UNITED STATES | |
SECURITIES AND EXCHANGE COMMISSION | |
Washington, D.C. 20549 | |
FORM 10-Q | |
QUARTERLY REPORT PURSUANT TO SECTION 13 OF | |
THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Quarterly Period Ended March 31, 2016 | |
Commission File Number 1-14174 | |
AGL RESOURCES INC. | |
Ten Peachtree Place NE, Atlanta, Georgia 30309 | |
404-584-4000 | |
Georgia | 58-2210952 |
(State of incorporation) | (I.R.S. Employer Identification No.) |
AGL Resources Inc. (1) has filed all reports required to be filed by Section 13 of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | |
AGL Resources Inc. has submitted electronically and posted on its corporate website every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months. |
AGL Resources Inc. is a large accelerated filer and is not a shell company. |
The number of shares of AGL Resources Inc.’s common stock, $5.00 Par Value, outstanding as of April 29, 2016, was 120,680,030. |
Page | ||
Item Number. | ||
GLOSSARY OF KEY TERMS | |
2015 Form 10-K | Our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on February 11, 2016 |
AGL Capital | AGL Capital Corporation |
AGL Credit Facility | $1.3 billion credit agreement entered into by AGL Capital to support its commercial paper program |
AGL Resources | AGL Resources Inc., together with its consolidated subsidiaries |
Atlanta Gas Light | Atlanta Gas Light Company |
Atlantic Coast Pipeline | Atlantic Coast Pipeline, LLC |
Bcf | Billion cubic feet |
Central Valley | Central Valley Gas Storage, LLC |
CUB | Citizens Utility Board |
EBIT | Earnings before interest and taxes, the primary measure of our reportable segments’ profit or loss, which includes operating income and other income and excludes interest on debt and income tax expense |
ERC | Environmental remediation costs |
FASB | Financial Accounting Standards Board |
FERC | Federal Energy Regulatory Commission |
Fitch | Fitch Ratings |
Florida Commission | Florida Public Service Commission, the state regulatory agency for Florida City Gas |
GAAP | Accounting principles generally accepted in the United States of America |
Georgia Commission | Georgia Public Service Commission, the state regulatory agency for Atlanta Gas Light |
Golden Triangle | Golden Triangle Storage, Inc. |
Heating Degree Days | A measure of weather, calculated when the average daily temperatures are less than 65 degrees Fahrenheit |
Heating Season | The period from November through March when natural gas usage and operating revenues are generally higher |
Horizon Pipeline | Horizon Pipeline Company, LLC |
Illinois Commission | Illinois Commerce Commission, the state regulatory agency for Nicor Gas |
Jefferson Island | Jefferson Island Storage & Hub, LLC |
LIFO | Last-in, first-out |
LOCOM | Lower of weighted average cost or current market price |
Marketers | Marketers selling retail natural gas in Georgia and certificated by the Georgia Commission |
Maryland Commission | Maryland Public Service Commission, the state regulatory agency for Elkton Gas |
Merger Agreement | Agreement and Plan of Merger entered into on August 23, 2015 by Southern Company, AMS Corp., a subsidiary of Southern Company, and AGL Resources |
MGP | Manufactured Gas Plant |
Moody’s | Moody’s Investors Service |
New Jersey BPU | New Jersey Board of Public Utilities, the state regulatory agency for Elizabethtown Gas |
Nicor Gas | Northern Illinois Gas Company, doing business as Nicor Gas Company |
Nicor Gas Credit Facility | $700 million credit facility entered into by Nicor Gas to support its commercial paper program |
NYMEX | New York Mercantile Exchange, Inc. |
OCI | Other comprehensive income |
Operating margin | A non-GAAP measure of income, calculated as operating revenues minus cost of goods sold and revenue tax expense |
PennEast Pipeline | PennEast Pipeline Company, LLC |
PGA | Purchased gas adjustment |
Piedmont | Piedmont Natural Gas Company, Inc. |
Pivotal Utility | Pivotal Utility Holdings, Inc., doing business as Elizabethtown Gas, Elkton Gas and Florida City Gas |
PRP | Pipeline Replacement Program, Atlanta Gas Light's 15-year infrastructure replacement program, which ended in December 2013 |
S&P | Standard & Poor’s Ratings Services |
SEC | Securities and Exchange Commission |
Sequent | Sequent Energy Management, L.P. |
Southern Company | The Southern Company |
SouthStar | SouthStar Energy Services, LLC |
Triton | Triton Container Investments, LLC |
U.S. | The United States of America |
VaR | Value-at-risk |
VIE | Variable interest entity |
Virginia Commission | Virginia State Corporation Commission, the state regulatory agency for Virginia Natural Gas |
Virginia Natural Gas | Virginia Natural Gas, Inc. |
WACOG | Weighted average cost of gas |
As of | ||||||||||||
In millions, except share and per share amounts | March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 20 | $ | 19 | $ | 41 | ||||||
Receivables | ||||||||||||
Natural gas, unbilled revenues and other | 564 | 516 | 834 | |||||||||
Energy marketing | 365 | 445 | 611 | |||||||||
Less allowance for uncollectible accounts | 36 | 29 | 48 | |||||||||
Total receivables, net | 893 | 932 | 1,397 | |||||||||
Inventories | 335 | 651 | 302 | |||||||||
Derivative instruments, including cash collateral | 160 | 206 | 189 | |||||||||
Prepaid expenses | 62 | 218 | 38 | |||||||||
Regulatory assets | 50 | 68 | 63 | |||||||||
Other | 17 | 21 | 49 | |||||||||
Total current assets | 1,537 | 2,115 | 2,079 | |||||||||
Long-term assets and other deferred debits | ||||||||||||
Property, plant and equipment | 12,777 | 12,566 | 11,689 | |||||||||
Less accumulated depreciation | 2,833 | 2,775 | 2,515 | |||||||||
Property, plant and equipment, net | 9,944 | 9,791 | 9,174 | |||||||||
Goodwill | 1,813 | 1,813 | 1,827 | |||||||||
Regulatory assets | 661 | 670 | 634 | |||||||||
Intangible assets | 105 | 109 | 116 | |||||||||
Other | 276 | 256 | 289 | |||||||||
Total long-term assets and other deferred debits | 12,799 | 12,639 | 12,040 | |||||||||
Total assets | $ | 14,336 | $ | 14,754 | $ | 14,119 | ||||||
Current liabilities | ||||||||||||
Short-term debt | $ | 557 | $ | 1,010 | $ | 526 | ||||||
Current portion of long-term debt | 470 | 545 | 75 | |||||||||
Energy marketing trade payables | 363 | 418 | 586 | |||||||||
Other accounts payable – trade | 250 | 255 | 285 | |||||||||
Accrued expenses | 231 | 200 | 259 | |||||||||
Regulatory liabilities | 159 | 134 | 168 | |||||||||
Customer deposits and credit balances | 141 | 165 | 109 | |||||||||
Accrued environmental remediation liabilities | 68 | 67 | 93 | |||||||||
Derivative instruments, including cash collateral | 64 | 44 | 48 | |||||||||
Temporary LIFO liquidation | 48 | — | 87 | |||||||||
Current deferred income taxes | 20 | 31 | — | |||||||||
Other | 118 | 131 | 135 | |||||||||
Total current liabilities | 2,489 | 3,000 | 2,371 | |||||||||
Long-term liabilities and other deferred credits | ||||||||||||
Long-term debt | 3,273 | 3,275 | 3,505 | |||||||||
Accumulated deferred income taxes | 1,921 | 1,912 | 1,738 | |||||||||
Regulatory liabilities | 1,632 | 1,611 | 1,612 | |||||||||
Accrued pension and retiree welfare benefits | 513 | 515 | 526 | |||||||||
Accrued environmental remediation liabilities | 355 | 364 | 326 | |||||||||
Other | 83 | 102 | 77 | |||||||||
Total long-term liabilities and other deferred credits | 7,777 | 7,779 | 7,784 | |||||||||
Total liabilities and other deferred credits | 10,266 | 10,779 | 10,155 | |||||||||
Commitments, guarantees and contingencies (see Note 11) | ||||||||||||
Contingently redeemable noncontrolling interest | 38 | — | — | |||||||||
Equity | ||||||||||||
Common stock, $5 par value; 750,000,000 shares authorized; outstanding: 120,679,004 shares at March 31, 2016, 120,376,721 shares at December 31, 2015, and 119,927,459 shares at March 31, 2015 | 604 | 603 | 601 | |||||||||
Additional paid-in capital | 2,110 | 2,099 | 2,090 | |||||||||
Retained earnings | 1,539 | 1,421 | 1,444 | |||||||||
Accumulated other comprehensive loss | (213 | ) | (186 | ) | (201 | ) | ||||||
Treasury shares, at cost: 216,523 shares at March 31, 2016, December 31, 2015, and March 31, 2015 | (8 | ) | (8 | ) | (8 | ) | ||||||
Total common shareholders’ equity | 4,032 | 3,929 | 3,926 | |||||||||
Noncontrolling interest | — | 46 | 38 | |||||||||
Total equity | 4,032 | 3,975 | 3,964 | |||||||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 14,336 | $ | 14,754 | $ | 14,119 |
Three Months Ended March 31, | ||||||||
In millions, except per share amounts | 2016 | 2015 | ||||||
Operating revenues (includes revenue taxes of $40 and $56 for the three months ended March 31, 2016 and 2015, respectively) | $ | 1,334 | $ | 1,721 | ||||
Operating expenses | ||||||||
Cost of goods sold | 578 | 935 | ||||||
Operation and maintenance | 241 | 249 | ||||||
Depreciation and amortization | 102 | 97 | ||||||
Taxes other than income taxes | 62 | 76 | ||||||
Merger-related expenses | 3 | — | ||||||
Total operating expenses | 986 | 1,357 | ||||||
Operating income | 348 | 364 | ||||||
Other income | 3 | 3 | ||||||
Interest expense, net | (47 | ) | (44 | ) | ||||
Income before income taxes | 304 | 323 | ||||||
Income tax expense | 111 | 118 | ||||||
Net income | 193 | 205 | ||||||
Less net income attributable to noncontrolling interest | 11 | 12 | ||||||
Net income attributable to AGL Resources | $ | 182 | $ | 193 | ||||
Per common share information | ||||||||
Basic earnings per common share attributable to AGL Resources | $ | 1.52 | $ | 1.62 | ||||
Diluted earnings per common share attributable to AGL Resources | $ | 1.51 | $ | 1.62 | ||||
Cash dividends declared per common share | $ | 0.53 | $ | 0.51 | ||||
Weighted average number of common shares outstanding | ||||||||
Basic | 120.1 | 119.3 | ||||||
Diluted | 120.4 | 119.6 |
Three Months Ended March 31, | ||||||||
In millions | 2016 | 2015 | ||||||
Net income | $ | 193 | $ | 205 | ||||
Other comprehensive (loss) income, net of tax | ||||||||
Retirement benefit plans, net of tax | ||||||||
Reclassification of actuarial losses to net benefit cost (net of income tax of $2 and $2 for the three months ended March 31, 2016 and 2015, respectively) | 3 | 3 | ||||||
Retirement benefit plans, net | 3 | 3 | ||||||
Cash flow hedges, net of tax | ||||||||
Net derivative (loss) gain arising during the period (net of income tax of $16 and $1 for the three months ended March 31, 2016 and 2015, respectively) | (29 | ) | 2 | |||||
Reclassification of realized derivative gain to net income (net of income tax of less than $1 million) | (1 | ) | — | |||||
Cash flow hedges, net | (30 | ) | 2 | |||||
Other comprehensive (loss) income, net of tax | (27 | ) | 5 | |||||
Comprehensive income | 166 | 210 | ||||||
Less comprehensive income attributable to noncontrolling interest | 11 | 12 | ||||||
Comprehensive income attributable to AGL Resources | $ | 155 | $ | 198 |
AGL Resources Shareholders | |||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury shares | Noncontrolling interest | Total | |||||||||||||||||||||||||
In millions, except per share amounts | Shares | Amount | |||||||||||||||||||||||||||||
Balance as of December 31, 2014 | 119.6 | $ | 599 | $ | 2,087 | $ | 1,312 | $ | (206 | ) | $ | (8 | ) | $ | 44 | $ | 3,828 | ||||||||||||||
Net income | — | — | — | 193 | — | — | 12 | 205 | |||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 5 | — | — | 5 | |||||||||||||||||||||||
Dividends on common stock ($0.51 per share) | — | — | — | (61 | ) | — | — | — | (61 | ) | |||||||||||||||||||||
Distribution to noncontrolling interest | — | — | — | — | — | — | (18 | ) | (18 | ) | |||||||||||||||||||||
Stock granted, share-based compensation, net of forfeitures | — | — | (12 | ) | — | — | — | — | (12 | ) | |||||||||||||||||||||
Stock issued, dividend reinvestment plan | 0.1 | — | 3 | — | — | — | — | 3 | |||||||||||||||||||||||
Stock issued, share-based compensation, net of forfeitures | 0.2 | 2 | 10 | — | — | — | — | 12 | |||||||||||||||||||||||
Share-based compensation expense, net of tax | — | — | 2 | — | — | — | — | 2 | |||||||||||||||||||||||
Balance as of March 31, 2015 | 119.9 | $ | 601 | $ | 2,090 | $ | 1,444 | $ | (201 | ) | $ | (8 | ) | $ | 38 | $ | 3,964 |
AGL Resources Shareholders | |||||||||||||||||||||||||||||||
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Treasury shares | Noncontrolling interest | Total | |||||||||||||||||||||||||
In millions, except per share amounts | Shares | Amount | |||||||||||||||||||||||||||||
Balance as of December 31, 2015 | 120.4 | $ | 603 | $ | 2,099 | $ | 1,421 | $ | (186 | ) | $ | (8 | ) | $ | 46 | $ | 3,975 | ||||||||||||||
Net income attributable to AGL Resources | — | — | — | 182 | — | — | — | 182 | |||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (27 | ) | — | — | (27 | ) | |||||||||||||||||||||
Dividends on common stock ($0.53 per share) | — | — | — | (64 | ) | — | — | — | (64 | ) | |||||||||||||||||||||
Stock granted, share-based compensation, net of forfeitures | — | — | (9 | ) | — | — | — | — | (9 | ) | |||||||||||||||||||||
Stock issued, dividend reinvestment plan | — | — | 3 | — | — | — | — | 3 | |||||||||||||||||||||||
Stock issued, share-based compensation, net of forfeitures | 0.3 | 1 | 14 | — | — | — | — | 15 | |||||||||||||||||||||||
Share-based compensation expense, net of tax | — | — | 3 | — | — | — | — | 3 | |||||||||||||||||||||||
Reclassification of noncontrolling interest | — | — | — | — | — | — | (46 | ) | (46 | ) | |||||||||||||||||||||
Balance as of March 31, 2016 | 120.7 | $ | 604 | $ | 2,110 | $ | 1,539 | $ | (213 | ) | $ | (8 | ) | $ | — | $ | 4,032 |
Three Months Ended March 31, | ||||||||
In millions | 2016 | 2015 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 193 | $ | 205 | ||||
Adjustments to reconcile net income to net cash flow provided by operating activities | ||||||||
Depreciation and amortization | 102 | 97 | ||||||
Change in derivative instrument assets and liabilities | 51 | 33 | ||||||
Deferred income taxes | 15 | 5 | ||||||
Changes in certain assets and liabilities | ||||||||
Inventories, net of temporary LIFO liquidation | 364 | 501 | ||||||
Prepaid and miscellaneous taxes | 231 | 267 | ||||||
Energy marketing receivables and trade payables, net | 25 | (23 | ) | |||||
Accrued natural gas costs, net | — | 22 | ||||||
