | $ | 11 | |||||||||||||||||||
Horizon Pipeline | 2 | 2 | 2 | ||||||||||||||||||||||
Other | - | (8 | ) | - | |||||||||||||||||||||
Total | $ | 8 | $ | 3 | $ | 13 |
Note_11_Commitments_Guarantees1
Note 11 - Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | 2020 & | ||||||||||||||||||||||||||||
In millions | Total | 2015 | 2016 | 2017 | 2018 | 2019 | thereafter | ||||||||||||||||||||||
Recorded contractual obligations: | |||||||||||||||||||||||||||||
Long-term debt (1) | $ | 3,706 | $ | 200 | $ | 545 | $ | 22 | $ | 155 | $ | 350 | $ | 2,434 | |||||||||||||||
Short-term debt | 1,175 | 1,175 | - | - | - | - | - | ||||||||||||||||||||||
Environmental remediation liabilities (2) | 414 | 87 | 93 | 55 | 47 | 37 | 95 | ||||||||||||||||||||||
Total | $ | 5,295 | $ | 1,462 | $ | 638 | $ | 77 | $ | 202 | $ | 387 | $ | 2,529 | |||||||||||||||
Unrecorded contractual obligations and commitments(3) (8): | |||||||||||||||||||||||||||||
Pipeline charges, storage capacity and gas supply (4) | $ | 4,303 | $ | 805 | $ | 457 | $ | 280 | $ | 234 | $ | 222 | $ | 2,305 | |||||||||||||||
Interest charges (5) | 2,762 | 179 | 171 | 147 | 146 | 141 | 1,978 | ||||||||||||||||||||||
Operating leases (6) | 188 | 33 | 31 | 24 | 17 | 18 | 65 | ||||||||||||||||||||||
Asset management agreements (7) | 32 | 9 | 10 | 7 | 4 | 2 | - | ||||||||||||||||||||||
Standby letters of credit, performance/surety bonds (8) | 50 | 49 | 1 | - | - | - | - | ||||||||||||||||||||||
Other | 8 | 3 | 3 | 1 | 1 | - | - | ||||||||||||||||||||||
Total | $ | 7,343 | $ | 1,078 | $ | 673 | $ | 459 | $ | 402 | $ | 383 | $ | 4,348 |
Note_12_Income_Taxes_Tables
Note 12 - Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | In millions | 2014 | 2013 | 2012 | |||||||||
Current income taxes | |||||||||||||
Federal | $ | 113 | $ | 164 | $ | 8 | |||||||
State | 38 | 35 | 4 | ||||||||||
Deferred income taxes | |||||||||||||
Federal | 184 | (8 | ) | 128 | |||||||||
State | 17 | (11 | ) | 20 | |||||||||
Amortization of investment tax credits | (2 | ) | (3 | ) | (3 | ) | |||||||
Total | $ | 350 | $ | 177 | $ | 157 | |||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | In millions | 2014 | 2013 | 2012 | |||||||||
Computed tax expense at statutory rate | $ | 325 | $ | 165 | $ | 151 | |||||||
State income tax, net of federal income tax benefit | 36 | 20 | 19 | ||||||||||
Tax effect of net income attributable to the noncontrolling interest | (7 | ) | (7 | ) | (6 | ) | |||||||
Amortization of investment tax credits | (2 | ) | (3 | ) | (3 | ) | |||||||
Affordable housing credits | (2 | ) | (2 | ) | (2 | ) | |||||||
Flexible dividend deduction | (2 | ) | (2 | ) | (2 | ) | |||||||
Sale of Compass Energy | - | 6 | - | ||||||||||
Other | 2 | - | - | ||||||||||
Total income tax expense on Consolidated Statements of Income | $ | 350 | $ | 177 | $ | 157 | |||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | As of December 31, | ||||||||||||
In millions | 2014 | 2013 | |||||||||||
Current accumulated deferred income tax liabilities | |||||||||||||
Mark-to-market | $ | 33 | $ | - | |||||||||
Inventory | 26 | 18 | |||||||||||
Total current accumulated deferred income tax liabilities | 59 | 18 | |||||||||||
Current accumulated deferred income tax assets | |||||||||||||
Compensation accruals | 30 | 19 | |||||||||||
Lower of cost or market | 26 | - | |||||||||||
Allowance for doubtful accounts | 12 | 10 | |||||||||||
Mark-to-market | - | 24 | |||||||||||
Other | 21 | 16 | |||||||||||
Total current accumulated deferred income tax assets | 89 | 69 | |||||||||||
Valuation allowances (1) | (6 | ) | (8 | ) | |||||||||
Total current accumulated deferred income tax assets, net of valuation allowance | 83 | 61 | |||||||||||
Net current accumulated deferred income tax asset | $ | 24 | $ | 43 | |||||||||
Long-term accumulated deferred income tax liabilities | |||||||||||||
Property - accelerated depreciation and other property-related items | $ | 1,801 | $ | 1,608 | |||||||||
Investments in partnerships | 16 | 18 | |||||||||||
Acquisition intangibles | 14 | 11 | |||||||||||
Mark-to-market | 12 | - | |||||||||||
Undistributed earnings of foreign subsidiaries | - | 26 | |||||||||||
Other | 85 | 97 | |||||||||||
Total long-term accumulated deferred income tax liabilities | 1,928 | 1,760 | |||||||||||
Long-term accumulated deferred income tax assets | |||||||||||||
Unfunded pension and retiree welfare benefit obligation | 117 | 92 | |||||||||||
Deferred investment tax credits | 6 | 7 | |||||||||||
Mark-to-market | - | 3 | |||||||||||
Other | 95 | 44 | |||||||||||
Total long-term accumulated deferred income tax assets | 218 | 146 | |||||||||||
Valuation allowances (1) | (14 | ) | (14 | ) | |||||||||
Total long-term accumulated deferred income tax assets, net of valuation allowance | 204 | 132 | |||||||||||
Net long-term accumulated deferred income tax liability | $ | 1,724 | $ | 1,628 |
Note_13_Segment_Information_Ta
Note 13 - Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | In millions | Distribution operations | Retail operations | Wholesale services (1) | Midstream operations | Other (2) | Intercompany eliminations | Consolidated | |||||||||||||||||||||
Operating revenues from external parties | $ | 3,802 | $ | 994 | $ | 578 | $ | 88 | $ | 7 | $ | (84 | ) | $ | 5,385 | ||||||||||||||
Intercompany revenues | 199 | - | - | - | - | (199 | ) | - | |||||||||||||||||||||
Total operating revenues | 4,001 | 994 | 578 | 88 | 7 | (283 | ) | 5,385 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Cost of goods sold | 2,223 | 683 | 77 | 57 | - | (275 | ) | 2,765 | |||||||||||||||||||||
Operation and maintenance | 699 | 147 | 75 | 26 | - | (8 | ) | 939 | |||||||||||||||||||||
Depreciation and amortization | 317 | 28 | 1 | 18 | 16 | - | 380 | ||||||||||||||||||||||
Taxes other than income taxes | 189 | 4 | 3 | 6 | 6 | - | 208 | ||||||||||||||||||||||
Total operating expenses | 3,428 | 862 | 156 | 107 | 22 | (283 | ) | 4,292 | |||||||||||||||||||||
Gain (loss) on disposition of assets | - | - | 3 | - | (1 | ) | - | 2 | |||||||||||||||||||||
Operating income (loss) | 573 | 132 | 425 | (19 | ) | (16 | ) | - | 1,095 | ||||||||||||||||||||
Other income (expense) | 8 | - | (3 | ) | 2 | 7 | - | 14 | |||||||||||||||||||||
EBIT | $ | 581 | $ | 132 | $ | 422 | $ | (17 | ) | $ | (9 | ) | $ | - | $ | 1,109 | |||||||||||||
Identifiable and total assets (3) | $ | 12,041 | $ | 670 | $ | 1,402 | $ | 694 | $ | 9,723 | $ | (9,621 | ) | $ | 14,909 | ||||||||||||||
Capital expenditures | $ | 715 | $ | 11 | $ | 2 | $ | 15 | $ | 26 | $ | - | $ | 769 | |||||||||||||||
In millions | Distribution operations | Retail operations | Wholesale services (1) | Midstream operations | Other (2) | Intercompany eliminations | Consolidated | ||||||||||||||||||||||
Operating revenues from external parties | $ | 3,230 | $ | 858 | $ | 60 | $ | 74 | $ | 8 | $ | (21 | ) | $ | 4,209 | ||||||||||||||
Intercompany revenues | 182 | - | - | - | - | (182 | ) | - | |||||||||||||||||||||
Total operating revenues | 3,412 | 858 | 60 | 74 | 8 | (203 | ) | 4,209 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Cost of goods sold | 1,687 | 564 | 21 | 33 | - | (195 | ) | 2,110 | |||||||||||||||||||||
Operation and maintenance | 687 | 132 | 49 | 24 | 3 | (8 | ) | 887 | |||||||||||||||||||||
Depreciation and amortization | 339 | 27 | 1 | 17 | 13 | - | 397 | ||||||||||||||||||||||
Taxes other than income taxes | 167 | 3 | 3 | 5 | 9 | - | 187 | ||||||||||||||||||||||
Total operating expenses | 2,880 | 726 | 74 | 79 | 25 | (203 | ) | 3,581 | |||||||||||||||||||||
Gain on disposition of assets | - | - | 11 | - | - | - | 11 | ||||||||||||||||||||||
Operating income (loss) | 532 | 132 | (3 | ) | (5 | ) | (17 | ) | - | 639 | |||||||||||||||||||
Other income (expense) | 14 | - | - | (5 | ) | 7 | - | 16 | |||||||||||||||||||||
EBIT | $ | 546 | $ | 132 | $ | (3 | ) | $ | (10 | ) | $ | (10 | ) | $ | - | $ | 655 | ||||||||||||
Identifiable and total assets (3) | $ | 11,634 | $ | 685 | $ | 1,163 | $ | 713 | $ | 10,160 | $ | (10,088 | ) | $ | 14,267 | ||||||||||||||
Capital expenditures | $ | 684 | $ | 9 | $ | 2 | $ | 12 | $ | 24 | $ | - | $ | 731 | |||||||||||||||
In millions | Distribution operations | Retail operations | Wholesale services (1) | Midstream operations | Other (2) | Intercompany eliminations | Consolidated | ||||||||||||||||||||||
Operating revenues from external parties | $ | 2,691 | $ | 733 | $ | 88 | $ | 78 | $ | 7 | $ | (35 | ) | $ | 3,562 | ||||||||||||||
Intercompany revenues | 167 | 2 | - | - | - | (169 | ) | - | |||||||||||||||||||||
Total operating revenues | 2,858 | 735 | 88 | 78 | 7 | (204 | ) | 3,562 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Cost of goods sold | 1,221 | 488 | 38 | 32 | - | (196 | ) | 1,583 | |||||||||||||||||||||
Operation and maintenance | 642 | 114 | 48 | 19 | 1 | (8 | ) | 816 | |||||||||||||||||||||
Depreciation and amortization | 347 | 18 | 2 | 14 | 13 | - | 394 | ||||||||||||||||||||||
Nicor merger expenses (4) | - | - | - | - | 20 | - | 20 | ||||||||||||||||||||||
Taxes other than income taxes | 140 | 4 | 4 | 5 | 6 | - | 159 | ||||||||||||||||||||||
Total operating expenses | 2,350 | 624 | 92 | 70 | 40 | (204 | ) | 2,972 | |||||||||||||||||||||
Operating income (loss) | 508 | 111 | (4 | ) | 8 | (33 | ) | - | 590 | ||||||||||||||||||||
Other income | 9 | - | 1 | 2 | 12 | - | 24 | ||||||||||||||||||||||
EBIT | $ | 517 | $ | 111 | $ | (3 | ) | $ | 10 | $ | (21 | ) | $ | - | $ | 614 | |||||||||||||
Identifiable and total assets (3) | $ | 11,256 | $ | 506 | $ | 1,218 | $ | 720 | $ | 9,848 | $ | (9,769 | ) | $ | 13,779 | ||||||||||||||
Capital expenditures | $ | 649 | $ | 8 | $ | 3 | $ | 62 | $ | 53 | $ | - | $ | 775 | |||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | In millions | Third party gross revenues | Intercompany revenues | Total gross revenues | Less gross gas costs | Operating revenues | |||||||||||||||||||||||
2014 | $ | 10,709 | $ | 718 | $ | 11,427 | $ | 10,849 | $ | 578 | |||||||||||||||||||
2013 | 7,681 | 417 | 8,098 | 8,038 | 60 | ||||||||||||||||||||||||
2012 | 6,089 | 350 | 6,439 | 6,351 | 88 |
Note_14_Discontinued_Operation1
Note 14 - Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Balance Sheet [Member] | |||||||||||||
Note 14 - Discontinued Operations (Tables) [Line Items] | |||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | December 31, | ||||||||||||
In millions | 2013 | ||||||||||||
Current assets | |||||||||||||
Cash and cash equivalents | $ | 24 | |||||||||||
Short-term investments | 1 | ||||||||||||
Receivables | 36 | ||||||||||||
Inventories | 9 | ||||||||||||
Other | 1 | ||||||||||||
Total current assets | 71 | ||||||||||||
Long-term assets and other deferred debits | |||||||||||||
Property, plant and equipment, net | 124 | ||||||||||||
Goodwill | 61 | ||||||||||||
Intangible assets | 19 | ||||||||||||
Other | 8 | ||||||||||||
Total long-term assets and other deferred debits | 212 | ||||||||||||
Total assets held for sale | $ | 283 | |||||||||||
Current liabilities | |||||||||||||
Accrued expenses | $ | 7 | |||||||||||
Other accounts payable - trade | 11 | ||||||||||||
Other | 22 | ||||||||||||
Total liabilities held for sale | $ | 40 | |||||||||||
Income Statement [Member] | |||||||||||||
Note 14 - Discontinued Operations (Tables) [Line Items] | |||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | In millions | 2014 | 2013 | 2012 | |||||||||
Operating revenues | $ | 243 | $ | 365 | $ | 342 | |||||||
Operating expenses | |||||||||||||
Cost of goods sold | 149 | 222 | 208 | ||||||||||
Operation and maintenance (1) | 75 | 110 | 106 | ||||||||||
Depreciation and amortization (2) | 5 | 19 | 22 | ||||||||||
Taxes other than income taxes | 5 | 6 | 6 | ||||||||||
Loss on sale and goodwill impairment (3) | 28 | - | - | ||||||||||
Total operating expenses | 262 | 357 | 342 | ||||||||||
Operating (loss) income | (19 | ) | 8 | - | |||||||||
(Loss) income before income taxes | (19 | ) | 8 | - | |||||||||
Income tax expense (4) | (61 | ) | 3 | (1 | ) | ||||||||
(Loss) income from discontinued operations, net of tax | $ | (80 | ) | $ | 5 | $ | 1 |
Note_15_Selected_Quarterly_Fin1
Note 15 - Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | In millions, except per share amounts | 31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||
2014 | |||||||||||||||||
Operating revenues | $ | 2,462 | $ | 889 | $ | 589 | $ | 1,445 | |||||||||
Operating income | 592 | 139 | 78 | 286 | |||||||||||||
EBIT | 595 | 141 | 81 | 292 | |||||||||||||
Income from continuing operations | 346 | 59 | 23 | 152 | |||||||||||||
Income from continuing operations attributable to AGL Resources Inc. | 334 | 57 | 23 | 148 | |||||||||||||
(Loss) income from discontinued operations, net of tax | (50 | ) | 1 | (31 | ) | - | |||||||||||
Net income (loss) attributable to AGL Resources Inc. | 284 | 58 | (8 | ) | 148 | ||||||||||||
Basic earnings (loss) per common share: | |||||||||||||||||
Continuing operations | 2.82 | 0.48 | 0.19 | 1.24 | |||||||||||||
Discontinued operations | (0.43 | ) | 0.01 | (0.25 | ) | - | |||||||||||
Diluted earnings (loss) per common share: | |||||||||||||||||
Continuing operations | 2.81 | 0.48 | 0.19 | 1.24 | |||||||||||||
Discontinued operations | (0.43 | ) | 0.01 | (0.25 | ) | - | |||||||||||
2013 | |||||||||||||||||
Operating revenues | $ | 1,612 | $ | 805 | $ | 574 | $ | 1,218 | |||||||||
Operating income | 290 | 113 | 70 | 166 | |||||||||||||
EBIT | 295 | 119 | 77 | 164 | |||||||||||||
Income from continuing operations | 159 | 45 | 24 | 80 | |||||||||||||
Income from continuing operations attributable to AGL Resources Inc. | 149 | 44 | 24 | 73 | |||||||||||||
Income (loss) from discontinued operations, net of tax | 1 | (1 | ) | 1 | 4 | ||||||||||||
Net income attributable to AGL Resources Inc. | 150 | 43 | 25 | 77 | |||||||||||||
Basic earnings (loss) per common share: | |||||||||||||||||
Continuing operations | 1.27 | 0.38 | 0.2 | 0.61 | |||||||||||||
Discontinued operations | 0.01 | (0.01 | ) | 0.01 | 0.03 | ||||||||||||
Diluted earnings (loss) per common share: | |||||||||||||||||
Continuing operations | 1.26 | 0.38 | 0.2 | 0.61 | |||||||||||||
Discontinued operations | 0.01 | (0.01 | ) | 0.01 | 0.03 |
Note_2_Significant_Accounting_2
Note 2 - Significant Accounting Policies and Methods of Application (Details) (USD $) | 12 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 16 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Apr. 11, 2014 | Jan. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | ||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Inventory, Net | $716,000,000 | $658,000,000 | $658,000,000 | $716,000,000 | |||||||||
Reduction in Depreciation Expense | 51,000,000 | 19,000,000 | |||||||||||
Regulatory Liability, Noncurrent | 1,601,000,000 | 1,518,000,000 | 1,518,000,000 | 1,601,000,000 | |||||||||
Percent Goodwill Exceeds Carrying Value | 5.00% | 5.00% | |||||||||||
Goodwill | 1,827,000,000 | 1,827,000,000 | 1,827,000,000 | 1,827,000,000 | |||||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 0 | 0 | |||||||||||
Impairment of Long-Lived Assets Held-for-use | 0 | ||||||||||||
Amortization of Intangible Assets | 20,000,000 | 18,000,000 | 13,000,000 | ||||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | -61,000,000 | [1] | 3,000,000 | [1] | -1,000,000 | [1] | |||||||
Excise Taxes Collected | 133,000,000 | 112,000,000 | 86,000,000 | ||||||||||
Proceeds from Sales of Business, Affiliate and Productive Assets | 230,000,000 | 12,000,000 | |||||||||||
Gain (Loss) on Disposition of Business | 2,000,000 | 11,000,000 | |||||||||||
Included in Operating Expenses [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Excise Taxes Collected | 130,000,000 | 110,000,000 | 85,000,000 | ||||||||||
Wells and Related Equipment and Facilities [Member] | Asset Retirement Obligation Costs [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Regulatory Liability, Noncurrent | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | |||||||||
Employee Stock Option [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in Shares) | 0 | ||||||||||||
Annual Lease Receivable [Member] | Dalton Pipeline Arrangement 1 [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Operating Leases, Future Minimum Payments Receivable | 26,000,000 | ||||||||||||
Net of Tax [Member] | Sawgrass Storage [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Equity Method Investment, Other than Temporary Impairment | 5,000,000 | ||||||||||||
Net of Tax [Member] | Compass Energy [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Gain (Loss) on Disposition of Business | 5,000,000 | ||||||||||||
Wholesale Services [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Number of Top Counterparties | 20 | ||||||||||||
Concentration Risk, Percentage | 55.00% | ||||||||||||
Accounts Receivable, Net | 367,000,000 | 367,000,000 | |||||||||||
Midstream Operations [Member] | Goodwill [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Fair Value Inputs, Long-term Revenue Growth Rate | 2.50% | ||||||||||||
Fair Value Inputs, Discount Rate | 7.00% | ||||||||||||
Midstream Operations [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Percent Goodwill Exceeds Carrying Value | 5.00% | 5.00% | |||||||||||
Goodwill | 14,000,000 | 14,000,000 | 14,000,000 | 14,000,000 | |||||||||
Dalton Pipeline Arrangement 1 [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | ||||||||||||
Natural Gas Pipeline Length (in Miles) | 106 | ||||||||||||
Undivided Ownership Interest to be Leased | 50.00% | ||||||||||||
Lessor Leasing Arrangements, Operating Leases, Term of Contract | 25 years | ||||||||||||
Customer Relationships [Member] | NiSource Inc. [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Finite-lived Intangible Assets Acquired | 46,000,000 | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 14 years | ||||||||||||
Customer Relationships [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Finite-Lived Intangible Asset, Useful Life | 13 years | 15 years | |||||||||||
Customer Relationships Acquired | 33,000 | ||||||||||||
Payments to Acquire Intangible Assets | 32,000,000 | ||||||||||||
Trade Names [Member] | NiSource Inc. [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Finite-lived Intangible Assets Acquired | 16,000,000 | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||||||||||
