Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 28, 2015 | |
Entity Information [Line Items] | ||
Entity registrant name | MDU RESOURCES GROUP INC | |
Entity central index key | 67,716 | |
Current fiscal year end date | --12-31 | |
Entity filer category | Large Accelerated Filer | |
Entity common stock, shares outstanding | 195,063,757 | |
Document fiscal year focus | 2,015 | |
Document fiscal period focus | Q2 | |
Document type | 10-Q | |
Amendment flag | false | |
Document period end date | Jun. 30, 2015 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating revenues: | ||||
Electric, natural gas distribution and regulated pipeline and energy services | $ 215,472 | $ 226,472 | $ 621,762 | $ 678,775 |
Nonregulated pipeline and energy services, construction materials and contracting, construction services and other | 770,743 | 726,092 | 1,226,802 | 1,174,551 |
Total operating revenues | 986,215 | 952,564 | 1,848,564 | 1,853,326 |
Operating expenses: | ||||
Fuel and purchased power | 19,327 | 21,046 | 43,146 | 47,590 |
Purchased natural gas sold | 66,589 | 82,252 | 267,739 | 322,329 |
Cost of crude oil | 44,781 | 0 | 47,051 | 0 |
Operation and maintenance: | ||||
Electric, natural gas distribution and regulated pipeline and energy services | 70,370 | 65,348 | 139,011 | 131,197 |
Nonregulated pipeline and energy services, construction materials and contracting, construction services and other | 650,188 | 636,096 | 1,077,990 | 1,048,166 |
Depreciation, depletion and amortization | 54,154 | 50,381 | 107,151 | 100,645 |
Taxes, other than income | 35,478 | 35,087 | 77,478 | 77,437 |
Total operating expenses | 940,887 | 890,210 | 1,759,566 | 1,727,364 |
Operating income | 45,328 | 62,354 | 88,998 | 125,962 |
Other income | 2,320 | 2,470 | 2,764 | 4,638 |
Interest expense | 23,790 | 21,484 | 46,919 | 42,431 |
Income before income taxes | 23,858 | 43,340 | 44,843 | 88,169 |
Income taxes | 9,801 | 13,894 | 15,626 | 27,696 |
Income from continuing operations | 14,057 | 29,446 | 29,217 | 60,473 |
Income (loss) from discontinued operations, net of tax (Note 9) | (251,415) | 23,881 | (576,020) | 48,993 |
Net income (loss) | (237,358) | 53,327 | (546,803) | 109,466 |
Net loss attributable to noncontrolling interest | (7,754) | (779) | (11,282) | (1,302) |
Dividends declared on preferred stocks | 171 | 171 | 342 | 342 |
Earnings (loss) on common stock | $ (229,775) | $ 53,935 | $ (535,863) | $ 110,426 |
Earnings (loss) per common share - basic: | ||||
Earnings before discontinued operations | $ 0.11 | $ 0.16 | $ 0.21 | $ 0.32 |
Discontinued operations, net of tax | (1.29) | 0.12 | (2.96) | 0.26 |
Earnings (loss) per common share - basic | (1.18) | 0.28 | (2.75) | 0.58 |
Earnings (loss) per common share - diluted: | ||||
Earnings before discontinued operations | 0.11 | 0.16 | 0.21 | 0.32 |
Discontinued operations, net of tax | (1.29) | 0.12 | (2.96) | 0.26 |
Earnings (loss) per common share - diluted | (1.18) | 0.28 | (2.75) | 0.58 |
Dividends declared per common share | $ 0.1825 | $ 0.1775 | $ 0.3650 | $ 0.3550 |
Weighted average common shares outstanding - basic | 194,805 | 192,060 | 194,643 | 190,946 |
Weighted average common shares outstanding - diluted | 194,838 | 192,659 | 194,675 | 191,543 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income (loss) | $ (237,358) | $ 53,327 | $ (546,803) | $ 109,466 |
Net unrealized gain on derivative instruments qualifying as hedges: | ||||
Reclassification adjustment for loss on derivative instruments included in net income (loss), net of tax of $60 and $60 for the three months ended and $121 and $121 for the six months ended in 2015 and 2014, respectively | 100 | 100 | 199 | 199 |
Reclassification adjustment for (gain) loss on derivative instruments included in income (loss) from discontinued operations, net of tax of $0 and $(50) for the three months ended and $0 and $93 for the six months ended in 2015 and 2014, respectively | 0 | (87) | 0 | 158 |
Net unrealized gain on derivative instruments qualifying as hedges | 100 | 13 | 199 | 357 |
Amortization of postretirement liability losses included in net periodic benefit cost, net of tax of $420 and $150 for the three months ended and $649 and $318 for the six months ended in 2015 and 2014, respectively | 584 | 245 | 959 | 520 |
Foreign currency translation adjustment: | ||||
Foreign currency translation adjustment recognized during the period, net of tax of $6 and $26 for the three months ended and $(63) and $54 for the six months ended in 2015 and 2014, respectively | 9 | 42 | (103) | 88 |
Reclassification adjustment for loss on foreign currency translation adjustment included in net income (loss), net of tax of $0 and $0 for the three months ended and $491 and $0 for the six months ended in 2015 and 2014, respectively | 0 | 0 | 802 | 0 |
Foreign currency translation adjustment | 9 | 42 | 699 | 88 |
Net unrealized gain (loss) on available-for-sale investments: | ||||
Net unrealized gain (loss) on available-for-sale investments arising during the period, net of tax of $(23) and $4 for the three months ended and $(34) and $5 for the six months ended in 2015 and 2014, respectively | (43) | 8 | (64) | 10 |
Reclassification adjustment for loss on available-for-sale investments included in net income (loss), net of tax of $15 and $17 for the three months ended and $34 and $17 for the six months ended in 2015 and 2014, respectively | 28 | 32 | 64 | 32 |
Net unrealized gain (loss) on available-for-sale investments | (15) | 40 | 0 | 42 |
Other comprehensive income | 678 | 340 | 1,857 | 1,007 |
Comprehensive income (loss) | (236,680) | 53,667 | (544,946) | 110,473 |
Comprehensive loss attributable to noncontrolling interest | (7,754) | (779) | (11,282) | (1,302) |
Comprehensive income (loss) attributable to common stockholders | $ (228,926) | $ 54,446 | $ (533,664) | $ 111,775 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income - Parenthetical - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification adjustment for (gain) loss on derivative instruments included in net income, tax | $ 60 | $ 60 | $ 121 | $ 121 |
Reclassification adjustment for (gain) loss on derivative instruments included in discontinued operations, tax | 0 | (50) | 0 | 93 |
Amortization of postretirement liability losses included in net periodic benefit cost, tax | 420 | 150 | 649 | 318 |
Foreign currency translation adjustments recognized during the period, tax | 6 | 26 | (63) | 54 |
Reclassification adjustment for foreign currency translation (gain) loss included in net income, tax | 0 | 0 | 491 | 0 |
Net unrealized gain (loss) on available-for-sale investments arising during the period, tax | (23) | 4 | (34) | 5 |
Reclassification adjustment for loss (gain) on available-for-sale investments included in net income, tax | $ 15 | $ 17 | $ 34 | $ 17 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Current assets: | ||||
Cash and cash equivalents | $ 144,372 | $ 81,855 | $ 110,817 | |
Receivables, net | 627,169 | 599,186 | 584,658 | |
Inventories | 314,405 | 289,410 | 318,573 | |
Deferred income taxes | 38,171 | 32,012 | 22,487 | |
Prepayments and other current assets | 81,355 | 83,763 | 91,165 | |
Current assets held for sale | 77,292 | 131,177 | 172,518 | |
Total current assets | 1,282,764 | 1,217,403 | 1,300,218 | |
Investments | 119,446 | 117,883 | 116,557 | |
Property, plant and equipment | 6,556,058 | 6,294,778 | 5,950,594 | |
Less accumulated depreciation, depletion and amortization | 2,444,134 | 2,386,113 | 2,325,423 | |
Net property, plant and equipment | 4,111,924 | 3,908,665 | 3,625,171 | |
Deferred charges and other assets: | ||||
Goodwill | [1] | 635,204 | 635,204 | 636,039 |
Other intangible assets, net | 8,506 | 9,840 | 11,266 | |
Other | 362,407 | 322,943 | 245,441 | |
Noncurrent assets held for sale | 749,804 | 1,620,470 | 1,757,637 | |
Total deferred charges and other assets | 1,755,921 | 2,588,457 | 2,650,383 | |
Total assets | 7,270,055 | 7,832,408 | 7,692,329 | |
Current liabilities: | ||||
Short-term borrowings | 26,000 | 0 | 0 | |
Long-term debt due within one year | 418,539 | 268,552 | 41,646 | |
Accounts payable | 272,988 | 279,115 | 279,511 | |
Taxes payable | 38,966 | 39,955 | 37,447 | |
Dividends payable | 35,734 | 35,607 | 34,388 | |
Accrued compensation | 48,420 | 57,402 | 44,303 | |
Other accrued liabilities | 164,675 | 155,765 | 151,762 | |
Current liabilities held for sale | 74,943 | 154,728 | 231,619 | |
Total current liabilities | 1,080,265 | 991,124 | 820,676 | |
Long-term debt | 1,958,263 | 1,825,278 | 2,144,271 | |
Deferred credits and other liabilities: | ||||
Deferred income taxes | 753,103 | 714,022 | 668,497 | |
Other liabilities | 755,742 | 756,759 | 675,758 | |
Noncurrent liabilities held for sale | 35,790 | 295,441 | 318,685 | |
Total deferred credits and other liabilities | 1,544,635 | 1,766,222 | 1,662,940 | |
Equity: | ||||
Preferred stocks | 15,000 | 15,000 | 15,000 | |
Common stockholders' equity: | ||||
Authorized - 500,000,000 shares, $1.00 par value. Shares issued - 195,411,301 at June 30, 2015,194,138,654 at June 30, 2014 and 194,754,812 at December 31, 2014 | 195,411 | 194,755 | 194,139 | |
Other paid-in-capital | 1,220,615 | 1,207,188 | 1,186,900 | |
Retained earnings | 1,155,777 | 1,762,827 | 1,645,291 | |
Accumulated other comprehensive loss | (40,246) | (42,103) | (37,198) | |
Treasury stock at cost - 538,921 shares | (3,626) | (3,626) | (3,626) | |
Total common stockholders' equity | 2,527,931 | 3,119,041 | 2,985,506 | |
Total stockholders' equity | 2,542,931 | 3,134,041 | 3,000,506 | |
Noncontrolling interest | 143,961 | 115,743 | 63,936 | |
Total equity | 2,686,892 | 3,249,784 | 3,064,442 | |
Total liabilities and equity | $ 7,270,055 | $ 7,832,408 | $ 7,692,329 | |
[1] | Balance is presented net of accumulated impairment of $12.3Â million at the pipeline and energy services segment, which occurred in prior periods. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Stockholders' equity: | |||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 |
Common stock, par value | $ 1 | $ 1 | $ 1 |
Common stock, shares issued | 195,411,301 | 194,754,812 | 194,138,654 |
Treasury shares | 538,921 | 538,921 | 538,921 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Net income (loss) | $ (546,803) | $ 109,466 |
Income (loss) from discontinued operations, net of tax | (576,020) | 48,993 |
Income from continuing operations | 29,217 | 60,473 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 107,151 | 100,645 |
Deferred income taxes | 24,874 | 30,516 |
Excess tax benefit on stock-based compensation | 0 | (4,729) |
Changes in current assets and liabilities: | ||
Receivables | (37,661) | 18,518 |
Inventories | (67,604) | (51,467) |
Other current assets | 4,545 | (46,003) |
Accounts payable | 44,927 | (30,741) |
Other current liabilities | (3,426) | (39,300) |
Other noncurrent changes | (15,602) | (6,379) |
Net cash provided by continuing operations | 86,421 | 31,533 |
Net cash provided by discontinued operations | 87,312 | 192,953 |
Net cash provided by operating activities | 173,733 | 224,486 |
Investing activities: | ||
Capital expenditures | (355,898) | (215,970) |
Net proceeds from sale or disposition of property and other | 29,550 | 11,222 |
Investments | 1,208 | (1,208) |
Net cash used in continuing operations | (325,140) | (205,956) |
Net cash used in discontinued operations | (77,238) | (379,764) |
Net cash used in investing activities | (402,378) | (585,720) |
Financing activities: | ||
Issuance of short-term borrowings | 26,000 | 0 |
Repayment of short-term borrowings | 0 | (11,500) |
Issuance of long-term debt | 320,988 | 441,451 |
Repayment of long-term debt | (38,137) | (111,268) |
Proceeds from issuance of common stock | 14,499 | 132,268 |
Dividends paid | (71,294) | (67,717) |
Excess tax benefit on stock-based compensation | 0 | 4,729 |
Tax withholding on stock-based compensation | 0 | (5,564) |
Contribution from noncontrolling interest | 39,500 | 32,500 |
Net cash provided by continuing operations | 291,556 | 414,899 |
Net cash used in discontinued operations | (271) | (273) |
Net cash provided by financing activities | 291,285 | 414,626 |
Effect of exchange rate changes on cash and cash equivalents | (123) | 85 |
Increase in cash and cash equivalents | 62,517 | 53,477 |
Cash and cash equivalents - beginning of year | 81,855 | 57,340 |
Cash and cash equivalents - end of period | $ 144,372 | $ 110,817 |
Basis of presentation
Basis of presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation The accompanying consolidated interim financial statements were prepared in conformity with the basis of presentation reflected in the consolidated financial statements included in the Company's 2014 Annual Report, and the standards of accounting measurement set forth in the interim reporting guidance in the ASC and any amendments thereto adopted by the FASB. Interim financial statements do not include all disclosures provided in annual financial statements and, accordingly, these financial statements should be read in conjunction with those appearing in the 2014 Annual Report. The information is unaudited but includes all adjustments that are, in the opinion of management, necessary for a fair presentation of the accompanying consolidated interim financial statements and are of a normal recurring nature. Depreciation, depletion and amortization expense is reported separately on the Consolidated Statements of Income and therefore is excluded from the other line items within operating expenses. Management has also evaluated the impact of events occurring after June 30, 2015 , up to the date of issuance of these consolidated interim financial statements. In the second quarter of 2015, the Company announced its plan to market Fidelity, previously referred to as the Company's exploration and production segment, and exit that line of business. The Company's consolidated financial statements and accompanying notes for current and prior periods have been restated to present the results of operations of Fidelity as discontinued operations, other than certain general and administrative costs and interest expense which were previously allocated to the former exploration and production segment and do not meet the criteria for income (loss) from discontinued operations. In addition, the assets and liabilities have been treated and classified as held for sale. Unless otherwise indicated, the amounts presented in the accompanying notes to the consolidated financial statements relate to the Company's continuing operations. For more information on discontinued operations, see Note 9 . |
Seasonality of operations
Seasonality of operations | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Seasonality of operations | Seasonality of operations Some of the Company's operations are highly seasonal and revenues from, and certain expenses for, such operations may fluctuate significantly among quarterly periods. Accordingly, the interim results for particular businesses, and for the Company as a whole, may not be indicative of results for the full fiscal year. |
Accounts receivable and allowan
Accounts receivable and allowance for doubtful accounts | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts Accounts receivable consist primarily of trade receivables from the sale of goods and services which are recorded at the invoiced amount net of allowance for doubtful accounts, and costs and estimated earnings in excess of billings on uncompleted contracts. The total balance of receivables past due 90 days or more was $30.3 million , $26.1 million and $29.4 million at June 30, 2015 and 2014 , and December 31, 2014 , respectively. The allowance for doubtful accounts is determined through a review of past due balances and other specific account data. Account balances are written off when management determines the amounts to be uncollectible. The Company's allowance for doubtful accounts at June 30, 2015 and 2014 , and December 31, 2014 , was $8.6 million , $9.6 million and $9.5 million , respectively. |
Inventories and natural gas in
Inventories and natural gas in storage | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories and natural gas in storage | Inventories and natural gas in storage Natural gas in storage for the Company's regulated operations is generally carried at average cost, or cost using the last-in, first-out method. Crude oil and refined products at Dakota Prairie Refinery are carried at lower of cost or market value using the last-in, first-out method. All other inventories are stated at the lower of average cost or market value. The portion of the cost of natural gas in storage expected to be used within one year is included in inventories. Inventories consisted of: June 30, 2015 June 30, 2014 December 31, 2014 (In thousands) Aggregates held for resale $ 123,457 $ 112,129 $ 108,161 Asphalt oil 79,422 76,525 42,135 Materials and supplies 22,594 58,089 54,282 Merchandise for resale 16,140 25,507 24,420 Refined products 16,065 — — Natural gas in storage (current) 11,310 10,903 19,302 Crude oil 8,101 — 5,045 Other 37,316 35,420 36,065 Total $ 314,405 $ 318,573 $ 289,410 The remainder of natural gas in storage, which largely represents the cost of gas required to maintain pressure levels for normal operating purposes, is included in other assets and was $ 49.3 million , $ 47.4 million and $ 49.3 million at June 30, 2015 and 2014 , and December 31, 2014 , respectively. |
Earnings (loss) per common shar
Earnings (loss) per common share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings (loss) per common share | Earnings (loss) per common share Basic earnings (loss) per common share were computed by dividing earnings (loss) on common stock by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings (loss) per common share were computed by dividing earnings (loss) on common stock by the total of the weighted average number of shares of common stock outstanding during the applicable period, plus the effect of outstanding performance share awards. Common stock outstanding includes issued shares less shares held in treasury. 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 calculations was as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) Weighted average common shares outstanding - basic 194,805 192,060 194,643 190,946 Effect of dilutive performance share awards 33 599 32 597 Weighted average common shares outstanding - diluted 194,838 192,659 194,675 191,543 Shares excluded from the calculation of diluted earnings per share — — — — |
Cash flow information
Cash flow information | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Cash flow information | Cash flow information Cash expenditures for interest and income taxes were as follows: Six Months Ended June 30, 2015 2014 (In thousands) Interest, net of amounts capitalized and AFUDC - borrowed of $5.0 million and $5.7 million in 2015 and 2014, respectively $ 45,102 $ 39,384 Income taxes paid, net $ 3,117 $ 56,267 Noncash investing transactions were as follows: June 30, 2015 2014 (In thousands) Property, plant and equipment additions in accounts payable $ 13,467 $ 47,499 |
New accounting standards
