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Accumulated Other Comprehensive Loss
 6 Months Ended
Jun. 30, 2011
Accumulated Other Comprehensive Loss  
Accumulated Other Comprehensive Loss
20. Accumulated Other Comprehensive Loss

The following table displays the components of Accumulated Other Comprehensive Loss.

 

(in millions)

    June 30, 2011     December 31, 2010  

Other comprehensive income (loss), before tax:

     

Unrealized gains on securities

    $ 7.5      $ 6.1   

Tax expense on unrealized gains on securities

      (2.9 )      (2.4 ) 

Unrealized losses on cash flow hedges

      (53.6 )      (56.4 ) 

Tax benefit on unrealized losses on cash flow hedges

      20.5        21.6   

Unrecognized pension and OPEB costs

      (41.8 )      (43.3 ) 

Tax benefit on unrecognized pension and OPEB costs

      15.8        16.5   
                

Total Accumulated Other Comprehensive Loss, net of taxes

    $ (54.5 )    $ (57.9 ) 
                

Equity Investment

During 2008, Millennium, in which Columbia Transmission has an equity investment, entered into three interest rate swap agreements with a notional amount totaling $420.0 million with seven counterparties. During August 2010, Millennium completed the refinancing of its long-term debt, securing permanent fixed-rate financing through the private placement issuance of two tranches of notes totaling $725.0 million: $375.0 million at 5.33% due June 30, 2027, and $350.0 million at 6.00% due June 30, 2032. Upon the issuance of these notes, Millennium repaid all outstanding borrowings under the credit agreement, terminated the sponsor guarantee, and cash settled the interest rate hedges. These interest rate swap derivatives were accounted for as cash flow hedges by Millennium. As Millennium is an equity method investment, NiSource is required to recognize a proportional share of Millennium's OCI. Millennium is amortizing the unrealized loss related to these terminated interest rate swaps into earnings using the effective interest method through interest expense as interest payments are made. NiSource records its proportionate share of the amortization as Equity Earnings in Unconsolidated Affiliates at the Condensed Statements of Consolidated Income. NiSource's proportionate share of the remaining unrealized loss, net of tax, was $20.6 million as of June 30, 2011 and $21.1 million as of December 31, 2010, which are included in unrealized losses on cash flow hedges above.