Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Jan. 31, 2015 | Feb. 27, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | PIEDMONT NATURAL GAS CO INC | |
Entity Central Index Key | 78460 | |
Document Type | 10-Q | |
Document Period End Date | 31-Jan-15 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock Shares Outstanding | 78,778,900 | |
Trading Symbol | PNY |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Utility Plant: | ||||
Utility plant in service | $5,074,661 | $5,011,497 | ||
Less accumulated depreciation | 1,192,978 | 1,166,922 | ||
Utility plant in service, net | 3,881,683 | 3,844,575 | ||
Construction work in progress | 171,165 | 141,693 | ||
Plant held for future use | 3,155 | 3,155 | ||
Total utility plant, net | 4,056,003 | 3,989,423 | ||
Other Physical Property, at cost (net of accumulated depreciation of $909 in 2015 and $904 in 2014) | 349 | 355 | ||
Current Assets: | ||||
Cash and cash equivalents | 19,917 | 9,643 | ||
Trade accounts receivable (1) (less allowance for doubtful accounts of $3,968 in 2015 and $2,152 in 2014) | 224,117 | [1] | 65,260 | [1] |
Income taxes receivable | 11,020 | 36,100 | ||
Other receivables | 4,371 | 3,361 | ||
Unbilled utility revenues | 99,802 | 21,093 | ||
Inventories: | ||||
Gas in storage | 89,078 | 84,081 | ||
Materials, supplies and merchandise | 1,652 | 1,652 | ||
Gas purchase derivative assets, at fair value | 1,013 | 4,898 | ||
Regulatory assets | 12,595 | 29,088 | ||
Prepayments | 10,667 | 39,030 | ||
Deferred income taxes | 20,980 | 53,418 | ||
Other current assets | 311 | 326 | ||
Total current assets | 495,523 | 347,950 | ||
Noncurrent Assets: | ||||
Equity method investments in non-utility activities | 184,478 | 170,171 | ||
Goodwill | 48,852 | 48,852 | ||
Regulatory assets | 184,092 | 184,779 | ||
Income taxes receivable | 26,023 | 0 | ||
Marketable securities, at fair value | 4,543 | 3,727 | ||
Overfunded postretirement asset | 43,657 | 33,757 | ||
Other noncurrent assets | 5,568 | 5,239 | ||
Total noncurrent assets | 497,213 | 446,525 | ||
Total | 5,049,088 | 4,784,253 | ||
Stockholders’ equity: | ||||
Cumulative preferred stock – no par value – 175 shares authorized | 0 | 0 | ||
Common stock - no par value - shares authorized: 200,000; shares outstanding: 78,767 in 2015 and 78,531 in 2014 | 645,693 | 636,835 | ||
Retained earnings | 739,846 | 672,004 | ||
Accumulated other comprehensive loss | -1,064 | -237 | ||
Total stockholders’ equity | 1,384,475 | 1,308,602 | ||
Long-term debt | 1,424,436 | 1,424,430 | ||
Total capitalization | 2,808,911 | 2,733,032 | ||
Current Liabilities: | ||||
Short-term debt | 480,000 | 355,000 | ||
Trade accounts payable (1) | 119,930 | [1] | 85,299 | [1] |
Other accounts payable | 39,857 | 54,349 | ||
Accrued interest | 23,455 | 27,982 | ||
Customers’ deposits | 22,125 | 19,994 | ||
General taxes accrued | 10,800 | 23,828 | ||
Regulatory liabilities | 77,402 | 46,231 | ||
Other current liabilities | 9,350 | 9,303 | ||
Total current liabilities | 782,919 | 621,986 | ||
Noncurrent Liabilities: | ||||
Deferred income taxes | 830,373 | 809,467 | ||
Unamortized federal investment tax credits | 1,150 | 1,193 | ||
Accumulated provision for postretirement benefits | 15,462 | 15,471 | ||
Regulatory liabilities | 568,163 | 558,598 | ||
Conditional cost of removal obligations | 14,913 | 14,647 | ||
Other noncurrent liabilities | 27,197 | 29,859 | ||
Total noncurrent liabilities | 1,457,258 | 1,429,235 | ||
Commitments and Contingencies | ||||
Total | $5,049,088 | $4,784,253 | ||
[1] | See Note 12 for amounts attributable to affiliates. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Other Physical Property accumulated depreciation | $909 | $904 |
Allowance for doubtful accounts | $3,968 | $2,152 |
Cumulative preferred stock par value | $0 | $0 |
Cumulative preferred stock shares authorized | 175,000 | 175,000 |
Common stock par value per share | $0 | $0 |
Common stock shares authorized | 200,000,000 | 200,000,000 |
Common stock shares outstanding | 78,767,000 | 78,531,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||
Operating Revenues (1) | $607,271 | [1] | $657,733 | [1] |
Cost of Gas (1) | 337,201 | [1] | 396,221 | [1] |
Margin | 270,070 | 261,512 | ||
Operating Expenses: | ||||
Operations and maintenance | 66,150 | 60,639 | ||
Depreciation | 31,893 | 29,643 | ||
General taxes | 9,997 | 9,109 | ||
Utility income taxes | 56,272 | 59,802 | ||
Total operating expenses | 164,312 | 159,193 | ||
Operating Income | 105,758 | 102,319 | ||
Other Income (Expense): | ||||
Income from equity method investments | 8,265 | 9,941 | ||
Non-operating income | 630 | 250 | ||
Non-operating expense | -700 | -608 | ||
Income taxes | -3,264 | -3,728 | ||
Total other income (expense) | 4,931 | 5,855 | ||
Utility Interest Charges: | ||||
Interest on long-term debt | 17,489 | 15,593 | ||
Allowance for borrowed funds used during construction | -2,272 | -5,952 | ||
Other | 2,494 | 961 | ||
Total utility interest charges | 17,711 | 10,602 | ||
Net Income | 92,978 | 97,572 | ||
Other Comprehensive Income (Loss), net of tax: | ||||
Unrealized gain (loss) from hedging activities of equity method investments, net of tax of ($600) and $111 for the three months ended January 31, 2015 and 2014, respectively | -944 | 174 | ||
Reclassification adjustment of realized gain from hedging activities of equity method investments included in net income, net of tax of $75 and $88 for the three months ended January 31, 2015 and 2014, respectively | 117 | 137 | ||
Total other comprehensive income (loss) | -827 | 311 | ||
Comprehensive Income | $92,151 | $97,883 | ||
Average Shares of Common Stock: | ||||
Basic (in shares) | 78,620 | 76,988 | ||
Diluted (in shares) | 78,945 | 77,327 | ||
Earnings Per Share of Common Stock: | ||||
Basic (usd per share) | $1.18 | $1.27 | ||
Diluted (usd per share) | $1.18 | $1.26 | ||
[1] | See Note 12 for amounts attributable to affiliates. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gain (loss) from hedging activities of equity method investments arising during period tax | ($600) | $111 |
Reclassification adjustment of realized gain from hedging activities of equity investments included in net income, tax | $75 | $88 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Cash Flows from Operating Activities: | ||
Net income | $92,978 | $97,572 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 34,760 | 31,798 |
Allowance for doubtful accounts | 1,816 | 2,044 |
Income from equity method investments | -8,265 | -9,941 |
Distributions of earnings from equity method investments | 1,788 | 2,431 |
Deferred income taxes, net | 53,825 | 60,010 |
Changes in assets and liabilities: | ||
Gas purchase derivatives, at fair value | 3,885 | -4,535 |
Receivables | -240,391 | -287,945 |
Inventories | -4,997 | 7,872 |
Settlement of legal asset retirement obligations | -1,024 | -697 |
Regulatory assets | 14,561 | 49,389 |
Other assets | 28,731 | 29,309 |
Accounts payable | 31,655 | 63,207 |
Provision for postretirement benefits, net | -9,909 | -20,074 |
Regulatory liabilities | 36,369 | 30,894 |
Other liabilities | -14,183 | -2,403 |
Net cash provided by operating activities | 21,599 | 48,931 |
Cash Flows from Investing Activities: | ||
Utility capital expenditures | -104,068 | -124,999 |
Allowance for borrowed funds used during construction | -2,272 | -5,952 |
Contributions to equity method investments | -10,019 | -9,960 |
Distributions of capital from equity method investments | 837 | 2,005 |
Proceeds from sale of property | 112 | 283 |
Investments in marketable securities | -848 | -520 |
Other | 85 | 732 |
Net cash used in investing activities | -116,173 | -138,411 |
Cash Flows from Financing Activities: | ||
Net borrowings – commercial paper | 125,000 | 170,000 |
Repayment of long-term debt | 0 | -100,000 |
Expenses related to issuance of debt | -1 | -459 |
Proceeds from issuance of common stock, net of expenses | 0 | 47,302 |
Issuance of common stock through dividend reinvestment and employee stock plans | 5,106 | 4,924 |
Dividends paid | -25,168 | -24,113 |
Other | -89 | -3 |
Net cash provided by financing activities | 104,848 | 97,651 |
Net Increase in Cash and Cash Equivalents | 10,274 | 8,171 |
Cash and Cash Equivalents at Beginning of Period | 9,643 | 8,063 |
Cash and Cash Equivalents at End of Period | 19,917 | 16,234 |
Cash Paid During the Period for: | ||
Interest | 22,641 | 25,094 |
Income Taxes: | ||
Income taxes paid | 1,378 | 219 |
Income taxes refunded | 530 | 19 |
Income taxes, net | 848 | 200 |
Noncash Investing and Financing Activities: | ||
Accrued capital expenditures | $27,368 | $43,377 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, unless otherwise specified | ||||
Stockholders' Equity, beginning balance at Oct. 31, 2013 | $1,188,596 | $561,644 | $627,236 | ($284) |
Common Stock, Shares, Outstanding, Beginning Balance at Oct. 31, 2013 | 76,099 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 97,572 | 97,572 | ||
Other Comprehensive Income (Loss) | 311 | 311 | ||
Common Stock Issued | 54,349 | 54,349 | ||
Common Stock Issued (Shares) | 1,823 | |||
Tax Benefit from Dividends Paid on ESOP Shares | 29 | 29 | ||
Dividends Declared | -24,113 | -24,113 | ||
Stockholders' Equity, ending balance at Jan. 31, 2014 | 1,316,744 | 615,993 | 700,724 | 27 |
Common Stock, Shares, Outstanding, Ending Balance at Jan. 31, 2014 | 77,922 | |||
Stockholders' Equity, beginning balance at Oct. 31, 2014 | 1,308,602 | 636,835 | 672,004 | -237 |
Common Stock, Shares, Outstanding, Beginning Balance at Oct. 31, 2014 | 78,531 | 78,531 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 92,978 | 92,978 | ||
Other Comprehensive Income (Loss) | -827 | -827 | ||
Common Stock Issued | 8,995 | 8,995 | ||
Common Stock Issued (Shares) | 236 | |||
Expenses from Issuance of Common Stock | -137 | -137 | ||
Tax Benefit from Dividends Paid on ESOP Shares | 32 | 32 | ||
Dividends Declared | -25,168 | -25,168 | ||
Stockholders' Equity, ending balance at Jan. 31, 2015 | $1,384,475 | $645,693 | $739,846 | ($1,064) |
Common Stock, Shares, Outstanding, Ending Balance at Jan. 31, 2015 | 78,767 | 78,767 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) (USD $) | 3 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share | $0.32 | $0.31 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Accounting Policies [Abstract] | ||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||||
Unaudited Interim Financial Information | ||||||||
The condensed consolidated financial statements have not been audited. We have prepared the unaudited condensed consolidated financial statements under the rules of the Securities and Exchange Commission (SEC). Therefore, certain financial information and note disclosures normally included in annual financial statements prepared in conformity with generally accepted accounting principles (GAAP) in the United States of America are omitted in this interim report under these SEC rules and regulations. These financial statements should be read in conjunction with the Consolidated Financial Statements and Notes included in our Form 10-K for the year ended October 31, 2014. | ||||||||
Seasonality and Use of Estimates | ||||||||
The unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the statement of financial position at January 31, 2015 and October 31, 2014, the results of operations for three months ended January 31, 2015 and 2014, and cash flows and stockholders’ equity for the three months ended January 31, 2015 and 2014. Our business is seasonal in nature. The results of operations for the three months ended January 31, 2015 do not necessarily reflect the results to be expected for the full year. | ||||||||
In accordance with GAAP, we make certain estimates and assumptions regarding reported amounts of assets, liabilities, revenues and expenses and the related disclosures, using historical experience and other assumptions that we believe are reasonable at the time. Our estimates may involve complex situations requiring a high degree of judgment in the application and interpretation of existing literature or in the development of estimates that impact our financial statements. These estimates and assumptions affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and assumptions, which are evaluated on a continual basis. | ||||||||
Significant Accounting Policies | ||||||||
Our accounting policies are described in Note 1 to the consolidated financial statements in our Form 10-K for the year ended October 31, 2014. There were no significant changes to those accounting policies during the three months ended January 31, 2015. | ||||||||
Rate-Regulated Basis of Accounting | ||||||||
Our utility operations are subject to regulation with respect to rates, service area, accounting and various other matters by the regulatory commissions in the states in which we operate. The accounting regulations provide that rate-regulated public utilities account for and report assets and liabilities consistent with the economic effect of the manner in which independent third-party regulators establish rates. In applying these regulations, we capitalize certain costs and benefits as regulatory assets and liabilities, respectively, in order to provide for recovery from or refund to utility customers in future periods. Generally, regulatory assets are amortized to expense and regulatory liabilities are amortized to income over the period authorized by our regulators. | ||||||||
Our regulatory assets are recoverable through either base rates or rate riders specifically authorized by a state regulatory commission. Base rates are designed to provide both a recovery of cost and a return on investment during the period the rates are in effect. As such, all of our regulatory assets are subject to review by the respective state regulatory commissions during any future rate proceedings. In the event that accounting for the effects of regulation were no longer applicable, we would recognize a write-off of the regulatory assets and regulatory liabilities that would result in an adjustment to net income or accumulated other comprehensive income (loss) (OCIL). 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 rate-based regulation remains appropriate. It is our opinion that all regulatory assets are recoverable in current rates or in future rate proceedings. | ||||||||
Regulatory assets and liabilities in the Condensed Consolidated Balance Sheets as of January 31, 2015 and October 31, 2014 are as follows. | ||||||||
In thousands | January 31, | October 31, | ||||||
2015 | 2014 | |||||||
Regulatory Assets: | ||||||||
Current: | ||||||||
Unamortized debt expense | $ | 1,516 | $ | 1,490 | ||||
Amounts due from customers | 338 | 16,108 | ||||||
Environmental costs | 1,554 | 1,568 | ||||||
Deferred operations and maintenance expenses | 916 | 916 | ||||||
Deferred pipeline integrity expenses | 3,470 | 3,470 | ||||||
Deferred pension and other retirement benefit costs | 2,757 | 2,769 | ||||||
Robeson liquefied natural gas (LNG) development costs | 783 | 917 | ||||||
Other | 1,261 | 1,850 | ||||||
Total current | 12,595 | 29,088 | ||||||
Noncurrent: | ||||||||
Unamortized debt expense | 15,004 | 15,402 | ||||||
Environmental costs | 6,091 | 6,470 | ||||||
Deferred operations and maintenance expenses | 4,528 | 4,721 | ||||||
Deferred pipeline integrity expenses | 25,407 | 24,694 | ||||||
Deferred pension and other retirement benefit costs | 19,929 | 18,799 | ||||||
Amounts not yet recognized as a component of pension and other retirement benefit costs | 92,676 | 94,265 | ||||||
Regulatory cost of removal asset | 18,509 | 18,275 | ||||||
Robeson LNG development costs | 413 | 509 | ||||||
Other | 1,535 | 1,644 | ||||||
Total noncurrent | 184,092 | 184,779 | ||||||
Total | $ | 196,687 | $ | 213,867 | ||||
Regulatory Liabilities: | ||||||||
Current: | ||||||||
Amounts due to customers | $ | 77,402 | $ | 46,231 | ||||
Noncurrent: | ||||||||
Regulatory cost of removal obligations | 510,940 | 506,574 | ||||||
Deferred income taxes | 57,131 | 51,930 | ||||||
Amounts not yet recognized as a component of pension and other retirement benefit costs | 92 | 94 | ||||||
Total noncurrent | 568,163 | 558,598 | ||||||
Total | $ | 645,565 | $ | 604,829 | ||||
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 in the Condensed Consolidated Balance Sheets are cash and cash equivalents, marketable securities held in rabbi trusts established for our deferred compensation plans and derivative assets and liabilities, if any, that are held for our utility operations. The carrying values of receivables, short-term debt, accounts payable, accrued interest and other current assets and liabilities approximate fair value as all amounts reported are to be collected or paid within one year. Our nonfinancial assets and liabilities include our qualified pension and postretirement plan assets and liabilities that are recorded at fair value in the Condensed Consolidated Balance Sheets in accordance with employers’ accounting and related disclosures of postretirement plans. | ||||||||
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, or exit date. 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 fair value measurements and endeavor 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. The fair value of our financial assets and liabilities are subject to potentially significant volatility based on changes in market prices, the portfolio valuation of our contracts, as well as the maturity and settlement of those contracts, and subsequent newly originated transactions, each of which directly affects the estimated fair value of our financial instruments. We are able to classify fair value balances based on the observance of those inputs at the lowest level that is significant to the fair value measurement, in its entirety, in the fair value hierarchy levels as set forth in the fair value guidance. | ||||||||