Trade payables, other than energy marketing | (8 | ) | (13 | ) | ||||
Receivables, other than energy marketing | (39 | ) | (24 | ) | ||||
Accrued expenses | (53 | ) | (54 | ) | ||||
Other, net | (40 | ) | 104 | |||||
Net cash flow provided by operating activities | 841 | 1,120 | ||||||
Cash flows from investing activities: | ||||||||
Expenditures for property, plant and equipment | (235 | ) | (188 | ) | ||||
Other, net | (3 | ) | 4 | |||||
Net cash flow used in investing activities | (238 | ) | (184 | ) | ||||
Cash flows from financing activities: | ||||||||
Net repayments of commercial paper | (453 | ) | (649 | ) | ||||
Payment of long-term debt | (75 | ) | (200 | ) | ||||
Dividends paid on common shares | (64 | ) | (61 | ) | ||||
Distribution to noncontrolling interest | (19 | ) | (18 | ) | ||||
Other, net | 9 | 2 | ||||||
Net cash flow used in financing activities | (602 | ) | (926 | ) | ||||
Net increase in cash and cash equivalents | 1 | 10 | ||||||
Cash and cash equivalents at beginning of period | 19 | 31 | ||||||
Cash and cash equivalents at end of period | $ | 20 | $ | 41 | ||||
Cash paid (received) during the period for | ||||||||
Interest | $ | 53 | $ | 57 | ||||
Income taxes | (132 | ) | (140 | ) |
Three Months Ended March 31, | ||||||||
In millions | 2016 | 2015 | ||||||
LOCOM adjustments | $ | 3 | $ | 10 |
In millions | Distribution operations | Retail operations | Midstream operations | Consolidated | ||||||||||||
Goodwill - March 31, 2015 | $ | 1,640 | $ | 173 | $ | 14 | $ | 1,827 | ||||||||
Impairment (1) | — | — | (14 | ) | (14 | ) | ||||||||||
Goodwill - December 31, 2015 | 1,640 | 173 | — | 1,813 | ||||||||||||
Goodwill - March 31, 2016 | $ | 1,640 | $ | 173 | $ | — | $ | 1,813 |
Three Months Ended March 31, | ||||||||
In millions, except per share amounts | 2016 | 2015 | ||||||
Net income attributable to AGL Resources | $ | 182 | $ | 193 | ||||
Denominator: | ||||||||
Basic weighted average number of shares outstanding (1) | 120.1 | 119.3 | ||||||
Effect of dilutive securities | 0.3 | 0.3 | ||||||
Diluted weighted average number of shares outstanding (2) | 120.4 | 119.6 | ||||||
Earnings per common share | ||||||||
Basic earnings per common share attributable to AGL Resources | $ | 1.52 | $ | 1.62 | ||||
Diluted earnings per common share attributable to AGL Resources | $ | 1.51 | $ | 1.62 |
(1) | Daily weighted average shares outstanding. |
(2) | Excludes all outstanding stock options whose effect would have been anti-dilutive. |
• | accounting for a share-based compensation performance target that could be achieved after the requisite service period; |
• | consolidation of other legal entities into our financial statements; |
• | accounting for fees paid in connection with arrangements with cloud-based software providers; and |
• | reducing the diversity in fair value measurements hierarchy disclosures. |
In millions | March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||
Regulatory assets | ||||||||||||
Recoverable ERC | $ | 21 | $ | 31 | $ | 37 | ||||||
Recoverable pension and retiree welfare benefit costs | 12 | 12 | 11 | |||||||||
Deferred natural gas costs | 2 | 6 | 7 | |||||||||
Recoverable seasonal rates | — | 10 | — | |||||||||
Other | 15 | 9 | 8 | |||||||||
Regulatory assets – current | 50 | 68 | 63 | |||||||||
Recoverable ERC | 364 | 370 | 331 | |||||||||
Recoverable pension and retiree welfare benefit costs | 111 | 113 | 108 | |||||||||
Recoverable regulatory infrastructure program costs | 83 | 83 | 73 | |||||||||
Long-term debt fair value adjustment | 64 | 66 | 72 | |||||||||
Other | 39 | 38 | 50 | |||||||||
Regulatory assets – long-term | 661 | 670 | 634 | |||||||||
Total regulatory assets | $ | 711 | $ | 738 | $ | 697 | ||||||
Regulatory liabilities | ||||||||||||
Accumulated removal costs | $ | 53 | $ | 53 | $ | 25 | ||||||
Bad debt over collection | 47 | 42 | 30 | |||||||||
Accrued natural gas costs | 20 | 24 | 53 | |||||||||
Deferred seasonal rates | 20 | — | 20 | |||||||||
Other | 19 | 15 | 40 | |||||||||
Regulatory liabilities – current | 159 | 134 | 168 | |||||||||
Accumulated removal costs | 1,551 | 1,538 | 1,524 | |||||||||
Bad debt over collection | 28 | 21 | 19 | |||||||||
Regulatory income tax liability | 26 | 27 | 27 | |||||||||
Unamortized investment tax credit | 19 | 20 | 22 | |||||||||
Other | 8 | 5 | 20 | |||||||||
Regulatory liabilities – long-term | 1,632 | 1,611 | 1,612 | |||||||||
Total regulatory liabilities | $ | 1,791 | $ | 1,745 | $ | 1,780 |
In millions | March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||
Atlanta Gas Light (1) | $ | 105 | $ | 103 | $ | 119 | ||||||
Virginia Natural Gas | 12 | 12 | 12 | |||||||||
Elizabethtown Gas | 4 | 4 | 2 | |||||||||
Nicor Gas | 3 | 3 | — | |||||||||
Total | $ | 124 | $ | 122 | $ | 133 |
(1) | In October 2015, Atlanta Gas Light received an order from the Georgia Commission, which included a final determination of the true-up recovery related to the PRP that allows Atlanta Gas Light to recover $144 million of the $178 million of incurred and allowed costs that were deferred for future recovery. |
In millions | # of sites | Probabilistic model cost estimates | Engineering-based estimates | Amount recorded | Expected costs over next 12 months | Cost recovery period | |||||||||||||
Illinois (1) | 26 | $200 - $457 | $ | 46 | $ | 246 | $ | 30 | As incurred | ||||||||||
New Jersey | 6 | 115 - 195 | 7 | 122 | 25 | 7 years | |||||||||||||
Georgia and Florida | 13 | 29 - 52 | 21 | 50 | 13 | 5 years | |||||||||||||
North Carolina (2) | 1 | n/a | 5 | 5 | — | No recovery | |||||||||||||
Total | 46 | $344 - $704 | $ | 79 | $ | 423 | $ | 68 |
(1) | Nicor Gas is responsible in whole or in part for 26 MGP sites, two of which have been remediated and their use is no longer restricted by the environmental condition of the property. Nicor Gas and Commonwealth Edison Company are parties to an agreement to cooperate in cleaning up residue at 23 of the sites. Nicor Gas’ allocated share of cleanup costs for these sites is 52%. |
(2) | We have no regulatory recovery mechanism for the site in North Carolina and there is no amount included within our regulatory assets. Changes in estimated costs are recognized in income during the period of change. |
March 31, 2016 | December 31, 2015 | March 31, 2015 | ||||||||||||||||||||||
In millions | Assets (1) | Liabilities | Assets (1) | Liabilities | Assets (1) | Liabilities | ||||||||||||||||||
Quoted prices in active markets (Level 1) | $ | — | $ | (96 | ) | $ | 53 | $ | (63 | ) | $ | — | $ | (106 | ) | |||||||||
Significant other observable inputs (Level 2) | 108 | (65 | ) | 122 | (46 | ) | 108 | (52 | ) | |||||||||||||||
Netting of counterparty offset and cash collateral | 69 | 96 | 33 | 63 | 104 | 106 | ||||||||||||||||||
Total carrying value (2) | $ | 177 | $ | (65 | ) | $ | 208 | $ | (46 | ) | $ | 212 | $ | (52 | ) |
(1) | Balances of $9 million at March 31, 2016, $10 million at December 31, 2015 and $1 million at March 31, 2015, associated with certain weather derivatives have been excluded, as they are accounted for based on intrinsic value rather than fair value. |
(2) | There were no significant unobservable inputs (Level 3) or significant transfers between Level 1, Level 2 or Level 3 for any of the dates presented. |
In millions | March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||
Long-term debt carrying amount (1) | $ | 3,743 | $ | 3,820 | $ | 3,580 | ||||||
Long-term debt fair value (2) | 4,156 | 4,066 | 4,102 |
(1) | The change in the March 31, 2015 balance is related to our adoption of new accounting guidance in 2015 that resulted in the reclassification of debt issuance costs from other long-term assets to offset the related debt balances in long-term debt. |
(2) | Fair value determined using Level 2 inputs. |
In Bcf (1) | March 31, 2016 (2) | December 31, 2015 | March 31, 2015 | ||||||
Cash flow hedges | 5 | 5 | 9 | ||||||
Not designated as hedges | 81 | (14 | ) | 231 | |||||
Total volumes | 86 | (9 | ) | 240 | |||||
Short position – cash flow hedges | (6 | ) | (6 | ) | (6 | ) | |||
Short position – not designated as hedges | (2,974 | ) | (3,089 | ) | (2,735 | ) | |||
Long position – cash flow hedges | 11 | 11 | 15 | ||||||
Long position – not designated as hedges | 3,055 | 3,075 | 2,966 | ||||||
Net long (short) position | 86 | (9 | ) | 240 |
(1) | Volumes related to Nicor Gas exclude variable-priced contracts, which are carried at fair value, but whose fair values are not directly impacted by changes in commodity prices. |
(2) | 99% of these contracts have durations of two years or less and 1% expire between two and five years. |
Three Months Ended March 31, | ||||||||
In millions | 2016 | 2015 | ||||||
Nicor Gas | $ | (2 | ) | $ | (3 | ) | ||
Elizabethtown Gas | (6 | ) | (4 | ) |
March 31, 2016 | December 31, 2015 | March 31, 2015 | ||||||||||||||||||||||||
In millions | Classification | Assets | Liabilities | Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||
Designated as cash flow hedges | ||||||||||||||||||||||||||
Natural gas contracts | Current | $ | 1 | $ | (4 | ) | $ | 3 | $ | (5 | ) | $ | — | $ | (6 | ) | ||||||||||
Natural gas contracts | Long-term | — | (1 | ) | — | (2 | ) | — | (1 | ) | ||||||||||||||||
Interest rate swap agreements | Current | — | (36 | ) | 9 | — | 1 | — | ||||||||||||||||||
Interest rate swap agreements | Long-term | — | — | — | — | 3 | — | |||||||||||||||||||
Total designated as cash flow hedges | $ | 1 | $ | (41 | ) | $ | 12 | $ | (7 | ) | $ | 4 | $ | (7 | ) | |||||||||||
Not designated as hedges | ||||||||||||||||||||||||||
Natural gas contracts | Current | $ | 419 | $ | (432 | ) | $ | 751 | $ | (672 | ) | $ | 557 | $ | (592 | ) | ||||||||||
Natural gas contracts | Long-term | 92 | (83 | ) | 179 | (187 | ) | 98 | (109 | ) | ||||||||||||||||
Total not designated as hedges | $ | 511 | $ | (515 | ) | $ | 930 | $ | (859 | ) | $ | 655 | $ | (701 | ) | |||||||||||
Gross amounts of recognized assets and liabilities (1) (2) | $ | 512 | $ | (556 | ) | $ | 942 | $ | (866 | ) | $ | 659 | $ | (708 | ) | |||||||||||
Gross amounts offset on our unaudited Condensed Consolidated Balance Sheets (2) | (326 | ) | 491 | (724 | ) | 820 | (446 | ) | 656 | |||||||||||||||||
Net amounts of assets and liabilities presented on our unaudited Condensed Consolidated Balance Sheets (3) | $ | 186 | $ | (65 | ) | $ | 218 | $ | (46 | ) | $ | 213 | $ | (52 | ) |
(1) | The gross amounts of recognized assets and liabilities are netted within our unaudited Condensed Consolidated Balance Sheets to the extent that we have netting arrangements with the counterparties. |
(2) | As required by the authoritative guidance related to derivatives and hedging, the gross amounts of recognized assets and liabilities do not include cash collateral held on deposit in broker margin accounts of $165 million as of March 31, 2016, $96 million as of December 31, 2015, and $210 million as of March 31, 2015. Cash collateral is included in the “Gross amounts offset on our unaudited Condensed Consolidated Balance Sheets” line of this table. |
(3) | As of March 31, 2016, December 31, 2015, and March 31, 2015, we held letters of credit from counterparties that under master netting arrangements would offset an insignificant portion of these assets. |
Three Months Ended March 31, | ||||||||
In millions | 2016 | 2015 | ||||||
Designated as cash flow hedges (1) | ||||||||
Natural gas contracts - net loss reclassified from OCI into cost of goods sold | $ | — | $ | (1 | ) | |||
Interest rate swaps - net gain reclassified from OCI into interest expense | 1 | 1 | ||||||
Total designated as cash flow hedges, net of tax | 1 | — | ||||||
Not designated as hedges (1) | ||||||||
Natural gas contracts - net fair value adjustments recorded in operating revenues | 20 | (24 | ) | |||||
Natural gas contracts - net fair value adjustments recorded in cost of goods sold (2) | (1 | ) | (2 | ) | ||||
Income tax | (7 | ) | 10 | |||||
Total not designated as hedges, net of tax | 12 | (16 | ) | |||||
Total gains (losses) on derivative instruments, net of tax | $ | 13 | $ | (16 | ) |
(1) | Associated with the fair value of derivative instruments held at March 31, 2016 and 2015. |
(2) | Excludes gains (losses) recorded in cost of goods sold associated with weather derivatives of $3 million and $(2) million for the three months ended March 31, 2016 and 2015, respectively, as they are accounted for based on intrinsic value rather than fair value. |
Three Months Ended March 31, | ||||||||
In millions | 2016 | 2015 | ||||||
Service cost (1) | $ | 6 | $ | 7 | ||||
Interest cost (1) | 10 | 11 | ||||||
Expected return on plan assets | (16 | ) | (16 | ) | ||||
Net amortization of prior service credit | — | (1 | ) | |||||
Recognized actuarial loss | 6 | 8 | ||||||
Net periodic pension benefit cost | $ | 6 | $ | 9 |
Three Months Ended March 31, | ||||||||
In millions | 2016 | 2015 | ||||||
Service cost (1) | $ | 1 | $ | 1 | ||||
Interest cost (1) | 3 | 3 | ||||||
Expected return on plan assets | (2 | ) | (2 | ) | ||||
Net amortization of prior service credit | (1 | ) | — | |||||
Recognized actuarial loss | 1 | 1 | ||||||
Net periodic welfare benefit cost | $ | 2 | $ | 3 |
March 31, 2016 | March 31, 2015 | |||||||||||||||||||
Dollars in millions | Year(s) due | Weighted average interest rate (1) | Outstanding | December 31, 2015 | Weighted average interest rate (1) | Outstanding | ||||||||||||||
Short-term debt | ||||||||||||||||||||
Commercial paper - AGL Capital (2) | 2016 | 0.8 | % | $ | 204 | $ | 471 | 0.5 | % | $ | 176 | |||||||||
Commercial paper - Nicor Gas (2) | 2016 | 0.6 | 353 | 539 | 0.4 | 350 | ||||||||||||||
Total short-term debt | 0.7 | % | $ | 557 | $ | 1,010 | 0.4 | % | $ | 526 | ||||||||||
Current portion of long-term debt | 2016 | 5.2 | % | $ | 470 | $ | 545 | 2.9 | % | $ | 75 | |||||||||
Long-term debt - excluding current portion | ||||||||||||||||||||
Senior notes | 2018-2043 | 4.9 | % | $ | 2,455 | $ | 2,455 | 5.0 | % | $ | 2,625 | |||||||||
First mortgage bonds | 2019-2038 | 5.9 | 375 | 375 | 6.0 | 425 | ||||||||||||||
Gas facility revenue bonds | 2022-2033 | 1.1 | 200 | 200 | 0.8 | 200 | ||||||||||||||
Medium-term notes | 2017-2027 | 7.8 | 181 | 181 | 7.8 | 181 | ||||||||||||||
Total principal long-term debt | 4.8 | % | $ | 3,211 | $ | 3,211 | 4.9 | % | $ | 3,431 | ||||||||||
