XML 48 R14.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Fair Value Measurements
 6 Months Ended
Jun. 30, 2011
Fair Value Measurements

(9) FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments - The carrying amounts of Alliant Energy's, IPL's and WPL's current assets and current liabilities approximate fair value because of the short maturity of such financial instruments. Carrying amounts and the related estimated fair values of other financial instruments at June 30, 2011 and Dec. 31, 2010 were as follows (in millions):

 

     Alliant Energy      IPL      WPL  
     Carrying      Fair      Carrying      Fair      Carrying      Fair  
     Amount      Value      Amount      Value      Amount      Value  

June 30, 2011

                  

Assets:

                  

Money market fund investments

    $ 46.3       $ 46.3       $ —         $ —         $ 11.1       $ 11.1   

Derivative assets (Note 10)

      31.5         31.5         21.2         21.2         8.2         8.2   

Deferred proceeds (sales of receivables) (Note 3)

      66.4         66.4         66.4         66.4         —           —     

Available-for-sale securities

      2.0         2.0         2.0         2.0         —           —     

Capitalization and liabilities:

                  

Long-term debt (including current maturities)

      2,704.9         3,011.6         1,308.8         1,429.4         1,082.0         1,258.1   

Cumulative preferred stock of subsidiaries
(Note 6(b))

      205.1         223.0         145.1         166.8         60.0         56.2   

Derivative liabilities (Note 10)

      38.8         38.8         11.7         11.7         27.1         27.1   

Dec. 31, 2010

                  

Assets:

                  

Money market fund investments

      128.3         128.3         5.6         5.6         —           —     

Derivative assets (Note 10)

      20.9         20.9         12.9         12.9         8.0         8.0   

Deferred proceeds (sales of receivables) (Note 3)

      152.9         152.9         152.9         152.9         —           —     

Available-for-sale securities

      2.1         2.1         2.1         2.1         —           —     

Capitalization and liabilities:

                  

Long-term debt (including current maturities)

      2,704.7         2,958.6         1,308.6         1,417.0         1,081.7         1,219.6   

Cumulative preferred stock of subsidiaries
(Note 6(b))

      243.8         266.7         183.8         210.7         60.0         56.0   

Derivative liabilities (Note 10)

      67.3         67.3         24.0         24.0         43.3         43.3   

Valuation Techniques -

Money market fund investments - Money market fund investments are measured at fair value each reporting date using quoted market prices on listed exchanges.

Derivative assets and derivative liabilities - As of June 30, 2011 and Dec. 31, 2010, derivative assets and derivative liabilities included swap contracts, option contracts, and physical forward purchase and sale contracts for electricity and natural gas, financial transmission rights (FTRs) and embedded foreign currency derivatives. IPL's and WPL's swap, option and physical forward commodity contracts were non-exchange-based derivative instruments valued using indicative price quotations available through a pricing vendor that provides daily exchange forward price settlements, from broker or dealer quotations or from on-line exchanges. The indicative price quotations reflected the average of the bid-ask mid-point prices and were obtained from sources believed to provide the most liquid market for the commodity. IPL and WPL corroborated a portion of these indicative price quotations using quoted prices for similar assets or liabilities in active markets and categorized derivative instruments based on such indicative price quotations as Level 2. IPL's and WPL's commodity contracts that were valued using indicative price quotations based on significant assumptions such as seasonal or monthly shaping and indicative price quotations that could not be readily corroborated were categorized as Level 3. IPL's and WPL's swap, option and physical forward commodity contracts were predominately at liquid trading points. IPL's and WPL's FTRs were measured at fair value each reporting date using monthly or annual auction shadow prices from relevant auctions. The embedded foreign currency derivatives related to Euro-denominated payment terms included in the wind turbine supply contract with Vestas were measured at fair value using an extrapolation of forward currency rates. Refer to Note 10 for additional details of derivative assets and derivative liabilities.

Deferred proceeds (sales of receivables) - The fair value of IPL's deferred proceeds related to its sales of accounts receivable program was calculated each reporting date using the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash proceeds received from the receivables sold. Refer to Note 3 for additional information regarding deferred proceeds.

Available-for-sale securities - The fair value of certain IPL investments in various debt and equity securities was measured at fair value each reporting date using quoted market prices on listed exchanges.

 

Long-term debt (including current maturities) - For long-term debt instruments that are actively traded, the fair value was based upon quoted market prices each reporting date. For long-term debt instruments that are not actively traded, the fair value was based on discounted cash flow methodology and utilizes assumptions of current market pricing curves.

Cumulative preferred stock of subsidiaries - The fair value of IPL's 8.375% cumulative preferred stock was based on its closing market price quoted by the New York Stock Exchange each reporting date. At Dec. 31, 2010, the fair value of IPL's 7.10% cumulative preferred stock was based on its closing market price quoted by the New York Stock Exchange. The fair value of WPL's 4.50% cumulative preferred stock was based on the closing market price quoted by the NYSE Amex LLC each reporting date. The fair value of WPL's remaining preferred stock was calculated based on the market yield of similar securities. Refer to Note 6(b) for additional information regarding cumulative preferred stock of subsidiaries, including the April 2011 redemption of IPL's 7.10% cumulative preferred stock.

Valuation Hierarchy - Fair value measurement accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy and examples of each are as follows:

Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the reporting date. Level 1 assets as of June 30, 2011 and Dec. 31, 2010 included money market fund investments and certain IPL investments in securities valued using quoted market prices on listed exchanges.

Level 2 - Pricing inputs are quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active as of the reporting date. Level 2 assets and liabilities as of June 30, 2011 and Dec. 31, 2010 included IPL's and WPL's non-exchange traded commodity contracts valued using indicative price quotations that are corroborated with quoted prices for similar assets or liabilities in active markets.

Level 3 - Pricing inputs are unobservable inputs for assets or liabilities for which little or no market data exist and require significant management judgment or estimation. Level 3 assets and liabilities as of June 30, 2011 and Dec. 31, 2010 included embedded foreign currency derivatives, IPL's deferred proceeds, and IPL's and WPL's FTRs, natural gas option contracts and certain commodity contracts that are valued using indicative price quotations with shaping assumptions.

