XML 43 R29.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Derivative Instruments | 12 Months Ended
--- | ---
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS None of our derivatives are designated as hedging instruments, with the exception of interest rate swaps, which were designated as cash flow hedges. Derivative assets and liabilities are included in the other current and other long-term line items on our balance sheets. The following table shows our derivative assets and derivative liabilities.
|  | December 31, 2021 |  | December 31, 2020
(in millions) |  | Derivative Assets |  | Derivative Liabilities |  | Derivative Assets |  | Derivative Liabilities
Current |  |  |  |  |  |  |  |
Natural gas contracts |  | $ | 60.6 |  |  | $ | 14.0 |  |  | $ | 13.0 |  |  | $ | 12.9 |
FTRs |  | 2.4 |  |  | — |  |  | 2.4 |  |  | — |
Coal contracts |  | 44.0 |  |  | — |  |  | 1.6 |  |  | 0.8 |
Interest rate swaps |  | — |  |  | — |  |  | — |  |  | 6.8 |
Total current |  | 107.0 |  |  | 14.0 |  |  | 17.0 |  |  | 20.5 |
Long-term |  |  |  |  |  |  |  |
Natural gas contracts |  | 4.0 |  |  | 1.1 |  |  | 0.7 |  |  | 1.2 |
Coal contracts |  | 9.0 |  |  | — |  |  | 0.2 |  |  | 0.4 |
Total long-term |  | 13.0 |  |  | 1.1 |  |  | 0.9 |  |  | 1.6 |
Total |  | $ | 120.0 |  |  | $ | 15.1 |  |  | $ | 17.9 |  |  | $ | 22.1 |
Realized gains (losses) on derivatives not designated as hedging instruments are primarily recorded in cost of sales on the income statements. Our estimated notional sales volumes and realized gains (losses) were as follows for the years ended:
|  | December 31, 2021 |  | December 31, 2020 |  | December 31, 2019
(in millions) |  | Volumes |  | Gains |  | Volumes |  | Gains (Losses) |  | Volumes |  | Gains (Losses)
Natural gas contracts |  | 197.6 Dth |  | $ | 136.5 |  |  | 188.6 Dth |  | $ | (54.1) |  |  | 183.9 Dth |  | $ | (27.1) |
FTRs |  | 28.2 MWh |  | 17.7 |  |  | 29.8 MWh |  | 4.1 |  |  | 31.2 MWh |  | 16.3 |
Total |  |  |  | $ | 154.2 |  |  |  |  | $ | (50.0) |  |  |  |  | $ | (10.8) |
At December 31, 2021 and 2020, we had posted cash collateral of $13.9 million and $18.9 million, respectively. We had also received cash collateral of $13.2 million at December 31, 2021. The following table shows derivative assets and derivative liabilities if derivative instruments by counterparty were presented net on our balance sheets:
|  | December 31, 2021 |  | December 31, 2020 |
(in millions) |  | Derivative Assets |  | Derivative Liabilities |  | Derivative Assets |  | Derivative Liabilities |
Gross amount recognized on the balance sheet |  | $ | 120.0 |  |  | $ | 15.1 |  |  | $ | 17.9 |  |  | $ | 22.1 |  |
Gross amount not offset on the balance sheet |  | (15.2) |  | (1) | (9.2) |  | (2) | (6.9) |  |  | (7.7) |  | (3)
Net amount |  | $ | 104.8 |  |  | $ | 5.9 |  |  | $ | 11.0 |  |  | $ | 14.4 |  |
(1) Includes cash collateral received of $6.4 million. (2) Includes cash collateral posted of $0.4 million. (3) Includes cash collateral posted of $0.8 million. Cash Flow Hedges Until their expiration on November 15, 2021, we had two interest rate swaps with a combined notional value of $250.0 million to hedge the variable interest rate risk associated with our 2007 Junior Notes. The swaps provided a fixed interest rate of 4.9765% on $250.0 million of the $500.0 million of outstanding 2007 Junior Notes. As these swaps qualified for cash flow hedge accounting treatment, the related gains and losses were deferred in accumulated other comprehensive loss and were amortized to interest expense as interest was accrued on the 2007 Junior Notes. We previously entered into forward interest rate swap agreements to mitigate the interest rate exposure associated with the issuance of long-term debt related to the acquisition of Integrys. These swap agreements were settled in 2015, and we continue to amortize amounts out of accumulated other comprehensive loss into interest expense over the periods in which the interest costs are recognized in earnings. The table below shows the amounts related to these cash flow hedges recorded in other comprehensive income (loss) and in earnings, along with our total interest expense on the income statements, for the years ended December 31:
(in millions) |  | 2021 |  | 2020 |  | 2019
Derivative gain (loss) recognized in other comprehensive income / loss |  | $ | 0.8 |  |  | $ | (5.9) |  |  | $ | (4.8) |
Net derivative gain (loss) reclassified from accumulated other comprehensive loss to interest expense |  | (1.3) |  |  | (2.1) |  |  | 1.1 |
Total interest expense line item on the income statements |  | 471.1 |  |  | 493.7 |  |  | 501.5 |
We estimate that during the next twelve months $0.4 million will be reclassified from accumulated other comprehensive loss as a reduction to interest expense.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration