Vectren 2013 Annual Report Download - page 62

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Contractual Obligations
The following is a summary of contractual obligations at December 31, 2013:
(In millions) Total 2014 2015 2016 2017 2018 Thereafter
Long-term debt (1) $ 1,807.1 $ 30.0 $ 279.8 $ 173.0 $ 75.0 $ 100.0 $ 1,149.3
Short-term debt 68.6 68.6 — — — — —
Long-term debt interest
commitments 987.7 82.8 81.4 67.4 65.3 60.4 630.4
Plant and nonutility plant
purchase commitments 19.6 19.6 — — — — —
Operating leases 22.3 6.9 5.0 2.9 1.3 1.2 5.0
Total (2) $ 2,905.3 $ 207.9 $ 366.2 $ 243.3 $ 141.6 $ 161.6 $ 1,784.7
(1) The debt due in 2014 is comprised of debt issued by Vectren Capital.
(2) The Company has other long-term liabilities that total approximately $166 million. This amount is comprised of the
following: pension obligations $20 million; postretirement obligations $47 million; deferred compensation and share-
based compensation obligations $41 million; asset retirement obligations $41 million; investment tax credits $5 million;
environmental remediation obligations $6 million; and other obligations including unrecognized tax benefits totaling $6
million. Based on the nature of these items, their expected settlement dates cannot be estimated.
The Company’s regulated utilities have both firm and non-firm commitments to purchase natural gas, electricity, and coal as well
as certain transportation and storage rights. Costs arising from these commitments, while significant, are pass-through costs,
generally collected dollar-for-dollar from retail customers through regulator-approved cost recovery mechanisms. Because of
the pass through nature of these costs, they have not been included in the listing of contractual obligations.
Comparison of Historical Sources & Uses of Liquidity
Operating Cash Flow
The Company's primary source of liquidity to fund capital requirements has been cash generated from operations, which totaled
$587.0 million in 2013, compared to $387.4 million in 2012 and $416.9 million in 2011.
The $199.6 million increase in operating cash flow in 2013 compared to 2012 is primarily due to a greater level of cash from
working capital in 2013 as compared to 2012 mostly due to higher inventories at SIGECO and an increase in accounts
receivable in 2012. The change in noncurrent assets was primarily driven by the deferral for future recovery of certain coal
costs pursuant to a regulatory order in the prior year. In addition, contributions to benefit plans were $6.8 million lower during
2013 compared to 2012.
In 2012, operating cash flows decreased $29.5 million compared to 2011. This decrease was primarily due to greater working
capital needs to support growth in the Infrastructure Services segment and lower cash generated by the Coal Mining segment.
The deferral for future recovery of certain coal costs pursuant to a regulatory order is the primary use of cash impacting the
change in noncurrent assets. Increased earnings overall, along with lower contributions to employee benefit plans in 2012,
somewhat offset these decreases.
Tax payments in the periods presented were favorably impacted by federal legislation extending bonus depreciation and a
change in the tax method for recognizing repair and maintenance activities. Federal legislation allowing bonus depreciation on
qualifying capital expenditures was 100 percent for 2011, 50 percent for 2012, and 50 percent for 2013. A significant portion of
the Company’s capital expenditures qualified for this bonus treatment.