The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.

Recurring Fair Value Measurements - Disclosure requirements for Alliant Energy's, IPL's and WPL's recurring items subject to fair value measurements at June 30, 2011 and Dec. 31, 2010 were as follows (in millions):

 

Alliant Energy

    June 30, 2011      Dec. 31, 2010  
     Fair      Level      Level      Level      Fair      Level      Level      Level  
     Value      1      2      3      Value      1      2      3  

Assets:

                        

Money market fund investments

    $ 46.3       $ 46.3       $ —         $ —         $ 128.3       $ 128.3       $ —         $ —     

Derivative assets:

                        

Commodity contracts

      29.4         —           8.0         21.4         16.1         —           10.0         6.1   

Foreign exchange contracts

      2.1         —           —           2.1         4.8         —           —           4.8   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivative assets

      31.5         —           8.0         23.5         20.9         —           10.0         10.9   

Deferred proceeds

      66.4         —           —           66.4         152.9         —           —           152.9   

Available-for-sale securities

      2.0         0.8         1.1         0.1         2.1         0.6         1.4         0.1   

Liabilities:

                        

Derivative liabilities:

                        

Commodity contracts

      38.8         —           35.5         3.3         67.2         —           63.9         3.3   

Foreign exchange contracts

      —           —           —           —           0.1         —           —           0.1   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivative liabilities

      38.8         —           35.5         3.3         67.3         —           63.9         3.4   

IPL

   June 30, 2011      Dec. 31, 2010  
     Fair      Level      Level      Level      Fair      Level      Level      Level  
     Value      1      2      3      Value      1      2      3  

Assets:

                        

Money market fund investments

    $ —         $ —         $ —         $ —         $ 5.6       $ 5.6       $ —         $ —     

Derivative assets:

                        

Commodity contracts

      21.2         —           3.5         17.7         8.1         —           3.6         4.5   

Foreign exchange contracts

      —           —           —           —           4.8         —           —           4.8   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivative assets

      21.2         —           3.5         17.7         12.9         —           3.6         9.3   

Deferred proceeds

      66.4         —           —           66.4         152.9         —           —           152.9   

Available-for-sale securities

      2.0         0.8         1.1         0.1         2.1         0.6         1.4         0.1   

Liabilities:

                        

Derivative liabilities:

                        

Commodity contracts

      11.7         —           11.5         0.2         24.0         —           23.8         0.2   

WPL

    June 30, 2011      Dec. 31, 2010  
     Fair      Level      Level      Level      Fair      Level      Level      Level  
     Value      1      2      3      Value      1      2      3  

Assets:

                        

Money market fund investments

    $ 11.1       $ 11.1       $ —         $ —         $ —         $ —         $ —         $ —     

Derivative assets:

                        

Commodity contracts

      8.2         —           4.5         3.7         8.0         —           6.4         1.6   

Liabilities:

                        

Derivative liabilities:

                        

Commodity contracts

      27.1         —           24.0         3.1         43.2         —           40.1         3.1   

Foreign exchange contracts

      —           —           —           —           0.1         —           —           0.1   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivative liabilities

      27.1         —           24.0         3.1         43.3         —           40.1         3.2   

Additional information for Alliant Energy's, IPL's and WPL's recurring fair value measurements using significant unobservable inputs (Level 3 inputs) for the three and six months ended June 30 was as follows (in millions):

 

Alliant Energy

    Derivative Assets and (Liabilities), net                
     Commodity     Foreign      Deferred      Available-for-sale  
     Contracts     Contracts      Proceeds      Securities  

Three months ended June 30

    2011     2010     2011      2010      2011     2010      2011      2010  

Beginning balance, April 1

    ($ 1.1 )    ($ 1.8 )    $ 2.1       $ 7.3       $ 129.8      $ —         $ 0.1       $ 0.1   

Total gains (realized/unrealized) included in changes in net assets (a)

      0.5        13.9        —           —           —          —           —           —     

Transfers in and/or out of Level 3 (b)

      0.3        0.6        —           —           —          —           —           —     

Purchases

      21.8        —          —           —           —          —           —           —     

Settlements (c)

      (3.4 )      (2.4 )      —           0.6         (63.4 )      68.1         —           —     
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Ending balance, June 30

    $ 18.1      $ 10.3      $ 2.1       $ 7.9       $ 66.4      $ 68.1       $ 0.1       $ 0.1   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

The amount of total gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30 (a)

    $ 0.5      $ 13.9      $ —         $ —         $ —        $ —         $ —         $ —     
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Alliant Energy

    Derivative Assets and (Liabilities), net                
     Commodity     Foreign      Deferred      Available-for-sale  
     Contracts     Contracts      Proceeds      Securities  

Six months ended June 30

    2011     2010     2011     2010      2011     2010      2011      2010  

Beginning balance, Jan. 1

    $ 2.8      $ 2.6      $ 4.7      $ 3.1       $ 152.9      $ —         $ 0.1       $ 0.1   

Total gains (realized/unrealized) included in changes in net assets (a)

      0.1        12.2        —          3.8         —          —           —           —     

Transfers in and/or out of Level 3 (b)

      0.2        (0.1 )      —          —           —          —           —           —     

Purchases

      21.8        —          —          —           —          —           —           —     

Settlements (c)

      (6.8 )      (4.4 )      (2.6 )      1.0         (86.5 )      68.1         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Ending balance, June 30

    $ 18.1      $ 10.3      $ 2.1      $ 7.9       $ 66.4      $ 68.1       $ 0.1       $ 0.1   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

The amount of total gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30 (a)

    $ 0.1      $ 12.2      $ —        $ 3.8       $ —        $ —         $ —         $ —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

IPL

    Derivative Assets and (Liabilities), net                
     Commodity     Foreign      Deferred      Available-for-sale  
     Contracts     Contracts      Proceeds      Securities  

Three months ended June 30

    2011     2010     2011     2010      2011     2010      2011      2010  

Beginning balance, April 1

    $ 1.4      $ 0.6      $ 2.1      $ 8.4       $ 129.8      $ —         $ 0.1       $ 0.1   

Total gains (realized/unrealized) included in changes in net assets (a)