Unamortized fair value adjustment of long-term debt | n/a | n/a | 66 | 68 | n/a | 77 | ||||||||||||||
Unamortized debt premium, net | n/a | n/a | 16 | 16 | n/a | 16 | ||||||||||||||
Unamortized debt issuance costs | n/a | n/a | (20 | ) | (20 | ) | n/a | (19 | ) | |||||||||||
Total non-principal long-term debt | n/a | n/a | $ | 62 | $ | 64 | n/a | $ | 74 | |||||||||||
Total long-term debt - excluding current portion | $ | 3,273 | $ | 3,275 | $ | 3,505 | ||||||||||||||
Total debt | $ | 4,300 | $ | 4,830 | $ | 4,106 |
(1) | Interest rates are calculated based on the daily weighted average balance outstanding for the three months ended March 31, 2016 and 2015. |
(2) | As of March 31, 2016, the effective interest rates on our commercial paper borrowings were 0.8% for AGL Capital and 0.6% for Nicor Gas. |
AGL Resources | Nicor Gas | |||||||||||||||||
March 31, 2016 | December 31, 2015 | March 31, 2015 | March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||||||
Debt covenants (1) | 50 | % | 54 | % | 50 | % | 47 | % | 56 | % | 54 | % |
(1) | As defined in our credit facilities, these ratios include standby letters of credit and performance/surety bonds and exclude accumulated OCI items related to non-cash pension adjustments, welfare benefits liability adjustments and accounting for cash flow hedges. |
• | a maximum leverage ratio; |
• | insolvency events and/or nonpayment of scheduled principal or interest payments; |
• | acceleration of other financial obligations; and |
• | change of control provisions. |
2016 | 2015 | |||||||||||||||||||||||
In millions (1) | Cash flow hedges | Retirement benefit plans | Total | Cash flow hedges | Retirement benefit plans | Total | ||||||||||||||||||
For the three months ended March 31 | ||||||||||||||||||||||||
As of beginning of period | $ | 2 | $ | (188 | ) | $ | (186 | ) | $ | (6 | ) | $ | (200 | ) | $ | (206 | ) | |||||||
OCI, before reclassifications | (29 | ) | — | (29 | ) | 2 | — | 2 | ||||||||||||||||
Amounts reclassified from accumulated OCI | (1 | ) | 3 | 2 | — | 3 | 3 | |||||||||||||||||
Net current-period other comprehensive (loss) income | (30 | ) | 3 | (27 | ) | 2 | 3 | 5 | ||||||||||||||||
As of end of period | $ | (28 | ) | $ | (185 | ) | $ | (213 | ) | $ | (4 | ) | $ | (197 | ) | $ | (201 | ) |
(1) | All amounts are net of income taxes and noncontrolling interest. Amounts in parentheses indicate debits to accumulated other comprehensive loss. |
Three Months Ended March 31, | ||||||||
In millions (1) | 2016 | 2015 | ||||||
Cash flow hedges: | ||||||||
Cost of goods sold (natural gas contracts) | $ | — | $ | (1 | ) | |||
Interest expense (interest rate contracts) | 1 | 1 | ||||||
Total cash flow hedges, net of income tax | 1 | — | ||||||
Retirement benefit plans: | ||||||||
Operation and maintenance expense (actuarial losses) (2) | (5 | ) | (5 | ) | ||||
Total retirement benefit plans | (5 | ) | (5 | ) | ||||
Income tax benefit | 2 | 2 | ||||||
Total retirement benefit plans, net of income tax | (3 | ) | (3 | ) | ||||
Total reclassification for the period | $ | (2 | ) | $ | (3 | ) |
(1) | Amounts in parentheses indicate debits, or reductions, to our net income and credits to accumulated other comprehensive loss. Except for retirement benefit plan amounts, the net income impacts are immediate. |
(2) | Amortization of these accumulated other comprehensive loss components is included in the computation of net periodic benefit cost. See Note 7 herein for additional details about net periodic benefit cost. |
In millions | ||||
Balance as of December 31, 2015 | $ | — | ||
Reclassification of noncontrolling interest | 46 | |||
Net income attributable to noncontrolling interest | 11 | |||
Distribution to noncontrolling interest | (19 | ) | ||
Balance as of March 31, 2016 | $ | 38 |
March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||||||||||||||||||||||||
In millions | Consolidated | SouthStar | % | Consolidated | SouthStar | % | Consolidated | SouthStar | % | ||||||||||||||||||||||||
Current assets | $ | 1,537 | $ | 177 | 12 | % | $ | 2,115 | $ | 245 | 12 | % | $ | 2,079 | $ | 182 | 9 | % | |||||||||||||||
Goodwill and other intangible assets | 1,918 | 113 | 6 | 1,922 | 114 | 6 | 1,943 | 119 | 6 | ||||||||||||||||||||||||
Long-term assets and other deferred debits | 10,881 | 17 | — | 10,717 | 16 | — | 10,097 | 17 | — | ||||||||||||||||||||||||
Total assets | $ | 14,336 | $ | 307 | 2 | % | $ | 14,754 | $ | 375 | 3 | % | $ | 14,119 | $ | 318 | 2 | % | |||||||||||||||
Current liabilities | $ | 2,489 | $ | 41 | 2 | % | $ | 3,000 | $ | 54 | 2 | % | $ | 2,371 | $ | 46 | 2 | % | |||||||||||||||
Long-term liabilities and other deferred credits | 7,777 | 1 | — | 7,779 | — | — | 7,784 | 1 | — | ||||||||||||||||||||||||
Total liabilities | 10,266 | 42 | — | 10,779 | 54 | 1 | 10,155 | 47 | — | ||||||||||||||||||||||||
Contingently redeemable noncontrolling interest | 38 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Equity | 4,032 | 265 | 7 | 3,975 | 321 | 8 | 3,964 | 271 | 7 | ||||||||||||||||||||||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 14,336 | $ | 307 | 2 | % | $ | 14,754 | $ | 375 | 3 | % | $ | 14,119 | $ | 318 | 2 | % |
Three Months Ended March 31, | ||||||||
In millions | 2016 | 2015 | ||||||
Operating revenues | $ | 254 | $ | 311 | ||||
Operating expenses | ||||||||
Cost of goods sold | 157 | 203 | ||||||
Operation and maintenance | 22 | 23 | ||||||
Depreciation and amortization | 2 | 2 | ||||||
Taxes other than income taxes | — | 1 | ||||||
Total operating expenses | 181 | 229 | ||||||
Operating income | $ | 73 | $ | 82 |
March 31, | December 31, | March 31, | ||||||||||
In millions | 2016 | 2015 | 2015 | |||||||||
Triton | $ | 48 | $ | 49 | $ | 57 | ||||||
Horizon Pipeline | 14 | 14 | 14 | |||||||||
PennEast Pipeline | 12 | 9 | 2 | |||||||||
Atlantic Coast Pipeline | 9 | 7 | 3 | |||||||||
Other | 1 | 1 | — | |||||||||
Total | $ | 84 | $ | 80 | $ | 76 |
Three Months Ended March 31, | ||||||||
In millions | 2016 | 2015 | ||||||
Horizon Pipeline | $ | 1 | $ | 1 |
In millions | Distribution operations | Retail operations | Wholesale services (1) | Midstream operations | Other | Intercompany eliminations | Consolidated | |||||||||||||||||||||
Operating revenues from external parties | $ | 983 | $ | 286 | $ | 63 | $ | 15 | $ | 2 | $ | (15 | ) | $ | 1,334 | |||||||||||||
Intercompany revenues | 45 | — | — | — | — | (45 | ) | — | ||||||||||||||||||||
Total operating revenues | 1,028 | 286 | 63 | 15 | 2 | (60 | ) | 1,334 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Cost of goods sold | 464 | 162 | 3 | 6 | — | (57 | ) | 578 | ||||||||||||||||||||
Operation and maintenance | 185 | 37 | 16 | 7 | (2 | ) | (2 | ) | 241 | |||||||||||||||||||
Depreciation and amortization | 89 | 6 | — | 4 | 3 | — | 102 | |||||||||||||||||||||
Taxes other than income taxes | 56 | 1 | 1 | 1 | 3 | — | 62 | |||||||||||||||||||||
Merger-related expenses | — | — | — | — | 3 | — | 3 | |||||||||||||||||||||
Total operating expenses | 794 | 206 | 20 | 18 | 7 | (59 | ) | 986 | ||||||||||||||||||||
Operating income (loss) | 234 | 80 | 43 | (3 | ) | (5 | ) | (1 | ) | 348 | ||||||||||||||||||
Other income | — | — | 1 | 2 | — | — | 3 | |||||||||||||||||||||
EBIT | $ | 234 | $ | 80 | $ | 44 | $ | (1 | ) | $ | (5 | ) | $ | (1 | ) | $ | 351 | |||||||||||
Total assets | $ | 12,405 | $ | 717 | $ | 723 | $ | 715 | $ | 9,342 | $ | (9,566 | ) | $ | 14,336 | |||||||||||||
Capital expenditures | $ | 204 | $ | 2 | $ | — | $ | 18 | $ | 11 | $ | — | $ | 235 |
In millions | Distribution operations | Retail operations | Wholesale services (1) | Midstream operations | Other | Intercompany eliminations | Consolidated | |||||||||||||||||||||
Operating revenues from external parties | $ | 1,285 | $ | 341 | $ | 90 | $ | 19 | $ | 6 | $ | (20 | ) | $ | 1,721 | |||||||||||||
Intercompany revenues | 56 | — | — | — | — | (56 | ) | — | ||||||||||||||||||||
Total operating revenues | 1,341 | 341 | 90 | 19 | 6 | (76 | ) | 1,721 | ||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||
Cost of goods sold | 776 | 210 | 9 | 10 | 5 | (75 | ) | 935 | ||||||||||||||||||||
Operation and maintenance | 185 | 37 | 24 | 6 | (2 | ) | (1 | ) | 249 | |||||||||||||||||||
Depreciation and amortization | 82 | 6 | — | 5 | 4 | — | 97 | |||||||||||||||||||||
Taxes other than income taxes | 71 | 1 | 1 | 1 | 2 | — | 76 | |||||||||||||||||||||
Total operating expenses | 1,114 | 254 | 34 | 22 | 9 | (76 | ) | 1,357 | ||||||||||||||||||||
Operating income (loss) | 227 | 87 | 56 | (3 | ) | (3 | ) | — | 364 | |||||||||||||||||||
Other income | 1 | — | — | 1 | 1 | — | 3 | |||||||||||||||||||||
EBIT | $ | 228 | $ | 87 | $ | 56 | $ | (2 | ) | $ | (2 | ) | $ | — | $ | 367 | ||||||||||||
Total assets | $ | 11,896 | $ | 698 | $ | 1,100 | $ | 693 | $ | 9,036 | $ | (9,304 | ) | $ | 14,119 | |||||||||||||
Capital expenditures | $ | 170 | $ | 2 | $ | 1 | $ | 3 | $ | 12 | $ | — | $ | 188 |
(1) | The revenues for wholesale services are netted with costs associated with its energy and risk management activities. A reconciliation of our operating revenues and our intercompany revenues are shown in the following table. |
In millions | Third party gross revenues | Intercompany revenues | Total gross revenues | Less gross gas costs | Operating revenues | ||||||||||||
Three months ended March 31, 2016 | $ | 1,443 | 81 | 1,524 | 1,461 | $ | 63 | ||||||||||
Three months ended March 31, 2015 | $ | 2,146 | 150 | 2,296 | 2,206 | $ | 90 |
In millions | Distribution operations | Retail operations | Wholesale services | Midstream operations | Other | Intercompany eliminations | Consolidated | |||||||||||||||||||||
Total assets | $ | 12,517 | $ | 686 | $ | 935 | $ | 692 | $ | 9,664 | $ | (9,740 | ) | $ | 14,754 |
• | certain risks and uncertainties associated with the proposed merger with Southern Company, including, without limitation: |
• | the possibility that the proposed merger does not close due to the failure to satisfy the closing conditions, including, but not limited to, a failure to obtain the remaining required regulatory approvals; |
• | delays caused by the remaining required regulatory approvals, which may delay the proposed merger or cause the companies to abandon the transaction; |
• | disruption from the proposed merger making it more difficult to maintain our business and operational relationships and the risk that unexpected costs will be incurred during this process; |
• | the diversion of management time on merger-related issues; and |
• | the timing of our last quarterly dividend to holders of our common stock, if any, declared prior to the potential closing of the proposed merger with Southern Company; |
• | changes in price, supply and demand for natural gas and related products; |
• | the impact of changes in state and federal legislation and regulation, including any changes related to climate matters; |
• | actions taken by government agencies on rates and other matters; |
• | concentration of credit risk; |
• | utility and energy industry consolidation; |
• | the impact on cost and timeliness of construction projects, including our pipeline projects, from government and other approvals, project delays, adequacy of supply of diversified vendors and unexpected changes in project costs; |
• | the cost of funds to finance our construction projects and our ability to recover certain project costs from our customers; |
• | limits on pipeline capacity; |
• | the impact of acquisitions and divestitures; |
• | our ability to successfully integrate operations that we have or may acquire or develop in the future; |
• | direct or indirect effects on our business, financial condition or liquidity resulting from a change in our credit ratings or the credit ratings of our counterparties or competitors; |
• | interest rate fluctuations; |
• | financial market conditions, including disruptions in the capital markets and lending environment; |
• | general economic conditions; |
• | uncertainties about environmental issues and the related impact of such issues, including our environmental remediation plans; |
• | the capacity of our gas storage caverns, which are subject to natural settling and other occurrences; |
• | contracting rates at our midstream operations storage business; |
• | the impact of weather on the temperature-sensitive portions of our business; |
• | the impact of natural disasters, such as hurricanes, on the supply and price of natural gas; |
• | acts of war or terrorism; |
• | the outcome of litigation; |
• | the effect of accounting pronouncements issued by standard-setting bodies; and |
• | the other factors discussed elsewhere herein and in our other filings with the SEC. |
• | Distribution Operations: Invest necessary capital to enhance and maintain safety and reliability in delivering natural gas; remain an efficiency leader within the industry while maintaining a focus on customer satisfaction; expand the natural gas distribution system and educate energy consumers on the benefits of converting to natural gas. We continue to invest in our regulatory infrastructure programs to minimize the lag in recovery of our capital expenditures. Additionally, we continue to effectively manage our costs and leverage our shared services model across our businesses to combat inflationary effects. |
• | Retail Operations: Maintain our current customer base in Georgia and Illinois while continuing to expand into other profitable retail markets and expand our warranty businesses through partnership opportunities with affiliates and third parties. We will focus on products that are responsive to our customers' needs. |
• | Wholesale Services: Position our business to secure sufficient supplies of natural gas to meet the needs of our utility and third-party customers and to hedge natural gas prices to manage costs effectively, reduce price volatility and maintain a competitive advantage relative to other marketers. |
• | Midstream Operations: Invest in natural gas based projects, some of which remain subject to regulatory approvals, along with our existing pipelines and storage facilities to support our efforts to provide diverse sources of natural gas supplies to our customers, resolve current and long-term supply planning for new capacity, enhance system reliability and generate economic development in the areas served. |
