Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2014

Inventories at December 31 consisted of:



	2014		2013
	(In thousands)
Aggregates held for resale	$	108,161	$	101,568
Materials and supplies	65,683		69,808
Asphalt oil	42,135		38,099
Merchandise for resale	24,420		21,720
Natural gas in storage (current)	19,302		16,417
Other	41,110		34,779
Total	$	300,811	$	282,391

AFUDC and interest capitailized

The amount of AFUDC and interest capitalized for the years ended December 31 were as follows:



	2014		2013		2012
			(In thousands)
Interest capitalized	$	8,586	$	6,033	$	8,659
AFUDC - borrowed	$	3,022	$	2,767	$	2,483
AFUDC - equity	$	5,803	$	3,322	$	4,530

Property, plant and equipment

Property, plant and equipment at December 31 was as follows:



	2014			2013			Weighted Average Depreciable Life in Years
	(Dollars in thousands, where applicable)
Regulated:
Electric:
Generation	$	627,952		$	570,394		42
Distribution	343,692			308,202			39
Transmission	229,997			196,824			48
Construction in progress	150,445			141,365			-
Other	105,015			99,037			15
Natural gas distribution:
Distribution	1,481,390			1,384,587			40
Construction in progress	59,310			46,763			-
Other	364,059			345,551			27
Pipeline and energy services:
Transmission	449,276			418,594			53
Gathering	39,595			39,597			20
Storage	43,994			42,939			60
Construction in progress	5,386			6,937			-
Other	39,910			39,504			33
Nonregulated:
Pipeline and energy services:
Midstream	227,598			213,063			16
Construction in progress	314,304			188,641			-
Other	100,170			12,897			18
Exploration and production:
Oil and natural gas properties	3,337,177			3,017,879			*
Other	65,702			42,969			8
Construction materials and contracting:
Land	125,372			125,551			-
Buildings and improvements	70,566			70,000			19
Machinery, vehicles and equipment	921,564			906,774			12
Construction in progress	8,709			13,315			-
Aggregate reserves	403,731			394,715			**
Construction services:
Land	5,265			4,821			-
Buildings and improvements	17,936			16,628			20
Machinery, vehicles and equipment	112,973			105,991			6
Other	8,221			7,508			4
Other:
Land	2,837			2,837			-
Other	48,100			47,160			23
Eliminations	(17,075		)	(7,177		)
Less accumulated depreciation, depletion and amortization	4,166,407			3,872,487
Net property, plant and equipment	$	5,526,764		$	4,931,379


*	Amortized on the units-of-production method based on total proved reserves at a BOE average rate of $21.17, $17.41 and $15.28 for the years ended December 31, 2014, 2013 and 2012, respectively. Includes oil and natural gas properties accounted for under the full-cost method, of which $132.1 million and $124.9 million were excluded from amortization at December 31, 2014 and 2013, respectively.


**	Depleted on the units-of-production method.

SEC Defined Pricing

SEC Defined Prices for each quarter in 2014 were as follows:



SEC Defined Prices for the 12 months ended	NYMEX Oil Price (per Bbl)		Henry Hub Gas Price (per MMBtu)		Ventura Gas Price (per MMBtu)
December 31, 2014	$	94.99	$	4.34	$	7.71
September 30, 2014	99.08		4.24		7.60
June 30, 2014	100.27		4.10		7.47
March 31, 2014	98.46		3.99		7.33

For purposes of comparison, first-of-the-month prices were as follows:



	NYMEX Oil Price (per Bbl)		Henry Hub Gas Price (per MMBtu)		Ventura Gas Price (per MMBtu)
January 2015	$	53.27	$	3.00	$	3.06
February 2015	48.24		2.68		2.78

Summary of natural gas and oil properties not subject to amortization

The following table summarizes the Company's oil and natural gas properties not subject to amortization at December 31, 2014, in total and by the year in which such costs were incurred:



			Year Costs Incurred
	Total		2014		2013		2012		2011 and prior
	(In thousands)
Acquisition	$	97,795	$	82,233	$	1,528	$	475	$	13,559
Development	14,312		3,361		9,928		484		539
Exploration	18,221		10,961		3,126		3,885		249
Capitalized interest	1,813		1,343		203		67		200
Total costs not subject to amortization	$	132,141	$	97,898	$	14,785	$	4,911	$	14,547

Percentage-of-completion method

Costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings on uncompleted contracts at December 31, were as follows:



	2014		2013
	(In thousands)
Costs and estimated earnings in excess of billings on uncompleted contracts	$	58,243	$	60,828
Billings in excess of costs and estimated earnings on uncompleted contracts	$	47,011	$	84,189

Amounts representing balances billed but not paid by customers under retainage provisions in contracts at December 31, were as follows:



	2014		2013
	(In thousands)
Short-term retainage*	$	47,551	$	55,906
Long-term retainage**	1,053		4,229
Total retainage	$	48,604	$	60,135


*	Expected to be paid within one year or less and included in receivables, net.