For the fair value measurements of our derivatives and marketable securities, see Note 8 to the condensed consolidated financial statements in this Form 10-Q. For the fair value measurements of our benefit plan assets, see Note 9 to the consolidated financial statements in our Form 10-K for the year ended October 31, 2014. For further information on our fair value methodologies, see “Fair Value Measurements” in Note 1 to the consolidated financial statements in our Form 10-K for the year ended October 31, 2014. There were no significant changes to these fair value methodologies during the three months ended January 31, 2015. | ||||||||
Accounting Guidance Adopted in First Quarter Fiscal Year 2015 | ||||||||
Guidance | Description | Effective date | Effect on the financial statements or other significant matters | |||||
ASU 2013-11, July 2013, Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (Topic740) | The guidance provides that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except under certain circumstances outlined in the update. | Annual periods beginning after December 15, 2013, and interim periods within those periods, with early adoption permitted. We adopted the guidance effective November 1, 2014. | The adoption had no impact on our financial position, results of operations or cash flows. | |||||
Recently Issued Accounting Guidance | ||||||||
Guidance | Description | Effective date | Effect on the financial statements or other significant matters | |||||
ASU 2014-09, May 2014, Revenue from Contracts with Customers (Topic 606) | Under the new standard, entities will recognize revenue to depict the transfer of goods and services to customers in amounts that reflect the payment to which the entity expects to be entitled in exchange for those goods or services. The disclosure requirements will provide information about the nature, amount, timing and uncertainty of revenue and cash flows from an entity’s contracts with customers. | Annual periods beginning after December 15, 2016, and interim periods within those periods. The Financial Accounting Standards Board (FASB) is considering a possible deferral of the effective date in the second quarter of 2015. | We are currently evaluating the effect on our financial position, results of operations and cash flows. The evaluation includes identifying revenue streams by like contracts to allow for ease of implementation. In our evaluation, we are following the efforts of an accounting utility subgroup and its issuance of a revenue implementation guide. | |||||
ASU 2014-15, August 2014, Presentation of Financial Statements - Going Concern (Subtopic 205-40) | The FASB issued accounting guidance on determining when and how reporting entities must disclose going concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. An entity must provide certain disclosures if there is a "substantial doubt about the entity's ability to continue as a going concern." | Annual periods ending after December 15, 2016, and interim and annual periods thereafter; early adoption is permitted. | The adoption of this guidance will have no impact on our financial position, results of operations or cash flows. It will require establishing a going concern assessment process to meet the standard. | |||||
ASU 2015-01, January 2015, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20) | The FASB issued accounting guidance eliminating the concept of extraordinary items, thus eliminating the need to assess whether a particular event or transaction event is extraordinary. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring, with the amendments being applicable either prospectively or retrospectively, to all prior periods presented in the financial statements. | Annual periods ending after December 15, 2015, and interim periods within those periods, with early adoption permitted, provided that the guidance is applied from the beginning of the fiscal year of adoption. | The adoption of this guidance will be applied on a prospective basis. We have not had any extraordinary or unusual items that would impact our financial position, results of operations or cash flows. |
Regulatory_Matters
Regulatory Matters | 3 Months Ended |
Jan. 31, 2015 | |
Public Utilities, General Disclosures [Abstract] | |
Regulatory Matters | Regulatory Matters |
North Carolina | |
In December 2014, we filed a petition with the North Carolina Utilities Commission (NCUC) seeking authority to collect through adjusted rates an additional $26.6 million in annual integrity management rider (IMR) margin revenues effective February 2015 based on $241.9 million of capital investments in integrity and safety projects over the twelve-month period ended October 31, 2014. In January 2015, the NCUC issued an order authorizing the requested IMR rate adjustments, subject to further review and determination of the reasonableness and prudence of the capital investments and associated costs reflected in the adjustments in our annual IMR adjustment proceedings or next general rate case, with any adjustments to be implemented through a prospective rate adjustment at or after the time such adjustment is approved by the NCUC. | |
South Carolina | |
In June 2014, we filed with the Public Service Commission of South Carolina (PSCSC) a quarterly monitoring report for the twelve months ended March 31, 2014 and a cost revenue study under the Rate Stabilization Act requesting a change in our rates from those approved by the PSCSC in its October 2013 order. In October 2014, the PSCSC issued an order approving a settlement agreement between the Office of Regulatory Staff and us that resulted in a $2.9 million annual decrease in margin based on a stipulated allowed return on equity of 10.2%, effective November 1, 2014. Also in this proceeding, the PSCSC approved the recovery of $.1 million of our deferred South Carolina environmental costs and $.5 million of certain non-real estate costs associated with the initial development of the Robeson County LNG facility located in North Carolina, both with amortization periods of one year beginning November 2014 and ending October 2015. | |
Tennessee | |
In August 2013, we filed an Actual Cost Adjustment (ACA) petition with the Tennessee Regulatory Authority (TRA) to authorize us to make an adjustment to the deferred gas cost account for prior periods to recover a $3.7 million under collection. In November 2014, we filed a joint settlement agreement with the TRA staff and the Tennessee Attorney General's Consumer Advocate and Protection Division in which the parties agreed that we may include in our next ACA filing prior period adjustments totaling $2 million in lieu of the $3.7 million as originally petitioned. In September 2014, we recorded as expense $1.7 million in the Condensed Consolidated Statements of Comprehensive Income. In December 2014, the TRA approved the settlement agreement, and we included the stipulated $2 million of prior period adjustments in the ACA annual report filed in December 2014 for the twelve-month period ended June 30, 2013. In January 2015, the TRA issued its written order accepting and approving the settlement agreement. | |
In February 2014, we filed a petition with the TRA to authorize us to amortize and refund $4.7 million to customers for recorded excess deferred taxes. We proposed to refund this amount to customers over three years. We are waiting on a ruling from the TRA at this time. | |
In August 2014, we filed an annual report with the TRA reflecting the shared gas cost savings from gains and losses derived from gas purchase benchmarking and secondary market transactions for the twelve months ended June 30, 2014 under the Tennessee Incentive Plan (TIP). We are waiting on a ruling from the TRA at this time. | |
In September 2014, we filed a petition with the TRA seeking authority to implement a compressed natural gas (CNG) infrastructure rider to recover the costs of our capital investments in infrastructure and equipment associated with this alternative motor vehicle transportation fuel. We proposed that the tariff rider be effective October 1, 2014 with an initial rate adjustment on November 1, 2014 based on capital expenditures incurred through June 2014 and for rates to be updated annually outside of general rate cases for the return of and on these capital investments. In November 2014, the TRA consolidated this docket with a separate petition we filed seeking modifications to our tariff regarding service to customers using natural gas as a motor fuel. A hearing on this matter was held in January 2015. In February 2015, the TRA (1) denied approval of the proposed tariff rider, (2) ruled that our retail CNG motor fuel service should be unregulated and no longer provided under our regulated tariff, and (3) approved the proposed modification to our tariff providing natural gas for motor fuel purposes at customer premises. The TRA indicated that we may seek recovery of our prior investments in CNG equipment of $4.7 million since our last rate proceeding in utility rate base in our next general rate case proceeding as the investments were made in good faith under the assumption retail CNG motor fuel would be a regulated service. We are waiting on the TRA's written order. | |
In December 2014, we filed a petition with the TRA seeking authority to collect through adjusted rates an additional $6.5 million in annual IMR margin revenues effective January 2015 based on $54 million of capital investments in integrity and safety projects over the twelve-month period ended October 31, 2014. In January 2015, the TRA accepted and approved the requested IMR rate adjustment and issued its written order in February 2015. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | Earnings per Share | |||||||
We compute basic earnings per share (EPS) using the daily weighted average number of shares of common stock outstanding during each period. In the calculation of fully diluted EPS, shares of common stock to be issued under approved incentive compensation plans are contingently issuable shares, as determined by applying the treasury stock method, and are added to average common shares outstanding, resulting in a potential reduction in diluted EPS. | ||||||||
A reconciliation of basic and diluted EPS, which includes contingently issuable shares that could affect EPS if performance units ultimately vest, for the three months ended January 31, 2015 and 2014 is presented below. | ||||||||
Three Months | ||||||||
In thousands, except per share amounts | 2015 | 2014 | ||||||
Net Income | $ | 92,978 | $ | 97,572 | ||||
Average shares of common stock outstanding for basic earnings per share | 78,620 | 76,988 | ||||||
Contingently issuable shares under incentive compensation plans | 325 | 339 | ||||||
Average shares of dilutive stock | 78,945 | 77,327 | ||||||
Earnings Per Share of Common Stock: | ||||||||
Basic | $ | 1.18 | $ | 1.27 | ||||
Diluted | $ | 1.18 | $ | 1.26 | ||||
Long_Term_Debt_Instruments
Long Term Debt Instruments | 3 Months Ended |
Jan. 31, 2015 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term Debt [Text Block] | Long-Term Debt Instruments |
In June 2014, we filed a combined debt and equity shelf registration statement with the SEC that became effective on June 6, 2014. The NCUC has approved debt and equity issuances under this shelf registration statement up to $1 billion during its three-year life. As of January 31, 2015, we have $750 million remaining for debt and equity issuances as approved by the NCUC. Unless otherwise specified at the time such securities are offered for sale, the net proceeds from the sale of the securities will be used to finance capital expenditures, to repay outstanding short-term, unsecured notes under our commercial paper (CP) program, to refinance other indebtedness, to repurchase our common stock, to pay dividends and for general corporate purposes. | |
We are subject to default provisions related to our long-term debt and short-term borrowings. Failure to satisfy any of the default provisions may result in total outstanding issues of debt becoming due. There are cross default provisions in all of our debt agreements. |
Short_Term_Debt_Instruments
Short Term Debt Instruments | 3 Months Ended | |||
Jan. 31, 2015 | ||||
Line of Credit Facility [Abstract] | ||||
Short-Term Debt Instruments | Short-Term Debt Instruments | |||
We have an $850 million five-year revolving syndicated credit facility that expires on October 1, 2017. We pay an annual fee of $35,000 plus 8.5 basis points for any unused amount. The facility provides a line of credit for letters of credit of $10 million of which $1.7 million and $1.8 million were issued and outstanding as of January 31, 2015 and October 31, 2014, respectively. These letters of credit are used to guarantee claims from self-insurance under our general and automobile liability policies. The credit facility bears interest based on the 30-day London Interbank Offered Rate (LIBOR) plus from 75 to 125 basis points, based on our credit ratings. Amounts borrowed are continuously renewable until the expiration of the facility in 2017, provided that we are in compliance with all terms of the agreement. | ||||
We have an $850 million unsecured CP program that is backstopped by the revolving syndicated credit facility. The amounts outstanding under the revolving syndicated credit facility and the CP program, either individually or in the aggregate, cannot exceed $850 million. The notes issued under the CP program may have maturities not to exceed 397 days from the date of issuance and bear interest based on, among other things, the size and maturity date of the note, the frequency of the issuance and our credit ratings, plus a spread of 5 basis points. Any borrowings under the CP program rank equally with our other unsecured debt. The notes under the CP program are not registered and are offered and issued pursuant to an exemption from registration. Due to the seasonal nature of our business, amounts borrowed can vary significantly during the period. | ||||
As of January 31, 2015, we had $480 million of notes outstanding under the CP program, as included in “Short-term debt” in “Current Liabilities” in the Condensed Consolidated Balance Sheets, with original maturities ranging from 14 to 21 days from their dates of issuance at a weighted average interest rate of .21%. As of October 31, 2014, our outstanding notes under the CP program, included in the Condensed Consolidated Balance Sheets as stated above, were $355 million at a weighted average interest rate of .17%. | ||||
We did not have any borrowings under the revolving syndicated credit facility for the three months ended January 31, 2015. A summary of the short-term debt activity under our CP program for the three months ended January 31, 2015 is as follows. | ||||
In millions | Three Months | |||
Minimum amount outstanding during period | $ | 355 | ||
Maximum amount outstanding during period | $ | 580 | ||
Minimum interest rate during period | 0.15 | % | ||
Maximum interest rate during period | 0.3 | % | ||
Weighted average interest rate during period | 0.21 | % | ||
Our five-year revolving syndicated credit facility’s financial covenants require us to maintain a ratio of total debt to total capitalization of no greater than 70%, and our actual ratio was 58% at January 31, 2015. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | |||||||||
Jan. 31, 2015 | ||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||
Stockholders' Equity | Stockholders’ Equity | |||||||||
Capital Stock | ||||||||||
Changes in common stock for the three months ended January 31, 2015 are as follows. | ||||||||||
In thousands | Shares | Amount | ||||||||
Balance, October 31, 2014 | 78,531 | $ | 636,835 | |||||||
Issued to participants in the Employee Stock Purchase Plan (ESPP) | 7 | 279 | ||||||||
Issued to participants in the Dividend Reinvestment and Stock Purchase Plan | 126 | 4,781 | ||||||||
Issued to participants in the Incentive Compensation Plan (ICP) | 103 | 3,935 | ||||||||
Costs from issuance of common stock | (137 | ) | ||||||||
Balance, January 31, 2015 | 78,767 | $ | 645,693 | |||||||
Under our effective combined debt and equity shelf registration statement, we established an at-the-market (ATM) equity sales program, including a forward sale component. On January 7, 2015, we entered into separate ATM Equity Offering Sales Agreements (Sales Agreements) with Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities LLC, in their capacity as agents and/or as principals (Agents). Under the terms of the Sales Agreements, we may issue and sell, through either of the Agents, shares of our common stock, up to an aggregate sales price of $170 million (subject to certain exceptions) during the period ending October 31, 2016. | ||||||||||
In addition to the issuance and sale of shares by us through the Agents, we may also enter into forward sale agreements (FSAs) with affiliates of the Agents as Forward Purchasers. In connection with each FSA, the Forward Purchasers will, at our request, borrow from third parties and, through the Agents, sell a number of shares of our common stock equal to the number of shares underlying the FSA as its hedge. | ||||||||||
Under the Sales Agreements, we specify the maximum number of our shares to be sold and the minimum price per share. We will pay each Agent (or, in the case of a FSA, the Forward Purchaser through a reduced initial forward sale price) a commission of 1.5% of the sales price of all shares sold through it as sales agent under the applicable Sales Agreement. The shares offered under the Sales Agreements may be offered, issued and sold in ATM sales through the Agents or offered in connection with one or more FSAs. There were no transactions under the ATM program in the first quarter of 2015. | ||||||||||
Cash dividends paid per share of common stock for the three months ended January 31, 2015 and 2014 are as follows. | ||||||||||
Three Months | ||||||||||
2015 | 2014 | |||||||||
Cash dividends paid per share of common stock | $ | 0.32 | $ | 0.31 | ||||||
Other Comprehensive Income (Loss) | ||||||||||
Our OCIL is a part of our accumulated OCIL and is comprised of hedging activities from our equity method investments. For further information on these hedging activities by our equity method investments, see Note 12 to the condensed consolidated financial statements in this Form 10-Q. Beginning in July 2014, another component of our accumulated OCIL is the allocation of retirement benefits to SouthStar Energy Services, LLC (SouthStar) by its majority member. Changes in each component of accumulated OCIL are presented below for the three months ended January 31, 2015 and 2014. | ||||||||||