Three months ended March 31, | ||||||||||||
In millions, except per share amounts | 2016 | 2015 | Change | |||||||||
Operating revenues | $ | 1,334 | $ | 1,721 | $ | (387 | ) | |||||
Cost of goods sold | (578 | ) | (935 | ) | 357 | |||||||
Revenue tax expense (1) | (39 | ) | (55 | ) | 16 | |||||||
Operating margin | 717 | 731 | (14 | ) | ||||||||
Operating expenses (2) | (408 | ) | (422 | ) | 14 | |||||||
Revenue tax expense (1) | 39 | 55 | (16 | ) | ||||||||
Operating income | 348 | 364 | (16 | ) | ||||||||
Other income | 3 | 3 | — | |||||||||
EBIT | 351 | 367 | (16 | ) | ||||||||
Interest expense, net | (47 | ) | (44 | ) | (3 | ) | ||||||
Income before income taxes | 304 | 323 | (19 | ) | ||||||||
Income tax expense | (111 | ) | (118 | ) | 7 | |||||||
Net income | 193 | 205 | (12 | ) | ||||||||
Less net income attributable to noncontrolling interest | 11 | 12 | (1 | ) | ||||||||
Net income attributable to AGL Resources | $ | 182 | $ | 193 | $ | (11 | ) | |||||
Per common share data | ||||||||||||
Diluted earnings per common share | $ | 1.51 | $ | 1.62 | $ | (0.11 | ) | |||||
Merger-related expenses | $ | 0.02 | $ | — | $ | 0.02 | ||||||
Diluted earnings per common share - as adjusted | $ | 1.53 | $ | 1.62 | $ | (0.09 | ) |
(1) | Adjusted for Nicor Gas’ revenue tax expenses, which are passed through directly to our customers. |
(2) | Operating expenses for the three months ended March 31, 2016 include $3 million of merger-related expenses. |
Three months ended March 31, | 2016 vs. 2015 | 2016 vs. normal | |||||||||||||
Normal (1) | 2016 | 2015 | warmer | warmer | |||||||||||
Illinois (2) | 3,097 | 2,701 | 3,357 | (20 | )% | (13 | )% | ||||||||
Georgia | 1,484 | 1,334 | 1,592 | (16 | )% | (10 | )% |
(1) | Normal represents the 10-year average from January 1, 2006 through March 31, 2015 for Illinois at Chicago Midway International Airport and for Georgia at Atlanta Hartsfield-Jackson International Airport, as obtained from the National Oceanic and Atmospheric Administration, National Climatic Data Center. |
(2) | The 10-year average Heating Degree Days established by the Illinois Commission in our last rate case is 2,902 for the first three months from 1998 through 2007. |
Three months ended March 31, | 2016 vs. 2015 | ||||||||
In thousands | 2016 | 2015 | % change | ||||||
Distribution operations | 4,585 | 4,557 | 0.6 | % | |||||
Retail operations | |||||||||
Energy customers | 658 | 637 | 3.3 | % | |||||
Service contracts (1) | 1,201 | 1,159 | 3.6 | % | |||||
Market share of energy customers in Georgia | 29.3 | % | 30.0 | % |
Three months ended March 31, | 2016 vs. 2015 | ||||||||
2016 | 2015 | % change | |||||||
Distribution operations (In Bcf) | |||||||||
Firm | 289 | 345 | (16.2 | )% | |||||
Interruptible | 26 | 27 | (3.7 | ) | |||||
Total | 315 | 372 | (15.3 | )% | |||||
Retail operations (In Bcf) | |||||||||
Firm: | |||||||||
Georgia | 17 | 19 | (10.5 | )% | |||||
Illinois | 6 | 8 | (25.0 | ) | |||||
Other emerging markets | 5 | 4 | 25.0 | ||||||
Interruptible: | |||||||||
Large commercial and industrial customers | 4 | 4 | — | ||||||
Total | 32 | 35 | (8.6 | )% | |||||
Wholesale services | |||||||||
Daily physical sales (Bcf/day) | 7.9 | 7.8 | 1.3 | % |
April 1, 2016 | April 1, 2015 | |||||||||||||
Average rates (per dekatherm) | Firm capacity under subscription (Bcf) | Average rates (per dekatherm) | Firm capacity under subscription (Bcf) | |||||||||||
Jefferson Island | $ | 0.103 | 2.2 | $ | 0.092 | 4.2 | ||||||||
Golden Triangle (1) | 0.051 | 2.5 | 0.098 | 7.0 | ||||||||||
Central Valley | 0.058 | 2.5 | 0.047 | 4.0 |
Three months ended March 31, 2016 | Three months ended March 31, 2015 | |||||||||||||||||||||||
In millions | Operating margin (1) (2) | Operating expenses (2) (3) | EBIT (1) (3) | Operating margin (1) (2) | Operating expenses (2) | EBIT (1) | ||||||||||||||||||
Distribution operations | $ | 525 | $ | 291 | $ | 234 | $ | 510 | $ | 283 | $ | 228 | ||||||||||||
Retail operations | 124 | 44 | 80 | 131 | 44 | 87 | ||||||||||||||||||
Wholesale services | 60 | 17 | 44 | 81 | 25 | 56 | ||||||||||||||||||
Midstream operations | 9 | 12 | (1 | ) | 9 | 12 | (2 | ) | ||||||||||||||||
Other | 2 | 7 | (5 | ) | 1 | 4 | (2 | ) | ||||||||||||||||
Intercompany eliminations | (3 | ) | (2 | ) | (1 | ) | (1 | ) | (1 | ) | — | |||||||||||||
Consolidated | $ | 717 | $ | 369 | $ | 351 | $ | 731 | $ | 367 | $ | 367 |
(1) | A reconciliation of operating revenue and operating margin to operating income, and EBIT to income before income taxes and net income is contained in “Results of Operations” herein. |
(2) | Operating margin and operating expenses are adjusted for revenue tax expense, which are passed through directly to our customers. |
(3) | Includes $3 million of merger-related expenses recorded within our other segment. |
In millions | Three months ended | |||
EBIT - March 31, 2015 | $ | 228 | ||
Operating margin | ||||
Increase from regulatory infrastructure programs, primarily at Atlanta Gas Light and Nicor Gas | 17 | |||
Increase mainly driven by non-weather-related customer usage and growth | 7 | |||
Increase in rider program recoveries at Nicor Gas, offset by operating expenses below | 6 | |||
Decrease in weather-related customer usage, net of weather hedges | (15 | ) | ||
Increase in operating margin | 15 | |||
Operating expenses | ||||
Increase in rider program recoveries at Nicor Gas, offset by operating margin above | 6 | |||
Increase in depreciation expense primarily due to additional assets placed in service | 6 | |||
Increase in outside services expenses primarily due to legal and other services | 2 | |||
Decrease in benefit expenses primarily related to lower pension costs in 2016 | (2 | ) | ||
Decrease in variable incentive compensation costs | (4 | ) | ||
Increase in operating expenses | 8 | |||
Decrease in other income primarily due to tax gross-up of contributions received | (1 | ) | ||
EBIT - March 31, 2016 | $ | 234 |
In millions | Three months ended | |||
EBIT - March 31, 2015 | $ | 87 | ||
Operating margin | ||||
Lower cost of goods sold partially offset by lower customer count | 4 | |||
Acquisition of warranty service contracts in the second half of 2015 and improved warranty margins | 3 | |||
LOCOM adjustments, net of recoveries | (1 | ) | ||
Offset of prior period hedge losses | (5 | ) | ||
Decrease in weather-related customer usage, net of weather hedging | (6 | ) | ||
Other | (2 | ) | ||
Decrease in operating margin | (7 | ) | ||
Operating expenses | ||||
Increase in outside services and marketing expenses | 1 | |||
Decrease in bad debt expenses primarily related to lower gas prices and warmer weather | (1 | ) | ||
Increase in operating expenses | — | |||
EBIT - March 31, 2016 | $ | 80 |
In millions | Three months ended | |||
EBIT - March 31, 2015 | $ | 56 | ||
Operating margin | ||||
Change in value of transportation and forward commodity derivatives from price movements related to natural gas transportation positions | 50 | |||
Change in LOCOM adjustment | 5 | |||
Change in value of storage derivatives as a result of changes in NYMEX natural gas prices | (6 | ) | ||
Change in commercial activity driven by lower price volatility | (70 | ) | ||
Decrease in operating margin | (21 | ) | ||
Operating expenses | ||||
Decrease in variable incentive compensation costs driven by variance in earnings compared to prior year | (8 | ) | ||
Decrease in operating expenses | (8 | ) | ||
Increase in other income due to tax refund settlement | 1 | |||
EBIT - March 31, 2016 | $ | 44 |
Three months ended March 31, | ||||||||
In millions | 2016 | 2015 | ||||||
Commercial activity recognized | $ | 43 | $ | 113 | ||||
(Loss) gain on storage derivatives | (2 | ) | 4 | |||||
Gain (loss) on transportation and forward commodity derivatives | 22 | (28 | ) | |||||
Inventory LOCOM adjustment, net of estimated current period recoveries | (3 | ) | (8 | ) | ||||
Operating margin | $ | 60 | $ | 81 |
• | Lower price volatility as compared to last year due to the colder-than-normal weather in 2015; and |
• | Higher operating margin of $8 million resulting from the withdrawal of storage inventory hedged at the end of 2015 that was included in the storage withdrawal schedule. |
Storage withdrawal schedule | |||||||||||
Dollars in millions | Total storage (in Bcf) (WACOG $1.99) | Expected net operating gains (1) | Physical transportation transactions – expected net operating losses (2) | ||||||||
2016 | 27.0 | $ | 5 | $ | (10 | ) | |||||
2017 and thereafter | 13.9 | 10 | (12 | ) | |||||||
Total at March 31, 2016 | 40.9 | $ | 15 | $ | (22 | ) |
(1) | Represents expected operating gains from planned storage withdrawals associated with existing inventory positions and could change as wholesale services adjusts its daily injection and withdrawal plans in response to changes in future market conditions and forward NYMEX price fluctuations. |
(2) | Represents the periods associated with the transportation derivative (gains) during which the derivatives will be settled and the physical transportation transactions will occur that offset the derivative (gains) recognized during the first three months of 2016. |
In millions | Period end balance outstanding (1) | Daily average balance outstanding (2) | Minimum balance outstanding (2) | Largest balance outstanding (2) | ||||||||||||
Commercial paper – AGL Capital | $ | 204 | $ | 341 | $ | 166 | $ | 471 | ||||||||
Commercial paper – Nicor Gas | 353 | 494 | 353 | 550 | ||||||||||||
Current portion of long-term debt | 470 | 496 | 470 | 545 | ||||||||||||
Total | $ | 1,027 | $ | 1,331 | $ | 989 | $ | 1,566 |
(1) | As of March 31, 2016. |
(2) | For the three months ended March 31, 2016. |
AGL Resources | Nicor Gas | |||||||||||
S&P | Moody’s (1) | Fitch | S&P | Moody’s | Fitch | |||||||
Corporate rating | BBB+ | n/a | BBB+ | BBB+ | n/a | A | ||||||
Commercial paper | A-2 | P-2 | F2 | A-2 | P-1 | F1 | ||||||
Senior unsecured | BBB+ | Baa1 | BBB+ | BBB+ | A2 | A+ | ||||||
Senior secured | n/a | n/a | n/a | A | Aa3 | AA- | ||||||
Ratings outlook | Positive | Stable | Positive | Positive | Stable | Stable |
(1) | Credit ratings are for AGL Capital, whose obligations are fully and unconditionally guaranteed by AGL Resources. |
Three months ended March 31, | ||||||||||||
In millions | 2016 | 2015 | Variance | |||||||||
Net cash provided by (used in): | ||||||||||||
Operating activities | $ | 841 | $ | 1,120 | $ | (279 | ) | |||||
Investing activities | (238 | ) | (184 | ) | (54 | ) | ||||||
Financing activities | (602 | ) | (926 | ) | 324 | |||||||
Net increase in cash and cash equivalents | 1 | 10 | (9 | ) | ||||||||
Cash and cash equivalents at beginning of period | 19 | 31 | (12 | ) | ||||||||
Cash and cash equivalents at end of period | $ | 20 | $ | 41 | $ | (21 | ) |
• | Rate-Regulated Subsidiaries; |
• | Goodwill and Long-Lived Assets, including Intangible Assets; |
• | Derivatives and Hedging Activities; |
• | Contingencies; |
• | Pension and Welfare Plans; and |
• | Income Taxes. |
Derivative instruments average values for the three months ended (1) | ||||||||
In millions | March 31, 2016 | March 31, 2015 | ||||||
Asset | $ | 189 | $ | 208 | ||||
Liability | 102 | 118 |
Derivative instruments fair values netted with cash collateral at | ||||||||||||
In millions | March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||
Asset | $ | 186 | $ | 218 | $ | 213 | ||||||
Liability | 65 | 46 | 52 |
Three months ended March 31, | ||||||||
In millions | 2016 | 2015 | ||||||
Net fair value of derivative instruments outstanding at beginning of period | $ | 75 | $ | 61 | ||||
Derivative instruments realized or otherwise settled during period | (85 | ) | (70 | ) | ||||
Change in net fair value of derivative instruments | (34 | ) | (40 | ) | ||||
Net fair value of derivative instruments outstanding at end of period | (44 | ) | (49 | ) | ||||
Netting of cash collateral | 165 | 210 | ||||||
Cash collateral and net fair value of derivative instruments outstanding at end of period (1) | $ | 121 | $ | 161 |
(1) | Net fair value of derivative instruments outstanding includes $9 million and $1 million premium and associated intrinsic value at March 31, 2016 and 2015, respectively, associated with weather derivatives. |
In millions | Prices actively quoted (Level 1) (1) | Significant other observable inputs (Level 2) (2) | ||||||
Mature through 2016 | $ | (73 | ) | $ | 27 | |||
Mature 2017 - 2018 | (15 | ) | 22 | |||||
Mature 2019 and thereafter | (8 | ) | 3 | |||||
Total derivative instruments (3) | $ | (96 | ) | $ | 52 |
(1) | Valued using NYMEX futures prices. |
(2) | Valued using basis transactions that represent the cost to transport natural gas from a NYMEX delivery point to the contract delivery point. These transactions are based on quotes obtained either through electronic trading platforms or directly from brokers. |
(3) | Excludes cash collateral amounts. |
Three months ended March 31, | ||||||||
In millions | 2016 | 2015 | ||||||
Period end | $ | 2.2 | $ | 4.2 | ||||
Average | 1.9 | 4.1 | ||||||
High | 2.5 | 7.3 | ||||||
Low | 1.6 | 2.9 |
Gross receivables | Gross payables | |||||||||||||||||||||||
Mar. 31, | Dec. 31, | Mar. 31, | Mar. 31, | Dec. 31, | Mar. 31, | |||||||||||||||||||
In millions | 2016 | 2015 | 2015 | 2016 | 2015 | 2015 | ||||||||||||||||||
Netting agreements in place: | ||||||||||||||||||||||||
Counterparty is investment grade | $ | 236 | $ | 299 | $ | 394 | $ | 103 | $ | 136 | $ | 211 | ||||||||||||
Counterparty is non-investment grade | 5 | 8 | 4 | 15 | 17 | 12 | ||||||||||||||||||
Counterparty has no external rating | 119 | 133 | 190 | 244 | 265 | 361 | ||||||||||||||||||
No netting agreements in place: | ||||||||||||||||||||||||
Counterparty is investment grade | 5 | 5 | 22 | 1 | — | 1 | ||||||||||||||||||
Counterparty has no external rating | — | — | 1 | — | — | 1 | ||||||||||||||||||
Amount recorded on unaudited Condensed Consolidated Balance Sheets | $ | 365 | $ | 445 | $ | 611 | $ | 363 | $ | 418 | $ | 586 |
Exhibit Number | Description of Exhibit | Filer | The Filings Referenced for Incorporation by Reference | |||
12 | Computation of Ratio of Earnings to Fixed Charges | AGL Resources | Filed herewith | |||
31.1 | Certification of Andrew W. Evans | AGL Resources | Filed herewith | |||