New accounting standards | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New accounting standards | New Accounting Standards Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In April 2014, the FASB issued guidance related to the definition and reporting of discontinued operations. The guidance changed the definition of discontinued operations to include only disposals of a component or group of components that represent a strategic shift and that have a major effect on an entity's operations or financial results. The guidance also expands the disclosure requirements for transactions that meet the definition of a discontinued operation, and also requires entities to disclose information about individually significant components that are disposed of or held for sale that do not meet the definition of a discontinued operation. This guidance was effective for the Company on January 1, 2015, and is to be applied prospectively for all disposals or components initially classified as held for sale after the effective date, with early adoption permitted. The adoption required additional disclosures for the Company's discontinued operations, however it did not impact the Company's results of operations, financial position or cash flows. Revenue from Contracts with Customers In May 2014, the FASB issued guidance on accounting for revenue from contracts with customers. The guidance provides for a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. This guidance was to be effective for the Company on January 1, 2017. In July 2015, the FASB approved a decision to defer the effective date one year and allow entities to early adopt. With this decision, the guidance will be effective for the Company on January 1, 2018. Entities will have the option of using either a full retrospective or modified retrospective approach to adopting the guidance. Under the modified approach, an entity would recognize the cumulative effect of initially applying the guidance with an adjustment to the opening balance of retained earnings in the period of adoption. In addition, the modified approach will require additional disclosures. The Company is evaluating the effects the adoption of the new revenue guidance will have on its results of operations, financial position, cash flows and disclosures, as well as its method of adoption. Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued guidance on simplifying the presentation of debt issuance costs in the financial statements. This guidance requires entities to present debt issuance costs as a direct deduction to the related debt liability. The amortization of these costs will be reported as interest expense. The guidance will be effective for the Company on January 1, 2016, and is to be applied retrospectively. Early adoption of this guidance is permitted, however the Company has not elected to do so. The guidance will require a reclassification of the debt issuance costs on the Consolidated Balance Sheets, but will not impact the Company's results of operations or cash flows. Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent) In May 2015, the FASB issued guidance on fair value measurement and disclosure requirements removing the requirement to include investments in the fair value hierarchy for which fair value is measured using the net asset value per share practical expedient. The new guidance also removes the requirement to make certain disclosures for all investments that are eligible to be measured at net asset value using the practical expedient, and rather limits those disclosures to investments for which the practical expedient have been elected. This guidance will be effective for the Company on January 1, 2016, with early adoption permitted. The Company is evaluating the effects the adoption of the new guidance will have on its disclosures, however it will not impact the Company's results of operations, financial position or cash flows. Simplifying the Measurement of Inventory In July 2015, the FASB issued guidance regarding inventory that is measured using the first-in, first-out or average cost method. The guidance does not apply to inventory measured using the last-in, first-out or the retail inventory method. The guidance requires inventory within its scope to be measured at the lower of cost or net realizable value, which is the estimated selling price in the normal course of business less reasonably predictable costs of completion, disposal and transportation. These amendments more closely align GAAP with International Financial Reporting Standards. This guidance will be effective for the Company on January 1, 2017, and should be applied prospectively with early adoption permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the effects the adoption of the new guidance will have on its results of operations, financial position and cash flows. |
Comprehensive income (loss)
Comprehensive income (loss) | 6 Months Ended |
Jun. 30, 2015 | |
Comprehensive income (loss) [Abstract] | |
Comprehensive income (loss) | Comprehensive income (loss) The following tables include reclassification adjustments for gains (losses) on derivative instruments qualifying as hedges included in income (loss) from discontinued operations. The after-tax changes in the components of accumulated other comprehensive loss were as follows: Three Months Ended June 30, 2015 Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Hedges Postretirement Liability Adjustment Foreign Currency Translation Adjustment Net Unrealized Gain (Loss) on Available-for-sale Investments Total Accumulated Other Comprehensive Loss (In thousands) Balance at beginning of period $ (2,972 ) $ (37,843 ) $ (139 ) $ 30 $ (40,924 ) Other comprehensive income (loss) before reclassifications — — 9 (43 ) (34 ) Amounts reclassified from accumulated other comprehensive loss 100 584 — 28 712 Net current-period other comprehensive income (loss) 100 584 9 (15 ) 678 Balance at end of period $ (2,872 ) $ (37,259 ) $ (130 ) $ 15 $ (40,246 ) Three Months Ended June 30, 2014 Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Hedges Postretirement Liability Adjustment Foreign Currency Translation Adjustment Net Unrealized Gain on Available-for-sale Investments Total Accumulated Other Comprehensive Loss (In thousands) Balance at beginning of period $ (3,421 ) $ (33,532 ) $ (621 ) $ 36 $ (37,538 ) Other comprehensive income before reclassifications — — 42 8 50 Amounts reclassified from accumulated other comprehensive loss 13 245 — 32 290 Net current-period other comprehensive income 13 245 42 40 340 Balance at end of period $ (3,408 ) $ (33,287 ) $ (579 ) $ 76 $ (37,198 ) Six Months Ended June 30, 2015 Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Hedges Postretirement Liability Adjustment Foreign Currency Translation Adjustment Net Unrealized Gain (Loss) on Available-for-sale Investments Total Accumulated Other Comprehensive Loss (In thousands) Balance at beginning of period $ (3,071 ) $ (38,218 ) $ (829 ) $ 15 $ (42,103 ) Other comprehensive loss before reclassifications — — (103 ) (64 ) (167 ) Amounts reclassified from accumulated other comprehensive loss 199 959 802 64 2,024 Net current-period other comprehensive income 199 959 699 — 1,857 Balance at end of period $ (2,872 ) $ (37,259 ) $ (130 ) $ 15 $ (40,246 ) Six Months Ended June 30, 2014 Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Hedges Postretirement Liability Adjustment Foreign Currency Translation Adjustment Net Unrealized Gain on Available-for-sale Investments Total Accumulated Other Comprehensive Loss (In thousands) Balance at beginning of period $ (3,765 ) $ (33,807 ) $ (667 ) $ 34 $ (38,205 ) Other comprehensive income before reclassifications — — 88 10 98 Amounts reclassified from accumulated other comprehensive loss 357 520 — 32 909 Net current-period other comprehensive income 357 520 88 42 1,007 Balance at end of period $ (3,408 ) $ (33,287 ) $ (579 ) $ 76 $ (37,198 ) Reclassifications out of accumulated other comprehensive loss were as follows: Three Months Ended Six Months Ended Location on Consolidated Statements of Income June 30, June 30, 2015 2014 2015 2014 (In thousands) Reclassification adjustment for loss on derivative instruments included in net income (loss): Interest rate derivative instruments $ (160 ) $ (160 ) $ (320 ) $ (320 ) Interest expense 60 60 121 121 Income taxes (100 ) (100 ) (199 ) (199 ) Commodity derivative instruments, net of tax — 87 — (158 ) Discontinued operations (100 ) (13 ) (199 ) (357 ) Amortization of postretirement liability losses included in net periodic benefit cost (1,004 ) (395 ) (1,608 ) (838 ) (a) 420 150 649 318 Income taxes (584 ) (245 ) (959 ) (520 ) Reclassification adjustment for loss on foreign currency translation adjustment included in net income (loss) — — (1,293 ) — Other income — — 491 — Income taxes — — (802 ) — Reclassification adjustment for loss on available-for-sale investments included in net income (loss) (43 ) (49 ) (98 ) (49 ) Other income 15 17 34 17 Income taxes (28 ) (32 ) (64 ) (32 ) Total reclassifications $ (712 ) $ (290 ) $ (2,024 ) $ (909 ) (a) Included in net periodic benefit cost (credit). For more information, see Note 15 . |
Discontinued operations
Discontinued operations | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations | Discontinued operations In the second quarter of 2015, the Company began the marketing and sale process of Fidelity with an anticipated sale to occur within one year. The sale of Fidelity is part of the Company's strategic plan to grow its capital investments in the remaining business segments and to focus on creating a greater long-term value. The assets and liabilities for these operations have been classified as held for sale and the results of operations are shown in income (loss) from discontinued operations, other than certain general and administrative costs and interest expense which do not meet the criteria for income (loss) from discontinued operations. The Company's consolidated financial statements and accompanying notes for current and prior periods have been restated. At the time the assets were classified as held for sale, depreciation, depletion and amortization expense was no longer recorded. The carrying amounts of the major classes of assets and liabilities that are classified as held for sale on the Company's Consolidated Balance Sheets were as follows: June 30, 2015 June 30, 2014 December 31, 2014 (In thousands) ASSETS Current assets: Receivables, net $ 33,551 $ 146,589 $ 94,132 Inventories 6,748 12,849 11,401 Deferred income taxes — 6,623 — Commodity derivative instruments 2,537 129 18,335 Prepayments and other current assets 34,456 6,328 7,309 Total current assets held for sale 77,292 172,518 131,177 Noncurrent assets: Investments 37 37 37 Net property, plant and equipment 1,097,576 1,753,509 1,618,099 Deferred income taxes 52,017 — — Other 161 4,091 2,334 Less allowance for impairment of assets held for sale 399,987 — — Total noncurrent assets held for sale 749,804 1,757,637 1,620,470 Total assets held for sale $ 827,096 $ 1,930,155 $ 1,751,647 LIABILITIES Current liabilities: Long-term debt due within one year $ — $ 569 $ 897 Accounts payable 49,400 165,189 103,556 Taxes payable 4,064 15,051 19,900 Deferred income taxes 1,401 — 8,206 Accrued compensation 4,460 5,721 5,373 Commodity derivative instruments 3,511 17,449 — Other accrued liabilities 12,107 27,640 16,796 Total current liabilities held for sale 74,943 231,619 154,728 Noncurrent liabilities: Long-term debt — 608 — Deferred income taxes — 257,316 238,391 Other liabilities 35,790 60,761 57,050 Total noncurrent liabilities held for sale 35,790 318,685 295,441 Total liabilities held for sale $ 110,733 $ 550,304 $ 450,169 At the time the Company committed to the plan to sell Fidelity, the Company performed a fair value assessment of the assets and liabilities classified as held for sale. The estimated fair value was determined using the income and the market approaches. The income approach was determined by using the present value of future estimated cash flows. The income approach considered management’s views on current operating measures as well as assumptions pertaining to market forces in the oil and gas industry including estimated reserves, estimated prices, market differentials, estimates of well operating and future development costs and timing of operations. The estimated cash flows were discounted using a rate believed to be consistent with those used by principal market participants. The market approach was provided by a third party and based on market transactions involving similar interests in oil and natural gas properties. The fair value assessment indicated an impairment based on the current carrying value exceeding the estimated fair value, which resulted in the Company writing down Fidelity’s assets at June 30, 2015. An impairment of $400.0 million ( $252.0 million after tax) was recorded and included in operating expenses from discontinued operations during the second quarter of 2015. The estimated fair value of Fidelity's assets have been categorized as Level 3 in the fair value hierarchy. Unforeseen events and changes in circumstances and market conditions and material differences in the value of the assets held for sale due to changes in estimates of future cash flows could negatively affect the estimated fair value of Fidelity and result in additional impairment charges. Various factors, including oil and natural gas prices, market differentials, changes in estimates of reserve quantities, unsuccessful results of exploration and development efforts or changes in operating and development costs could result in future impairments of the Company's assets held for sale. In addition, the ultimate sales price of Fidelity may differ from the estimated fair value. Historically, the Company used the full-cost method of accounting for its oil and natural gas production activities. Under this method, all costs incurred in the acquisition, exploration and development of oil and natural gas properties are capitalized and amortized on the units-of-production method based on total proved reserves. Prior to the oil and natural gas properties being classified as held for sale, capitalized costs were subject to a "ceiling test" that limits such costs to the aggregate of the present value of future net cash flows from proved reserves discounted at 10 percent, as mandated under the rules of the SEC, plus the cost of unproved properties not subject to amortization, plus the effects of cash flow hedges, less applicable income taxes. Proved reserves and associated future cash flows are determined based on SEC Defined Prices and exclude cash outflows associated with asset retirement obligations that have been accrued on the balance sheet. If capitalized costs, less accumulated amortization and related deferred income taxes, exceed the full-cost ceiling at the end of any quarter, a permanent noncash write-down is required to be charged to earnings in that quarter regardless of subsequent price changes. The Company's capitalized cost under the full-cost method of accounting exceeded the full-cost ceiling at March 31, 2015. SEC Defined Prices, adjusted for market differentials, were used to calculate the ceiling test. Accordingly, the Company was required to write down its oil and natural gas producing properties. The Company recorded a $500.4 million ( $315.3 million after tax) noncash write-down in operating expenses from discontinued operations in the first quarter of 2015. In 2007, Centennial Resources sold CEM to Bicent. In connection with the sale, Centennial Resources agreed to indemnify Bicent and its affiliates from certain third party claims arising out of or in connection with Centennial Resources' ownership or operation of CEM prior to the sale. In addition, Centennial had previously guaranteed CEM's obligations under a construction contract. The Company incurred legal expenses and had a benefit related to the resolution of this matter in the second quarter of 2014, which are reflected in discontinued operations in the consolidated financial statements and accompanying notes. The reconciliation of the major classes of income and expense constituting pretax income (loss) from discontinued operations to the after-tax net income (loss) from discontinued operations on the Company's Consolidated Statements of Income were as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) Operating revenues $ 43,087 $ 139,580 $ 98,023 $ 277,115 Operating expenses 442,725 103,057 1,015,677 201,307 Operating income (loss) (399,638 ) 36,523 (917,654 ) 75,808 Other income 188 1,010 2,069 1,025 Interest expense 33 31 55 57 Income (loss) from discontinued operations before income taxes (399,483 ) 37,502 (915,640 ) 76,776 Income taxes (148,068 ) 13,621 (339,620 ) 27,783 Income (loss) from discontinued operations $ (251,415 ) $ 23,881 $ (576,020 ) $ 48,993 |
Goodwill and other intangible a
Goodwill and other intangible assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | Goodwill and other intangible assets The changes in the carrying amount of goodwill were as follows: Six Months Ended June 30, 2015 Balance January 1, 2015* Goodwill the Year Balance as of June 30, 2015* (In thousands) Natural gas distribution $ 345,736 $ — $ 345,736 Pipeline and energy services 9,737 — 9,737 Construction materials and contracting 176,290 — 176,290 Construction services 103,441 — 103,441 Total $ 635,204 $ — $ 635,204 * Balance is presented net of accumulated impairment of $12.3 million at the pipeline and energy services segment, which occurred in prior periods. Six Months Ended June 30, 2014 Balance January 1, 2014* Goodwill Acquired During the Year Balance as of June 30, 2014* (In thousands) Natural gas distribution $ 345,736 $ — $ 345,736 Pipeline and energy services 9,737 — 9,737 Construction materials and contracting 176,290 — 176,290 Construction services 104,276 — 104,276 Total $ 636,039 $ — $ 636,039 * Balance is presented net of accumulated impairment of $12.3 million at the pipeline and energy services segment, which occurred in prior periods. Year Ended December 31, 2014 Balance January 1, 2014* Goodwill During the Year/Other Balance December 31, 2014* (In thousands) Natural gas distribution $ 345,736 $ — $ 345,736 Pipeline and energy services 9,737 — 9,737 Construction materials and contracting 176,290 — 176,290 Construction services 104,276 (835 ) 103,441 Total $ 636,039 $ (835 ) $ 635,204 * Balance is presented net of accumulated impairment of $12.3 million at the pipeline and energy services segment, which occurred in prior periods. Other amortizable intangible assets were as follows: June 30, June 30, December 31, 2014 (In thousands) Customer relationships $ 20,975 $ 21,310 $ 21,310 Accumulated amortization (16,065 ) (14,734 ) (15,556 ) 4,910 6,576 5,754 Noncompete agreements 4,409 5,080 5,080 Accumulated amortization (3,581 ) (3,936 ) (4,098 ) 828 1,144 982 Other 8,300 10,921 10,921 Accumulated amortization (5,532 ) (7,375 ) (7,817 ) 2,768 3,546 3,104 Total $ 8,506 $ 11,266 $ 9,840 Amortization expense for amortizable intangible assets for the three and six months ended June 30, 2015 , was $700,000 and $1.4 million , respectively. Amortization expense for amortizable intangible assets for the three and six months ended June 30, 2014, was $1.0 million and $1.8 million , respectively. Estimated amortization expense for amortizable intangible assets is $2.5 million in 2015 , $2.2 million in 2016 , $1.9 million in 2017 , $1.0 million in 2018 , $900,000 in 2019 and $1.4 million thereafter. |
Derivative instruments