Changes in Accumulated OCIL(1) | ||||||||||
Three Months | ||||||||||
In thousands | 2015 | 2014 | ||||||||
Accumulated OCIL beginning balance, net of tax | $ | (237 | ) | $ | (284 | ) | ||||
Hedging activities of equity method investments: | ||||||||||
OCIL before reclassifications, net of tax | (944 | ) | 174 | |||||||
Amounts reclassified from accumulated OCIL, net of tax | 117 | 137 | ||||||||
Total current period activity of hedging activities of equity method investments, net of tax | (827 | ) | 311 | |||||||
Net current period benefit activities of equity method investments, net of tax | — | |||||||||
Accumulated OCIL ending balance, net of tax | $ | (1,064 | ) | $ | 27 | |||||
(1) Amounts in parentheses indicate debits to accumulated OCIL. | ||||||||||
A reconciliation of the effect on certain line items of net income on amounts reclassified out of each component of accumulated OCIL is presented below for the three months ended January 31, 2015 and 2014. | ||||||||||
Reclassification Out of | Affected Line Items on Condensed | |||||||||
Accumulated OCIL (1) | Statements of Operations and Comprehensive Income | |||||||||
Three Months | ||||||||||
In thousands | 2015 | 2014 | ||||||||
Hedging activities of equity method investments | $ | 192 | $ | 225 | Income from equity method investments | |||||
Income tax expense | (75 | ) | (88 | ) | Income taxes | |||||
Hedging activities of equity method investments | 117 | 137 | ||||||||
Net benefit activities of equity method investments | — | Income from equity method investments | ||||||||
Income tax expense | — | Income taxes | ||||||||
Net benefit activities of equity method investments | — | |||||||||
Total reclassification for the period, net of tax | $ | 117 | $ | 137 | ||||||
(1) Amounts in parentheses indicate debits to accumulated OCIL. |
Marketable_Securities
Marketable Securities | 3 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Marketable Securities [Abstract] | ||||||||||||||||
Marketable Securities | Marketable Securities | |||||||||||||||
We have marketable securities that are invested in money market and mutual funds that are liquid and actively traded on the exchanges. These securities are assets that are held in rabbi trusts established for our deferred compensation plans. For further information on the deferred compensation plans, see Note 10 to the condensed consolidated financial statements in this Form 10-Q. | ||||||||||||||||
We have classified these marketable securities as trading securities since their inception as the assets are held in rabbi trusts. Trading securities are recorded at fair value on the Condensed Consolidated Balance Sheets with any gains or losses recognized currently in earnings. We do not intend to engage in active trading of the securities, and participants in the deferred compensation plans may redirect their deemed investments at any time. We have matched the current portion of the deferred compensation liability with the current asset and the noncurrent deferred compensation liability with the noncurrent asset; the current asset portion is included in “Other current assets” in “Current Assets” in the Condensed Consolidated Balance Sheets. | ||||||||||||||||
The money market investments in the trusts approximate fair value due to the short period of time to maturity. The fair values of the equity securities are based on quoted market prices as traded on the exchanges. The composition of these securities as of January 31, 2015 and October 31, 2014 is as follows. | ||||||||||||||||
31-Jan-15 | 31-Oct-14 | |||||||||||||||
In thousands | Cost | Fair | Cost | Fair | ||||||||||||
Value | Value | |||||||||||||||
Current trading securities: | ||||||||||||||||
Money markets | $ | 45 | $ | 45 | $ | 22 | $ | 22 | ||||||||
Mutual funds | 91 | 153 | 106 | 192 | ||||||||||||
Total current trading securities | 136 | 198 | 128 | 214 | ||||||||||||
Noncurrent trading securities: | ||||||||||||||||
Money markets | 479 | 479 | 447 | 447 | ||||||||||||
Mutual funds | 3,599 | 4,064 | 2,598 | 3,280 | ||||||||||||
Total noncurrent trading securities | 4,078 | 4,543 | 3,045 | 3,727 | ||||||||||||
Total trading securities | $ | 4,214 | $ | 4,741 | $ | 3,173 | $ | 3,941 | ||||||||
Financial_Instruments_Related_
Financial Instruments & Related Fair Value | 3 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||
Financial Instruments And Related Fair Value [Abstract] | ||||||||||||||||||||
Financial Instruments and Related Fair Value | Financial Instruments and Related Fair Value | |||||||||||||||||||
Derivative Assets and Liabilities under Master Netting Arrangements | ||||||||||||||||||||
We maintain brokerage accounts to facilitate transactions that support our gas cost hedging plans. The accounting guidance related to derivatives and hedging requires that we use a gross presentation, based on our election, for the fair value amounts of our derivative instruments. We use long position gas purchase options to provide some level of protection for our customers in the event of significant commodity price increases. As of January 31, 2015 and October 31, 2014, we had long gas purchase options providing total coverage of 30.3 million dekatherms and 29.2 million dekatherms, respectively. The long gas purchase options held at January 31, 2015 are for the period from March 2015 through January 2016. | ||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
We use financial instruments that are not designated as hedges for accounting purposes to mitigate commodity price risk for our customers. We also have marketable securities that are held in rabbi trusts established for certain of our deferred compensation plans. We classify fair value balances based on the observance of inputs into the fair value hierarchy levels as set forth in the fair value accounting guidance and fully described in “Fair Value Measurements” in Note 1 to the consolidated financial statements in our Form 10-K for the year ended October 31, 2014. | ||||||||||||||||||||
The following table sets forth, by level of the fair value hierarchy, our financial assets that were accounted for at fair value on a recurring basis as of January 31, 2015 and October 31, 2014. 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 consideration within the fair value hierarchy levels. We have had no transfers between any level during the three months ended January 31, 2015 and 2014. We present our derivative positions at fair value on a gross basis and have only asset positions for all periods presented for the fair value of purchased call options held for our utility operations. There are no derivative contracts in a liability position, and we have posted no cash collateral nor received any cash collateral under our master netting arrangements. Therefore, we have no offsetting disclosures for financial assets or liabilities for our derivatives held for utility operations. Our derivatives held for utility operations are held with one broker as our counterparty. | ||||||||||||||||||||
Recurring Fair Value Measurements as of January 31, 2015 | ||||||||||||||||||||
In thousands | Quoted Prices | Significant | Significant | Effects of | Total | |||||||||||||||
in Active | Other | Unobservable | Netting and | Carrying | ||||||||||||||||
Markets | Observable | Inputs | Cash Collateral | Value | ||||||||||||||||
(Level 1) | Inputs | (Level 3) | Receivables / | |||||||||||||||||
(Level 2) | Payables | |||||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives held for utility operations | $ | 1,013 | $ | — | $ | — | $ | — | $ | 1,013 | ||||||||||
Debt and equity securities held as trading securities: | ||||||||||||||||||||
Money markets | 524 | — | — | — | 524 | |||||||||||||||
Mutual funds | 4,217 | — | — | — | 4,217 | |||||||||||||||
Total fair value assets | $ | 5,754 | $ | — | $ | — | $ | — | $ | 5,754 | ||||||||||
Recurring Fair Value Measurements as of October 31, 2014 | ||||||||||||||||||||
In thousands | Quoted Prices | Significant | Significant | Effects of | Total | |||||||||||||||
in Active | Other | Unobservable | Netting and | Carrying | ||||||||||||||||
Markets | Observable | Inputs | Cash Collateral | Value | ||||||||||||||||
(Level 1) | Inputs | (Level 3) | Receivables / | |||||||||||||||||
(Level 2) | Payables | |||||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives held for utility operations | $ | 4,898 | $ | — | $ | — | $ | — | $ | 4,898 | ||||||||||
Debt and equity securities held as trading securities: | ||||||||||||||||||||
Money markets | 469 | — | — | — | 469 | |||||||||||||||
Mutual funds | 3,472 | — | — | — | 3,472 | |||||||||||||||
Total fair value assets | $ | 8,839 | $ | — | $ | — | $ | — | $ | 8,839 | ||||||||||
Our regulated utility segment derivative instruments are used in accordance with programs filed with or approved by the NCUC, the PSCSC and the TRA to hedge the impact of market fluctuations in natural gas prices. These derivative instruments are accounted for at fair value each reporting period. In accordance with regulatory requirements, the net gains and losses related to these derivatives are reflected in purchased gas costs and ultimately passed through to customers through our purchase gas adjustment (PGA) procedures. In accordance with accounting provisions for rate-regulated activities, the unrecovered amounts related to these instruments are reflected as a regulatory asset or liability, as appropriate, in “Amounts due from customers” or “Amounts due to customers” in Note 1 to the condensed consolidated financial statements. These derivative instruments are exchange-traded derivative contracts. Exchange-traded contracts are generally based on unadjusted quoted prices in active markets and are classified within Level 1. | ||||||||||||||||||||
Trading securities include assets in rabbi trusts established for our deferred compensation plans and are included in “Marketable securities, at fair value” in “Noncurrent Assets” in the Condensed Consolidated Balance Sheets. Securities classified within Level 1 include funds held in money market and mutual funds which are highly liquid and are actively traded on the exchanges. | ||||||||||||||||||||
Our long-term debt is recorded at unamortized cost. In developing the fair value of our long-term debt, we use a discounted cash flow technique, consistently applied, that incorporates a developed discount rate using long-term debt similarly rated by credit rating agencies combined with the U.S. Treasury benchmark, with consideration given to maturities, redemption terms and credit ratings similar to our debt issuances. The carrying amount and fair value of our long-term debt, including the current portion, which is classified within Level 2, are shown below. | ||||||||||||||||||||
In thousands | Carrying | Fair Value | ||||||||||||||||||
Amount (1) | ||||||||||||||||||||
As of January 31, 2015 | $ | 1,425,000 | $ | 1,711,196 | ||||||||||||||||
As of October 31, 2014 | 1,425,000 | 1,617,453 | ||||||||||||||||||
(1) Excludes discount on issuance of notes of $564 and $570 as of January 31, 2015 and October 31, 2014, respectively. | ||||||||||||||||||||
Quantitative and Qualitative Disclosures | ||||||||||||||||||||
The costs of our financial price hedging options for natural gas and all other costs related to hedging activities of our regulated gas costs are recorded in accordance with our regulatory tariffs approved by our state regulatory commissions, and thus are not accounted for as designated hedging instruments under derivative accounting standards. As required by the accounting guidance, the fair value of our financial options is presented on a gross basis with only asset positions for all periods presented. There are no derivative contracts in a liability position, and we have posted no cash collateral nor received any cash collateral under our master netting arrangements; therefore, we have no offsetting disclosures for financial assets or liabilities for our financial option derivatives. | ||||||||||||||||||||
The following table presents the fair value and balance sheet classification of our financial options for natural gas as of January 31, 2015 and October 31, 2014. | ||||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||
January 31, | October 31, | |||||||||||||||||||
In thousands | 2015 | 2014 | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments under Derivative Accounting Standards: | ||||||||||||||||||||
Asset Financial Instruments: | ||||||||||||||||||||
Current Assets – Gas purchase derivative assets (March 2015 - January 2016) | $ | 1,013 | ||||||||||||||||||
Current Assets – Gas purchase derivative assets (December 2014 - November 2015) | $ | 4,898 | ||||||||||||||||||
We purchase natural gas for our regulated operations for resale under tariffs approved by state regulatory commissions. We recover the cost of gas purchased for regulated operations through PGA procedures. Our risk management policies allow us to use financial instruments to hedge commodity price risks, but not for speculative trading. The strategy and objective of our hedging programs are to use these financial instruments to reduce gas cost volatility for our customers. Accordingly, the operation of the hedging programs on the regulated utility segment as a result of the use of these financial derivatives is initially deferred as amounts due from customers included as “Regulatory Assets” or amounts due to customers included as “Regulatory Liabilities” in Note 1 to the condensed consolidated financial statements and recognized in the Condensed Consolidated Statements of Comprehensive Income as a component of “Cost of Gas” when the related costs are recovered through our rates. | ||||||||||||||||||||
The following table presents the impact that financial instruments not designated as hedging instruments under derivative accounting standards would have had on the Condensed Consolidated Statements of Comprehensive Income for the three months ended January 31, 2015 and 2014, absent the regulatory treatment under our approved PGA procedures. | ||||||||||||||||||||
Amount of Gain (Loss)Recognized | Amount of Gain (Loss) Deferred Under PGA Procedures | Location of Gain (Loss) | ||||||||||||||||||
on Derivative Instruments | Recognized through | |||||||||||||||||||
PGA Procedures | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
January 31 | January 31 | |||||||||||||||||||
In thousands | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Gas purchase options | $ | (558 | ) | $ | 4,529 | $ | (558 | ) | $ | 4,529 | Cost of Gas | |||||||||
In Tennessee, the cost of gas purchase options and all other costs related to hedging activities up to 1% of total annual gas costs are approved for recovery under the terms and conditions of our TIP as approved by the TRA. In South Carolina, the costs of gas purchase options are subject to and are approved for recovery under the terms and conditions of our gas hedging plan as approved by the PSCSC. In North Carolina, the costs associated with our hedging program are treated as gas costs subject to an annual cost review proceeding by the NCUC. | ||||||||||||||||||||
Credit and Counterparty Risk | ||||||||||||||||||||
We are exposed to credit risk as a result of transactions for the purchase and sale of natural gas and related products and services and management agreements of our transportation capacity, storage capacity and supply contracts with major companies in the energy industry and within our utility operations serving industrial, commercial, power generation, residential and municipal energy consumers. These transactions principally occur in the eastern, gulf coast and mid-west regions of the United States. We believe that this geographic concentration does not contribute significantly to our overall exposure to credit risk. Credit risk associated with trade accounts receivable for the natural gas distribution segment is mitigated by the large number of individual customers and diversity in our customer base. | ||||||||||||||||||||
We enter into contracts with third parties to buy and sell natural gas. A significant portion of these transactions are with, or are associated with, energy producers, utility companies, off-system municipalities and natural gas marketers. The amount included in “Trade accounts receivable” in “Current Assets” in the Condensed Consolidated Balance Sheets attributable to these entities amounted to $32.6 million, or approximately 14%, of our gross trade accounts receivable at January 31, 2015. Our policy requires counterparties to have an investment-grade credit rating at the time of the contract, or in situations where counterparties do not have investment-grade or functionally equivalent credit ratings, our policy requires credit enhancements that include letters of credit or parental guaranties. In either circumstance, our policy specifies limits on the contract amount and duration based on the counterparty’s credit rating and/or credit support. In order to minimize our exposure, we continually re-evaluate third-party creditworthiness and market conditions and modify our requirements accordingly. | ||||||||||||||||||||
We also enter into contracts with third parties to manage some of our supply and capacity assets for the purpose of maximizing their value. These arrangements include a counterparty credit evaluation according to our policy described above prior to contract execution and typically have durations of one to three years. In the event that a party is unable to perform under these arrangements, we have exposure to satisfy our underlying supply or demand contractual obligations that were incurred while under the management of this third party. We believe, based on our credit policies as of January 31, 2015, that our financial position, results of operations and cash flows will not be materially affected as a result of nonperformance by any single counterparty. | ||||||||||||||||||||
