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Summary of Accounting Policies
9 Months Ended
Sep. 30, 2013
Accounting Policies [Abstract]  
Summary of Accounting Policies
Summary of Accounting Policies
Basis of Presentation
References in this document to the “Company,” “Chesapeake,” “we,” “us” and “our” are intended to mean Chesapeake Utilities Corporation, its divisions and/or its subsidiaries, as appropriate in the context of the disclosure.
The accompanying unaudited condensed consolidated financial statements have been prepared in compliance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States of America (“GAAP”). In accordance with these rules and regulations, certain information and disclosures normally required for audited financial statements have been condensed or omitted. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto, included in our latest Annual Report on Form 10-K for the year ended December 31, 2012. In the opinion of management, these financial statements reflect normal recurring adjustments that are necessary for a fair presentation of our results of operations, financial position and cash flows for the interim periods presented.
Due to the seasonality of our business, results for interim periods are not necessarily indicative of results for the entire fiscal year. Revenue and earnings are typically greater during the first and fourth quarters, when consumption of energy is highest due to colder temperatures.
During the third quarter of 2013, we recorded an accrual of $698,000 (424,000, net of tax) due to a contingency for taxes other than income, $248,000, $222,000 and $60,000 of which relate to the years ended December 31, 2012, 2011 and 2010, respectively. This reduced our earnings in the third quarter of 2013 and was reflected in other taxes in the accompanying condensed consolidated statements of income for the three and nine months ended September 30, 2013. All of the amounts are related to our unregulated energy segment.
We have assessed and reported on subsequent events through the date of issuance of these condensed consolidated financial statements.
Reclassifications
We reclassified certain amounts in the condensed consolidated cash flows statement for the nine months ended September 30, 2012 to conform to the current year’s presentation. These reclassifications are considered immaterial to the overall presentation of our condensed consolidated financial statements.

Financial Accounting Standards Board (“FASB”) Statements and Other Authoritative Pronouncements
Recent Accounting Standards Yet to be Adopted
Income Taxes (Accounting Standards Codification ("ASC") 740) - In July 2013, the FASB issued Accounting Standards Update (“ASU”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” which requires the netting of certain unrecognized tax benefits against a deferred tax asset for a loss or other similar tax carryforward that would apply upon settlement of an uncertain tax position. This ASU is effective prospectively beginning on January 1, 2014 for all unrecognized tax benefits existing at the adoption of this new standard. Retrospective implementation and early adoption of this standard are permitted. We expect the adoption of ASU 2013-11 to have no material impact on our financial position and results of operations.
Recently Adopted Accounting Standards
Comprehensive Income (ASC 220) - Effective January 1, 2013, we adopted ASU 2013-02, “Reporting of Amounts Reclassified Out Of Accumulated Other Comprehensive Income,” which requires enhanced disclosures of amounts reclassified out of accumulated other comprehensive income by component. The adoption of ASU 2013-02 had no impact on our financial position and results of operations. See Note 8, "Accumulated Other Comprehensive Income (Loss)," for additional disclosures required under this new standard.
Balance Sheet (ASC 210) - Effective January 1, 2013, we adopted ASU 2011-11, “Disclosures About Offsetting Assets and Liabilities,” and ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” These new standards require disclosures about offsetting and related arrangements in order to help financial statement users better understand the effect of those arrangements on our financial position. The adoption of ASU 2011-11 and ASU 2013-01 had no material impact on our financial position and results of operations. See Note 12, "Derivative Instruments," for additional disclosures about our offsetting of certain assets and liabilities.