Trade Names [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Finite-Lived Intangible Asset, Useful Life | 13 years | ||||||||||||
Minimum [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Percent Goodwill Exceeds Carrying Value | 30.00% | 30.00% | |||||||||||
Maximum [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Percent Goodwill Exceeds Carrying Value | 600.00% | 600.00% | |||||||||||
Inaccessible [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Inventory, Gross | 17,000,000 | 17,000,000 | |||||||||||
Sawgrass Storage [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Equity Method Investment, Other than Temporary Impairment | 8,000,000 | 8,000,000 | |||||||||||
NiSource Inc. [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Goodwill | 51,000,000 | 51,000,000 | |||||||||||
Service Plans Acquired | 500,000 | ||||||||||||
Payments to Acquire Businesses, Gross | 122,000,000 | ||||||||||||
Integrity Tests Performed at Storage Facilities [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Inventory Write-down | 10,000,000 | ||||||||||||
Tropical Shipping [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | 60,000,000 | 29,000,000 | 31,000,000 | ||||||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 86,000,000 | ||||||||||||
Compass Energy [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Proceeds from Sales of Business, Affiliate and Productive Assets | 12,000,000 | ||||||||||||
Gain (Loss) on Disposition of Business | 11,000,000 | ||||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 8,000,000 | 8,000,000 | |||||||||||
Business Combination, Contingent Consideration, Asset | 3,000,000 | 4,000,000 | 3,000,000 | ||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | 5,000,000 | 5,000,000 | |||||||||||
Business Combination Contingent Consideration Arrangements Earn Out Period | 5 years | ||||||||||||
Former Gain Contingency, Recognized in Current Period | 3,000,000 | ||||||||||||
Tropical Shipping [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Investments and Cash | 24,000,000 | 24,000,000 | |||||||||||
Atlanta Gas Light [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
Concentration Risk, Number of Customers | 12 | 12 | |||||||||||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 2.30% | [2] | 2.60% | [2] | 2.60% | [2] | |||||||
Nicor Gas [Member] | |||||||||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) [Line Items] | |||||||||||||
LIFO Inventory Amount | 141,000,000 | 141,000,000 | |||||||||||
Inventory, Net | 346,000,000 | 346,000,000 | |||||||||||
Excess of Replacement or Current Costs over Stated LIFO Value | 205,000,000 | 205,000,000 | |||||||||||
LIFO Inventory Liquidation, Volume (in Cubic Feet) | 6,800,000,000 | ||||||||||||
LIFO Inventory Liquidation, Average Cost Per Million Cubic Feet (in Dollars per Item) | 3.98 | ||||||||||||
Average Inventory Purchase Cost Above LIFO Liquidation Rate (in Dollars per Item) | 1.33 | ||||||||||||
Effect of LIFO Inventory Liquidation on Income | $9,000,000 | ||||||||||||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 3.10% | [3],[4] | 3.10% | [3],[4] | 4.10% | [3],[4] | 3.07% | ||||||
[1] | Includes $60 million that was recorded in 2014 related to the cumulative foreign earnings for which no tax liabilities had been previously recorded. | ||||||||||||
[2] | Average composite straight-line depreciation rates for depreciable property, excluding transportation equipment, which may be depreciated in excess of useful life and recovered in rates. | ||||||||||||
[3] | Composite straight-line depreciation rates. | ||||||||||||
[4] | In October 2013, the Illinois Commission approved a composite depreciation rate of 3.07%. The depreciation rate was effective as of August 30, 2013, the date the depreciation study was filed, and had the effect of reducing our 2014 and 2013 depreciation expense by $51 million and $19 million, respectively. |
Note_2_Significant_Accounting_3
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost of Goods Sold Adjustments (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
In Millions, unless otherwise specified | ||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost of Goods Sold Adjustments [Line Items] | ||||||
LOCOM adjustments | $77 | $9 | $23 | |||
Retail Operations [Member] | ||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost of Goods Sold Adjustments [Line Items] | ||||||
LOCOM adjustments | 4 | 1 | 3 | |||
Wholesale Services [Member] | ||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost of Goods Sold Adjustments [Line Items] | ||||||
LOCOM adjustments | 73 | [1] | 8 | [1] | 19 | [1] |
Midstream Operations [Member] | ||||||
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Cost of Goods Sold Adjustments [Line Items] | ||||||
LOCOM adjustments | $1 | |||||
[1] | The significant in 2014 was due to a significant decline in natural gas prices in December 2014. |
Note_2_Significant_Accounting_4
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Property, Plant and Equipment (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $11,552 | $10,938 |
Total PP&E, gross | 11,552 | 10,938 |
Less accumulated depreciation | 2,462 | 2,295 |
Total PP&E, net | 9,090 | 8,643 |
Gas, Transmission and Distribution Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 9,105 | 8,371 |
Total PP&E, gross | 9,105 | 8,371 |
Wells and Related Equipment and Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,202 | 1,170 |
Total PP&E, gross | 1,202 | 1,170 |
Property, Plant and Equipment, Other Types [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 919 | 854 |
Total PP&E, gross | 919 | 854 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 326 | 543 |
Total PP&E, gross | $326 | $543 |
Note_2_Significant_Accounting_5
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Depreciation Expense | 12 Months Ended | 16 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | ||||
Atlanta Gas Light [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Depreciation Rate | 2.30% | [1] | 2.60% | [1] | 2.60% | [1] | |
Chattanooga Gas [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Depreciation Rate | 2.50% | [1] | 2.50% | [1] | 2.50% | [1] | |
Elizabethtown Gas [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Depreciation Rate | 2.50% | [2] | 2.40% | [2] | 2.40% | [2] | |
Elkton Gas [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Depreciation Rate | 2.80% | [2] | 2.40% | [2] | 2.40% | [2] | |
Florida City Gas [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Depreciation Rate | 3.90% | [2] | 3.80% | [2] | 3.90% | [2] | |
Nicor Gas [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Depreciation Rate | 3.10% | [2],[3] | 3.10% | [2],[3] | 4.10% | [2],[3] | 3.07% |
Virginia Natural Gas [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Depreciation Rate | 2.50% | [1] | 2.50% | [1] | 2.50% | [1] | |
[1] | Average composite straight-line depreciation rates for depreciable property, excluding transportation equipment, which may be depreciated in excess of useful life and recovered in rates. | ||||||
[2] | Composite straight-line depreciation rates. | ||||||
[3] | In October 2013, the Illinois Commission approved a composite depreciation rate of 3.07%. The depreciation rate was effective as of August 30, 2013, the date the depreciation study was filed, and had the effect of reducing our 2014 and 2013 depreciation expense by $51 million and $19 million, respectively. |
Note_2_Significant_Accounting_6
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Estimated Useful Lives of Assets | 12 Months Ended |
Dec. 31, 2014 | |
Gas, Transmission and Distribution Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciable Property, Estimated Useful Life | 5 years |
Gas, Transmission and Distribution Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciable Property, Estimated Useful Life | 10 years |
Wells and Related Equipment and Facilities [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciable Property, Estimated Useful Life | 40 years |
Wells and Related Equipment and Facilities [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciable Property, Estimated Useful Life | 60 years |
Property, Plant and Equipment, Other Types [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciable Property, Estimated Useful Life | 40 years |
Note_2_Significant_Accounting_7
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Authorized AFUDC Rates (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Property, Plant and Equipment [Line Items] | ||||||
AFUDC (in millions) (2) (in Dollars) | $7 | [1] | $18 | [1] | $8 | [1] |
Atlanta Gas Light [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Authorized AFUDC Rates | 8.10% | 8.10% | 8.10% | |||
Nicor Gas [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Authorized AFUDC Rates | 0.24% | [2] | 0.31% | [2] | 0.36% | [2] |
Chattanooga Gas [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Authorized AFUDC Rates | 7.41% | 7.41% | 7.41% | |||
Elizabethtown Gas [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Authorized AFUDC Rates | 0.44% | [2] | 0.41% | [2] | 0.51% | [2] |
[1] | Amount recorded in the Consolidated Statements of Income. | |||||
[2] | Variable rate is determined by FERC method of AFUDC accounting. |
Note_2_Significant_Accounting_8
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Changes in Amount of Goodwill (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill [Line Items] | ||
Goodwill - December 31, 2014 and 2013 | $1,827 | $1,827 |
Distribution Operations [Member] | ||
Goodwill [Line Items] | ||
Goodwill - December 31, 2014 and 2013 | 1,640 | 1,640 |
Retail Operations [Member] | ||
Goodwill [Line Items] | ||
Goodwill - December 31, 2014 and 2013 | 173 | 173 |
Midstream Operations [Member] | ||
Goodwill [Line Items] | ||
Goodwill - December 31, 2014 and 2013 | $14 | $14 |
Note_2_Significant_Accounting_9
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Intangible Assets (USD $) | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross | $175 | $175 | |
Accumulated amortization | -50 | -30 | |
Net | 125 | 145 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average amortization period | 15 years | 13 years | |
Gross | 130 | 130 | |
Accumulated amortization | -42 | -25 | |
Net | 88 | 105 | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average amortization period | 13 years | ||
Gross | 45 | 45 | |
Accumulated amortization | -8 | -5 | |
Net | $37 | $40 |
Recovered_Sheet1
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Expected Amortization Expense (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Expected Amortization Expense [Abstract] | |
2015 | $17 |
2016 | 15 |
2017 | 14 |
2018 | 13 |
2019 | $11 |
Recovered_Sheet2
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Other Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Component of Operating Income [Abstract] | |||
Equity investment income | $8 | $3 | $13 |
AFUDC - equity | 5 | 12 | 6 |
Other, net | 1 | 1 | 5 |
Total other income | $14 | $16 | $24 |
Recovered_Sheet3
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Potentially Dilutive Common Share Calculation (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Potentially Dilutive Common Share Calculation [Abstract] | ||||||||||||||
Income from continuing operations attributable to AGL Resources Inc. (in Dollars) | $148 | $23 | $57 | $334 | $73 | $24 | $44 | $149 | $562 | $290 | $259 | |||
(Loss) income from discontinued operations, net of tax (in Dollars) | -80 | 5 | 1 | |||||||||||
Net income attributable to AGL Resources Inc. (in Dollars) | $148 | ($8) | $58 | $284 | $77 | $25 | $43 | $150 | $482 | $295 | $260 | |||
Basic weighted average number of common shares outstanding (1) (in Shares) | 118.8 | [1] | 117.9 | [1] | 117 | [1] | ||||||||
Effect of dilutive securities (in Shares) | 0.4 | 0.4 | 0.5 | |||||||||||
Diluted weighted average number of common shares outstanding (2) (in Shares) | 119.2 | [2] | 118.3 | [2] | 117.5 | [2] | ||||||||
Continuing operations | $1.24 | $0.19 | $0.48 | $2.82 | $0.61 | $0.20 | $0.38 | $1.27 | $4.73 | $2.46 | $2.21 | |||
Discontinued operations | ($0.25) | $0.01 | ($0.43) | $0.03 | $0.01 | ($0.01) | $0.01 | ($0.67) | $0.04 | $0.01 | ||||
Basic earnings per common share attributable to AGL Resources Inc. common shareholders | $4.06 | $2.50 | $2.22 | |||||||||||
Continuing operations | $1.24 | $0.19 | $0.48 | $2.81 | $0.61 | $0.20 | $0.38 | $1.26 | $4.71 | [2] | $2.45 | [2] | $2.20 | [2] |
Discontinued operations | ($0.25) | $0.01 | ($0.43) | $0.03 | $0.01 | ($0.01) | $0.01 | ($0.67) | [2] | $0.04 | [2] | $0.01 | [2] | |
Diluted earnings per common share attributable to AGL Resources Inc. common shareholders | $4.04 | $2.49 | $2.21 | |||||||||||
[1] | Daily weighted average shares outstanding. | |||||||||||||
[2] | There were no outstanding stock options excluded from the computation of diluted earnings per common share attributable to AGL Resources Inc. for any of the periods presented because their effect would have been anti-dilutive, as the exercise prices were greater than the average market price. |
Recovered_Sheet4
Note 2 - Significant Accounting Policies and Methods of Application (Details) - Purchase Price Allocation (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Business Acquisition [Line Items] | ||
Goodwill | $1,827 | $1,827 |
NiSource Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Current assets | 3 | |
PP&E | 12 | |
Goodwill | 51 | |
Intangible assets | 62 | |
Current liabilities | -6 | |
Total purchase price | $122 |
Note_3_Regulated_Operations_De
Note 3 - Regulated Operations (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Jul. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2013 | Dec. 31, 2012 | 31-May-14 | 31-May-11 |
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Regulatory Assets, Current | $83 | $114 | ||||||
Increase (Decrease) in Other Regulatory Assets | 67 | -2 | -37 | |||||
Number of Former Operating Sites | 46 | |||||||
Other Increase (Decrease) in Environmental Liabilities | -33 | |||||||
Increase (Decrease) in Insurance Settlements Receivable | 77 | |||||||
Insurance Settlements Receivable, Number of Installments | 2 | |||||||
Proceeds from Insurance Settlement, Operating Activities | 45 | |||||||
Insurance Settlements Receivable, Current | 32 | |||||||
i-SRP Projects [Member] | STRIDE [Member] | Atlanta Gas Light [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Approved Infrastructure Replacement Program | 214 | |||||||
i-CGP Projects [Member] | STRIDE [Member] | Atlanta Gas Light [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Approved Infrastructure Replacement Program | 46 | |||||||
Regulatory Income Tax Liability [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Regulatory Noncurrent Liability, Amortization Period | 30 years | |||||||
January 2015 [Member] | STRIDE [Member] | Atlanta Gas Light [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Infrastructure Replacement Program Monthly Rider (in Dollars per Item) | 0.48 | |||||||
January 2015 [Member] | Integrated Vintage Plastic Replacement Program [Member] | Atlanta Gas Light [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Infrastructure Replacement Program Monthly Rider (in Dollars per Item) | 0.96 | |||||||
January 2016 [Member] | STRIDE [Member] | Atlanta Gas Light [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Infrastructure Replacement Program Monthly Rider (in Dollars per Item) | 0.96 | |||||||
January 2016 [Member] | Integrated Vintage Plastic Replacement Program [Member] | Atlanta Gas Light [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Infrastructure Replacement Program Monthly Rider (in Dollars per Item) | 1.45 | |||||||
January 2017 [Member] | STRIDE [Member] | Atlanta Gas Light [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Infrastructure Replacement Program Monthly Rider (in Dollars per Item) | 1.43 | |||||||
Through December 2014 [Member] | Integrated Vintage Plastic Replacement Program [Member] | Atlanta Gas Light [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Infrastructure Replacement Program Monthly Rider (in Dollars per Item) | 0.48 | |||||||
Maximum Per Year [Member] | SAVE Program[Member] | Virginia Natural Gas [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Approved Infrastructure Replacement Program | 25 | 25 | ||||||
STRIDE [Member] | Atlanta Gas Light [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Program Duration Period | 4 years | |||||||
Approved Infrastructure Replacement Program | 260 | |||||||
Integrated Vintage Plastic Replacement Program [Member] | Atlanta Gas Light [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Program Duration Period | 4 years | |||||||
Approved Infrastructure Replacement Program | 275 | |||||||
Natural Gas Pipeline Length (in Miles) | 756 | |||||||
Enhanced Infrastructure Program [Member] | Elizabethtown Gas [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Approved Infrastructure Replacement Program | 115 | 40 | ||||||
Fair Value Inputs, Discount Rate | 6.65% | |||||||
Accelerated Infrastructure Replacement Program [Member] | Elizabethtown Gas [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Program Duration Period | 4 years | |||||||
Natural Gas Distribution Utility Reinforcement Effort [Member] | Elizabethtown Gas [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Filed Infrastructure Replacement Program | 15 | |||||||
SAVE Program[Member] | Maximum [Member] | Virginia Natural Gas [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Approved Infrastructure Replacement Program | 105 | 105 | ||||||
SAVE Program[Member] | Virginia Natural Gas [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Program Duration Period | 5 years | |||||||
Energy Smart Plan [Member] | Nicor Gas [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Program Duration Period | 3 years | |||||||
Approved Infrastructure Replacement Program | 93 | |||||||
Maximum [Member] | Recoverable Pension and Other Retirement Benefit Costs [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Costs Recovery Period | 21 years | |||||||
Minimum [Member] | Recoverable Pension and Other Retirement Benefit Costs [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Costs Recovery Period | 2 years | |||||||
