APS 2013 Annual Report Download - page 77
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Table of Contents
The following table shows the net pretax changes in mark-to-market of our derivative positions in 2013 and 2012 (dollars in millions):
2013 2012
Mark-to-market of net positions at beginning of year $(122) $ (222)
Recognized in earnings (a):
Change in mark-to-market gains (losses) for future period deliveries (1) 1
Decrease in regulatory asset 637
Recognized in OCI:
Change in mark-to-market losses for future period deliveries (b) —(37)
Mark-to-market losses realized during the period 44 99
Change in valuation techniques — —
Mark-to-market of net positions at end of year $(73)$(122)
(a) Represents the amounts reflected in income after the effect of PSA deferrals.
(b) The changes in mark-to-market recorded in OCI are due primarily to changes in forward natural gas prices.
The table below shows the fair value of maturities of our derivative contracts (dollars in millions) at December 31, 2013 by maturities and by the
type of valuation that is performed to calculate the fair values, classified in their entirety based on the lowest level of input that is significant to the fair value
measurement. See Note 1, “Derivative Accounting” and “Fair Value Measurements,” for more discussion of our valuation methods.
Source of Fair Value 2014 2015 2016 2017 2018
Years
thereafter
Total
fair
value
Observable prices
provided by other
external sources $ (15) $ (6) $ (3) $ — $ — $ — $ (24)
Prices based on
unobservable inputs (11)(12)(12) (5) (4) (5) (49)
Total by maturity $ (26)$(18)$ (15)$ (5)$(4)$ (5)$(73)
74