OG&E 2011 Annual Report Download - page 30

28 OGE Energy Corp.
Financial Condition
The balance of Accounts Receivable, Net was $322.5 million and
$277.9 million at December 31, 2011 and 2010, respectively, an increase
of $44.6 million, or 16.0 percent, primarily due to an increase in billings
to OG&E’s customers in 2011 while customers received a refund in 2010
for the over collection of fuel.
The balance of Fuel Inventories was $100.7 million and $158.8 million
at December 31, 2011 and 2010, respectively, a decrease of $58.1 million,
or 36.6 percent, primarily due to lower coal inventory balances at OG&E
from higher coal generation.
The balance of Property, Plant and Equipment in Service was
$10,315.9 million and $9,188.0 million at December 31, 2011 and 2010,
respectively, an increase of $1,127.9 million, or 12.3 percent, primarily
due to assets placed in service in 2011, including the Crossroads wind
farm, distribution and transmission projects and Smart Grid assets at
OG&E as well as gathering and processing projects at Enogex.
The balance of Intangible Assets, Net was $137.0 million and
$2.8 million at December 31, 2011 and 2010, respectively, an increase
of $134.2 million, primarily due to certain gas gathering acquisitions as
discussed in Note 3 of Notes to Consolidated Financial Statements.
The balance of Goodwill was $39.4 million at December 31, 2011 with
no balance at December 31, 2010 due to certain gas gathering acquisitions
as discussed in Note 3 of Notes to Consolidated Financial Statements.
The balance of Short-Term Debt was $277.1 million and $145.0 million
at December 31, 2011 and 2010, respectively, an increase of $132.1 mil-
lion, or 91.1 percent, primarily due to an increase in commercial paper
borrowings in 2011 for dividend and bond interest payments, capital
expenditures for various transmission projects and Crossroads at OG&E
and gathering and processing expansion projects at Enogex and daily
operational needs partially offset by proceeds received from contributions
from the ArcLight group in 2011 and the equity sale of a 0.1 percent
membership interest in Enogex Holdings to the ArcLight group in
February 2011, a portion of which were used to repay outstanding
commercial paper borrowings.
The balance of Accounts Payable was $388.0 million and $321.7 million
at December 31, 2011 and 2010, respectively, an increase of $66.3 mil-
lion, or 20.6 percent, primarily due to the timing of outstanding checks
clearing the bank and an increase in accruals related to Crossroads and
Smart Grid projects at OG&E and expansion projects at Enogex.
The balance of Current Price Risk Management Liabilities was
$0.4 million and $16.8 million at December 31, 2011 and 2010, respec-
tively, a decrease of $16.4 million or 97.6 percent, primarily due to Enogex
hedges of keep-whole processing agreements that matured during 2011.
The balance of Fuel Clause Over Recoveries was $7.7 million and
$29.9 million at December 31, 2011 and 2010, respectively, a decrease
of $22.2 million, or 74.2 percent, primarily due to the fact that the amount
billed to retail customers was lower than OG&E’s cost of fuel. OG&E’s
fuel recovery clauses are designed to smooth the impact of fuel price
volatility on customers’ bills. As a result, OG&E under recovers fuel
costs in periods of rising fuel prices above the baseline charge for fuel
and over recovers fuel costs when prices decline below the baseline
charge for fuel. Provisions in the fuel clauses are intended to allow
OG&E to amortize under and over recovery balances.
The balance of Long-Term Debt was $2,737.1 million and
$2,362.9 million at December 31, 2011 and 2010, respectively, an increase
of $374.2 million, or 15.8 percent, due to the issuance of $250 million
of long-term debt in May 2011 and an increase in borrowings under
Enogex LLC’s revolving credit agreement.
The balance of Accrued Benefit Obligations was $360.8 million and
$372.4 million at December 31, 2011 and 2010, respectively, a decrease
of $11.6 million, or 3.1 percent, primarily due to amendments to the
Company’s retiree medical plan adopted in January 2011 (see Note 14
of Notes to Consolidated Financial Statements) and qualified defined
benefit retirement plan (“Pension Plan”) contributions in 2011 partially
offset by net losses for the Company’s Pension Plan, restoration of
retirement income plan and postretirement benefit plans.
The balance of Deferred Income Taxes was $1,651.4 million and
$1,434.8 million at December 31, 2011 and 2010, respectively, an increase
of $216.6 million, or 15.1 percent, primarily due to accelerated bonus tax
depreciation partially offset by the Company being in a tax net operating
loss position in 2011.
The balance of Regulatory Liabilities was $230.7 million and
$193.1 million at December 31, 2011 and 2010, respectively, an increase
of $37.6 million, or 19.5 percent, primarily due to increases related to
removal obligations for OG&E distribution, transmission and generation
assets and Oklahoma pension regulatory liabilities.
The balance of Other Deferred Liabilities was $61.2 million and
$45.3 million at December 31, 2011 and 2010, respectively, an increase
of $15.9 million, or 35.1 percent, primarily due to an asset retirement
obligation related to the Crossroads wind farm.
The balance of Accumulated Other Comprehensive Loss was
$40.6 million and $60.2 million at December 31, 2011 and 2010, respec-
tively, a decrease of $19.6 million, or 32.6 percent, primarily due to
amendments to the Company’s retiree medical plan adopted in January
2011 (see Note 14 of Notes to Consolidated Financial Statements) and
NGLs hedges maturing in 2011 partially offset by net losses for the
Pension Plan, restoration of retirement income plan and postretirement
benefit plans.
The balance of Noncontrolling Interests was $256.0 million and
$110.4 million at December 31, 2011 and 2010, respectively, an increase
of $145.6 million, primarily due to contributions from the ArcLight group in
2011 and the equity sale of a 0.1 percent membership interest in Enogex
Holdings to the ArcLight group in February 2011 partially offset by distri-
butions to the ArcLight group in 2011.