Derivative instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative instruments The Company's policy allows the use of derivative instruments as part of an overall energy price, foreign currency and interest rate risk management program to efficiently manage and minimize commodity price, foreign currency and interest rate risk. As of June 30, 2015 , the Company had no outstanding foreign currency or interest rate hedges. The fair value of derivative instruments must be estimated as of the end of each reporting period and is recorded on the Consolidated Balance Sheets as an asset or a liability. Fidelity At June 30, 2015 and 2014 , and December 31, 2014 , Fidelity held oil swap agreements with total forward notional volumes of 1.1 million , 2.5 million and 270,000 Bbl, respectively, and natural gas swap agreements with total forward notional volumes of 1.8 million , 11.0 million and 5.0 million MMBtu, respectively. Fidelity utilizes these derivative instruments to manage a portion of the market risk associated with fluctuations in the price of oil and natural gas on its forecasted sales of oil and natural gas production. The gains and losses on the commodity derivative instruments held by Fidelity are included in income (loss) from discontinued operations and the associated assets and liabilities are classified as held for sale. Effective April 1, 2013, Fidelity elected to de-designate all commodity derivative contracts previously designated as cash flow hedges and elected to discontinue hedge accounting prospectively for all of its commodity derivative instruments. When the criteria for hedge accounting is not met or when hedge accounting is not elected, realized gains and losses and unrealized gains and losses are on the Consolidated Statements of Income. As a result of discontinuing hedge accounting on commodity derivative instruments, gains and losses on the oil and natural gas derivative instruments remained in accumulated other comprehensive income (loss) as of the de-designation date and were reclassified into earnings in future periods as the underlying hedged transactions affected earnings. Prior to April 1, 2013, changes in the fair value attributable to the effective portion of the hedging instruments, net of tax, were recorded in stockholders' equity as a component of accumulated other comprehensive income (loss). To the extent that the hedges were not effective or did not qualify for hedge accounting, the ineffective portion of the changes in fair market value was recorded directly in earnings. Gains and losses on the oil and natural gas derivative instruments were reclassified from accumulated other comprehensive income (loss) into income (loss) from discontinued operations on the Consolidated Statements of Income at the date the oil and natural gas quantities were settled. Certain of Fidelity's derivative instruments contain cross-default provisions that state if Fidelity or any of its affiliates fails to make payment with respect to certain indebtedness, in excess of specified amounts, the counterparties could require early settlement or termination of the derivative instruments in liability positions. The aggregate fair value of Fidelity's derivative instruments with credit-risk related contingent features that were in a liability position at June 30, 2015 and 2014 , were $3.5 million and $17.4 million , respectively. Fidelity had no derivative instruments that were in a liability position with credit-risk-related contingent features at December 31, 2014 . The aggregate fair value of assets that would have been needed to settle the instruments immediately if the credit-risk-related contingent features were triggered on June 30, 2015 and 2014 , were $3.5 million and $17.4 million , respectively. Centennial Centennial has historically entered into interest rate derivative instruments to manage a portion of its interest rate exposure on the forecasted issuance of long-term debt. As of June 30, 2015 and 2014 , and December 31, 2014 , Centennial had no outstanding interest rate swap agreements. Fidelity and Centennial The gains and losses on derivative instruments were as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) Commodity derivatives designated as cash flow hedges: Amount of (gain) loss reclassified from accumulated other comprehensive loss into discontinued operations (effective portion), net of tax $ — $ (87 ) $ — $ 158 Interest rate derivatives designated as cash flow hedges: Amount of loss reclassified from accumulated other comprehensive loss into interest expense (effective portion), net of tax 100 100 199 199 Commodity derivatives not designated as hedging instruments: Amount of loss recognized in discontinued operations, before tax (8,101 ) (5,196 ) (19,309 ) (11,908 ) Over the next 12 months net losses of approximately $400,000 (after tax) are estimated to be reclassified from accumulated other comprehensive income (loss) into earnings, as the hedged transactions affect earnings. The location and fair value of the gross amount of the Company's derivative instruments on the Consolidated Balance Sheets were as follows: Asset Derivatives Location on Consolidated Balance Sheets Fair Value at June 30, 2015 Fair Value at June 30, 2014 Fair Value at December 31, 2014 (In thousands) Not designated as hedges: Commodity derivatives Current assets held for sale $ 2,537 $ 129 $ 18,335 Noncurrent assets held for sale — 131 — Total asset derivatives $ 2,537 $ 260 $ 18,335 Liability Derivatives Location on Consolidated Balance Sheets Fair Value at June 30, 2015 Fair Value at June 30, 2014 Fair Value at December 31, 2014 (In thousands) Not designated as hedges: Commodity derivatives Current liabilities held for sale $ 3,511 $ 17,449 $ — Total liability derivatives $ 3,511 $ 17,449 $ — All of the Company's commodity derivative instruments at June 30, 2015 and 2014 , and December 31, 2014 , were subject to legally enforceable master netting agreements. However, the Company's policy is to not offset fair value amounts for derivative instruments and, as a result, the Company's derivative assets and liabilities are presented gross on the Consolidated Balance Sheets. The gross derivative assets and liabilities (excluding settlement receivables and payables that may be subject to the same master netting agreements) presented on the Consolidated Balance Sheets and the amount eligible for offset under the master netting agreements is presented in the following table: June 30, 2015 Gross Amounts Recognized on the Consolidated Balance Sheets Gross Amounts Not Offset on the Consolidated Balance Sheets Net (In thousands) Assets: Commodity derivatives $ 2,537 $ (2,537 ) $ — Total assets $ 2,537 $ (2,537 ) $ — Liabilities: Commodity derivatives $ 3,511 $ (2,537 ) $ 974 Total liabilities $ 3,511 $ (2,537 ) $ 974 June 30, 2014 Gross Amounts Recognized on the Consolidated Balance Sheets Gross Amounts Not Offset on the Consolidated Balance Sheets Net (In thousands) Assets: Commodity derivatives $ 260 $ (260 ) $ — Total assets $ 260 $ (260 ) $ — Liabilities: Commodity derivatives $ 17,449 $ (260 ) $ 17,189 Total liabilities $ 17,449 $ (260 ) $ 17,189 December 31, 2014 Gross Amounts Recognized on the Consolidated Balance Sheets Gross Amounts Not Offset on the Consolidated Balance Sheets Net (In thousands) Assets: Commodity derivatives $ 18,335 $ — $ 18,335 Total assets $ 18,335 $ — $ 18,335 |
Fair value measurements
Fair value measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements The Company measures its investments in certain fixed-income and equity securities at fair value with changes in fair value recognized in income. The Company anticipates using these investments, which consist of an insurance contract, to satisfy its obligations under its unfunded, nonqualified benefit plans for executive officers and certain key management employees, and invests in these fixed-income and equity securities for the purpose of earning investment returns and capital appreciation. These investments, which totaled $68.2 million , $64.4 million and $65.8 million , at June 30, 2015 and 2014 , and December 31, 2014 , respectively, are classified as Investments on the Consolidated Balance Sheets. The net unrealized gains on these investments were $400,000 and $2.4 million for the three and six months ended June 30, 2015 , respectively. The net unrealized gains on these investments were $1.1 million and $2.0 million for the three and six months ended June 30, 2014 , respectively. The change in fair value, which is considered part of the cost of the plan, is classified in operation and maintenance expense on the Consolidated Statements of Income. The Company did not elect the fair value option, which records gains and losses in income, for its available-for-sale securities, which include mortgage-backed securities and U.S. Treasury securities. These available-for-sale securities are recorded at fair value and are classified as Investments on the Consolidated Balance Sheets. Unrealized gains or losses are recorded in accumulated other comprehensive income (loss). Details of available-for-sale securities were as follows: June 30, 2015 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Mortgage-backed securities $ 8,072 $ 29 $ (28 ) $ 8,073 U.S. Treasury securities 2,327 22 — 2,349 Total $ 10,399 $ 51 $ (28 ) $ 10,422 June 30, 2014 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Mortgage-backed securities $ 7,989 $ 91 $ (5 ) $ 8,075 U.S. Treasury securities 2,066 30 — 2,096 Total $ 10,055 $ 121 $ (5 ) $ 10,171 December 31, 2014 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Mortgage-backed securities $ 6,594 $ 60 $ (18 ) $ 6,636 U.S. Treasury securities 3,574 — (19 ) 3,555 Total $ 10,168 $ 60 $ (37 ) $ 10,191 The fair value of the Company's money market funds approximates cost. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The ASC establishes a hierarchy for grouping assets and liabilities, based on the significance of inputs. The estimated fair values of the Company's assets and liabilities measured on a recurring basis are determined using the market approach. The Company's Level 2 money market funds consist of investments in short-term unsecured promissory notes and the value is based on comparable market transactions taking into consideration the credit quality of the issuer. The estimated fair value of the Company's Level 2 mortgage-backed securities and U.S. Treasury securities are based on comparable market transactions, other observable inputs or other sources, including pricing from outside sources. The estimated fair value of the Company's Level 2 insurance contract is based on contractual cash surrender values that are determined primarily by investments in managed separate accounts of the insurer. These amounts approximate fair value. The managed separate accounts are valued based on other observable inputs or corroborated market data. The estimated fair value of the Company's Level 2 RIN obligations are based on the market approach using quoted prices from an independent pricing service. RINs are assigned to biofuels produced or imported into the United States as required by the EPA, which sets annual quotas for the percentage of biofuels that must be blended into transportation fuels consumed in the United States. As a producer of diesel fuel, Dakota Prairie Refinery is required to blend biofuels into the fuel it produces at a rate that will meet the EPA's quota. RINs are purchased in the open market to satisfy the requirement as Dakota Prairie Refinery is currently unable to blend biofuels into the diesel fuel it produces. Though the Company believes the methods used to estimate fair value are consistent with those used by other market participants, the use of other methods or assumptions could result in a different estimate of fair value. For the six months ended June 30, 2015 and 2014 , there were no transfers between Levels 1 and 2. The Company's assets and liabilities measured at fair value on a recurring basis were as follows: Fair Value Measurements at June 30, 2015, Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at June 30, 2015 (In thousands) Assets: Money market funds $ — $ 16,358 $ — $ 16,358 Insurance contract* — 68,187 — 68,187 Available-for-sale securities: Mortgage-backed securities — 8,073 — 8,073 U.S. Treasury securities — 2,349 — 2,349 Total assets measured at fair value $ — $ 94,967 $ — $ 94,967 Liabilities: RIN obligations $ — $ 538 $ — $ 538 Total liabilities measured at fair value $ — $ 538 $ — $ 538 * The insurance contract invests approximately 20 percent in common stock of mid-cap companies, 18 percent in common stock of small-cap companies, 28 percent in common stock of large-cap companies, 32 percent in fixed-income investments, 1 percent in target date investments and 1 percent in cash equivalents. Fair Value Measurements at June 30, 2014, Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at June 30, 2014 (In thousands) Assets: Money market funds $ — $ 16,031 $ — $ 16,031 Insurance contract* — 64,449 — 64,449 Available-for-sale securities: Mortgage-backed securities — 8,075 — 8,075 U.S. Treasury securities — 2,096 — 2,096 Total assets measured at fair value $ — $ 90,651 $ — $ 90,651 * The insurance contract invests approximately 21 percent in common stock of mid-cap companies, 18 percent in common stock of small-cap companies, 29 percent in common stock of large-cap companies, 31 percent in fixed-income investments and 1 percent in cash equivalents. Fair Value Measurements at December 31, 2014, Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at December 31, 2014 (In thousands) Assets: Money market funds $ — $ 16,138 $ — $ 16,138 Insurance contract* — 65,831 — 65,831 Available-for-sale securities: Mortgage-backed securities — 6,636 — 6,636 U.S. Treasury securities — 3,555 — 3,555 Total assets measured at fair value $ — $ 92,160 $ — $ 92,160 * The insurance contract invests approximately 20 percent in common stock of mid-cap companies, 18 percent in common stock of small-cap companies, 29 percent in common stock of large-cap companies, 32 percent in fixed-income investments and 1 percent in cash equivalents. The Company applies the provisions of the fair value measurement standard to its nonrecurring, non-financial measurements, including long-lived asset impairments. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. The Company reviews the carrying value of its long-lived assets, excluding goodwill, whenever events or changes in circumstances indicate that such carrying amounts may not be recoverable. During the second quarter of 2015, coalbed natural gas gathering assets were reviewed for impairment and found to be impaired and were written down to their estimated fair value using the income approach. Under this approach, fair value is determined by using the present value of future estimated cash flows. The factors used to determine the estimated future cash flows include, but are not limited to, internal estimates of gathering revenue, future commodity prices and operating costs and equipment salvage values. The estimated cash flows are discounted using a rate that approximates the weighted average cost of capital of a market participant. These fair value inputs are not typically observable. At June 30, 2015, coalbed natural gas gathering assets were written down to the nonrecurring fair value measurement of $1.1 million . The fair value of these coalbed natural gas gathering assets have been categorized as Level 3 in the fair value hierarchy. The Company performed a fair value assessment of the assets and liabilities classified as held for sale. For more information on this Level 3 nonrecurring fair value measurement, see Note 9 . The Company's long-term debt is not measured at fair value on the Consolidated Balance Sheets and the fair value is being provided for disclosure purposes only. The fair value was based on discounted future cash flows using current market interest rates. The estimated fair value of the Company's Level 2 long-term debt was as follows: Carrying Amount Fair Value (In thousands) Long-term debt at June 30, 2015 $ 2,376,802 $ 2,468,204 Long-term debt at June 30, 2014 $ 2,185,917 $ 2,282,174 Long-term debt at December 31, 2014 $ 2,093,830 $ 2,238,548 The carrying amounts of the Company's remaining financial instruments included in current assets and current liabilities approximate their fair values. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Equity | Equity A summary of the changes in equity was as follows: Six Months Ended June 30, 2015 Total Stockholders' Equity Noncontrolling Interest Total Equity (In thousands) Balance at December 31, 2014 $ 3,134,041 $ 115,743 $ 3,249,784 Net loss (535,521 ) (11,282 ) (546,803 ) Other comprehensive income 1,857 — 1,857 Dividends declared on preferred stocks (342 ) — (342 ) Dividends declared on common stock (71,078 ) — (71,078 ) Stock-based compensation 1,107 — 1,107 Net tax deficit on stock-based compensation (1,632 ) — (1,632 ) Issuance of common stock 14,499 — 14,499 Contribution from noncontrolling interest — 39,500 39,500 Balance at June 30, 2015 $ 2,542,931 $ 143,961 $ 2,686,892 Six Months Ended June 30, 2014 Total Stockholders' Equity Noncontrolling Interest Total Equity (In thousands) Balance at December 31, 2013 $ 2,823,164 $ 32,738 $ 2,855,902 Net income (loss) 110,768 (1,302 ) 109,466 Other comprehensive income 1,007 — 1,007 Dividends declared on preferred stocks (342 ) — (342 ) Dividends declared on common stock (68,025 ) — (68,025 ) Stock-based compensation 2,796 — 2,796 Issuance of common stock upon vesting of performance shares, net of shares used for tax withholdings (5,564 ) — (5,564 ) Excess tax benefit on stock-based compensation 4,729 — 4,729 Issuance of common stock 131,973 — 131,973 Contribution from noncontrolling interest — 32,500 32,500 Balance at June 30, 2014 $ 3,000,506 $ 63,936 $ 3,064,442 |
Business segment data
Business segment data | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Business segment data | Business segment data The Company's reportable segments are those that are based on the Company's method of internal reporting, which generally segregates the strategic business units due to differences in products, services and regulation. The internal reporting of these operating segments is defined based on the reporting and review process used by the Company's chief executive officer. The vast majority of the Company's operations are located within the United States. The electric segment generates, transmits and distributes electricity in Montana, North Dakota, South Dakota and Wyoming. The natural gas distribution segment distributes natural gas in those states as well as in Idaho, Minnesota, Oregon and Washington. These operations also supply related value-added services. The pipeline and energy services segment provides natural gas transportation, underground storage, processing and gathering services, as well as oil gathering, through regulated and nonregulated pipeline systems and processing facilities primarily in the Rocky Mountain and northern Great Plains regions of the United States. This segment recently commenced operations of Dakota Prairie Refinery in conjunction with Calumet to refine crude oil. The facility produces and sells diesel fuel, naphtha and ATBs. This segment also provides cathodic protection and other energy-related services. The construction materials and contracting segment mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mixed concrete, cement, asphalt, liquid asphalt and other value-added products. It also performs integrated contracting services. This segment operates in the central, southern and western United States and Alaska and Hawaii. The construction services segment provides utility construction services specializing in constructing and maintaining electric and communications lines, gas pipelines, fire suppression systems, and external lighting and traffic signalization. This segment also provides utility excavation and inside electrical and mechanical services, and manufactures and distributes transmission line construction equipment and supplies. The Other category includes the activities of Centennial Capital, which insures various types of risks as a captive insurer for certain of the Company's subsidiaries. The function of the captive insurer is to fund the deductible layers of the insured companies' general liability, automobile liability and pollution liability coverages. Centennial Capital also owns certain real and personal property. The Other category also includes certain general and administrative costs (reflected in operation and maintenance expense) and interest expense which were previously allocated to Fidelity and do not meet the criteria for income (loss) from discontinued operations. The Other category also included Centennial Resources' investment in the Brazilian Transmission Lines. Discontinued operations includes the results of Fidelity other than certain general and administrative costs and interest expense as described above. Fidelity is engaged in oil and natural gas development and production activities in the Rocky Mountain and Mid-Continent/Gulf States regions of the United States. The Company has begun marketing Fidelity and plans to exit that line of business. Discontinued operations also includes legal expenses and a benefit related to the vacation of an arbitration award in 2014 related to Centennial Resources. For more information on discontinued operations, see Note 9 . The information below follows the same accounting policies as described in Note 1 of the Company's Notes to Consolidated Financial Statements in the 2014 Annual Report. Information on the Company's businesses was as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) External operating revenues: Regulated operations: Electric $ 64,265 $ 65,149 $ 136,041 $ 138,796 Natural gas distribution 132,965 146,077 463,538 520,311 Pipeline and energy services 18,242 15,246 22,183 19,668 215,472 226,472 621,762 678,775 Nonregulated operations: Pipeline and energy services 63,131 16,044 77,834 29,859 Construction materials and contracting 495,640 434,452 701,298 598,875 Construction services 211,515 275,109 446,918 545,002 Other 457 487 752 815 770,743 726,092 1,226,802 1,174,551 Total external operating revenues $ 986,215 $ 952,564 $ 1,848,564 $ 1,853,326 Intersegment operating revenues: Regulated operations: Electric $ — $ — $ — $ — Natural gas distribution — — — — Pipeline and energy services 6,564 6,937 27,625 24,210 6,564 6,937 27,625 24,210 Nonregulated operations: Pipeline and energy services 110 177 316 371 Construction materials and contracting 1,257 8,106 2,205 12,123 Construction services 3,491 7,273 15,186 11,010 Other 1,792 1,744 3,563 3,468 6,650 17,300 21,270 26,972 Intersegment eliminations (13,214 ) (24,237 ) (48,895 ) (51,182 ) Total intersegment operating revenues $ — $ — $ — $ — Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) Earnings (loss) on common stock: Regulated operations: Electric $ 5,910 $ 7,823 $ 14,237 $ 18,856 Natural gas distribution (5,375 ) (4,494 ) 16,075 22,768 Pipeline and energy services 4,329 3,614 9,685 6,612 4,864 6,943 39,997 48,236 Nonregulated operations: Pipeline and energy services (5,933 ) 2,175 (7,271 ) 3,526 Construction materials and contracting 20,136 10,554 5,501 (13,019 ) Construction services 7,003 14,307 11,763 30,875 Other (3,746 ) (2,971 ) (8,158 ) (6,758 ) 17,460 24,065 1,835 14,624 Intersegment eliminations (684 ) (954 ) (1,675 ) (1,427 ) Earnings on common stock before income (loss) from discontinued operations 21,640 30,054 40,157 61,433 Income (loss) from discontinued operations, net of tax (251,415 ) 23,881 (576,020 ) 48,993 Total earnings (loss) on common stock $ (229,775 ) $ 53,935 $ (535,863 ) $ 110,426 |
