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SEC Filings
10-Q
SOUTHERN UNION CO filed this Form 10-Q on 08/08/2013
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The following tables summarize the location and amount (excluding income tax effects) of derivative instrument gains and losses reported in the Company’s condensed consolidated financial statements:
 
 
Three Months
Ended
June 30, 2013
 
Three Months Ended
June 30, 2012
Cash Flow Hedges:
 
 
 
 
Commodity contracts — Gathering and Processing:
 
 
 
 
Change in fair value — increase in accumulated other comprehensive income
 
$
(3
)
 
$
9

Reclassification of unrealized gain from accumulated other comprehensive income
 

 
6

Economic Hedges:
 
 
 
 

Interest rate contracts:
 
 
 
 
Change in fair value — increase (decrease) in interest expense
 
(23
)
 
20

Commodity contracts — Distribution:
 
 
 
 
Change in fair value — increase (decrease) in deferred natural gas purchases
 
10

 
(20
)
 
 
Successor
 
 
Predecessor
 
 
Six Months Ended
June 30, 2013
 
Period from Acquisition (March 26, 2012) to June 30, 2012
 
 
Period from January 1, 2012 to March 25, 2012
Cash Flow Hedges:
 
 
 
 
 
 
 
Interest rate contracts:
 
 
 
 
 
 
 
Change in fair value — increase in accumulated other comprehensive income
 
$

 
$

 
 
$
6

Reclassification of unrealized loss from accumulated other comprehensive income — increase of interest expense
 

 

 
 
8

Commodity contracts — Gathering and Processing:
 
 
 
 

 
 
 

Change in fair value — increase in accumulated other comprehensive income
 
(3
)
 
11

 
 
5

Reclassification of unrealized gain from accumulated other comprehensive income
 

 
6

 
 
2

Economic Hedges:
 
 
 
 

 
 
 
Interest rate contracts:
 
 
 
 
 
 
 
Change in fair value — increase (decrease) in interest expense
 
(28
)
 
20

 
 

Commodity contracts — Distribution:
 
 

 
 

 
 
 
Change in fair value — decrease in deferred natural gas purchases
 
(3
)
 
(20
)
 
 
(2
)
Derivative Instrument Contingent Features
Certain of the Company’s derivative instruments contain provisions that require the Company’s debt to be maintained at an investment grade credit rating from each of the major credit rating agencies.  If the Company’s debt were to fall below investment grade, the Company would be in violation of these provisions, and the counterparties to the derivative instruments could potentially require the Company to post collateral for certain of the derivative instruments.  The aggregate fair value of all derivative instruments with credit-risk contingent feature that are in a net liability position at June 30, 2013 was $3 million, all of which were included in the disposal group held for sale at June 30, 2013.


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