Natural gas distribution operating revenues and related trade accounts receivable are generated from state-regulated utility natural gas sales and transportation to over one million residential, commercial and industrial customers, including power generation and municipal customers, located in North Carolina, South Carolina and Tennessee. A change in economic conditions may affect the ability of customers to meet their obligations. We have mitigated our exposure to the risk of non-payment of utility bills by our customers. Gas costs related to uncollectible accounts are recovered through PGA procedures in all jurisdictions. To manage the non-gas cost customer credit risk, we evaluate credit quality and payment history and may require cash deposits from our high risk customers that do not satisfy our predetermined credit standards until a satisfactory payment history has been established. Significant increases in the price of natural gas and colder-than-normal weather can slow our collection efforts as customers experience increased difficulty in paying their gas bills, leading to higher than normal trade accounts receivable; however, we believe that our provision for possible losses on uncollectible trade accounts receivable is adequate for our credit loss exposure. | ||||||||||||||||||||
Risk Management | ||||||||||||||||||||
Our financial derivative instruments do not contain material credit-risk-related or other contingent features that could require us to make accelerated payments. | ||||||||||||||||||||
We seek to identify, assess, monitor and manage risk in accordance with defined policies and procedures under the direction of the Treasurer and Chief Risk Officer and our Enterprise Risk Management program, including our Energy Price Risk Management Committee. Risk management is guided by senior management with Board of Directors oversight, and senior management takes an active role in the development of policies and procedures. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 3 Months Ended |
Jan. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingent Liabilities | Commitments and Contingent Liabilities |
Long-term Contracts | |
We routinely enter into long-term gas supply commodity and capacity commitments and other agreements that commit future cash flows to acquire services we need in our business. These commitments include pipeline and storage capacity contracts and gas supply contracts to provide service to our customers and telecommunication and information technology contracts and other purchase obligations. Costs arising from the gas supply commodity and capacity commitments, while significant, are pass-through costs to our customers and are generally fully recoverable through our PGA procedures and prudence reviews in North Carolina and South Carolina and under the TIP in Tennessee. The time periods for fixed payments under pipeline and storage capacity contracts are up to twenty-one years. The time periods for fixed payments under gas supply contracts are up to two years. The time periods for the telecommunications and technology outsourcing contracts, maintenance fees for hardware and software applications, usage fees, local and long-distance costs and wireless service are up to five years. Other purchase obligations consist primarily of commitments for pipeline products, vehicles, equipment and contractors. | |
Certain storage and pipeline capacity contracts require the payment of demand charges that are based on rates approved by the Federal Energy Regulatory Commission (FERC) in order to maintain our right to access the natural gas storage or the pipeline capacity on a firm basis during the contract term. The demand charges that are incurred in each period are recognized in the Condensed Consolidated Statements of Comprehensive Income as part of gas purchases and included in “Cost of Gas.” | |
Leases | |
We lease certain buildings, land and equipment for use in our operations under noncancelable operating leases. We account for these leases by recognizing the future minimum lease payments as expense on a straight-line basis over the respective minimum lease terms under current accounting guidance. | |
Legal | |
We have only routine litigation in the normal course of business. We do not expect any of these routine litigation matters to have a material effect, either individually or in the aggregate, on our financial position, results of operations or cash flows. | |
Letters of Credit | |
We use letters of credit to guarantee claims from self-insurance under our general and automobile liability policies. We had $1.7 million in letters of credit that were issued and outstanding as of January 31, 2015. Additional information concerning letters of credit is included in Note 5 to the condensed consolidated financial statements in this Form 10-Q. | |
Surety Bonds | |
In the normal course of business, we are occasionally required to provide financial commitments in the form of surety bonds to third parties as a guarantee of our performance on commercial obligations. We have agreements that indemnify certain issuers of surety bonds against losses that they may incur as a result of executing surety bonds on our behalf. If we were to fail to perform according to the terms of the underlying contract, any draws upon surety bonds issued on our behalf would then trigger our payment obligation to the surety bond issuer. As of January 31, 2015, we had open surety bonds with a total contingent obligation of $6.4 million. | |
Environmental Matters | |
Our three regulatory commissions have authorized us to utilize deferral accounting in connection with environmental costs. Accordingly, we have established regulatory assets for actual environmental costs incurred and for estimated environmental liabilities recorded. There were no material changes in the status of environmental-related matters during the three months ended January 31, 2015. | |
As of January 31, 2015, our estimated undiscounted environmental liability totaled $1.1 million for manufactured gas production sites for which we retain remediation responsibility and for our underground storage tanks, which have been removed and for which we are waiting on a decision from the North Carolina Department of Environment and Natural Resources as to their final disposition. The costs we reasonably expect to incur are estimated using assumptions based on actual costs incurred, the timing of future payments and inflation factors, among others. | |
Further evaluation of environmental liabilities could significantly affect recorded amounts; however, we believe that the ultimate resolution of these matters will not have a material effect on our financial position, results of operations or cash flows. | |
Additional information concerning commitments and contingencies is set forth in Note 8 to the consolidated financial statements of our Form 10-K for the year ended October 31, 2014. |
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | |||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans | |||||||||||||||||||||||
Components of the net periodic benefit cost for our defined benefit pension plans and our other postretirement employee benefits (OPEB) plan for the three months ended January 31, 2015 and 2014 are presented below. | ||||||||||||||||||||||||
Qualified Pension | Nonqualified | Other Benefits | ||||||||||||||||||||||
Pension | ||||||||||||||||||||||||
In thousands | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Service cost | $ | 3,050 | $ | 2,750 | $ | — | $ | — | $ | 295 | $ | 277 | ||||||||||||
Interest cost | 2,975 | 2,950 | 52 | 45 | 369 | 362 | ||||||||||||||||||
Expected return on plan assets | (5,925 | ) | (5,700 | ) | — | — | (459 | ) | (457 | ) | ||||||||||||||
Amortization of prior service (credit) cost | (550 | ) | (550 | ) | 58 | 20 | — | — | ||||||||||||||||
Amortization of actuarial loss | 2,050 | 1,875 | 21 | 12 | 7 | — | ||||||||||||||||||
Total | $ | 1,600 | $ | 1,325 | $ | 131 | $ | 77 | $ | 212 | $ | 182 | ||||||||||||
In November 2014, we contributed $10 million to the qualified pension plan, and in January 2015, we contributed $1.4 million to the money purchase pension plan. During the three months ended January 31, 2015, we contributed $.1 million to the nonqualified pension plans. We anticipate that we will contribute the following additional amounts to our plans in 2015. | ||||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||
Nonqualified pension plans | $ | 383 | ||||||||||||||||||||||
OPEB plan | 1,500 | |||||||||||||||||||||||
We have a non-qualified defined contribution restoration plan (DCR plan) for all officers at the vice president level and above where benefits payable under the plan are funded annually. For the three months ended January 31, 2015, we contributed $.5 million to this plan. Participants may not contribute to the DCR plan. We have a voluntary deferral plan for the benefit of all director-level employees and officers, where we make no contributions to this plan. Both deferred compensation plans are funded through rabbi trusts with a bank as the trustee. As of January 31, 2015, we have a liability of $4.8 million for these plans. | ||||||||||||||||||||||||
See Note 7 and Note 8 to the condensed consolidated financial statements in this Form 10-Q for information on the investments in marketable securities that are held in the trusts. |
Employee_ShareBased_Plans
Employee Share-Based Plans | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Employee Share-Based Plans | Employee Share-Based Plans | |||||||
Under our shareholder approved ICP, eligible officers and other participants are awarded units that pay out depending upon the level of performance achieved by Piedmont during three-year incentive plan performance periods. Distribution of those awards may be made in the form of shares of common stock and withholdings for payment of applicable taxes on the compensation. These plans require that a minimum threshold performance level be achieved in order for any award to be distributed. For the three months ended January 31, 2015 and 2014, we recorded compensation expense, and as of January 31, 2015 and October 31, 2014, we accrued a liability for these awards based on the fair market value of our stock at the end of each quarter. The liability is re-measured to market value at the settlement date. | ||||||||
Also under our approved ICP, 64,700 unvested retention stock units were granted to our President and Chief Executive Officer in December 2011. During the five-year vesting period, any dividend equivalents will accrue on these stock units and be converted into additional units at the same rate and based on the closing price on the same payment date as dividends on our common stock. The stock units will vest, payable in the form of shares of common stock and withholdings for payment of applicable taxes on the compensation, over a five-year period only if he is an employee on each vesting date. In accordance with the vesting schedule, 20% of the units vested on December 15, 2014, 30% of the units vest on December 15, 2015 and 50% of the units vest on December 15, 2016. For the three months ended January 31, 2015 and 2014, we recorded compensation expense, and as of January 31, 2015 and October 31, 2014, we accrued a liability for this award based on the fair market value of our stock at the end of the quarter. The liability is re-measured to market value at the settlement date. | ||||||||
On December 15, 2014, 20% of the grant, including accrued dividends, vested for a total of 14,461 shares of common stock. After the withholding of $.3 million for federal and state income taxes, our President and Chief Executive Officer received 7,231 shares at the New York Stock Exchange composite closing price on December 12, 2014 of $37.89 per share. | ||||||||
At the time of distribution of awards under the ICP, the number of shares issuable is reduced by the withholdings for payment of applicable income taxes for each participant. The participant may elect income tax withholdings at or above the minimum statutory withholding requirements. The maximum withholdings allowed under the ICP is 50%. To date, shares withheld for payment of applicable income taxes have been immaterial. We present these net shares issued in the Condensed Consolidated Statements of Stockholders’ Equity and in Note 6 to the condensed consolidated financial statements in this Form 10-Q. | ||||||||
The compensation expense related to the incentive compensation plans for the three months ended January 31, 2015 and 2014, and the amounts recorded as liabilities in “Other noncurrent liabilities” in “Noncurrent Liabilities” with the current portion recorded in “Other current liabilities” in “Current Liabilities” in the Condensed Consolidated Balance Sheets as of January 31, 2015 and October 31, 2014 are presented below. | ||||||||
Three Months | ||||||||
In thousands | 2015 | 2014 | ||||||
Compensation expense | $ | 2,230 | $ | 2,100 | ||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
Liability | $ | 10,093 | $ | 15,130 | ||||
On a quarterly basis, we issue shares of common stock under the ESPP and account for the issuance as an equity transaction. The exercise price is calculated as 95% of the fair market value on the purchase date of each quarter where fair market value is determined by calculating the mean average of the high and low trading prices on the purchase date. |
Equity_Method_Investments
Equity Method Investments | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||
Equity Method Investments | Equity Method Investments | |||||||
The condensed consolidated financial statements include the accounts of wholly-owned subsidiaries whose investments in joint venture, energy-related businesses are accounted for under the equity method. Our ownership interest in each entity is included in “Equity method investments in non-utility activities” in “Noncurrent Assets” in the Condensed Consolidated Balance Sheets. Earnings or losses from equity method investments are included in “Income from equity method investments” in “Other Income (Expense)” in the Condensed Consolidated Statements of Comprehensive Income. | ||||||||
Cardinal Pipeline Company, L.L.C. | ||||||||
We own 21.49% of the membership interests in Cardinal Pipeline Company, L.L.C. (Cardinal), a North Carolina limited liability company. Cardinal owns and operates an intrastate natural gas pipeline in North Carolina and is regulated by the NCUC. | ||||||||
Cardinal enters into interest-rate swap agreements to modify the interest expense characteristics of its unsecured long-term debt. Our share of movements in the market value of these agreements are recorded as a hedge in “Accumulated other comprehensive loss” in “Stockholders’ equity” in the Condensed Consolidated Balance Sheets; the detail of our share of the market value of the swap agreements is combined with our other equity method investments and presented in “Other Comprehensive Income (Loss), net of tax” in the Condensed Consolidated Statements of Comprehensive Income. Cardinal’s long-term debt is nonrecourse to the members. | ||||||||
We have related party transactions as a transportation customer of Cardinal, and we record the transportation costs charged by Cardinal in “Cost of Gas” in the Condensed Consolidated Statements of Comprehensive Income. For each period of the three months ended January 31, 2015 and 2014, these transportation costs and the amounts we owed Cardinal as of January 31, 2015 and October 31, 2014 are as follows. | ||||||||
Three Months | ||||||||
In thousands | 2015 | 2014 | ||||||
Transportation costs | $ | 2,214 | $ | 2,240 | ||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
Trade accounts payable | $ | 743 | $ | 747 | ||||
Pine Needle LNG Company, L.L.C. | ||||||||
We own 45% of the membership interests in Pine Needle LNG Company, L.L.C. (Pine Needle), a North Carolina limited liability company that owns an interstate LNG storage facility in North Carolina and is regulated by the FERC. | ||||||||
Pine Needle enters into interest-rate swap agreements to modify the interest expense characteristics of its unsecured long-term debt. Our share of movements in the market value of these agreements are recorded as a hedge in “Accumulated other comprehensive loss” in “Stockholders’ equity” in the Condensed Consolidated Balance Sheets; the detail of our share of the market value of the swap agreements is combined with our other equity method investments and presented in “Other Comprehensive Income (Loss), net of tax” in the Condensed Consolidated Statements of Comprehensive Income. Pine Needle’s long-term debt is nonrecourse to the members. | ||||||||
We have related party transactions as a customer of Pine Needle, and we record the storage costs charged by Pine Needle in “Cost of Gas” in the Condensed Consolidated Statements of Comprehensive Income. For each period of the three months ended January 31, 2015 and 2014, these gas storage costs and the amounts we owed Pine Needle as of January 31, 2015 and October 31, 2014 are as follows. | ||||||||
Three Months | ||||||||
In thousands | 2015 | 2014 | ||||||
Gas storage costs | $ | 2,936 | $ | 2,793 | ||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
Trade accounts payable | $ | 989 | $ | 989 | ||||
SouthStar Energy Services LLC | ||||||||
We own 15% of the membership interests in SouthStar, a Delaware limited liability company. SouthStar primarily sells natural gas in the unregulated retail gas market to residential, commercial and industrial customers in the eastern United States, primarily in Georgia and Illinois. We account for our investment in SouthStar using the equity method, as we have board representation with equal voting rights on significant governance matters and policy decisions, and thus, exercise significant influence over the operations of SouthStar. | ||||||||
SouthStar’s business is seasonal in nature as variations in weather conditions generally result in greater revenue and earnings during the winter months when weather is colder and natural gas consumption is higher. Also, because SouthStar is not a rate-regulated company, the timing of its earnings can be affected by changes in the wholesale price of natural gas. While SouthStar uses financial contracts to moderate the effect of price and weather changes on the timing of its earnings, wholesale price and weather volatility can cause variations in the timing of the recognition of earnings. | ||||||||
