Segment Information

The accounting policies of the segments are described under note

– Summary of Significant Accounting Policies. The Company's businesses have been classified into

three

segments to be consistent with its business strategy and the reporting and review process used by the Company’s chief operating decision makers.

These businesses sell products and provide services to customers primarily in the United States. The Company’s business structure currently includes the following

three

segments: Electric, Manufacturing and Plastics. The chart below indicates the companies included in each segment.

Electric includes the production, transmission, distribution and sale of electric energy in Minnesota, North Dakota and South Dakota by OTP. In addition, OTP is a participant in the Midcontinent Independent System Operator, Inc. (MISO) markets. OTP

’s operations have been the Company’s primary business since

1907.

Manufacturing consists of businesses in the following manufacturing activities: contract machining, metal parts stamping, fabrication and painting, and production of

plastic thermoformed horticultural containers, life science and industrial packaging, and material handling components. These businesses have manufacturing facilities in Georgia, Illinois and Minnesota and sell products primarily in the United States.

Plastics consists of businesses producing polyvinyl chloride (PVC) pipe at plants in North Dakota and Arizona. The PVC pipe is sold primarily in the upper Midwest and Southwest regions of the United States.

OTP is a wholly owned subsidiary of the Company. All of the Company

’s other businesses are owned by its wholly owned subsidiary, Varistar Corporation (Varistar). The Company’s Corporate operating costs include items such as corporate staff and overhead costs, the results of the Company’s captive insurance company and other items excluded from the measurement of operating segment performance. Corporate assets consist primarily of cash, prepaid expenses, investments and fixed assets. Corporate is

not

an operating segment. Rather, it is added to operating segment totals to reconcile to totals on the Company’s consolidated financial statements.

single customer accounted for over

10%

of the Company

’s consolidated revenues in

2016.

All of the Company’s long-lived assets are within the United States and sales within the United States accounted for

98.3%

and

98.5%

of its operating revenues for the respective

three

-month periods ended

June 30, 2017

and

2016,

and

98.3%

and

98.7%

of its operating revenues for the respective

six

-month periods ended

June 30, 2017

and

2016.

The Company evaluates the performance of its business segments and allocates resources to them based on earnings contribution and return on total invested capital. Information for the business segments for

the

three

- and

six

-month periods ended

June 30, 2017

and

2016

and total assets by business segment as of

June 30, 2017

and

December

31,

2016

are presented in the following tables:

Operating Revenue

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	201 7			201 6			201 7			201 6
Electric	$	102,236		$	97,925		$	220,787		$	210,919
Manufacturing		59,304			58,452			117,721			118,272
Plastics		50,551			47,112			87,708			80,549
Intersegment Eliminations		(5	)		(7	)		(13	)		(16	)
Total	$	212,086		$	203,482		$	426,203		$	409,724

Interest Charges

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	201 7		201 6		201 7		201 6
Electric	$	6,439	$	6,156	$	12,825	$	12,440
Manufacturing		553		1,006		1,107		1,998
Plastics		173		279		326		523
Corporate and Intersegment Eliminations		362		535		731		1,009
Total	$	7,527	$	7,976	$	14,989	$	15,970

Income Taxes

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	201 7			201 6			201 7			201 6
Electric	$	2,442		$	1,920		$	8,504		$	6,532
Manufacturing		1,573			1,791			2,628			2,810
Plastics		2,858			2,262			4,248			3,629
Corporate		(976	)		(890	)		(3,120	)		(2,396	)
Total	$	5,897		$	5,083		$	12,260		$	10,575

Net Income (Loss)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(in thousands)	201 7			201 6			201 7			201 6
Electric	$	10,134		$	9,148		$	25,694		$	21,686
Manufacturing		2,955			3,009			5,127			4,862
Plastics		4,637			3,485			7,074			5,637
Corporate		(1,009	)		(86	)		(1,649	)		(2,139	)
Discontinued Operations		61			119			117			149
Total	$	16,778		$	15,675		$	36,363		$	30,195

Identifiable

Assets

	June 30 ,		December 31,
(in thousands)	201 7		201 6
Electric	$	1,639,699	$	1,622,231
Manufacturing		170,429		166,525
Plastics		94,900		84,592
Corporate		39,028		39,037
Total	$	1,944,056	$	1,912,385