31.2 | Certification of Elizabeth W. Reese | AGL Resources | Filed herewith | |||
32.1 | Certification of Andrew W. Evans | AGL Resources | Filed herewith | |||
32.2 | Certification of Elizabeth W. Reese | AGL Resources | Filed herewith | |||
101.INS | XBRL Instance Document | AGL Resources | Filed herewith | |||
101.SCH | XBRL Taxonomy Extension Schema | AGL Resources | Filed herewith | |||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | AGL Resources | Filed herewith | |||
101.DEF | XBRL Taxonomy Definition Linkbase | AGL Resources | Filed herewith | |||
101.LAB | XBRL Taxonomy Extension Labels Linkbase | AGL Resources | Filed herewith | |||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | AGL Resources | Filed herewith |
AGL Resources Inc. | |||
(Registrant) | |||
Date: | May 4, 2016 | /s/ Elizabeth W. Reese | |
Elizabeth W. Reese | |||
Executive Vice President and Chief Financial Officer |
Three months ended March 31, | Fiscal | Fiscal | Fiscal | Fiscal | Fiscal | |||||||||||||
Dollars in millions | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||
Earnings from continuing operations before income taxes (1) | $ | 303 | $ | 580 | $ | 922 | $ | 482 | $ | 418 | $ | 300 | ||||||
Add: | ||||||||||||||||||
Fixed charges (see “B” below) | 49 | 184 | 188 | 189 | 202 | 146 | ||||||||||||
Amortization of capitalized interest (2) | — | — | — | — | — | 1 | ||||||||||||
Distributed income of equity investees | 1 | 6 | 8 | 3 | 13 | — | ||||||||||||
Less: | ||||||||||||||||||
Interest capitalized (2) | 1 | 2 | — | — | 1 | 1 | ||||||||||||
Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges | 11 | 20 | 18 | 18 | 15 | 14 | ||||||||||||
Adjusted earnings (A) | $ | 341 | $ | 748 | $ | 1,100 | $ | 656 | $ | 617 | $ | 432 | ||||||
Fixed charges | ||||||||||||||||||
Interest on long-term debt | $ | 46 | $ | 176 | $ | 185 | $ | 182 | $ | 177 | $ | 101 | ||||||
Other interest, including amortized premiums, discounts and capitalized expenses related to indebtedness liability | 2 | 2 | (4 | ) | (5 | ) | 12 | 38 | ||||||||||
Estimated interest components of rentals | 1 | 6 | 7 | 12 | 13 | 7 | ||||||||||||
Total fixed charges (B) | $ | 49 | $ | 184 | $ | 188 | $ | 189 | $ | 202 | $ | 146 | ||||||
Ratio of earnings to fixed charges (A)/(B) | 6.96 | 4.07 | 5.85 | 3.47 | 3.05 | 2.96 |
(1) | Excludes distributed income of equity investees. |
(2) | Includes interest capitalized and related amortization for our nonregulated segments. |
I, Andrew W. Evans, certify that: |
1. | I have reviewed this quarterly report on Form 10-Q of AGL Resources Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | |
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: May 4, 2016 | /s/ Andrew W. Evans |
President and Chief Executive Officer |
I, Elizabeth W. Reese, certify that: |
1. | I have reviewed this quarterly report on Form 10-Q of AGL Resources Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and | |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and | |
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: May 4, 2016 | /s/ Elizabeth W. Reese |
Executive Vice President and Chief Financial Officer |
(1) | the Form 10-Q for the quarterly period ended March 31, 2016 (the “Report”), which accompanies this certification, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of AGL Resources Inc. |
Date: May 4, 2016 | /s/ Andrew W. Evans |
President and Chief Executive Officer |
(1) | the Form 10-Q for the quarterly period ended March 31, 2016 (the “Report”), which accompanies this certification, fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of AGL Resources Inc. |
Date: May 4, 2016 | /s/ Elizabeth W. Reese |
Executive Vice President and Chief Financial Officer |
Document And Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Apr. 29, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AGL RESOURCES INC. | |
Trading Symbol | gas | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 120,680,030 | |
Amendment Flag | false | |
Entity Central Index Key | 0001004155 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well-known Seasoned Issuer | Yes | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
---|---|---|---|
Statement of Financial Position [Abstract] | |||
Common stock, par value (in dollars per share) | $ 5 | $ 5 | $ 5 |
Common stock, shares authorized | 750,000,000 | 750,000,000 | 750,000,000 |
Common stock, shares outstanding | 120,679,004 | 120,376,721 | 119,927,459 |
Treasury shares, shares | 216,523 | 216,523 | 216,523 |
Condensed Consolidated Statements of Income (Unaudited) (Parentheticals) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income Statement [Abstract] | ||
Operating revenues, revenue taxes | $ 40 | $ 56 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 193 | $ 205 |
Retirement benefit plans, net of tax | ||
Reclassification of actuarial losses to net benefit cost (net of income tax of $2 and $2 for the three months ended March 31, 2016 and 2015, respectively) | 3 | 3 |
Retirement benefit plans, net | 3 | 3 |
Cash flow hedges, net of tax | ||
Net derivative (loss) gain arising during the period (net of income tax of $16 and $1 for the three months ended March 31, 2016 and 2015, respectively) | (29) | 2 |
Reclassification of realized derivative gain to net income (net of income tax of less than $1 million) | (1) | 0 |
Cash flow hedges, net | (30) | 2 |
Other comprehensive (loss) income, net of tax | (27) | 5 |
Comprehensive income | 166 | 210 |
Less comprehensive income attributable to noncontrolling interest | 11 | 12 |
Comprehensive income attributable to AGL Resources | $ 155 | $ 198 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||
Reclassification of losses to net benefit cost, income tax | $ 2 | $ 2 |
Net derivative instruments gain arising during the period, income tax (benefit) expense | (16) | 1 |
Reclassification of realized derivative instruments (gain) loss to net income, income tax (less than) | $ (1) | $ 0 |
Condensed Consolidated Statements of Equity (Unaudited) (Parentheticals) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Statement of Stockholders' Equity [Abstract] | ||
Dividends on common stock, per share (in dollars per share) | $ 0.53 | $ 0.51 |
Organization and Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation General AGL Resources Inc. is an energy services holding company that conducts substantially all of its operations through its subsidiaries. Unless the context requires otherwise, references to “we,” “us,” “our,” the “company,” or “AGL Resources” mean consolidated AGL Resources Inc. and its subsidiaries. Our Condensed Consolidated Balance Sheet as of December 31, 2015 was derived from our audited consolidated financial statements. We have prepared the accompanying unaudited condensed consolidated financial statements under the rules and regulations of the SEC. In accordance with such rules and regulations, we have condensed or omitted certain information and notes that would typically be included in our annual audited financial statements. Our unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are, in the opinion of management, necessary for a fair statement of our financial results for the interim periods and should be read in conjunction with our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K. Due to the seasonal nature of our business and other factors, our results of operations and our financial condition for the periods presented are not necessarily indicative of the results of operations or financial condition to be expected for, or as of, any other period. Basis of Presentation Our unaudited condensed consolidated financial statements include our accounts, the accounts of our wholly owned subsidiaries and the accounts of our VIE for which we are the primary beneficiary. For unconsolidated entities that we do not control, we use the equity method of accounting and our proportionate share of income or loss is recorded on our unaudited Condensed Consolidated Statements of Income. See Note 10 for additional information on our non-wholly owned entities. We have eliminated intercompany profits and transactions in consolidation except for intercompany profits where recovery of such amounts is probable under the affiliates’ rate regulation process. Certain amounts from prior periods have been reclassified to conform to the current period presentation. These reclassifications had no material impact on our prior period balances. |
Proposed Merger with Southern Company |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Proposed Merger with Southern Company | Proposed Merger with Southern Company On August 23, 2015, we entered into the Merger Agreement with Southern Company and a new wholly owned subsidiary of Southern Company (Merger Sub), providing for the merger of Merger Sub with and into AGL Resources, with us surviving as a wholly owned, direct subsidiary of Southern Company. At the effective time of the merger, which is expected to occur in the second half of 2016, each share of our common stock, other than certain excluded shares, will convert into the right to receive $66 in cash, without interest, less any applicable withholding taxes. We and Southern Company have made joint filings seeking regulatory approval with all of the required state regulatory agencies. Completion of the merger remains subject to various closing conditions, including (i) the receipt of remaining required regulatory approvals from the Illinois Commission and New Jersey BPU, and such approvals having become final orders and (ii) the absence of a judgment, order, decision, injunction, ruling or other finding or agency requirement of a governmental entity prohibiting the closing of the merger. To date, the proposed merger has been approved by the Maryland Commission, the Georgia Commission, the California Public Utilities Commission, the Virginia Commission and our shareholders. Additionally, we received consent from the Federal Communications Commission to transfer parent company control of radio licenses held by certain of our subsidiaries and the waiting period under the Hart-Scott-Rodino Act has expired. On April 28, 2016, Southern Company, AGL Resources, Nicor Gas, the Illinois Attorney General’s Office, and the CUB filed a settlement agreement with the Illinois Commission that resolves all remaining contested issues with regards to the merger approval. This settlement agreement, along with the other resolved matters, is still subject to approval by the Illinois Commission. The Merger Agreement contains certain termination rights for each party. In addition, the Merger Agreement, in certain circumstances, provides for the payment by AGL Resources of a $201 million termination fee to Southern Company and, in certain circumstances, provides for the reimbursement of expenses up to $5 million upon termination of the erger Agreement (which reimbursement would reduce on a dollar-for-dollar basis any termination fee subsequently paid by us). As of March 31, 2016, we had recorded no liability for termination fees. During the three months ended March 31, 2016, we recorded $3 million ($2 million, net of tax) of merger-related costs on the accompanying unaudited Condensed Consolidated Statements of Income, which consisted primarily of legal expenses and additional share-based compensation expenses associated with the proposed merger. These costs are treated as tax deductible since the requisite closing conditions to the merger have not yet been satisfied. Once the merger is closed, we will evaluate the tax deductibility of all merger-related costs and adjust for any non-deductible amounts in the effective tax rate. |
Significant Accounting Policies and Methods of Application |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies and Methods of Application | Significant Accounting Policies and Methods of Application Our significant accounting policies are described in Note 3 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K. There have been no significant changes to our accounting policies during the three months ended March 31, 2016. Use of Accounting Estimates The preparation of our financial statements in conformity with GAAP requires us to use judgment and make estimates that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosures. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our estimates may involve complex situations requiring a high degree of judgment either in the application and interpretation of existing accounting literature or in the development of estimates that impact our financial statements. The most significant estimates relate to the accounting for our rate-regulated subsidiaries, goodwill and other intangible assets, derivatives and hedging activities, uncollectible accounts and other allowances for contingent losses, retirement plan benefit obligations and provisions for income taxes. We evaluate our estimates on an ongoing basis, and our actual results could differ from our estimates. Inventories For our regulated utilities, except Nicor Gas, natural gas inventories and the inventories we hold for Marketers in Georgia are carried at cost on a WACOG basis. Nicor Gas’ inventory is carried at cost on a LIFO basis. Under the LIFO method, inventory decrements occurring during the year that are expected to be restored prior to year-end are charged to cost of goods sold at the estimated annual replacement cost, and the difference between this cost and the actual liquidated LIFO layer cost is recorded as a temporary LIFO liquidation on our unaudited Condensed Consolidated Balance Sheets. Interim inventory decrements that are not expected to be restored prior to year-end are charged to cost of goods sold at the actual LIFO cost of the layers liquidated. The inventory decrement as of March 31, 2016 is expected to be restored prior to year-end and the inventory decrement as of March 31, 2015 was restored prior to December 31, 2015. Our retail operations, wholesale services and midstream operations segments carry inventory at LOCOM, where cost is determined on a WACOG basis. For the periods presented, we recorded LOCOM adjustments to cost of goods sold in the following amounts to reduce the value of our natural gas inventories to market value.