Recoverable Pension and Other Retirement Benefit Costs [Member] | Nicor Gas [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Costs Recovery Period | 10 years | |||||||
Recoverable Pension and Other Retirement Benefit Costs [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Regulatory Assets, Current | 12 | 9 | ||||||
Recoverable ERC Assets [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Regulatory Assets, Current | 49 | |||||||
Increase (Decrease) in Other Regulatory Assets | 51 | 24 | 13 | |||||
Regulatory Asset Off Balance Sheet [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Fair Value Inputs, Discount Rate | 4.27% | |||||||
Seasonal Rates [Member] | Atlanta Gas Light [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Costs Recovery Period | 1 year | |||||||
Seasonal Rates [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Regulatory Assets, Current | $10 | $10 | ||||||
Nicor Gas [Member] | ||||||||
Note 3 - Regulated Operations (Details) [Line Items] | ||||||||
Number of Former Operating Sites | 26 | |||||||
Number of Sites with Completed Cleanups | 2 | |||||||
Number of Sites with Cleanup Responsibility | 23 | |||||||
Cleanup Costs Allocated Percentage | 52.00% | |||||||
Infrastructure Investment, Annual Customer Rate Increase, Maximum, Percentage | 4.00% |
Note_3_Regulated_Operations_De1
Note 3 - Regulated Operations (Details) - Summary of Regulatory Assets and Liabilities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Regulatory assets | ||
Regulatory assets - current | $83 | $114 |
Regulatory assets - long-term | 631 | 705 |
Total regulatory assets | 714 | 819 |
Regulatory liabilities | ||
Regulatory liabilities - current | 112 | 183 |
Regulatory liabilities - long-term | 1,601 | 1,518 |
Total regulatory liabilities | 1,713 | 1,701 |
Bad debt rider [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - current | 33 | 41 |
Regulatory liabilities - long-term | 12 | 17 |
Accrued natural gas costs [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - current | 27 | 92 |
Accumulated removal costs [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - current | 25 | 27 |
Regulatory liabilities - long-term | 1,520 | 1,445 |
Other Regulatory Liabilities [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - current | 27 | 23 |
Regulatory liabilities - long-term | 13 | 3 |
Regulatory Income Tax Liability [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - long-term | 34 | 27 |
Unamortized investment tax credit [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - long-term | 22 | 26 |
Recoverable Environmental Remediation Costs [Member] | ||
Regulatory assets | ||
Regulatory assets - current | 49 | 45 |
Regulatory assets - long-term | 326 | 433 |
Recoverable Pension and Other Retirement Benefit Costs [Member] | ||
Regulatory assets | ||
Regulatory assets - current | 12 | 9 |
Regulatory assets - long-term | 110 | 99 |
Seasonal Rates [Member] | ||
Regulatory assets | ||
Regulatory assets - current | 10 | 10 |
Deferred Natural Gas Costs [Member] | ||
Regulatory assets | ||
Regulatory assets - current | 3 | 1 |
Other Regulatory Assets [Member] | ||
Regulatory assets | ||
Regulatory assets - current | 9 | 49 |
Regulatory assets - long-term | 52 | 36 |
Long-term Debt Fair Value Adjustment [Member] | ||
Regulatory assets | ||
Regulatory assets - long-term | 74 | 82 |
Recoverable Regulatory Infrastructure Program Costs [Member] | ||
Regulatory assets | ||
Regulatory assets - long-term | $69 | $55 |
Note_3_Regulated_Operations_De2
Note 3 - Regulated Operations (Details) - Estimated Recognition of Rate Making Assets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Regulatory Assets [Line Items] | ||
Regulatory Asset | $714 | $819 |
Regulatory Asset Off Balance Sheet [Member] | Atlanta Gas Light [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Asset | 113 | 80 |
Regulatory Asset Off Balance Sheet [Member] | Virginia Natural Gas [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Asset | 12 | 12 |
Regulatory Asset Off Balance Sheet [Member] | Elizabethtown Gas [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Asset | 2 | 1 |
Regulatory Asset Off Balance Sheet [Member] | ||
Regulatory Assets [Line Items] | ||
Regulatory Asset | $127 | $93 |
Note_3_Regulated_Operations_De3
Note 3 - Regulated Operations (Details) - Costs Related to Remediation of Former Operating Sites (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | |
Environmental Exit Cost [Line Items] | ||
# of sites | 46 | |
Probabilistic model cost estimates, low estimate | $350 | |
Probabilistic model cost estimates, high estimate | 720 | |
Engineering estimates | 69 | [1] |
Amount recorded | 87 | |
Expected costs over next 12 months | 414 | [2] |
Illinois Environmental [Member] | ||
Environmental Exit Cost [Line Items] | ||
# of sites | 26 | [3] |
Probabilistic model cost estimates, low estimate | 205 | |
Probabilistic model cost estimates, high estimate | 462 | |
Engineering estimates | 30 | [1],[3] |
Amount recorded | 41 | [3] |
Expected costs over next 12 months | 230 | [3] |
New Jersey Environmental [Member] | ||
Environmental Exit Cost [Line Items] | ||
# of sites | 6 | |
Probabilistic model cost estimates, low estimate | 105 | |
Probabilistic model cost estimates, high estimate | 177 | |
Engineering estimates | 14 | [1] |
Amount recorded | 16 | |
Expected costs over next 12 months | 118 | |
Cost recovery period | 7 years | |
Georgia And Florida [Member] | ||
Environmental Exit Cost [Line Items] | ||
# of sites | 13 | |
Probabilistic model cost estimates, low estimate | 40 | |
Probabilistic model cost estimates, high estimate | 81 | |
Engineering estimates | 15 | [1] |
Amount recorded | 21 | |
Expected costs over next 12 months | 56 | |
Cost recovery period | 5 years | |
North Carolina Environmental [Member] | ||
Environmental Exit Cost [Line Items] | ||
# of sites | 1 | [4] |
Probabilistic model cost estimates, low estimate | ||
Probabilistic model cost estimates, high estimate | ||
Engineering estimates | 10 | [1],[4] |
Amount recorded | 9 | [4] |
Expected costs over next 12 months | $10 | [4] |
Cost recovery period | 0 years | |
[1] | The year-end ERC cost estimates were completed as of November 30, 2014. The liability recorded reflects a reduction of these cost estimates for expenses incurred during December. | |
[2] | Decrease of $33 million from December 31, 2013 primarily relates to lower engineering cost estimates for work completed during 2014, partially offset by a scope increase required by the Georgia Environmental Protection Division for a site in Georgia and increases at three Illinois sites due to refinement of the assumptions used in the cost method. | |
[3] | Nicor Gas is responsible in whole or in part for 26 MGP sites, of which two sites have been remediated and their use is no longer restricted by the environmental condition of the property . Nicor Gas and Commonwealth Edison Company are parties to an agreement to cooperate in cleaning up residue at 23 of the sites listed. Nicor Gas' allocated share of cleanup costs for these sites is 52%. | |
[4] | We have no regulatory recovery mechanism for the site in North Carolina. Therefore, there is no amount included within our regulatory assets and changes in estimated costs are recognized in income in the period of change. |
Note_3_Regulated_Operations_De4
Note 3 - Regulated Operations (Details) - Bad Debt Rider (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation Allowance for Impairment of Recognized Servicing Assets [Line Items] | |||
Benchmark | $63 | $63 | $63 |
Actual Bad Debt | 35 | 21 | 23 |
Total Refund | 28 | 42 | 40 |
Amount to be Refunded in 2015 | 16 | 17 | |
Amount to be Refunded in 2016 | 12 | ||
Refunded in 2013 [Member] | |||
Valuation Allowance for Impairment of Recognized Servicing Assets [Line Items] | |||
Amount Refunded | 24 | ||
Refunded in 2014 [Member] | |||
Valuation Allowance for Impairment of Recognized Servicing Assets [Line Items] | |||
Amount Refunded | $25 | $16 |
Note_4_Fair_Value_Measurements2
Note 4 - Fair Value Measurements (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Note 4 - Fair Value Measurements (Details) [Line Items] | ||
Other Postretirement Benefits Payable (in Dollars) | 9 | 9 |
Weather Derivative Premium (in Dollars) | 3 | 3 |
Equity Securities [Member] | Minimum [Member] | ||
Note 4 - Fair Value Measurements (Details) [Line Items] | ||
Defined Benefit Plan, Target Plan Asset Allocations | 70.00% | 70.00% |
Equity Securities [Member] | Maximum [Member] | ||
Note 4 - Fair Value Measurements (Details) [Line Items] | ||
Defined Benefit Plan, Target Plan Asset Allocations | 95.00% | 95.00% |
Equity Securities [Member] | ||
Note 4 - Fair Value Measurements (Details) [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 71.00% | 74.00% |
Fixed Income Securities [Member] | Minimum [Member] | ||
Note 4 - Fair Value Measurements (Details) [Line Items] | ||
Defined Benefit Plan, Target Plan Asset Allocations | 5.00% | 5.00% |
Fixed Income Securities [Member] | Maximum [Member] | ||
Note 4 - Fair Value Measurements (Details) [Line Items] | ||
Defined Benefit Plan, Target Plan Asset Allocations | 20.00% | 20.00% |
Fixed Income Securities [Member] | ||
Note 4 - Fair Value Measurements (Details) [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 29.00% | 26.00% |
Cash [Member] | Maximum [Member] | ||
Note 4 - Fair Value Measurements (Details) [Line Items] | ||
Defined Benefit Plan, Target Plan Asset Allocations | 10.00% | 10.00% |
Note_4_Fair_Value_Measurements3
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | $4 | [1] | $3 | [1] |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 1 | 1 | ||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 1 | [1] | 1 | [1] |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1] | [1] | ||
Cash and Cash Equivalents [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 5 | [1] | 4 | [1] |
Percent of Total | 1.00% | [1] | [1] | |
Cash and Cash Equivalents [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 1 | 1 | ||
Percent of Total | 1.00% | 1.00% | ||
US Large Cap [Member] | Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 95 | [1],[2] | 93 | [1],[2] |
US Large Cap [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [2] | [2] | ||
US Large Cap [Member] | Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 203 | [1],[2] | 205 | [1],[2] |
US Large Cap [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 51 | [2] | 52 | [2] |
US Large Cap [Member] | Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1],[2] | [1],[2] | ||
US Large Cap [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [2] | [2] | ||
US Large Cap [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 298 | [1],[2] | 298 | [1],[2] |
Percent of Total | 33.00% | [1],[2] | 33.00% | [1],[2] |
US Large Cap [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 51 | [2] | 52 | [2] |
Percent of Total | 57.00% | [2] | 62.00% | [2] |
US Small Cap [Member] | Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 76 | [1],[2] | 72 | [1],[2] |
US Small Cap [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [2] | [2] | ||
US Small Cap [Member] | Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 24 | [1],[2] | 29 | [1],[2] |
US Small Cap [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [2] | [2] | ||
US Small Cap [Member] | Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1],[2] | [1],[2] | ||
US Small Cap [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [2] | [2] | ||
US Small Cap [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 100 | [1],[2] | 101 | [1],[2] |
Percent of Total | 11.00% | [1],[2] | 11.00% | [1],[2] |
US Small Cap [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [2] | [2] | ||
Percent of Total | [2] | [2] | ||
International Companies [Member] | Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1],[3] | [1],[3] | ||
International Companies [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [3] | [3] | ||
International Companies [Member] | Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 123 | [1],[3] | 139 | [1],[3] |
International Companies [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 16 | [3] | 14 | [3] |
International Companies [Member] | Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1],[3] | [1],[3] | ||
International Companies [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [3] | [3] | ||
International Companies [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 123 | [1],[3] | 139 | [1],[3] |
Percent of Total | 13.00% | [1],[3] | 15.00% | [1],[3] |
International Companies [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 16 | [3] | 14 | [3] |
Percent of Total | 18.00% | [3] | 17.00% | [3] |
Emerging Markets [Member] | Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1],[4] | [1],[4] | ||
Emerging Markets [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [4] | [4] | ||
Emerging Markets [Member] | Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 31 | [1],[4] | 34 | [1],[4] |
Emerging Markets [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [4] | [4] | ||
Emerging Markets [Member] | Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1],[4] | [1],[4] | ||
Emerging Markets [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [4] | [4] | ||
Emerging Markets [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 31 | [1],[4] | 34 | [1],[4] |
Percent of Total | 3.00% | [1],[4] | 4.00% | [1],[4] |
Emerging Markets [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [4] | [4] | ||
Percent of Total | [4] | [4] | ||
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 171 | [1] | 165 | [1] |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 381 | [1] | 407 | [1] |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 67 | 66 | ||
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1] | [1] | ||
Equity Securities [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 552 | 572 | ||
Percent of Total | 60.00% | [1] | 63.00% | [1] |
Equity Securities [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 67 | 66 | ||
Percent of Total | 75.00% | 79.00% | ||
Equity Securities [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Percent of Total | 71.00% | 74.00% | ||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1],[5] | [1],[5] | ||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [5] | [5] | ||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 233 | [1],[5] | 207 | [1],[5] |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 22 | [5] | 17 | [5] |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1],[5] | [1],[5] | ||
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [5] | [5] | ||
Corporate Debt Securities [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 233 | [1],[5] | 207 | [1],[5] |
Percent of Total | 25.00% | [1],[5] | 23.00% | [1],[5] |
Corporate Debt Securities [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 22 | [5] | 17 | [5] |
Percent of Total | 24.00% | [5] | 20.00% | [5] |
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1] | [1] | ||
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 33 | [1] | 29 | [1] |
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1] | [1] | ||
US Treasury and Government [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 33 | [1] | 29 | [1] |
Percent of Total | 4.00% | [1] | 3.00% | [1] |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1] | [1] | ||
Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 266 | [1] | 236 | [1] |
Fixed Income Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 22 | 17 | ||
Fixed Income Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1] | [1] | ||
Fixed Income Securities [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 266 | 236 | ||
Percent of Total | 29.00% | [1] | 26.00% | [1] |
Fixed Income Securities [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 22 | 17 | ||
Percent of Total | 24.00% | 20.00% | ||
Fixed Income Securities [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Percent of Total | 29.00% | 26.00% | ||
Hedge Funds, Global Opportunity [Member] | Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1],[6] | [1],[6] | ||
Hedge Funds, Global Opportunity [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [6] | [6] | ||
Hedge Funds, Global Opportunity [Member] | Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1],[6] | [1],[6] | ||
Hedge Funds, Global Opportunity [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [6] | [6] | ||
Hedge Funds, Global Opportunity [Member] | Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 29 | [1],[6] | 43 | [1],[6] |
Hedge Funds, Global Opportunity [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [6] | [6] | ||
Hedge Funds, Global Opportunity [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 29 | [1],[6] | 43 | [1],[6] |
Percent of Total | 3.00% | [1],[6] | 5.00% | [1],[6] |
Hedge Funds, Global Opportunity [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [6] | [6] | ||
Percent of Total | [6] | [6] | ||
Absolute Return [Member] | Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1],[7] | [1],[7] | ||
Absolute Return [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [7] | [7] | ||
Absolute Return [Member] | Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1],[7] | [1],[7] | ||
Absolute Return [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [7] | [7] | ||
Absolute Return [Member] | Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 42 | [1],[7] | 39 | [1],[7] |
Absolute Return [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [7] | [7] | ||
Absolute Return [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 42 | [1],[7] | 39 | [1],[7] |
Percent of Total | 5.00% | [1],[7] | 4.00% | [1],[7] |
Absolute Return [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [7] | [7] | ||
Percent of Total | [7] | [7] | ||
Private Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1],[8] | [1],[8] | ||
Private Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [8] | [8] | ||
Private Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1],[8] | [1],[8] | ||
Private Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [8] | [8] | ||
Private Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 20 | [1],[8] | 22 | [1],[8] |
Private Equity Funds [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [8] | [8] | ||
