Xcel Energy 2014 Annual Report Download - page 108

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Estimated remediation costs, excluding inflationary increases, are recorded. The estimates are based on experience, an assessment of
the current situation and the technology currently available for use in the remediation. The recorded costs are regularly adjusted as
estimates are revised and remediation proceeds. If other participating PRPs exist and acknowledge their potential involvement with a
site, costs are estimated and recorded only for Xcel Energy’s expected share of the cost. Any future costs of restoring sites where
operation may extend indefinitely are treated as a capitalized cost of plant retirement. The depreciation expense levels recoverable in
rates include a provision for removal expenses, which may include final remediation costs. Removal costs recovered in rates before
the related costs are incurred are classified as a regulatory liability.
See Note 13 for further discussion of environmental costs.
Benefit Plans and Other Postretirement Benefits — Xcel Energy maintains pension and postretirement benefit plans for eligible
employees. Recognizing the cost of providing benefits and measuring the projected benefit obligation of these plans under applicable
accounting guidance requires management to make various assumptions and estimates.
Based on the regulatory recovery mechanisms of Xcel Energy Inc.’s utility subsidiaries, certain unrecognized actuarial gains and
losses and unrecognized prior service costs or credits are recorded as regulatory assets and liabilities, rather than OCI.
See Note 9 for further discussion of benefit plans and other postretirement benefits.
Guarantees — Xcel Energy recognizes, upon issuance or modification of a guarantee, a liability for the fair market value of the
obligation that has been assumed in issuing the guarantee. This liability includes consideration of specific triggering events and other
conditions which may modify the ongoing obligation to perform under the guarantee.
The obligation recognized is reduced over the term of the guarantee as Xcel Energy is released from risk under the guarantee. See
Note 13 for specific details of issued guarantees.
Reclassifications — Certain previously reported amounts have been reclassified to conform to the current year presentation.
Subsequent Events — Management has evaluated the impact of events occurring after Dec. 31, 2014 up to the date of issuance of
these consolidated financial statements. These statements contain all necessary adjustments and disclosures resulting from that
evaluation.
2. Accounting Pronouncements
Recently Issued
Revenue Recognition — In May 2014, the FASB issued Revenue from Contracts with Customers, Topic 606 (ASU No. 2014-09),
which provides a framework for the recognition of revenue, with the objective that recognized revenues properly reflect amounts an
entity is entitled to receive in exchange for goods and services. This guidance, which includes additional disclosure requirements
regarding revenue, cash flows and obligations related to contracts with customers, will be effective for interim and annual reporting
periods beginning after Dec. 15, 2016. Xcel Energy is currently evaluating the impact of adopting ASU 2014-09 on its consolidated
financial statements.
3. Selected Balance Sheet Data
(Thousands of Dollars) Dec. 31, 2014 Dec. 31, 2013
Accounts receivable, net
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 884,225 $ 797,267
Less allowance for bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (57,719) (53,107)
$ 826,506 $ 744,160
(Thousands of Dollars) Dec. 31, 2014 Dec. 31, 2013
Inventories
Materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 244,099 $ 225,308
Fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183,249 189,485
Natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169,835 161,745
$ 597,183 $ 576,538