      0.7        10.7        —          —           —          —           —           —     

Purchases

      18.1        —          —          —           —          —           —           —     

Sales (d)

      —          —          (2.1 )      —           —          —           —           —     

Settlements (c)

      (2.7 )      (1.6 )      —          —           (63.4 )      68.1         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Ending balance, June 30

    $ 17.5      $ 9.7      $ —        $ 8.4       $ 66.4      $ 68.1       $ 0.1       $ 0.1   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

The amount of total gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30 (a)

    $ 0.7      $ 10.7      $ —        $ —         $ —        $ —         $ —         $ —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

IPL

    Derivative Assets and (Liabilities), net                
     Commodity     Foreign      Deferred      Available-for-sale  
     Contracts     Contracts      Proceeds      Securities  

Six months ended June 30

    2011     2010     2011     2010      2011     2010      2011      2010  

Beginning balance, Jan. 1

    $ 4.3      $ 1.4      $ 4.8      $ 4.6       $ 152.9      $ —         $ 0.1       $ 0.1   

Total gains (realized/unrealized) included in changes in net assets (a)

      0.5        10.6        —          3.8         —          —           —           —     

Purchases

      18.1        —          —          —           —          —           —           —     

Sales (d)

      —          —          (2.1 )      —           —          —           —           —     

Settlements (c)

      (5.4 )      (2.3 )      (2.7 )      —           (86.5 )      68.1         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Ending balance, June 30

    $ 17.5      $ 9.7      $ —        $ 8.4       $ 66.4      $ 68.1       $ 0.1       $ 0.1   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

The amount of total gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30 (a)

    $ 0.5      $ 10.6      $ —        $ 3.8       $ —        $ —         $ —         $ —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

WPL

    Derivative Assets and (Liabilities), net  
     Commodity     Foreign  
     Contracts     Contracts  

Three months ended June 30

    2011     2010     2011     2010  

Beginning balance, April 1

    ($ 2.5 )    ($ 2.4 )    $ —        ($ 1.1 ) 

Total gains or (losses) (realized/unrealized) included in changes in net assets (a)

      (0.2 )      3.2        —          —     

Transfers in and/or out of Level 3 (b)

      0.3        0.6        —          —     

Purchases

      3.7        —          —          —     

Settlements

      (0.7 )      (0.8 )      —          0.6   
  

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance, June 30

    $ 0.6      $ 0.6      $ —        ($ 0.5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

The amount of total gains or (losses) for the period included in changes in net assets attributable to the change in unrealized gains or (losses) relating to assets and liabilities held at June 30 (a)

    ($ 0.2 )    $ 3.2      $ —        $ —     
  

 

 

    

 

 

    

 

 

    

 

 

  

WPL

    Derivative Assets and (Liabilities), net  
     Commodity     Foreign  
     Contracts     Contracts  

Six months ended June 30

    2011     2010     2011     2010  

Beginning balance, Jan. 1

    ($ 1.5 )    $ 1.2      ($ 0.1 )    ($ 1.5 ) 

Total gains or (losses) (realized/unrealized) included in changes in net assets (a)

      (0.4 )      1.6        —          —     

Transfers in and/or out of Level 3 (b)

      0.2        (0.1 )      —          —     

Purchases

      3.7        —          —          —     

Settlements

      (1.4 )      (2.1 )      0.1        1.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance, June 30

    $ 0.6      $ 0.6      $ —        ($ 0.5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

The amount of total gains or (losses) for the period included in changes in net assets attributable to the change in unrealized gains or (losses) relating to assets and liabilities held at June 30 (a)

    ($ 0.4 )    $ 1.6      $ —        $ —     
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Gains and losses related to derivative assets and liabilities are recorded in "Regulatory assets" and "Regulatory liabilities" on the Condensed Consolidated Balance Sheets.
(b) Observable market inputs became available for certain commodity contracts previously classified as Level 3. The transfers were valued as of the beginning of the period.
(c) Settlements related to deferred proceeds are due to the change in the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash proceeds received from the receivables sold.
(d) The foreign exchange contract was transferred from IPL to Resources in connection with the sale of wind project assets in the second quarter of 2011.
IPL [Member]
  
Fair Value Measurements

(9) FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments - The carrying amounts of Alliant Energy's, IPL's and WPL's current assets and current liabilities approximate fair value because of the short maturity of such financial instruments. Carrying amounts and the related estimated fair values of other financial instruments at June 30, 2011 and Dec. 31, 2010 were as follows (in millions):

 

     Alliant Energy      IPL      WPL  
     Carrying      Fair      Carrying      Fair      Carrying      Fair  
     Amount      Value      Amount      Value      Amount      Value  

June 30, 2011

                  

Assets:

                  

Money market fund investments

    $ 46.3       $ 46.3       $ —         $ —         $ 11.1       $ 11.1   

Derivative assets (Note 10)

      31.5         31.5         21.2         21.2         8.2         8.2   

Deferred proceeds (sales of receivables) (Note 3)

      66.4         66.4         66.4         66.4         —           —     

Available-for-sale securities

      2.0         2.0         2.0         2.0         —           —     

Capitalization and liabilities:

                  

Long-term debt (including current maturities)

      2,704.9         3,011.6         1,308.8         1,429.4         1,082.0         1,258.1   

Cumulative preferred stock of subsidiaries
(Note 6(b))

      205.1         223.0         145.1         166.8         60.0         56.2   

Derivative liabilities (Note 10)

      38.8         38.8         11.7         11.7         27.1         27.1   

Dec. 31, 2010

                  

Assets:

                  

Money market fund investments

      128.3         128.3         5.6         5.6         —           —     

Derivative assets (Note 10)

      20.9         20.9         12.9         12.9         8.0         8.0   

Deferred proceeds (sales of receivables) (Note 3)

      152.9         152.9         152.9         152.9         —           —     

Available-for-sale securities

      2.1         2.1         2.1         2.1         —           —     

Capitalization and liabilities:

                  

Long-term debt (including current maturities)

      2,704.7         2,958.6         1,308.6         1,417.0         1,081.7         1,219.6   

Cumulative preferred stock of subsidiaries
(Note 6(b))

      243.8         266.7         183.8         210.7         60.0         56.0   

Derivative liabilities (Note 10)

      67.3         67.3         24.0         24.0         43.3         43.3   

Valuation Techniques -

Money market fund investments - Money market fund investments are measured at fair value each reporting date using quoted market prices on listed exchanges.

