Comprehensive Income

6 Months Ended

Jun. 30, 2011

Comprehensive Income

Comprehensive Income

Note 4 – Comprehensive Income

Comprehensive income is the sum of net income attributable to QEP as reported in the Consolidated Statements of Income and other comprehensive income. Other comprehensive income includes certain items that are recorded directly to Equity and classified as accumulated other comprehensive income (AOCI). One component of other comprehensive income is changes in the market value of commodity-based derivative instruments that qualify for hedge accounting. Income or loss associated with commodity-based derivative instruments that qualify for hedge accounting is realized when the gas, oil or NGL underlying the derivative instrument is sold. Comprehensive income also includes changes in the underfunded portion of the defined benefit pension plans and other post retirement plans and changes in deferred income taxes on such amounts. These transactions are not the culmination of the earnings process but result from adjusting historical balances to fair value. Comprehensive income attributable to QEP is shown below:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
	(in millions)
Net income	$	93.5		$	91.5		$	167.3		$	191.4
Other comprehensive income (loss)
Net unrealized income (loss) on derivatives		(4.0	)		(65.0	)		(80.1	)		234.2
Minimum pension liability adjustment		2.8			(38.7	)		2.8			(38.7	)
Other		—			(0.1	)		—			—
Income taxes		0.4			38.6			28.7			(72.7	)
Net other comprehensive income (loss)		(0.8	)		(65.2	)		(48.6	)		122.8
Comprehensive income		92.7			26.3			118.7			314.2
Comprehensive income attributable to noncontrolling interest		(0.7	)		(0.7	)		(1.3	)		(1.3	)
Comprehensive income attributable to QEP	$	92.0		$	25.6		$	117.4		$	312.9

The components of AOCI, net of income taxes, shown on the Condensed Consolidated Balance Sheets are as follows:

	June 30, 2011			December 31, 2010			Change
	(in millions)
Net unrealized gain on derivatives	$	173.5		$	223.8		$	(50.3	)
Pension and postretirement liabilities		(27.8	)		(29.5	)		1.7
Accumulated other comprehensive income	$	145.7		$	194.3		$	(48.6	)