Goodwill We perform an annual impairment test on our reporting units that contain goodwill during the fourth fiscal quarter of each year or more frequently if impairment indicators arise. The amounts of goodwill as of March 31, 2016 and 2015, and December 31, 2015 are provided in the following table.
(1) Based on the result of an interim impairment test performed as of September 30, 2015, we recorded a non-cash impairment charge of the full $14 million ($9 million, net of tax) of goodwill at midstream operations. Earnings per Common Share The following table shows the calculation of our diluted shares attributable to AGL Resources for the periods presented as if performance units currently earned under the plan ultimately vest and as if stock options currently exercisable at prices below the average market prices are exercised.
Accounting Developments Accounting standards adopted in 2016 Effective January 1, 2016, we adopted the accounting guidance described below, none of which had a material impact on our unaudited condensed consolidated financial statements. For additional information on these accounting standards, see Note 3 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K.
Other newly issued accounting standards and updated authoritative guidance In March 2016, the FASB issued updated authoritative guidance related to accounting for certain aspects of share-based payment transactions. The new guidance changes the income tax accounting related to the tax "windfall" or "shortfall" on share-based compensation, increases the tax withholding level allowed before triggering liability classification of the award and allows for a policy election to account for forfeitures as they occur. This guidance is effective for us beginning January 1, 2017, and early adoption is permitted. We are currently evaluating the potential impact of this new guidance. In February 2016, the FASB issued updated authoritative guidance related to accounting for lease transactions. The new guidance will require all organizations that use leased assets, referred to as "lessees," to recognize all leases with terms of more than 12 months on the balance sheet as right of use assets and corresponding liabilities. Lessees will continue to recognize lease expense based on classification of the lease, using a straight-line expense pattern for operating leases and a front-loaded expense pattern for financing leases. The accounting for lessors is substantially equivalent to the existing guidance. It also requires additional disclosures, both qualitative and quantitative, including amount, timing, and uncertainty of cash flows arising from leases. The new guidance is effective for us beginning January 1, 2019 and must be applied using the modified retrospective approach to each prior period presented. Early adoption of this new guidance is permitted. We are currently evaluating the potential impact of this new guidance. In January 2016, the FASB issued updated authoritative guidance related to classification and measurement of financial instruments. The amendments modify the accounting and presentation for certain financial liabilities and equity investments not consolidated or reported using the equity method. The guidance is effective for us beginning January 1, 2018, and limited early adoption is permitted. We are currently evaluating the potential impact of this new guidance, but do not anticipate that it will have a material impact on our consolidated financial statements. In November 2015, the FASB issued updated authoritative guidance related to the balance sheet classification of deferred taxes, which requires companies to present deferred income tax assets and deferred income tax liabilities as noncurrent on a classified balance sheet instead of the current requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts. The guidance is effective for us beginning January 1, 2017, and early application is permitted either prospectively or retrospectively. We have determined that this new guidance will not have a material impact on our consolidated financial statements. In July 2015, the FASB issued an update to authoritative guidance to simplify the measurement of certain inventories. Under the new guidance, inventories are required to be measured at the lower of cost and net realizable value, the latter representing the estimated selling price in the ordinary course of business, reduced by costs of completion, disposal and transportation. Under current guidance, inventories are required to be measured at the lower of cost or market, but depending upon specific circumstances, market could refer to replacement cost, net realizable value, or net realizable value reduced by a normal profit margin. The amendments do not apply to inventories carried on a LIFO basis, which for us applies only to our Nicor Gas inventories. The guidance is to be applied prospectively, is effective for us beginning January 1, 2017, and early adoption is permitted. We are currently evaluating the potential impact of this new guidance. In May 2014, the FASB issued an update to authoritative guidance related to revenue from contracts with customers. The update replaces most of the existing guidance with a single set of principles for recognizing revenue from contracts with customers. In July 2015, the FASB delayed the effective date by one year and the guidance will now be effective for us beginning January 1, 2018. Early adoption of the standard is permitted, but not before the original effective date of December 15, 2016. The new guidance must be applied retrospectively to each prior period presented or via a cumulative effect upon the date of initial application. We have not determined the impact of this new guidance, nor have we selected a transition method. |
Regulated Operations |
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Regulated Operations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Operations | Regulated Operations The accounting policies for our regulated operations are described within "Regulated Operations" in Note 3 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K. Our regulatory assets and liabilities reflected within our unaudited Condensed Consolidated Balance Sheets as of the dates presented are summarized in the following table.
Base rates are designed to provide the opportunity to recover cost and earn a return on investment during the period rates are in effect. As such, all of our regulatory assets recoverable through base rates are subject to review by the respective state regulatory agency during future rate proceedings. We are not aware of evidence that these costs will not be recoverable through either rate riders or base rates, and we believe that we will be able to recover such costs consistent with our historical recoveries. Unrecognized Ratemaking Amounts The following table illustrates our authorized ratemaking amounts that are not recognized on our unaudited Condensed Consolidated Balance Sheets. These amounts are primarily composed of an allowed equity rate of return on assets associated with certain of our regulatory infrastructure programs. These amounts will be recognized as revenues in our financial statements in the periods they are billable to our customers.
Deferred/Accrued Natural Gas Costs We charge our utility customers for natural gas consumed using natural gas cost recovery mechanisms established by the state regulatory agencies. Under these mechanisms, all prudently incurred natural gas costs are passed through to customers without markup, subject to regulatory review. We defer or accrue the difference between the actual cost of gas and the amount of commodity revenue earned in a given period, such that no operating margin is recognized related to these costs. The deferred or accrued amount is either billed or refunded to our customers prospectively through adjustments to the commodity rate. Environmental Remediation Costs We are subject to federal, state and local laws and regulations governing environmental quality and pollution control that require us to remove or remedy the effect on the environment of the disposal or release of specified substances at our current and former operating sites, substantially all of which is related to former MGP sites. The ERC assets and liabilities are associated with our distribution operations segment and remediation costs are generally recoverable from customers through rate mechanisms approved by regulators. Accordingly, both costs incurred to remediate the former MGP sites, plus the future estimated cost recorded as liabilities, net of amounts previously collected, are recognized as a regulatory asset until recovered from customers. Our accrued environmental remediation liabilities are estimates of future remediation costs for investigation and cleanup of our current and former operating sites that are contaminated. These estimates are determined using engineering-based estimates and probabilistic models of potential costs when such estimates cannot be made, on an undiscounted basis. These estimates contain various assumptions, which we refine and update on an ongoing basis. These liabilities do not include other potential expenses, such as unasserted property damage claims, personal injury or natural resource damage claims, legal expenses or other costs for which we may be held liable but for which we cannot reasonably estimate an amount. Our accrued environmental remediation liabilities are not regulatory liabilities; however, the associated expenses are deferred as corresponding regulatory assets until the costs are recovered from customers. We primarily recover these deferred costs through rate riders that authorize dollar-for-dollar recovery. We expect to collect $21 million in revenues over the next 12 months, which is reflected as a current regulatory asset. The following table provides additional information on the estimated costs to remediate our current and former operating sites as of March 31, 2016.
Regulatory Infrastructure Programs An update to our infrastructure improvement programs at our utilities is as follows. Virginia Natural Gas In March 2016, the Virginia Commission approved an extension to our original Steps to Advance Virginia's Energy (SAVE) program, under which Virginia Natural Gas is allowed to invest up to $210 million on qualifying infrastructure projects through 2021 to replace more than 200 miles of aging pipeline infrastructure. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The methods used to determine the fair values of our assets and liabilities are described within "Fair Value Measurements" in Note 3 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K. Derivative Instruments The following table summarizes, by level within the fair value hierarchy, our derivative assets and liabilities that were carried at fair value, net of counterparty offset and collateral, on a recurring basis on our unaudited Condensed Consolidated Balance Sheets as of the dates presented. See Note 6 herein for additional information on our derivative instruments.
Debt Our long-term debt is recorded at amortized cost, with the exception of Nicor Gas’ first mortgage bonds, which are recorded at their acquisition-date fair value. We amortize the fair value adjustment of Nicor Gas’ first mortgage bonds over the lives of the bonds. The following table lists the carrying amount and fair value of our long-term debt as of the dates presented.
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Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments Our objectives and strategies for using derivative instruments, and the related accounting policies and methods used to determine their fair values are described within "Fair Value Measurements" in Note 3 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K. See Note 5 herein for additional information on the fair value of our derivative instruments. Certain of our derivative instruments contain credit-risk-related or other contingent features that could require us to post collateral in the normal course of business when our financial instruments are in net liability positions. As of March 31, 2016, December 31, 2015 and March 31, 2015, for agreements with such features, derivative instruments with liability fair values totaled $65 million, $46 million and $52 million, respectively, for which we had posted no collateral to our counterparties as we exceed the minimum credit rating requirements. As of March 31, 2016, the maximum collateral that could have been required with these features was less than $1 million. For additional information on our credit-risk-related contingent features, see “Energy Marketing Receivables and Payables” in Note 3 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K. Our derivative instrument activities are included within operating cash flows as increases to net income of $51 million and $33 million for the three months ended March 31, 2016 and 2015, respectively. Quantitative Disclosures Related to Derivative Instruments Our derivative instruments include both long and short natural gas positions. A long position is a contract to purchase natural gas, and a short position is a contract to sell natural gas. As of the dates presented, we had natural gas contracts outstanding in the following quantities:
Derivative Instruments on our Unaudited Condensed Consolidated Balance Sheets In accordance with regulatory requirements, gains and losses on derivative instruments used in hedging activities of natural gas purchases for customer use at distribution operations are reflected in accrued natural gas costs within our unaudited Condensed Consolidated Balance Sheets until they are billed to customers. The following amounts deferred as a regulatory asset or liability on our unaudited Condensed Consolidated Balance Sheets are included in the net realized gains (losses) related to these natural gas cost hedging activities as of the periods presented.
The following table presents the fair values and unaudited Condensed Consolidated Balance Sheets classifications of our derivative instruments as of the dates presented.
Derivative Instruments on the Unaudited Condensed Consolidated Statements of Income The following table presents the impacts of our derivative instruments on our unaudited Condensed Consolidated Statements of Income for the periods presented.
Any amounts recognized in operating income related to ineffectiveness or due to a forecasted transaction that is no longer expected to occur were immaterial for the three months ended March 31, 2016 and 2015. Our expected net losses to be reclassified from OCI into cost of goods sold, operation and maintenance expense, interest expense and operating revenues to be recognized on our unaudited Condensed Consolidated Statements of Income over the next 12 months are $4 million. These deferred losses are related to natural gas derivative contracts associated with retail operations’ and Nicor Gas’ system use and our interest rate swaps. The expected losses are based upon the fair values of these financial instruments at March 31, 2016. The effective portions of gains and losses on derivative instruments qualifying as cash flow hedges that were recognized in OCI during the periods are presented on our unaudited Condensed Consolidated Statements of Income. See Note 9 for these amounts. There have been no other significant changes to our derivative instruments, as described in Note 3, Note 5, Note 6 and Note 10 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K. |
Employee Benefit Plans |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans Pension Benefits We sponsor the AGL Resources Inc. Retirement Plan, a tax-qualified defined benefit retirement plan for our eligible employees, which is described in Note 7 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K. Following are the components of our pension costs for the periods indicated.
(1) Effective January 1, 2016, we use a spot rate approach to estimate the service cost and interest cost components. Historically, we estimated these components using a single weighted-average discount rate. Welfare Benefits The benefits of our Health and Welfare Plan for Retirees and Inactive Employees of AGL Resources Inc. are described in Note 7 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K. Following are the components of our welfare costs for the periods indicated.
(1) Effective January 1, 2016, we use a spot rate approach to estimate the service cost and interest cost components. Historically, we estimated these components using a single weighted-average discount rate. |
Debt and Credit Facilities |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Credit Facilities | Debt and Credit Facilities The following table provides maturity dates or ranges, year-to-date weighted average interest rates and amounts outstanding for our various debt securities and facilities for the periods presented. We fully and unconditionally guarantee all debt issued by AGL Capital and the gas facility revenue bonds issued by Pivotal Utility. Additionally, substantially all of Nicor Gas' properties are subject to the lien of the indenture securing its first mortgage bonds. For additional information on our debt and credit facilities, see Note 9 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K.
Commercial Paper Programs We maintain commercial paper programs at AGL Capital and at Nicor Gas that consist of short-term, unsecured promissory notes used in conjunction with cash from operations to fund our seasonal working capital requirements. Working capital needs fluctuate during the year and are highest during the injection period in advance of the Heating Season. Nicor Gas’ commercial paper program supports working capital needs at Nicor Gas, while all of our other subsidiaries and SouthStar participate in AGL Capital’s commercial paper program. During the first three months of 2016, our commercial paper maturities ranged from 1 to 59 days, and at March 31, 2016, remaining terms to maturity ranged from 1 to 46 days. During the first three months of 2016, there were no commercial paper issuances with original maturities over three months. Long-Term Debt On February 1, 2016, $75 million of Nicor Gas first mortgage bonds matured and were repaid using the proceeds from commercial paper borrowings. On January 23, 2015, we executed $800 million in notional value of 10-year and 30-year fixed-rate forward-starting interest rate swaps to hedge potential interest rate volatility prior to our senior note issuance in the fourth quarter of 2015 and our anticipated issuances in 2016. We have designated the forward-starting interest rate swaps, which are settled on the respective debt issuance dates, as cash flow hedges. We settled $200 million of these interest rate swaps on November 18, 2015, in conjunction with the aforementioned senior note issuance. We performed a qualitative assessment of effectiveness on the remaining interest rate swaps as of March 31, 2016 and concluded that the remaining hedges are highly effective. Financial and Non-Financial Covenants The AGL Credit Facility and the Nicor Gas Credit Facility each include a financial covenant that requires us to maintain a ratio of total debt to total capitalization of no more than 70% at the end of any month. The following table contains our debt-to-capitalization ratios for the dates presented, which are below the maximum allowed.
The credit facilities contain certain non-financial covenants that, among other things, restrict liens and encumbrances, loans and investments, acquisitions, dividends and other restricted payments, asset dispositions, mergers and consolidations, and other matters customarily restricted in such agreements. Default Provisions Our credit facilities and other financial obligations include provisions that, if not complied with, could require early payment or similar actions. The most important default events include the following:
We have no triggering events in our debt instruments that are tied to changes in our specified credit ratings or our stock price and have not entered into any transaction that requires us to issue equity based on credit ratings or other triggering events. We were in compliance with all existing debt provisions and covenants, both financial and non-financial, for all periods presented. |
Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity Our other comprehensive income (loss) amounts are aggregated within accumulated other comprehensive loss on our unaudited Condensed Consolidated Balance Sheets. The following table provides changes in the components of our accumulated other comprehensive loss balances, net of the related income tax effects.