These financial contracts, in the form of futures, options and swaps, are considered to be derivatives, and fair value is based on selected market indices. Beginning in July 2014, retirement benefits were allocated to SouthStar by its majority member with the activity of prescribed benefit expense items reflected in accumulated OCIL. Our share of movements in the market value of these hedged derivative contracts and the activity of the retirement benefit items are reflected in “Accumulated other comprehensive loss” in “Stockholders’ equity” in the Condensed Consolidated Balance Sheets; the detail of our share of the market value of these contracts and the retirement benefits are combined with our other equity method investments and presented in “Other Comprehensive Income (Loss), net of tax” in the Condensed Consolidated Statements of Comprehensive Income. | ||||||||
We have related party transactions as we sell wholesale gas supplies to SouthStar, and we record the amounts billed to SouthStar in “Operating Revenues” in the Condensed Consolidated Statements of Comprehensive Income. For each period of the three months ended January 31, 2015 and 2014, our operating revenues from these sales and the amounts SouthStar owed us as of January 31, 2015 and October 31, 2014 are as follows. | ||||||||
Three Months | ||||||||
In thousands | 2015 | 2014 | ||||||
Operating revenues | $ | 396 | $ | 432 | ||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
Trade accounts receivable | $ | 309 | $ | 460 | ||||
Hardy Storage Company, LLC | ||||||||
We own 50% of the membership interests in Hardy Storage Company, LLC (Hardy Storage), a West Virginia limited liability company. Hardy Storage owns and operates an underground interstate natural gas storage facility located in Hardy and Hampshire Counties, West Virginia, that is regulated by the FERC. | ||||||||
We have related party transactions as a customer of Hardy Storage, and we record the storage costs charged by Hardy Storage in “Cost of Gas” in the Condensed Consolidated Statements of Comprehensive Income. For each period of the three months ended January 31, 2015 and 2014, these gas storage costs and the amounts we owed Hardy Storage as of January 31, 2015 and October 31, 2014 are as follows. | ||||||||
Three Months | ||||||||
In thousands | 2015 | 2014 | ||||||
Gas storage costs | $ | 2,322 | $ | 2,425 | ||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
Trade accounts payable | $ | 774 | $ | 774 | ||||
Constitution Pipeline Company, LLC | ||||||||
We own 24% of the membership interests in Constitution Pipeline Company, LLC (Constitution), a Delaware limited liability company. The purpose of the joint venture is to develop, construct, own and operate approximately 120 miles of interstate natural gas pipeline, and related facilities, connecting shale natural gas supplies and gathering systems in Susquehanna County, Pennsylvania, to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in New York. A subsidiary of The Williams Companies is the operator of the project. The total cost of the project is $875 million, including an allowance for funds used during construction (AFUDC). | ||||||||
We have committed to fund an amount in proportion to our ownership interest for the development and construction of the new pipeline, which is expected to cost approximately $785 million, excluding AFUDC, at the project level. Our contributions for the quarter ended January 31, 2015 were $4.9 million with our total equity contribution for the project totaling $58.5 million to date. On December 2, 2014, the FERC issued a certificate of public convenience and necessity approving construction of the Constitution pipeline. The target in-service date of the project is the second half of 2016, which has been extended due to a longer than expected regulatory and permitting process. The capacity of the pipeline is 100% subscribed under fifteen year service agreements with two Marcellus producer-shippers with a negotiated rate structure. | ||||||||
Atlantic Coast Pipeline, LLC | ||||||||
We own 10% of the membership in Atlantic Coast Pipeline, LLC (ACP), a Delaware limited liability company. ACP intends to construct, operate and maintain a 550 mile natural gas pipeline, with associated compression, from West Virginia through Virginia into eastern North Carolina. The pipeline is proposed to provide interstate natural gas transportation services for Marcellus and Utica gas supplies into southeastern markets. ACP is regulated by the FERC and subject to state and other federal approvals with a target in-service date of late 2018. The capacity of ACP is substantially subscribed by affiliates of the members of ACP, other utilities and related companies under twenty-year contracts. | ||||||||
In October 2014, ACP requested approval from the FERC to utilize the pre-filing process under which environmental review for the natural gas pipeline will commence. ACP expects to file its FERC application in the third quarter of 2015, receive the FERC certificate in the summer of 2016 and begin construction thereafter. | ||||||||
The cost for the development and construction of the pipeline is expected to be between $4.5 billion to $5 billion, excluding financing costs. Members anticipate obtaining project financing for 70% of the total costs during the construction period. As of January 31, 2015, we made $5.1 million in equity contributions to ACP. |
Variable_Interest_Entities
Variable Interest Entities | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | ||||||||
Variable Interest Entities | Variable Interest Entities | |||||||
As of January 31, 2015, we have determined that we are not the primary beneficiary under variable interest entity (VIE) accounting guidance in any of our equity method investments, as discussed in Note 12 to the condensed consolidated financial statements in this Form 10-Q. Based on our involvement in these investments, we do not have the power to direct the activities of these investments that most significantly impact the VIE’s economic performance. As we are not the consolidating investor, we will continue to apply equity method accounting to these investments. Our maximum loss exposure related to these equity method investments is limited to our equity investment in each entity. As of January 31, 2015 and October 31, 2014, our investment balances are as follows. | ||||||||
In thousands | January 31, | October 31, | ||||||
2015 | 2014 | |||||||
Cardinal | $ | 15,828 | $ | 16,073 | ||||
Pine Needle | 18,228 | 18,689 | ||||||
SouthStar | 44,080 | 40,965 | ||||||
Hardy Storage | 37,925 | 37,179 | ||||||
Constitution | 63,489 | 57,255 | ||||||
ACP | 4,928 | 10 | ||||||
Total equity method investments in non-utility activities | $ | 184,478 | $ | 170,171 | ||||
We have also reviewed various lease arrangements, contracts to purchase, sell or deliver natural gas and other agreements in which we hold a variable interest. In these cases, we have determined that we are not the primary beneficiary of the related VIE because we do not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, or the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. |
Business_Segments
Business Segments | 3 Months Ended | |||||||||||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||
Business Segments | Business Segments | |||||||||||||||||||||||||||||||
We have three reportable business segments, regulated utility, regulated non-utility, and unregulated non-utility activities. Our segments are identified based on products and services, regulatory environments and our current corporate organization and business decision-making activities. The regulated utility segment is the gas distribution business, where we include the operations of merchandising and its related service work and home service agreements, with activities conducted by the parent company. Although the operations of our regulated utility segment are located in three states under the jurisdiction of individual state regulatory commissions, the operations are managed as one unit having similar economic and risk characteristics within one company. | ||||||||||||||||||||||||||||||||
Operations of our regulated non-utility activities segment are comprised of our equity method investments in joint ventures with regulated activities that are held by our wholly-owned subsidiaries. Operations of our unregulated non-utility activities segment are comprised primarily of our equity method investment in a joint venture with unregulated activities that is held by a wholly-owned subsidiary; activities of our other minor subsidiaries are also included. | ||||||||||||||||||||||||||||||||
Operations of the regulated utility segment are reflected in “Operating Income” in the Condensed Consolidated Statements of Comprehensive Income. Operations of the regulated non-utility activities and unregulated non-utility activities segments are included in the Condensed Consolidated Statements of Comprehensive Income in “Other Income (Expense)” in “Income from equity method investments” and “Non-operating income.” | ||||||||||||||||||||||||||||||||
Our chief operating decision maker is the executive management team. We produce consolidated financial information internally that is supplemented with separate non-utility activity reporting that is used regularly to make operating decisions and assess performance of our three business segments. We evaluate the performance of the regulated utility segment based on margin, operations and maintenance expenses and operating income. We evaluate the performance of the regulated and unregulated non-utility activities segments based on earnings from our cash flows in the ventures. | ||||||||||||||||||||||||||||||||
The basis of segmentation and the basis of the measurement of segment profit or loss are the same as reported in the consolidated financial statements in our Form 10-K for the year ended October 31, 2014. The information for 2014 has been recasted to align with management's view of the non-utility activities. | ||||||||||||||||||||||||||||||||
Operations by segment for the three months ended January 31, 2015 and 2014 are presented below. | ||||||||||||||||||||||||||||||||
Regulated Utility | Regulated | Unregulated | Total | |||||||||||||||||||||||||||||
Non-Utility | Non-Utility | |||||||||||||||||||||||||||||||
Activities | Activities | |||||||||||||||||||||||||||||||
In thousands | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||
Revenues from external customers | $ | 607,271 | $ | 657,733 | $ | — | $ | — | $ | — | $ | — | $ | 607,271 | $ | 657,733 | ||||||||||||||||
Margin | 270,070 | 261,512 | — | — | — | — | 270,070 | 261,512 | ||||||||||||||||||||||||
Operations and maintenance | ||||||||||||||||||||||||||||||||
expenses | 66,150 | 60,639 | 31 | 6 | 38 | 23 | 66,219 | 60,668 | ||||||||||||||||||||||||
Income from equity method | ||||||||||||||||||||||||||||||||
investments | — | — | 3,771 | 3,107 | 4,494 | 6,834 | 8,265 | 9,941 | ||||||||||||||||||||||||
Operating income (loss) before | ||||||||||||||||||||||||||||||||
income taxes | 162,030 | 162,121 | (31 | ) | (7 | ) | (121 | ) | (102 | ) | 161,878 | 162,012 | ||||||||||||||||||||
Income before income taxes | 144,401 | 151,269 | 3,740 | 3,101 | 4,373 | 6,732 | 152,514 | 161,102 | ||||||||||||||||||||||||
Reconciliations to the condensed consolidated statements of comprehensive income for the three months ended January 31, 2015 and 2014 are presented below. | ||||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||
In thousands | 2015 | 2014 | ||||||||||||||||||||||||||||||
Operating Income: | ||||||||||||||||||||||||||||||||
Segment operating income before income taxes | $ | 161,878 | $ | 162,012 | ||||||||||||||||||||||||||||
Utility income taxes | (56,272 | ) | (59,802 | ) | ||||||||||||||||||||||||||||
Regulated non-utility activities operating loss before income taxes | 31 | 7 | ||||||||||||||||||||||||||||||
Unregulated non-utility activities operating loss before income taxes | 121 | 102 | ||||||||||||||||||||||||||||||
Operating income | $ | 105,758 | $ | 102,319 | ||||||||||||||||||||||||||||
Net Income: | ||||||||||||||||||||||||||||||||
Income before income taxes for reportable segments | $ | 152,514 | $ | 161,102 | ||||||||||||||||||||||||||||
Income taxes | (59,536 | ) | (63,530 | ) | ||||||||||||||||||||||||||||
Total | $ | 92,978 | $ | 97,572 | ||||||||||||||||||||||||||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Jan. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
We monitor significant events occurring after the balance sheet date and prior to the issuance of the financial statements to determine the impacts, if any, of events on the financial statements to be issued. All subsequent events of which we are aware were evaluated. For information on subsequent event disclosure items related to regulatory matters, see Note 2 to the condensed consolidated financial statements in this Form 10-Q. |
Recovered_Sheet1
Summary Of Significant Accounting Policies (Policies) | 3 Months Ended |
Jan. 31, 2015 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | The condensed consolidated financial statements have not been audited. We have prepared the unaudited condensed consolidated financial statements under the rules of the Securities and Exchange Commission (SEC). Therefore, certain financial information and note disclosures normally included in annual financial statements prepared in conformity with generally accepted accounting principles (GAAP) in the United States of America are omitted in this interim report under these SEC rules and regulations. These financial statements should be read in conjunction with the Consolidated Financial Statements and Notes included in our Form 10-K for the year ended October 31, 2014. |
Seasonality | The unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of the statement of financial position at January 31, 2015 and October 31, 2014, the results of operations for three months ended January 31, 2015 and 2014, and cash flows and stockholders’ equity for the three months ended January 31, 2015 and 2014. Our business is seasonal in nature. The results of operations for the three months ended January 31, 2015 do not necessarily reflect the results to be expected for the full year. |
Use of Estimates | In accordance with GAAP, we make certain estimates and assumptions regarding reported amounts of assets, liabilities, revenues and expenses and the related disclosures, using historical experience and other assumptions that we believe are reasonable at the time. Our estimates may involve complex situations requiring a high degree of judgment in the application and interpretation of existing literature or in the development of estimates that impact our financial statements. These estimates and assumptions affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and assumptions, which are evaluated on a continual basis. |
Rate Regulated Basis Of Accounting | Our utility operations are subject to regulation with respect to rates, service area, accounting and various other matters by the regulatory commissions in the states in which we operate. The accounting regulations provide that rate-regulated public utilities account for and report assets and liabilities consistent with the economic effect of the manner in which independent third-party regulators establish rates. In applying these regulations, we capitalize certain costs and benefits as regulatory assets and liabilities, respectively, in order to provide for recovery from or refund to utility customers in future periods. Generally, regulatory assets are amortized to expense and regulatory liabilities are amortized to income over the period authorized by our regulators. |
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 in the Condensed Consolidated Balance Sheets are cash and cash equivalents, marketable securities held in rabbi trusts established for our deferred compensation plans and derivative assets and liabilities, if any, that are held for our utility operations. The carrying values of receivables, short-term debt, accounts payable, accrued interest and other current assets and liabilities approximate fair value as all amounts reported are to be collected or paid within one year. Our nonfinancial assets and liabilities include our qualified pension and postretirement plan assets and liabilities that are recorded at fair value in the Condensed Consolidated Balance Sheets in accordance with employers’ accounting and related disclosures of postretirement plans. |
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, or exit date. 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 fair value measurements and endeavor 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. | |
Investment, Policy | The fair values of the equity securities are based on quoted market prices as traded on the exchanges. |
Trading securities are recorded at fair value on the Condensed Consolidated Balance Sheets with any gains or losses recognized currently in earnings. | |
Earnings per Share | We compute basic earnings per share (EPS) using the daily weighted average number of shares of common stock outstanding during each period. In the calculation of fully diluted EPS, shares of common stock to be issued under approved incentive compensation plans are contingently issuable shares, as determined by applying the treasury stock method, and are added to average common shares outstanding, resulting in a potential reduction in diluted EPS. |
Subsequent Events | We monitor significant events occurring after the balance sheet date and prior to the issuance of the financial statements to determine the impacts, if any, of events on the financial statements to be issued. |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Accounting Policies [Abstract] | ||||||||
Schedule of Regulatory Assets | ||||||||
In thousands | January 31, | October 31, | ||||||
