XML 129 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Report of Business Segments
6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Report of Business Segments
Report of Business Segments

Previously, the Company's business was divided into three segments as follows: (i) electric utility, which is engaged in the generation, transmission, distribution and sale of electric energy, (ii) natural gas transportation and storage and (iii) natural gas gathering and processing. On March 14, 2013, OGE Energy entered into a Master Formation Agreement with the ArcLight group and CenterPoint Energy, Inc., pursuant to which OGE Energy, the ArcLight group and CenterPoint Energy, Inc., agreed to form Enable Midstream Partners to own and operate the midstream businesses of OGE Energy and CenterPoint that will initially be structured as a private limited partnership. As a result, effective May 1, 2013, OGE Energy deconsolidated its interest in Enogex Holdings LLC and began accounting for its interest in Enable Midstream Partners using the equity method of accounting. The Company's business is now divided into two segments for financial reporting purposes as follows: (i) electric utility and (ii) natural gas midstream operations. The former natural gas transportation and storage segment and natural gas gathering and processing segment have been combined into the natural gas midstream operations segment and have been restated for all prior periods presented. Equity in earnings of unconsolidated affiliates in the natural gas midstream operations segment includes OGE Energy's equity interest in Enable Midstream Partners from May 1, 2013 through June 30, 2013. Other than equity in earnings of unconsolidated affiliates, all amounts for the natural gas midstream operations segment are through April 30, 2013. Investment in unconsolidated affiliates in the natural gas midstream operations segment includes OGE Energy's investment in Enable Midstream Partners at June 30, 2013. Other Operations primarily includes the operations of the holding company.  Intersegment revenues are recorded at prices comparable to those of unaffiliated customers and are affected by regulatory considerations.  In reviewing its segment operating results, the Company focuses on operating income as its measure of segment profit and loss, and, therefore, has presented this information below.  The following tables summarize the results of the Company's business segments during the three months ended June 30, 2013 and 2012.
Three Months Ended
June 30, 2013
 Electric Utility
Natural Gas Midstream Operations
Other Operations
Eliminations
Total
(In millions)
 
 
 
 
 
Operating revenues
$
574.6

$
166.1

$

$
(6.5
)
$
734.2

Cost of goods sold
247.6

129.7


(6.7
)
370.6

Gross margin on revenues
327.0

36.4


0.2

363.6

Other operation and maintenance
107.0

15.7

(0.7
)

122.0

Depreciation and amortization
62.0

9.2

3.2


74.4

Taxes other than income
19.9

2.5

0.9


23.3

Operating income (loss)
$
138.1

$
9.0

$
(3.4
)
$
0.2

$
143.9

Equity in earnings of unconsolidated affiliates
$

$
18.5

$

$

$
18.5

 
 
 
 
 
 
Investment in unconsolidated affiliates
$

$
1,267.2

$

$

$
1,267.2

Total assets
$
7,453.6

$
1,266.8

$
189.4

$
(61.3
)
$
8,848.5

Three Months Ended
June 30, 2012
 Electric Utility
Natural Gas Midstream Operations
Other Operations
Eliminations
Total
(In millions)
 
 
 
 
 
Operating revenues
$
528.0

$
344.0

$

$
(17.0
)
$
855.0

Cost of goods sold
204.6

222.6


(17.9
)
409.3

Gross margin on revenues
323.4

121.4


0.9

445.7

Other operation and maintenance
114.7

42.7

(4.4
)

153.0

Depreciation and amortization
62.7

24.3

3.5


90.5

Impairment of assets

0.1



0.1

Taxes other than income
18.2

5.7

0.9


24.8

Operating income (loss)
$
127.8

$
48.6

$

$
0.9

$
177.3

 
 
 
 
 
 
Total assets
$
6,833.2

$
2,395.3

$
331.4

$
(208.5
)
$
9,351.4

Six Months Ended
June 30, 2013
 Electric Utility
Natural Gas Midstream Operations
Other Operations
Eliminations
Total
(In millions)
 
 
 
 
 
Operating revenues
$
1,030.1

$
630.4

$

$
(24.9
)
$
1,635.6

Cost of goods sold
460.6

489.0


(26.0
)
923.6

Gross margin on revenues
569.5

141.4


1.1

712.0

Other operation and maintenance
212.1

60.9

(3.0
)

270.0

Depreciation and amortization
123.3

36.8

6.2


166.3

Taxes other than income
43.1

10.5

2.8


56.4

Operating income (loss)
$
191.0

$
33.2

$
(6.0
)
$
1.1

$
219.3

Equity in earnings of unconsolidated affiliates
$

$
18.5

$

$

$
18.5

 
 
 
 
 
 
Investment in unconsolidated affiliates
$

$
1,267.2

$

$

$
1,267.2

Total assets
$
7,453.6

$
1,266.8

$
189.4

$
(61.3
)
$
8,848.5

Six Months Ended
June 30, 2012
 Electric Utility
Natural Gas Midstream Operations
Other Operations
Eliminations
Total
(In millions)
 
 
 
 
 
Operating revenues
$
954.7

$
773.6

$

$
(32.6
)
$
1,695.7

Cost of goods sold
400.1

527.9


(33.4
)
894.6

Gross margin on revenues
554.6

245.7


0.8

801.1

Other operation and maintenance
225.3

85.0

(9.7
)

300.6

Depreciation and amortization
122.4

47.7

7.0


177.1

Impairment of assets

0.3



0.3

Gain on insurance proceeds

(7.5
)


(7.5
)
Taxes other than income
39.3

13.0

2.7


55.0

Operating income (loss)
$
167.6

$
107.2

$

$
0.8

$
275.6

 
 
 
 
 
 
Total assets
$
6,833.2

$
2,395.3

$
331.4

$
(208.5
)
$
9,351.4