Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

Our reportable segments comprise revenue-generating components of the company for which we produce separate financial information internally that we regularly use to make operating decisions and assess performance. Our determination of reportable segments considers the strategic operating units under which we manage sales of various products and services to customers in differing regulatory environments. We manage our businesses through four reportable segments - distribution operations, retail operations, wholesale services and midstream operations. Our non-reportable segments are combined and presented as “other.”

In September 2014, we sold Tropical Shipping, which historically operated within our cargo shipping segment. The financial results of these businesses for the years ended December 31, 2014 and 2013 are reflected as discontinued operations on the Consolidated Statements of Income. Amounts shown in this note for total assets as of December 31, 2013 exclude assets held for sale and other amounts shown, unless otherwise indicated, exclude discontinued operations. Cargo shipping also included our investment in Triton, which was not part of the sale and has been reclassified to a non-reportable segment. See Note 15 for additional information.

Our distribution operations segment is the largest component of our business and includes natural gas local distribution utilities that construct, manage and maintain intrastate natural gas pipelines and distribution facilities in seven states. Although the operations of this segment are geographically dispersed, the operating subsidiaries within the segment are regulated utilities with rates determined by individual state regulatory agencies. These natural gas distribution utilities have similar economic and risk characteristics.

We are also involved in several related and complementary businesses. Our retail operations segment includes retail natural gas marketing to end-use customers primarily in Georgia and Illinois. Additionally, retail operations provides home equipment protection products and services. Our wholesale services segment engages in natural gas storage and gas pipeline arbitrage and related activities. Additionally, this segment provides natural gas asset management and/or related logistics services for each of our utilities except Nicor Gas, as well as for non-affiliated companies. Our midstream operations segment includes our non-utility storage and pipeline operations, including the operation of high-deliverability natural gas storage assets. Our other segment includes subsidiaries that are not significant on a stand-alone basis and that do not align with one of our reportable segments.

The chief operating decision maker of the company is the President and Chief Executive Officer, who utilizes EBIT as the primary measure of profit and loss in assessing the results of each segment’s operations. EBIT includes operating income and other income and expenses and excludes income taxes and interest expense, which we evaluate on a consolidated basis. Summarized statements of income, balance sheets and capital expenditure information by segment as of and for the years ended December 31 are shown in the following tables.

2015
In millions	Distribution operations		Retail operations		Wholesale services(1)			Midstream operations			Other			Intercompany eliminations			Consolidated
Operating revenues from external parties	$	2,880	$	835	$	202		$	55		$	11		$	(42	)	$	3,941
Intercompany revenues	169		—		—			—			—			(169		)	—
Total operating revenues	3,049		835		202			55			11			(211		)	3,941
Operating expenses
Cost of goods sold	1,291		518		19			19			4			(206		)	1,645
Operation and maintenance	687		137		67			25			3			(5		)	914
Depreciation and amortization	336		25		1			18			17			—			397
Taxes other than income taxes	164		3		3			5			6			—			181
Merger-related expenses	—		—		—			—			44			—			44
Goodwill impairment	—		—		—			14			—			—			14
Total operating expenses	2,478		683		90			81			74			(211		)	3,195
Operating income (loss)	571		152		112			(26		)	(63		)	—			746
Other income (expense)	9		—		(4		)	3			5			—			13
EBIT	$	580	$	152	$	108		$	(23	)	$	(58	)	$	—		$	759
Total assets	$	12,517	$	686	$	935		$	692		$	9,664		$	(9,740	)	$	14,754
Capital expenditures	$	957	$	7	$	2		$	27		$	—		$	34		$	1,027

2014
In millions	Distribution operations		Retail operations		Wholesale services(1)			Midstream operations			Other			Intercompany eliminations			Consolidated
Operating revenues from external parties	$	3,802	$	994	$	578		$	88		$	7		$	(84	)	$	5,385
Intercompany revenues	199		—		—			—			—			(199		)	—
Total operating revenues	4,001		994		578			88			7			(283		)	5,385
Operating expenses
Cost of goods sold	2,223		683		77			57			—			(275		)	2,765
Operation and maintenance	699		147		75			26			—			(8		)	939
Depreciation and amortization	317		28		1			18			16			—			380
Taxes other than income taxes	189		4		3			6			6			—			208
Total operating expenses	3,428		862		156			107			22			(283		)	4,292
Gain (loss) on disposition of assets	—		—		3			—			(1		)	—			2
Operating income (loss)	573		132		425			(19		)	(16		)	—			1,095
Other income (expense)	8		—		(3		)	2			7			—			14
EBIT	$	581	$	132	$	422		$	(17	)	$	(9	)	$	—		$	1,109
Total assets	$	12,037	$	670	$	1,402		$	694		$	9,706		$	(9,621	)	$	14,888
Capital expenditures	$	715	$	11	$	2		$	15		$	26		$	—		$	769

2013
In millions	Distribution operations		Retail operations		Wholesale services(1)			Midstream operations			Other			Intercompany eliminations			Consolidated
Operating revenues from external parties	$	3,230	$	858	$	60		$	74		$	8		$	(21	)	$	4,209
Intercompany revenues	182		—		—			—			—			(182		)	—
Total operating revenues	3,412		858		60			74			8			(203		)	4,209
Operating expenses
Cost of goods sold	1,687		564		21			33			—			(195		)	2,110
Operation and maintenance	687		132		49			24			3			(8		)	887
Depreciation and amortization	339		27		1			17			13			—			397
Taxes other than income taxes	167		3		3			5			9			—			187
Total operating expenses	2,880		726		74			79			25			(203		)	3,581
Gain on disposition of assets	—		—		11			—			—			—			11
Operating income (loss)	532		132		(3		)	(5		)	(17		)	—			639
Other income (expense)	14		—		—			(5		)	7			—			16
EBIT	$	546	$	132	$	(3	)	$	(10	)	$	(10	)	$	—		$	655
Total assets (2)	$	11,629	$	685	$	1,163		$	713		$	10,426		$	(10,088	)	$	14,528
Capital expenditures	$	684	$	9	$	2		$	12		$	24		$	—		$	731

(1) The revenues for wholesale services are netted with costs associated with its energy and risk management activities. A reconciliation of our operating revenues and our intercompany revenues for the years ended December 31, are shown in the following table. Wholesale services 2014 operating revenues are related to colder-than-normal weather and extreme volatility and are not indicative of future performance.

In millions	Third party gross revenues		Intercompany revenues	Total gross revenues	Less gross gas costs	Operating revenues
2015	$	6,286	408	6,694	6,492	$	202
2014	$	10,709	718	11,427	10,849	$	578
2013	$	7,681	417	8,098	8,038	$	60

(2) Total assets reported as of December 31, 2013 exclude assets held for sale.