2015 | 2014 | |||||||
Regulatory Assets: | ||||||||
Current: | ||||||||
Unamortized debt expense | $ | 1,516 | $ | 1,490 | ||||
Amounts due from customers | 338 | 16,108 | ||||||
Environmental costs | 1,554 | 1,568 | ||||||
Deferred operations and maintenance expenses | 916 | 916 | ||||||
Deferred pipeline integrity expenses | 3,470 | 3,470 | ||||||
Deferred pension and other retirement benefit costs | 2,757 | 2,769 | ||||||
Robeson liquefied natural gas (LNG) development costs | 783 | 917 | ||||||
Other | 1,261 | 1,850 | ||||||
Total current | 12,595 | 29,088 | ||||||
Noncurrent: | ||||||||
Unamortized debt expense | 15,004 | 15,402 | ||||||
Environmental costs | 6,091 | 6,470 | ||||||
Deferred operations and maintenance expenses | 4,528 | 4,721 | ||||||
Deferred pipeline integrity expenses | 25,407 | 24,694 | ||||||
Deferred pension and other retirement benefit costs | 19,929 | 18,799 | ||||||
Amounts not yet recognized as a component of pension and other retirement benefit costs | 92,676 | 94,265 | ||||||
Regulatory cost of removal asset | 18,509 | 18,275 | ||||||
Robeson LNG development costs | 413 | 509 | ||||||
Other | 1,535 | 1,644 | ||||||
Total noncurrent | 184,092 | 184,779 | ||||||
Total | $ | 196,687 | $ | 213,867 | ||||
Schedule of Regulatory Liabilities | ||||||||
Regulatory Liabilities: | ||||||||
Current: | ||||||||
Amounts due to customers | $ | 77,402 | $ | 46,231 | ||||
Noncurrent: | ||||||||
Regulatory cost of removal obligations | 510,940 | 506,574 | ||||||
Deferred income taxes | 57,131 | 51,930 | ||||||
Amounts not yet recognized as a component of pension and other retirement benefit costs | 92 | 94 | ||||||
Total noncurrent | 568,163 | 558,598 | ||||||
Total | $ | 645,565 | $ | 604,829 | ||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Accounting Guidance Adopted in First Quarter Fiscal Year 2015 | |||||||
Guidance | Description | Effective date | Effect on the financial statements or other significant matters | |||||
ASU 2013-11, July 2013, Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (Topic740) | The guidance provides that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except under certain circumstances outlined in the update. | Annual periods beginning after December 15, 2013, and interim periods within those periods, with early adoption permitted. We adopted the guidance effective November 1, 2014. | The adoption had no impact on our financial position, results of operations or cash flows. | |||||
Recently Issued Accounting Guidance | ||||||||
Guidance | Description | Effective date | Effect on the financial statements or other significant matters | |||||
ASU 2014-09, May 2014, Revenue from Contracts with Customers (Topic 606) | Under the new standard, entities will recognize revenue to depict the transfer of goods and services to customers in amounts that reflect the payment to which the entity expects to be entitled in exchange for those goods or services. The disclosure requirements will provide information about the nature, amount, timing and uncertainty of revenue and cash flows from an entity’s contracts with customers. | Annual periods beginning after December 15, 2016, and interim periods within those periods. The Financial Accounting Standards Board (FASB) is considering a possible deferral of the effective date in the second quarter of 2015. | We are currently evaluating the effect on our financial position, results of operations and cash flows. The evaluation includes identifying revenue streams by like contracts to allow for ease of implementation. In our evaluation, we are following the efforts of an accounting utility subgroup and its issuance of a revenue implementation guide. | |||||
ASU 2014-15, August 2014, Presentation of Financial Statements - Going Concern (Subtopic 205-40) | The FASB issued accounting guidance on determining when and how reporting entities must disclose going concern uncertainties in their financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. An entity must provide certain disclosures if there is a "substantial doubt about the entity's ability to continue as a going concern." | Annual periods ending after December 15, 2016, and interim and annual periods thereafter; early adoption is permitted. | The adoption of this guidance will have no impact on our financial position, results of operations or cash flows. It will require establishing a going concern assessment process to meet the standard. | |||||
ASU 2015-01, January 2015, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20) | The FASB issued accounting guidance eliminating the concept of extraordinary items, thus eliminating the need to assess whether a particular event or transaction event is extraordinary. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring, with the amendments being applicable either prospectively or retrospectively, to all prior periods presented in the financial statements. | Annual periods ending after December 15, 2015, and interim periods within those periods, with early adoption permitted, provided that the guidance is applied from the beginning of the fiscal year of adoption. | The adoption of this guidance will be applied on a prospective basis. We have not had any extraordinary or unusual items that would impact our financial position, results of operations or cash flows. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of basic and diluted EPS, which includes contingently issuable shares that could affect EPS if performance units ultimately vest, for the three months ended January 31, 2015 and 2014 is presented below. | |||||||
Three Months | ||||||||
In thousands, except per share amounts | 2015 | 2014 | ||||||
Net Income | $ | 92,978 | $ | 97,572 | ||||
Average shares of common stock outstanding for basic earnings per share | 78,620 | 76,988 | ||||||
Contingently issuable shares under incentive compensation plans | 325 | 339 | ||||||
Average shares of dilutive stock | 78,945 | 77,327 | ||||||
Earnings Per Share of Common Stock: | ||||||||
Basic | $ | 1.18 | $ | 1.27 | ||||
Diluted | $ | 1.18 | $ | 1.26 | ||||
Short_Term_Debt_Instruments_Ta
Short Term Debt Instruments (Tables) | 3 Months Ended | |||
Jan. 31, 2015 | ||||
Line of Credit Facility [Abstract] | ||||
Schedule of Line of Credit Facilities | We did not have any borrowings under the revolving syndicated credit facility for the three months ended January 31, 2015. A summary of the short-term debt activity under our CP program for the three months ended January 31, 2015 is as follows. | |||
In millions | Three Months | |||
Minimum amount outstanding during period | $ | 355 | ||
Maximum amount outstanding during period | $ | 580 | ||
Minimum interest rate during period | 0.15 | % | ||
Maximum interest rate during period | 0.3 | % | ||
Weighted average interest rate during period | 0.21 | % |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | |||||||||
Jan. 31, 2015 | ||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||
Schedule Of Capital Stock | Changes in common stock for the three months ended January 31, 2015 are as follows. | |||||||||
In thousands | Shares | Amount | ||||||||
Balance, October 31, 2014 | 78,531 | $ | 636,835 | |||||||
Issued to participants in the Employee Stock Purchase Plan (ESPP) | 7 | 279 | ||||||||
Issued to participants in the Dividend Reinvestment and Stock Purchase Plan | 126 | 4,781 | ||||||||
Issued to participants in the Incentive Compensation Plan (ICP) | 103 | 3,935 | ||||||||
Costs from issuance of common stock | (137 | ) | ||||||||
Balance, January 31, 2015 | 78,767 | $ | 645,693 | |||||||
Dividends Declared | Cash dividends paid per share of common stock for the three months ended January 31, 2015 and 2014 are as follows. | |||||||||
Three Months | ||||||||||
2015 | 2014 | |||||||||
Cash dividends paid per share of common stock | $ | 0.32 | $ | 0.31 | ||||||
Schedule Of Accumulated Other Comprehensive Income (Loss) | Changes in each component of accumulated OCIL are presented below for the three months ended January 31, 2015 and 2014. | |||||||||
Changes in Accumulated OCIL(1) | ||||||||||
Three Months | ||||||||||
In thousands | 2015 | 2014 | ||||||||
Accumulated OCIL beginning balance, net of tax | $ | (237 | ) | $ | (284 | ) | ||||
Hedging activities of equity method investments: | ||||||||||
OCIL before reclassifications, net of tax | (944 | ) | 174 | |||||||
Amounts reclassified from accumulated OCIL, net of tax | 117 | 137 | ||||||||
Total current period activity of hedging activities of equity method investments, net of tax | (827 | ) | 311 | |||||||
Net current period benefit activities of equity method investments, net of tax | — | |||||||||
Accumulated OCIL ending balance, net of tax | $ | (1,064 | ) | $ | 27 | |||||
(1) Amounts in parentheses indicate debits to accumulated OCIL. | ||||||||||
Reclassification Out Of Accumulated Other Comprehensive Income | A reconciliation of the effect on certain line items of net income on amounts reclassified out of each component of accumulated OCIL is presented below for the three months ended January 31, 2015 and 2014. | |||||||||
Reclassification Out of | Affected Line Items on Condensed | |||||||||
Accumulated OCIL (1) | Statements of Operations and Comprehensive Income | |||||||||
Three Months | ||||||||||
In thousands | 2015 | 2014 | ||||||||
Hedging activities of equity method investments | $ | 192 | $ | 225 | Income from equity method investments | |||||
Income tax expense | (75 | ) | (88 | ) | Income taxes | |||||
Hedging activities of equity method investments | 117 | 137 | ||||||||
Net benefit activities of equity method investments | — | Income from equity method investments | ||||||||
Income tax expense | — | Income taxes | ||||||||
Net benefit activities of equity method investments | — | |||||||||
Total reclassification for the period, net of tax | $ | 117 | $ | 137 | ||||||
(1) Amounts in parentheses indicate debits to accumulated OCIL. |
Marketable_Securities_Tables
Marketable Securities (Tables) | 3 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Marketable Securities [Abstract] | ||||||||||||||||
Marketable Securities Table | The composition of these securities as of January 31, 2015 and October 31, 2014 is as follows. | |||||||||||||||
31-Jan-15 | 31-Oct-14 | |||||||||||||||
In thousands | Cost | Fair | Cost | Fair | ||||||||||||
Value | Value | |||||||||||||||
Current trading securities: | ||||||||||||||||
Money markets | $ | 45 | $ | 45 | $ | 22 | $ | 22 | ||||||||
Mutual funds | 91 | 153 | 106 | 192 | ||||||||||||
Total current trading securities | 136 | 198 | 128 | 214 | ||||||||||||
Noncurrent trading securities: | ||||||||||||||||
Money markets | 479 | 479 | 447 | 447 | ||||||||||||
Mutual funds | 3,599 | 4,064 | 2,598 | 3,280 | ||||||||||||
Total noncurrent trading securities | 4,078 | 4,543 | 3,045 | 3,727 | ||||||||||||
Total trading securities | $ | 4,214 | $ | 4,741 | $ | 3,173 | $ | 3,941 | ||||||||
Financial_Instruments_Related_1
Financial Instruments & Related Fair Value (Tables) | 3 Months Ended | |||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||
Financial Instruments And Related Fair Value [Abstract] | ||||||||||||||||||||
Assets And Liabilities Measured And Recorded At Fair Value On Recurring Basis | The following table sets forth, by level of the fair value hierarchy, our financial assets that were accounted for at fair value on a recurring basis as of January 31, 2015 and October 31, 2014. | |||||||||||||||||||
Recurring Fair Value Measurements as of January 31, 2015 | ||||||||||||||||||||
In thousands | Quoted Prices | Significant | Significant | Effects of | Total | |||||||||||||||
in Active | Other | Unobservable | Netting and | Carrying | ||||||||||||||||
Markets | Observable | Inputs | Cash Collateral | Value | ||||||||||||||||
(Level 1) | Inputs | (Level 3) | Receivables / | |||||||||||||||||
(Level 2) | Payables | |||||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives held for utility operations | $ | 1,013 | $ | — | $ | — | $ | — | $ | 1,013 | ||||||||||
Debt and equity securities held as trading securities: | ||||||||||||||||||||
Money markets | 524 | — | — | — | 524 | |||||||||||||||
Mutual funds | 4,217 | — | — | — | 4,217 | |||||||||||||||
Total fair value assets | $ | 5,754 | $ | — | $ | — | $ | — | $ | 5,754 | ||||||||||
Recurring Fair Value Measurements as of October 31, 2014 | ||||||||||||||||||||
In thousands | Quoted Prices | Significant | Significant | Effects of | Total | |||||||||||||||
in Active | Other | Unobservable | Netting and | Carrying | ||||||||||||||||
Markets | Observable | Inputs | Cash Collateral | Value | ||||||||||||||||
(Level 1) | Inputs | (Level 3) | Receivables / | |||||||||||||||||
(Level 2) | Payables | |||||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives held for utility operations | $ | 4,898 | $ | — | $ | — | $ | — | $ | 4,898 | ||||||||||
Debt and equity securities held as trading securities: | ||||||||||||||||||||
Money markets | 469 | — | — | — | 469 | |||||||||||||||
Mutual funds | 3,472 | — | — | — | 3,472 | |||||||||||||||
Total fair value assets | $ | 8,839 | $ | — | $ | — | $ | — | $ | 8,839 | ||||||||||
Fair Value By Balance Sheet Grouping | The following table presents the fair value and balance sheet classification of our financial options for natural gas as of January 31, 2015 and October 31, 2014. | |||||||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||
January 31, | October 31, | |||||||||||||||||||
In thousands | 2015 | 2014 | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments under Derivative Accounting Standards: | ||||||||||||||||||||
Asset Financial Instruments: | ||||||||||||||||||||
Current Assets – Gas purchase derivative assets (March 2015 - January 2016) | $ | 1,013 | ||||||||||||||||||
Current Assets – Gas purchase derivative assets (December 2014 - November 2015) | $ | 4,898 | ||||||||||||||||||
The carrying amount and fair value of our long-term debt, including the current portion, which is classified within Level 2, are shown below. | ||||||||||||||||||||
In thousands | Carrying | Fair Value | ||||||||||||||||||
Amount (1) | ||||||||||||||||||||
As of January 31, 2015 | $ | 1,425,000 | $ | 1,711,196 | ||||||||||||||||
As of October 31, 2014 | 1,425,000 | 1,617,453 | ||||||||||||||||||
(1) Excludes discount on issuance of notes of $564 and $570 as of January 31, 2015 and October 31, 2014, respectively. | ||||||||||||||||||||
Amount Of Gain Loss Recognized On Derivatives And Deferred Under PGA Procedures | The following table presents the impact that financial instruments not designated as hedging instruments under derivative accounting standards would have had on the Condensed Consolidated Statements of Comprehensive Income for the three months ended January 31, 2015 and 2014, absent the regulatory treatment under our approved PGA procedures. | |||||||||||||||||||
Amount of Gain (Loss)Recognized | Amount of Gain (Loss) Deferred Under PGA Procedures | Location of Gain (Loss) | ||||||||||||||||||
on Derivative Instruments | Recognized through | |||||||||||||||||||
PGA Procedures | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
January 31 | January 31 | |||||||||||||||||||
In thousands | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Gas purchase options | $ | (558 | ) | $ | 4,529 | $ | (558 | ) | $ | 4,529 | Cost of Gas | |||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | |||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ||||||||||||||||||||||||
Components Of Net Periodic Benefit Cost | Components of the net periodic benefit cost for our defined benefit pension plans and our other postretirement employee benefits (OPEB) plan for the three months ended January 31, 2015 and 2014 are presented below. | |||||||||||||||||||||||
Qualified Pension | Nonqualified | Other Benefits | ||||||||||||||||||||||
Pension | ||||||||||||||||||||||||
In thousands | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Service cost | $ | 3,050 | $ | 2,750 | $ | — | $ | — | $ | 295 | $ | 277 | ||||||||||||
Interest cost | 2,975 | 2,950 | 52 | 45 | 369 | 362 | ||||||||||||||||||
Expected return on plan assets | (5,925 | ) | (5,700 | ) | — | — | (459 | ) | (457 | ) | ||||||||||||||
Amortization of prior service (credit) cost | (550 | ) | (550 | ) | 58 | 20 | — | — | ||||||||||||||||
Amortization of actuarial loss | 2,050 | 1,875 | 21 | 12 | 7 | — | ||||||||||||||||||
Total | $ | 1,600 | $ | 1,325 | $ | 131 | $ | 77 | $ | 212 | $ | 182 | ||||||||||||
Anticipated Employer Contribution To Benefit Plans | We anticipate that we will contribute the following additional amounts to our plans in 2015. | |||||||||||||||||||||||
In thousands | ||||||||||||||||||||||||
Nonqualified pension plans | $ | 383 | ||||||||||||||||||||||
OPEB plan | 1,500 | |||||||||||||||||||||||
Employee_ShareBased_Plans_Tabl
Employee Share-Based Plans (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Compensation Expense And Liabilities | The compensation expense related to the incentive compensation plans for the three months ended January 31, 2015 and 2014, and the amounts recorded as liabilities in “Other noncurrent liabilities” in “Noncurrent Liabilities” with the current portion recorded in “Other current liabilities” in “Current Liabilities” in the Condensed Consolidated Balance Sheets as of January 31, 2015 and October 31, 2014 are presented below. | |||||||
Three Months | ||||||||
In thousands | 2015 | 2014 | ||||||
Compensation expense | $ | 2,230 | $ | 2,100 | ||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
Liability | $ | 10,093 | $ | 15,130 | ||||
Equity_Method_Investments_Tabl
Equity Method Investments (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||
Schedule of Equity Method Investments | For each period of the three months ended January 31, 2015 and 2014, these transportation costs and the amounts we owed Cardinal as of January 31, 2015 and October 31, 2014 are as follows. | |||||||
Three Months | ||||||||
In thousands | 2015 | 2014 | ||||||
Transportation costs | $ | 2,214 | $ | 2,240 | ||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
Trade accounts payable | $ | 743 | $ | 747 | ||||