Derivative assets and derivative liabilities - As of June 30, 2011 and Dec. 31, 2010, derivative assets and derivative liabilities included swap contracts, option contracts, and physical forward purchase and sale contracts for electricity and natural gas, financial transmission rights (FTRs) and embedded foreign currency derivatives. IPL's and WPL's swap, option and physical forward commodity contracts were non-exchange-based derivative instruments valued using indicative price quotations available through a pricing vendor that provides daily exchange forward price settlements, from broker or dealer quotations or from on-line exchanges. The indicative price quotations reflected the average of the bid-ask mid-point prices and were obtained from sources believed to provide the most liquid market for the commodity. IPL and WPL corroborated a portion of these indicative price quotations using quoted prices for similar assets or liabilities in active markets and categorized derivative instruments based on such indicative price quotations as Level 2. IPL's and WPL's commodity contracts that were valued using indicative price quotations based on significant assumptions such as seasonal or monthly shaping and indicative price quotations that could not be readily corroborated were categorized as Level 3. IPL's and WPL's swap, option and physical forward commodity contracts were predominately at liquid trading points. IPL's and WPL's FTRs were measured at fair value each reporting date using monthly or annual auction shadow prices from relevant auctions. The embedded foreign currency derivatives related to Euro-denominated payment terms included in the wind turbine supply contract with Vestas were measured at fair value using an extrapolation of forward currency rates. Refer to Note 10 for additional details of derivative assets and derivative liabilities.

Deferred proceeds (sales of receivables) - The fair value of IPL's deferred proceeds related to its sales of accounts receivable program was calculated each reporting date using the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash proceeds received from the receivables sold. Refer to Note 3 for additional information regarding deferred proceeds.

Available-for-sale securities - The fair value of certain IPL investments in various debt and equity securities was measured at fair value each reporting date using quoted market prices on listed exchanges.

 

Long-term debt (including current maturities) - For long-term debt instruments that are actively traded, the fair value was based upon quoted market prices each reporting date. For long-term debt instruments that are not actively traded, the fair value was based on discounted cash flow methodology and utilizes assumptions of current market pricing curves.

Cumulative preferred stock of subsidiaries - The fair value of IPL's 8.375% cumulative preferred stock was based on its closing market price quoted by the New York Stock Exchange each reporting date. At Dec. 31, 2010, the fair value of IPL's 7.10% cumulative preferred stock was based on its closing market price quoted by the New York Stock Exchange. The fair value of WPL's 4.50% cumulative preferred stock was based on the closing market price quoted by the NYSE Amex LLC each reporting date. The fair value of WPL's remaining preferred stock was calculated based on the market yield of similar securities. Refer to Note 6(b) for additional information regarding cumulative preferred stock of subsidiaries, including the April 2011 redemption of IPL's 7.10% cumulative preferred stock.

Valuation Hierarchy - Fair value measurement accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy and examples of each are as follows:

Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the reporting date. Level 1 assets as of June 30, 2011 and Dec. 31, 2010 included money market fund investments and certain IPL investments in securities valued using quoted market prices on listed exchanges.

Level 2 - Pricing inputs are quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active as of the reporting date. Level 2 assets and liabilities as of June 30, 2011 and Dec. 31, 2010 included IPL's and WPL's non-exchange traded commodity contracts valued using indicative price quotations that are corroborated with quoted prices for similar assets or liabilities in active markets.

Level 3 - Pricing inputs are unobservable inputs for assets or liabilities for which little or no market data exist and require significant management judgment or estimation. Level 3 assets and liabilities as of June 30, 2011 and Dec. 31, 2010 included embedded foreign currency derivatives, IPL's deferred proceeds, and IPL's and WPL's FTRs, natural gas option contracts and certain commodity contracts that are valued using indicative price quotations with shaping assumptions.

The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.

Recurring Fair Value Measurements - Disclosure requirements for Alliant Energy's, IPL's and WPL's recurring items subject to fair value measurements at June 30, 2011 and Dec. 31, 2010 were as follows (in millions):

 

Alliant Energy

    June 30, 2011      Dec. 31, 2010  
     Fair      Level      Level      Level      Fair      Level      Level      Level  
     Value      1      2      3      Value      1      2      3  

Assets:

                        

Money market fund investments

    $ 46.3       $ 46.3       $ —         $ —         $ 128.3       $ 128.3       $ —         $ —     

Derivative assets:

                        

Commodity contracts

      29.4         —           8.0         21.4         16.1         —           10.0         6.1   

Foreign exchange contracts

      2.1         —           —           2.1         4.8         —           —           4.8   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivative assets

      31.5         —           8.0         23.5         20.9         —           10.0         10.9   

Deferred proceeds

      66.4         —           —           66.4         152.9         —           —           152.9   

Available-for-sale securities

      2.0         0.8         1.1         0.1         2.1         0.6         1.4         0.1   

Liabilities:

                        

Derivative liabilities:

                        

Commodity contracts

      38.8         —           35.5         3.3         67.2         —           63.9         3.3   

Foreign exchange contracts

      —           —           —           —           0.1         —           —           0.1   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivative liabilities

      38.8         —           35.5         3.3         67.3         —           63.9         3.4   

IPL

   June 30, 2011      Dec. 31, 2010  
     Fair      Level      Level      Level      Fair      Level      Level      Level  
     Value      1      2      3      Value      1      2      3  

Assets:

                        

Money market fund investments

    $ —         $ —         $ —         $ —         $ 5.6       $ 5.6       $ —         $ —     

Derivative assets:

                        

Commodity contracts

      21.2         —           3.5         17.7         8.1         —           3.6         4.5   

Foreign exchange contracts

      —           —           —           —           4.8         —           —           4.8   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivative assets

      21.2         —           3.5         17.7         12.9         —           3.6         9.3   

Deferred proceeds

      66.4         —           —           66.4         152.9         —           —           152.9   

Available-for-sale securities

      2.0         0.8         1.1         0.1         2.1         0.6         1.4         0.1   

Liabilities:

                        

Derivative liabilities:

                        

Commodity contracts

      11.7         —           11.5         0.2         24.0         —           23.8         0.2   

WPL

    June 30, 2011      Dec. 31, 2010  
     Fair      Level      Level      Level      Fair      Level      Level      Level  
     Value      1      2      3      Value      1      2      3  

Assets:

                        

Money market fund investments

    $ 11.1       $ 11.1       $ —         $ —         $ —         $ —         $ —         $ —     

Derivative assets:

                        

Commodity contracts

      8.2         —           4.5         3.7         8.0         —           6.4         1.6   

Liabilities:

                        

Derivative liabilities:

                        

Commodity contracts

      27.1         —           24.0         3.1         43.2         —           40.1         3.1   

Foreign exchange contracts

      —           —           —           —           0.1         —           —           0.1   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivative liabilities

      27.1         —           24.0         3.1         43.3         —           40.1         3.2   

Additional information for Alliant Energy's, IPL's and WPL's recurring fair value measurements using significant unobservable inputs (Level 3 inputs) for the three and six months ended June 30 was as follows (in millions):

 

Alliant Energy

    Derivative Assets and (Liabilities), net                
     Commodity     Foreign      Deferred      Available-for-sale  
     Contracts     Contracts      Proceeds      Securities  

Three months ended June 30

    2011     2010     2011      2010      2011     2010      2011      2010  

Beginning balance, April 1

    ($ 1.1 )    ($ 1.8 )    $ 2.1       $ 7.3       $ 129.8      $ —         $ 0.1       $ 0.1   

Total gains (realized/unrealized) included in changes in net assets (a)

      0.5        13.9        —           —           —          —           —           —     

Transfers in and/or out of Level 3 (b)

      0.3        0.6        —           —           —          —           —           —     

Purchases

      21.8        —          —           —           —          —           —           —     

Settlements (c)

      (3.4 )      (2.4 )      —           0.6         (63.4 )      68.1         —           —     
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Ending balance, June 30

    $ 18.1      $ 10.3      $ 2.1       $ 7.9       $ 66.4      $ 68.1       $ 0.1       $ 0.1   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

The amount of total gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30 (a)

    $ 0.5      $ 13.9      $ —         $ —         $ —        $ —         $ —         $ —     
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Alliant Energy

    Derivative Assets and (Liabilities), net                
     Commodity     Foreign      Deferred      Available-for-sale  
     Contracts     Contracts      Proceeds      Securities  

Six months ended June 30

    2011     2010     2011     2010      2011     2010      2011      2010  

Beginning balance, Jan. 1

    $ 2.8      $ 2.6      $ 4.7      $ 3.1       $ 152.9      $ —         $ 0.1       $ 0.1   

Total gains (realized/unrealized) included in changes in net assets (a)

      0.1        12.2        —          3.8         —          —           —           —     

Transfers in and/or out of Level 3 (b)

      0.2        (0.1 )      —          —           —          —           —           —     

Purchases

      21.8        —          —          —           —          —           —           —     

Settlements (c)

      (6.8 )      (4.4 )      (2.6 )      1.0         (86.5 )      68.1         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Ending balance, June 30

    $ 18.1      $ 10.3      $ 2.1      $ 7.9       $ 66.4      $ 68.1       $ 0.1       $ 0.1   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

The amount of total gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30 (a)

    $ 0.1      $ 12.2      $ —        $ 3.8       $ —        $ —         $ —         $ —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

IPL

    Derivative Assets and (Liabilities), net                
     Commodity     Foreign      Deferred      Available-for-sale  
     Contracts     Contracts      Proceeds      Securities  

Three months ended June 30

    2011     2010     2011     2010      2011     2010      2011      2010  

Beginning balance, April 1

    $ 1.4      $ 0.6      $ 2.1      $ 8.4       $ 129.8      $ —         $ 0.1       $ 0.1   

Total gains (realized/unrealized) included in changes in net assets (a)

      0.7        10.7        —          —           —          —           —           —     

Purchases

      18.1        —          —          —           —          —           —           —     

Sales (d)

      —          —          (2.1 )      —           —          —           —           —     

Settlements (c)

      (2.7 )      (1.6 )      —          —           (63.4 )      68.1         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Ending balance, June 30

    $ 17.5      $ 9.7      $ —        $ 8.4       $ 66.4      $ 68.1       $ 0.1       $ 0.1   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

The amount of total gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30 (a)

    $ 0.7      $ 10.7      $ —        $ —         $ —        $ —         $ —         $ —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

IPL

    Derivative Assets and (Liabilities), net                
     Commodity     Foreign      Deferred      Available-for-sale  
     Contracts     Contracts      Proceeds      Securities  

Six months ended June 30

    2011     2010     2011     2010      2011     2010      2011      2010  

Beginning balance, Jan. 1

    $ 4.3      $ 1.4      $ 4.8      $ 4.6       $ 152.9      $ —         $ 0.1       $ 0.1   

Total gains (realized/unrealized) included in changes in net assets (a)

      0.5        10.6        —          3.8         —          —           —           —     

Purchases

      18.1        —          —          —           —          —           —           —     

Sales (d)

      —          —          (2.1 )      —           —          —           —           —     

Settlements (c)

      (5.4 )      (2.3 )      (2.7 )      —           (86.5 )      68.1         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Ending balance, June 30

    $ 17.5      $ 9.7      $ —        $ 8.4       $ 66.4      $ 68.1       $ 0.1       $ 0.1   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

The amount of total gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30 (a)

    $ 0.5      $ 10.6      $ —        $ 3.8       $ —        $ —         $ —         $ —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

WPL

    Derivative Assets and (Liabilities), net  
     Commodity     Foreign  
     Contracts     Contracts  

Three months ended June 30

    2011     2010     2011     2010  

Beginning balance, April 1

    ($ 2.5 )    ($ 2.4 )    $ —        ($ 1.1 ) 

Total gains or (losses) (realized/unrealized) included in changes in net assets (a)

      (0.2 )      3.2        —          —     

Transfers in and/or out of Level 3 (b)

