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Derivative Instruments and Hedging Activities | 9 Months Ended
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Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES There are no changes to the information disclosed in Note 1—General and Summary of Significant Accounting Policies—Derivatives and Hedging Activities of Item 8.—Financial Statements and Supplementary Data in the 2014 Form 10-K. Volume of Activity — The following three tables present, by type of derivative, the Company’s outstanding notional (in millions) under its derivatives and the weighted average remaining term (in years) as of September 30, 2015 regardless of whether the derivative instruments are in qualifying cash flow hedging relationships:
|  | Current |  | Maximum |  |  |  |
Interest Rate and Cross-Currency(1) |  | 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)
Interest Rate Derivatives: |  |  |  |  |  |
LIBOR (U.S. Dollar) |  | 2,512 |  |  | $ | 2,512 |  |  | 2,872 |  |  | $ | 2,872 |  |  | 11 |  | 51 | %
EURIBOR (Euro) |  | 504 |  |  | 564 |  |  | 504 |  |  | 564 |  |  | 6 |  | 87 | %
Cross-Currency Swaps: |  |  |  |  |  |  |  |  |  |  |  |
Chilean Unidad de Fomento |  | 4 |  |  | 160 |  |  | 4 |  |  | 160 |  |  | 13 |  | 76 | %
_____________________________
(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 September 30, 2015 and the maturity of the derivative instrument, which includes forward-starting derivative instruments. The interest rate and cross-currency derivatives mature 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.
Foreign Currency Derivatives |  | Notional (1) |  | Notional Translated to USD |  | Weighted Average Remaining Term (2)
Argentine Peso |  | 2,072 |  |  | $ | 220 |  |  | 10
Brazilian Real |  | 52 |  |  | 13 |  |  | <1
British Pound |  | 17 |  |  | 26 |  |  | <1
Chilean Peso |  | 127,365 |  |  | 183 |  |  | <1
Chilean Unidad de Fomento |  | 9 |  |  | 346 |  |  | 1
Colombian Peso |  | 205,082 |  |  | 66 |  |  | <1
Euro |  | 112 |  |  | 125 |  |  | <1
Kazakhstani Tenge |  | 2,715 |  |  | 10 |  |  | 1
Philippine Peso |  | 234 |  |  | 5 |  |  | <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 derivatives mature through 2025.
Commodity Derivatives |  | Notional |  | Weighted-Average Remaining Term (1)
Power (MWh) |  | 11 |  |  | 3
_____________________________
(1) | Represents the remaining tenor of our commodity derivatives weighted by the corresponding volume. These derivatives range in maturity through 2018.
Accounting and Reporting — Assets and Liabilities — The following tables present the fair values of the Company’s derivative instruments as of September 30, 2015 and December 31, 2014, first by whether 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 (in millions):
| September 30, 2015 |  | December 31, 2014
Assets | Designated |  | Not Designated |  | Total |  | Designated |  | Not Designated |  | Total
Foreign currency derivatives | $ | 13 |  |  | $ | 256 |  |  | $ | 269 |  |  | $ | 6 |  |  | $ | 230 |  |  | $ | 236 |
Commodity derivatives | 34 |  |  | 23 |  |  | 57 |  |  | 25 |  |  | 19 |  |  | 44 |
Total assets | $ | 47 |  |  | $ | 279 |  |  | $ | 326 |  |  | $ | 31 |  |  | $ | 249 |  |  | $ | 280 |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | $ | 414 |  |  | $ | — |  |  | $ | 414 |  |  | $ | 416 |  |  | $ | — |  |  | $ | 416 |
Cross-currency derivatives | 40 |  |  | — |  |  | 40 |  |  | 29 |  |  | — |  |  | 29 |
Foreign currency derivatives | 39 |  |  | 22 |  |  | 61 |  |  | 38 |  |  | 14 |  |  | 52 |
Commodity derivatives | 14 |  |  | 16 |  |  | 30 |  |  | 7 |  |  | 10 |  |  | 17 |
Total liabilities | $ | 507 |  |  | $ | 38 |  |  | $ | 545 |  |  | $ | 490 |  |  | $ | 24 |  |  | $ | 514 |
| September 30, 2015 |  | December 31, 2014
| Assets |  | Liabilities |  | Assets |  | Liabilities
Current | $ | 92 |  |  | $ | 140 |  |  | $ | 77 |  |  | $ | 148 |
Noncurrent | 234 |  |  | 405 |  |  | 203 |  |  | 366 |