For each period of the three months ended January 31, 2015 and 2014, these gas storage costs and the amounts we owed Pine Needle as of January 31, 2015 and October 31, 2014 are as follows. | ||||||||
Three Months | ||||||||
In thousands | 2015 | 2014 | ||||||
Gas storage costs | $ | 2,936 | $ | 2,793 | ||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
Trade accounts payable | $ | 989 | $ | 989 | ||||
For each period of the three months ended January 31, 2015 and 2014, these gas storage costs and the amounts we owed Hardy Storage as of January 31, 2015 and October 31, 2014 are as follows. | ||||||||
Three Months | ||||||||
In thousands | 2015 | 2014 | ||||||
Gas storage costs | $ | 2,322 | $ | 2,425 | ||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
Trade accounts payable | $ | 774 | $ | 774 | ||||
For each period of the three months ended January 31, 2015 and 2014, our operating revenues from these sales and the amounts SouthStar owed us as of January 31, 2015 and October 31, 2014 are as follows. | ||||||||
Three Months | ||||||||
In thousands | 2015 | 2014 | ||||||
Operating revenues | $ | 396 | $ | 432 | ||||
January 31, | October 31, | |||||||
2015 | 2014 | |||||||
Trade accounts receivable | $ | 309 | $ | 460 | ||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | ||||||||
Schedule Of Variable Interest Entities Investment Balances | As of January 31, 2015 and October 31, 2014, our investment balances are as follows. | |||||||
In thousands | January 31, | October 31, | ||||||
2015 | 2014 | |||||||
Cardinal | $ | 15,828 | $ | 16,073 | ||||
Pine Needle | 18,228 | 18,689 | ||||||
SouthStar | 44,080 | 40,965 | ||||||
Hardy Storage | 37,925 | 37,179 | ||||||
Constitution | 63,489 | 57,255 | ||||||
ACP | 4,928 | 10 | ||||||
Total equity method investments in non-utility activities | $ | 184,478 | $ | 170,171 | ||||
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||
Operations By Segment | Operations by segment for the three months ended January 31, 2015 and 2014 are presented below. | |||||||||||||||||||||||||||||||
Regulated Utility | Regulated | Unregulated | Total | |||||||||||||||||||||||||||||
Non-Utility | Non-Utility | |||||||||||||||||||||||||||||||
Activities | Activities | |||||||||||||||||||||||||||||||
In thousands | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||
Revenues from external customers | $ | 607,271 | $ | 657,733 | $ | — | $ | — | $ | — | $ | — | $ | 607,271 | $ | 657,733 | ||||||||||||||||
Margin | 270,070 | 261,512 | — | — | — | — | 270,070 | 261,512 | ||||||||||||||||||||||||
Operations and maintenance | ||||||||||||||||||||||||||||||||
expenses | 66,150 | 60,639 | 31 | 6 | 38 | 23 | 66,219 | 60,668 | ||||||||||||||||||||||||
Income from equity method | ||||||||||||||||||||||||||||||||
investments | — | — | 3,771 | 3,107 | 4,494 | 6,834 | 8,265 | 9,941 | ||||||||||||||||||||||||
Operating income (loss) before | ||||||||||||||||||||||||||||||||
income taxes | 162,030 | 162,121 | (31 | ) | (7 | ) | (121 | ) | (102 | ) | 161,878 | 162,012 | ||||||||||||||||||||
Income before income taxes | 144,401 | 151,269 | 3,740 | 3,101 | 4,373 | 6,732 | 152,514 | 161,102 | ||||||||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Reconciliations to the condensed consolidated statements of comprehensive income for the three months ended January 31, 2015 and 2014 are presented below. | |||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||
In thousands | 2015 | 2014 | ||||||||||||||||||||||||||||||
Operating Income: | ||||||||||||||||||||||||||||||||
Segment operating income before income taxes | $ | 161,878 | $ | 162,012 | ||||||||||||||||||||||||||||
Utility income taxes | (56,272 | ) | (59,802 | ) | ||||||||||||||||||||||||||||
Regulated non-utility activities operating loss before income taxes | 31 | 7 | ||||||||||||||||||||||||||||||
Unregulated non-utility activities operating loss before income taxes | 121 | 102 | ||||||||||||||||||||||||||||||
Operating income | $ | 105,758 | $ | 102,319 | ||||||||||||||||||||||||||||
Net Income: | ||||||||||||||||||||||||||||||||
Income before income taxes for reportable segments | $ | 152,514 | $ | 161,102 | ||||||||||||||||||||||||||||
Income taxes | (59,536 | ) | (63,530 | ) | ||||||||||||||||||||||||||||
Total | $ | 92,978 | $ | 97,572 | ||||||||||||||||||||||||||||
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | |
Jan. 31, 2015 | Oct. 31, 2014 | |
Regulatory Asset [Line Items] | ||
Regulatory assets - current | $12,595,000 | $29,088,000 |
Regulatory assets - noncurrent | 184,092,000 | 184,779,000 |
Regulatory assets, Total | 196,687,000 | 213,867,000 |
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities - current | 77,402,000 | 46,231,000 |
Regulatory liabilities - noncurrent | 568,163,000 | 558,598,000 |
Regulatory liabilities, Total | 645,565,000 | 604,829,000 |
Amount Due To Customers [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities - current | 77,402,000 | 46,231,000 |
Regulatory Cost of Removal [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities - noncurrent | 510,940,000 | 506,574,000 |
Deferred Income Taxes [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities - noncurrent | 57,131,000 | 51,930,000 |
Amounts Not Yet Recognized As Component Of Pension and Other Post Retirement Benefit Costs [Member] | ||
Regulatory Liabilities [Line Items] | ||
Regulatory liabilities - noncurrent | 92,000 | 94,000 |
Unamortized Debt Expense [Member] | ||
Regulatory Asset [Line Items] | ||
Regulatory assets - current | 1,516,000 | 1,490,000 |
Regulatory assets - noncurrent | 15,004,000 | 15,402,000 |
Amounts Due From Customers [Member] | ||
Regulatory Asset [Line Items] | ||
Regulatory assets - current | 338,000 | 16,108,000 |
Environmental Costs [Member] | ||
Regulatory Asset [Line Items] | ||
Regulatory assets - current | 1,554,000 | 1,568,000 |
Regulatory assets - noncurrent | 6,091,000 | 6,470,000 |
Deferred Operations And Maintenance Expenses [Member] | ||
Regulatory Asset [Line Items] | ||
Regulatory assets - current | 916,000 | 916,000 |
Regulatory assets - noncurrent | 4,528,000 | 4,721,000 |
Deferred Pipeline Integrity Expenses [Member] | ||
Regulatory Asset [Line Items] | ||
Regulatory assets - current | 3,470,000 | 3,470,000 |
Regulatory assets - noncurrent | 25,407,000 | 24,694,000 |
Deferred Pension and Other Retirement Benefit Costs [Member] | ||
Regulatory Asset [Line Items] | ||
Regulatory assets - current | 2,757,000 | 2,769,000 |
Regulatory assets - noncurrent | 19,929,000 | 18,799,000 |
Amounts Not Yet Recognized As Component Of Pension and Other Post Retirement Benefit Costs [Member] | ||
Regulatory Asset [Line Items] | ||
Regulatory assets - noncurrent | 92,676,000 | 94,265,000 |
Regulatory Cost of Removal [Member] | ||
Regulatory Asset [Line Items] | ||
Regulatory assets - noncurrent | 18,509,000 | 18,275,000 |
Robeson LNG Development Cost [Member] | ||
Regulatory Asset [Line Items] | ||
Regulatory assets - current | 783,000 | 917,000 |
Regulatory assets - noncurrent | 413,000 | 509,000 |
Other [Member] | ||
Regulatory Asset [Line Items] | ||
Regulatory assets - current | 1,261,000 | 1,850,000 |
Regulatory assets - noncurrent | 1,535,000 | 1,644,000 |
Accounting Standards Update 2013-11 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $0 |
Regulatory_Matters_Details
Regulatory Matters (Details) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | |
Oct. 31, 2014 | Jan. 31, 2015 | Sep. 30, 2014 | Feb. 28, 2015 | |
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Regulatory assets | $29,088,000 | $12,595,000 | ||
Robeson LNG Development Cost [Member] | ||||
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Regulatory assets | 917,000 | 783,000 | ||
Environmental Restoration Costs [Member] | ||||
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Regulatory assets | 1,568,000 | 1,554,000 | ||
NORTH CAROLINA | ||||
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Capital Investments In Integrity and Safety Projects | 241,900,000 | |||
TENNESSEE | ||||
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Capital Investments In Integrity and Safety Projects | 54,000,000 | |||
North Carolina Utilities Commission [Member] | NCUC Authorized IMR Adjustment January 2015 [Member] | ||||
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Public Utilities Approved Rate Increase (Decrease) Amount | 26,600,000 | |||
Public Service Commission of South Carolina [Member] | Settlement With Office of Regulatory Staff October 2014 [Member] | ||||
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Public Utilities, Approved Return on Equity, Percentage | 10.20% | |||
Public Service Commission of South Carolina [Member] | Settlement With Office of Regulatory Staff October 2014 [Member] | Robeson LNG Development Cost [Member] | ||||
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Regulatory assets | 500,000 | |||
Amortization Time Period For Specified Expenses | 1 year | |||
Regulatory Current Asset, End Date for Recovery | 10/31/15 | |||
Public Service Commission of South Carolina [Member] | Settlement With Office of Regulatory Staff October 2014 [Member] | Environmental Restoration Costs [Member] | ||||
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Regulatory assets | 100,000 | |||
Amortization Time Period For Specified Expenses | 1 year | |||
Regulatory Current Asset, End Date for Recovery | 31-Oct-15 | |||
Tennessee Regulatory Authority [Member] | Adjustment Filed August 2013 [Member] | ||||
Public Utilities, Rate Matters, Requested [Abstract] | ||||
Public Utilities Requested Rate Increase (Decrease) Amount | 3,700,000 | |||
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Expense Related to Actual Cost Adjustment | 1,700,000 | |||
Tennessee Regulatory Authority [Member] | Tennessee Requested ACA December 2014 [Member] | ||||
Public Utilities, Rate Matters, Requested [Abstract] | ||||
Public Utilities Requested Rate Increase (Decrease) Amount | 2,000,000 | |||
Tennessee Regulatory Authority [Member] | TRA Approved ACA Adjustment January 2015 [Member] | ||||
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Public Utilities Approved Rate Increase (Decrease) Amount | 2,000,000 | |||
Tennessee Regulatory Authority [Member] | Amortization And Refund For Excess Deferred Taxes [Member] | ||||
Public Utilities, Rate Matters, Requested [Abstract] | ||||
Public Utilities Requested Rate Increase (Decrease) Amount | -4,700,000 | |||
Proposed Amortization Time Period For Specified Expenses | 3 years | |||
Tennessee Regulatory Authority [Member] | Tennessee Ruling Compressed Natural Gas February 2015 [Member] | ||||
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Deferral CNG Equipment In Utility Rate Base | 4,700,000 | |||
Subsequent Event [Member] | Tennessee Regulatory Authority [Member] | TRA Approved IMR Adjustment February 2015 [Member] | ||||
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Public Utilities Approved Rate Increase (Decrease) Amount | 6,500,000 | |||
Public Utilities, Disclosure of Rate Matters | In December 2014, we filed a petition with the TRA seeking authority to collect through adjusted rates an additional $6.5 million in annual IMR margin revenues effective January 2015 based on $54 million of capital investments in integrity and safety projects over the twelve-month period ended October 31, 2014. In January 2015, the TRA accepted and approved the requested IMR rate adjustment and issued its written order in February 2015. | |||
Subsequent Event [Member] | Tennessee Regulatory Authority [Member] | Tennessee Ruling Compressed Natural Gas February 2015 [Member] | ||||
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Public Utilities, Disclosure of Rate Matters | In September 2014, we filed a petition with the TRA seeking authority to implement a compressed natural gas (CNG) infrastructure rider to recover the costs of our capital investments in infrastructure and equipment associated with this alternative motor vehicle transportation fuel. We proposed that the tariff rider be effective October 1, 2014 with an initial rate adjustment on November 1, 2014 based on capital expenditures incurred through June 2014 and for rates to be updated annually outside of general rate cases for the return of and on these capital investments. In November 2014, the TRA consolidated this docket with a separate petition we filed seeking modifications to our tariff regarding service to customers using natural gas as a motor fuel. A hearing on this matter was held in January 2015. In February 2015, the TRA (1) denied approval of the proposed tariff rider, (2) ruled that our retail CNG motor fuel service should be unregulated and no longer provided under our regulated tariff, and (3) approved the proposed modification to our tariff providing natural gas for motor fuel purposes at customer premises. The TRA indicated that we may seek recovery of our prior investments in CNG equipment of $4.7 million since our last rate proceeding in utility rate base in our next general rate case proceeding as the investments were made in good faith under the assumption retail CNG motor fuel would be a regulated service. We are waiting on the TRA's written order. | |||
Margin [Member] | Public Service Commission of South Carolina [Member] | Settlement With Office of Regulatory Staff October 2014 [Member] | ||||
Public Utilities, Rate Matters, Approved [Abstract] | ||||
Public Utilities Approved Rate Increase (Decrease) Amount | ($2,900,000) |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net Income | $92,978 | $97,572 |
Average shares of common stock outstanding for basic earnings per share | 78,620 | 76,988 |
Contingently issuable shares under incentive compensation plans | 325 | 339 |
Average shares of dilutive stock | 78,945 | 77,327 |
Basic (usd per share) | $1.18 | $1.27 |
Diluted (usd per share) | $1.18 | $1.26 |
Longterm_Debt_Instruments_Deta
Long-term Debt Instruments (Details) (North Carolina Utilities Commission [Member], USD $) | 3 Months Ended |
Jan. 31, 2015 | |
North Carolina Utilities Commission [Member] | |
Debt Instrument [Line Items] | |
Public Utilities, Approved Debt Equity Securities Limit, Amount | $1,000,000,000 |
Debt and Equity Shelf Registration, Term | 3 years |
Public Utilities, Approved Debt Equity Securities Limit, Amount Remaining | $750,000,000 |
Short_Term_Debt_Instruments_De
Short Term Debt Instruments (Details) (USD $) | 3 Months Ended | |
Jan. 31, 2015 | Oct. 31, 2014 | |
Line Of Credit Facility [Line Items] | ||
Credit Facility Current Borrowing Capacity | $850,000,000 | |
Maximum Facility | 850,000,000 | |
Commercial Paper | 480,000,000 | 355,000,000 |
Revolving Credit Facility [Member] | ||
Line Of Credit Facility [Line Items] | ||
Credit Facility Current Borrowing Capacity | 850,000,000 | |
Line of Credit Facility, Expiration Date | 1-Oct-17 | |
Line Of Credit Facility Frequency Of Commitment Fee Payment | annual | |
Line of Credit Facility, Commitment Fee Description | $35,000 plus 8.5 basis points | |
Credit Facility Interest Rate Description | 30-day London Interbank Offered Rate (LIBOR) plus from 75 to 125 basis points | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.09% | |
Line of Credit Facility, Commitment Fee Amount | 35,000 | |
Credit Facility Covenant Terms | total debt to total capitalization of no greater than 70% | |
Credit Facility Covenant Compliance | actual ratio was 58% | |
Debt Covenant Total Debt To Total Capital Ratio | 70.00% | |
Ratio of Indebtedness to Net Capital | 0.58 | |
Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |
Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
Letter Of Credit [Member] | ||
Line Of Credit Facility [Line Items] | ||
Credit Facility Current Borrowing Capacity | 10,000,000 | 10,000,000 |
Letters of Credit Outstanding, Amount | 1,700,000 | 1,800,000 |
Commercial Paper [Member] | ||
Line Of Credit Facility [Line Items] | ||
Credit Facility Interest Rate Description | interest based on, among other things, the size and maturity date of the note, the frequency of the issuance and our credit ratings, plus a spread of 5 basis points | |
Short Term Borrowings Term | $850 million unsecured CP program that is backstopped by the revolving syndicated credit facility. The amounts outstanding under the revolving syndicated credit facility and the CP program, either individually or in the aggregate, cannot exceed $850 million. The notes issued under the CP program may have maturities not to exceed 397 days from the date of issuance and bear interest based on, among other things, the size and maturity date of the note, the frequency of the issuance and our credit ratings, plus a spread of 5 basis points. Any borrowings under the CP program rank equally with our other unsecured debt. | |
Maximum Number Of Possible Days Outstanding For Commercial Paper Program | 397 days | |
Commercial Paper | 480,000,000 | 355,000,000 |
Weighted Average Interest Rate | 0.21% | 0.17% |
Credit Facility Minimum Amount Outstanding During Period | 355,000,000 | |
Credit Facility Maximum Amount Outstanding During Period | $580,000,000 | |
Commercial Paper [Member] | Base Rate [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.05% | |
Commercial Paper [Member] | Minimum [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt Instrument, Term | 14 days | |
Line of Credit Facility Interest Rate During Period | 0.15% | |
Commercial Paper [Member] | Maximum [Member] | ||
Line Of Credit Facility [Line Items] | ||
Debt Instrument, Term | 21 days | |
Line of Credit Facility Interest Rate During Period | 0.30% | |
Commercial Paper [Member] | Weighted Average [Member] | ||
Line Of Credit Facility [Line Items] | ||
Line of Credit Facility Interest Rate During Period | 0.21% |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
Share data in Thousands, except Per Share data, unless otherwise specified | Jan. 07, 2015 | Jan. 31, 2015 | Jan. 31, 2014 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income from equity method investments | $8,265,000 | $9,941,000 | |
Income taxes | -3,264,000 | -3,728,000 | |
Net income | 92,978,000 | 97,572,000 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common Stock, Shares, Outstanding, Beginning Balance | 78,531 | ||