Private Equity Funds [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 20 | [1],[8] | 22 | [1],[8] |
Percent of Total | 2.00% | [1],[8] | 2.00% | [1],[8] |
Private Equity Funds [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [8] | [8] | ||
Percent of Total | [8] | [8] | ||
Other Types of Investments [Member] | Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1] | [1] | ||
Other Types of Investments [Member] | Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | [1] | [1] | ||
Other Types of Investments [Member] | Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 91 | [1] | 104 | [1] |
Other Types of Investments [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 91 | 104 | ||
Percent of Total | 10.00% | [1] | 11.00% | [1] |
Fair Value, Inputs, Level 1 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 175 | [1] | 168 | [1] |
% of Fair Value of Plan Assets | 19.00% | [1] | 19.00% | [1] |
Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 1 | 1 | ||
% of Fair Value of Plan Assets | 1.00% | 1.00% | ||
Fair Value, Inputs, Level 2 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 648 | [1] | 644 | [1] |
% of Fair Value of Plan Assets | 71.00% | [1] | 70.00% | [1] |
Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 89 | 83 | ||
% of Fair Value of Plan Assets | 99.00% | 99.00% | ||
Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 91 | [1] | 104 | [1] |
% of Fair Value of Plan Assets | 10.00% | [1] | 11.00% | [1] |
Pension Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | 914 | [1] | 916 | [1] |
Percent of Total | 100.00% | [1] | 100.00% | [1] |
% of Fair Value of Plan Assets | 100.00% | [1] | 100.00% | [1] |
Other Postretirement Benefit Plan [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities [Line Items] | ||||
Fair Value of Plan Assets | $90 | $84 | ||
Percent of Total | 100.00% | 100.00% | ||
% of Fair Value of Plan Assets | 100.00% | 100.00% | ||
[1] | Includes $9 million at December 31, 2014 and December 31, 2013 of medical benefit (health and welfare) component for 401h accounts to fund a portion of the other retirement benefits. | |||
[2] | Includes funds that invest primarily in U.S. common stocks. | |||
[3] | Includes funds that invest primarily in foreign equity and equity-related securities. | |||
[4] | Includes funds that invest primarily in common stocks of emerging markets. | |||
[5] | Includes funds that invest primarily in investment grade debt and fixed income securities. | |||
[6] | Includes funds that invest in limited / general partnerships, managed accounts, and other investment entities issued by non-traditional firms or "hedge funds." | |||
[7] | Includes funds that invest primarily in investment vehicles and commodity pools as a "fund of funds." | |||
[8] | Includes funds that invest in private equity and small buyout funds, partnership investments, direct investments, secondary investments, directly / indirectly in real estate and may invest in equity securities of real estate related companies, real estate mortgage loans, and real estate mezzanine loans. |
Note_4_Fair_Value_Measurements4
Note 4 - Fair Value Measurements (Details) - Reconciliation of Retirement Plan Assets in Level 3 (Fair Value, Inputs, Level 3 [Member], USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at December 31, 2012 | $104 | [1] | $97 | [1] |
Balance | 91 | [1] | 104 | [1] |
Actual return on plan assets | 6 | [1] | 12 | [1] |
Sales | -19 | [1] | -5 | [1] |
Global Hedged Equity [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at December 31, 2012 | 43 | [1] | 38 | [1] |
Balance | 29 | [1] | 43 | [1] |
Actual return on plan assets | 1 | [1] | 5 | [1] |
Sales | -15 | [1] | [1] | |
Absolute Return [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at December 31, 2012 | 39 | [1] | 36 | [1] |
Balance | 42 | [1] | 39 | [1] |
Actual return on plan assets | 3 | [1] | 3 | [1] |
Sales | [1] | [1] | ||
Private Capital [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at December 31, 2012 | 22 | [1] | 23 | [1] |
Balance | 20 | [1] | 22 | [1] |
Actual return on plan assets | 2 | [1] | 4 | [1] |
Sales | ($4) | [1] | ($5) | [1] |
[1] | Balances of $3 million at December 31, 2014 and 2013 associated with certain weather derivatives have been excluded, as they are accounted for based on intrinsic value rather than fair value. |
Note_4_Fair_Value_Measurements5
Note 4 - Fair Value Measurements (Details) - Derivative Assets and Liabilities (Natural Gas Derivatives [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Natural gas derivatives | ||||
Derivative Assets | $284 | [1],[2],[3] | $116 | [1],[2],[3] |
Derivative Liabilities | -93 | [2],[3] | -80 | [2],[3] |
Netting of cash collateral | 52 | [1] | 43 | [1] |
Netting of cash collateral | 81 | 78 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Natural gas derivatives | ||||
Derivative Assets | 58 | [1] | 6 | [1] |
Derivative Liabilities | -80 | -79 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Natural gas derivatives | ||||
Derivative Assets | 174 | [1] | 67 | [1] |
Derivative Liabilities | ($94) | ($79) | ||
[1] | Balances of $3 million at December 31, 2014 and 2013 associated with certain weather derivatives have been excluded, as they are accounted for based on intrinsic value rather than fair value. | |||
[2] | There were no significant unobservable inputs (Level 3) for any of the dates presented. | |||
[3] | There were no significant transfers between Level 1, Level 2, or Level 3 for any of the dates presented. |
Note_4_Fair_Value_Measurements6
Note 4 - Fair Value Measurements (Details) - Amortized Cost and Fair Value of Long-Term Debt (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Note 4 - Fair Value Measurements (Details) - Amortized Cost and Fair Value of Long-Term Debt [Line Items] | ||||
Long-term debt carrying amount | $3,802 | $3,813 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Note 4 - Fair Value Measurements (Details) - Amortized Cost and Fair Value of Long-Term Debt [Line Items] | ||||
Long-term debt fair value (1) | $4,231 | [1] | $3,956 | [1] |
[1] | Fair value determined using Level 2 inputs. |
Note_5_Derivative_Instruments_1
Note 5 - Derivative Instruments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Note 5 - Derivative Instruments (Details) [Line Items] | |||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | $93 | $80 | |
Increase (Decrease) in Risk Management Assets and Liabilities | 155 | -66 | -72 |
Collateral Already Posted, Aggregate Fair Value | 133 | 121 | |
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | 7 | ||
Less Than Two Years [Member] | Natural Gas [Member] | |||
Note 5 - Derivative Instruments (Details) [Line Items] | |||
Percent of Derivative Contracts | 100.00% | ||
Less Than Two Years [Member] | |||
Note 5 - Derivative Instruments (Details) [Line Items] | |||
Derivative, Term of Contract | 2 years | ||
Expiring in Two to Five Years [Member] | Natural Gas [Member] | Maximum [Member] | |||
Note 5 - Derivative Instruments (Details) [Line Items] | |||
Derivative, Term of Contract | 5 years | ||
Expiring in Two to Five Years [Member] | Natural Gas [Member] | Minimum [Member] | |||
Note 5 - Derivative Instruments (Details) [Line Items] | |||
Derivative, Term of Contract | 2 years | ||
Expiring in Two to Five Years [Member] | Natural Gas [Member] | |||
Note 5 - Derivative Instruments (Details) [Line Items] | |||
Percent of Derivative Contracts | 1.00% | ||
Weather Derivatives [Member] | |||
Note 5 - Derivative Instruments (Details) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | -7 | -5 | -14 |
Maximum [Member] | |||
Note 5 - Derivative Instruments (Details) [Line Items] | |||
Derivative, Collateral, Obligation to Return Cash | $14 |
Note_5_Derivative_Instruments_2
Note 5 - Derivative Instruments (Details) - Net Long Natural Gas Contracts | Dec. 31, 2014 | Dec. 31, 2013 | ||
ft3 | ft3 | |||
Note 5 - Derivative Instruments (Details) - Net Long Natural Gas Contracts [Line Items] | ||||
Cash flow hedges | 9,000,000,000 | [1],[2] | 6,000,000,000 | [1] |
Not designated as hedges | 75,000,000,000 | [1],[2] | 183,000,000,000 | [1] |
Total volumes | 84,000,000,000 | [1],[2] | 189,000,000,000 | [1] |
Net long position | 84,000,000,000 | [1],[2] | 189,000,000,000 | [1] |
Designated as Hedging Instrument [Member] | ||||
Note 5 - Derivative Instruments (Details) - Net Long Natural Gas Contracts [Line Items] | ||||
Short position | -4,000,000,000 | [1],[2] | -6,000,000,000 | [1] |
Long position | 16,000,000,000 | [1],[2] | 12,000,000,000 | [1] |
Not Designated as Hedging Instrument [Member] | ||||
Note 5 - Derivative Instruments (Details) - Net Long Natural Gas Contracts [Line Items] | ||||
Short position | -2,828,000,000,000 | [1],[2] | -2,616,000,000,000 | [1] |
Long position | 2,900,000,000,000 | [1],[2] | 2,799,000,000,000 | [1] |
[1] | Volumes related to Nicor Gas exclude variable-priced contracts, which are carried at fair value, but whose fair values are not directly impacted by changes in commodity prices. | |||
[2] | Approximately 100% of these contracts have durations of two years or less and less than 1% expire between two and five years. |
Note_5_Derivative_Instruments_3
Note 5 - Derivative Instruments (Details) - Gains and Losses on Derivative Instruments (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Nicor Gas [Member] | ||
Note 5 - Derivative Instruments (Details) - Gains and Losses on Derivative Instruments [Line Items] | ||
Realized losses related to hedging natural gas costs | $10 | $4 |
Elizabethtown Gas [Member] | ||
Note 5 - Derivative Instruments (Details) - Gains and Losses on Derivative Instruments [Line Items] | ||
Realized losses related to hedging natural gas costs | $2 | ($6) |
Note_5_Derivative_Instruments_4
Note 5 - Derivative Instruments (Details) - Derivative Instruments on the Condensed Consolidated Statements of Financial Position (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ||||
Net amounts of assets and liabilities presented in ourConsolidated Statements of Financial Position (3) | ($93) | ($80) | ||
Current Natural Gas Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets | 6 | 3 | ||
Liabilities | -11 | -1 | ||
Current Natural Gas Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets | 1,061 | 691 | ||
Liabilities | -1,020 | -761 | ||
Long-term Interest Rate Swap Agreements [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Liabilities | -1 | |||
Long-Term Natural Gas Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets | 145 | 206 | ||
Liabilities | -119 | -220 | ||
Long-Term Natural Gas Contracts [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets | 1,212 | [1],[2] | 900 | [1],[2] |
Liabilities | -1,151 | [1],[2] | -982 | [1],[2] |
Gross amounts offset in our Consolidated Statements of Financial Position(2) | -925 | [2] | -781 | [2] |
Gross amounts offset in our Consolidated Statements of Financial Position(2) | 1,058 | [2] | 902 | [2] |
Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets | 6 | 3 | ||
Liabilities | -12 | -1 | ||
Net amounts of assets and liabilities presented in ourConsolidated Statements of Financial Position (3) | 287 | [3] | 119 | [3] |
Net amounts of assets and liabilities presented in ourConsolidated Statements of Financial Position (3) | -93 | [3] | -80 | [3] |
Not Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets | 1,206 | 897 | ||
Liabilities | ($1,139) | ($981) | ||
[1] | The gross amounts of recognized assets and liabilities are netted within our 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 $133 million as of December 31, 2014 and $121 million as of December 31, 2013. Cash collateral is included in the "Gross amounts offset in our Consolidated Statements of Financial Position" line of this table. | |||
[3] | At December 31, 2014 and 2013, we held letters of credit from counterparties that would offset, under master netting arrangements, an insignificant portion of these assets. |
Note_5_Derivative_Instruments_5
Note 5 - Derivative Instruments (Details) - Derivative Instruments on the Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Designated as cash flow or fair value hedges | ||||||
Income tax (expense)/benefit | $2 | $1 | $3 | |||
Total designated as cash flow or fair value hedges, net of tax | 3 | -3 | -6 | |||
Not designated as hedges (1) | ||||||
Total gains (losses) on derivative instruments, net of tax | 91 | -57 | 13 | |||
Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||||
Designated as cash flow or fair value hedges | ||||||
Natural gas contracts - gain reclassified from OCI | 4 | -1 | -5 | |||
Cost of Sales [Member] | Fair Value Hedging [Member] | ||||||
Not designated as hedges (1) | ||||||
Natural gas contracts - net value adjustments | -7 | [1],[2] | 2 | [1],[2] | -4 | [1],[2] |
Operating Expense [Member] | Cash Flow Hedging [Member] | ||||||
Designated as cash flow or fair value hedges | ||||||
Natural gas contracts - gain reclassified from OCI | 1 | |||||
Interest Expense [Member] | Cash Flow Hedging [Member] | ||||||
Designated as cash flow or fair value hedges | ||||||
Interest rate swaps – net loss reclassified from OCI into interest expense | -3 | -4 | ||||
Sales [Member] | Fair Value Hedging [Member] | ||||||
Not designated as hedges (1) | ||||||
Natural gas contracts - net value adjustments | 149 | [1] | -90 | [1] | 34 | [1] |
Cash Flow Hedging [Member] | ||||||
Designated as cash flow or fair value hedges | ||||||
Income tax (expense)/benefit | -2 | 1 | 3 | |||
Total designated as cash flow or fair value hedges, net of tax | 3 | -3 | -6 | |||
Fair Value Hedging [Member] | ||||||
Not designated as hedges (1) | ||||||
Income tax (expense)/benefit | -54 | [1] | 34 | [1] | -11 | [1] |
Total not designated as hedges, net of tax | $88 | [1] | ($54) | [1] | $19 | [1] |
[1] | Associated with the fair value of derivative instruments held at December 31, 2014, 2013 and 2012. | |||||
[2] | Excludes losses recorded in cost of goods sold associated with weather derivatives of $7 million, $5 million and $14 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Note_6_Employee_Benefit_Plans_1
Note 6 - Employee Benefit Plans (Details) (USD $) | 12 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Note 6 - Employee Benefit Plans (Details) [Line Items] | ||||||||
Regulatory Assets | $714,000,000 | $819,000,000 | ||||||
Defined Benefit Plan, Funding Target | 100.00% | |||||||
Defined Benefit Plan, Funding Target, Amortization Period | 7 years | |||||||
Defined Contribution Plan, Employer Matching Contribution | 17,000,000 | 14,000,000 | 12,000,000 | |||||
Scenario, Forecast [Member] | ||||||||
Note 6 - Employee Benefit Plans (Details) [Line Items] | ||||||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation Pension, Band Increase, Rate | 0.00% | 2.00% | ||||||
Defined Benefit Welfare Benefits [Member] | Other Postretirement Benefit Plan [Member] | ||||||||
Note 6 - Employee Benefit Plans (Details) [Line Items] | ||||||||
Regulatory Assets | 122,000,000 | 108,000,000 | ||||||
Supplemental Employee Retirement Plan [Member] | ||||||||
Note 6 - Employee Benefit Plans (Details) [Line Items] | ||||||||
Defined Benefit Plan, Benefit Obligation | 2,000,000 | 2,000,000 | ||||||
Other Postretirement Benefit Plan [Member] | ||||||||
Note 6 - Employee Benefit Plans (Details) [Line Items] | ||||||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation Pension, Band Increase, Rate | [1] | [1] | [1] | |||||
AGL Resources Retirement Plan [Member] | ||||||||
Note 6 - Employee Benefit Plans (Details) [Line Items] | ||||||||
Defined Benefit Plan, Required Employer Contribution, Amount | $0 | $0 | ||||||
[1] | Only applicable to the Nicor Gas union employees. The pension bands for the former Nicor Plan have been updated to reflect the new negotiated rates for 2015 and 2016, of 2.0% and 0%, respectively, as indicated in the union agreement dated March 2014. |
Note_6_Employee_Benefit_Plans_2
Note 6 - Employee Benefit Plans (Details) - Components of Pension and Other Retirement Benefit Costs (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Weighted Average [Member] | Pension Plan [Member] | ||||||
Note 6 - Employee Benefit Plans (Details) - Components of Pension and Other Retirement Benefit Costs [Line Items] | ||||||
Discount rate (1) | 5.00% | [1] | 4.20% | [1] | 4.60% | [1] |
Expected return on plan assets (1) | 7.80% | [1] | 7.80% | [1] | 8.40% | [1] |
Rate of compensation increase (1) | 3.70% | [1] | 3.70% | [1] | 3.70% | [1] |
Weighted Average [Member] | Other Postretirement Benefit Plan [Member] | ||||||
Note 6 - Employee Benefit Plans (Details) - Components of Pension and Other Retirement Benefit Costs [Line Items] | ||||||
Discount rate (1) | 4.70% | [1] | 4.00% | [1] | 4.50% | [1] |
Expected return on plan assets (1) | 7.80% | [1] | 7.80% | [1] | 8.50% | [1] |
Rate of compensation increase (1) | 3.70% | [1] | 3.80% | [1] | 3.80% | [1] |
Pension Plan [Member] | ||||||
Note 6 - Employee Benefit Plans (Details) - Components of Pension and Other Retirement Benefit Costs [Line Items] | ||||||
Service cost | 24 | 29 | 28 | |||
Interest cost | 47 | 43 | 44 | |||
Expected return on plan assets | -65 | -62 | -64 | |||
Net amortization of prior service cost | -2 | -2 | -2 | |||
Recognized actuarial loss | 22 | 35 | 34 | |||
Net periodic benefit cost | 26 | 43 | 40 | |||
Discount rate (1) | 4.20% | 5.00% | ||||
Pension band increase (2) | 2.00% | [2] | 2.00% | [2] | 2.00% | [2] |
Other Postretirement Benefit Plan [Member] | ||||||
Note 6 - Employee Benefit Plans (Details) - Components of Pension and Other Retirement Benefit Costs [Line Items] | ||||||
Service cost | 2 | 3 | 4 | |||
Interest cost | 15 | 14 | 16 | |||
Expected return on plan assets | -7 | -6 | -5 | |||
Net amortization of prior service cost | -3 | -5 | -3 | |||
Recognized actuarial loss | 6 | 8 | 9 | |||
Net periodic benefit cost | 13 | 14 | 21 | |||
Discount rate (1) | 4.00% | 4.70% | ||||
Pension band increase (2) | [2] | [2] | [2] | |||
[1] | Rates are presented on a weighted average basis. | |||||
[2] | Only applicable to the Nicor Gas union employees. The pension bands for the former Nicor Plan have been updated to reflect the new negotiated rates for 2015 and 2016, of 2.0% and 0%, respectively, as indicated in the union agreement dated March 2014. |
