Quarterly Financial Data

12 Months Ended

Dec. 31, 2012

Quarterly Financial Data [Abstract]

Quarterly Financial Data

Quarterly Financial Data (Unaudited)

Quarterly financial data does not always reveal the trend of NiSource’s business operations due to nonrecurring items and seasonal weather patterns, which affect earnings, and related components of net revenues and operating income.

(in millions, except per share data)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
2012
Gross revenues	$	1,648.9	$	1,039.1	$	962.9	$	1,410.3
Operating Income	397.7		205.3		133.2		306.5
Income from Continuing Operations	192.5		68.5		17.6		132.0
Results from Discontinued Operations - net of taxes	0.9		0.9		1.7		2.0
Net Income	193.4		69.4		19.3		134.0
Basic Earnings Per Share
Continuing Operations	0.68		0.25		0.06		0.42
Discontinued Operations	—		—		—		0.01
Basic Earnings Per Share	$	0.68	$	0.25	$	0.06	$	0.43
Diluted Earnings Per Share
Continuing Operations	0.66		0.23		0.06		0.42
Discontinued Operations	—		—		—		0.01
Diluted Earnings Per Share	$	0.66	$	0.23	$	0.06	$	0.43
2011
Gross revenues	$	2,220.8	$	1,217.5	$	1,057.3	$	1,479.1
Operating Income	403.6		161.6		142.7		182.2
Income from Continuing Operations	207.4		38.4		33.4		15.6
Results from Discontinued Operations - net of taxes	2.1		1.8		1.3		(0.9		)
Net Income	209.5		40.2		34.7		14.7
Basic Earnings Per Share
Continuing Operations	0.75		0.13		0.12		0.05
Discontinued Operations	—		0.01		—		—
Basic Earnings Per Share	$	0.75	$	0.14	$	0.12	$	0.05
Diluted Earnings Per Share
Continuing Operations	0.73		0.13		0.12		0.04
Discontinued Operations	—		0.01		—		—
Diluted Earnings Per Share	$	0.73	$	0.14	$	0.12	$	0.04

• On February 14, 2012, Columbia of Ohio held its first standard choice offer auction which resulted in a retail price adjustment of $1.53 per Mcf. On February 14, 2012, the PUCO issued an entry that approved the results of the auction with the new retail price adjustment level effective April 1, 2012. As a result of the implementation of the standard choice offer, Columbia of Ohio reports lower gross revenues and lower cost of sales. There is no impact on net revenues.

• On September 4, 2012, Columbia Transmission filed a customer settlement that was approved by the FERC on January 24, 2013 in support of its comprehensive pipeline modernization program. As a result of this settlement Columbia Transmission's gross revenues decreased $81.7 million, partially offset by a decrease in depreciation costs of $33.4 million.

• On November 14, 2011, NiSource Finance commenced a cash tender offer for up to $250.0 million aggregate principal amount of its outstanding 10.75% notes due 2016 and 6.15% notes due 2013. A condition of the offering was that all validly tendered 2016 notes would be accepted for purchase before any 2013 notes were accepted. On December 13, 2011, NiSource Finance announced that approximately $125.3 million of the aggregate principal amount of its outstanding 10.75% notes due 2016 were validly tendered and accepted for purchase. In addition, approximately $228.7 million of the aggregate principal amount of outstanding 6.15% notes due 2013 were validly tendered, of which $124.7 million were accepted for purchase. In accordance with the provisions of ASC 470, Debt, NiSource Finance determined the debt issued on November 23, 2011, was substantially different from the tendered notes, and therefore the transaction qualified as a debt extinguishment. NiSource Finance recorded a $53.9 million loss on early extinguishment of long-term debt, primarily attributable to early redemption premiums and unamortized discounts and fees.

• During the fourth quarter of 2011, NiSource reviewed its current estimates for future environmental remediation costs related to the Company’s MGP sites. Following the review, NiSource revised its estimates based on expected remediation activities and experience with similar facilities and recorded $35.5 million of expense at subsidiaries for which environmental expense is not probable of recovery from customers.

• During the fourth quarter of 2011, NiSource recorded a reserve of $22.6 million on certain assets related to the wind down of the unregulated natural gas marketing business.