Common Stock, Value, Issued, Beginning Balance | 636,835,000 | ||
Issued to participants in the Employee Stock Purchase Plan (ESPP) (in shares) | 7 | ||
Issued to participants in the Employee Stock Purchase Plan (ESPP) | 279,000 | ||
Issued to participants in the Dividend Reinvestment and Stock Purchase Plan (in shares) | 126 | ||
Issued to participants in the Dividend Reinvestment and Stock Purchase Plan | 4,781,000 | ||
Issued to participants in the Incentive Compensation Plan (ICP) (in shares) | 103 | ||
Issued to participants in the Incentive Compensation Plan (ICP) | 3,935,000 | ||
Costs from issuance of common stock | -137,000 | ||
Common Stock, Shares, Outstanding, Ending Balance | 78,767 | ||
Common Stock, Value, Issued, Ending Balance | 645,693,000 | ||
ATM Sales Agreement Aggregate Amount | 170,000,000 | ||
ATM Sales Agreement Commission Percentage | 1.50% | ||
Cash dividends paid per share of common stock (usd per share) | $0.32 | $0.31 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated OCIL beginning balance, net of tax | -237,000 | -284,000 | |
Total other comprehensive income (loss) | -827,000 | 311,000 | |
Accumulated OCIL ending balance, net of tax | -1,064,000 | 27,000 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income | 117,000 | 137,000 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
OCIL before reclassifications, net of tax | -944,000 | 174,000 | |
Amounts reclassified from accumulated OCIL, net of tax | 117,000 | 137,000 | |
Total other comprehensive income (loss) | -827,000 | 311,000 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income from equity method investments | 192,000 | 225,000 | |
Income taxes | -75,000 | -88,000 | |
Net income | 117,000 | 137,000 | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Total other comprehensive income (loss) | 0 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income from equity method investments | 0 | ||
Income taxes | 0 | ||
Net income | $0 |
Marketable_Securities_Details
Marketable Securities (Details) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investment Measurement [Line Items] | ||
Current trading securities (cost) | $136 | $128 |
Noncurrent trading securities (cost) | 4,078 | 3,045 |
Current trading securities (fair value) | 198 | 214 |
Noncurrent trading securities (fair value) | 4,543 | 3,727 |
Total trading securities (cost) | 4,214 | 3,173 |
Total trading (fair value) | 4,741 | 3,941 |
Money markets [Member] | ||
Investment Measurement [Line Items] | ||
Current trading securities (cost) | 45 | 22 |
Noncurrent trading securities (cost) | 479 | 447 |
Current trading securities (fair value) | 45 | 22 |
Noncurrent trading securities (fair value) | 479 | 447 |
Total trading (fair value) | 524 | 469 |
Mutual funds [Member] | ||
Investment Measurement [Line Items] | ||
Current trading securities (cost) | 91 | 106 |
Noncurrent trading securities (cost) | 3,599 | 2,598 |
Current trading securities (fair value) | 153 | 192 |
Noncurrent trading securities (fair value) | 4,064 | 3,280 |
Total trading (fair value) | $4,217 | $3,472 |
Financial_Instruments_Related_2
Financial Instruments & Related Fair Value (Details) (USD $) | 3 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2014 | |
MMBTU | MMBTU | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long gas purchase options providing total coverage | 30,300,000 | 29,200,000 | |
Fair value measurement transfers between levels activity | $0 | $0 | |
Derivative Liability | 0 | 0 | |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | |
ASSETS | |||
Derivatives held for utility operations | 1,013,000 | 4,898,000 | |
Debt and equity securities held as trading securities | 4,741,000 | 3,941,000 | |
Total fair value assets | 5,754,000 | 8,839,000 | |
Long-term debt, carry amount | 1,425,000,000 | 1,425,000,000 | |
Long-term debt, fair value | 1,711,196,000 | 1,617,453,000 | |
Discount on issuance of notes | 564,000 | 570,000 | |
Current Assets, Gas purchase derivative assets | 1,013,000 | 4,898,000 | |
Gas purchase options | -558,000 | 4,529,000 | |
Amount Of Gain (Loss) Deferred Under PGA Procedures | -558,000 | 4,529,000 | |
Percentage of annual gas costs approved for recovery under TIP | 1.00% | ||
Concentration Risk [Line Items] | |||
Concentration risk, description | “Trade accounts receivable†in “Current Assets†in the Condensed Consolidated Balance Sheets | ||
Concentration risk, customer | We are exposed to credit risk as a result of transactions for the purchase and sale of natural gas and related products and services and management agreements of our transportation capacity, storage capacity and supply contracts with major companies in the energy industry and within our utility operations serving industrial, commercial, power generation, residential and municipal energy consumers. These transactions principally occur in the eastern, gulf coast and mid-west regions of the United States. We believe that this geographic concentration does not contribute significantly to our overall exposure to credit risk. Credit risk associated with trade accounts receivable for the natural gas distribution segment is mitigated by the large number of individual customers and diversity in our customer base. We enter into contracts with third parties to buy and sell natural gas. A significant portion of these transactions are with, or are associated with, energy producers, utility companies, off-system municipalities and natural gas marketers. | ||
Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk amount | 32,600,000 | ||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% | ||
Money markets [Member] | |||
ASSETS | |||
Debt and equity securities held as trading securities | 524,000 | 469,000 | |
Mutual funds [Member] | |||
ASSETS | |||
Debt and equity securities held as trading securities | 4,217,000 | 3,472,000 | |
Quoted Prices in Active Markets (Level 1) [Member] | |||
ASSETS | |||
Derivatives held for utility operations | 1,013,000 | 4,898,000 | |
Total fair value assets | 5,754,000 | 8,839,000 | |
Quoted Prices in Active Markets (Level 1) [Member] | Money markets [Member] | |||
ASSETS | |||
Debt and equity securities held as trading securities | 524,000 | 469,000 | |
Quoted Prices in Active Markets (Level 1) [Member] | Mutual funds [Member] | |||
ASSETS | |||
Debt and equity securities held as trading securities | 4,217,000 | 3,472,000 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
ASSETS | |||
Derivatives held for utility operations | 0 | 0 | |
Total fair value assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Money markets [Member] | |||
ASSETS | |||
Debt and equity securities held as trading securities | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Mutual funds [Member] | |||
ASSETS | |||
Debt and equity securities held as trading securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
ASSETS | |||
Derivatives held for utility operations | 0 | 0 | |
Total fair value assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Money markets [Member] | |||
ASSETS | |||
Debt and equity securities held as trading securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Mutual funds [Member] | |||
ASSETS | |||
Debt and equity securities held as trading securities | $0 | $0 |
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | |
Number Of Regulatory Commissions | 3 |
Site Contingency [Line Items] | |
Accrual For Environmental Loss Contingencies Gross | 1.1 |
Pipeline And Storage Capacity Contacts [Member] | Maximum [Member] | |
Long-term Purchase Commitment [Line Items] | |
Long term purchase commitment time period | 21 years |
Gas Supply Contracts [Member] | Maximum [Member] | |
Long-term Purchase Commitment [Line Items] | |
Long term purchase commitment time period | 2 years |
Telecommunications And Technology Outsourcing Contracts [Member] | Maximum [Member] | |
Long-term Purchase Commitment [Line Items] | |
Long term purchase commitment time period | 5 years |
Letter Of Credit [Member] | |
Guarantor Obligations [Line Items] | |
Total contingent obligation | 1.7 |
Surety Bond [Member] | |
Guarantor Obligations [Line Items] | |
Total contingent obligation | 6.4 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended |
Jan. 31, 2015 | Nov. 30, 2014 | Jan. 31, 2014 | Jan. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Deferred compensation plan liability | $4,800,000 | |||
Qualified Pension Plan [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 3,050,000 | 2,750,000 | ||
Interest cost | 2,975,000 | 2,950,000 | ||
Expected return on plan assets | -5,925,000 | -5,700,000 | ||
Amortization of prior service (credit) cost | -550,000 | -550,000 | ||
Amortization of actuarial loss | 2,050,000 | 1,875,000 | ||
Total | 1,600,000 | 1,325,000 | ||
Employer contribution amount | 10,000,000 | |||
Non Qualified Pension [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 0 | 0 | ||
Interest cost | 52,000 | 45,000 | ||
Expected return on plan assets | 0 | 0 | ||
Amortization of prior service (credit) cost | 58,000 | 20,000 | ||
Amortization of actuarial loss | 21,000 | 12,000 | ||
Total | 131,000 | 77,000 | ||
Additional contribution amounts | 383,000 | |||
Employer contribution amount | 100,000 | |||
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 295,000 | 277,000 | ||
Interest cost | 369,000 | 362,000 | ||
Expected return on plan assets | -459,000 | -457,000 | ||
Amortization of prior service (credit) cost | 0 | 0 | ||
Amortization of actuarial loss | 7,000 | 0 | ||
Total | 212,000 | 182,000 | ||
Additional contribution amounts | 1,500,000 | |||
Pension Plan [Member] | MPP Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer contribution to plan | 1,400,000 | |||
Other Postretirement Benefit Plan [Member] | DCR Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer contribution to plan | 500,000 | |||
Other Postretirement Benefit Plan [Member] | Voluntary Deferral Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer contribution to plan | $0 |
Employee_ShareBased_Plans_Deta
Employee Share-Based Plans (Details) (USD $) | 3 Months Ended | 1 Months Ended | 0 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2014 | Dec. 31, 2011 | Dec. 15, 2014 | Oct. 31, 2014 | Dec. 12, 2014 | |
Employee Share Based Plans Details [Line Items] | ||||||
Maximum allowable withholdings | 50.00% | |||||
Compensation expense | $2,230,000 | $2,100,000 | ||||
Liability | 10,093,000 | 15,130,000 | ||||
ESPP exercise price as a percent | 95.00% | |||||
Stock Compensation Plan [Member] | ||||||
Employee Share Based Plans Details [Line Items] | ||||||
Performance period | 3 years | |||||
Retention Stock Unit Award President And Cheif Executive Officer [Member] | Stock Compensation Plan [Member] | ||||||
Employee Share Based Plans Details [Line Items] | ||||||
Retention stock unit award vesting period | 5 years | |||||
Unvested Shares Issued To CEO | 64,700 | |||||
Incentive Compensation Plan Percentage Of Common Stock Vested | In accordance with the vesting schedule, 20% of the units vested on December 15, 2014, 30% of the units vest on December 15, 2015 and 50% of the units vest on December 15, 2016 | |||||
Vested on December 15, 2014 | Retention Stock Unit Award President And Cheif Executive Officer [Member] | Stock Compensation Plan [Member] | ||||||
Employee Share Based Plans Details [Line Items] | ||||||
Common stock vesting percentage | 20.00% | |||||
Stock Award Vested, Shares, Gross | 14,461 | |||||
Payments Related to Tax Withholding for Share-based Compensation | $300,000 | |||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 7,231 | |||||
Share Price | $37.89 | |||||
Vest on December 15, 2015 | Retention Stock Unit Award President And Cheif Executive Officer [Member] | Stock Compensation Plan [Member] | ||||||
Employee Share Based Plans Details [Line Items] | ||||||
Common stock vesting percentage | 30.00% | |||||
Vest on December 15, 2016 | Retention Stock Unit Award President And Cheif Executive Officer [Member] | Stock Compensation Plan [Member] | ||||||
Employee Share Based Plans Details [Line Items] | ||||||
Common stock vesting percentage | 50.00% |
Equity_Method_Investments_Deta
Equity Method Investments (Details) (USD $) | 3 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Contributions to equity method investments | $10,019,000 | $9,960,000 | |
Cardinal Pipeline Company [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Membership interest percentage | 21.49% | ||
Related party costs | 2,214,000 | 2,240,000 | |
Trade accounts payable | 743,000 | 747,000 | |
Pine Needle Company [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Membership interest percentage | 45.00% | ||
Related party costs | 2,936,000 | 2,793,000 | |
Trade accounts payable | 989,000 | 989,000 | |
South Star Energy Services [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Membership interest percentage | 15.00% | ||
Operating revenues | 396,000 | 432,000 | |
Trade accounts receivable | 309,000 | 460,000 | |
Hardy Storage [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Membership interest percentage | 50.00% | ||
Related party costs | 2,322,000 | 2,425,000 | |
Trade accounts payable | 774,000 | 774,000 | |
Constitution Pipeline Company [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Membership interest percentage | 24.00% | ||
Estimated Pipeline Costs Including AFUDC | 875,000,000 | ||
Estimated Pipeline Costs Excluding AFUDC | 785,000,000 | ||
Contributions to equity method investments | 4,900,000 | ||
Total equity contribution for the project | 58,500,000 | ||
Pipeline Target In Service Date | second half of 2016 | ||
Atlantic Coast Pipeline [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Membership interest percentage | 10.00% | ||
Contributions to equity method investments | 5,100,000 | ||
Pipeline Target In Service Date | late 2018 | ||
Long term purchase commitment time period | 20 years | ||
Estimated Percentage Project Financing | 70.00% | ||
Minimum [Member] | Atlantic Coast Pipeline [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Estimated Pipeline Development And Construction Costs | 4,500,000,000 | ||
Maximum [Member] | Atlantic Coast Pipeline [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Estimated Pipeline Development And Construction Costs | $5,000,000,000 |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (Variable Interest Entity, Not Primary Beneficiary [Member], USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ||
Total equity method investments in non-utility activities | $184,478 | $170,171 |
Cardinal Pipeline Company [Member] | ||
Variable Interest Entity [Line Items] | ||
Total equity method investments in non-utility activities | 15,828 | 16,073 |
Pine Needle Company [Member] | ||
Variable Interest Entity [Line Items] | ||
Total equity method investments in non-utility activities | 18,228 | 18,689 |
South Star Energy Services [Member] | ||
Variable Interest Entity [Line Items] | ||
Total equity method investments in non-utility activities | 44,080 | 40,965 |
Hardy Storage [Member] | ||
Variable Interest Entity [Line Items] | ||
Total equity method investments in non-utility activities | 37,925 | 37,179 |
Constitution Pipeline Company [Member] | ||
Variable Interest Entity [Line Items] | ||
Total equity method investments in non-utility activities | 63,489 | 57,255 |
Atlantic Coast Pipeline [Member] | ||
Variable Interest Entity [Line Items] | ||
Total equity method investments in non-utility activities | $4,928 | $10 |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | ||
segment | ||||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 3 | |||
Segment Reporting Information [Abstract] | ||||
Revenues from external customers | $607,271 | [1] | $657,733 | [1] |
Margin | 270,070 | 261,512 | ||
Operations and maintenance expenses | 66,219 | 60,668 | ||
Income from equity method investments | 8,265 | 9,941 | ||
Operating income (loss) before income taxes | 161,878 | 162,012 | ||
Income before income taxes for reportable segments | 152,514 | 161,102 | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Utility income taxes | -56,272 | -59,802 | ||
Operating income | 105,758 | 102,319 | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Income before income taxes for reportable segments | 152,514 | 161,102 | ||
Income taxes | -59,536 | -63,530 | ||
Net Income | 92,978 | 97,572 | ||
Regulated Operation [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Revenues from external customers | 607,271 | 657,733 | ||
Margin | 270,070 | 261,512 | ||
Operations and maintenance expenses | 66,150 | 60,639 | ||
Income from equity method investments | 0 | 0 | ||
Operating income (loss) before income taxes | 162,030 | 162,121 | ||
Income before income taxes for reportable segments | 144,401 | 151,269 | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Income before income taxes for reportable segments | 144,401 | 151,269 | ||
Non Utility Regulated Activities [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Revenues from external customers | 0 | 0 | ||
Margin | 0 | 0 | ||
Operations and maintenance expenses | 31 | 6 | ||
Income from equity method investments | 3,771 | 3,107 | ||
Operating income (loss) before income taxes | -31 | -7 | ||
Income before income taxes for reportable segments | 3,740 | 3,101 | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Segment Operating Income Before Income Taxes | 31 | 7 | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Income before income taxes for reportable segments | 3,740 | 3,101 | ||
Non Utility Unregulated Activities [Member] | ||||
Segment Reporting Information [Abstract] | ||||
Revenues from external customers | 0 | 0 | ||
Margin | 0 | 0 | ||
Operations and maintenance expenses | 38 | 23 | ||
Income from equity method investments | 4,494 | 6,834 | ||
Operating income (loss) before income taxes | -121 | -102 | ||
Income before income taxes for reportable segments | 4,373 | 6,732 | ||
Segment Reporting Information, Operating Income (Loss) [Abstract] | ||||
Segment Operating Income Before Income Taxes | 121 | 102 | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||||
Income before income taxes for reportable segments | $4,373 | $6,732 | ||
[1] | See Note 12 for amounts attributable to affiliates. |