Chesapeake Energy 2015 Annual Report Download - page 127

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
123
The components of marketing, gathering and compression revenues for the years ended December 31, 2015,
2014 and 2013 are presented below.
Years Ended December 31,
2015 2014 2013
($ in millions)
Marketing, gathering and compression revenues..................................... $ 7,077 $ 12,224 $ 9,559
Gains on undesignated supply contract derivatives ................................. 296 1 —
Total marketing, gathering and compression revenues.................... $ 7,373 $ 12,225 $ 9,559
The components of interest expense for the years ended December 31, 2015, 2014 and 2013 are presented
below.
Years Ended December 31,
2015 2014 2013
($ in millions)
Interest expense on senior notes ............................................................. $ 682 $ 704 $ 740
Interest expense on term loan .................................................................. — 36 116
Amortization of loan discount, issuance costs and other.......................... 59 42 91
Interest expense on credit facilities .......................................................... 12 28 38
Gains on terminated fair value hedges ..................................................... (3) (3) (5)
(Gains) losses on undesignated interest rate derivatives ......................... (9) (81) 63
Capitalized interest ................................................................................... (424) (637) (816)
Total interest expense...................................................................... $ 317 $ 89 $ 227
Effect of Derivative Instruments – Accumulated Other Comprehensive Income (Loss)
A reconciliation of the changes in accumulated other comprehensive income (loss) in our consolidated statements
of stockholders’ equity related to our cash flow hedges is presented below.
Years Ended December 31,
2015 2014 2013
Before
Tax After Tax Before Tax After Tax Before Tax After Tax
($ in millions)
Balance, beginning of period .......................................... $ (231) $ (143) $ (269) $ (167) $ (304) $ (189)
Net change in fair value .............................................. 32 20 1 1 3 2
Losses reclassified to income..................................... 39 24 37 23 32 20
Balance, end of period .................................................... $ (160) $ (99) $ (231) $ (143) $ (269) $ (167)
Approximately $113 million of the $99 million of accumulated other comprehensive loss as of December 31, 2015
represented the net deferred loss associated with commodity derivative contracts that were previously designated as
cash flow hedges for which the hedged production is still expected to occur. Deferred gain or loss amounts will be
recognized in earnings in the month in which the originally forecasted hedged production occurs. As of December 31,
2015, we expect to transfer approximately $21 million of net loss included in accumulated other comprehensive income
to net income (loss) during the next 12 months. The remaining amounts will be transferred by December 31, 2022.