      0.3        0.6        —          —     

Purchases

      3.7        —          —          —     

Settlements

      (0.7 )      (0.8 )      —          0.6   
  

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance, June 30

    $ 0.6      $ 0.6      $ —        ($ 0.5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

The amount of total gains or (losses) for the period included in changes in net assets attributable to the change in unrealized gains or (losses) relating to assets and liabilities held at June 30 (a)

    ($ 0.2 )    $ 3.2      $ —        $ —     
  

 

 

    

 

 

    

 

 

    

 

 

  

WPL

    Derivative Assets and (Liabilities), net  
     Commodity     Foreign  
     Contracts     Contracts  

Six months ended June 30

    2011     2010     2011     2010  

Beginning balance, Jan. 1

    ($ 1.5 )    $ 1.2      ($ 0.1 )    ($ 1.5 ) 

Total gains or (losses) (realized/unrealized) included in changes in net assets (a)

      (0.4 )      1.6        —          —     

Transfers in and/or out of Level 3 (b)

      0.2        (0.1 )      —          —     

Purchases

      3.7        —          —          —     

Settlements

      (1.4 )      (2.1 )      0.1        1.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance, June 30

    $ 0.6      $ 0.6      $ —        ($ 0.5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

The amount of total gains or (losses) for the period included in changes in net assets attributable to the change in unrealized gains or (losses) relating to assets and liabilities held at June 30 (a)

    ($ 0.4 )    $ 1.6      $ —        $ —     
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Gains and losses related to derivative assets and liabilities are recorded in "Regulatory assets" and "Regulatory liabilities" on the Condensed Consolidated Balance Sheets.
(b) Observable market inputs became available for certain commodity contracts previously classified as Level 3. The transfers were valued as of the beginning of the period.
(c) Settlements related to deferred proceeds are due to the change in the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash proceeds received from the receivables sold.
(d) The foreign exchange contract was transferred from IPL to Resources in connection with the sale of wind project assets in the second quarter of 2011.
WPL [Member]
  
Fair Value Measurements

(9) FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments - The carrying amounts of Alliant Energy's, IPL's and WPL's current assets and current liabilities approximate fair value because of the short maturity of such financial instruments. Carrying amounts and the related estimated fair values of other financial instruments at June 30, 2011 and Dec. 31, 2010 were as follows (in millions):

 

     Alliant Energy      IPL      WPL  
     Carrying      Fair      Carrying      Fair      Carrying      Fair  
     Amount      Value      Amount      Value      Amount      Value  

June 30, 2011

                  

Assets:

                  

Money market fund investments

    $ 46.3       $ 46.3       $ —         $ —         $ 11.1       $ 11.1   

Derivative assets (Note 10)

      31.5         31.5         21.2         21.2         8.2         8.2   

Deferred proceeds (sales of receivables) (Note 3)

      66.4         66.4         66.4         66.4         —           —     

Available-for-sale securities

      2.0         2.0         2.0         2.0         —           —     

Capitalization and liabilities:

                  

Long-term debt (including current maturities)

      2,704.9         3,011.6         1,308.8         1,429.4         1,082.0         1,258.1   

Cumulative preferred stock of subsidiaries
(Note 6(b))

      205.1         223.0         145.1         166.8         60.0         56.2   

Derivative liabilities (Note 10)

      38.8         38.8         11.7         11.7         27.1         27.1   

Dec. 31, 2010

                  

Assets:

                  

Money market fund investments

      128.3         128.3         5.6         5.6         —           —     

Derivative assets (Note 10)

      20.9         20.9         12.9         12.9         8.0         8.0   

Deferred proceeds (sales of receivables) (Note 3)

      152.9         152.9         152.9         152.9         —           —     

Available-for-sale securities

      2.1         2.1         2.1         2.1         —           —     

Capitalization and liabilities:

                  

Long-term debt (including current maturities)

      2,704.7         2,958.6         1,308.6         1,417.0         1,081.7         1,219.6   

Cumulative preferred stock of subsidiaries
(Note 6(b))

      243.8         266.7         183.8         210.7         60.0         56.0   

Derivative liabilities (Note 10)

      67.3         67.3         24.0         24.0         43.3         43.3   

Valuation Techniques -

Money market fund investments - Money market fund investments are measured at fair value each reporting date using quoted market prices on listed exchanges.

Derivative assets and derivative liabilities - As of June 30, 2011 and Dec. 31, 2010, derivative assets and derivative liabilities included swap contracts, option contracts, and physical forward purchase and sale contracts for electricity and natural gas, financial transmission rights (FTRs) and embedded foreign currency derivatives. IPL's and WPL's swap, option and physical forward commodity contracts were non-exchange-based derivative instruments valued using indicative price quotations available through a pricing vendor that provides daily exchange forward price settlements, from broker or dealer quotations or from on-line exchanges. The indicative price quotations reflected the average of the bid-ask mid-point prices and were obtained from sources believed to provide the most liquid market for the commodity. IPL and WPL corroborated a portion of these indicative price quotations using quoted prices for similar assets or liabilities in active markets and categorized derivative instruments based on such indicative price quotations as Level 2. IPL's and WPL's commodity contracts that were valued using indicative price quotations based on significant assumptions such as seasonal or monthly shaping and indicative price quotations that could not be readily corroborated were categorized as Level 3. IPL's and WPL's swap, option and physical forward commodity contracts were predominately at liquid trading points. IPL's and WPL's FTRs were measured at fair value each reporting date using monthly or annual auction shadow prices from relevant auctions. The embedded foreign currency derivatives related to Euro-denominated payment terms included in the wind turbine supply contract with Vestas were measured at fair value using an extrapolation of forward currency rates. Refer to Note 10 for additional details of derivative assets and derivative liabilities.

Deferred proceeds (sales of receivables) - The fair value of IPL's deferred proceeds related to its sales of accounts receivable program was calculated each reporting date using the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash proceeds received from the receivables sold. Refer to Note 3 for additional information regarding deferred proceeds.

Available-for-sale securities - The fair value of certain IPL investments in various debt and equity securities was measured at fair value each reporting date using quoted market prices on listed exchanges.

