Significant Accounting Policies and Methods of Application (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Inventory Lower of Cost or Market Adjustment

As indicated in the following table, for any declines considered to be other than temporary, we recorded LOCOM adjustments to cost of goods sold to reduce the value of our natural gas inventories to market value.



In millions	2015		2014		2013
Retail operations	$	3	$	4	$	1
Wholesale services ⁽¹⁾	19		73		8
Other	1		—		—
Total	$	23	$	77	$	9


(1)	The increase in 2014 was due to a significant decline in natural gas prices in December 2014.

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment

A summary of our PP&E by classification as of December 31, 2015 and 2014 is provided in the following table.



In millions	2015		2014
Transportation and distribution	$	9,912	$	9,105
Storage facilities	1,255		1,202
Other	985		919
Construction work in progress	414		326
PP&E, gross	12,566		11,552
Less accumulated depreciation	2,775		2,462
PP&E, net	$	9,791	$	9,090

Schedule of Goodwill

The amounts of goodwill as of December 31, 2015 and 2014 are provided below.



In millions	Distribution operations		Retail operations		Midstream operations			Consolidated
Goodwill - December 31, 2014	$	1,640	$	173	$	14		$	1,827
Impairment	—		—		(14		)	(14		)
Goodwill - December 31, 2015	$	1,640	$	173	$	—		$	1,813

Schedule of Finite-Lived Intangible Assets

Our intangible assets within our retail operations segment are presented in the following table and represent the estimated fair value at the date of acquisition of the acquired intangible assets in our businesses. As indicated previously, we perform an impairment review when impairment indicators are present. If present, we first determine whether the carrying amount of the asset is recoverable through the undiscounted future cash flows expected from the asset. If the carrying amount is not recoverable, we measure the impairment loss, if any, as the amount by which the carrying amount of the asset exceeds its fair value.



		December 31, 2015							December 31, 2014
In millions	Weighted average amortization period (in years)	Gross		Accumulated amortization			Net		Gross		Accumulated amortization			Net
Customer relationships	13	$	132	$	(57	)	$	75	$	130	$	(42	)	$	88
Trade names	13	45		(11		)	34		45		(8		)	37
Total		$	177	$	(68	)	$	109	$	175	$	(50	)	$	125

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Amortization expense for the next five years is expected to be as follows:



In millions	Amortization Expense
2016	$	17
2017	15
2018	14
2019	12
2020	11

Schedule of Other Nonoperating Income (Expense)

Our other income is detailed in the following table. For more information on our equity investment income, see Note 11.



In millions	2015		2014		2013
Equity investment income	$	6	$	8	$	3
AFUDC - equity	4		5		12
Other, net	3		1		1
Total other income	$	13	$	14	$	16

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.



In millions (except per share amounts)	2015		2014			2013
Income from continuing operations attributable to AGL Resources	$	353	$	562		$	290
(Loss) income from discontinued operations, net of tax	—		(80		)	5
Net income attributable to AGL Resources	$	353	$	482		$	295
Denominator:
Basic weighted average number of common shares outstanding ⁽¹⁾	119.6		118.8			117.9
Effect of dilutive securities	0.3		0.4			0.4
Diluted weighted average number of common shares outstanding ⁽²⁾	119.9		119.2			118.3
Basic earnings (loss) per common share
Continuing operations	$	2.95	$	4.73		$	2.46
Discontinued operations	—		(0.67		)	0.04
Basic earnings per common share attributable to AGL Resources	$	2.95	$	4.06		$	2.50
Diluted earnings (loss) per common share
Continuing operations	$	2.94	$	4.71		$	2.45
Discontinued operations	—		(0.67		)	0.04
Diluted earnings per common share attributable to AGL Resources	$	2.94	$	4.04		$	2.49

(1) Daily weighted average shares outstanding.


(2)	All outstanding stock options for whose effect would have been anti-dilutive were excluded from the computation of diluted earnings per common share.

Depreciation [Member]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment

More information on our rates used and the rate method is provided in the following table.



	2015		2014		2013
Atlanta Gas Light ⁽¹⁾	2.4	%	2.3	%	2.6	%
Chattanooga Gas ⁽¹⁾	2.5		2.5		2.5
Elizabethtown Gas ⁽²⁾	2.4		2.5		2.4
Elkton Gas ⁽²⁾	2.7		2.8		2.4
Florida City Gas ⁽²⁾	3.9		3.9		3.8
Nicor Gas ^{(2) (3)}	3.1		3.1		3.1
Virginia Natural Gas ⁽¹⁾	2.5		2.5		2.5


(1)	Average composite straight-line depreciation rates for depreciable property, excluding transportation equipment, which may be depreciated in excess of useful life and recovered in rates.


(2)	Composite straight-line depreciation rates.


(3)	In October 2013, the Illinois Commission approved a composite depreciation rate of 3.07%. The depreciation rate was effective as of August 30, 2013, the date the depreciation study was filed, and had the effect of reducing our 2014 and 2013 depreciation expense by $51 million and $19 million, respectively.

Estimated Useful Lives [Member]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment

For our non-regulated segments, we compute depreciation expense on a straight-line basis over the following estimated useful lives of the assets.



In years		Estimated useful life
Transportation equipment		5 – 10
Storage caverns		40 – 60
Other		up to 40

Authorized AFUDC Rates [Member]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment

More information on our authorized or actual AFUDC rates is provided in the following table.



	2015			2014			2013
Atlanta Gas Light	8.10		%	8.10		%	8.10		%
Nicor Gas ⁽¹⁾	0.82		%	0.24		%	0.31		%
Chattanooga Gas	7.41		%	7.41		%	7.41		%
Elizabethtown Gas ⁽¹⁾	1.69		%	0.44		%	0.41		%
AFUDC (in millions) ⁽²⁾	$	6		$	7		$	18


(1)	Variable rate is determined by FERC method of AFUDC accounting.


(2)	Amount recorded on the Consolidated Statements of Income.