Segment Information

3 Months Ended

Mar. 31, 2015

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 two reportable 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.

We had previously identified "Other" as a separate reportable segment, which consisted primarily of our advanced information services subsidiary. As a result of the sale of that subsidiary on October 1, 2014, "Other" is no longer a separate reportable segment.

The following table presents financial information about our reportable segments:

	Three Months Ended
	March 31,
	2015		2014
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy segment	$	109,292	$	101,874
Unregulated Energy segment	60,789		79,874
Other businesses	—		4,589
Total operating revenues, unaffiliated customers	$	170,081	$	186,337
Intersegment Revenues (1)
Regulated Energy segment	$	290	$	292
Unregulated Energy segment	207		99
Other businesses	221		253
Total intersegment revenues	$	718	$	644
Operating Income
Regulated Energy segment	$	22,182	$	21,091
Unregulated Energy segment	15,229		10,858
Other businesses and eliminations	97		(326		)
Total operating income	37,508		31,623
Other income, net of other expenses	133		6
Interest	2,448		2,155
Income before Income Taxes	35,193		29,474
Income taxes	14,084		11,793
Net Income	$	21,109	$	17,681

⁽¹⁾  All significant intersegment revenues are billed at market rates and have been eliminated from consolidated operating revenues.

(in thousands)	March 31, 2015		December 31, 2014
Identifiable Assets
Regulated Energy segment	$	788,600	$	796,021
Unregulated Energy segment	89,950		84,732
Other businesses and eliminations	35,157		23,716
Total identifiable assets	$	913,707	$	904,469

Our operations are entirely domestic.