 

Long-term debt (including current maturities) - For long-term debt instruments that are actively traded, the fair value was based upon quoted market prices each reporting date. For long-term debt instruments that are not actively traded, the fair value was based on discounted cash flow methodology and utilizes assumptions of current market pricing curves.

Cumulative preferred stock of subsidiaries - The fair value of IPL's 8.375% cumulative preferred stock was based on its closing market price quoted by the New York Stock Exchange each reporting date. At Dec. 31, 2010, the fair value of IPL's 7.10% cumulative preferred stock was based on its closing market price quoted by the New York Stock Exchange. The fair value of WPL's 4.50% cumulative preferred stock was based on the closing market price quoted by the NYSE Amex LLC each reporting date. The fair value of WPL's remaining preferred stock was calculated based on the market yield of similar securities. Refer to Note 6(b) for additional information regarding cumulative preferred stock of subsidiaries, including the April 2011 redemption of IPL's 7.10% cumulative preferred stock.

Valuation Hierarchy - Fair value measurement accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy and examples of each are as follows:

Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the reporting date. Level 1 assets as of June 30, 2011 and Dec. 31, 2010 included money market fund investments and certain IPL investments in securities valued using quoted market prices on listed exchanges.

Level 2 - Pricing inputs are quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active as of the reporting date. Level 2 assets and liabilities as of June 30, 2011 and Dec. 31, 2010 included IPL's and WPL's non-exchange traded commodity contracts valued using indicative price quotations that are corroborated with quoted prices for similar assets or liabilities in active markets.

Level 3 - Pricing inputs are unobservable inputs for assets or liabilities for which little or no market data exist and require significant management judgment or estimation. Level 3 assets and liabilities as of June 30, 2011 and Dec. 31, 2010 included embedded foreign currency derivatives, IPL's deferred proceeds, and IPL's and WPL's FTRs, natural gas option contracts and certain commodity contracts that are valued using indicative price quotations with shaping assumptions.

The fair value hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.

Recurring Fair Value Measurements - Disclosure requirements for Alliant Energy's, IPL's and WPL's recurring items subject to fair value measurements at June 30, 2011 and Dec. 31, 2010 were as follows (in millions):

 

Alliant Energy

    June 30, 2011      Dec. 31, 2010  
     Fair      Level      Level      Level      Fair      Level      Level      Level  
     Value      1      2      3      Value      1      2      3  

Assets:

                        

Money market fund investments

    $ 46.3       $ 46.3       $ —         $ —         $ 128.3       $ 128.3       $ —         $ —     

Derivative assets:

                        

Commodity contracts

      29.4         —           8.0         21.4         16.1         —           10.0         6.1   

Foreign exchange contracts

      2.1         —           —           2.1         4.8         —           —           4.8   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivative assets

      31.5         —           8.0         23.5         20.9         —           10.0         10.9   

Deferred proceeds

      66.4         —           —           66.4         152.9         —           —           152.9   

Available-for-sale securities

      2.0         0.8         1.1         0.1         2.1         0.6         1.4         0.1   

Liabilities:

                        

Derivative liabilities:

                        

Commodity contracts

      38.8         —           35.5         3.3         67.2         —           63.9         3.3   

Foreign exchange contracts

      —           —           —           —           0.1         —           —           0.1   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivative liabilities

      38.8         —           35.5         3.3         67.3         —           63.9         3.4   

IPL

   June 30, 2011      Dec. 31, 2010  
     Fair      Level      Level      Level      Fair      Level      Level      Level  
     Value      1      2      3      Value      1      2      3  

Assets:

                        

Money market fund investments

    $ —         $ —         $ —         $ —         $ 5.6       $ 5.6       $ —         $ —     

Derivative assets:

                        

Commodity contracts

      21.2         —           3.5         17.7         8.1         —           3.6         4.5   

Foreign exchange contracts

      —           —           —           —           4.8         —           —           4.8   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivative assets

      21.2         —           3.5         17.7         12.9         —           3.6         9.3   

Deferred proceeds

      66.4         —           —           66.4         152.9         —           —           152.9   

Available-for-sale securities

      2.0         0.8         1.1         0.1         2.1         0.6         1.4         0.1   

Liabilities:

                        

Derivative liabilities:

                        

Commodity contracts

      11.7         —           11.5         0.2         24.0         —           23.8         0.2   

WPL

    June 30, 2011      Dec. 31, 2010  
     Fair      Level      Level      Level      Fair      Level      Level      Level  
     Value      1      2      3      Value      1      2      3  

Assets:

                        

Money market fund investments

    $ 11.1       $ 11.1       $ —         $ —         $ —         $ —         $ —         $ —     

Derivative assets:

                        

Commodity contracts

      8.2         —           4.5         3.7         8.0         —           6.4         1.6   

Liabilities:

                        

Derivative liabilities:

                        

Commodity contracts

      27.1         —           24.0         3.1         43.2         —           40.1         3.1   

Foreign exchange contracts

      —           —           —           —           0.1         —           —           0.1   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total derivative liabilities

      27.1         —           24.0         3.1         43.3         —           40.1         3.2   

Additional information for Alliant Energy's, IPL's and WPL's recurring fair value measurements using significant unobservable inputs (Level 3 inputs) for the three and six months ended June 30 was as follows (in millions):

 

Alliant Energy

    Derivative Assets and (Liabilities), net                
     Commodity     Foreign      Deferred      Available-for-sale  
     Contracts     Contracts      Proceeds      Securities  

Three months ended June 30

    2011     2010     2011      2010      2011     2010      2011      2010  

Beginning balance, April 1

    ($ 1.1 )    ($ 1.8 )    $ 2.1       $ 7.3       $ 129.8      $ —         $ 0.1       $ 0.1   

Total gains (realized/unrealized) included in changes in net assets (a)

      0.5        13.9        —           —           —          —           —           —     

Transfers in and/or out of Level 3 (b)

      0.3        0.6        —           —           —          —           —           —     

Purchases

      21.8        —          —           —           —          —           —           —     

Settlements (c)

      (3.4 )      (2.4 )      —           0.6         (63.4 )      68.1         —           —     
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Ending balance, June 30

    $ 18.1      $ 10.3      $ 2.1       $ 7.9       $ 66.4      $ 68.1       $ 0.1       $ 0.1   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

The amount of total gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30 (a)

    $ 0.5      $ 13.9      $ —         $ —         $ —        $ —         $ —         $ —     
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Alliant Energy

    Derivative Assets and (Liabilities), net                
     Commodity     Foreign      Deferred      Available-for-sale  
     Contracts     Contracts      Proceeds      Securities  

Six months ended June 30

    2011     2010     2011     2010      2011     2010      2011      2010  

Beginning balance, Jan. 1

    $ 2.8      $ 2.6      $ 4.7      $ 3.1       $ 152.9      $ —         $ 0.1       $ 0.1   

Total gains (realized/unrealized) included in changes in net assets (a)

      0.1        12.2        —          3.8         —          —           —           —     

Transfers in and/or out of Level 3 (b)

      0.2        (0.1 )      —          —           —          —           —           —     

Purchases

      21.8        —          —          —           —          —           —           —     

Settlements (c)

      (6.8 )      (4.4 )      (2.6 )      1.0         (86.5 )      68.1         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Ending balance, June 30

    $ 18.1      $ 10.3      $ 2.1      $ 7.9       $ 66.4      $ 68.1       $ 0.1       $ 0.1   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

The amount of total gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30 (a)

    $ 0.1      $ 12.2      $ —        $ 3.8       $ —        $ —         $ —         $ —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

IPL

    Derivative Assets and (Liabilities), net                
     Commodity     Foreign      Deferred      Available-for-sale  
     Contracts     Contracts      Proceeds      Securities  

Three months ended June 30

    2011     2010     2011     2010      2011     2010      2011      2010  

Beginning balance, April 1

    $ 1.4      $ 0.6      $ 2.1      $ 8.4       $ 129.8      $ —         $ 0.1       $ 0.1   

Total gains (realized/unrealized) included in changes in net assets (a)

      0.7        10.7        —          —           —          —           —           —     

Purchases

      18.1        —          —          —           —          —           —           —     

Sales (d)

      —          —          (2.1 )      —           —          —           —           —     

Settlements (c)

      (2.7 )      (1.6 )      —          —           (63.4 )      68.1         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Ending balance, June 30

    $ 17.5      $ 9.7      $ —        $ 8.4       $ 66.4      $ 68.1       $ 0.1       $ 0.1   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

The amount of total gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30 (a)

    $ 0.7      $ 10.7      $ —        $ —         $ —        $ —         $ —         $ —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

IPL

    Derivative Assets and (Liabilities), net                
     Commodity     Foreign      Deferred      Available-for-sale  
     Contracts     Contracts      Proceeds      Securities  

Six months ended June 30

    2011     2010     2011     2010      2011     2010      2011      2010  

Beginning balance, Jan. 1

    $ 4.3      $ 1.4      $ 4.8      $ 4.6       $ 152.9      $ —         $ 0.1       $ 0.1   

Total gains (realized/unrealized) included in changes in net assets (a)

      0.5        10.6        —          3.8         —          —           —           —     

Purchases

      18.1        —          —          —           —          —           —           —     

Sales (d)

      —          —          (2.1 )      —           —          —           —           —     

Settlements (c)

      (5.4 )      (2.3 )      (2.7 )      —           (86.5 )      68.1         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Ending balance, June 30

    $ 17.5      $ 9.7      $ —        $ 8.4       $ 66.4      $ 68.1       $ 0.1       $ 0.1   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

The amount of total gains for the period included in changes in net assets attributable to the change in unrealized gains relating to assets and liabilities held at June 30 (a)

    $ 0.5      $ 10.6      $ —        $ 3.8       $ —        $ —         $ —         $ —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

WPL

    Derivative Assets and (Liabilities), net  
     Commodity     Foreign  
     Contracts     Contracts  

Three months ended June 30

    2011     2010     2011     2010  

Beginning balance, April 1

    ($ 2.5 )    ($ 2.4 )    $ —        ($ 1.1 ) 

Total gains or (losses) (realized/unrealized) included in changes in net assets (a)

      (0.2 )      3.2        —          —     

Transfers in and/or out of Level 3 (b)

      0.3        0.6        —          —     

Purchases

      3.7        —          —          —     

Settlements

      (0.7 )      (0.8 )      —          0.6   
  

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance, June 30

    $ 0.6      $ 0.6      $ —        ($ 0.5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

The amount of total gains or (losses) for the period included in changes in net assets attributable to the change in unrealized gains or (losses) relating to assets and liabilities held at June 30 (a)

    ($ 0.2 )    $ 3.2      $ —        $ —     
  

 

 

    

 

 

    

 

 

    

 

 

  

WPL

    Derivative Assets and (Liabilities), net  
     Commodity     Foreign  
     Contracts     Contracts  

Six months ended June 30

    2011     2010     2011     2010  

Beginning balance, Jan. 1

    ($ 1.5 )    $ 1.2      ($ 0.1 )    ($ 1.5 ) 

Total gains or (losses) (realized/unrealized) included in changes in net assets (a)

      (0.4 )      1.6        —          —     

Transfers in and/or out of Level 3 (b)

      0.2        (0.1 )      —          —     

Purchases

      3.7        —          —          —     

Settlements

      (1.4 )      (2.1 )      0.1        1.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Ending balance, June 30

    $ 0.6      $ 0.6      $ —        ($ 0.5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

The amount of total gains or (losses) for the period included in changes in net assets attributable to the change in unrealized gains or (losses) relating to assets and liabilities held at June 30 (a)

    ($ 0.4 )    $ 1.6      $ —        $ —     
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Gains and losses related to derivative assets and liabilities are recorded in "Regulatory assets" and "Regulatory liabilities" on the Condensed Consolidated Balance Sheets.
(b) Observable market inputs became available for certain commodity contracts previously classified as Level 3. The transfers were valued as of the beginning of the period.
(c) Settlements related to deferred proceeds are due to the change in the carrying amount of receivables sold less the allowance for doubtful accounts associated with the receivables sold and cash proceeds received from the receivables sold.
(d) The foreign exchange contract was transferred from IPL to Resources in connection with the sale of wind project assets in the second quarter of 2011.