XML 73 R13.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Derivative Instruments and Hedging Activities | 3 Months Ended
--- | ---
Mar. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES There have been no changes to the information disclosed under Derivatives and Hedging Activities in Note 1 — General and Summary of Significant Accounting Policies included in Item 8. — Financial Statements and Supplementary Data in the 2013 Form 10-K. Volume of Activity The following tables set forth, by type of derivative, the Company’s outstanding notional under its derivatives and the weighted-average remaining term as of March 31, 2014 regardless of whether the derivative instruments are in qualifying cash flow hedging relationships:
|  | Current |  | Maximum |  |  |  |
Interest Rate and Cross Currency |  | Derivative Notional |  | Derivative Notional Translated to USD |  | Derivative Notional |  | Derivative Notional Translated to USD |  | Weighted-Average Remaining Term |  | % of Debt Currently Hedged by Index(2)
|  | (in millions) |  | (in years) |  |
Interest Rate Derivatives:(1) |  |  |  |  |  |  |  |  |  |  |  |
LIBOR (U.S. Dollar) |  | 3,621 |  |  | $ | 3,621 |  |  | 5,515 |  |  | $ | 5,515 |  |  | 10 |  | 73 | %
EURIBOR (Euro) |  | 570 |  |  | 785 |  |  | 570 |  |  | 785 |  |  | 8 |  | 86 | %
LIBOR (British Pound) |  | 67 |  |  | 112 |  |  | 67 |  |  | 112 |  |  | 12 |  | 84 | %
Cross Currency Swaps: |  |  |  |  |  |  |  |  |  |  |  |
Chilean Unidad de Fomento |  | 6 |  |  | 241 |  |  | 6 |  |  | 241 |  |  | 8 |  | 85 | %
_____________________________
(1) | The Company’s interest rate derivative instruments primarily include accreting and amortizing notionals. The maximum derivative notional represents the largest notional at any point between March 31, 2014 and the maturity of the derivative instrument, which includes forward-starting derivative instruments. The interest rate and cross currency derivatives range in maturity through 2033 and 2028, respectively.
(2) | The percentage of variable-rate debt currently hedged is based on the related index and excludes forecasted issuances of debt and variable-rate debt tied to other indices where the Company has no interest rate derivatives.
|  | March 31, 2014
Foreign Currency Derivatives |  | Notional(1) |  | Notional Translated to USD |  | Weighted-Average Remaining Term (2)
|  | (in millions) |  | (in years)
Foreign Currency Options and Forwards: |  |  |  |  |  |
Chilean Unidad de Fomento |  | 13 |  |  | $ | 548 |  |  | 1
Chilean Peso |  | 102,538 |  |  | 186 |  |  | <1
Brazilian Real |  | 241 |  |  | 106 |  |  | <1
Euro |  | 126 |  |  | 174 |  |  | <1
Colombian Peso |  | 205,606 |  |  | 105 |  |  | <1
British Pound |  | 30 |  |  | 51 |  |  | <1
Philippine Peso |  | 1,376 |  |  | 31 |  |  | <1
Embedded Foreign Currency Derivatives: |  |  |  |  |  |
Argentine Peso |  | 796 |  |  | 99 |  |  | 10
Kazakhstani Tenge |  | 2,449 |  |  | 13 |  |  | 2
Brazilian Real |  | 192 |  |  | 83 |  |  | <1
_____________________________
(1) | Represents contractual notionals. The notionals for options have not been probability adjusted, which generally would decrease them.
(2) | Represents the remaining tenor of our foreign currency derivatives weighted by the corresponding notional. These options and forwards and these embedded derivatives range in maturity through 2017 and 2025, respectively.
|  | March 31, 2014
|  |  |  | Weighted-Average
Commodity Derivatives |  | Notional |  | Remaining Term(1)
|  | (in millions) |  | (in years)
Power (MWh) |  | 6 |  |  | 3
_____________________________ (1) Represents the remaining tenor of our commodity derivatives weighted by the corresponding volume. These derivatives range in maturity through 2016. Accounting and Reporting Assets and Liabilities The following tables set forth the Company’s derivative instruments as of March 31, 2014 and December 31, 2013, first by whether or not they are designated hedging instruments, then by whether they are current or noncurrent to the extent they are subject to master netting agreements or similar agreements (where the rights to set-off relate to settlement of amounts receivable and payable under those derivatives) and by balances no longer accounted for as derivatives.