Note_6_Employee_Benefit_Plans_3
Note 6 - Employee Benefit Plans (Details) - Employee Benefit Plans (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||
Long-term asset (2) | $97 | $117 | |||
Defined Benefit Plan Change In Fair Value Of Plan Assets [Member] | Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets, January 1, | 907 | 837 | |||
Actual return on plan assets | 68 | 134 | |||
Employer contributions | 1 | 1 | |||
Benefits paid | -70 | -65 | |||
Fair value of plan assets, December 31, | 906 | 907 | |||
Defined Benefit Plan Change In Fair Value Of Plan Assets [Member] | Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets, January 1, | 93 | 77 | |||
Actual return on plan assets | 5 | 16 | |||
Employee contributions | 2 | 3 | |||
Employer contributions | 17 | 19 | |||
Benefits paid | -19 | -23 | |||
Medicare Part D reimbursements | 1 | 1 | |||
Fair value of plan assets, December 31, | 99 | 93 | |||
Defined Benefit Plan Change In Benefit Obligation [Member] | Pension Plan [Member] | Long-term Asset [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Long-term asset (2) | 97 | [1] | 117 | [1] | |
Defined Benefit Plan Change In Benefit Obligation [Member] | Pension Plan [Member] | Current Liability [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Current liability | -2 | -2 | |||
Defined Benefit Plan Change In Benefit Obligation [Member] | Pension Plan [Member] | Long-term Liability [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Long-term liability | -287 | -168 | |||
Net liability at December 31, | -192 | -53 | |||
Defined Benefit Plan Change In Benefit Obligation [Member] | Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Benefit obligation, December 31, | 1,098 | 960 | |||
Funded status at end of year | -192 | -53 | |||
Benefits paid | -70 | -65 | |||
Benefit obligation, January 1, | 960 | 1,046 | |||
Service cost | 24 | 29 | |||
Interest cost | 47 | 43 | |||
Actuarial loss (gain) | 137 | -93 | |||
Defined Benefit Plan Change In Benefit Obligation [Member] | Other Postretirement Benefit Plan [Member] | Long-term Asset [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Long-term asset (2) | [1] | [1] | |||
Defined Benefit Plan Change In Benefit Obligation [Member] | Other Postretirement Benefit Plan [Member] | Long-term Liability [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Long-term liability | -235 | -233 | |||
Net liability at December 31, | -235 | -233 | |||
Defined Benefit Plan Change In Benefit Obligation [Member] | Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employee contributions | 1 | 3 | |||
Benefit obligation, December 31, | 334 | 326 | |||
Funded status at end of year | -235 | -233 | |||
Benefits paid | -19 | -23 | |||
Benefit obligation, January 1, | 326 | 354 | |||
Service cost | 2 | 3 | |||
Interest cost | 15 | 14 | |||
Actuarial loss (gain) | 8 | -26 | |||
Medicare Part D reimbursements | 1 | 1 | |||
Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets, January 1, | 916 | [2] | |||
Service cost | 24 | 29 | 28 | ||
Interest cost | 47 | 43 | 44 | ||
Fair value of plan assets, December 31, | 914 | [2] | 916 | [2] | |
Accumulated benefit obligation (1) | 1,027 | [3] | 902 | [3] | |
Discount rate | 4.20% | 5.00% | |||
Rate of compensation increase | 3.70% | 3.70% | |||
Pension band increase (3) | 2.00% | [4] | 2.00% | [4] | |
Other Postretirement Benefit Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets, January 1, | 84 | ||||
Service cost | 2 | 3 | 4 | ||
Interest cost | 15 | 14 | 16 | ||
Fair value of plan assets, December 31, | 90 | 84 | |||
Accumulated benefit obligation (1) | [3] | [3] | |||
Discount rate | 4.00% | 4.70% | |||
Rate of compensation increase | 3.70% | 3.70% | |||
Pension band increase (3) | [4] | [4] | |||
[1] | As a result of historically having multiple plans, a portion of our obligation is in an asset position. | ||||
[2] | Includes $9 million at December 31, 2014 and December 31, 2013 of medical benefit (health and welfare) component for 401h accounts to fund a portion of the other retirement benefits. | ||||
[3] | APBO differs from the projected benefit obligation in that APBO excludes the effect of salary and wage increases. | ||||
[4] | Only applicable to the Nicor Gas union employees. |
Note_6_Employee_Benefit_Plans_4
Note 6 - Employee Benefit Plans (Details) - Health Care Benefit Cost Assumptions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Health Care Benefit Cost Assumptions [Abstract] | ||
Health care cost trend rate assumed for next year | 8.10% | 8.40% |
Ultimate rate to which the cost trend rate is assumed to decline | 4.50% | 4.50% |
Year that reaches ultimate trend rate | 2030 | 2030 |
Note_6_Employee_Benefit_Plans_5
Note 6 - Employee Benefit Plans (Details) - One-Percentage-Point Change in Assumed Health Care Cost (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
One-Percentage-Point Change in Assumed Health Care Cost [Abstract] | |
1% Health care cost trend rate increase | $15 |
1% Health care cost trend rate decrease | ($13) |
Note_6_Employee_Benefit_Plans_6
Note 6 - Employee Benefit Plans (Details) - Net Periodic Benefit Costs Not Yet Recognized (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Net Regulatory Assets [Member] | Pension Plan [Member] | ||
Note 6 - Employee Benefit Plans (Details) - Net Periodic Benefit Costs Not Yet Recognized [Line Items] | ||
Net loss | $76 | $61 |
Total | 76 | 61 |
Net Regulatory Assets [Member] | Other Postretirement Benefit Plan [Member] | ||
Note 6 - Employee Benefit Plans (Details) - Net Periodic Benefit Costs Not Yet Recognized [Line Items] | ||
Prior service credit | -18 | -20 |
Net loss | 57 | 60 |
Total | 39 | 40 |
Accumulated AOCI [Member] | Pension Plan [Member] | ||
Note 6 - Employee Benefit Plans (Details) - Net Periodic Benefit Costs Not Yet Recognized [Line Items] | ||
Prior service credit | -6 | -9 |
Net loss | 307 | 210 |
Total | 301 | 201 |
Accumulated AOCI [Member] | Other Postretirement Benefit Plan [Member] | ||
Note 6 - Employee Benefit Plans (Details) - Net Periodic Benefit Costs Not Yet Recognized [Line Items] | ||
Net loss | 36 | 30 |
Total | 36 | 30 |
Total Net Regulatory Assets And AOCI [Member] | Pension Plan [Member] | ||
Note 6 - Employee Benefit Plans (Details) - Net Periodic Benefit Costs Not Yet Recognized [Line Items] | ||
Prior service credit | -6 | -9 |
Net loss | 383 | 271 |
Total | 377 | 262 |
Total Net Regulatory Assets And AOCI [Member] | Other Postretirement Benefit Plan [Member] | ||
Note 6 - Employee Benefit Plans (Details) - Net Periodic Benefit Costs Not Yet Recognized [Line Items] | ||
Prior service credit | -18 | -20 |
Net loss | 93 | 90 |
Total | $75 | $70 |
Note_6_Employee_Benefit_Plans_7
Note 6 - Employee Benefit Plans (Details) - Estimated Amortization Out of Regulatory Assets or Accumulated OCI (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Net Regulatory Assets [Member] | Pension Plan [Member] | |
Note 6 - Employee Benefit Plans (Details) - Estimated Amortization Out of Regulatory Assets or Accumulated OCI [Line Items] | |
Amortization of net loss | $9 |
Net Regulatory Assets [Member] | Other Postretirement Benefit Plan [Member] | |
Note 6 - Employee Benefit Plans (Details) - Estimated Amortization Out of Regulatory Assets or Accumulated OCI [Line Items] | |
Amortization of prior service credit | -3 |
Amortization of net loss | 3 |
Accumulated AOCI [Member] | Pension Plan [Member] | |
Note 6 - Employee Benefit Plans (Details) - Estimated Amortization Out of Regulatory Assets or Accumulated OCI [Line Items] | |
Amortization of prior service credit | -2 |
Amortization of net loss | 20 |
Accumulated AOCI [Member] | Other Postretirement Benefit Plan [Member] | |
Note 6 - Employee Benefit Plans (Details) - Estimated Amortization Out of Regulatory Assets or Accumulated OCI [Line Items] | |
Amortization of net loss | 2 |
Total Net Regulatory Assets And AOCI [Member] | Pension Plan [Member] | |
Note 6 - Employee Benefit Plans (Details) - Estimated Amortization Out of Regulatory Assets or Accumulated OCI [Line Items] | |
Amortization of prior service credit | -2 |
Amortization of net loss | 29 |
Total Net Regulatory Assets And AOCI [Member] | Other Postretirement Benefit Plan [Member] | |
Note 6 - Employee Benefit Plans (Details) - Estimated Amortization Out of Regulatory Assets or Accumulated OCI [Line Items] | |
Amortization of prior service credit | -3 |
Amortization of net loss | $5 |
Note_6_Employee_Benefit_Plans_8
Note 6 - Employee Benefit Plans (Details) - Expected Benefit Payments (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension Plan [Member] | |
Note 6 - Employee Benefit Plans (Details) - Expected Benefit Payments [Line Items] | |
2015 | $61 |
2016 | 64 |
2017 | 67 |
2018 | 70 |
2019 | 72 |
2020-2024 | 374 |
Other Postretirement Benefit Plan [Member] | |
Note 6 - Employee Benefit Plans (Details) - Expected Benefit Payments [Line Items] | |
2015 | 19 |
2016 | 20 |
2017 | 20 |
2018 | 21 |
2019 | 22 |
2020-2024 | $115 |
Note_7_Stockbased_Compensation2
Note 7 - Stock-based Compensation (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 7 - Stock-based Compensation (Details) [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | $0 | $0 | |
Proceeds from Stock Options Exercised (in Dollars) | 9,000,000 | 21,000,000 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit (in Dollars per share) | $31.09 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit (in Dollars per share) | $43.54 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 |
Employee Stock Option [Member] | |||
Note 7 - Stock-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Note 7 - Stock-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 44,272 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 3 years | ||
Performance Shares [Member] | Granted in 2012 [Member] | |||
Note 7 - Stock-based Compensation (Details) [Line Items] | |||
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent (in Dollars) | 8,000,000 | ||
Maximum Aggregate Payout (in Dollars) | 20,000,000 | ||
Stock Awards [Member] | Non-Employee Directors [Member] | |||
Note 7 - Stock-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 21,903 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $52.97 | ||
Omnibus Performance Incentive Plan [Member] | |||
Note 7 - Stock-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 587,292 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 3,962,335 | ||
Long-term Incentive Plan [Member] | Nicor Gas [Member] | |||
Note 7 - Stock-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,551,040 | ||
Long-term Incentive Plan [Member] | |||
Note 7 - Stock-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 436,400 | ||
Employee Stock Purchase Plan [Member] | |||
Note 7 - Stock-based Compensation (Details) [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 422,564 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 15.00% | ||
Employee Stock Purchase Plan, Maximum Contributions Per Employee (in Dollars) | $25,000 |
Note_7_Stockbased_Compensation3
Note 7 - Stock-based Compensation (Details) - Compensation Costs, Tax Benefits and Excess Tax Benefits (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Compensation Costs, Tax Benefits and Excess Tax Benefits [Abstract] | ||||||
Compensation costs (1) | $24 | [1] | $22 | [1] | $9 | [1] |
Income tax benefits (1) | 1 | [1] | 1 | [1] | 1 | [1] |
Excess tax benefits (2) | [2] | [2] | $1 | [2] | ||
[1] | Recorded in our Consolidated Statements of Income. | |||||
[2] | Recorded in our Consolidated Statements of Financial Position. |
Note_7_Stockbased_Compensation4
Note 7 - Stock-based Compensation (Details) - Stock Options Activity (USD $) | 12 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Stock Options Activity [Abstract] | |||||||
Outstanding, Number of options | 627,550 | [1],[2] | 898,732 | [1] | 1,528,590 | [1] | 1,823,154 |
Outstanding, Weighted average exercise price | $36.41 | [1],[2] | $36.55 | [1] | $36.09 | [1] | $35.61 |
Outstanding, Weighted average remaining life (in years) | 2 years 73 days | [1],[2] | 3 years | [1] | |||
Outstanding, Aggregate intrinsic value (in millions) | $11 | [1],[2] | $10 | [1] | |||
Exercised, Number of options | -267,182 | -617,358 | -234,844 | ||||
Exercised, Weighted average exercise price | $36.84 | $35.37 | $32.07 | ||||
Exercised, Weighted average remaining life (in years) | 1 year 255 days | ||||||
Forfeited, Number of options | -4,000 | -12,500 | -59,720 | ||||
Forfeited, Weighted average exercise price | $39.71 | $38.36 | $37.34 | ||||
Forfeited, Weighted average remaining life (in years) | 2 years 255 days | ||||||
[1] | All options outstanding at December 31, 2014, 2013 and 2012 were exercisable. | ||||||
[2] | The range of exercise prices for the options outstanding at December 31, 2014 was $31.09 to $43.54. |
Note_7_Stockbased_Compensation5
Note 7 - Stock-based Compensation (Details) - Nonvested Performance Share Units (Performance Shares [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Granted in 2012 [Member] | |
Note 7 - Stock-based Compensation (Details) - Nonvested Performance Share Units [Line Items] | |
Accrued | $8 |
Maximum aggregate payout | 20 |
Granted in 2013 [Member] | |
Note 7 - Stock-based Compensation (Details) - Nonvested Performance Share Units [Line Items] | |
Accrued | 7 |
Maximum aggregate payout | 21 |
Granted in 2014 [Member] | |
Note 7 - Stock-based Compensation (Details) - Nonvested Performance Share Units [Line Items] | |
Accrued | 4 |
Maximum aggregate payout | $24 |
Note_7_Stockbased_Compensation6
Note 7 - Stock-based Compensation (Details) - Restricted Stock Awards Activity (Restricted Stock [Member], USD $) | 12 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Restricted Stock [Member] | ||||||||
Note 7 - Stock-based Compensation (Details) - Restricted Stock Awards Activity [Line Items] | ||||||||
Outstanding | 462,910 | [1] | 441,253 | [1] | 503,091 | [1] | 477,354 | [1] |
Outstanding, Weighted average remaining vesting period (in years) | 1 year 292 days | [1] | 1 year 292 days | [1] | ||||
Outstanding, Weighted average fair value | $43.54 | [1] | $40.82 | [1] | $39.44 | [1] | $34.40 | [1] |
Issued | 262,235 | 175,935 | 268,840 | |||||
Issued, Weighted average fair value | $47.03 | $42.41 | $40.08 | |||||
Issued, Weighted average remaining vesting period (in years) | 4 years 146 days | |||||||
Forfeited | -14,895 | -33,352 | -28,829 | |||||
Forfeited, Weighted average fair value | $43.41 | $40.64 | $39.07 | |||||
Forfeited, Weighted average remaining vesting period (in years) | 2 years 146 days | |||||||
Vested | -225,683 | -204,421 | -214,274 | |||||
Vested, Weighted average fair value | $42.31 | $38.71 | $36.45 | |||||
[1] | Subject to restriction. |
Note_7_Stockbased_Compensation7
Note 7 - Stock-based Compensation (Details) - Employee Stock Purchase Plan (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Purchase Plan [Abstract] | |||
Shares purchased on the open market | 100,199 | 97,734 | 103,589 |
Average per-share purchase price | $51.60 | $42.96 | $38.96 |
Total purchase price discount | $739,598 | $628,358 | $591,855 |
Note_8_Debt_and_Credit_Facilit2
Note 8 - Debt and Credit Facilities (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 23, 2015 | |
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Proceeds from (Repayments of) Commercial Paper | $4,000,000 | ($206,000,000) | $56,000,000 | |
Repayments of Commercial Paper | 225,000,000 | |||
Proceeds from Issuance of Senior Long-term Debt | 0 | 494,000,000 | ||
Long-term Debt | 3,706,000,000 | |||
Convert to Variable Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Senior Notes | 120,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.90% | |||
Refinanced [Member] | Refunding Bonds [Member] | Gas Facility Revenue Bonds [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Long-term Debt | 60,000,000 | |||
Refinanced [Member] | Purchase of Existing Bonds [Member] | Gas Facility Revenue Bonds [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Long-term Debt | 140,000,000 | |||
Refinanced [Member] | Gas Facility Revenue Bonds [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Long-term Debt | 200,000,000 | |||
Commercial Paper [Member] | Minimum [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Debt Instrument, Term | 1 day | |||
Debt Instrument, Remaining Maturity Term | 2 days | |||
Commercial Paper [Member] | Maximum [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Debt Instrument, Term | 108 days | |||
Debt Instrument, Remaining Maturity Term | 70 days | |||
Commercial Paper [Member] | AGL Capital [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 0.50% | |||
Commercial Paper [Member] | Nicor Gas [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 0.40% | |||
Commercial Paper [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Proceeds from Short-term Debt, Maturing in More than Three Months | 50,000,000 | |||
Repayments of Short-term Debt, Maturing in More than Three Months | 195,000,000 | |||
Target ratio [Member] | Minimum [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Ratio of Indebtedness to Net Capital | 0.5 | |||
Target ratio [Member] | Maximum [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Ratio of Indebtedness to Net Capital | 0.6 | |||
Senior Notes [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Debt Instrument, Term | 30 years | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | |||
Proceeds from Issuance of Long-term Debt | 500,000,000 | |||
Long-term Debt | 2,625,000,000 | 2,825,000,000 | ||
Gas Facility Revenue Bonds [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Long-term Debt | 200,000,000 | 200,000,000 | ||
Interest Rate Swap [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Derivative, Notional Amount | 800,000,000 | |||
AGL Capital [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Long-term Line of Credit | 0 | 0 | ||
Nicor Gas [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Long-term Line of Credit | $0 | $0 | ||
Maximum [Member] | ||||
Note 8 - Debt and Credit Facilities (Details) [Line Items] | ||||
Ratio of Indebtedness to Net Capital | 0.7 |
Note_8_Debt_and_Credit_Facilit3
Note 8 - Debt and Credit Facilities (Details) - Debt Schedule (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Long-term debt - excluding current portion | ||||