Employee benefit plans
Employee benefit plans | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and other postretirement benefit plans | Employee benefit plans Pension and other postretirement plans The Company has noncontributory defined benefit pension plans and other postretirement benefit plans for certain eligible employees. Components of net periodic benefit cost for the Company's pension and other postretirement benefit plans were as follows: Other Postretirement Pension Benefits Benefits Three Months Ended June 30, 2015 2014 2015 2014 (In thousands) Components of net periodic benefit cost (credit): Service cost $ 46 $ 31 $ 425 $ 380 Interest cost 4,206 4,405 889 924 Expected return on assets (5,753 ) (5,484 ) (1,223 ) (1,242 ) Amortization of prior service cost (credit) 18 18 (343 ) (348 ) Amortization of net actuarial loss 1,813 1,121 553 6 Curtailment loss 258 — — — Net periodic benefit cost (credit), including amount capitalized 588 91 301 (280 ) Less amount capitalized 53 73 33 (19 ) Net periodic benefit cost (credit) $ 535 $ 18 $ 268 $ (261 ) Other Postretirement Pension Benefits Benefits Six Months Ended June 30, 2015 2014 2015 2014 (In thousands) Components of net periodic benefit cost (credit): Service cost $ 86 $ 64 $ 908 $ 759 Interest cost 8,570 8,845 1,803 1,782 Expected return on assets (11,126 ) (10,609 ) (2,398 ) (2,309 ) Amortization of prior service cost (credit) 36 36 (685 ) (696 ) Amortization of net actuarial loss 3,548 2,434 1,014 324 Curtailment loss 258 — — — Net periodic benefit cost (credit), including amount capitalized 1,372 770 642 (140 ) Less amount capitalized 129 168 62 10 Net periodic benefit cost (credit) $ 1,243 $ 602 $ 580 $ (150 ) Nonqualified benefit plans In addition to the qualified plan defined pension benefits reflected in the table, the Company has unfunded, nonqualified benefit plans for executive officers and certain key management employees that generally provide for defined benefit payments at age 65 following the employee's retirement or to their beneficiaries upon death for a 15-year period. The Company's net periodic benefit cost for these plans for the three and six months ended June 30, 2015 , was $1.9 million and $3.6 million , respectively. The Company's net periodic benefit cost for these plans for the three and six months ended June 30, 2014 , was $1.6 million and $3.3 million , respectively. Multiemployer plans On September 24, 2014, Knife River provided notice to the Operating Engineers Local 800 & WY Contractors Association, Inc. Pension Plan for Wyoming that it was withdrawing from the plan effective October 26, 2014. The plan administrator will determine Knife River's withdrawal liability. For the three months ended March 31, 2015, the Company accrued an additional withdrawal liability of approximately $2.4 million (approximately $1.5 million after tax). The total withdrawal liability is currently estimated at $16.4 million (approximately $9.8 million after tax). The assessed withdrawal liability for this plan may be significantly different from the current estimate. |
Regulatory matters and revenues
Regulatory matters and revenues subject to refund | 6 Months Ended |
Jun. 30, 2015 | |
Regulated Operations [Abstract] | |
Regulatory matters and revenues subject to refund | Regulatory matters and revenues subject to refund On August 11, 2014, Montana-Dakota filed an application with the MTPSC for a natural gas rate increase. Montana-Dakota requested a total increase of approximately $3.0 million annually or approximately 3.6 percent above current rates. The requested increase includes the costs associated with the increased investment in facilities, including ongoing investment in new and replacement distribution facilities, depreciation and taxes associated with the increased investment as well as an increase in Montana-Dakota's operation and maintenance expenses. On February 3, 2015, the MTPSC approved an interim increase of $2.0 million or approximately 2.3 percent, subject to refund, to be effective with service rendered on and after February 6, 2015. On March 18, 2015, Montana-Dakota and the Montana Consumer Counsel filed a settlement agreement that resolved all issues of the application and reflected a natural gas rate increase of $2.5 million annually or approximately 3.0 percent. An amended stipulation reflecting minor changes in rate design was submitted on March 24, 2015. On April 28, 2015, the MTPSC approved the settlement rates to be effective with service rendered on or after May 20, 2015. On October 3, 2014, Montana-Dakota filed an application with the WYPSC for a natural gas rate increase. Montana-Dakota requested a total increase of approximately $788,000 annually or approximately 4.1 percent above current rates. The requested increase includes the costs associated with the increased investment in facilities, including ongoing investment in new and replacement distribution facilities and the associated operation and maintenance expenses, depreciation and taxes associated with the increase in investment. On April 16, 2015, Montana-Dakota and the Wyoming Office of Consumer Advocate filed a stipulation and agreement that resolved all issues between the parties and reflected a natural gas rate increase of $501,000 annually or approximately 2.6 percent. The WYPSC held a hearing on this matter on May 19, 2015. The WYPSC approved the stipulation and agreement authorizing the rate increase effective with service rendered on and after June 1, 2015. On December 22, 2014, Montana-Dakota filed an application for advance determination of prudence and a certificate of public convenience and necessity with the NDPSC for the Thunder Spirit Wind project. This project will provide energy, capacity and renewable energy credits to Montana-Dakota's electric customers in North Dakota, Montana and South Dakota. The NDPSC held a hearing regarding this matter on May 14, 2015. The NDPSC approved the advance determination of prudence and issued a certificate of public convenience and necessity on June 30, 2015. On February 6, 2015, Montana-Dakota filed an application with the NDPSC for a natural gas rate increase. Montana-Dakota requested a total increase of approximately $4.3 million annually or approximately 3.4 percent above current rates. The requested increase includes the costs associated with the increased investment in facilities, including ongoing investment in new and replacement distribution facilities, depreciation and taxes associated with the increased investment as well as an increase in Montana-Dakota's operation and maintenance expenses. Montana-Dakota requested an interim increase of $4.3 million or 3.4 percent, subject to refund, which was approved by the NDPSC on March 11, 2015, effective with service rendered on or after April 7, 2015. A technical hearing has been scheduled for August 31, 2015. This matter is pending before the NDPSC. On March 31, 2015, Cascade filed an application with the OPUC for a natural gas rate increase. Cascade requested a total increase of approximately $3.6 million annually or approximately 5.1 percent above current rates. The requested increase includes the costs associated with the increased investment in facilities, including ongoing investment in new and replacement distribution facilities and the associated operation and maintenance expenses, depreciation and taxes associated with the increase in investment, as well as environmental remediation expenses. A hearing has been scheduled for October 27-28, 2015. On April 10, 2015, Montana-Dakota submitted a request to the NDPSC to update the electric rate environmental cost recovery rider to reflect actual costs incurred through February 2015 and projected costs through June 2016 related to the recovery of Montana-Dakota's share of the costs resulting from the environmental retrofit required to be installed at the Big Stone Station. The request also includes costs associated with the environmental upgrade required at the Lewis & Clark Station to comply with the EPA's MATS rule. The filing also requests a revision to the environmental cost recovery rider that will allow future recovery of ongoing reagent costs required to meet environmental standards as a monthly adjustment. A total of $8.1 million is requested to be recovered under the adjustment. The NDPSC approved the requested rider to be effective with service rendered on and after July 1, 2015. On June 24, 2015, Cascade filed an application with the WUTC for a natural gas rate increase. Cascade requested a total increase of approximately $3.9 million annually or approximately 1.6 percent above current rates. The requested increase includes costs associated with increased infrastructure investment and the associated operating expenses. A public meeting is scheduled for August 27, 2015. On June 25, 2015, Montana-Dakota filed an application for an electric rate increase with the MTPSC. Montana-Dakota requested a total increase of approximately $11.8 million annually or approximately 21.1 percent above current rates. The increase is necessary to recover Montana-Dakota’s investments in modifications to generation facilities to comply with new EPA requirements, the addition and/or replacement of capacity and energy requirements and transmission facilities along with the additional depreciation, operation and maintenance expenses and taxes associated with the increases in investment. Montana-Dakota requested an interim increase of $11.0 million annually, which is pending before the MTPSC. On June 30, 2015, Montana-Dakota filed an application with the SDPUC for an electric rate increase. Montana-Dakota requested a total increase of approximately $2.7 million annually or approximately 19.2 percent above current rates. The increase is necessary to recover Montana-Dakota’s investments in modifications to generation facilities to comply with new EPA requirements, the addition and/or replacement of capacity and energy requirements and transmission facilities along with the additional depreciation, operation and maintenance expenses and taxes associated with the increases in investment. On June 30, 2015, Montana-Dakota filed an application for a natural gas rate increase with the SDPUC. Montana-Dakota requested a total increase of approximately $1.5 million annually or approximately 3.1 percent above current rates. The increase is necessary to recover increased operating expenses along with increased investment in facilities, including the related depreciation expense and taxes, partially offset by an increase in customers and throughput. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is party to claims and lawsuits arising out of its business and that of its consolidated subsidiaries. The Company accrues a liability for those contingencies when the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material, the Company discloses the nature of the contingency and, in some circumstances, an estimate of the possible loss. The Company had accrued liabilities of $20.7 million , $32.1 million and $27.6 million , which include liabilities held for sale, for contingencies, including litigation, production taxes, royalty claims and environmental matters at June 30, 2015 and 2014 , and December 31, 2014 , respectively, which include amounts that may have been accrued for matters discussed in Litigation and Environmental matters within this note. Litigation Natural Gas Gathering Operations In January 2010, SourceGas filed an application with the Colorado State District Court to compel WBI Energy Midstream to arbitrate a dispute regarding operating pressures under a natural gas gathering contract on one of WBI Energy Midstream's pipeline gathering systems in Montana. WBI Energy Midstream resisted the application and sought a declaratory order interpreting the gathering contract. In May 2010, the Colorado State District Court granted the application and ordered WBI Energy Midstream into arbitration. In October 2010, the arbitration panel issued an award in favor of SourceGas for approximately $26.6 million . The Colorado Court of Appeals issued a decision on May 24, 2012, reversing the Colorado State District Court order compelling arbitration, vacating the final award and remanding the case to the Colorado State District Court to determine SourceGas's claims and WBI Energy Midstream's counterclaims. On remand of the matter to the Colorado State District Court, SourceGas may assert claims similar to those asserted in the arbitration proceeding. In a related matter, Omimex filed a complaint against WBI Energy Midstream in Montana Seventeenth Judicial District Court in July 2010 alleging WBI Energy Midstream breached a separate gathering contract with Omimex as a result of the increased operating pressures demanded by SourceGas on the same natural gas gathering system. In December 2011, Omimex filed an amended complaint alleging WBI Energy Midstream breached obligations to operate its gathering system as a common carrier under United States and Montana law. WBI Energy Midstream removed the action to the United States District Court for the District of Montana. The parties subsequently settled the breach of contract claim and, subject to final determination on liability, stipulated to the damages on the common carrier claim, for amounts that are not material. A trial on the common carrier claim was held during July 2013. On December 9, 2014, the United States District Court for the District of Montana issued an order determining WBI Energy Midstream breached its obligations as a common carrier and ordered judgment in favor of Omimex for the amount of the stipulated damages. WBI Energy Midstream filed an appeal from the United States District Court for the District of Montana's order and judgment. Exploration and Production During the ordinary course of its business, Fidelity is subject to audit for various production related taxes by certain state and federal tax authorities for varying periods as well as claims for royalty obligations under lease agreements for oil and gas production. Disputes may exist regarding facts and questions of law relating to the tax and royalty obligations. On May 15, 2013, Austin Holdings, LLC filed an action against Fidelity in Wyoming State District Court alleging Fidelity violated the Wyoming Royalty Payment Act and implied lease covenants by deducting production costs from and by failing to properly report and pay royalties for coalbed methane gas production in Wyoming. The plaintiff, in addition to declaratory and injunctive relief, sought class certification for similarly situated persons and an unspecified amount of monetary damages on behalf of the class for unpaid royalties, interest, reporting violations and attorney fees. Fidelity reached a court approved settlement of the matter for an amount that is not material. Construction Materials Until the fall of 2011 when it discontinued active mining operations at the pit, JTL operated the Target Range Gravel Pit in Missoula County, Montana under a 1975 reclamation contract pursuant to the Montana Opencut Mining Act. In September 2009, the Montana DEQ sent a letter asserting JTL was in violation of the Montana Opencut Mining Act by conducting mining operations outside a permitted area. JTL filed a complaint in Montana First Judicial District Court in June 2010, seeking a declaratory order that the reclamation contract is a valid permit under the Montana Opencut Mining Act. The Montana DEQ filed an answer and counterclaim to the complaint in August 2011, alleging JTL was in violation of the Montana Opencut Mining Act and requesting imposition of penalties of not more than $3.7 million plus not more than $5,000 per day from the date of the counterclaim. The Company believes the operation of the Target Range Gravel Pit was conducted under a valid permit; however, the imposition of civil penalties is reasonably possible. The Company filed an application for amendment of its opencut mining permit and intends to resolve this matter through settlement or continuation of the Montana First Judicial District Court litigation. Former Employee Litigation On August 6, 2012, a former employee and his spouse filed actions against Connolly-Pacific and others in California Superior Court alleging the former employee contracted acute myelogenous leukemia from exposure to substances while employed as a seaman by the defendants. The plaintiffs sought compensatory damages plus punitive damages, costs and interest. Connolly-Pacific reached a settlement of the matter for an amount that is not material. Construction Services Bombard Mechanical is a third-party defendant in litigation pending in Nevada State District Court in which the plaintiff claims damages attributable to defects in the construction of a 48 story residential tower built in 2008 for which Bombard Mechanical performed plumbing and mechanical work as a subcontractor. On March 12, 2015, the plaintiff submitted cost of repair estimates totaling approximately $26 million for alleged defects related to plumbing and mechanical system defects. Bombard Mechanical is being defended in the action under a policy of insurance subject to a reservation of rights. The Company also is subject to other litigation, and actual and potential claims in the ordinary course of its business which may include, but are not limited to, matters involving property damage, personal injury, and environmental, contractual, statutory and regulatory obligations. Accruals are based on the best information available but actual losses in future periods are affected by various factors making them uncertain. After taking into account liabilities accrued for the foregoing matters, management believes that the outcomes with respect to the above issues and other probable and reasonably possible losses in excess of the amounts accrued, while uncertain, will not have a material effect upon the Company's financial position, results of operations or cash flows. Environmental matters Portland Harbor Site In December 2000, Knife River - Northwest was named by the EPA as a PRP in connection with the cleanup of a riverbed site adjacent to a commercial property site acquired by Knife River - Northwest from Georgia-Pacific West, Inc. in 1999. The riverbed site is part of the Portland, Oregon, Harbor Superfund Site. The EPA wants responsible parties to share in the cleanup of sediment contamination in the Willamette River. To date, costs of the overall remedial investigation and feasibility study of the harbor site are being recorded, and initially paid, through an administrative consent order by the LWG, a group of several entities, which does not include Knife River - Northwest or Georgia-Pacific West, Inc. Investigative costs are indicated to be in excess of $70 million . It is not possible to estimate the cost of a corrective action plan until the remedial investigation and feasibility study have been completed, the EPA has decided on a strategy and a ROD has been published. Corrective action will be taken after the development of a proposed plan and ROD on the harbor site is issued. Knife River - Northwest also received notice in January 2008 that the Portland Harbor Natural Resource Trustee Council intends to perform an injury assessment to natural resources resulting from the release of hazardous substances at the Harbor Superfund Site. The Portland Harbor Natural Resource Trustee Council indicates the injury determination is appropriate to facilitate early settlement of damages and restoration for natural resource injuries. It is not possible to estimate the costs of natural resource damages until an assessment is completed and allocations are undertaken. Based upon a review of the Portland Harbor sediment contamination evaluation by the Oregon DEQ and other information available, Knife River - Northwest does not believe it is a Responsible Party. In addition, Knife River - Northwest has notified Georgia-Pacific West, Inc., that it intends to seek indemnity for liabilities incurred in relation to the above matters pursuant to the terms of their sale agreement. Knife River - Northwest has entered into an agreement tolling the statute of limitations in connection with the LWG's potential claim for contribution to the costs of the remedial investigation and feasibility study. By letter in March 2009, LWG stated its intent to file suit against Knife River - Northwest and others to recover LWG's investigation costs to the extent Knife River - Northwest cannot demonstrate its non-liability for the contamination or