OG&E 2013 Annual Report Download - page 53

The following table summarizes significant amounts reclassified out
of accumulated other comprehensive loss by the respective line items
in net income during the year ended December 31, 2013.
Amount Affected Line Item
Reclassified from in the Statement
Accumulated Other Where Net Income
(In millions, year ended December 31) Comprehensive Loss is Presented
Details about accumulated other
comprehensive loss components
Gains (losses) on cash flow hedges
Commodity contracts $(1.0) Cost of sales
Interest rate swap (0.4) Interest expense
(1.4) Total before tax
(0.5) Tax benefit
$(0.9) Net of tax
Amortization of defined benefit
pension items
Actuarial gains (losses) $(6.1) (A)
Settlement cost (4.9) (A)
(11.0) Total before tax
(4.3) Tax benefit
(6.7) Net of tax
(0.1) Noncontrolling interest
Net of tax and
$(6.6) noncontrolling interest
Amortization of postretirement
benefit plan items
Actuarial gains (losses) $(3.3) (A)
Prior service cost 2.9 (A)
(0.4) Total before tax
(0.2) Tax benefit
$(0.2) Net of tax
Net of tax and
Total reclassifications for the period $(7.7) noncontrolling interest
(A) These accumulated other comprehensive income (loss) components are included in
the computation of net periodic benefit cost (see Note 13 for additional information).
The amounts in accumulated other comprehensive loss at
December 31, 2013 that are expected to be recognized into earnings
in 2014 are as follows:
(In millions)
Pension plan and restoration
of retirement income plan
Net loss $(1.7)
Prior service cost (0.1)
Postretirement benefit plans
Net loss (0.8)
Prior service cost 1.8
Deferred commodity contracts hedging gains –
Deferred interest rate swap hedging losses (0.2)
Total, net of tax $(1.0)
OGE Energy Corp. 47
Environmental Costs
Accruals for environmental costs are recognized when it is probable
that a liability has been incurred and the amount of the liability can be
reasonably estimated. Costs are charged to expense or deferred as a
regulatory asset based on expected recovery from customers in future
rates, if they relate to the remediation of conditions caused by past
operations or if they are not expected to mitigate or prevent contamina-
tion from future operations. Where environmental expenditures relate to
facilities currently in use, such as pollution control equipment, the costs
may be capitalized and depreciated over the future service periods.
Estimated remediation costs are recorded at undiscounted amounts,
independent of any insurance or rate recovery, based on prior experi-
ence, assessments and current technology. Accrued obligations are
regularly adjusted as environmental assessments and estimates are
revised, and remediation efforts proceed. For sites where OG&E has
been designated as one of several potentially responsible parties, the
amount accrued represents OG&E’s estimated share of the cost. The
Company had $6.1 million and $5.8 million in accrued environmental
liabilities at December 31, 2013 and 2012, respectively, which are
included in the summary of asset retirement obligations above.
Forward Stock Split
On May 16, 2013, the Company’s Board of Directors approved a 2-for-1
forward stock split of the Company’s common stock, effective July 1,
2013, which entitled each shareholder of record to receive two shares
for every one share of Company stock owned by the shareholder. In
connection with the stock split, an amendment to the Company’s Articles
of Incorporation was approved on May 16, 2013 which increased the
number of authorized shares of common stock from 225 million to
450 million. All share and per share amounts presented within this
Form 10-K reflect the effects of the stock split.
Reclassifications
As discussed in Note 14, the former natural gas transportation and
storage segment and natural gas gathering and processing segment
have been combined into the natural gas midstream operations seg-
ment and have been restated for all prior periods presented. Effective
May 1, 2013, the Company deconsolidated its previously held invest-
ment in Enogex Holdings and acquired an equity interest in Enable.