Stockholder's Equity - Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2020

Accumulated Other Comprehensive Income (Loss)

Stockholders' Equity

Common Stock Issuances

On June 30, 2020, we filed a shelf registration statement with the SEC to facilitate the issuance of our common stock from time to time. On August 17, 2020, we filed a prospectus supplement under the shelf registration statement for an ATM equity program under which we may issue and sell shares of our common stock up to an aggregate offering price of $75.0 million. In September 2020, we issued 0.1 million shares of common stock at price per share of $83.21 and received net proceeds of approximately $10.2 million, after deducting commissions and other fees of $0.4 million. In October 2020, we issued an additional 0.6 million shares at price per share of $82.88 and received approximately $50.8 million in net proceeds, after deducting commissions and other fees of $1.1 million.

We maintain an effective shelf registration statement with the SEC for the issuance of shares under our DRIP. Depending on our capital needs and subject to market conditions, in addition to other possible debt and equity offerings, we may consider issuing additional shares under the direct stock purchase component of the DRIP. In the third quarter of 2020, we issued 0.1 million shares at price per share of $84.90 and received net proceeds of $9.0 million under the DRIP. In October 2020, we issued an additional 0.1 million shares at price per share of $86.99 and received approximately $13.0 million in net proceeds.

We intend to use the net proceeds from the ATM equity program and the DRIP, after deducting the commissions or other fees and related offering expenses payable by us, for general corporate purposes, including, but not limited to, financing of capital expenditures, repayment of short-term debt, financing acquisitions, investing in subsidiaries, and general working capital purposes.

Accumulated Other Comprehensive Loss

Defined benefit pension and postretirement plan items, unrealized gains (losses) of our propane swap agreements and natural gas swaps and futures contracts, designated as commodity contracts cash flow hedges, and the unrealized gains (losses) of our interest rate swap agreements designated as cash flow hedges are the components of our accumulated other comprehensive loss. The following tables present the changes in the balance of accumulated other comprehensive (loss)/income as of September 30, 2020 and 2019. All amounts except the stranded tax reclassification are presented net of tax.


	Defined Benefit		Commodity		Interest Rate
	Pension and		Contracts		Swap
	Postretirement		Cash Flow		Cash Flow
	Plan Items		Hedges		Hedges		Total
(in thousands)
As of December 31, 2019	$	(4,933)	$	(1,334)	$	—	$	(6,267)
Other comprehensive income before reclassifications	—		3,594		23		3,617
Amounts reclassified from accumulated other comprehensive income (loss)	198		(1,144)		(33)		(979)
Net current-period other comprehensive income	198		2,450		(10)		2,638

As of September 30, 2020	$	(4,735)	$	1,116	$	(10)	$	(3,629)


(in thousands)
As of December 31, 2018	$	(5,928)	$	(785)	$	—	$	(6,713)
Other comprehensive income (loss) before reclassifications	(80)		1,780		—		1,700
Amounts reclassified from accumulated other comprehensive income/(loss)	312		(587)		—		(275)
Net prior-period other comprehensive income	232		1,193		—		1,425
Prior-year reclassification	—		(115)		—		(115)
As of September 30, 2019	$	(5,696)	$	293	$	—	$	(5,403)

The following table presents amounts reclassified out of accumulated other comprehensive loss for the three and nine months ended September 30, 2020 and 2019. Deferred gains or losses for our commodity contracts and interest rate swap cash flow hedges are recognized in earnings upon settlement.


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
(in thousands)
Amortization of defined benefit pension and postretirement plan items:
Prior service credit (1)	$	19	$	19	$	57	$	58
Net loss(1)	(108)		(44)		(323)		(370)
Total before income taxes	(89)		(25)		(266)		(312)
Income tax benefit	23		5		68		80
Net of tax	(66)		(20)		(198)		(232)
Gains and losses on commodity contracts cash flow hedges:
Propane swap agreements (2)	116		290		1,581		1,148
Natural gas swaps (2)(3)	—		(4)		—		7
Natural gas futures (2)(3)	—		348		—		(350)
Total before income taxes	116		634		1,581		805
Income tax expense	(32)		(179)		(437)		(218)
Net of tax	84		455		1,144		587
Gains on interest rate swap cash flow hedges:
Interest rate swap agreements	34		—		45		—
Total before income taxes	34		—		45		—
Income tax expense	(9)		—		(12)		—
Net of tax	25		—		33		—
Total reclassifications for the period	$	43	$	435	$	979	$	355

(1) These amounts are included in the computation of net periodic costs (benefits). See Note 10, Employee Benefit Plans, for additional details.

(2) These amounts are included in the effects of gains and losses from derivative instruments. See Note 13, Derivative Instruments, for additional details.

(3) PESCO's results are reflected as discontinued operations in our condensed consolidated statements of income.

Amortization of defined benefit pension and postretirement plan items is included in other expense, net gains and losses on propane swap agreements, natural gas swaps, and natural gas futures contracts are included in cost of sales, the realized gain or loss on interest rate swap agreements is recognized as a component of interest charges in the accompanying condensed consolidated statements of income. The income tax benefit is included in income tax expense in the accompanying condensed consolidated statements of income.