is unwilling to participate in an alternative dispute resolution process that has been established to address the matter. At this time, Knife River - Northwest has agreed to participate in the alternative dispute resolution process. The Company believes it is not probable that it will incur any material environmental remediation costs or damages in relation to the above referenced administrative action. Manufactured Gas Plant Sites There are three claims against Cascade for cleanup of environmental contamination at manufactured gas plant sites operated by Cascade's predecessors. The first claim is for contamination at a site in Eugene, Oregon which was received in 1995. There are PRPs in addition to Cascade that may be liable for cleanup of the contamination. Some of these PRPs have shared in the investigation costs. It is expected that these and other PRPs will share in the cleanup costs. Several alternatives for cleanup have been identified, with preliminary cost estimates ranging from approximately $500,000 to $11.0 million . The Oregon DEQ released a ROD in January 2015 that selected a remediation alternative for the site as recommended in an earlier staff report. It is not known at this time what share of the cleanup costs will actually be borne by Cascade; however, Cascade anticipates its proportional share could be approximately 50 percent. Cascade has accrued $1.7 million for remediation of this site. In January 2013, the OPUC approved Cascade's application to defer environmental remediation costs at the Eugene site for a period of 12 months starting November 30, 2012. Cascade received orders reauthorizing the deferred accounting for the 12-month periods starting November 30, 2013 and December 1, 2014. The second claim is for contamination at a site in Bremerton, Washington which was received in 1997. A preliminary investigation has found soil and groundwater at the site contain contaminants requiring further investigation and cleanup. The EPA conducted a Targeted Brownfields Assessment of the site and released a report summarizing the results of that assessment in August 2009. The assessment confirms that contaminants have affected soil and groundwater at the site, as well as sediments in the adjacent Port Washington Narrows. Alternative remediation options have been identified with preliminary cost estimates ranging from $340,000 to $6.4 million . Data developed through the assessment and previous investigations indicates the contamination likely derived from multiple, different sources and multiple current and former owners of properties and businesses in the vicinity of the site may be responsible for the contamination. In April 2010, the Washington Department of Ecology issued notice it considered Cascade a PRP for hazardous substances at the site. In May 2012, the EPA added the site to the National Priorities List of Superfund sites. Cascade has entered into an administrative settlement agreement and consent order with the EPA regarding the scope and schedule for a remedial investigation and feasibility study for the site. Cascade has accrued $12.3 million for the remedial investigation, feasibility study and remediation of this site. In April 2010, Cascade filed a petition with the WUTC for authority to defer the costs, which are included in other noncurrent assets, incurred in relation to the environmental remediation of this site until the next general rate case. The WUTC approved the petition in September 2010, subject to conditions set forth in the order. The third claim is for contamination at a site in Bellingham, Washington. Cascade received notice from a party in May 2008 that Cascade may be a PRP, along with other parties, for contamination from a manufactured gas plant owned by Cascade and its predecessor from about 1946 to 1962. The notice indicates that current estimates to complete investigation and cleanup of the site exceed $8.0 million . Other PRPs have reached an agreed order and work plan with the Washington Department of Ecology for completion of a remedial investigation and feasibility study for the site. A report documenting the initial phase of the remedial investigation was completed in June 2011. There is currently not enough information available to estimate the potential liability to Cascade associated with this claim although Cascade believes its proportional share of any liability will be relatively small in comparison to other PRPs. The plant manufactured gas from coal between approximately 1890 and 1946. In 1946, shortly after Cascade's predecessor acquired the plant, it converted the plant to a propane-air gas facility. There are no documented wastes or by-products resulting from the mixing or distribution of propane-air gas. Cascade has received notices from and entered into agreement with certain of its insurance carriers that they will participate in defense of Cascade for these contamination claims subject to full and complete reservations of rights and defenses to insurance coverage. To the extent these claims are not covered by insurance, Cascade will seek recovery through the OPUC and WUTC of remediation costs in its natural gas rates charged to customers. The accruals related to these matters are reflected in regulatory assets. Guarantees In connection with the sale of the Brazilian Transmission Lines, Centennial has agreed to guarantee payment of any indemnity obligations of certain of the Company's indirect wholly owned subsidiaries who are the sellers in three purchase and sale agreements for periods ranging up to 10 years from the date of sale. The guarantees were required by the buyers as a condition to the sale of the Brazilian Transmission Lines. WBI Holdings has guaranteed certain of Fidelity's oil and natural gas swap agreement obligations. The amount of derivative activity entered into by the subsidiary is limited by corporate policy. The guarantees of the oil and natural gas swap agreements at June 30, 2015 , expire in 2015; however, Fidelity may continue to enter into additional derivative instruments and, as a result, WBI Holdings from time to time may issue additional guarantees on these derivative instruments. At June 30, 2015, the fixed maximum amounts guaranteed under these agreements aggregated $2.8 million . The amount outstanding by Fidelity was $2.8 million and was reflected on the Consolidated Balance Sheet at June 30, 2015 . In the event Fidelity defaults under its obligations, WBI Holdings would be required to make payments under its guarantees. Certain subsidiaries of the Company have outstanding guarantees to third parties that guarantee the performance of other subsidiaries of the Company. These guarantees are related to construction contracts, natural gas transportation and sales agreements, gathering contracts and certain other guarantees. At June 30, 2015 , the fixed maximum amounts guaranteed under these agreements aggregated $134.7 million . The amounts of scheduled expiration of the maximum amounts guaranteed under these agreements aggregate $43.6 million in 2015 ; $14.5 million in 2016 ; $1.2 million in 2017 ; $500,000 in 2018 ; $57.4 million in 2019 ; $13.5 million , which is subject to expiration on a specified number of days after the receipt of written notice; and $4.0 million , which has no scheduled maturity date. The amount outstanding by subsidiaries of the Company under the above guarantees was $200,000 and was reflected on the Consolidated Balance Sheet at June 30, 2015 . In the event of default under these guarantee obligations, the subsidiary issuing the guarantee for that particular obligation would be required to make payments under its guarantee. Certain subsidiaries have outstanding letters of credit to third parties related to insurance policies and other agreements, some of which are guaranteed by other subsidiaries of the Company. At June 30, 2015 , the fixed maximum amounts guaranteed under these letters of credit aggregated $62.5 million . In 2015 and 2016 , $33.7 million and $28.8 million , respectively, of letters of credit are scheduled to expire. The amount outstanding by subsidiaries of the Company under the above letters of credit was $100,000 and was reflected on the Consolidated Balance Sheet at June 30, 2015 . In the event of default under these letter of credit obligations, the subsidiary issuing the letter of credit for that particular obligation would be required to make payments under its letter of credit. Centennial and WBI Holdings have guaranteed certain debt obligations of Dakota Prairie Refining. For more information, see Variable interest entities in this note. WBI Holdings has an outstanding guarantee to WBI Energy Transmission. This guarantee is related to a natural gas transportation and storage agreement that guarantees the performance of Prairielands. At June 30, 2015 , the fixed maximum amount guaranteed under this agreement was $4.0 million and is scheduled to expire in 2016. In the event of Prairielands' default in its payment obligations, WBI Holdings would be required to make payment under its guarantee. The amount outstanding by Prairielands under the above guarantee was $1.2 million . The amount outstanding under this guarantee was not reflected on the Consolidated Balance Sheet at June 30, 2015 , because this intercompany transaction was eliminated in consolidation. In addition, Centennial, Knife River and MDU Construction Services have issued guarantees to third parties related to the routine purchase of maintenance items, materials and lease obligations for which no fixed maximum amounts have been specified. These guarantees have no scheduled maturity date. In the event a subsidiary of the Company defaults under these obligations, Centennial, Knife River and MDU Construction Services would be required to make payments under these guarantees. Any amounts outstanding by subsidiaries of the Company for these guarantees were reflected on the Consolidated Balance Sheet at June 30, 2015 . In the normal course of business, Centennial has surety bonds related to construction contracts and reclamation obligations of its subsidiaries. In the event a subsidiary of Centennial does not fulfill a bonded obligation, Centennial would be responsible to the surety bond company for completion of the bonded contract or obligation. A large portion of the surety bonds is expected to expire within the next 12 months; however, Centennial will likely continue to enter into surety bonds for its subsidiaries in the future. At June 30, 2015 , approximately $720.9 million of surety bonds were outstanding, which were not reflected on the Consolidated Balance Sheet. Variable interest entities The Company evaluates its arrangements and contracts with other entities to determine if they are VIEs and if so, if the Company is the primary beneficiary. Dakota Prairie Refining, LLC On February 7, 2013, WBI Energy and Calumet formed a limited liability company, Dakota Prairie Refining, and entered into an operating agreement to develop, build and operate Dakota Prairie Refinery in southwestern North Dakota. WBI Energy and Calumet each have a 50 percent ownership interest in Dakota Prairie Refining. WBI Energy's and Calumet's capital commitments, based on a total project cost of $300 million , under the agreement are $150 million and $75 million , respectively. Capital commitments in excess of $300 million are being shared equally between WBI Energy and Calumet. WBI Energy's and Calumet's cumulative capital contributions as of June 30, 2015, are $234.5 million and $159.5 million , respectively. Dakota Prairie Refining entered into a term loan for project debt financing of $75 million on April 22, 2013. The operating agreement provides for allocation of profits and losses consistent with ownership interests; however, deductions attributable to project financing debt will be allocated to Calumet. Calumet's future cash distributions from Dakota Prairie Refining will be decreased by the principal and interest to be paid on the project debt, while the cash distributions to WBI Energy will not be decreased. Pursuant to the operating agreement, Centennial agreed to guarantee Dakota Prairie Refining's obligation under the term loan. On December 1, 2014, Dakota Prairie Refining entered into a $50 million revolving credit agreement with an expiration date of December 1, 2015. Pursuant to the revolving credit agreement, WBI Holdings has guaranteed 50 percent of the credit agreement and Calumet has issued a letter of credit supporting 50 percent of the credit agreement. The credit agreement is used to meet the operational needs of the facility. Dakota Prairie Refining has been determined to be a VIE, and the Company has determined that it is the primary beneficiary as it has an obligation to absorb losses that could be potentially significant to the VIE through WBI Energy's equity investment and Centennial's guarantee of the third-party term loan. Accordingly, the Company consolidates Dakota Prairie Refining in its financial statements and records a noncontrolling interest for Calumet's ownership interest. Dakota Prairie Refinery has commenced operations. The assets of Dakota Prairie Refining shall be used solely for the benefit of Dakota Prairie Refining. The total assets and liabilities of Dakota Prairie Refining reflected on the Company's Consolidated Balance Sheets were as follows: June 30, 2015 June 30, 2014 December 31, 2014 (In thousands) ASSETS Current assets: Cash and cash equivalents $ 845 $ 32,283 $ 21,376 Accounts receivable 29,639 — 2,759 Inventories 24,166 — 5,311 Other current assets 7,887 2,136 4,019 Total current assets 62,537 34,419 33,465 Net property, plant and equipment 431,476 254,079 398,984 Deferred charges and other assets: Other 5,729 — 3,400 Total deferred charges and other assets 5,729 — 3,400 Total assets $ 499,742 $ 288,498 $ 435,849 LIABILITIES Current liabilities: Short-term borrowings $ 26,000 $ — $ — Long-term debt due within one year 3,000 3,000 3,000 Accounts payable 38,339 28,150 55,089 Taxes payable 1,601 225 648 Accrued compensation 649 256 727 Other accrued liabilities 932 494 899 Total current liabilities 70,521 32,125 60,363 Long-term debt 66,000 69,000 69,000 Total liabilities $ 136,521 $ 101,125 $ 129,363 Fuel Contract On October 10, 2012, the Coyote Station entered into a new coal supply agreement with Coyote Creek that will replace a coal supply agreement expiring in May 2016. The new agreement provides for the purchase of coal necessary to supply the coal requirements of the Coyote Station for the period May 2016 through December 2040. The new coal supply agreement creates a variable interest in Coyote Creek due to the transfer of all operating and economic risk to the Coyote Station owners, as the agreement is structured so the price of the coal will cover all costs of operations as well as future reclamation costs. The Coyote Station owners are also providing a guarantee of the value of the assets of Coyote Creek as they would be required to buy the assets at book value should they terminate the contract prior to the end of the contract term and are providing a guarantee of the value of the equity of Coyote Creek in that they are required to buy the entity at the end of the contract term at equity value. Although the Company has determined that Coyote Creek is a VIE, the Company has concluded that it is not the primary beneficiary of Coyote Creek because the authority to direct the activities of the entity is shared by the four unrelated owners of the Coyote Station, with no primary beneficiary existing. As a result, Coyote Creek is not required to be consolidated in the Company's financial statements. At June 30, 2015 , Coyote Creek was not yet operational. The assets and liabilities of Coyote Creek and exposure to loss as a result of the Company's involvement with the VIE, based on the Company's ownership percentage, at June 30, 2015 , was $26.1 million . |
Subsequent event (Notes)
Subsequent event (Notes) | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Event [Line Items] | |
Subsequent event [Text Block] | Subsequent Event On July 21, 2015, the Company entered into a $75.0 million term loan agreement with a variable interest rate which matures on July 20, 2016. The agreement contains customary covenants and provisions, including a covenant of the Company not to permit, at any time, the ratio of funded debt to capitalization (on either a consolidated or unconsolidated basis) to be greater than 65 percent . Other covenants include restrictions on the sale of certain assets and the making of certain investments. |
Inventories and natural gas i26
Inventories and natural gas in storage (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of: June 30, 2015 June 30, 2014 December 31, 2014 (In thousands) Aggregates held for resale $ 123,457 $ 112,129 $ 108,161 Asphalt oil 79,422 76,525 42,135 Materials and supplies 22,594 58,089 54,282 Merchandise for resale 16,140 25,507 24,420 Refined products 16,065 — — Natural gas in storage (current) 11,310 10,903 19,302 Crude oil 8,101 — 5,045 Other 37,316 35,420 36,065 Total $ 314,405 $ 318,573 $ 289,410 |
Earnings (loss) per common sh27
Earnings (loss) per common share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Weighted average common shares outstanding | A reconciliation of the weighted average common shares outstanding used in the basic and diluted earnings (loss) per share calculations was as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) Weighted average common shares outstanding - basic 194,805 192,060 194,643 190,946 Effect of dilutive performance share awards 33 599 32 597 Weighted average common shares outstanding - diluted 194,838 192,659 194,675 191,543 Shares excluded from the calculation of diluted earnings per share — — — — |
Cash flow information (Tables)
Cash flow information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental cash flow information | Cash expenditures for interest and income taxes were as follows: Six Months Ended June 30, 2015 2014 (In thousands) Interest, net of amounts capitalized and AFUDC - borrowed of $5.0 million and $5.7 million in 2015 and 2014, respectively $ 45,102 $ 39,384 Income taxes paid, net $ 3,117 $ 56,267 Noncash investing transactions were as follows: June 30, 2015 2014 (In thousands) Property, plant and equipment additions in accounts payable $ 13,467 $ 47,499 |
Comprehensive income (loss) (Ta
Comprehensive income (loss) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Comprehensive income (loss) [Abstract] | |
Comprehensive income (loss) | The after-tax changes in the components of accumulated other comprehensive loss were as follows: Three Months Ended June 30, 2015 Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Hedges Postretirement Liability Adjustment Foreign Currency Translation Adjustment Net Unrealized Gain (Loss) on Available-for-sale Investments Total Accumulated Other Comprehensive Loss (In thousands) Balance at beginning of period $ (2,972 ) $ (37,843 ) $ (139 ) $ 30 $ (40,924 ) Other comprehensive income (loss) before reclassifications — — 9 (43 ) (34 ) Amounts reclassified from accumulated other comprehensive loss 100 584 — 28 712 Net current-period other comprehensive income (loss) 100 584 9 (15 ) 678 Balance at end of period $ (2,872 ) $ (37,259 ) $ (130 ) $ 15 $ (40,246 ) Three Months Ended June 30, 2014 Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Hedges Postretirement Liability Adjustment Foreign Currency Translation Adjustment Net Unrealized Gain on Available-for-sale Investments Total Accumulated Other Comprehensive Loss (In thousands) Balance at beginning of period $ (3,421 ) $ (33,532 ) $ (621 ) $ 36 $ (37,538 ) Other comprehensive income before reclassifications — — 42 8 50 Amounts reclassified from accumulated other comprehensive loss 13 245 — 32 290 Net current-period other comprehensive income 13 245 42 40 340 Balance at end of period $ (3,408 ) $ (33,287 ) $ (579 ) $ 76 $ (37,198 ) Six Months Ended June 30, 2015 Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Hedges Postretirement Liability Adjustment Foreign Currency Translation Adjustment Net Unrealized Gain (Loss) on Available-for-sale Investments Total Accumulated Other Comprehensive Loss (In thousands) Balance at beginning of period $ (3,071 ) $ (38,218 ) $ (829 ) $ 15 $ (42,103 ) Other comprehensive loss before reclassifications — — (103 ) (64 ) (167 ) Amounts reclassified from accumulated other comprehensive loss 199 959 802 64 2,024 Net current-period other comprehensive income 199 959 699 — 1,857 Balance at end of period $ (2,872 ) $ (37,259 ) $ (130 ) $ 15 $ (40,246 ) Six Months Ended June 30, 2014 Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Hedges Postretirement Liability Adjustment Foreign Currency Translation Adjustment Net Unrealized Gain on Available-for-sale Investments Total Accumulated Other Comprehensive Loss (In thousands) Balance at beginning of period $ (3,765 ) $ (33,807 ) $ (667 ) $ 34 $ (38,205 ) Other comprehensive income before reclassifications — — 88 10 98 Amounts reclassified from accumulated other comprehensive loss 357 520 — 32 909 Net current-period other comprehensive income 357 520 88 42 1,007 Balance at end of period $ (3,408 ) $ (33,287 ) $ (579 ) $ 76 $ (37,198 ) |