The following table provides details of the reclassifications out of accumulated other comprehensive loss and the favorable (unfavorable) impact on net income for the periods presented.
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Non-Wholly Owned Entities and Contingently Redeemable Noncontrolling Interest |
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Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Wholly Owned Entities and Contingently Redeemable Noncontrolling Interest | Non-Wholly Owned Entities and Contingently Redeemable Noncontrolling Interest SouthStar, a joint venture owned by us and Piedmont, is our only VIE for which we are the primary beneficiary. For additional information on SouthStar, see Note 11 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K. Earnings from SouthStar in 2016 and 2015 were allocated entirely in accordance with the ownership interests. On December 9, 2015, we notified Piedmont of our election, in accordance with the change in control provisions in the Second Amended and Restated Limited Liability Company Agreement of SouthStar, to purchase Piedmont’s remaining 15% interest in SouthStar at fair market value. This purchase is contingent upon the closing of the merger between Piedmont and Duke Energy Corporation, which is subject to various closing conditions that are beyond our control and is expected to be completed in 2016. On February 12, 2016, we and Piedmont agreed to various terms of this purchase, including a fair market value of $160 million. During the first quarter of 2016, we reclassified the noncontrolling interest related to Piedmont's 15% interest in SouthStar, whose redemption is beyond our control, as a contingently redeemable noncontrolling interest. Previously, this noncontrolling interest was included in equity. If our purchase of this noncontrolling interest is completed, the difference between the purchase price and the amount of noncontrolling interest will be recorded in equity. A roll-forward of the contingently redeemable noncontrolling interest is detailed below:
Cash flows used in our investing activities include capital expenditures for SouthStar of $1 million and $1 million for the three months ended March 31, 2016 and 2015, respectively. Cash flows used in our financing activities include SouthStar’s distribution to Piedmont for its portion of SouthStar’s annual earnings from the previous year, which generally occurs in the first quarter of each fiscal year. For the three months ended March 31, 2016 and 2015, SouthStar distributed $19 million and $18 million, respectively, to Piedmont. SouthStar’s counterparties have no recourse to our general credit beyond our corporate guarantees that we have provided to SouthStar’s counterparties and natural gas suppliers. The following table provides additional information on SouthStar’s assets and liabilities as of the dates presented. The SouthStar amounts exclude intercompany eliminations and the balances of our wholly-owned subsidiary with an 85% ownership interest in SouthStar.
The following table provides information on SouthStar’s operating revenues and operating expenses for the periods presented, which are consolidated within our unaudited Condensed Consolidated Statements of Income.
Equity Method Investments For more information about our equity method investments, see Note 11 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K. The carrying amounts within our unaudited Condensed Consolidated Balance Sheets of our investments that are accounted for under the equity method were as follows:
Income from our equity method investments is classified as other income on our unaudited Condensed Consolidated Statements of Income. The following table provides the income from our equity method investments for the periods presented.
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Commitments, Guarantees and Contingencies |
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Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Guarantees and Contingencies | Commitments, Guarantees and Contingencies We incur various contractual obligations and financial commitments in the normal course of business that are reasonably likely to have a material effect on liquidity or the availability of capital resources. Contractual obligations include future cash payments required under existing contractual arrangements, such as debt and lease agreements. These obligations may result from both general financing activities and commercial arrangements that are directly supported by related revenue-producing activities. We are also involved in legal or administrative proceedings before various courts and agencies with respect to general claims, environmental remediation and other matters. While we are unable to determine the ultimate outcomes of these contingencies, we believe that our financial statements appropriately reflect these amounts, including the recording of liabilities when a loss is probable and reasonably estimable. For more information on these matters, see Note 12 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K. Contingencies and Guarantees Contingent financial commitments, such as financial guarantees, represent obligations that become payable only if certain predefined events occur. We have certain subsidiaries that enter into various financial and performance guarantees and indemnities providing assurance to third parties. We believe the likelihood of payment under our guarantees is remote. No liabilities have been recorded for such guarantees and indemnifications, as the fair values were inconsequential at inception. Regulatory Matters In August 2014, staff of the Illinois Commission and the CUB filed testimony in the Nicor Gas 2003 gas cost prudence review disputing certain gas loan transactions offered by Nicor Gas under its Chicago Hub services and requesting refunds of $18 million and $22 million, respectively. We filed surrebuttal testimony in December 2014 disputing that any refund is due, as Nicor Gas was authorized to enter into these transactions and revenues associated with such transactions reduced ratepayers’ costs as either credits to the PGA or reductions to base rates consistent with then-current Illinois Commission orders governing these activities. In July 2015, the Administrative Law Judge issued a proposed order concluding that Nicor Gas’ supply costs and purchases in 2003 were prudent, its reconciliation of the related costs was proper, and the propositions by the staff of the Illinois Commission and the CUB were based on hindsight speculation, which is expressly prohibited in a prudence review examination. In November 2015, the Illinois Commission granted the CUB's petition for a rehearing on this matter. In February 2016, the Administrative Law Judge issued a proposed order on the rehearing affirming the original order by the Illinois Commission, which was approved by the Illinois Commission in March 2016. Environmental Matters We are subject to federal, state and local laws and regulations governing environmental quality and pollution control that require us to remove or remedy the effect on the environment of the disposal or release of specified substances at our current and former operating sites. See Note 4 herein for additional information on our environmental remediation costs. In September 2015, the Environmental Protection Agency filed an administrative complaint and notice of opportunity for hearing against Nicor Gas. The complaint alleges violation of the regulatory requirements applicable to polychlorinated biphenyls in the Nicor Gas distribution system and the Environmental Protection Agency seeks a total civil penalty of approximately $0.3 million. While we are unable to predict the ultimate outcome of this matter, the final disposition of this matter is not expected to have a material adverse impact on our liquidity or financial condition. Litigation We are involved in litigation arising in the normal course of business. Although in some cases we are unable to estimate the amount of loss reasonably possible in addition to any amounts already recognized, it is possible that the resolution of these contingencies, either individually or in aggregate, will require us to take charges against, or will result in reductions in, future earnings. Management believes that while the resolutions of these contingencies, whether individually or in aggregate, could possibly be material to earnings in a particular quarter, they will not have a material adverse effect on our consolidated balance sheets or cash flows for the year. For additional litigation information, see Note 12 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Our reportable segments comprise revenue-generating components of the company for which we produce separate financial information internally that we regularly use to make operating decisions and assess performance. Our determination of reportable segments considers the strategic operating units under which we manage sales of various products and services to customers in differing regulatory environments. We manage our businesses through four reportable segments – distribution operations, retail operations, wholesale services and midstream operations. Our non-reportable segments are combined and presented as “other.” Our distribution operations segment is the largest component of our business and includes natural gas local distribution utilities that construct, manage and maintain intrastate natural gas pipelines and distribution facilities in seven states. Although the operations of this segment are geographically dispersed, the operating subsidiaries within the segment have similar economic and risk characteristics as they are regulated utilities with rates determined by individual state regulatory agencies. We are also involved in several related and complementary businesses. Our retail operations segment includes retail natural gas marketing to end-use customers primarily in Georgia and Illinois. Additionally, retail operations provides home equipment protection products and services. Our wholesale services segment engages in natural gas storage and gas pipeline arbitrage and related activities. Additionally, this segment provides natural gas asset management and/or related logistics services for each of our utilities except Nicor Gas, as well as for non-affiliated companies. Our midstream operations segment includes our non-utility storage and pipeline operations, including the operation of high-deliverability natural gas storage assets. Our other segment includes subsidiaries that are not significant on a stand-alone basis and that do not align with one of our reportable segments. The chief operating decision maker of the company is the President and Chief Executive Officer, who utilizes EBIT as the primary measure of profit and loss in assessing the results of each segment’s operations. EBIT includes operating income (loss) and other income and expenses and excludes income taxes and interest expense, which we evaluate on a consolidated basis. Summarized statements of income, balance sheets and capital expenditure information by segment as of, and for the periods presented, are shown in the following tables. Three months ended March 31, 2016
Three months ended March 31, 2015
Identifiable assets are those used in each segment’s operations. Information by segment on our Consolidated Balance Sheet as of December 31, 2015, is as follows:
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Significant Accounting Policies and Methods of Application (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Use of Accounting Estimates | Use of Accounting Estimates The preparation of our financial statements in conformity with GAAP requires us to use judgment and make estimates that affect the reported amounts of assets, liabilities, revenues and expenses and the related disclosures. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our estimates may involve complex situations requiring a high degree of judgment either in the application and interpretation of existing accounting literature or in the development of estimates that impact our financial statements. The most significant estimates relate to the accounting for our rate-regulated subsidiaries, goodwill and other intangible assets, derivatives and hedging activities, uncollectible accounts and other allowances for contingent losses, retirement plan benefit obligations and provisions for income taxes. We evaluate our estimates on an ongoing basis, and our actual results could differ from our estimates. |
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Inventories | Inventories For our regulated utilities, except Nicor Gas, natural gas inventories and the inventories we hold for Marketers in Georgia are carried at cost on a WACOG basis. Nicor Gas’ inventory is carried at cost on a LIFO basis. Under the LIFO method, inventory decrements occurring during the year that are expected to be restored prior to year-end are charged to cost of goods sold at the estimated annual replacement cost, and the difference between this cost and the actual liquidated LIFO layer cost is recorded as a temporary LIFO liquidation on our unaudited Condensed Consolidated Balance Sheets. Interim inventory decrements that are not expected to be restored prior to year-end are charged to cost of goods sold at the actual LIFO cost of the layers liquidated. The inventory decrement as of March 31, 2016 is expected to be restored prior to year-end and the inventory decrement as of March 31, 2015 was restored prior to December 31, 2015. Our retail operations, wholesale services and midstream operations segments carry inventory at LOCOM, where cost is determined on a WACOG basis. |
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Goodwill | Goodwill We perform an annual impairment test on our reporting units that contain goodwill during the fourth fiscal quarter of each year or more frequently if impairment indicators arise. |
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Earnings Per Common Share | Earnings per Common Share The following table shows the calculation of our diluted shares attributable to AGL Resources for the periods presented as if performance units currently earned under the plan ultimately vest and as if stock options currently exercisable at prices below the average market prices are exercised.
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Accounting Developments | Accounting Developments Accounting standards adopted in 2016 Effective January 1, 2016, we adopted the accounting guidance described below, none of which had a material impact on our unaudited condensed consolidated financial statements. For additional information on these accounting standards, see Note 3 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K.
Other newly issued accounting standards and updated authoritative guidance In March 2016, the FASB issued updated authoritative guidance related to accounting for certain aspects of share-based payment transactions. The new guidance changes the income tax accounting related to the tax "windfall" or "shortfall" on share-based compensation, increases the tax withholding level allowed before triggering liability classification of the award and allows for a policy election to account for forfeitures as they occur. This guidance is effective for us beginning January 1, 2017, and early adoption is permitted. We are currently evaluating the potential impact of this new guidance. In February 2016, the FASB issued updated authoritative guidance related to accounting for lease transactions. The new guidance will require all organizations that use leased assets, referred to as "lessees," to recognize all leases with terms of more than 12 months on the balance sheet as right of use assets and corresponding liabilities. Lessees will continue to recognize lease expense based on classification of the lease, using a straight-line expense pattern for operating leases and a front-loaded expense pattern for financing leases. The accounting for lessors is substantially equivalent to the existing guidance. It also requires additional disclosures, both qualitative and quantitative, including amount, timing, and uncertainty of cash flows arising from leases. The new guidance is effective for us beginning January 1, 2019 and must be applied using the modified retrospective approach to each prior period presented. Early adoption of this new guidance is permitted. We are currently evaluating the potential impact of this new guidance. In January 2016, the FASB issued updated authoritative guidance related to classification and measurement of financial instruments. The amendments modify the accounting and presentation for certain financial liabilities and equity investments not consolidated or reported using the equity method. The guidance is effective for us beginning January 1, 2018, and limited early adoption is permitted. We are currently evaluating the potential impact of this new guidance, but do not anticipate that it will have a material impact on our consolidated financial statements. In November 2015, the FASB issued updated authoritative guidance related to the balance sheet classification of deferred taxes, which requires companies to present deferred income tax assets and deferred income tax liabilities as noncurrent on a classified balance sheet instead of the current requirement to separate deferred income tax liabilities and assets into current and noncurrent amounts. The guidance is effective for us beginning January 1, 2017, and early application is permitted either prospectively or retrospectively. We have determined that this new guidance will not have a material impact on our consolidated financial statements. In July 2015, the FASB issued an update to authoritative guidance to simplify the measurement of certain inventories. Under the new guidance, inventories are required to be measured at the lower of cost and net realizable value, the latter representing the estimated selling price in the ordinary course of business, reduced by costs of completion, disposal and transportation. Under current guidance, inventories are required to be measured at the lower of cost or market, but depending upon specific circumstances, market could refer to replacement cost, net realizable value, or net realizable value reduced by a normal profit margin. The amendments do not apply to inventories carried on a LIFO basis, which for us applies only to our Nicor Gas inventories. The guidance is to be applied prospectively, is effective for us beginning January 1, 2017, and early adoption is permitted. We are currently evaluating the potential impact of this new guidance. In May 2014, the FASB issued an update to authoritative guidance related to revenue from contracts with customers. The update replaces most of the existing guidance with a single set of principles for recognizing revenue from contracts with customers. In July 2015, the FASB delayed the effective date by one year and the guidance will now be effective for us beginning January 1, 2018. Early adoption of the standard is permitted, but not before the original effective date of December 15, 2016. The new guidance must be applied retrospectively to each prior period presented or via a cumulative effect upon the date of initial application. We have not determined the impact of this new guidance, nor have we selected a transition method. |
Significant Accounting Policies and Methods of Application (Tables) |
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Schedule of Inventory, Lower of Cost or Market Adjustment | For the periods presented, we recorded LOCOM adjustments to cost of goods sold in the following amounts to reduce the value of our natural gas inventories to market value.
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Schedule of Goodwill | The amounts of goodwill as of March 31, 2016 and 2015, and December 31, 2015 are provided in the following table.
(1) Based on the result of an interim impairment test performed as of September 30, 2015, we recorded a non-cash impairment charge of the full $14 million ($9 million, net of tax) of goodwill at midstream operations. |
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Schedule of Weighted Average Number of Shares | The following table shows the calculation of our diluted shares attributable to AGL Resources for the periods presented as if performance units currently earned under the plan ultimately vest and as if stock options currently exercisable at prices below the average market prices are exercised.
