XML 66 R16.htm IDEA: XBRL DOCUMENT v3.2.0.727
Segment Information
 6 Months Ended
Jun. 30, 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. Effective April 1, 2015, this segment includes Aspire Energy of Ohio, whose services include natural gas gathering and processing (See Note 3, Acquisitions, regarding the acquisition of Gatherco). 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
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2015
 
2014
 
2015
 
2014
(in thousands)
 
 
 
 
 
 
 
 
Operating Revenues, Unaffiliated Customers
 
 
 
 
 
 
 
 
Regulated Energy segment
 
$
61,790

 
$
61,348

 
$
171,082

 
$
163,222

Unregulated Energy segment
 
30,892

 
34,299

 
91,681

 
114,173

Other businesses
 
—

 
4,850

 
—

 
9,439

Total operating revenues, unaffiliated customers
 
$
92,682

 
$
100,497

 
$
262,763

 
$
286,834

Intersegment Revenues (1)
 
 
 
 
 
 
 
 
Regulated Energy segment
 
$
270

 
$
298

 
$
560

 
$
590

Unregulated Energy segment
 
1,666

 
22

 
1,873

 
121

Other businesses
 
220

 
248

 
440

 
502

Total intersegment revenues
 
$
2,156

 
$
568

 
$
2,873

 
$
1,213

Operating Income (Loss)
 
 
 
 
 
 
 
 
Regulated Energy segment
 
$
13,605

 
$
10,711

 
$
35,788

 
$
31,802

Unregulated Energy segment
 
(540
)
 
(43
)
 
14,689

 
10,815

Other businesses and eliminations
 
105

 
(211
)
 
201

 
(538
)
Total operating income
 
13,170

 
10,457

 
50,678

 
42,079

Other income (loss), net of other expenses
 
(171
)
 
405

 
(38
)
 
413

Interest
 
2,485

 
2,303

 
4,933

 
4,459

Income before Income Taxes
 
10,514

 
8,559

 
45,707

 
38,033

Income taxes
 
4,220

 
3,425

 
18,304

 
15,218

Net Income
 
$
6,294

 
$
5,134

 
$
27,403

 
$
22,815

 
(1) 
All significant intersegment revenues are billed at market rates and have been eliminated from consolidated operating revenues.
(in thousands)
 
June 30, 2015
 
December 31, 2014
Identifiable Assets
 
 
 
 
Regulated Energy segment
 
$
800,719

 
$
796,021

Unregulated Energy segment
 
147,102

 
84,732

Other businesses and eliminations
 
22,815

 
23,716

Total identifiable assets
 
$
970,636

 
$
904,469



Our operations are entirely domestic.