Segment Reporting

The Company segregates its operations into three groups: 1) Utility Group, 2) Nonutility Group, and 3) Corporate and Other.

The Utility Group is comprised of Vectren Utility Holdings, Inc.’s operations, which consist of the Company’s regulated operations and other operations that provide information technology and other support services to those regulated operations. The Company segregates its regulated operations between a Gas Utility Services operating segment and an Electric Utility Services operating segment. The Gas Utility Services segment provides natural gas distribution and transportation services to nearly two-thirds of Indiana and to west central Ohio. The Electric Utility Services segment provides electric distribution services primarily to southwestern Indiana, and includes the Company’s power generating and wholesale power operations. Regulated operations supply natural gas and/or electricity to over one million customers. In total, the Utility Group is comprised of three operating segments: Gas Utility Services, Electric Utility Services, and Other operations.

During the periods presented, the Nonutility Group had the following operating segments: Infrastructure Services, Energy Services, and Other Businesses. Energy Services, through the wholly owned subsidiary Energy Systems Group, LLC, provides energy performance contracting and sustainable infrastructure, such as renewables, distributed generation, and combined heat and power projects. The Infrastructure Services segment, through wholly owned subsidiaries Miller Pipeline, LLC and Minnesota Limited, LLC, provides underground pipeline construction and repair services for customers that include Vectren Utility Holdings' utilities. Fees incurred by Vectren Utility Holdings and its subsidiaries for these pipeline construction and repair services totaled $157.1 million in 2017, $117.8 million in 2016, and $109.5 million in 2015. The increase in 2017 is due to a large pipeline project that Minnesota Limited was awarded in a competitive process.

Corporate and Other includes unallocated corporate expenses such as advertising and certain charitable contributions, among other activities, that benefit the Company’s other operating segments. Total assets in all periods presented reflect the retrospective impacts of the adoption in 2015 of ASU 2015-17, Balance Sheet Classification of Deferred Taxes and the retrospective impacts of the adoption in 2016 of ASU 2015-03, Presentation of Debt Issuance Costs. Net income is the measure of profitability used by management for all operations. Information related to the Company’s business segments is summarized as follows:



	Year Ended December 31,
(In millions)	2017			2016			2015
Revenues
Utility Group
Gas Utility Services	$	812.7		$	771.7		$	792.6
Electric Utility Services	569.6			605.8			601.6
Other Operations	45.6			42.2			40.7
Eliminations	(45.3		)	(41.9		)	(40.4		)
Total Utility Group	1,382.6			1,377.8			1,394.5
Nonutility Group
Infrastructure Services	996.1			813.3			843.3
Energy Services	281.8			260.0			199.9
Total Nonutility Group	1,277.9			1,073.3			1,043.2
Eliminations, net of Corporate & Other Revenues	(3.2		)	(2.8		)	(3.0		)
Consolidated Revenues	$	2,657.3		$	2,448.3		$	2,434.7
Profitability Measures - Net Income
Utility Group Net Income
Gas Utility Services	$	115.5		$	76.1		$	64.4
Electric Utility Services	75.2			84.7			82.6
Other Operations	(14.9		)	12.8			13.9
Total Utility Group Net Income	175.8			173.6			160.9
Nonutility Group Net Income (Loss)
Infrastructure Services	32.3			25.0			29.7
Energy Services	10.7			12.5			7.3
Other Businesses	(1.9		)	(0.6		)	(0.7		)
Total Nonutility Group Net Income	41.1			36.9			36.3
Corporate & Other Net Income	(0.9		)	1.1			0.1
Consolidated Net Income	$	216.0		$	211.6		$	197.3



	Year Ended December 31,
(In millions)	2017			2016			2015
Amounts Included in Profitability Measures
Depreciation & Amortization
Utility Group
Gas Utility Services	$	118.9		$	108.1		$	98.6
Electric Utility Services	89.5			87.1			85.6
Other Operations	26.1			23.9			24.6
Total Utility Group	234.5			219.1			208.8
Nonutility Group
Infrastructure Services	39.7			38.2			44.5
Energy Services	1.9			2.5			2.7
Other Businesses	0.1			0.2			0.3
Total Nonutility Group	41.7			40.9			47.5
Consolidated Depreciation & Amortization	$	276.2		$	260.0		$	256.3
Interest Expense
Utility Group
Gas Utility Services	$	43.0		$	40.1		$	35.8
Electric Utility Services	25.8			27.0			27.8
Other Operations	3.8			2.6			2.7
Total Utility Group	72.6			69.7			66.3
Nonutility Group
Infrastructure Services	13.8			12.8			16.0
Energy Services	0.6			1.9			1.2
Other Businesses	1.0			0.9			1.2
Total Nonutility Group	15.4			15.6			18.4
Corporate & Other	(0.3		)	0.2			(0.2		)
Consolidated Interest Expense	$	87.7		$	85.5		$	84.5
Income Taxes
Utility Group
Gas Utility Services	$	25.4		$	47.1		$	40.8
Electric Utility Services	41.4			50.1			49.3
Other Operations	(6.1		)	2.3			(2.0		)
Total Utility Group	60.7			99.5			88.1
Nonutility Group
Infrastructure Services	(12.9		)	17.9			19.6
Energy Services	(1.5		)	(3.5		)	(7.7		)
Other Businesses	0.9			0.3			1.5
Total Nonutility Group	(13.5		)	14.7			13.4
Corporate & Other	(0.8		)	(1.3		)	(1.8		)
Consolidated Income Taxes	$	46.4		$	112.9		$	99.7



	Year Ended December 31,
(In millions)	2017			2016			2015
Capital Expenditures
Utility Group
Gas Utility Services	$	391.4		$	358.5		$	291.2
Electric Utility Services	105.3			106.4			87.6
Other Operations	57.9			39.0			25.7
Non-cash costs & changes in accruals	(3.7		)	(7.1		)	(6.2		)
Total Utility Group	550.9			496.8			398.3
Nonutility Group
Infrastructure Services	48.4			43.2			78.1
Energy Services	3.2			1.8			0.5
Other Businesses, net of eliminations	0.1			0.2			—
Total Nonutility Group	51.7			45.2			78.6
Consolidated Capital Expenditures	$	602.6		$	542.0		$	476.9
	At December 31,
(In millions)	2017			2016			2015
Assets
Utility Group
Gas Utility Services	$	3,457.8		$	3,091.0		$	2,706.9
Electric Utility Services	1,820.3			1,788.4			1,778.3
Other Operations, net of eliminations	220.1			161.5			107.5
Total Utility Group	5,498.2			5,040.9			4,592.7
Nonutility Group
Infrastructure Services	552.6			513.9			554.5
Energy Services	155.8			182.7			160.3
Other Businesses, net of eliminations and reclassifications	59.1			53.3			64.0
Total Nonutility Group	767.5			749.9			778.8
Corporate & Other	449.1			628.4			742.4
Eliminations	(475.5		)	(618.5		)	(713.9		)
Consolidated Assets	$	6,239.3		$	5,800.7		$	5,400.0