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Regulated Operations (Tables) |
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Regulated Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Regulatory Assets | Our regulatory assets and liabilities reflected within our unaudited Condensed Consolidated Balance Sheets as of the dates presented are summarized in the following table.
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Environmental Exit Costs by Cost | he following table provides additional information on the estimated costs to remediate our current and former operating sites as of March 31, 2016.
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Schedule of Regulatory Assets | The following table illustrates our authorized ratemaking amounts that are not recognized on our unaudited Condensed Consolidated Balance Sheets. These amounts are primarily composed of an allowed equity rate of return on assets associated with certain of our regulatory infrastructure programs. These amounts will be recognized as revenues in our financial statements in the periods they are billable to our customers.
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Fair Value Measurements (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table lists the carrying amount and fair value of our long-term debt as of the dates presented.
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Natural Gas and Interest Rate Derivatives [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes, by level within the fair value hierarchy, our derivative assets and liabilities that were carried at fair value, net of counterparty offset and collateral, on a recurring basis on our unaudited Condensed Consolidated Balance Sheets as of the dates presented. See Note 6 herein for additional information on our derivative instruments.
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Derivative Instruments (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | As of the dates presented, we had natural gas contracts outstanding in the following quantities:
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Loss Recognized In Income | The following amounts deferred as a regulatory asset or liability on our unaudited Condensed Consolidated Balance Sheets are included in the net realized gains (losses) related to these natural gas cost hedging activities as of the periods presented.
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair values and unaudited Condensed Consolidated Balance Sheets classifications of our derivative instruments as of the dates presented.
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Schedule of Derivative Instruments | The following table presents the impacts of our derivative instruments on our unaudited Condensed Consolidated Statements of Income for the periods presented.
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Employee Benefit Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | Following are the components of our welfare costs for the periods indicated.
(1) Effective January 1, 2016, we use a spot rate approach to estimate the service cost and interest cost components. Historically, we estimated these components using a single weighted-average discount rate. Following are the components of our pension costs for the periods indicated.
(1) Effective January 1, 2016, we use a spot rate approach to estimate the service cost and interest cost components. Historically, we estimated these components using a single weighted-average discount rate. |
Debt and Credit Facilities (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The following table provides maturity dates or ranges, year-to-date weighted average interest rates and amounts outstanding for our various debt securities and facilities for the periods presented. We fully and unconditionally guarantee all debt issued by AGL Capital and the gas facility revenue bonds issued by Pivotal Utility. Additionally, substantially all of Nicor Gas' properties are subject to the lien of the indenture securing its first mortgage bonds. For additional information on our debt and credit facilities, see Note 9 to our consolidated financial statements and related notes included in Item 8 of our 2015 Form 10-K.
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Schedule of Capitalization | The following table contains our debt-to-capitalization ratios for the dates presented, which are below the maximum allowed.
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Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table provides changes in the components of our accumulated other comprehensive loss balances, net of the related income tax effects.
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Reclassification out of Accumulated Other Comprehensive Income | The following table provides details of the reclassifications out of accumulated other comprehensive loss and the favorable (unfavorable) impact on net income for the periods presented.
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Non-Wholly Owned Entities and Contingently Redeemable Noncontrolling Interest (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | A roll-forward of the contingently redeemable noncontrolling interest is detailed below:
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Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net | The SouthStar amounts exclude intercompany eliminations and the balances of our wholly-owned subsidiary with an 85% ownership interest in SouthStar.
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Schedule of Variable Interest Entities | The following table provides information on SouthStar’s operating revenues and operating expenses for the periods presented, which are consolidated within our unaudited Condensed Consolidated Statements of Income.
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Equity Method Investments | The carrying amounts within our unaudited Condensed Consolidated Balance Sheets of our investments that are accounted for under the equity method were as follows:
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Schedule of Other Nonoperating Income, by Component | Income from our equity method investments is classified as other income on our unaudited Condensed Consolidated Statements of Income. The following table provides the income from our equity method investments for the periods presented.
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Summarized statements of income, balance sheets and capital expenditure information by segment as of, and for the periods presented, are shown in the following tables. Three months ended March 31, 2016
Three months ended March 31, 2015
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Reconciliation of Revenue from Segments to Consolidated |
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Reconciliation of Assets from Segment to Consolidated | Identifiable assets are those used in each segment’s operations. Information by segment on our Consolidated Balance Sheet as of December 31, 2015, is as follows:
|
Proposed Merger with Southern Company (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Aug. 23, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Business Acquisition [Line Items] | |||
Merger-related expenses | $ 3,000,000 | $ 0 | |
Southern Company [Member] | |||
Business Acquisition [Line Items] | |||
Common stock right to convert to cash, price per share (in dollars per share) | $ 66 | ||
Merger termination fee | $ 201,000,000 | ||
Reimbursement of expenses upon termination, up to | $ 5,000,000 | ||
Liability for merger termination fee at carrying value | 0 | ||
Operation and Maintenance Expense [Member] | Southern Company [Member] | |||
Business Acquisition [Line Items] | |||
Merger-related expenses | 3,000,000 | ||
Merger related costs, net of tax | $ 2,000,000 |
Significant Accounting Policies and Methods of Application - Lower of Cost or Market Adjustments (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Lower of Cost or Market Adjustments [Abstract] | ||
LOCOM adjustments | $ 3 | $ 10 |
Significant Accounting Policies and Methods of Application - Changes in Amount of Goodwill (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Goodwill [Roll Forward] | |
Impairment | $ (14) |
Goodwill - ending balance | 1,813 |
Goodwill, impairment loss, net of tax | 9 |
Distribution Operations [Member] | |
Goodwill [Roll Forward] | |
Impairment | 0 |
Goodwill - ending balance | 1,640 |
Retail Operations [Member] | |
Goodwill [Roll Forward] | |
Impairment | 0 |
Goodwill - ending balance | 173 |
Midstream Operations [Member] | |
Goodwill [Roll Forward] | |
Impairment | (14) |
Goodwill - ending balance | $ 0 |
Significant Accounting Policies and Methods of Application - Potentially Dilutive Common Share Calculation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Potentially Dilutive Common Share Calculation [Abstract] | ||
Net income attributable to AGL Resources | $ 182 | $ 193 |
Denominator: | ||
Basic weighted average number of shares outstanding (in shares) | 120.1 | 119.3 |
Effect of dilutive securities (in shares) | 0.3 | 0.3 |
Diluted weighted average number of shares outstanding (in shares) | 120.4 | 119.6 |
Earnings per common share | ||
Basic earnings per common share attributable to AGL Resources (in dollars per share) | $ 1.52 | $ 1.62 |
Diluted earnings per common share attributable to AGL Resources (in dollars per share) | $ 1.51 | $ 1.62 |
Regulated Operations - Estimated Recognition of Rate Making Assets (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
---|---|---|---|
Regulatory Assets [Line Items] | |||
Regulatory Asset | $ 711 | $ 738 | $ 697 |
Regulatory Asset Off Balance Sheet [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Asset | 124 | 122 | 133 |
Atlanta Gas Light [Member] | Regulatory Asset Off Balance Sheet [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Asset | 105 | 103 | 119 |
Virginia Natural Gas [Member] | Regulatory Asset Off Balance Sheet [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Asset | 12 | 12 | 12 |
Elizabethtown Gas [Member] | Regulatory Asset Off Balance Sheet [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Asset | 4 | 4 | 2 |
Nicor Gas [Member] | Regulatory Asset Off Balance Sheet [Member] | |||
Regulatory Assets [Line Items] | |||
Regulatory Asset | $ 3 | $ 3 | $ 0 |
Fair Value Measurements (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
---|---|---|---|
Fair Value Disclosures [Abstract] | |||
Weather derivative premium | $ 9 | $ 10 | $ 1 |
Fair Value Measurements - Derivative Assets and Liabilities (Details) - Natural Gas and Interest Rate Derivatives [Member] - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | $ 177 | $ 208 | $ 212 |
Liabilities | (65) | (46) | (52) |
Netting of counterparty offset and cash collateral, Assets | 69 | 33 | 104 |
Netting of counterparty offset and cash collateral, Liabilities | 96 | 63 | 106 |
Quoted prices in active markets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 0 | 53 | 0 |
Liabilities | (96) | (63) | (106) |
Significant other observable inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets | 108 | 122 | 108 |
Liabilities | $ (65) | $ (46) | $ (52) |
Fair Value Measurements - Amortized Cost and Fair Value of Long-Term Debt (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt carrying amount | $ 3,743 | $ 3,820 | $ 3,580 |
Significant other observable inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt fair value | $ 4,156 | $ 4,066 | $ 4,102 |
Derivative Instruments - Net Long Natural Gas Contracts (Details) - Bcf |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Derivative [Line Items] | |||
Total volumes | 86 | 240 | (9) |
Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Total volumes | 5 | 9 | 5 |
Not Designated as Hedges [Member] | |||
Derivative [Line Items] | |||
Total volumes | 81 | 231 | (14) |
Short [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Total volumes | 6 | 6 | 6 |
Short [Member] | Not Designated as Hedges [Member] | |||
Derivative [Line Items] | |||
Total volumes | 2,974 | 2,735 | 3,089 |
Long [Member] | Cash Flow Hedges [Member] | |||
Derivative [Line Items] | |||
Total volumes | 11 | 15 | 11 |
Long [Member] | Not Designated as Hedges [Member] | |||
Derivative [Line Items] | |||
Total volumes | 3,055 | 2,966 | 3,075 |
Net Long (Short) Position [Member] | |||
Derivative [Line Items] | |||
Total volumes | 86 | 240 | (9) |
Derivative Instruments - Gains and Losses on Derivative Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Nicor Gas [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Realized gains (losses) related to hedging natural gas costs | $ (2) | $ (3) |
Elizabethtown Gas [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Realized gains (losses) related to hedging natural gas costs | $ (6) | $ (4) |
Employee Benefit Plans - Components of Pension and Other Retirement Benefit Costs (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 6 | $ 7 |
Interest cost | 10 | 11 |
Expected return on plan assets | (16) | (16) |
Net amortization of prior service credit | 0 | (1) |
Recognized actuarial loss | 6 | 8 |
Net periodic pension benefit cost | 6 | 9 |
Health and Welfare Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 3 | 3 |
Expected return on plan assets | (2) | (2) |
Net amortization of prior service credit | (1) | 0 |
Recognized actuarial loss | 1 | 1 |
Net periodic pension benefit cost | $ 2 | $ 3 |
Debt and Credit Facilities - Debt-to-Capitalization Ratios (Details) |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
---|---|---|---|
AGL Resources Inc [Member] | |||
Schedule of Capitalization [Line Items] | |||
Debt covenants (as a percent) | 0.50 | 0.54 | 0.50 |
Nicor Gas [Member] | |||
Schedule of Capitalization [Line Items] | |||
Debt covenants (as a percent) | 0.47 | 0.56 | 0.54 |
Non-Wholly Owned Entities and Contingently Redeemable Noncontrolling Interest - Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Increase (Decrease) in Redeemable Noncontrolling Interest [Roll Forward] | ||
Balance as of December 31, 2015 | $ 0 | |
Reclassification of noncontrolling interest | 46 | |
Net income attributable to noncontrolling interest | 11 | $ 12 |
Distribution to noncontrolling interest | (19) | (18) |
Balance as of March 31, 2016 | $ 38 | $ 0 |
Non-Wholly Owned Entities and Contingently Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Feb. 12, 2016 |
|
Schedule of Equity Method Investments [Line Items] | |||
Expenditures for property, plant and equipment | $ 235 | $ 188 | |
Distribution to noncontrolling interest | 19 | 18 | |
South Star [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Expenditures for property, plant and equipment | $ 1 | 1 | |
Ownership interest in variable interest entity (as a percent) | 85.00% | ||
South Star [Member] | Piedmont [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest to be sold (as a percent) | 15.00% | ||
Letter of agreement for sale of ownership interest | $ 160 | ||
Distribution to noncontrolling interest | $ 19 | $ 18 |
Non-Wholly Owned Entities and Contingently Redeemable Noncontrolling Interest - SouthStar's Revenues and Expenses (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Variable Interest Entity [Line Items] | ||
Operating revenues | $ 1,334 | $ 1,721 |
Cost of goods sold | 578 | 935 |
Operation and maintenance | 241 | 249 |
Depreciation and amortization | 102 | 97 |
Taxes other than income taxes | 62 | 76 |
Total operating expenses | 986 | 1,357 |
Operating income | 348 | 364 |
South Star [Member] | ||
Variable Interest Entity [Line Items] | ||
Operating revenues | 254 | 311 |
Cost of goods sold | 157 | 203 |
Operation and maintenance | 22 | 23 |
Depreciation and amortization | 2 | 2 |
Taxes other than income taxes | 0 | 1 |
Total operating expenses | 181 | 229 |
Operating income | $ 73 | $ 82 |
Non-Wholly Owned Entities and Contingently Redeemable Noncontrolling Interest - Equity Method Investments (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
---|---|---|---|
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 84 | $ 80 | $ 76 |
Triton [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 48 | 49 | 57 |
Horizon Pipeline [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 14 | 14 | 14 |
PennEast Pipeline [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 12 | 9 | 2 |
Atlantic Coast Pipeline [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | 9 | 7 | 3 |
Other [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investments | $ 1 | $ 1 | $ 0 |
Non-Wholly Owned Entities and Contingently Redeemable Noncontrolling Interest - Income from Equity Method Investments (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Horizon Pipeline [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Income from equity method investment | $ 1 | $ 1 |
Commitments, Guarantees and Contingencies (Details) - USD ($) |
1 Months Ended | ||
---|---|---|---|
Sep. 30, 2015 |
Aug. 31, 2014 |
Mar. 31, 2016 |
|
Gain Contingencies [Line Items] | |||
Guarantees and indemnifications liability, carrying value | $ 0 | ||
Illinois Commission [Member] | |||
Gain Contingencies [Line Items] | |||
Loss contingency, damages sought | $ 18,000,000 | ||
CUB [Member] | |||
Gain Contingencies [Line Items] | |||
Loss contingency, damages sought | $ 22,000,000 | ||
Unfavorable Regulatory Action [Member] | Nicor Gas [Member] | |||
Gain Contingencies [Line Items] | |||
Loss contingency, damages sought | $ 300,000 |
Segment Information (Details) |
3 Months Ended |
---|---|
Mar. 31, 2016
state
segment
| |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 4 |
Distribution Operations [Member] | |
Segment Reporting Information [Line Items] | |
Number of states in which entity operates | state | 7 |
Label | Element | Value |
---|---|---|
Distribution Operations [Member] | ||
Goodwill | us-gaap_Goodwill | $ 1,640,000,000 |
Goodwill | us-gaap_Goodwill | 1,640,000,000 |
Midstream Operations [Member] | ||
Goodwill | us-gaap_Goodwill | 14,000,000 |
Goodwill | us-gaap_Goodwill | 0 |
Retail Operations [Member] | ||
Goodwill | us-gaap_Goodwill | 173,000,000 |
Goodwill | us-gaap_Goodwill | $ 173,000,000 |
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