Note 15 — 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 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 2018 Annual Report. Our Chief Operating Decision Maker evaluates 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 March 31, 2019	Total			Gas Utility			Electric Utility
Revenues	$	429,592		$	401,415		$	28,177
Cost of sales	$	217,976		$	202,164		$	15,812
Depreciation	$	22,341		$	20,902		$	1,439
Operating income	$	119,866		$	116,580		$	3,286
Pension and other postretirement plans non-service income	$	395		$	346		$	49
Interest expense	$	(12,231	)	$	(11,622	)	$	(609	)
Income before income taxes	$	108,030		$	105,304		$	2,726
Capital expenditures (including the effects of accruals)	$	70,799		$	66,766		$	4,033



				Reportable Segments
Three Months Ended March 31, 2018	Total			Gas Utility			Electric Utility
Revenues	$	483,261		$	455,973		$	27,288
Cost of sales	$	257,302		$	241,031		$	16,271
Depreciation	$	21,158		$	19,776		$	1,382
Operating income (a)	$	135,771		$	134,738		$	1,033
Pension and other postretirement plans non-service expense (a)	$	(644	)	$	(563	)	$	(81	)
Interest expense	$	(11,091	)	$	(10,866	)	$	(225	)
Income before income taxes	$	124,036		$	123,309		$	727
Capital expenditures (including the effects of accruals)	$	55,089		$	51,363		$	3,726



				Reportable Segments
Six Months Ended March 31, 2019	Total			Gas Utility			Electric Utility
Revenues	$	752,317		$	698,557		$	53,760
Cost of sales	$	377,495		$	347,284		$	30,211
Depreciation	$	44,815		$	41,942		$	2,873
Operating income	$	196,940		$	190,164		$	6,776
Pension and other postretirement plans non-service income	$	807		$	707		$	100
Interest expense	$	(23,969	)	$	(22,840	)	$	(1,129	)
Income before income taxes	$	173,778		$	168,031		$	5,747
Capital expenditures (including the effects of accruals)	$	148,118		$	141,840		$	6,278

As of March 31, 2019
Total assets	$	3,438,437		$	3,252,092		$	186,345
Goodwill	$	182,145		$	182,145		$	—



				Reportable Segments
Six Months Ended March 31, 2018	Total			Gas Utility			Electric Utility
Revenues	$	806,366		$	755,938		$	50,428
Cost of sales	$	409,076		$	379,889		$	29,187
Depreciation	$	41,512		$	38,776		$	2,736
Operating income (a)	$	232,641		$	228,923		$	3,718
Pension and other postretirement plans non-service expense (a)	$	(1,219	)	$	(1,067	)	$	(152	)
Interest expense	$	(22,030	)	$	(21,392	)	$	(638	)
Income before income taxes	$	209,392		$	206,464		$	2,928
Capital expenditures (including the effects of accruals)	$	126,788		$	120,205		$	6,583

As of March 31, 2018
Total assets	$	3,204,045		$	3,033,352		$	170,693
Goodwill	$	182,145		$	182,145		$	—

(a) Amounts reflect the reclassification of non-service income (expense) associated with our pension and other postretirement plans from “Operating and administrative expenses” to “Pension and other postretirement plans non-service income (expense)” on the Condensed Consolidated Statements of Income as a result of the adoption of ASU No. 2017-07 (see Note 3).