Reclassification out of accumulated other comprehensive income | Reclassifications out of accumulated other comprehensive loss were as follows: Three Months Ended Six Months Ended Location on Consolidated Statements of Income June 30, June 30, 2015 2014 2015 2014 (In thousands) Reclassification adjustment for loss on derivative instruments included in net income (loss): Interest rate derivative instruments $ (160 ) $ (160 ) $ (320 ) $ (320 ) Interest expense 60 60 121 121 Income taxes (100 ) (100 ) (199 ) (199 ) Commodity derivative instruments, net of tax — 87 — (158 ) Discontinued operations (100 ) (13 ) (199 ) (357 ) Amortization of postretirement liability losses included in net periodic benefit cost (1,004 ) (395 ) (1,608 ) (838 ) (a) 420 150 649 318 Income taxes (584 ) (245 ) (959 ) (520 ) Reclassification adjustment for loss on foreign currency translation adjustment included in net income (loss) — — (1,293 ) — Other income — — 491 — Income taxes — — (802 ) — Reclassification adjustment for loss on available-for-sale investments included in net income (loss) (43 ) (49 ) (98 ) (49 ) Other income 15 17 34 17 Income taxes (28 ) (32 ) (64 ) (32 ) Total reclassifications $ (712 ) $ (290 ) $ (2,024 ) $ (909 ) (a) Included in net periodic benefit cost (credit). For more information, see Note 15 . |
Discontinued operations Disposa
Discontinued operations Disposal groups (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The carrying amounts of the major classes of assets and liabilities that are classified as held for sale on the Company's Consolidated Balance Sheets were as follows: June 30, 2015 June 30, 2014 December 31, 2014 (In thousands) ASSETS Current assets: Receivables, net $ 33,551 $ 146,589 $ 94,132 Inventories 6,748 12,849 11,401 Deferred income taxes — 6,623 — Commodity derivative instruments 2,537 129 18,335 Prepayments and other current assets 34,456 6,328 7,309 Total current assets held for sale 77,292 172,518 131,177 Noncurrent assets: Investments 37 37 37 Net property, plant and equipment 1,097,576 1,753,509 1,618,099 Deferred income taxes 52,017 — — Other 161 4,091 2,334 Less allowance for impairment of assets held for sale 399,987 — — Total noncurrent assets held for sale 749,804 1,757,637 1,620,470 Total assets held for sale $ 827,096 $ 1,930,155 $ 1,751,647 LIABILITIES Current liabilities: Long-term debt due within one year $ — $ 569 $ 897 Accounts payable 49,400 165,189 103,556 Taxes payable 4,064 15,051 19,900 Deferred income taxes 1,401 — 8,206 Accrued compensation 4,460 5,721 5,373 Commodity derivative instruments 3,511 17,449 — Other accrued liabilities 12,107 27,640 16,796 Total current liabilities held for sale 74,943 231,619 154,728 Noncurrent liabilities: Long-term debt — 608 — Deferred income taxes — 257,316 238,391 Other liabilities 35,790 60,761 57,050 Total noncurrent liabilities held for sale 35,790 318,685 295,441 Total liabilities held for sale $ 110,733 $ 550,304 $ 450,169 |
Reconciliation of Major Classes of Income And Expense [Table Text Block] | The reconciliation of the major classes of income and expense constituting pretax income (loss) from discontinued operations to the after-tax net income (loss) from discontinued operations on the Company's Consolidated Statements of Income were as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) Operating revenues $ 43,087 $ 139,580 $ 98,023 $ 277,115 Operating expenses 442,725 103,057 1,015,677 201,307 Operating income (loss) (399,638 ) 36,523 (917,654 ) 75,808 Other income 188 1,010 2,069 1,025 Interest expense 33 31 55 57 Income (loss) from discontinued operations before income taxes (399,483 ) 37,502 (915,640 ) 76,776 Income taxes (148,068 ) 13,621 (339,620 ) 27,783 Income (loss) from discontinued operations $ (251,415 ) $ 23,881 $ (576,020 ) $ 48,993 |
Goodwill and other intangible31
Goodwill and other intangible assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill were as follows: Six Months Ended June 30, 2015 Balance January 1, 2015* Goodwill the Year Balance as of June 30, 2015* (In thousands) Natural gas distribution $ 345,736 $ — $ 345,736 Pipeline and energy services 9,737 — 9,737 Construction materials and contracting 176,290 — 176,290 Construction services 103,441 — 103,441 Total $ 635,204 $ — $ 635,204 * Balance is presented net of accumulated impairment of $12.3 million at the pipeline and energy services segment, which occurred in prior periods. Six Months Ended June 30, 2014 Balance January 1, 2014* Goodwill Acquired During the Year Balance as of June 30, 2014* (In thousands) Natural gas distribution $ 345,736 $ — $ 345,736 Pipeline and energy services 9,737 — 9,737 Construction materials and contracting 176,290 — 176,290 Construction services 104,276 — 104,276 Total $ 636,039 $ — $ 636,039 * Balance is presented net of accumulated impairment of $12.3 million at the pipeline and energy services segment, which occurred in prior periods. Year Ended December 31, 2014 Balance January 1, 2014* Goodwill During the Year/Other Balance December 31, 2014* (In thousands) Natural gas distribution $ 345,736 $ — $ 345,736 Pipeline and energy services 9,737 — 9,737 Construction materials and contracting 176,290 — 176,290 Construction services 104,276 (835 ) 103,441 Total $ 636,039 $ (835 ) $ 635,204 * Balance is presented net of accumulated impairment of $12.3 million at the pipeline and energy services segment, which occurred in prior periods. |
Other amortizable intangible assets | Other amortizable intangible assets were as follows: June 30, June 30, December 31, 2014 (In thousands) Customer relationships $ 20,975 $ 21,310 $ 21,310 Accumulated amortization (16,065 ) (14,734 ) (15,556 ) 4,910 6,576 5,754 Noncompete agreements 4,409 5,080 5,080 Accumulated amortization (3,581 ) (3,936 ) (4,098 ) 828 1,144 982 Other 8,300 10,921 10,921 Accumulated amortization (5,532 ) (7,375 ) (7,817 ) 2,768 3,546 3,104 Total $ 8,506 $ 11,266 $ 9,840 |
Derivative instruments (Tables)
Derivative instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments, gain (losses) | The gains and losses on derivative instruments were as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) Commodity derivatives designated as cash flow hedges: Amount of (gain) loss reclassified from accumulated other comprehensive loss into discontinued operations (effective portion), net of tax $ — $ (87 ) $ — $ 158 Interest rate derivatives designated as cash flow hedges: Amount of loss reclassified from accumulated other comprehensive loss into interest expense (effective portion), net of tax 100 100 199 199 Commodity derivatives not designated as hedging instruments: Amount of loss recognized in discontinued operations, before tax (8,101 ) (5,196 ) (19,309 ) (11,908 ) |
Derivative instruments | The location and fair value of the gross amount of the Company's derivative instruments on the Consolidated Balance Sheets were as follows: Asset Derivatives Location on Consolidated Balance Sheets Fair Value at June 30, 2015 Fair Value at June 30, 2014 Fair Value at December 31, 2014 (In thousands) Not designated as hedges: Commodity derivatives Current assets held for sale $ 2,537 $ 129 $ 18,335 Noncurrent assets held for sale — 131 — Total asset derivatives $ 2,537 $ 260 $ 18,335 Liability Derivatives Location on Consolidated Balance Sheets Fair Value at June 30, 2015 Fair Value at June 30, 2014 Fair Value at December 31, 2014 (In thousands) Not designated as hedges: Commodity derivatives Current liabilities held for sale $ 3,511 $ 17,449 $ — Total liability derivatives $ 3,511 $ 17,449 $ — |
Offsetting assets and liabilities master netting | The gross derivative assets and liabilities (excluding settlement receivables and payables that may be subject to the same master netting agreements) presented on the Consolidated Balance Sheets and the amount eligible for offset under the master netting agreements is presented in the following table: June 30, 2015 Gross Amounts Recognized on the Consolidated Balance Sheets Gross Amounts Not Offset on the Consolidated Balance Sheets Net (In thousands) Assets: Commodity derivatives $ 2,537 $ (2,537 ) $ — Total assets $ 2,537 $ (2,537 ) $ — Liabilities: Commodity derivatives $ 3,511 $ (2,537 ) $ 974 Total liabilities $ 3,511 $ (2,537 ) $ 974 June 30, 2014 Gross Amounts Recognized on the Consolidated Balance Sheets Gross Amounts Not Offset on the Consolidated Balance Sheets Net (In thousands) Assets: Commodity derivatives $ 260 $ (260 ) $ — Total assets $ 260 $ (260 ) $ — Liabilities: Commodity derivatives $ 17,449 $ (260 ) $ 17,189 Total liabilities $ 17,449 $ (260 ) $ 17,189 December 31, 2014 Gross Amounts Recognized on the Consolidated Balance Sheets Gross Amounts Not Offset on the Consolidated Balance Sheets Net (In thousands) Assets: Commodity derivatives $ 18,335 $ — $ 18,335 Total assets $ 18,335 $ — $ 18,335 |
Fair value measurements (Tables
Fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Available-for-sale securities | Details of available-for-sale securities were as follows: June 30, 2015 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Mortgage-backed securities $ 8,072 $ 29 $ (28 ) $ 8,073 U.S. Treasury securities 2,327 22 — 2,349 Total $ 10,399 $ 51 $ (28 ) $ 10,422 June 30, 2014 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Mortgage-backed securities $ 7,989 $ 91 $ (5 ) $ 8,075 U.S. Treasury securities 2,066 30 — 2,096 Total $ 10,055 $ 121 $ (5 ) $ 10,171 December 31, 2014 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Mortgage-backed securities $ 6,594 $ 60 $ (18 ) $ 6,636 U.S. Treasury securities 3,574 — (19 ) 3,555 Total $ 10,168 $ 60 $ (37 ) $ 10,191 |
Assets and liabilities measured at fair value on a recurring basis | The Company's assets and liabilities measured at fair value on a recurring basis were as follows: Fair Value Measurements at June 30, 2015, Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at June 30, 2015 (In thousands) Assets: Money market funds $ — $ 16,358 $ — $ 16,358 Insurance contract* — 68,187 — 68,187 Available-for-sale securities: Mortgage-backed securities — 8,073 — 8,073 U.S. Treasury securities — 2,349 — 2,349 Total assets measured at fair value $ — $ 94,967 $ — $ 94,967 Liabilities: RIN obligations $ — $ 538 $ — $ 538 Total liabilities measured at fair value $ — $ 538 $ — $ 538 * The insurance contract invests approximately 20 percent in common stock of mid-cap companies, 18 percent in common stock of small-cap companies, 28 percent in common stock of large-cap companies, 32 percent in fixed-income investments, 1 percent in target date investments and 1 percent in cash equivalents. Fair Value Measurements at June 30, 2014, Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at June 30, 2014 (In thousands) Assets: Money market funds $ — $ 16,031 $ — $ 16,031 Insurance contract* — 64,449 — 64,449 Available-for-sale securities: Mortgage-backed securities — 8,075 — 8,075 U.S. Treasury securities — 2,096 — 2,096 Total assets measured at fair value $ — $ 90,651 $ — $ 90,651 * The insurance contract invests approximately 21 percent in common stock of mid-cap companies, 18 percent in common stock of small-cap companies, 29 percent in common stock of large-cap companies, 31 percent in fixed-income investments and 1 percent in cash equivalents. Fair Value Measurements at December 31, 2014, Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at December 31, 2014 (In thousands) Assets: Money market funds $ — $ 16,138 $ — $ 16,138 Insurance contract* — 65,831 — 65,831 Available-for-sale securities: Mortgage-backed securities — 6,636 — 6,636 U.S. Treasury securities — 3,555 — 3,555 Total assets measured at fair value $ — $ 92,160 $ — $ 92,160 * The insurance contract invests approximately 20 percent in common stock of mid-cap companies, 18 percent in common stock of small-cap companies, 29 percent in common stock of large-cap companies, 32 percent in fixed-income investments and 1 percent in cash equivalents. |
Fair value of long term debt outstanding | The estimated fair value of the Company's Level 2 long-term debt was as follows: Carrying Amount Fair Value (In thousands) Long-term debt at June 30, 2015 $ 2,376,802 $ 2,468,204 Long-term debt at June 30, 2014 $ 2,185,917 $ 2,282,174 Long-term debt at December 31, 2014 $ 2,093,830 $ 2,238,548 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Summary of changes in equity | A summary of the changes in equity was as follows: Six Months Ended June 30, 2015 Total Stockholders' Equity Noncontrolling Interest Total Equity (In thousands) Balance at December 31, 2014 $ 3,134,041 $ 115,743 $ 3,249,784 Net loss (535,521 ) (11,282 ) (546,803 ) Other comprehensive income 1,857 — 1,857 Dividends declared on preferred stocks (342 ) — (342 ) Dividends declared on common stock (71,078 ) — (71,078 ) Stock-based compensation 1,107 — 1,107 Net tax deficit on stock-based compensation (1,632 ) — (1,632 ) Issuance of common stock 14,499 — 14,499 Contribution from noncontrolling interest — 39,500 39,500 Balance at June 30, 2015 $ 2,542,931 $ 143,961 $ 2,686,892 Six Months Ended June 30, 2014 Total Stockholders' Equity Noncontrolling Interest Total Equity (In thousands) Balance at December 31, 2013 $ 2,823,164 $ 32,738 $ 2,855,902 Net income (loss) 110,768 (1,302 ) 109,466 Other comprehensive income 1,007 — 1,007 Dividends declared on preferred stocks (342 ) — (342 ) Dividends declared on common stock (68,025 ) — (68,025 ) Stock-based compensation 2,796 — 2,796 Issuance of common stock upon vesting of performance shares, net of shares used for tax withholdings (5,564 ) — (5,564 ) Excess tax benefit on stock-based compensation 4,729 — 4,729 Issuance of common stock 131,973 — 131,973 Contribution from noncontrolling interest — 32,500 32,500 Balance at June 30, 2014 $ 3,000,506 $ 63,936 $ 3,064,442 |
Business segment data (Tables)
Business segment data (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Information on the Company's businesses | Information on the Company's businesses was as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) External operating revenues: Regulated operations: Electric $ 64,265 $ 65,149 $ 136,041 $ 138,796 Natural gas distribution 132,965 146,077 463,538 520,311 Pipeline and energy services 18,242 15,246 22,183 19,668 215,472 226,472 621,762 678,775 Nonregulated operations: Pipeline and energy services 63,131 16,044 77,834 29,859 Construction materials and contracting 495,640 434,452 701,298 598,875 Construction services 211,515 275,109 446,918 545,002 Other 457 487 752 815 770,743 726,092 1,226,802 1,174,551 Total external operating revenues $ 986,215 $ 952,564 $ 1,848,564 $ 1,853,326 Intersegment operating revenues: Regulated operations: Electric $ — $ — $ — $ — Natural gas distribution — — — — Pipeline and energy services 6,564 6,937 27,625 24,210 6,564 6,937 27,625 24,210 Nonregulated operations: Pipeline and energy services 110 177 316 371 Construction materials and contracting 1,257 8,106 2,205 12,123 Construction services 3,491 7,273 15,186 11,010 Other 1,792 1,744 3,563 3,468 6,650 17,300 21,270 26,972 Intersegment eliminations (13,214 ) (24,237 ) (48,895 ) (51,182 ) Total intersegment operating revenues $ — $ — $ — $ — Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) Earnings (loss) on common stock: Regulated operations: Electric $ 5,910 $ 7,823 $ 14,237 $ 18,856 Natural gas distribution (5,375 ) (4,494 ) 16,075 22,768 Pipeline and energy services 4,329 3,614 9,685 6,612 4,864 6,943 39,997 48,236 Nonregulated operations: Pipeline and energy services (5,933 ) 2,175 (7,271 ) 3,526 Construction materials and contracting 20,136 10,554 5,501 (13,019 ) Construction services 7,003 14,307 11,763 30,875 Other (3,746 ) (2,971 ) (8,158 ) (6,758 ) 17,460 24,065 1,835 14,624 Intersegment eliminations (684 ) (954 ) (1,675 ) (1,427 ) Earnings on common stock before income (loss) from discontinued operations 21,640 30,054 40,157 61,433 Income (loss) from discontinued operations, net of tax (251,415 ) 23,881 (576,020 ) 48,993 Total earnings (loss) on common stock $ (229,775 ) $ 53,935 $ (535,863 ) $ 110,426 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of net benefit costs | Components of net periodic benefit cost for the Company's pension and other postretirement benefit plans were as follows: Other Postretirement Pension Benefits Benefits Three Months Ended June 30, 2015 2014 2015 2014 (In thousands) Components of net periodic benefit cost (credit): Service cost $ 46 $ 31 $ 425 $ 380 Interest cost 4,206 4,405 889 924 Expected return on assets (5,753 ) (5,484 ) (1,223 ) (1,242 ) Amortization of prior service cost (credit) 18 18 (343 ) (348 ) Amortization of net actuarial loss 1,813 1,121 553 6 Curtailment loss 258 — — — Net periodic benefit cost (credit), including amount capitalized 588 91 301 (280 ) Less amount capitalized 53 73 33 (19 ) Net periodic benefit cost (credit) $ 535 $ 18 $ 268 $ (261 ) Other Postretirement Pension Benefits Benefits Six Months Ended June 30, 2015 2014 2015 2014 (In thousands) Components of net periodic benefit cost (credit): Service cost $ 86 $ 64 $ 908 $ 759 Interest cost 8,570 8,845 1,803 1,782 Expected return on assets (11,126 ) (10,609 ) (2,398 ) (2,309 ) Amortization of prior service cost (credit) 36 36 (685 ) (696 ) Amortization of net actuarial loss 3,548 2,434 1,014 324 Curtailment loss 258 — — — Net periodic benefit cost (credit), including amount capitalized 1,372 770 642 (140 ) Less amount capitalized 129 168 62 10 Net periodic benefit cost (credit) $ 1,243 $ 602 $ 580 $ (150 ) |
Contingencies Commitment and Co
Contingencies Commitment and Contingencies Disclosure (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Limited liability project reflected on consolidated balance sheet | The total assets and liabilities of Dakota Prairie Refining reflected on the Company's Consolidated Balance Sheets were as follows: June 30, 2015 June 30, 2014 December 31, 2014 (In thousands) ASSETS Current assets: Cash and cash equivalents $ 845 $ 32,283 $ 21,376 Accounts receivable 29,639 — 2,759 Inventories 24,166 — 5,311 Other current assets 7,887 2,136 4,019 Total current assets 62,537 34,419 33,465 Net property, plant and equipment 431,476 254,079 398,984 Deferred charges and other assets: Other 5,729 — 3,400 Total deferred charges and other assets 5,729 — 3,400 Total assets $ 499,742 $ 288,498 $ 435,849 LIABILITIES Current liabilities: Short-term borrowings $ 26,000 $ — $ — Long-term debt due within one year 3,000 3,000 3,000 Accounts payable 38,339 28,150 55,089 Taxes payable 1,601 225 648 Accrued compensation 649 256 727 Other accrued liabilities 932 494 899 Total current liabilities 70,521 32,125 60,363 Long-term debt 66,000 69,000 69,000 Total liabilities $ 136,521 $ 101,125 $ 129,363 |
Accounts receivable and allow38
Accounts receivable and allowance for doubtful accounts (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Receivables [Abstract] | |||
Receivables past due 90 days or more | $ 30.3 | $ 29.4 | $ 26.1 |
Allowance for doubtful accounts receivable | $ 8.6 | $ 9.5 | $ 9.6 |
Inventories and natural gas i39
Inventories and natural gas in storage (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Inventory Disclosure [Abstract] | |||
Aggregates held for resale | $ 123,457 | $ 108,161 | $ 112,129 |
Asphalt oil | 79,422 | 42,135 | 76,525 |
Materials and supplies | 22,594 | 54,282 | 58,089 |
Merchandise for resale | 16,140 | 24,420 | 25,507 |
Refined products | 16,065 | 0 | 0 |
Natural gas in storage (current) | 11,310 | 19,302 | 10,903 |
Crude oil | 8,101 | 5,045 | 0 |
Other | 37,316 | 36,065 | 35,420 |
Total | 314,405 | 289,410 | 318,573 |
Natural gas in storage noncurrent | $ 49,300 | $ 49,300 | $ 47,400 |
Earnings (loss) per common sh40
Earnings (loss) per common share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding - basic | 194,805 | 192,060 | 194,643 | 190,946 |
Effect of dilutive performance share awards | 33 | 599 | 32 | 597 |
Weighted average common shares outstanding - diluted | 194,838 | 192,659 | 194,675 | 191,543 |
Shares excluded from the calculation of diluted earnings per share | 0 | 0 | 0 | 0 |
Cash flow information (Details
Cash flow information (Details 1) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest, net of amounts capitalized and AFUDC - borrowed of $5.0 million and $5.7 million in 2015 and 2014, respectively | $ 45,102 | $ 39,384 |