Outstanding | $3,706 | |||
Total long-term debt | 3,602 | 3,813 | ||
Total debt | 4,977 | 4,984 | ||
Commercial Paper [Member] | Minimum [Member] | AGL Capital [Member] | ||||
Short-term debt | ||||
Maturity Date | [1] | |||
Long-term debt - excluding current portion | ||||
Maturity Date | [1] | |||
Commercial Paper [Member] | Minimum [Member] | Nicor Gas [Member] | ||||
Short-term debt | ||||
Maturity Date | [1] | |||
Long-term debt - excluding current portion | ||||
Maturity Date | [1] | |||
Commercial Paper [Member] | Maximum [Member] | AGL Capital [Member] | ||||
Short-term debt | ||||
Maturity Date | [1] | |||
Long-term debt - excluding current portion | ||||
Maturity Date | [1] | |||
Commercial Paper [Member] | Maximum [Member] | Nicor Gas [Member] | ||||
Short-term debt | ||||
Maturity Date | [1] | |||
Long-term debt - excluding current portion | ||||
Maturity Date | [1] | |||
Commercial Paper [Member] | AGL Capital [Member] | ||||
Short-term debt | ||||
Maturity Date | 2015 | [1] | ||
Weighted average interest rate | 0.30% | [1],[2] | 0.40% | [1],[2] |
Outstanding | 590 | [1] | 857 | [1] |
Long-term debt - excluding current portion | ||||
Maturity Date | 2015 | [1] | ||
Commercial Paper [Member] | Nicor Gas [Member] | ||||
Short-term debt | ||||
Maturity Date | 2015 | [1] | ||
Weighted average interest rate | 0.20% | [1],[2] | 0.30% | [1],[2] |
Outstanding | 585 | [1] | 314 | [1] |
Long-term debt - excluding current portion | ||||
Maturity Date | 2015 | [1] | ||
Commercial Paper [Member] | ||||
Short-term debt | ||||
Weighted average interest rate | 0.30% | [2] | 0.40% | [2] |
Outstanding | 1,175 | 1,171 | ||
Current Portion Long-Term Debt [Member] | ||||
Short-term debt | ||||
Maturity Date | 2015 | |||
Weighted average interest rate | 5.00% | [2] | [2] | |
Outstanding | 200 | |||
Long-term debt - excluding current portion | ||||
Maturity Date | 2015 | |||
Senior Notes [Member] | Minimum [Member] | ||||
Short-term debt | ||||
Maturity Date | 2016 | |||
Long-term debt - excluding current portion | ||||
Maturity Date | 2016 | |||
Senior Notes [Member] | Maximum [Member] | ||||
Short-term debt | ||||
Maturity Date | 2043 | |||
Long-term debt - excluding current portion | ||||
Maturity Date | 2043 | |||
Senior Notes [Member] | ||||
Long-term debt - excluding current portion | ||||
Weighted average interest rate | 5.00% | [2] | 5.00% | [2] |
Outstanding | 2,625 | 2,825 | ||
First Mortgage Bonds [Member] | Minimum [Member] | ||||
Short-term debt | ||||
Maturity Date | 2016 | |||
Long-term debt - excluding current portion | ||||
Maturity Date | 2016 | |||
First Mortgage Bonds [Member] | Maximum [Member] | ||||
Short-term debt | ||||
Maturity Date | 2038 | |||
Long-term debt - excluding current portion | ||||
Maturity Date | 2038 | |||
First Mortgage Bonds [Member] | ||||
Long-term debt - excluding current portion | ||||
Weighted average interest rate | 5.60% | [2] | 5.60% | [2] |
Outstanding | 500 | 500 | ||
Gas Facility Revenue Bonds [Member] | Minimum [Member] | ||||
Short-term debt | ||||
Maturity Date | 2022 | |||
Long-term debt - excluding current portion | ||||
Maturity Date | 2022 | |||
Gas Facility Revenue Bonds [Member] | Maximum [Member] | ||||
Short-term debt | ||||
Maturity Date | 2033 | |||
Long-term debt - excluding current portion | ||||
Maturity Date | 2033 | |||
Gas Facility Revenue Bonds [Member] | ||||
Long-term debt - excluding current portion | ||||
Weighted average interest rate | 0.90% | [2] | 1.00% | [2] |
Outstanding | 200 | 200 | ||
Medium-term Notes [Member] | Minimum [Member] | ||||
Short-term debt | ||||
Maturity Date | 2017 | |||
Long-term debt - excluding current portion | ||||
Maturity Date | 2017 | |||
Medium-term Notes [Member] | Maximum [Member] | ||||
Short-term debt | ||||
Maturity Date | 2027 | |||
Long-term debt - excluding current portion | ||||
Maturity Date | 2027 | |||
Medium-term Notes [Member] | ||||
Long-term debt - excluding current portion | ||||
Weighted average interest rate | 7.80% | [2] | 7.80% | [2] |
Outstanding | 181 | 181 | ||
Long-term Debt Principal [Member] | ||||
Long-term debt - excluding current portion | ||||
Weighted average interest rate | 4.90% | [2] | 4.90% | [2] |
Outstanding | 3,506 | 3,706 | ||
Long-term Debt Fair Value Adjustment [Member] | Minimum [Member] | ||||
Short-term debt | ||||
Maturity Date | 2016 | [3] | ||
Long-term debt - excluding current portion | ||||
Maturity Date | 2016 | [3] | ||
Long-term Debt Fair Value Adjustment [Member] | Maximum [Member] | ||||
Short-term debt | ||||
Maturity Date | 2038 | [3] | ||
Long-term debt - excluding current portion | ||||
Maturity Date | 2038 | [3] | ||
Long-term Debt Fair Value Adjustment [Member] | ||||
Short-term debt | ||||
Maturity Date | [3] | |||
Long-term debt - excluding current portion | ||||
Maturity Date | [3] | |||
Weighted average interest rate | [2],[3] | [2],[3] | ||
Outstanding | 80 | [3] | 91 | [3] |
Unamortized Debt Premium Discount, Net [Member] | ||||
Short-term debt | ||||
Maturity Date | ||||
Long-term debt - excluding current portion | ||||
Maturity Date | ||||
Weighted average interest rate | [2] | [2] | ||
Outstanding | 16 | 16 | ||
Long-term Debt Non-principal [Member] | ||||
Long-term debt - excluding current portion | ||||
Weighted average interest rate | [2] | [2] | ||
Outstanding | $96 | $107 | ||
[1] | As of December 31, 2014, the effective interest rates on our commercial paper borrowings were 0.5% for AGL Capital and 0.4% for Nicor Gas. | |||
[2] | Interest rates are calculated based on the daily weighted average balance outstanding for the 12 months ended December 31, 2014 and 2013. | |||
[3] | See Note 4 for additional information on our fair value measurements. |
Note_8_Debt_and_Credit_Facilit4
Note 8 - Debt and Credit Facilities (Details) - Maturities of Long-Term Debt (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Maturities of Long-term Debt [Abstract] | |
2015 | $200 |
2016 | 545 |
2017 | 22 |
2018 | 155 |
2019 | 350 |
Thereafter | 2,434 |
Total | $3,706 |
Note_8_Debt_and_Credit_Facilit5
Note 8 - Debt and Credit Facilities (Details) - Debt-to-Capitalization Ratios | Dec. 31, 2014 | Dec. 31, 2013 |
AGL Resources Inc [Member] | ||
Schedule of Capitalization [Line Items] | ||
Debt-to-capitalization ratio | 0.55 | 0.57 |
Nicor Gas [Member] | ||
Schedule of Capitalization [Line Items] | ||
Debt-to-capitalization ratio | 0.62 | 0.55 |
Note_9_Equity_Details
Note 9 - Equity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2011 | |
Note 9 - Equity (Details) [Line Items] | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 8,000,000 | ||
Treasury Stock, Shares, Acquired | 0 | 0 | |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $0 | $0 | |
Preferred Class A [Member] | |||
Note 9 - Equity (Details) [Line Items] | |||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $0 | $0 |
Note_9_Equity_Details_Other_Co
Note 9 - Equity (Details) - Other Comprehensive Income (Loss) (USD $) | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Other Comprehensive Income (Loss) [Abstract] | ||||||||
Cash flow hedges | ($6) | [1] | $1 | [1] | ($3) | [1] | ($7) | [1] |
Retirement benefit plans | -200 | [1] | -137 | [1] | -215 | [1] | -210 | [1] |
Total | -206 | [1] | -136 | [1] | -218 | [1] | -217 | [1] |
Other comprehensive income, before reclassifications - Cash flow hedges | -6 | [1] | 1 | [1] | 4 | [1] | ||
Other comprehensive income, before reclassifications - Retirement benefit plans | -71 | [1] | 66 | [1] | -5 | [1] | ||
Other comprehensive income, before reclassifications - Total | -77 | [1] | 67 | [1] | -1 | [1] | ||
Amounts reclassified from accumulated other comprehensive income - Cash flow hedges | -1 | [1] | 3 | [1] | ||||
Amounts reclassified from accumulated other comprehensive income - Retirement benefit plans | 8 | [1] | 12 | [1] | ||||
Amounts reclassified from accumulated other comprehensive income - Total | $7 | [1] | $15 | [1] | ||||
[1] | All amounts are net of income taxes. Amounts in parentheses indicate debits to accumulated other comprehensive loss. |
Note_9_Equity_Details_Reclassi
Note 9 - Equity (Details) - Reclassifications Out of Accumulated Other Comprehensive Loss (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Cash flow hedges | |||||||||||||
Interest expense (interest rate contracts) | ($179,000,000) | ($170,000,000) | ($183,000,000) | ||||||||||
Total before income tax | 292,000,000 | 81,000,000 | 141,000,000 | 595,000,000 | 164,000,000 | 77,000,000 | 119,000,000 | 295,000,000 | 930,000,000 | 485,000,000 | 431,000,000 | ||
Income tax benefit | 350,000,000 | 177,000,000 | 157,000,000 | ||||||||||
Cash flow hedges net of income tax | 500,000,000 | 313,000,000 | 275,000,000 | ||||||||||
Less noncontrolling interest | 18,000,000 | 18,000,000 | 15,000,000 | ||||||||||
Net of tax | 148,000,000 | -8,000,000 | 58,000,000 | 284,000,000 | 77,000,000 | 25,000,000 | 43,000,000 | 150,000,000 | 482,000,000 | 295,000,000 | 260,000,000 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Natural Gas Derivatives [Member] | |||||||||||||
Cash flow hedges | |||||||||||||
Cost of goods sold (natural gas contracts) | 4,000,000 | [1] | -1,000,000 | [1] | |||||||||
Operation and maintenance expense (natural gas contracts) | 1,000,000 | [1] | [1] | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Contract [Member] | |||||||||||||
Cash flow hedges | |||||||||||||
Interest expense (interest rate contracts) | [1] | -3,000,000 | [1] | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||||||||||||
Cash flow hedges | |||||||||||||
Total before income tax | 5,000,000 | [1] | -4,000,000 | [1] | |||||||||
Income tax benefit | -2,000,000 | [1] | 1,000,000 | [1] | |||||||||
Cash flow hedges net of income tax | 3,000,000 | [1] | -3,000,000 | [1] | |||||||||
Less noncontrolling interest | 2,000,000 | [1] | [1] | ||||||||||
Net of tax | 1,000,000 | [1] | -3,000,000 | [1] | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||||||||||||
Cash flow hedges | |||||||||||||
Total before income tax | -13,000,000 | [1] | -20,000,000 | [1] | |||||||||
Income tax benefit | 5,000,000 | [1] | 8,000,000 | [1] | |||||||||
Net of tax | -8,000,000 | [1] | -12,000,000 | [1] | |||||||||
Retirement benefit plans | |||||||||||||
Operation and maintenance expense (actuarial losses)(2) | -15,000,000 | [1],[2] | -25,000,000 | [1],[2] | |||||||||
Operation and maintenance expense (prior service credits) (2) | 2,000,000 | [1],[2] | 5,000,000 | [1],[2] | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||||
Cash flow hedges | |||||||||||||
Net of tax | ($7,000,000) | [1] | ($15,000,000) | [1] | |||||||||
[1] | Amounts in parentheses indicate reductions to our net income and to accumulated other comprehensive loss. Except for retirement benefit plan amounts, the net income impacts are immediate. | ||||||||||||
[2] | Amortization of these accumulated other comprehensive loss components is included in the computation of net periodic benefit cost. See Note 6 for additional details about net periodic benefit cost. |
Note_10_Nonwholly_Owned_Entiti2
Note 10 - Non-wholly Owned Entities (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 |
Note 10 - Non-wholly Owned Entities (Details) [Line Items] | |||||
Payments to Acquire Property, Plant, and Equipment | $769 | $731 | $775 | ||
Payments of Ordinary Dividends, Noncontrolling Interest | 17 | 17 | 14 | ||
Proceeds from Contributions from Affiliates | 22 | ||||
Equity Method Investments | 80 | 86 | 86 | ||
Proceeds from Equity Method Investment, Dividends or Distributions | 17 | 17 | |||
South Star [Member] | AGL Resources Inc [Member] | |||||
Note 10 - Non-wholly Owned Entities (Details) [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 85.00% | ||||
South Star [Member] | Piedmont [Member] | |||||
Note 10 - Non-wholly Owned Entities (Details) [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 15.00% | 15.00% | |||
Payments of Ordinary Dividends, Noncontrolling Interest | 17 | 17 | 14 | ||
South Star [Member] | |||||
Note 10 - Non-wholly Owned Entities (Details) [Line Items] | |||||
Payments to Acquire Property, Plant, and Equipment | 7 | 3 | 1 | ||
Increase in Number of Customers | 108,000 | ||||
Proceeds from Contributions from Affiliates | 22.5 | ||||
Total Joint Venture [Member] | Sawgrass Storage [Member] | |||||
Note 10 - Non-wholly Owned Entities (Details) [Line Items] | |||||
Equity Method Investment, Other than Temporary Impairment | 16 | ||||
Net of Tax [Member] | Sawgrass Storage [Member] | |||||
Note 10 - Non-wholly Owned Entities (Details) [Line Items] | |||||
Equity Method Investment, Other than Temporary Impairment | 5 | ||||
Horizon Pipeline [Member] | |||||
Note 10 - Non-wholly Owned Entities (Details) [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Natural Gas Pipeline Length (in Miles) | 70 | ||||
Equity Method Investments | 14 | 15 | 15 | ||
Sawgrass Storage [Member] | |||||
Note 10 - Non-wholly Owned Entities (Details) [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||
Natural Gas Pipeline Capacity (in Cubic Feet) | 30,000,000,000 | ||||
Equity Method Investment, Other than Temporary Impairment | 8 | 8 | |||
PennEast Pipeline [Member] | Corporate Joint Venture [Member] | |||||
Note 10 - Non-wholly Owned Entities (Details) [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 20.00% | ||||
Natural Gas Pipeline Length (in Miles) | 108 | ||||
Natural Gas Pipeline Capacity (in Cubic Feet) | 1,000,000,000 | ||||
Natural Gas Pipeline Expansion Capacity (in Cubic Feet) | 1,200,000,000 | ||||
PennEast Pipeline [Member] | |||||
Note 10 - Non-wholly Owned Entities (Details) [Line Items] | |||||
Equity Method Investments | 1 | ||||
Atlantic Coast Pipeline [Member] | Corporate Joint Venture [Member] | |||||
Note 10 - Non-wholly Owned Entities (Details) [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 5.00% | ||||
Natural Gas Pipeline Length (in Miles) | 550 | ||||
Natural Gas Pipeline Capacity (in Cubic Feet) | 1,500,000,000 | ||||
Natural Gas Pipeline Expansion Capacity (in Cubic Feet) | 2,000,000,000 | ||||
Atlantic Coast Pipeline [Member] | |||||
Note 10 - Non-wholly Owned Entities (Details) [Line Items] | |||||
Equity Method Investments | $2 | ||||
Minimum [Member] | Nicor Gas [Member] | |||||
Note 10 - Non-wholly Owned Entities (Details) [Line Items] | |||||
Percentage of Plant Capacity | 70.00% | ||||
Maximum [Member] | Nicor Gas [Member] | |||||
Note 10 - Non-wholly Owned Entities (Details) [Line Items] | |||||
Percentage of Plant Capacity | 80.00% |
Note_10_Nonwholly_Owned_Entiti3
Note 10 - Non-wholly Owned Entities (Details) - SouthStar’s Assets and Liabilities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 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 | $2,890 | $2,895 | ||||
Goodwill and other intangible assets | 1,952 | 1,972 | ||||
Long-term assets and other deferred debits | 10,067 | 9,683 | ||||
Total assets | 14,909 | 14,550 | ||||
Current liabilities | 3,219 | 3,118 | ||||
Long-term liabilities and other deferred credits | 7,862 | 7,819 | ||||
Total liabilities | 11,081 | 10,937 | ||||
Equity | 3,828 | 3,613 | 3,391 | 3,305 | ||
Total liabilities and equity | 14,909 | 14,550 | ||||
South Star [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Current assets | 238 | [1] | 264 | [1] | ||
Goodwill and other intangible assets | 125 | [1] | 133 | [1] | ||
Long-term assets and other deferred debits | 17 | [1] | 13 | [1] | ||
Total assets | 380 | [1] | 410 | [1] | ||
Current liabilities | 71 | [1] | 95 | [1] | ||
Long-term liabilities and other deferred credits | [1] | [1] | ||||
Total liabilities | 71 | [1] | 95 | [1] | ||
Equity | 309 | [1] | 315 | [1] | ||
Total liabilities and equity | $380 | [1] | $410 | [1] | ||
South Star Percentage To Consolidated [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Current assets | 8.00% | [2] | 9.00% | [2] | ||
Goodwill and other intangible assets | 6.00% | [2] | 7.00% | [2] | ||
Long-term assets and other deferred debits | [2] | [2] | ||||
Total assets | 3.00% | [2] | 3.00% | [2] | ||
Current liabilities | 2.00% | [2] | 3.00% | [2] | ||
Long-term liabilities and other deferred credits | [2] | [2] | ||||
Total liabilities | 1.00% | [2] | 1.00% | [2] | ||
Equity | 8.00% | [2] | 9.00% | [2] | ||
Total liabilities and equity | 3.00% | [2] | 3.00% | [2] | ||
[1] | These amounts reflect information for SouthStar and exclude intercompany eliminations and the balances of our wholly owned subsidiary with an 85% ownership interest in SouthStar. | |||||
[2] | SouthStar's percentage of the amount on our Consolidated Statements of Financial Position. |
Note_10_Nonwholly_Owned_Entiti4
Note 10 - Non-wholly Owned Entities (Details) - SouthStar’s Revenues and Expenses (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Variable Interest Entity [Line Items] | |||||||||||
Operating revenues | $1,445 | $589 | $889 | $2,462 | $1,218 | $574 | $805 | $1,612 | $5,385 | $4,209 | $3,562 |
Operating income | 286 | 78 | 139 | 592 | 166 | 70 | 113 | 290 | 1,095 | 639 | 590 |
Cost of goods sold | 2,765 | 2,110 | 1,583 | ||||||||
Operation and maintenance | 939 | 887 | 816 | ||||||||
Depreciation and amortization | 380 | 397 | 394 | ||||||||
Taxes other than income taxes | 208 | 187 | 159 | ||||||||
Total operating expenses | 4,292 | 3,581 | 2,972 | ||||||||
South Star [Member] | |||||||||||
Variable Interest Entity [Line Items] | |||||||||||
Operating revenues | 866 | 687 | |||||||||
Operating income | 122 | 116 | |||||||||
Cost of goods sold | 645 | 491 | |||||||||
Operation and maintenance | 87 | 72 | |||||||||
Depreciation and amortization | 11 | 7 | |||||||||
Taxes other than income taxes | 1 | 1 | |||||||||
Total operating expenses | $744 | $571 |
Note_10_Nonwholly_Owned_Entiti5
Note 10 - Non-wholly Owned Entities (Details) - Equity Method Investments (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | $80 | $86 | ||
Triton [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | 62 | 70 | ||
Horizon Pipeline [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | 14 | 15 | ||
Other Equity Investments [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | $4 | [1] | $1 | [1] |
[1] | Includes our current investment in PennEast Pipeline of $1 million and Atlantic Coast pipeline of $2 million as of December 31, 2014. |