**	Included in deferred charges and other assets - other.

Schedule of earnings per share reconciliation

Net income (loss) was the same for both the basic and diluted earnings (loss) per share calculations. A reconciliation of the weighted average common shares outstanding used in the basic and diluted earnings (loss) per share calculation was as follows:



	2014	2013	2012
		(In thousands)
Weighted average common shares outstanding - basic	192,507	188,855	188,826
Effect of dilutive performance share awards	80	838	—
Weighted average common shares outstanding - diluted	192,587	189,693	188,826
Shares excluded from the calculation of diluted earnings per share	—	—	58

Cash expenditures for interest and income taxes and noncash investing transactions

Cash expenditures for interest and income taxes for the years ended December 31 were as follows:



	2014		2013		2012
			(In thousands)
Interest, net of amount capitalized	$	81,351	$	81,689	$	74,378
Income taxes paid, net	$	69,087	$	24,857	$	3,277

Noncash investing transactions at December 31 were as follows:



	2014		2013		2012
			(In thousands)
Property, plant and equipment additions in accounts payable	$	103,327	$	67,129	$	76,205

After-tax changes in the components of accumulated other comprehensive income (loss)

The after-tax changes in the components of accumulated other comprehensive loss as of December 31, 2014, 2013 and 2012, were as follows:



	Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Hedges			Post- retirement Liability Adjustment			Foreign Currency Translation Adjustment			Net Unrealized Gain (Loss) on Available- for-sale Investments			Total Accumulated Other Comprehensive Loss
							(In thousands)
Balance at December 31, 2012	$	6,018		$	(54,347	)	$	(511	)	$	119		$	(48,721	)
Other comprehensive income (loss) before reclassifications	(5,594		)	18,539			(299		)	(194		)	12,452
Amounts reclassified from accumulated other comprehensive loss	(4,189		)	2,001			143			109			(1,936		)
Net current-period other comprehensive income (loss)	(9,783		)	20,540			(156		)	(85		)	10,516
Balance at December 31, 2013	(3,765		)	(33,807		)	(667		)	34			(38,205		)
Other comprehensive income (loss) before reclassifications	—			(12,409		)	(162		)	(154		)	(12,725		)
Amounts reclassified from accumulated other comprehensive loss	694			796			—			135			1,625
Amounts reclassified from accumulated other comprehensive loss to a regulatory asset	—			7,202			—			—			7,202
Net current-period other comprehensive income (loss)	694			(4,411		)	(162		)	(19		)	(3,898		)
Balance at December 31, 2014	$	(3,071	)	$	(38,218	)	$	(829	)	$	15		$	(42,103	)

Reclassification out of accumulated other comprehensive income (loss)

Reclassifications out of accumulated other comprehensive loss for the year ended December 31 were as follows:



	2014			2013			Location on Consolidated Statements of Income
	(In thousands)
Reclassification adjustment for gain (loss) on derivative instruments included in net income:
Commodity derivative instruments	$	(468	)	$	7,803		Operating revenues
Interest rate derivative instruments	(639		)	(1,066		)	Interest expense
	(1,107		)	6,737
	413			(2,548		)	Income taxes
	(694		)	4,189
Amortization of postretirement liability losses included in net periodic benefit cost	(1,288		)	(3,277		)	(a)
	492			1,276			Income taxes
	(796		)	(2,001		)
Reclassification adjustment for loss on foreign currency translation adjustment included in net income	—			(213		)	Earnings (loss) from equity method investments
	—			70			Earnings (loss) from equity method investments
	—			(143		)
Reclassification adjustment for loss on available-for-sale investments included in net income	(208		)	(168		)	Other income
	73			59			Income taxes
	(135		)	(109		)
Total reclassifications	$	(1,625	)	$	1,936


(a)	Included in net periodic benefit cost (credit). For more information, see Note 16.