Note 13 — Segment Information

We have determined that we have two reportable segments: (1) Gas Utility and (2) Electric Utility. Gas Utility revenues are derived principally from the sale and distribution of natural gas to customers in eastern, northeastern and central Pennsylvania. Electric Utility derives its revenues principally from the sale and distribution of electricity in two northeastern Pennsylvania counties.

The accounting policies of our reportable segments are the same as those described in Note 2 of the Company’s 2016 Annual Report. We evaluate the performance of our Gas Utility and Electric Utility segments principally based upon their income before income taxes.

Financial information by business segment follows:



			Reportable Segments
Three Months Ended June 30, 2017	Total		Gas Utility		Electric Utility
Revenues	$	146,692	$	127,849	$	18,843
Cost of sales — gas, fuel and purchased power	$	51,979	$	42,180	$	9,799
Depreciation and amortization	$	17,912	$	16,845	$	1,067
Operating income	$	27,671	$	25,628	$	2,043
Interest expense	$	10,128	$	9,601	$	527
Income before income taxes	$	17,543	$	16,027	$	1,516
Capital expenditures (including the effects of accruals)	$	79,088	$	75,836	$	3,252



			Reportable Segments
Three Months Ended June 30, 2016	Total		Gas Utility		Electric Utility
Revenues	$	140,283	$	119,995	$	20,288
Cost of sales — gas, fuel and purchased power	$	44,415	$	33,715	$	10,700
Depreciation and amortization	$	16,550	$	15,339	$	1,211
Operating income	$	29,815	$	27,116	$	2,699
Interest expense	$	9,158	$	8,670	$	488
Income before income taxes	$	20,657	$	18,446	$	2,211
Capital expenditures (including the effects of accruals)	$	56,481	$	53,199	$	3,282



			Reportable Segments
Nine Months Ended June 30, 2017	Total		Gas Utility		Electric Utility
Revenues	$	768,045	$	700,813	$	67,232
Cost of sales — gas, fuel and purchased power	$	325,991	$	288,610	$	37,381
Depreciation and amortization	$	53,002	$	49,378	$	3,624
Operating income	$	226,315	$	219,700	$	6,615
Interest expense	$	30,478	$	29,017	$	1,461
Income before income taxes	$	195,837	$	190,683	$	5,154
Capital expenditures (including the effects of accruals)	$	199,701	$	191,715	$	7,986

As of June 30, 2017
Total assets	$	2,904,532	$	2,743,035	$	161,497
Goodwill	$	182,145	$	182,145	$	—



			Reportable Segments
Nine Months Ended June 30, 2016	Total		Gas Utility		Electric Utility
Revenues	$	660,312	$	595,025	$	65,287
Cost of sales — gas, fuel and purchased power	$	257,288	$	221,646	$	35,642
Depreciation and amortization	$	50,281	$	46,665	$	3,616
Operating income	$	192,592	$	183,940	$	8,652
Interest expense	$	27,922	$	26,583	$	1,339
Income before income taxes	$	164,670	$	157,357	$	7,313
Capital expenditures (including the effects of accruals)	$	166,058	$	158,472	$	7,586

As of June 30, 2016
Total assets	$	2,697,301	$	2,531,573	$	165,728
Goodwill	$	182,145	$	182,145	$	—