Total | $ | 326 |  |  | $ | 545 |  |  | $ | 280 |  |  | $ | 514 |
Derivatives subject to master netting agreement or similar agreement: |  |  |  |  |  |  |
Gross amounts recognized in the balance sheet | $ | 38 |  |  | $ | 475 |  |  | $ | 53 |  |  | $ | 507 |
Gross amounts of derivative instruments not offset | (21 | ) |  | (21 | ) |  | (10 | ) |  | (10 | )
Gross amounts of collateral received/pledged not offset | — |  |  | (32 | ) |  | — |  |  | (26 | )
Net amount | $ | 17 |  |  | $ | 422 |  |  | $ | 43 |  |  | $ | 471 |
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 | $ | 150 |  |  | $ | 170 |  |  | $ | 161 |  |  | $ | 180 |
Effective Portion of Cash Flow Hedges — The next table presents (in millions) the pretax gains (losses) recognized in 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:
Type of Derivative |  | Gains (Losses) Recognized in AOCL |  | Classification in Condensed Consolidated Statements of Operations |  | Gains (Losses) Reclassified from AOCL into Earnings
Three Months Ended September 30, |  | 2015 |  | 2014 |  |  |  | 2015 |  | 2014
Interest rate derivatives |  | $ | (110 | ) |  | $ | (16 | ) |  | Interest expense |  | $ | (27 | ) |  | $ | (38 | )
|  |  |  |  |  | Non-regulated cost of sales |  | (1 | ) |  | (1 | )
|  |  |  |  |  | Net equity in earnings of affiliates |  | (1 | ) |  | — |
|  |  |  |  |  | Gain on disposals and sale of investments |  | (4 | ) |  | — |
Cross-currency derivatives |  | 3 |  |  | (17 | ) |  | Interest expense |  | (1 | ) |  | (1 | )
|  |  |  |  |  | Foreign currency transaction gains (losses) |  | — |  |  | (18 | )
Foreign currency derivatives |  | 5 |  |  | (12 | ) |  | Foreign currency transaction gains (losses) |  | 12 |  |  | 1 |
Commodity derivatives |  | 10 |  |  | 3 |  |  | Non-regulated revenue |  | 12 |  |  | 4 |
|  |  |  |  |  |  |  | Non-regulated cost of sales |  | (4 | ) |  | (1 | )
Total |  | $ | (92 | ) |  | $ | (42 | ) |  |  |  | $ | (14 | ) |  | $ | (54 | )
Nine Months Ended September 30, |  |  |  |  |  |  |  |  |  |
Interest rate derivatives |  | $ | (130 | ) |  | $ | (290 | ) |  | Interest expense |  | $ | (81 | ) |  | $ | (102 | )
|  |  |  |  |  | Non-regulated cost of sales |  | (2 | ) |  | (2 | )
|  |  |  |  |  | Net equity in earnings of affiliates |  | (1 | ) |  | (3 | )
|  |  |  |  |  | Gain on disposals and sale of investments |  | (4 | ) |  | — |
Cross-currency derivatives |  | 4 |  |  | (20 | ) |  | Interest expense |  | (3 | ) |  | — |
|  |  |  |  |  | Foreign currency transaction gains (losses) |  | — |  |  | (24 | )
Foreign currency derivatives |  | 6 |  |  | (24 | ) |  | Foreign currency transaction gains (losses) |  | 20 |  |  | 11 |
Commodity derivatives |  | 25 |  |  | 21 |  |  | Non-regulated revenue |  | 27 |  |  | 23 |
|  |  |  |  |  | Non-regulated cost of sales |  | (8 | ) |  | (2 | )
Total |  | $ | (95 | ) |  | $ | (313 | ) |  |  |  | $ | (52 | ) |  | $ | (99 | )
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 12 months as of September 30, 2015 is $(106) million for interest rate hedges, $(5) million for cross-currency swaps, $13 million for foreign currency hedges, and $14 million for commodity and other hedges. For the nine months ended September 30, 2014, pretax gains of $6 million, net of noncontrolling interests, were reclassified into earnings as a result of the discontinuance of a cash flow hedge because it was probable that the forecasted transaction would not occur by the end of the originally specified time period (as documented at the inception of the hedging relationship) or within an additional two-month time period thereafter. There were no such reclassifications for the three months ended September 30, 2014 and the three and nine months ended September 30, 2015. Ineffective Portion of Cash Flow Hedges — The table below presents 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 (in millions):