Income taxes paid, net | 3,117 | 56,267 |
Property, plant and equipment additions in accounts payable | $ 13,467 | $ 47,499 |
Cash flow information Cash flow
Cash flow information Cash flow information (Details 2) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Supplemental Cash Flow Information [Abstract] | ||
Capitalized interest and AFUDC borrowed | $ 5 | $ 5.7 |
Comprehensive income (loss) (De
Comprehensive income (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated other comprehensive income (loss) [Roll Forward] | ||||
Balance | $ (40,924) | $ (37,538) | $ (42,103) | $ (38,205) |
Other comprehensive loss before reclassifications | (34) | 50 | (167) | 98 |
Amounts reclassified from accumulated other comprehensive loss | 712 | 290 | 2,024 | 909 |
Net current-period other comprehensive income (loss) | 678 | 340 | 1,857 | 1,007 |
Balance | (40,246) | (37,198) | (40,246) | (37,198) |
Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Hedges | ||||
Accumulated other comprehensive income (loss) [Roll Forward] | ||||
Balance | (2,972) | (3,421) | (3,071) | (3,765) |
Other comprehensive loss before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 100 | 13 | 199 | 357 |
Net current-period other comprehensive income (loss) | 100 | 13 | 199 | 357 |
Balance | (2,872) | (3,408) | (2,872) | (3,408) |
Postretirement liability adjustment | ||||
Accumulated other comprehensive income (loss) [Roll Forward] | ||||
Balance | (37,843) | (33,532) | (38,218) | (33,807) |
Other comprehensive loss before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 584 | 245 | 959 | 520 |
Net current-period other comprehensive income (loss) | 584 | 245 | 959 | 520 |
Balance | (37,259) | (33,287) | (37,259) | (33,287) |
Foreign currency translation adjustment | ||||
Accumulated other comprehensive income (loss) [Roll Forward] | ||||
Balance | (139) | (621) | (829) | (667) |
Other comprehensive loss before reclassifications | 9 | 42 | (103) | 88 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 802 | 0 |
Net current-period other comprehensive income (loss) | 9 | 42 | 699 | 88 |
Balance | (130) | (579) | (130) | (579) |
Net unrealized gain (loss) on available-for-sale investments | ||||
Accumulated other comprehensive income (loss) [Roll Forward] | ||||
Balance | 30 | 36 | 15 | 34 |
Other comprehensive loss before reclassifications | (43) | 8 | (64) | 10 |
Amounts reclassified from accumulated other comprehensive loss | 28 | 32 | 64 | 32 |
Net current-period other comprehensive income (loss) | (15) | 40 | 0 | 42 |
Balance | $ 15 | $ 76 | $ 15 | $ 76 |
Reclassification out of accumul
Reclassification out of accumulated other comprehensive income (loss) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification adjustment out of accumulated other comprehensive income [Line Items] | ||||
Interest expense | $ (23,790) | $ (21,484) | $ (46,919) | $ (42,431) |
Income (loss) from discontinued operations, net of tax | (251,415) | 23,881 | (576,020) | 48,993 |
Other income | 2,320 | 2,470 | 2,764 | 4,638 |
Income taxes | (9,801) | (13,894) | (15,626) | (27,696) |
Income from continuing operations | 14,057 | 29,446 | 29,217 | 60,473 |
Net income (loss) | (237,358) | 53,327 | (546,803) | 109,466 |
Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Hedges | ||||
Reclassification adjustment out of accumulated other comprehensive income [Line Items] | ||||
Income taxes | 60 | 60 | 121 | 121 |
Income from continuing operations | (100) | (100) | (199) | (199) |
Net income (loss) | (100) | (13) | (199) | (357) |
Postretirement Liability Adjustment | ||||
Reclassification adjustment out of accumulated other comprehensive income [Line Items] | ||||
Net periodic benefit cost | (1,004) | (395) | (1,608) | (838) |
Income taxes | 420 | 150 | 649 | 318 |
Net income (loss) | (584) | (245) | (959) | (520) |
Foreign Currency Translation Adjustment | ||||
Reclassification adjustment out of accumulated other comprehensive income [Line Items] | ||||
Other income | 0 | 0 | (1,293) | 0 |
Income taxes | 0 | 0 | 491 | 0 |
Net income (loss) | 0 | 0 | (802) | 0 |
Net Unrealized Gain on Available-for-sale Investments | ||||
Reclassification adjustment out of accumulated other comprehensive income [Line Items] | ||||
Other income | (43) | (49) | (98) | (49) |
Income taxes | 15 | 17 | 34 | 17 |
Net income (loss) | (28) | (32) | (64) | (32) |
Total Accumulated Other Comprehensive Loss | ||||
Reclassification adjustment out of accumulated other comprehensive income [Line Items] | ||||
Net income (loss) | (712) | (290) | (2,024) | (909) |
Interest rate derivative instruments [Member] | Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Hedges | ||||
Reclassification adjustment out of accumulated other comprehensive income [Line Items] | ||||
Interest expense | (160) | (160) | (320) | (320) |
Commodity derivative instruments [Member] | Net Unrealized Gain (Loss) on Derivative Instruments Qualifying as Hedges | ||||
Reclassification adjustment out of accumulated other comprehensive income [Line Items] | ||||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 87 | $ 0 | $ (158) |
Major classes of assets and lia
Major classes of assets and liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Current assets: | |||
Receivables, net | $ 33,551 | $ 94,132 | $ 146,589 |
Inventories | 6,748 | 11,401 | 12,849 |
Deferred income taxes | 0 | 0 | 6,623 |
Commodity derivative instruments | 2,537 | 18,335 | 129 |
Prepayments and other current assets | 34,456 | 7,309 | 6,328 |
Total current assets held for sale | 77,292 | 131,177 | 172,518 |
Noncurrent assets: | |||
Investments | 37 | 37 | 37 |
Net property, plant and equipment | 1,097,576 | 1,618,099 | 1,753,509 |
Deferred income taxes | 52,017 | 0 | 0 |
Other | 161 | 2,334 | 4,091 |
Less allowance for impairment of assets held for sale | 399,987 | 0 | 0 |
Total noncurrent assets held for sale | 749,804 | 1,620,470 | 1,757,637 |
Total assets held for sale | 827,096 | 1,751,647 | 1,930,155 |
Current liabilities: | |||
Long-term debt due within one year | 0 | 897 | 569 |
Accounts payable | 49,400 | 103,556 | 165,189 |
Taxes payable | 4,064 | 19,900 | 15,051 |
Deferred income taxes | 1,401 | 8,206 | 0 |
Accrued compensation | 4,460 | 5,373 | 5,721 |
Commodity derivative instruments | 3,511 | 0 | 17,449 |
Other accrued liabilities | 12,107 | 16,796 | 27,640 |
Total current liabilities held for sale | 74,943 | 154,728 | 231,619 |
Noncurrent liabilities: | |||
Long-term debt | 0 | 0 | 608 |
Deferred income taxes | 0 | 238,391 | 257,316 |
Other liabilities | 35,790 | 57,050 | 60,761 |
Total noncurrent liabilities held for sale | 35,790 | 295,441 | 318,685 |
Total liabilities held for sale | $ 110,733 | $ 450,169 | $ 550,304 |
Impairment Fair Value and Ceili
Impairment Fair Value and Ceiling Test (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax | $ 400 | |
Discontinued Operation, Provision for Loss (Gain) on Disposal, Net of Tax | $ 252 | |
Impairment of Oil and Gas Properties | $ 500.4 | |
Impairment of oil and gas properties, after tax | $ 315.3 |
Reconciliation of Income and Ex
Reconciliation of Income and Expenses (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Operating revenues | $ 43,087 | $ 139,580 | $ 98,023 | $ 277,115 |
Operating expenses | 442,725 | 103,057 | 1,015,677 | 201,307 |
Operating income (loss) | (399,638) | 36,523 | (917,654) | 75,808 |
Other income | 188 | 1,010 | 2,069 | 1,025 |
Interest expense | 33 | 31 | 55 | 57 |
Income (loss) from discontinued operations before income taxes | (399,483) | 37,502 | (915,640) | 76,776 |
Income taxes | (148,068) | 13,621 | (339,620) | 27,783 |
Income (loss) from discontinued operations | $ (251,415) | $ 23,881 | $ (576,020) | $ 48,993 |
Goodwill rollforward (Details)
Goodwill rollforward (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Goodwill [Roll Forward] | ||||
Balance as of beginning of period | [1] | $ 635,204 | $ 636,039 | $ 636,039 |
Goodwill acquired during the year | 0 | 0 | ||
Goodwill acquired during the year/other | (835) | |||
Balance as of end of period | [1] | 635,204 | 636,039 | 635,204 |
Natural gas distribution [Member] | ||||
Goodwill [Roll Forward] | ||||
Balance as of beginning of period | 345,736 | 345,736 | 345,736 | |
Goodwill acquired during the year | 0 | 0 | ||
Goodwill acquired during the year/other | 0 | |||
Balance as of end of period | 345,736 | 345,736 | 345,736 | |
Pipeline and energy services [Member] | ||||
Goodwill [Roll Forward] | ||||
Balance as of beginning of period | [1] | 9,737 | 9,737 | 9,737 |
Goodwill acquired during the year | 0 | 0 | ||
Goodwill acquired during the year/other | 0 | |||
Balance as of end of period | [1] | 9,737 | 9,737 | 9,737 |
Goodwill, impaired, accumulated impairment loss | 12,300 | 12,300 | 12,300 | |
Construction materials and contracting [Member] | ||||
Goodwill [Roll Forward] | ||||
Balance as of beginning of period | 176,290 | 176,290 | 176,290 | |
Goodwill acquired during the year | 0 | 0 | ||
Goodwill acquired during the year/other | 0 | |||
Balance as of end of period | 176,290 | 176,290 | 176,290 | |
Construction services [Member] | ||||
Goodwill [Roll Forward] | ||||
Balance as of beginning of period | 103,441 | 104,276 | 104,276 | |
Goodwill acquired during the year | 0 | 0 | ||
Goodwill acquired during the year/other | (835) | |||
Balance as of end of period | $ 103,441 | $ 104,276 | $ 103,441 | |
[1] | Balance is presented net of accumulated impairment of $12.3Â million at the pipeline and energy services segment, which occurred in prior periods. |
Other intangible assets (Detail
Other intangible assets (Details 2) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net (excluding goodwill) | $ 8,506,000 | $ 11,266,000 | $ 8,506,000 | $ 11,266,000 | $ 9,840,000 |
Amortization of intangible assets | 700,000 | 1,000,000 | 1,400,000 | 1,800,000 | |
Estimated amortization expense for amortizable intangible assets [Abstract] | |||||
2,015 | 2,500,000 | 2,500,000 | |||
2,016 | 2,200,000 | 2,200,000 | |||
2,017 | 1,900,000 | 1,900,000 | |||
2,018 | 1,000,000 | 1,000,000 | |||
2,019 | 900,000 | 900,000 | |||
Thereafter | 1,400,000 | 1,400,000 | |||
Customer relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 20,975,000 | 21,310,000 | 20,975,000 | 21,310,000 | 21,310,000 |
Intangible assets, accumulated amortization | (16,065,000) | (14,734,000) | (16,065,000) | (14,734,000) | (15,556,000) |
Intangible assets, net (excluding goodwill) | 4,910,000 | 6,576,000 | 4,910,000 | 6,576,000 | 5,754,000 |
Noncompete agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 4,409,000 | 5,080,000 | 4,409,000 | 5,080,000 | 5,080,000 |
Intangible assets, accumulated amortization | (3,581,000) | (3,936,000) | (3,581,000) | (3,936,000) | (4,098,000) |
Intangible assets, net (excluding goodwill) | 828,000 | 1,144,000 | 828,000 | 1,144,000 | 982,000 |
Other intangible assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, gross | 8,300,000 | 10,921,000 | 8,300,000 | 10,921,000 | 10,921,000 |
Intangible assets, accumulated amortization | (5,532,000) | (7,375,000) | (5,532,000) | (7,375,000) | (7,817,000) |
Intangible assets, net (excluding goodwill) | $ 2,768,000 | $ 3,546,000 | $ 2,768,000 | $ 3,546,000 | $ 3,104,000 |
Derivative instruments (Details
Derivative instruments (Details) MMBTU in Millions | 6 Months Ended | ||
Jun. 30, 2015USD ($)bblMMBTU | Dec. 31, 2014USD ($)bblMMBTU | Jun. 30, 2014USD ($)bblMMBTU | |
Derivative instruments [Line Items] | |||
Derivatives with credit-risk-related contingent feature in net liability position, aggregate fair value | $ 3,500,000 | $ 0 | $ 17,400,000 |
Assets needed for immediate settlement aggregate fair value for cash flow hedging instruments | 3,500,000 | $ 17,400,000 | |
Cash flow hedge gain (loss) to be reclassified within twelve months from AOCI into earnings | $ (400,000) | ||
Oil swap and\or collar [Member] | |||
Derivative instruments [Line Items] | |||
Derivative, nonmonetary notional amount | bbl | 1,100,000 | 270,000 | 2,500,000 |
Natural gas swap and\or collar [Member] | |||
Derivative instruments [Line Items] | |||
Derivative, nonmonetary notional amount | MMBTU | 1.8 | 5 | 11 |
Gains and losses on derivative
Gains and losses on derivative instruments (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative instruments [Line Items] | ||||
Amount of (gain) loss reclassified from accumulated other comprehensive loss into discontinued operations (effective portion), net of tax | $ 0 | $ (87) | $ 0 | $ 158 |
Amount of (gain) loss reclassified from accumulated other comprehensive loss (effective portion), net of tax | 100 | 100 | 199 | 199 |
Designated as Hedging Instrument [Member] | Commodity derivatives designated as cash flow hedges [Member] | ||||
Derivative instruments [Line Items] | ||||
Amount of (gain) loss reclassified from accumulated other comprehensive loss into discontinued operations (effective portion), net of tax | 0 | (87) | 0 | 158 |
Designated as Hedging Instrument [Member] | Interest rate derivatives designated as cash flow hedges [Member] | ||||
Derivative instruments [Line Items] | ||||
Amount of (gain) loss reclassified from accumulated other comprehensive loss (effective portion), net of tax | 100 | 100 | 199 | 199 |
Not designated as hedging instrument [Member] | Commodity derivatives [Member] | ||||
Derivative instruments [Line Items] | ||||
Amount of gain (loss) recognized in discontinued operations, before tax | $ (8,101) | $ (5,196) | $ (19,309) | $ (11,908) |
Derivative instruments (Detai52
Derivative instruments (Details 3) - Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Derivatives, Fair Value [Line Items] | |||
Derivative asset, fair value, gross asset | $ 2,537 | $ 18,335 | $ 260 |
Derivative liability fair value gross liability | 3,511 | 0 | 17,449 |
Commodity contract [Member] | Not designated as hedging instrument [Member] | Disposal group current assets held for sale [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Other derivatives not designated as hedging instruments assets at fair value | 2,537 | 18,335 | 129 |
Commodity contract [Member] | Not designated as hedging instrument [Member] | Disposal group noncurrent assets held for sale [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Other derivatives not designated as hedging instruments assets at fair value | 0 | 0 | 131 |
Commodity contract [Member] | Not designated as hedging instrument [Member] | Disposal group current liabilities held for sale [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Other derivatives not designated as hedging instruments liabilities at fair value | $ 3,511 | $ 0 | $ 17,449 |
Subject to master netting agree
Subject to master netting agreements (Details 4) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Commodity derivative instruments assets [Member] | |||
Derivative instruments [Line Items] | |||
Derivative asset, fair value, gross asset | $ 2,537 | $ 18,335 | $ 260 |
Gross amount not offset | (2,537) | 0 | (260) |
Derivative asset, fair value, net | 0 | 18,335 | 0 |
Total assets [Member] | |||
Derivative instruments [Line Items] | |||
Derivative asset, fair value, gross asset | 2,537 | 18,335 | 260 |
Gross amount not offset | (2,537) | 0 | (260) |
Derivative asset, fair value, net | 0 | $ 18,335 | 0 |
Commodity derivatives - liabilities [Member] | |||
Derivative instruments [Line Items] | |||
Derivative liability fair value gross liability | 3,511 | 17,449 | |
Gross amount not offset | (2,537) | (260) | |
Derivative liability, fair value, net | 974 | 17,189 | |
Total liabilities [Member] | |||
Derivative instruments [Line Items] | |||
Derivative liability fair value gross liability | 3,511 | 17,449 | |
Gross amount not offset | (2,537) | (260) | |
Derivative liability, fair value, net | $ 974 | $ 17,189 |
Available-for-sale securities (
Available-for-sale securities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Available-for-sale securities [Line Items] | |||||
Investments used to satisfy obligations under nonqualified benefit plans | $ 68,200,000 | $ 64,400,000 | $ 68,200,000 | $ 64,400,000 | $ 65,800,000 |
Net unrealized gain (loss) of investments used to satify obligations under nonqualified benefit plans | 400,000 | 1,100,000 | 2,400,000 | 2,000,000 | |
Available-for-sale securities [Abstract] | |||||
Cost | 10,399,000 | 10,055,000 | 10,399,000 | 10,055,000 | 10,168,000 |
Gross unrealized gains | 51,000 | 121,000 | 51,000 | 121,000 | 60,000 |
Gross unrealized losses | (28,000) | (5,000) | (28,000) | (5,000) | (37,000) |
Fair value | 10,422,000 | 10,171,000 | 10,422,000 | 10,171,000 | 10,191,000 |
Mortgage backed securities [Member] | |||||
Available-for-sale securities [Abstract] | |||||
Cost | 8,072,000 | 7,989,000 | 8,072,000 | 7,989,000 | 6,594,000 |
Gross unrealized gains | 29,000 | 91,000 | 29,000 | 91,000 | 60,000 |
Gross unrealized losses | (28,000) | (5,000) | (28,000) | (5,000) | (18,000) |
Fair value | 8,073,000 | 8,075,000 | 8,073,000 | 8,075,000 | 6,636,000 |
US Treasury securities [Member] | |||||
Available-for-sale securities [Abstract] | |||||
Cost | 2,327,000 | 2,066,000 | 2,327,000 | 2,066,000 | 3,574,000 |
Gross unrealized gains | 22,000 | 30,000 | 22,000 | 30,000 | 0 |
Gross unrealized losses | 0 | 0 | 0 | 0 | (19,000) |
Fair value | $ 2,349,000 | $ 2,096,000 | $ 2,349,000 | $ 2,096,000 | $ 3,555,000 |
Fair value measurements (Detail
Fair value measurements (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |||
Concentration risks, percentage [Abstract] | ||||||
Percentage investment in common stock of mid-cap companies | 20.00% | 20.00% | 21.00% | |||
Percentage investment in common stock of small-cap companies | 18.00% | 18.00% | 18.00% | |||
Percentage investment in common stock of large-cap companies | 28.00% | 29.00% | 29.00% | |||
Percentage in fixed-income and other investments | 32.00% | 32.00% | 31.00% | |||
Percentage Investment in Target Date Investments | 1.00% | |||||
Percentage investment in cash and cash equivalents | 1.00% | 1.00% | 1.00% | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,100 | |||||
Fair value, measurements, recurring [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 94,967 | $ 92,160 | $ 90,651 | |||
Liabilities, fair value disclosure | 538 | |||||
Fair value, measurements, recurring [Member] | Renewable Identification Number Obligations [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Liabilities, fair value disclosure | 538 | |||||
Fair value, measurements, recurring [Member] | Money market funds [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 16,358 | 16,138 | 16,031 | |||
Fair value, measurements, recurring [Member] | Insurance contract [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 68,187 | [1] | 65,831 | [2] | 64,449 | [3] |
Fair value, measurements, recurring [Member] | Mortgage backed securities [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 8,073 | 6,636 | 8,075 | |||
Fair value, measurements, recurring [Member] | US Treasury securities [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 2,349 | 3,555 | 2,096 | |||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||
Liabilities, fair value disclosure | 0 | |||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Renewable Identification Number Obligations [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Liabilities, fair value disclosure | 0 | |||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Money market funds [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Insurance contract [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 0 | [1] | 0 | [2] | 0 | [3] |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | Mortgage backed securities [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 1 [Member] | US Treasury securities [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 94,967 | 92,160 | 90,651 | |||
Liabilities, fair value disclosure | 538 | |||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Renewable Identification Number Obligations [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Liabilities, fair value disclosure | 538 | |||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Money market funds [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 16,358 | 16,138 | 16,031 | |||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Insurance contract [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 68,187 | [1] | 65,831 | [2] | 64,449 | [3] |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | Mortgage backed securities [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 8,073 | 6,636 | 8,075 | |||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 2 [Member] | US Treasury securities [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 2,349 | 3,555 | 2,096 | |||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||
