|
Derivatives and Fair Value Measurements (Tables)
|
9 Months Ended |
|
Sep. 30, 2012
|
| Notional Amounts Under Swaps Contracts |
The
differential is calculated based on the notional amounts under the
contracts, which are detailed in the table below (thousands of
dekatherms):
|
|
|
|
|
|
|
|
|
| |
|
September 30, 2012 |
|
|
December 31, 2011 |
|
|
|
|
|
Swaps contracts
|
|
|
13,806 |
|
|
|
10,827 |
|
|
|
|
|
|
|
|
|
|
|
| Amount Of Gain Or (Loss) Recognized In Income On Derivative |
Gains (losses)
recognized in income for derivatives not designated as hedging
instruments:
(Thousands of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| |
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|
|
Three Months Ended |
|
|
Nine Months Ended |
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|
Twelve Months Ended |
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| |
|
Location of Gain or (Loss) |
|
September 30 |
|
|
September 30 |
|
|
September 30 |
|
|
Instrument
|
|
Recognized in Income on
Derivative
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
|
|
|
|
|
|
|
|
Swaps
|
|
Net cost of gas sold |
|
$ |
3,617 |
|
|
$ |
(7,570 |
) |
|
$ |
(945 |
) |
|
$ |
(9,539 |
) |
|
$ |
(9,607 |
) |
|
$ |
(7,216 |
) |
|
Swaps
|
|
Net cost of gas sold |
|
|
(3,617 |
)* |
|
|
7,570 |
* |
|
|
945 |
* |
|
|
9,539 |
* |
|
|
9,607 |
* |
|
|
7,216 |
* |
|
|
|
|
|
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|
|
|
|
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|
|
|
|
|
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|
|
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Total
|
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|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
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|
|
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|
*
Represents the
impact of regulatory deferral accounting treatment under U.S. GAAP
for rate-regulated entities.
|
| Gains (Losses) On Derivatives In Cash Flow Hedging |
Gains (losses)
recognized in other comprehensive income for derivatives designated
as cash flow hedging instruments:
(Thousands of
dollars)
|
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|
|
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|
|
|
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|
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| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
Twelve Months Ended |
|
| |
|
September 30 |
|
|
September 30 |
|
|
September 30 |
|
| |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
Amount of gain/(loss)
realized/unrealized on FSIRS recognized in other comprehensive
income on derivative
|
|
$ |
- |
|
|
$ |
(13,237 |
) |
|
$ |
2,959 |
|
|
$ |
(16,382 |
) |
|
$ |
1,383 |
|
|
$ |
(2,288 |
) |
|
| Fair Values Of Swaps And FSIRS In Balance Sheet Location |
The following
table sets forth the fair values of the Company’s Swaps and
FSIRS and their location in the balance sheets (thousands of
dollars):
Fair values of
derivatives not designated as hedging
instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| September 30,
2012 |
|
Asset |
|
|
Liability |
|
|
|
|
|
Instrument
|
|
Balance
Sheet Location
|
|
Derivatives |
|
|
Derivatives |
|
|
Net Total |
|
|
Swaps
|
|
Deferred charges and other
assets
|
|
$ |
662 |
|
|
$ |
- |
|
|
$ |
662 |
|
|
Swaps
|
|
Prepaids and other current
assets
|
|
|
1,783 |
|
|
|
(880 |
) |
|
|
903 |
|
|
Swaps
|
|
Other current
liabilities
|
|
|
429 |
|
|
|
(738 |
) |
|
|
(309 |
) |
|
Swaps
|
|
Other deferred
credits
|
|
|
87 |
|
|
|
(235 |
) |
|
|
(148 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Total
|
|
|
|
$ |
2,961 |
|
|
$ |
(1,853 |
) |
|
$ |
1,108 |
|
|
|
|
|
|
|
|
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|
| December 31, 2011 |
|
|
|
Asset |
|
|
Liability |
|
|
|
|
|
Instrument
|
|
Balance
Sheet Location
|
|
Derivatives |
|
|
Derivatives |
|
|
Net
Total |
|
|
Swaps
|
|
Other current
liabilities
|
|
$ |
- |
|
|
$ |
(11,122 |
) |
|
$ |
(11,122 |
) |
|
Swaps
|
|
Other deferred
credits
|
|
|
- |
|
|
|
(621 |
) |
|
|
(621 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
$ |
- |
|
|
$ |
(11,743 |
) |
|
$ |
(11,743 |
) |
|
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|
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|
| Fair values of
derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, 2011 |
|
|
|
Asset |
|
|
Liability |
|
|
|
|
|
Instrument
|
|
Balance
Sheet Location
|
|
Derivatives |
|
|
Derivatives |
|
|
Net
Total |
|
|
FSIRS
|
|
Other current
liabilities
|
|
$ |
- |
|
|
$ |
(24,713 |
) |
|
$ |
(24,713 |
) |
|
|
|
|
|
|
|
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|
|
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|
| Paid To And Received From Counterparties For Settlements Of Matured Swaps |
The following
table shows the amounts Southwest paid to counterparties for
settlements of matured Swaps.
|
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|
|
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|
| (Thousands of dollars) |
|
Three Months Ended
September
30, 2012 |
|
|
Nine Months Ended
September 30, 2012 |
|
|
Twelve Months Ended
September
30, 2012 |
|
|
|
|
|
|
Paid to
counterparties
|
|
$ |
2,628 |
|
|
$ |
13,797 |
|
|
$ |
19,385 |
|
|
|
|
|
|
|
|
|
|
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|
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|
| Regulatory Assets/Liabilities Offsetting Derivatives At Fair Value In The Balance Sheet |
The following
table details the regulatory assets/(liabilities) offsetting the
derivatives at fair value in the balance sheets (thousands of
dollars).
|
|
|
|
|
|
|
| September 30,
2012 |
|
|
|
|
Instrument
|
|
Balance
Sheet Location |
|
Net
Total |
|
|
Swaps
|
|
Other deferred credits |
|
$ |
(662 |
) |
|
Swaps
|
|
Other current liabilities |
|
|
(903 |
) |
|
Swaps
|
|
Prepaids and other current assets |
|
|
309 |
|
|
Swaps
|
|
Deferred charges and other assets |
|
|
148 |
|
|
|
|
| December 31, 2011 |
|
|
|
|
|
|
Instrument
|
|
Balance
Sheet Location |
|
Net
Total |
|
|
Swaps
|
|
Prepaids and other current assets |
|
$ |
11,122 |
|
|
Swaps
|
|
Deferred charges and other assets |
|
|
621 |
|
|
| Significant Other Observable Inputs |
The following
table sets forth the Company’s Level 2 financial assets and
liabilities recorded at fair value:
|
|
|
|
|
|
|
|
|
| (Thousands of dollars) |
|
September 30, 2012 |
|
|
December 31, 2011 |
|
|
|
|
|
Assets at fair
value:
|
|
|
|
|
|
|
|
|
|
Prepaids and other current
assets - Swaps
|
|
$ |
903 |
|
|
$ |
- |
|
|
Deferred charges and other
assets - Swaps
|
|
|
662 |
|
|
|
- |
|
|
Liabilities at fair
value:
|
|
|
|
|
|
|
|
|
|
Other current liabilities -
Swaps
|
|
|
(309 |
) |
|
|
(11,122 |
) |
|
Other deferred credits -
Swaps
|
|
|
(148 |
) |
|
|
(621 |
) |
|
Other current liabilities -
FSIRS
|
|
|
- |
|
|
|
(24,713 |
) |
|
|
|
|
|
|
|
|
|
|
Net Assets
(Liabilities)
|
|
$ |
1,108 |
|
|
$ |
(36,456 |
) |
|
|
|
|
|
|
|
|
|
|