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Segment Information
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Segment Information
Segment Information
We use the management approach to identify operating segments. We organize our business around differences in regulatory environment and/or products or services, and the operating results of each segment are regularly reviewed by the chief operating decision maker (our Chief Executive Officer) in order to make decisions about resources and to assess performance. The segments are evaluated based on their pre-tax operating income. Our operations comprise three operating segments:
•
Regulated Energy. The Regulated Energy segment includes natural gas distribution, natural gas transmission and electric distribution operations. All operations in this segment are regulated, as to their rates and services, by the PSC having jurisdiction in each operating territory or by the FERC in the case of Eastern Shore.
•
Unregulated Energy. The Unregulated Energy segment includes propane distribution and wholesale marketing operations, and natural gas marketing operations, which are unregulated as to their rates and services. Also included in this segment are other unregulated energy services, such as energy-related merchandise sales and heating, ventilation and air conditioning, plumbing and electrical services.
•
Other. At September 30, 2014, our “Other” segment consisted primarily of BravePoint, our advanced information services subsidiary. Also included in this segment are our unregulated subsidiaries that own real estate leased to Chesapeake and certain corporate costs not allocated to other operations. On October 1, 2014, we sold BravePoint (see Note 3, Acquisitions and Disposition, for further details).
The following table presents financial information about our reportable segments:
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2014
 
2013
 
2014
 
2013
(in thousands)
 
 
 
 
 
 
 
 
Operating Revenues, Unaffiliated Customers
 
 
 
 
 
 
 
 
Regulated Energy
 
$
59,086

 
$
55,387

 
$
222,308

 
$
191,666

Unregulated Energy
 
27,041

 
26,103

 
141,215

 
115,367

Other
 
5,492

 
5,055

 
14,931

 
14,386

Total operating revenues, unaffiliated customers
 
$
91,619

 
$
86,545

 
$
378,454

 
$
321,419

Intersegment Revenues (1)
 
 
 
 
 
 
 
 
Regulated Energy
 
$
270

 
$
293

 
$
860

 
$
797

Unregulated Energy
 
30

 
2,159

 
150

 
3,911

Other
 
258

 
274

 
760

 
743

Total intersegment revenues
 
$
558

 
$
2,726

 
$
1,770

 
$
5,451

Operating Income
 
 
 
 
 
 
 
 
Regulated Energy
 
$
9,202

 
$
10,243

 
$
41,004

 
$
36,169

Unregulated Energy
 
(1,972
)
 
(1,803
)
 
8,843

 
8,013

Other and eliminations
 
562

 
280

 
25

 
240

Total operating income
 
7,792

 
8,720

 
49,872

 
44,422

Other income (loss), net of other expenses
 
(32
)
 
101

 
380

 
413

Interest
 
2,495

 
2,026

 
6,954

 
6,114

Income before Income Taxes
 
5,265

 
6,795

 
43,298

 
38,721

Income taxes
 
2,085

 
2,916

 
17,303

 
15,617

Net Income
 
$
3,180

 
$
3,879

 
$
25,995

 
$
23,104

 
(1) 
All significant intersegment revenues are billed at market rates and have been eliminated from consolidated operating revenues.
(in thousands)
 
September 30, 2014
 
December 31, 2013
Identifiable Assets
 
 
 
 
Regulated energy
 
$
744,142

 
$
708,950

Unregulated energy
 
75,973

 
100,585

Other
 
27,435

 
27,987

Total identifiable assets
 
$
847,550

 
$
837,522



Our operations are almost entirely domestic. BravePoint had infrequent transactions in foreign countries, which were denominated and paid primarily in U.S. dollars. These transactions were immaterial to the consolidated revenues.