Liabilities, fair value disclosure | 0 | |||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | Renewable Identification Number Obligations [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Liabilities, fair value disclosure | 0 | |||||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | Money market funds [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | Insurance contract [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 0 | [1] | 0 | [2] | 0 | [3] |
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | Mortgage backed securities [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | 0 | 0 | 0 | |||
Fair value, measurements, recurring [Member] | Fair value, inputs, level 3 [Member] | US Treasury securities [Member] | ||||||
Fair value measurements [Line Items] | ||||||
Assets, fair value disclosure | $ 0 | $ 0 | $ 0 | |||
[1] | The insurance contract invests approximately 20Â percent in common stock of mid-cap companies, 18Â percent in common stock of small-cap companies, 28Â percent in common stock of large-cap companies, 32Â percent in fixed-income investments, 1Â percent in target date investments and 1Â percent in cash equivalents. | |||||
[2] | The insurance contract invests approximately 20Â percent in common stock of mid-cap companies, 18Â percent in common stock of small-cap companies, 29Â percent in common stock of large-cap companies, 32Â percent in fixed-income investments and 1Â percent in cash equivalents. | |||||
[3] | The insurance contract invests approximately 21Â percent in common stock of mid-cap companies, 18Â percent in common stock of small-cap companies, 29Â percent in common stock of large-cap companies, 31Â percent in fixed-income investments and 1Â percent in cash equivalents. |
Fair value measurements (Deta56
Fair value measurements (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Carrying amount [Member] | |||
Fair value, balance sheet grouping [Line Items] | |||
Long-term debt | $ 2,376,802 | $ 2,093,830 | $ 2,185,917 |
Fair value [Member] | |||
Fair value, balance sheet grouping [Line Items] | |||
Long-term debt, fair value | $ 2,468,204 | $ 2,238,548 | $ 2,282,174 |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Increase Decrease In Stockholders Equity Roll Forward | ||||
Total stockholders' equity | $ 3,134,041 | |||
Noncontrolling interest | 115,743 | |||
Total equity | 3,249,784 | $ 2,855,902 | ||
Net loss attributable to noncontrolling interest | $ (7,754) | $ (779) | (11,282) | (1,302) |
Net income (loss) | (237,358) | 53,327 | (546,803) | 109,466 |
Other comprehensive income | 678 | 340 | 1,857 | 1,007 |
Dividends declared on preferred stocks | (342) | (342) | ||
Dividends declared on common stock | (71,078) | (68,025) | ||
Stock-based compensation | 1,107 | 2,796 | ||
Issuance of common stock upon vesting of performance shares, net of shares used for tax withholdings | (5,564) | |||
Excess tax benefit (net tax deficit) on stock-based compensation | (1,632) | 4,729 | ||
Issuance of common stock | 14,499 | 131,973 | ||
Contribution from noncontrolling interest | 39,500 | 32,500 | ||
Total stockholders' equity | 2,542,931 | 3,000,506 | 2,542,931 | 3,000,506 |
Noncontrolling interest | 143,961 | 63,936 | 143,961 | 63,936 |
Total equity | 2,686,892 | 3,064,442 | 2,686,892 | 3,064,442 |
Total stockholders’ equity [Member] | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Total stockholders' equity | 3,134,041 | 2,823,164 | ||
Net income (loss) attributable to parent | (535,521) | 110,768 | ||
Other comprehensive income | 1,857 | 1,007 | ||
Dividends declared on preferred stocks | (342) | (342) | ||
Dividends declared on common stock | (71,078) | (68,025) | ||
Stock-based compensation | 1,107 | 2,796 | ||
Issuance of common stock upon vesting of performance shares, net of shares used for tax withholdings | (5,564) | |||
Excess tax benefit (net tax deficit) on stock-based compensation | (1,632) | 4,729 | ||
Issuance of common stock | 14,499 | 131,973 | ||
Contribution from noncontrolling interest | 0 | 0 | ||
Total stockholders' equity | 2,542,931 | 3,000,506 | 2,542,931 | 3,000,506 |
Noncontrolling interest [Member] | ||||
Increase Decrease In Stockholders Equity Roll Forward | ||||
Noncontrolling interest | 115,743 | 32,738 | ||
Net loss attributable to noncontrolling interest | (11,282) | (1,302) | ||
Other comprehensive income | 0 | 0 | ||
Dividends declared on preferred stocks | 0 | 0 | ||
Dividends declared on common stock | 0 | 0 | ||
Stock-based compensation | 0 | 0 | ||
Issuance of common stock upon vesting of performance shares, net of shares used for tax withholdings | 0 | |||
Excess tax benefit (net tax deficit) on stock-based compensation | 0 | 0 | ||
Issuance of common stock | 0 | 0 | ||
Contribution from noncontrolling interest | 39,500 | 32,500 | ||
Noncontrolling interest | $ 143,961 | $ 63,936 | $ 143,961 | $ 63,936 |
Business segment data (Details)
Business segment data (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 986,215 | $ 952,564 | $ 1,848,564 | $ 1,853,326 |
Intersegment operating revenues | 0 | 0 | 0 | 0 |
Earnings (loss) on common stock | (229,775) | 53,935 | (535,863) | 110,426 |
Earnings (loss) on common stock before income (loss) from discontinued operations | 21,640 | 30,054 | 40,157 | 61,433 |
Income (loss) from discontinued operations, net of tax | (251,415) | 23,881 | (576,020) | 48,993 |
Regulated operation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 215,472 | 226,472 | 621,762 | 678,775 |
Intersegment operating revenues | 6,564 | 6,937 | 27,625 | 24,210 |
Earnings (loss) on common stock before income (loss) from discontinued operations | 4,864 | 6,943 | 39,997 | 48,236 |
Unregulated operation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 770,743 | 726,092 | 1,226,802 | 1,174,551 |
Intersegment operating revenues | 6,650 | 17,300 | 21,270 | 26,972 |
Earnings (loss) on common stock before income (loss) from discontinued operations | 17,460 | 24,065 | 1,835 | 14,624 |
Electric [Member] | Regulated operation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 64,265 | 65,149 | 136,041 | 138,796 |
Intersegment operating revenues | 0 | 0 | 0 | 0 |
Earnings (loss) on common stock before income (loss) from discontinued operations | 5,910 | 7,823 | 14,237 | 18,856 |
Natural gas distribution [Member] | Regulated operation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 132,965 | 146,077 | 463,538 | 520,311 |
Intersegment operating revenues | 0 | 0 | 0 | 0 |
Earnings (loss) on common stock before income (loss) from discontinued operations | (5,375) | (4,494) | 16,075 | 22,768 |
Pipeline and energy services [Member] | Regulated operation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 18,242 | 15,246 | 22,183 | 19,668 |
Intersegment operating revenues | 6,564 | 6,937 | 27,625 | 24,210 |
Earnings (loss) on common stock before income (loss) from discontinued operations | 4,329 | 3,614 | 9,685 | 6,612 |
Pipeline and energy services [Member] | Unregulated operation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 63,131 | 16,044 | 77,834 | 29,859 |
Intersegment operating revenues | 110 | 177 | 316 | 371 |
Earnings (loss) on common stock before income (loss) from discontinued operations | (5,933) | 2,175 | (7,271) | 3,526 |
Construction materials and contracting [Member] | Unregulated operation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 495,640 | 434,452 | 701,298 | 598,875 |
Intersegment operating revenues | 1,257 | 8,106 | 2,205 | 12,123 |
Earnings (loss) on common stock before income (loss) from discontinued operations | 20,136 | 10,554 | 5,501 | (13,019) |
Construction services [Member] | Unregulated operation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 211,515 | 275,109 | 446,918 | 545,002 |
Intersegment operating revenues | 3,491 | 7,273 | 15,186 | 11,010 |
Earnings (loss) on common stock before income (loss) from discontinued operations | 7,003 | 14,307 | 11,763 | 30,875 |
Other [Member] | Unregulated operation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 457 | 487 | 752 | 815 |
Intersegment operating revenues | 1,792 | 1,744 | 3,563 | 3,468 |
Earnings (loss) on common stock before income (loss) from discontinued operations | (3,746) | (2,971) | (8,158) | (6,758) |
Intersegment eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Intersegment operating revenues | (13,214) | (24,237) | (48,895) | (51,182) |
Earnings (loss) on common stock before income (loss) from discontinued operations | $ (684) | $ (954) | $ (1,675) | $ (1,427) |
Employee benefit plans (Details
Employee benefit plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension benefits [Member] | ||||
Defined benefit plan disclosure, net periodic benefit cost [Line Items] | ||||
Service cost | $ 46 | $ 31 | $ 86 | $ 64 |
Interest cost | 4,206 | 4,405 | 8,570 | 8,845 |
Expected return on assets | (5,753) | (5,484) | (11,126) | (10,609) |
Amortization of prior service cost (credit) | 18 | 18 | 36 | 36 |
Amortization of net actuarial loss | 1,813 | 1,121 | 3,548 | 2,434 |
Curtailment loss | 258 | 0 | 258 | 0 |
Net periodic benefit cost (credit), including amount capitalized | 588 | 91 | 1,372 | 770 |
Less amount capitalized | 53 | 73 | 129 | 168 |
Net periodic benefit cost | 535 | 18 | 1,243 | 602 |
Other postretirement benefits [Member] | ||||
Defined benefit plan disclosure, net periodic benefit cost [Line Items] | ||||
Service cost | 425 | 380 | 908 | 759 |
Interest cost | 889 | 924 | 1,803 | 1,782 |
Expected return on assets | (1,223) | (1,242) | (2,398) | (2,309) |
Amortization of prior service cost (credit) | (343) | (348) | (685) | (696) |
Amortization of net actuarial loss | 553 | 6 | 1,014 | 324 |
Curtailment loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost (credit), including amount capitalized | 301 | (280) | 642 | (140) |
Less amount capitalized | 33 | (19) | 62 | 10 |
Net periodic benefit cost | 268 | (261) | 580 | (150) |
Supplemental employee retirement plans [Member] | ||||
Defined benefit plan disclosure, net periodic benefit cost [Line Items] | ||||
Net periodic benefit cost | $ 1,900 | $ 1,600 | $ 3,600 | $ 3,300 |
Employee benefit plans Multiemp
Employee benefit plans Multiemployer Plan (Details 2) - Multiemployer plans, pension [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2015 | Jun. 30, 2015 | |
Multiemployer Plans [Line Items] | ||
Additional Multiemployer Plan Withdrawal Obligation | $ 2.4 | |
Additional Estimated Multiemployer Plan Withdrawal Obligation After Tax | $ 1.5 | |
Multiemployer plans, withdrawal obligation | $ 16.4 | |
Estimated multiemployer plan, withdrawal obligation, after tax | $ 9.8 |
Regulatory matters and revenu61
Regulatory matters and revenues subject to refund (Details) - USD ($) | Jun. 30, 2015 | Jun. 25, 2015 | Jun. 24, 2015 | Apr. 16, 2015 | Apr. 10, 2015 | Mar. 31, 2015 | Mar. 18, 2015 | Mar. 11, 2015 | Feb. 06, 2015 | Feb. 03, 2015 | Oct. 03, 2014 | Aug. 11, 2014 |
MTPSC [Member] | ||||||||||||
Regulatory matters and revenues subject to refund [Line Items] | ||||||||||||
Rate increase requested | $ 11,800,000 | $ 3,000,000 | ||||||||||
Percent above current rates requested | 21.10% | 3.60% | ||||||||||
Amount of requested interim increase in annual rates | $ 11,000,000 | |||||||||||
Interim rate increase (decrease), amount | $ 2,000,000 | |||||||||||
Interim rate increase (decrease), percent | 2.30% | |||||||||||
Settlement stipulation | $ 2,500,000 | |||||||||||
Settlement stipulation percent | 3.00% | |||||||||||
SDPUC-Electric [Member] | ||||||||||||
Regulatory matters and revenues subject to refund [Line Items] | ||||||||||||
Rate increase requested | $ 2,700,000 | |||||||||||
Percent above current rates requested | 19.20% | |||||||||||
SDPUC-Natural Gas [Member] | ||||||||||||
Regulatory matters and revenues subject to refund [Line Items] | ||||||||||||
Rate increase requested | $ 1,500,000 | |||||||||||
Percent above current rates requested | 3.10% | |||||||||||
WYPSC [Member] | ||||||||||||
Regulatory matters and revenues subject to refund [Line Items] | ||||||||||||
Rate increase requested | $ 788,000 | |||||||||||
Percent above current rates requested | 4.10% | |||||||||||
Settlement stipulation | $ 501,000 | |||||||||||
Settlement stipulation percent | 2.60% | |||||||||||
NDPSC [Member] | ||||||||||||
Regulatory matters and revenues subject to refund [Line Items] | ||||||||||||
Rate increase requested | $ 4,300,000 | |||||||||||
Percent above current rates requested | 3.40% | |||||||||||
Interim rate increase (decrease), amount | $ 4,300,000 | |||||||||||
Interim rate increase (decrease), percent | 3.40% | |||||||||||
OPUC [Member] | ||||||||||||
Regulatory matters and revenues subject to refund [Line Items] | ||||||||||||
Rate increase requested | $ 3,600,000 | |||||||||||
Percent above current rates requested | 5.10% | |||||||||||
NDPSC-Environmental [Member] | ||||||||||||
Regulatory matters and revenues subject to refund [Line Items] | ||||||||||||
Rate increase requested | $ 8,100,000 | |||||||||||
WUTC [Member] | ||||||||||||
Regulatory matters and revenues subject to refund [Line Items] | ||||||||||||
Rate increase requested | $ 3,900,000 | |||||||||||
Percent above current rates requested | 1.60% |
Litigation (Details)
Litigation (Details) - USD ($) | Jun. 30, 2015 | Mar. 12, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Aug. 31, 2011 | Oct. 31, 2010 |
Loss Contingencies [Line Items] | ||||||
Potential liabilities related to litigation and environmental matters | $ 20,700,000 | $ 27,600,000 | $ 32,100,000 | |||
Natural gas gathering operations [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Arbitration award | $ 26,600,000 | |||||
Litigation related to construction materials [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Loss contingency, estimate of possible loss | $ 3,700,000 | |||||
Additional amount per day of potential penalties | $ 5,000 | |||||
Litigation related to construction services [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Damage Repair Estimate | $ 26,000,000 |
Environmental matters (Details
Environmental matters (Details 2) - Jun. 30, 2015 - USD ($) | Total |
Portland Harbor Site [Member] | |
Site Contingency [Line Items] | |
Environmental matters investigative costs | $ 70,000,000 |
Eugene, OR Manufactured Gas Plant Site [Member] | |
Site Contingency [Line Items] | |
Site contingency, low estimate, loss exposure | 500,000 |
Site contingency, high estimate, loss exposure | $ 11,000,000 |
Estimated proportional share of cleanup liability | 50.00% |
Accrual for environmental loss contingencies | $ 1,700,000 |
Bremerton, WA Manufactured Gas Plant Site [Member] | |
Site Contingency [Line Items] | |
Site contingency, low estimate, loss exposure | 340,000 |
Site contingency, high estimate, loss exposure | 6,400,000 |
Accrual for environmental loss contingencies | 12,300,000 |
Bellingham, WA Manufactured Gas Plant Site [Member] | |
Site Contingency [Line Items] | |
Site contingency, loss exposure not accrued, best estimate | $ 8,000,000 |
Guarantees (Details 3)
Guarantees (Details 3) | Jun. 30, 2015USD ($) |
Guarantor Obligations [Line Items] | |
Fixed maximum amount of derivative guarantee | $ 2,800,000 |
Amount of hedging obligations guaranteed reflected on balance sheet | 2,800,000 |
Guarantor obligations, maximum exposure, undiscounted | 134,700,000 |
Fixed maximum amounts guaranteed by year 2015 | 43,600,000 |
Fixed maximum amounts guaranteed by year 2016 | 14,500,000 |
Fixed maximum amounts guaranteed by year 2017 | 1,200,000 |
Fixed maximum amounts guaranteed by year 2018 | 500,000 |
Fixed maximum amounts guaranteed by year 2019 | 57,400,000 |
Fixed maximum amounts guaranteed by year expires after certain number of days after written notice | 13,500,000 |
No scheduled maturity date | 4,000,000 |
Amount outstanding under guarantees that is reflected on balance sheet | 200,000 |
Letters of credit | 62,500,000 |
Letters of credit set to expire - 2015 | 33,700,000 |
Letters of credit set to expire - 2016 | 28,800,000 |
Outstanding letters of credit | 100,000 |
Natural gas transportation and storage agreement fixed maximum amount of performance guarantee of a related party | 4,000,000 |
Amount outstanding by a related party under the guarantee | 1,200,000 |
Amount of surety bonds outstanding | $ 720,900,000 |
Commitment and contingencies va
Commitment and contingencies variable interest entities (Details 4) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 01, 2014 | Jun. 30, 2014 |
Dakota Prairie Refining, LLC [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Percent of ownership | 50.00% | |||
Total project costs | $ 300,000,000 | |||
Portion of capital commitment | 150,000,000 | |||
Partner portion of capital commitment | 75,000,000 | |||
Excess capital commitments | 300,000,000 | |||
Term loan for project debt financing | 75,000,000 | |||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | |||
Dakota Prairie Refining, LLC [Member] | Cash and cash equivalents [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, assets | 845,000 | $ 21,376,000 | $ 32,283,000 | |
Dakota Prairie Refining, LLC [Member] | Accounts receivable [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, assets | 29,639,000 | 2,759,000 | 0 | |
Dakota Prairie Refining, LLC [Member] | Inventories [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, assets | 24,166,000 | 5,311,000 | 0 | |
Dakota Prairie Refining, LLC [Member] | Other current assets [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, assets | 7,887,000 | 4,019,000 | 2,136,000 | |
Dakota Prairie Refining, LLC [Member] | Total current assets [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, assets | 62,537,000 | 33,465,000 | 34,419,000 | |
Dakota Prairie Refining, LLC [Member] | Net property, plant and equipment [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, assets | 431,476,000 | 398,984,000 | 254,079,000 | |
Dakota Prairie Refining, LLC [Member] | Other [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, assets | 5,729,000 | 3,400,000 | 0 | |
Dakota Prairie Refining, LLC [Member] | Total deferred charges and other assets [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, assets | 5,729,000 | 3,400,000 | 0 | |
Dakota Prairie Refining, LLC [Member] | Total assets [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, assets | 499,742,000 | 435,849,000 | 288,498,000 | |
Dakota Prairie Refining, LLC [Member] | Short-term borrowings [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, liabilities | 26,000,000 | 0 | 0 | |
Dakota Prairie Refining, LLC [Member] | Long-term debt due within one year [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, liabilities | 3,000,000 | 3,000,000 | 3,000,000 | |
Dakota Prairie Refining, LLC [Member] | Accounts payable [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, liabilities | 38,339,000 | 55,089,000 | 28,150,000 | |
Dakota Prairie Refining, LLC [Member] | Taxes payable [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, liabilities | 1,601,000 | 648,000 | 225,000 | |
Dakota Prairie Refining, LLC [Member] | Accrued compensation [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, liabilities | 649,000 | 727,000 | 256,000 | |
Dakota Prairie Refining, LLC [Member] | Other accrued liabilities [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, liabilities | 932,000 | 899,000 | 494,000 | |
Dakota Prairie Refining, LLC [Member] | Total current liabilities [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, liabilities | 70,521,000 | 60,363,000 | 32,125,000 | |
Dakota Prairie Refining, LLC [Member] | Long-term debt [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, liabilities | 66,000,000 | 69,000,000 | 69,000,000 | |
Dakota Prairie Refining, LLC [Member] | Total liabilities [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Limited liability entity, consolidated, carrying amount, liabilities | 136,521,000 | $ 129,363,000 | $ 101,125,000 | |
Fuel contract [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Variable interest entity, reporting entity involvement, maximum loss exposure, amount | 26,100,000 | |||
WBI Holdings [Member] | Dakota Prairie Refining, LLC [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Cumulative capital contributions | 234,500,000 | |||
Percent of credit agreement guaranteed | 50.00% | |||
Noncontrolling interest [Member] | Dakota Prairie Refining, LLC [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Cumulative capital contributions | $ 159,500,000 | |||
Percent of credit agreement guaranteed | 50.00% |
Subsequent event (Details)
Subsequent event (Details) - Jul. 21, 2015 - Parent Company [Member] - Subsequent Event [Member] - USD ($) $ in Millions | Total |
Subsequent Event [Line Items] | |
Term loan agreement | $ 75 |
Ratio of total debt to total capitalization as specified in debt convenants. | 65.00% |