Type of Derivative |  | Classification in Condensed Consolidated Statements of Operations |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Interest rate |  | Interest expense |  | $ | (2 | ) |  | $ | (1 | ) |  | $ | (3 | ) |  | $ | — |
Foreign currency |  | Foreign currency transaction gains (losses) |  | — |  |  | (2 | ) |  | (3 | ) |  | (2 | )
Cross-currency |  | Interest expense |  | — |  |  | — |  |  | — |  |  | (1 | )
Commodity and other |  | Non-regulated revenue |  | — |  |  | 1 |  |  | — |  |  | 1 |
Total |  |  |  | $ | (2 | ) |  | $ | (2 | ) |  | $ | (6 | ) |  | $ | (2 | )
Not Designated for Hedge Accounting — The table below presents the gains (losses) recognized in earnings (in millions) related to derivatives 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:
Type of Derivative |  | Classification in Condensed Consolidated Statements of Operations |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Interest rate |  | Interest expense |  | $ | — |  |  | $ | (1 | ) |  | $ | — |  |  | $ | (1 | )
Foreign currency |  | Foreign currency transaction gains (losses) |  | 23 |  |  | 2 |  |  | 62 |  |  | 31 |
|  | Net equity in earnings of affiliates |  | — |  |  | (9 | ) |  | — |  |  | (4 | )
Commodity and other |  | Non-regulated revenue |  | (2 | ) |  | (2 | ) |  | (6 | ) |  | 2 |
|  | Non-regulated cost of sales |  | (8 | ) |  | (3 | ) |  | (7 | ) |  | (1 | )
|  | Regulated cost of sales |  | — |  |  | (4 | ) |  | (5 | ) |  | (10 | )
|  | Income (loss) from operations of discontinued businesses |  | — |  |  | — |  |  | — |  |  | (7 | )
|  | Net loss from disposal and impairments of discontinued businesses |  | — |  |  | — |  |  | — |  |  | 72 |
Total |  |  |  | $ | 13 |  |  | $ | (17 | ) |  | $ | 44 |  |  | $ | 82 |
Credit Risk-Related Contingent Features — DP&L 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 is 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 $25 million and $12 million as of September 30, 2015 and December 31, 2014, respectively, for all derivatives with credit risk-related contingent features. As of September 30, 2015 and December 31, 2014, DP&L had posted $6 million and $5 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.

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- 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 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 2: 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=56946850&loc=SL5624171-113959 Reference 3: 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=56946850&loc=d3e41620-113959 Reference 4: 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=56946850&loc=SL5624163-113959 Reference 5: 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=56946850&loc=SL5579240-113959 Reference 6: 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=56946850&loc=SL5624177-113959 Reference 7: 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=35736893&loc=d3e80784-113994 Reference 8: 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=56946850&loc=d3e41641-113959 Reference 9: 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=56946850&loc=SL5579245-113959 Reference 10: 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=56946850&loc=SL5624258-113959 Reference 11: 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=35736893&loc=d3e80748-113994 Reference 12: 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=56946850&loc=SL5708775-113959 Reference 13: 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=56946850&loc=SL5708773-113959 Reference 14: 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=56946850&loc=SL5618551-113959 Reference 15: 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=56946850&loc=SL5580258-113959 Reference 16: 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=56946850&loc=SL5624181-113959 Reference 17: 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 18: 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=56946850&loc=d3e41638-113959 Reference 19: 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 + Details
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