|  | March 31, 2014 |  | December 31, 2013
|  | Designated |  | Not Designated |  | Total |  | Designated |  | Not Designated |  | Total
|  | (in millions)
Assets |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives |  | $ | 44 |  |  | $ | 2 |  |  | $ | 46 |  |  | $ | 96 |  |  | $ | 2 |  |  | $ | 98 |
Cross currency derivatives |  | 4 |  |  | — |  |  | 4 |  |  | 5 |  |  | — |  |  | 5 |
Foreign currency derivatives |  | 7 |  |  | 116 |  |  | 123 |  |  | 4 |  |  | 109 |  |  | 113 |
Commodity derivatives |  | 30 |  |  | 19 |  |  | 49 |  |  | 8 |  |  | 16 |  |  | 24 |
Total assets |  | $ | 85 |  |  | $ | 137 |  |  | $ | 222 |  |  | $ | 113 |  |  | $ | 127 |  |  | $ | 240 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives |  | $ | 373 |  |  | $ | 3 |  |  | $ | 376 |  |  | $ | 318 |  |  | $ | 4 |  |  | $ | 322 |
Cross currency derivatives |  | 11 |  |  | — |  |  | 11 |  |  | 11 |  |  | — |  |  | 11 |
Foreign currency derivatives |  | 34 |  |  | 10 |  |  | 44 |  |  | 15 |  |  | 6 |  |  | 21 |
Commodity derivatives |  | 22 |  |  | 22 |  |  | 44 |  |  | 7 |  |  | 10 |  |  | 17 |
Total liabilities |  | $ | 440 |  |  | $ | 35 |  |  | $ | 475 |  |  | $ | 351 |  |  | $ | 20 |  |  | $ | 371 |
|  | March 31, 2014 |  | December 31, 2013
|  | Assets |  | Liabilities |  | Assets |  | Liabilities
|  | (in millions)
Current |  | $ | 55 |  |  | $ | 177 |  |  | $ | 32 |  |  | $ | 157 |
Noncurrent |  | 167 |  |  | 298 |  |  | 208 |  |  | 214 |
Total |  | $ | 222 |  |  | $ | 475 |  |  | $ | 240 |  |  | $ | 371 |
Derivatives subject to master netting agreement or similar agreement: |  |  |  |  |  |  |  |
Gross amounts recognized in the balance sheet |  | $ | 92 |  |  | $ | 438 |  |  | $ | 91 |  |  | $ | 314 |
Gross amounts of derivative instruments not offset |  | (18 | ) |  | (18 | ) |  | (9 | ) |  | (9 | )
Gross amounts of cash collateral received/pledged not offset |  | — |  |  | (16 | ) |  | (3 | ) |  | (6 | )
Net amount |  | $ | 74 |  |  | $ | 404 |  |  | $ | 79 |  |  | $ | 299 |
Other balances that had been, but are no longer, accounted for as derivatives that are to be amortized to earnings over the remaining term of the associated PPA |  | $ | 165 |  |  | $ | 187 |  |  | $ | 169 |  |  | $ | 190 |
Effective Portion of Cash Flow Hedges The following tables set forth the pretax gains (losses) recognized in accumulated other comprehensive loss (“AOCL”) and earnings related to the effective portion of derivative instruments in qualifying cash flow hedging relationships (including amounts that were reclassified from AOCL as interest expense related to interest rate derivative instruments that previously, but no longer, qualify for cash flow hedge accounting), as defined in the accounting standards for derivatives and hedging, for the periods indicated:
|  | Gains (Losses) Recognized in AOCL |  |  |  | Gains (Losses) Reclassified from AOCL into Earnings
|  | Three Months Ended March 31, |  | Classification in Condensed Consolidated Statements of Operations |  | Three Months Ended March 31,
Type of Derivative |  | 2014 |  | 2013 |  | 2014 |  | 2013
|  | (in millions) |  |  |  | (in millions)
Interest rate derivatives |  | $ | (150 | ) |  | $ | (13 | ) |  | Interest expense |  | $ | (31 | ) |  | $ | (32 | )
|  |  |  |  |  | Non-regulated cost of sales |  | (1 | ) |  | (1 | )
|  |  |  |  |  | Net equity in earnings of affiliates |  | (1 | ) |  | (2 | )
Cross currency derivatives |  | (3 | ) |  | 1 |  |  | Interest expense |  | (1 | ) |  | (3 | )
|  |  |  |  |  | Foreign currency transaction gains (losses) |  | (10 | ) |  | 5 |
Foreign currency derivatives |  | (15 | ) |  | 1 |  |  | Foreign currency transaction gains (losses) |  | 7 |  |  | 2 |
Commodity derivatives |  | 24 |  |  | (5 | ) |  | Non-regulated revenue |  | 13 |  |  | — |
|  |  |  |  |  |  |  | Non-regulated cost of sales |  | 2 |  |  | — |
Total |  | $ | (144 | ) |  | $ | (16 | ) |  |  |  | $ | (22 | ) |  | $ | (31 | )