Note_10_Nonwholly_Owned_Entiti6
Note 10 - Non-wholly Owned Entities (Details) - Income from Equity Method Investments (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Note 10 - Non-wholly Owned Entities (Details) - Income from Equity Method Investments [Line Items] | |||
Income from Equity Method Investments | $8 | $3 | $13 |
Triton [Member] | |||
Note 10 - Non-wholly Owned Entities (Details) - Income from Equity Method Investments [Line Items] | |||
Income from Equity Method Investments | 6 | 9 | 11 |
Horizon Pipeline [Member] | |||
Note 10 - Non-wholly Owned Entities (Details) - Income from Equity Method Investments [Line Items] | |||
Income from Equity Method Investments | 2 | 2 | 2 |
Other Equity Investments [Member] | |||
Note 10 - Non-wholly Owned Entities (Details) - Income from Equity Method Investments [Line Items] | |||
Income from Equity Method Investments | ($8) |
Note_11_Commitments_Guarantees2
Note 11 - Commitments, Guarantees and Contingencies (Details) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Aug. 07, 2014 | Jun. 07, 2013 | Nov. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2009 | Dec. 31, 2013 | Feb. 28, 2012 |
ft3 | ft3 | ft3 | |||||||||
Note 11 - Commitments, Guarantees and Contingencies (Details) [Line Items] | |||||||||||
Debt Instrument, Unamortized Premium | $16 | $16 | |||||||||
Long-term Debt, Current Maturities | 200 | 200 | |||||||||
Long-term Purchase Commitment, Minimum Volume Required (in Cubic Feet) | 51,000,000,000 | ||||||||||
Long-term Purchase Commitment, Amount | 142 | ||||||||||
Interest Payable, Current | 53 | 53 | 52 | ||||||||
Natural Gas Imbalance Resolution Period | 5 years | ||||||||||
Gas Balancing Volume Amount (in Cubic Feet) | 1,150,000,000 | 4,600,000,000 | 1,150,000,000 | ||||||||
Discretionary Funds Used For Natural Gas Imbalance, Percentage | 25.00% | ||||||||||
Financial Guarantee [Member] | Tropic Equipment Leasing Inc.[Member] | |||||||||||
Note 11 - Commitments, Guarantees and Contingencies (Details) [Line Items] | |||||||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 1 | 1 | |||||||||
First Mortgage Bonds [Member] | |||||||||||
Note 11 - Commitments, Guarantees and Contingencies (Details) [Line Items] | |||||||||||
Liabilities, Fair Value Adjustment | 75 | ||||||||||
Interest Rate Swap [Member] | |||||||||||
Note 11 - Commitments, Guarantees and Contingencies (Details) [Line Items] | |||||||||||
Liabilities, Fair Value Adjustment | 5 | ||||||||||
Natural Gas Remainder [Member] | |||||||||||
Note 11 - Commitments, Guarantees and Contingencies (Details) [Line Items] | |||||||||||
Gas Balancing Volume Amount (in Cubic Feet) | 2,300,000,000 | 2,300,000,000 | |||||||||
Atlanta Gas Light [Member] | |||||||||||
Note 11 - Commitments, Guarantees and Contingencies (Details) [Line Items] | |||||||||||
Gas Balancing Volume Amount (in Cubic Feet) | 1,150,000,000 | 1,150,000,000 | |||||||||
Percent of NaturalGas Imbalance Obligated | 25.00% | ||||||||||
Illinois Commission [Member] | |||||||||||
Note 11 - Commitments, Guarantees and Contingencies (Details) [Line Items] | |||||||||||
Loss Contingency, Damages Sought, Value | 18 | 85 | |||||||||
Loss Contingency, Estimate of Possible Loss | 64 | ||||||||||
Loss Contingency, Damages Awarded, Value | 72 | 72 | |||||||||
Loss Contingency Accrual, Period Increase (Decrease) | 8 | ||||||||||
Loss Contingency Accrual | 72 | ||||||||||
Loss Contingency, Damages Paid, Value | 43 | ||||||||||
CUB [Member] | |||||||||||
Note 11 - Commitments, Guarantees and Contingencies (Details) [Line Items] | |||||||||||
Loss Contingency, Damages Sought, Value | 22 | 305 | |||||||||
IAGO [Member] | |||||||||||
Note 11 - Commitments, Guarantees and Contingencies (Details) [Line Items] | |||||||||||
Loss Contingency, Damages Sought, Value | $255 |
Note_11_Commitments_Guarantees3
Note 11 - Commitments, Guarantees and Contingencies (Details) - Recorded and Unrecorded Contractual Obligations (USD $) | Dec. 31, 2014 | |
In Millions, unless otherwise specified | ||
Recorded contractual obligations: | ||
Recorded contractual obligations | $5,295 | |
Recorded contractual obligations, 2015 | 1,462 | |
Recorded contractual obligations, 2016 | 638 | |
Recorded contractual obligations, 2017 | 77 | |
Recorded contractual obligations, 2018 | 202 | |
Recorded contractual obligations, 2019 | 387 | |
Recorded contractual obligations, 2020 & thereafter | 2,529 | |
Unrecorded contractual obligations and commitments(3) (8): | ||
Unrecorded contractual obligations and commitments | 7,343 | [1],[2] |
Unrecorded contractual obligations and commitments, 2015 | 1,078 | [1],[2] |
Unrecorded contractual obligations and commitments, 2016 | 673 | [1],[2] |
Unrecorded contractual obligations and commitments, 2017 | 459 | [1],[2] |
Unrecorded contractual obligations and commitments, 2018 | 402 | [1],[2] |
Unrecorded contractual obligations and commitments, 2019 | 383 | [1],[2] |
Unrecorded contractual obligations and commitments, 2020 & thereafter | 4,348 | [1],[2] |
Long-term Debt [Member] | ||
Recorded contractual obligations: | ||
Recorded contractual obligations | 3,706 | [3] |
Recorded contractual obligations, 2015 | 200 | [3] |
Recorded contractual obligations, 2016 | 545 | [3] |
Recorded contractual obligations, 2017 | 22 | [3] |
Recorded contractual obligations, 2018 | 155 | [3] |
Recorded contractual obligations, 2019 | 350 | [3] |
Recorded contractual obligations, 2020 & thereafter | 2,434 | [3] |
Short-term Debt [Member] | ||
Recorded contractual obligations: | ||
Recorded contractual obligations | 1,175 | |
Recorded contractual obligations, 2015 | 1,175 | |
Environmental Remediation Liabilities [Member] | ||
Recorded contractual obligations: | ||
Recorded contractual obligations | 414 | [4] |
Recorded contractual obligations, 2015 | 87 | [4] |
Recorded contractual obligations, 2016 | 93 | [4] |
Recorded contractual obligations, 2017 | 55 | [4] |
Recorded contractual obligations, 2018 | 47 | [4] |
Recorded contractual obligations, 2019 | 37 | [4] |
Recorded contractual obligations, 2020 & thereafter | 95 | [4] |
Pipeline Charges, Storage Capacity and Gas Supply [Member] | ||
Unrecorded contractual obligations and commitments(3) (8): | ||
Unrecorded contractual obligations and commitments | 4,303 | [1],[2],[5] |
Unrecorded contractual obligations and commitments, 2015 | 805 | [1],[2],[5] |
Unrecorded contractual obligations and commitments, 2016 | 457 | [1],[2],[5] |
Unrecorded contractual obligations and commitments, 2017 | 280 | [1],[2],[5] |
Unrecorded contractual obligations and commitments, 2018 | 234 | [1],[2],[5] |
Unrecorded contractual obligations and commitments, 2019 | 222 | [1],[2],[5] |
Unrecorded contractual obligations and commitments, 2020 & thereafter | 2,305 | [1],[2],[5] |
Interest Charges [Member] | ||
Unrecorded contractual obligations and commitments(3) (8): | ||
Unrecorded contractual obligations and commitments | 2,762 | [1],[2],[6] |
Unrecorded contractual obligations and commitments, 2015 | 179 | [1],[2],[6] |
Unrecorded contractual obligations and commitments, 2016 | 171 | [1],[2],[6] |
Unrecorded contractual obligations and commitments, 2017 | 147 | [1],[2],[6] |
Unrecorded contractual obligations and commitments, 2018 | 146 | [1],[2],[6] |
Unrecorded contractual obligations and commitments, 2019 | 141 | [1],[2],[6] |
Unrecorded contractual obligations and commitments, 2020 & thereafter | 1,978 | [1],[2],[6] |
Operating Leases [Member] | ||
Unrecorded contractual obligations and commitments(3) (8): | ||
Unrecorded contractual obligations and commitments | 188 | [1],[2],[7] |
Unrecorded contractual obligations and commitments, 2015 | 33 | [1],[2],[7] |
Unrecorded contractual obligations and commitments, 2016 | 31 | [1],[2],[7] |
Unrecorded contractual obligations and commitments, 2017 | 24 | [1],[2],[7] |
Unrecorded contractual obligations and commitments, 2018 | 17 | [1],[2],[7] |
Unrecorded contractual obligations and commitments, 2019 | 18 | [1],[2],[7] |
Unrecorded contractual obligations and commitments, 2020 & thereafter | 65 | [1],[2],[7] |
Asset Management Agreements [Member] | ||
Unrecorded contractual obligations and commitments(3) (8): | ||
Unrecorded contractual obligations and commitments | 32 | [1],[2],[8] |
Unrecorded contractual obligations and commitments, 2015 | 9 | [1],[2],[8] |
Unrecorded contractual obligations and commitments, 2016 | 10 | [1],[2],[8] |
Unrecorded contractual obligations and commitments, 2017 | 7 | [1],[2],[8] |
Unrecorded contractual obligations and commitments, 2018 | 4 | [1],[2],[8] |
Unrecorded contractual obligations and commitments, 2019 | 2 | [1],[2],[8] |
Unrecorded contractual obligations and commitments, 2020 & thereafter | [1],[2],[8] | |
Standby Letters of Credit, Performance and Surety Bonds [Member] | ||
Unrecorded contractual obligations and commitments(3) (8): | ||
Unrecorded contractual obligations and commitments | 50 | [1],[2] |
Unrecorded contractual obligations and commitments, 2015 | 49 | [1],[2] |
Unrecorded contractual obligations and commitments, 2016 | 1 | [1],[2] |
Unrecorded contractual obligations and commitments, 2017 | [1],[2] | |
Unrecorded contractual obligations and commitments, 2018 | [1],[2] | |
Unrecorded contractual obligations and commitments, 2019 | [1],[2] | |
Unrecorded contractual obligations and commitments, 2020 & thereafter | [1],[2] | |
Other Obligations [Member] | ||
Unrecorded contractual obligations and commitments(3) (8): | ||
Unrecorded contractual obligations and commitments | 8 | [1],[2] |
Unrecorded contractual obligations and commitments, 2015 | 3 | [1],[2] |
Unrecorded contractual obligations and commitments, 2016 | 3 | [1],[2] |
Unrecorded contractual obligations and commitments, 2017 | 1 | [1],[2] |
Unrecorded contractual obligations and commitments, 2018 | 1 | [1],[2] |
Unrecorded contractual obligations and commitments, 2019 | [1],[2] | |
Unrecorded contractual obligations and commitments, 2020 & thereafter | [1],[2] | |
[1] | In accordance with GAAP, these items are not reflected in our Consolidated Statements of Financial Position. | |
[2] | We provide guarantees to certain municipalities and other agencies and certain gas suppliers of SouthStar in support of payment obligations. | |
[3] | Excludes the $75 million step up to fair value of first mortgage bonds, $16 million unamortized debt premium and $5 million interest rate swaps fair value adjustment. Includes our current portion of long-term debt of $200 million, which matured in January 2015. | |
[4] | Includes charges recoverable through base rates or rate rider mechanisms. | |
[5] | Includes charges recoverable through a natural gas cost recovery mechanism or alternatively billed to Marketers and demand charges associated with Sequent. The gas supply balance includes amounts for Nicor Gas and SouthStar gas commodity purchase commitments of 51 Bcf at floating gas prices calculated using forward natural gas prices as of December 31, 2014, and is valued at $142 million. As we do for other subsidiaries, we provide guarantees to certain gas suppliers for SouthStar in support of payment obligations. | |
[6] | Floating rate interest charges are calculated based on the interest rate as of December 31, 2014 and the maturity date of the underlying debt instrument. As of December 31, 2014, we have $53 million of accrued interest on our Consolidated Statements of Financial Position that will be paid in 2015. | |
[7] | We have certain operating leases with provisions for step rent or escalation payments and certain lease concessions. We account for these leases by recognizing the future minimum lease payments on a straight-line basis over the respective minimum lease terms, in accordance with GAAP. However, this lease accounting treatment does not affect the future annual operating lease cash obligations as shown herein. Our operating leases are primarily for real estate. | |
[8] | Represent fixed-fee minimum payments for Sequent's affiliated asset management agreements. |
Note_12_Income_Taxes_Details
Note 12 - Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 12 - Income Taxes (Details) [Line Items] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% |
Deferred Tax Assets, Valuation Allowance | $20,000,000 | $22,000,000 | |
Unrecognized Tax Benefits | 0 | 0 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 0 | 0 | |
Related to Net Operating Losses [Member] | |||
Note 12 - Income Taxes (Details) [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | 1,000,000 | 3,000,000 | |
Related to Investment in Triton [Member] | |||
Note 12 - Income Taxes (Details) [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $19,000,000 | $19,000,000 |
Note_12_Income_Taxes_Details_I
Note 12 - Income Taxes (Details) - Income Tax Expense (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current income taxes | |||
Federal | $113 | $164 | $8 |
State | 38 | 35 | 4 |
Deferred income taxes | |||
Federal | 184 | -8 | 128 |
State | 17 | -11 | 20 |
Amortization of investment tax credits | -2 | -3 | -3 |
Total | $350 | $177 | $157 |
Note_12_Income_Taxes_Details_I1
Note 12 - Income Taxes (Details) - Income Tax Reconciliation (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Reconciliation [Abstract] | |||
Computed tax expense at statutory rate | $325 | $165 | $151 |
State income tax, net of federal income tax benefit | 36 | 20 | 19 |
Tax effect of net income attributable to the noncontrolling interest | -7 | -7 | -6 |
Amortization of investment tax credits | -2 | -3 | -3 |
Affordable housing credits | -2 | -2 | -2 |
Flexible dividend deduction | -2 | -2 | -2 |
Sale of Compass Energy | 6 | ||
Other | 2 | ||
Total income tax expense on Consolidated Statements of Income | $350 | $177 | $157 |
Note_12_Income_Taxes_Details_D
Note 12 - Income Taxes (Details) - Deferred Income Taxes (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Current accumulated deferred income tax liabilities | ||||
Mark-to-market | $33 | |||
Inventory | 26 | 18 | ||
Total current accumulated deferred income tax liabilities | 59 | 18 | ||
Current accumulated deferred income tax assets | ||||
Compensation accruals | 30 | 19 | ||
Lower of cost or market | 26 | |||
Allowance for doubtful accounts | 12 | 10 | ||
Mark-to-market | 24 | |||
Other | 21 | 16 | ||
Total current accumulated deferred income tax assets | 89 | 69 | ||
Valuation allowances (1) | -6 | [1] | -8 | [1] |
Total current accumulated deferred income tax assets, net of valuation allowance | 83 | 61 | ||
Net current accumulated deferred income tax asset | 24 | 43 | ||
Long-term accumulated deferred income tax liabilities | ||||
Property - accelerated depreciation and other property-related items | 1,801 | 1,608 | ||
Investments in partnerships | 16 | 18 | ||
Acquisition intangibles | 14 | 11 | ||
Mark-to-market | 12 | |||
Undistributed earnings of foreign subsidiaries | 26 | |||
Other | 85 | 97 | ||
Total long-term accumulated deferred income tax liabilities | 1,928 | 1,760 | ||
Long-term accumulated deferred income tax assets | ||||
Unfunded pension and retiree welfare benefit obligation | 117 | 92 | ||
Deferred investment tax credits | 6 | 7 | ||
Mark-to-market | 3 | |||
Other | 95 | 44 | ||
Total long-term accumulated deferred income tax assets | 218 | 146 | ||
Valuation allowances (1) | -14 | [1] | -14 | [1] |
Total long-term accumulated deferred income tax assets, net of valuation allowance | 204 | 132 | ||
Net long-term accumulated deferred income tax liability | $1,724 | $1,628 | ||
[1] | The total valuation allowance in 2014 and 2013 is $20 million and $22 million respectively. For 2014 the total is comprised of $1 million due to net operating losses of a former non-operating facility that are not allowed in New Jersey and $19 million related to our investment in Triton. For 2013 the total is comprised of $3 million due to net operating losses in New Jersey of a former non-operating facility that arenot allowed in New Jersey and $19 million related to our investment in Triton. New Jersey net operating losses expired in 2014, resulting in the reduction of the valuation allowance. |
Note_13_Segment_Information_De
Note 13 - Segment Information (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Note 13 - Segment Information (Details) [Line Items] | |
Number of Reportable Segments | 4 |
Distribution Operations [Member] | |
Note 13 - Segment Information (Details) [Line Items] | |
Number of States in which Entity Operates | 7 |
Note_13_Segment_Information_De1
Note 13 - Segment Information (Details) - Intersegment Reporting (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | $1,445 | $589 | $889 | $2,462 | $1,218 | $574 | $805 | $1,612 | $5,385 | $4,209 | $3,562 | |||||||||||
Operating expenses | ||||||||||||||||||||||
Cost of goods sold | 2,765 | 2,110 | 1,583 | |||||||||||||||||||
Operation and maintenance | 939 | 887 | 816 | |||||||||||||||||||
Depreciation and amortization | 380 | 397 | 394 | |||||||||||||||||||
Nicor merger expenses (4) | 20 | [1] | ||||||||||||||||||||
Taxes other than income taxes | 208 | 187 | 159 | |||||||||||||||||||
Total operating expenses | 4,292 | 3,581 | 2,972 | |||||||||||||||||||
Gain (loss) on disposition of assets | 2 | 11 | ||||||||||||||||||||
Operating income (loss) | 286 | 78 | 139 | 592 | 166 | 70 | 113 | 290 | 1,095 | 639 | 590 | |||||||||||
Other income (expense) | 14 | 16 | 24 | |||||||||||||||||||
EBIT | 1,109 | 655 | 614 | |||||||||||||||||||
Identifiable and total assets | 14,909 | 14,550 | 14,909 | 14,550 | 14,909 | 14,550 | ||||||||||||||||
Capital expenditures | 769 | 731 | 775 | |||||||||||||||||||
Intersegment Eliminations [Member] | Distribution Operations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 199 | [2] | 182 | [2] | 167 | [2] | ||||||||||||||||
Intersegment Eliminations [Member] | Retail Operations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 0 | [2] | 2 | [2] | ||||||||||||||||||
Intersegment Eliminations [Member] | Wholesale Services [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | [2],[3] | [2],[3] | [2],[3] | |||||||||||||||||||
Intersegment Eliminations [Member] | Midstream Operations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 0 | [2] | [2] | [2] | ||||||||||||||||||
Intersegment Eliminations [Member] | Other Segments [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 0 | [2] | [2] | [2] | ||||||||||||||||||
Intersegment Eliminations [Member] | Intercompany Eliminations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | -199 | -182 | -169 | |||||||||||||||||||
Intersegment Eliminations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 0 | [2] | [2] | [2] | ||||||||||||||||||
Operating Segments [Member] | Distribution Operations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 4,001 | 3,412 | 2,858 | |||||||||||||||||||
Operating Segments [Member] | Retail Operations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 994 | 858 | 735 | |||||||||||||||||||
Operating Segments [Member] | Wholesale Services [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 578 | [3] | 60 | [3] | 88 | [3] | 578 | 60 | 88 | |||||||||||||
Operating Segments [Member] | Midstream Operations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 88 | 74 | 78 | |||||||||||||||||||
Operating Segments [Member] | Other Segments [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 7 | [2] | 8 | [2] | 7 | [2] | ||||||||||||||||
Operating Segments [Member] | Intercompany Eliminations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | -283 | -203 | -204 | |||||||||||||||||||
Operating Segments [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 5,385 | 4,209 | 3,562 | |||||||||||||||||||
Distribution Operations [Member] | Continuing Operations [Member] | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Identifiable and total assets | 12,041 | [4] | 11,634 | [4] | 12,041 | [4] | 11,634 | [4] | 11,256 | [4] | 12,041 | [4] | 11,634 | [4] | 11,256 | [4] | ||||||
Distribution Operations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 3,802 | 3,230 | 2,691 | |||||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Cost of goods sold | 2,223 | 1,687 | 1,221 | |||||||||||||||||||
Operation and maintenance | 699 | 687 | 642 | |||||||||||||||||||
Depreciation and amortization | 317 | 339 | 347 | |||||||||||||||||||
Nicor merger expenses (4) | [1] | |||||||||||||||||||||
Taxes other than income taxes | 189 | 167 | 140 | |||||||||||||||||||
Total operating expenses | 3,428 | 2,880 | 2,350 | |||||||||||||||||||
Operating income (loss) | 573 | 532 | 508 | |||||||||||||||||||
Other income (expense) | 8 | 14 | 9 | |||||||||||||||||||
EBIT | 581 | 546 | 517 | |||||||||||||||||||
Capital expenditures | 715 | 684 | 649 | |||||||||||||||||||
Retail Operations [Member] | Continuing Operations [Member] | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Identifiable and total assets | 670 | [4] | 685 | [4] | 670 | [4] | 685 | [4] | 506 | [4] | 670 | [4] | 685 | [4] | 506 | [4] | ||||||
Retail Operations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 994 | 858 | 733 | |||||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Cost of goods sold | 683 | 564 | 488 | |||||||||||||||||||
Operation and maintenance | 147 | 132 | 114 | |||||||||||||||||||
Depreciation and amortization | 28 | 27 | 18 | |||||||||||||||||||
Nicor merger expenses (4) | [1] | |||||||||||||||||||||
Taxes other than income taxes | 4 | 3 | 4 | |||||||||||||||||||
Total operating expenses | 862 | 726 | 624 | |||||||||||||||||||
Operating income (loss) | 132 | 132 | 111 | |||||||||||||||||||
EBIT | 132 | 132 | 111 | |||||||||||||||||||
Capital expenditures | 11 | 9 | 8 | |||||||||||||||||||
Wholesale Services [Member] | Continuing Operations [Member] | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Identifiable and total assets | 1,402 | [3],[4] | 1,163 | [3],[4] | 1,402 | [3],[4] | 1,163 | [3],[4] | 1,218 | [3],[4] | 1,402 | [3],[4] | 1,163 | [3],[4] | 1,218 | [3],[4] | ||||||
Wholesale Services [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 578 | [3] | 60 | [3] | 88 | [3] | ||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Cost of goods sold | 77 | [3] | 21 | [3] | 38 | [3] | ||||||||||||||||
Operation and maintenance | 75 | [3] | 49 | [3] | 48 | [3] | ||||||||||||||||
Depreciation and amortization | 1 | [3] | 1 | [3] | 2 | [3] | ||||||||||||||||
Nicor merger expenses (4) | [1],[3] | |||||||||||||||||||||
Taxes other than income taxes | 3 | [3] | 3 | [3] | 4 | [3] | ||||||||||||||||
Total operating expenses | 156 | [3] | 74 | [3] | 92 | [3] | ||||||||||||||||
Gain (loss) on disposition of assets | 3 | [3] | 11 | [3] | ||||||||||||||||||
Operating income (loss) | 425 | [3] | -3 | [3] | -4 | [3] | ||||||||||||||||
Other income (expense) | -3 | [3] | [3] | 1 | [3] | |||||||||||||||||
EBIT | 422 | [3] | -3 | [3] | -3 | [3] | ||||||||||||||||
Capital expenditures | 2 | [3] | 2 | [3] | 3 | [3] | ||||||||||||||||
Midstream Operations [Member] | Continuing Operations [Member] | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Identifiable and total assets | 694 | [4] | 713 | [4] | 694 | [4] | 713 | [4] | 720 | [4] | 694 | [4] | 713 | [4] | 720 | [4] | ||||||
Midstream Operations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 88 | 74 | 78 | |||||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Cost of goods sold | 57 | 33 | 32 | |||||||||||||||||||
Operation and maintenance | 26 | 24 | 19 | |||||||||||||||||||
Depreciation and amortization | 18 | 17 | 14 | |||||||||||||||||||
Nicor merger expenses (4) | [1] | |||||||||||||||||||||
Taxes other than income taxes | 6 | 5 | 5 | |||||||||||||||||||
Total operating expenses | 107 | 79 | 70 | |||||||||||||||||||
Operating income (loss) | -19 | -5 | 8 | |||||||||||||||||||
Other income (expense) | 2 | -5 | 2 | |||||||||||||||||||
EBIT | -17 | -10 | 10 | |||||||||||||||||||
Capital expenditures | 15 | 12 | 62 | |||||||||||||||||||
Other Segments [Member] | Continuing Operations [Member] | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Identifiable and total assets | 9,723 | [2],[4] | 10,160 | [2],[4] | 9,723 | [2],[4] | 10,160 | [2],[4] | 9,848 | [2],[4] | 9,723 | [2],[4] | 10,160 | [2],[4] | 9,848 | [2],[4] | ||||||
Other Segments [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | 7 | [2] | 8 | [2] | 7 | [2] | ||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Cost of goods sold | [2] | [2] | [2] | |||||||||||||||||||
Operation and maintenance | [2] | 3 | [2] | 1 | [2] | |||||||||||||||||
Depreciation and amortization | 16 | [2] | 13 | [2] | 13 | [2] | ||||||||||||||||
Nicor merger expenses (4) | 20 | [1],[2] | ||||||||||||||||||||
Taxes other than income taxes | 6 | [2] | 9 | [2] | 6 | [2] | ||||||||||||||||
Total operating expenses | 22 | [2] | 25 | [2] | 40 | [2] | ||||||||||||||||
Gain (loss) on disposition of assets | -1 | [2] | [2] | |||||||||||||||||||
Operating income (loss) | -16 | [2] | -17 | [2] | -33 | [2] | ||||||||||||||||
Other income (expense) | 7 | [2] | 7 | [2] | 12 | [2] | ||||||||||||||||
EBIT | -9 | [2] | -10 | [2] | -21 | [2] | ||||||||||||||||
Capital expenditures | 26 | [2] | 24 | [2] | 53 | [2] | ||||||||||||||||
Intercompany Eliminations [Member] | Continuing Operations [Member] | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Identifiable and total assets | -9,621 | [4] | -10,088 | [4] | -9,621 | [4] | -10,088 | [4] | -9,769 | [4] | -9,621 | [4] | -10,088 | [4] | -9,769 | [4] | ||||||
Intercompany Eliminations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Revenues | -84 | -21 | -35 | |||||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Cost of goods sold | -275 | -195 | -196 | |||||||||||||||||||
Operation and maintenance | -8 | -8 | -8 | |||||||||||||||||||
Nicor merger expenses (4) | [1] | |||||||||||||||||||||
Total operating expenses | -283 | -203 | -204 | |||||||||||||||||||
Continuing Operations [Member] | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||
Identifiable and total assets | $14,909 | [4] | $14,267 | [4] | $14,909 | [4] | $14,267 | [4] | $13,779 | [4] | $14,909 | [4] | $14,267 | [4] | $13,779 | [4] | ||||||
[1] | Transaction expenses associated with the Nicor merger are shown separately to better compare year-over-year results. | |||||||||||||||||||||
[2] | Our other non-reportable segments now also include our investment in Triton, which was part of our cargo shipping segment that is classified as discontinued operations. For more information, see Note 14. | |||||||||||||||||||||
[3] | The revenues for wholesale services are netted with costs associated with its energy and risk management activities. A reconciliation of our operating revenues and our intercompany revenues for the years ended December 31, are shown in the following table. Wholesale services 2014 operating revenues are related to colder-than-normal weather and extreme volatility and are not indicative of future performance. | |||||||||||||||||||||
[4] | Identifiable assets are those used in each segment's operations and exclude assets held for sale. |
Note_13_Segment_Information_De2
Note 13 - Segment Information (Details) - Operating Revenues (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Revenues | $1,445 | $589 | $889 | $2,462 | $1,218 | $574 | $805 | $1,612 | $5,385 | $4,209 | $3,562 | ||||||
Third Party Gross Costs | 2,765 | 2,110 | 1,583 | ||||||||||||||
Operating Segments [Member] | Third Party Gross Revenues [Member] | Wholesale Services [Member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Revenues | 10,709 | 7,681 | 6,089 | ||||||||||||||
Operating Segments [Member] | Intercompany Revenues [Member] | Wholesale Services [Member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Revenues | 718 | 417 | 350 | ||||||||||||||
Operating Segments [Member] | Total Gross Revenues [Member] | Wholesale Services [Member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Revenues | 11,427 | 8,098 | 6,439 | ||||||||||||||
Operating Segments [Member] | Third Party Gross Costs [Member] | Wholesale Services [Member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Third Party Gross Costs | 10,849 | 8,038 | 6,351 | ||||||||||||||
Operating Segments [Member] | Wholesale Services [Member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Revenues | 578 | [1] | 60 | [1] | 88 | [1] | 578 | 60 | 88 | ||||||||
Operating Segments [Member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Revenues | 5,385 | 4,209 | 3,562 | ||||||||||||||
Wholesale Services [Member] | |||||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||||||||
Revenues | 578 | [1] | 60 | [1] | 88 | [1] | |||||||||||
Third Party Gross Costs | $77 | [1] | $21 | [1] | $38 | [1] | |||||||||||
[1] | The revenues for wholesale services are netted with costs associated with its energy and risk management activities. A reconciliation of our operating revenues and our intercompany revenues for the years ended December 31, are shown in the following table. Wholesale services 2014 operating revenues are related to colder-than-normal weather and extreme volatility and are not indicative of future performance. |
Note_14_Discontinued_Operation2
Note 14 - Discontinued Operations (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 01, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | ||||
Note 14 - Discontinued Operations (Details) [Line Items] | ||||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | ($61,000,000) | [1] | $3,000,000 | [1] | ($1,000,000) | [1] | ||||
Income Tax Expense (Benefit) | 350,000,000 | 177,000,000 | 157,000,000 | |||||||
Disposal Group, Including Discontinued Operation, Maintenance and Operations | 75,000,000 | [2] | 110,000,000 | [2] | 106,000,000 | [2] | ||||
Distributed Earnings Of Foreign Subsidiaries [Member] | Tropical Shipping [Member] | ||||||||||
Note 14 - Discontinued Operations (Details) [Line Items] | ||||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | 60,000,000 | 60,000,000 | ||||||||
Distributed Earnings Of Foreign Subsidiaries [Member] | ||||||||||
Note 14 - Discontinued Operations (Details) [Line Items] | ||||||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 86,000,000 | |||||||||
Tropical Shipping [Member] | ||||||||||
Note 14 - Discontinued Operations (Details) [Line Items] | ||||||||||
Proceeds from Divestiture of Businesses | 225,000,000 | |||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | 60,000,000 | 29,000,000 | 31,000,000 | |||||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 86,000,000 | |||||||||
Income Tax Expense (Benefit) | 0 | |||||||||
Goodwill, Impairment Loss, Net of Tax | 19,000,000 | |||||||||
Depreciation And Amortization Suspension | 7,000,000 | |||||||||
Other Non-operating Segment [Member] | ||||||||||
Note 14 - Discontinued Operations (Details) [Line Items] | ||||||||||
Disposal Group, Including Discontinued Operation, Maintenance and Operations | $1,000,000 | |||||||||
[1] | Includes $60 million that was recorded in 2014 related to the cumulative foreign earnings for which no tax liabilities had been previously recorded. | |||||||||
[2] | Includes $1 million for another business not related to Tropical Shipping that we discontinued in 2014 and was included in our "other" non-reportable segment. |
Note_14_Discontinued_Operation3
Note 14 - Discontinued Operations (Details) - Assets and Liabilities of Tropical Shipping (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $24 | $23 |
Total current assets | 283 | |
Current liabilities | ||
Total liabilities held for sale | 40 | |
Tropical Shipping [Member] | ||
Current assets | ||
Cash and cash equivalents | 24 | |
Short-term investments | 1 | |
Receivables | 36 | |
Inventories | 9 | |
Other | 1 | |
Total current assets | 71 | |
Long-term assets and other deferred debits | ||
Property, plant and equipment, net | 124 | |
Goodwill | 61 | |
Intangible assets | 19 | |
Other | 8 | |
Total long-term assets and other deferred debits | 212 | |
Total assets held for sale | 283 | |
Current liabilities | ||
Accrued expenses | 7 | |
Other accounts payable - trade | 11 | |
Other | 22 | |
Total liabilities held for sale | $40 |
Note_14_Discontinued_Operation4
Note 14 - Discontinued Operations (Details) - Discontinued Operations from Statement of Income (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Operating revenues | $243 | $365 | $342 | ||||||||||
Operating expenses | |||||||||||||
Cost of goods sold | 149 | 222 | 208 | ||||||||||
Operation and maintenance (1) | 75 | [1] | 110 | [1] | 106 | [1] | |||||||
Depreciation and amortization (2) | 5 | [2] | 19 | [2] | 22 | [2] | |||||||
Taxes other than income taxes | 5 | 6 | 6 | ||||||||||
Loss on sale and goodwill impairment (3) | -2 | -11 | |||||||||||
Total operating expenses | 262 | 357 | 342 | ||||||||||
Operating (loss) income | -19 | 8 | |||||||||||
(Loss) income before income taxes | -19 | 8 | |||||||||||
Income tax expense (4) | -61 | [3] | 3 | [3] | -1 | [3] | |||||||
(Loss) income from discontinued operations, net of tax | -31 | 1 | -50 | 4 | 1 | -1 | 1 | -80 | 5 | 1 | |||
Tropical Shipping [Member] | |||||||||||||
Operating expenses | |||||||||||||
Loss on sale and goodwill impairment (3) | 28 | [4] | [4] | [4] | |||||||||
Income tax expense (4) | $29 | $31 | $60 | ||||||||||
[1] | Includes $1 million for another business not related to Tropical Shipping that we discontinued in 2014 and was included in our "other" non-reportable segment. | ||||||||||||
[2] | We ceased depreciating and amortizing Tropical Shipping's assets on April 4, 2014, as a result of entering into an agreement to sell this business and the assets were classified as held for sale. | ||||||||||||
[3] | Includes $60 million that was recorded in 2014 related to the cumulative foreign earnings for which no tax liabilities had been previously recorded. | ||||||||||||
[4] | Primarily relates to the suspension of depreciation and amortization during 2014 totaling $7 million, and $19 million of goodwill attributable to Tropical Shipping that was impaired as of March 31, 2014, based on the negotiated sales price. |
Note_15_Selected_Quarterly_Fin2
Note 15 - Selected Quarterly Financial Data (Unaudited) (Details) - Quarterly Financial Data (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Quarterly Financial Data [Abstract] | ||||||||||||||
Operating revenues | $1,445 | $589 | $889 | $2,462 | $1,218 | $574 | $805 | $1,612 | $5,385 | $4,209 | $3,562 | |||
Operating income | 286 | 78 | 139 | 592 | 166 | 70 | 113 | 290 | 1,095 | 639 | 590 | |||
EBIT | 292 | 81 | 141 | 595 | 164 | 77 | 119 | 295 | 930 | 485 | 431 | |||
Income from continuing operations | 152 | 23 | 59 | 346 | 80 | 24 | 45 | 159 | 580 | 308 | 274 | |||
Income from continuing operations attributable to AGL Resources Inc. | 148 | 23 | 57 | 334 | 73 | 24 | 44 | 149 | 562 | 290 | 259 | |||
(Loss) income from discontinued operations, net of tax | -31 | 1 | -50 | 4 | 1 | -1 | 1 | -80 | 5 | 1 | ||||
Net income (loss) attributable to AGL Resources Inc. | $148 | ($8) | $58 | $284 | $77 | $25 | $43 | $150 | $482 | $295 | $260 | |||
Basic earnings (loss) per common share: | ||||||||||||||
Continuing operations (in Dollars per share) | $1.24 | $0.19 | $0.48 | $2.82 | $0.61 | $0.20 | $0.38 | $1.27 | $4.73 | $2.46 | $2.21 | |||
Discontinued operations (in Dollars per share) | ($0.25) | $0.01 | ($0.43) | $0.03 | $0.01 | ($0.01) | $0.01 | ($0.67) | $0.04 | $0.01 | ||||
Diluted earnings (loss) per common share: | ||||||||||||||
Continuing operations (in Dollars per share) | $1.24 | $0.19 | $0.48 | $2.81 | $0.61 | $0.20 | $0.38 | $1.26 | $4.71 | [1] | $2.45 | [1] | $2.20 | [1] |
Discontinued operations (in Dollars per share) | ($0.25) | $0.01 | ($0.43) | $0.03 | $0.01 | ($0.01) | $0.01 | ($0.67) | [1] | $0.04 | [1] | $0.01 | [1] | |
[1] | There were no outstanding stock options excluded from the computation of diluted earnings per common share attributable to AGL Resources Inc. for any of the periods presented because their effect would have been anti-dilutive, as the exercise prices were greater than the average market price. |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) - Valuation and Qualifying Accounts (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts [Member] | |||
Valuation Allowance [Line Items] | |||
Balance at beginning of period | $29 | $28 | $17 |
Charged to costs and expenses | 54 | 37 | 25 |
Charged to other accounts | 2 | 3 | |
Deductions | -50 | -36 | -17 |
Balance at end of period | 35 | 29 | 28 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation Allowance [Line Items] | |||
Balance at beginning of period | 22 | 3 | |
Charged to other accounts | 19 | ||
Deductions | -2 | ||
Balance at end of period | $20 | $22 |