OG&E 2009 Annual Report Download - page 80

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expected. Forecasted transactions designated as the hedged transaction in a cash flow hedge are regularly evaluated to assess whether
they continue to be probable of occurring. If the forecasted transactions are no longer probable of occurring, hedge accounting will
cease on a prospective basis and all future changes in the fair value of the derivative will be recognized directly in earnings. If the
forecasted transactions are no longer reasonably possible of occurring, any associated amounts recorded in Accumulated Other
Comprehensive Income will also be recognized directly in earnings.
At December 31, 2009 and 2008, the Company had no outstanding treasury lock agreements that were designated as cash
flow hedges.
Fair Value Hedges
For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as
the offsetting loss or gain on the hedged item attributable to the hedge risk are recognized currently in earnings. The Company
includes the gain or loss on the hedged items in Operating Revenues as the offsetting loss or gain on the related hedging derivative.
At December 31, 2009 and 2008, the Company had no outstanding commodity derivative instruments or treasury lock
agreements that were designated as fair value hedges.
Derivatives Not Designated As Hedging Instruments
For derivative instruments that are not designated as either a cash flow or fair value hedge, the gain or loss on the derivative
is recognized currently in earnings.
At December 31, 2009 and 2008, the Company had no material outstanding commodity derivative instruments that were not
designated as either a cash flow or fair value hedge.
Credit-Risk Related Contingent Features in Derivative Instruments
At December 31, 2009, the Company had no derivative instruments that contain credit-risk related contingent features.
6. Supplemental Cash Flow Information
The following table discloses information about investing and financing activities that affect recognized assets and liabilities
but which do not result in cash receipts or payments. Also disclosed in the table is cash paid for interest, net of interest capitalized,
and cash paid for income taxes, net of income tax refunds.
Year ended December 31 (In millions) 2009 2008 2007
NON-CASH INVESTING AND FINANCING ACTIVITIES
OU Spirit future installment payments to developer $ 3.9 $ --- $ ---
Power plant long-term service agreement --- 3.5 0.7
Capital lease for distribution equipment --- 0.3 ---
SUPPLEMENTAL CASH FLOW INFORMATION
Cash Paid During the Period for
Interest (net of interest capitalized of $8.3, $4.0, $4.0) $ 84.7 $ 67.1 $ 57.9
Income taxes (net of income tax refunds) 1.8 29.3 30.2
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