The pretax accumulated other comprehensive income (loss) expected to be recognized as an increase (decrease) to income from continuing operations before income taxes over the next twelve months as of March 31, 2014 is $(112) million for interest rate hedges, $(5) million for cross currency swaps, $2 million for foreign currency hedges, and $1 million for commodity and other hedges. Ineffective Portion of Cash Flow Hedges The following table sets forth the pretax gains (losses) recognized in earnings related to the ineffective portion of derivative instruments in qualifying cash flow hedging relationships, as defined in the accounting standards for derivatives and hedging, for the periods indicated:
|  |  |  | Gains (Losses) Recognized in Earnings
|  | Classification in Condensed Consolidated Statements of Operations |  | Three Months Ended March 31,
Type of Derivative |  | 2014 |  | 2013
|  |  |  | (in millions)
Interest rate derivatives |  | Interest expense |  | $ | — |  |  | $ | (1 | )
Total |  |  |  | $ | — |  |  | $ | (1 | )
Not Designated for Hedge Accounting The following table sets forth the gains (losses) recognized in earnings related to derivative instruments not designated as hedging instruments under the accounting standards for derivatives and hedging and the amortization of balances that had been, but are no longer, accounted for as derivatives, for the periods indicated:
|  |  |  | Gains (Losses) Recognized in Earnings
|  | Classification in Condensed Consolidated Statements of Operations |  | Three Months Ended March 31,
Type of Derivative |  | 2014 |  | 2013
|  |  |  | (in millions)
Interest rate derivatives |  | Interest expense |  | $ | — |  |  | $ | 1 |
|  | Net equity in earnings of affiliates |  | — |  |  | (6 | )
Foreign currency derivatives |  | Foreign currency transaction gains (losses) |  | 23 |  |  | 6 |
|  | Net equity in earnings of affiliates |  | (4 | ) |  | (3 | )
Commodity and other derivatives |  | Non-regulated revenue |  | 3 |  |  | (8 | )
|  | Regulated revenue |  | — |  |  | (3 | )
|  | Non-regulated cost of sales |  | — |  |  | 1 |
|  | Regulated cost of sales |  | (8 | ) |  | — |
|  | Income (loss) from operations of discontinued businesses |  | (5 | ) |  | (13 | )
Total |  |  |  | $ | 9 |  |  | $ | (25 | )
Credit Risk-Related Contingent Features DP&L, a utility within our United States strategic business unit, has certain over-the-counter commodity derivative contracts under master netting agreements that contain provisions that require DP&L to maintain an investment-grade issuer credit rating from credit rating agencies. Since DP&L's rating has fallen below investment grade, certain of the counterparties to the derivative contracts have requested immediate and ongoing full overnight collateralization of the mark-to-market loss (fair value excluding credit valuation adjustments), which was $33 million and $11 million as of March 31, 2014 and December 31, 2013, respectively, for all derivatives with credit risk-related contingent features. As of March 31, 2014 and December 31, 2013, DP&L had posted $16 million and $6 million, respectively, of cash collateral directly with third parties and in a broker margin account and DP&L held no cash collateral from counterparties to its derivative instruments that were in an asset position. After consideration of the netting of counterparty assets, DP&L could have been required to, but did not, provide additional collateral of $4 million and $0 million as of March 31, 2014 and December 31, 2013, respectively.

X
- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80748-113994 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41635-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5708775-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624258-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624181-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5708773-113959 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80784-113994 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624177-113959 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959 Reference 20: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration