Segment Information

12 Months Ended

Dec. 31, 2015

Text Block [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, whose services include natural gas gathering, processing, transportation and supply (See Note 4, Acquisitions and Dispositions, 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 former 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 information about our reportable segments.

	For the Year Ended December 31,
	2015		2014		2013
(in thousands)
Operating Revenues, Unaffiliated Customers
Regulated Energy	$	300,674	$	299,345	$	263,573
Unregulated Energy	158,570		184,557		161,760
Other businesses and eliminations	—		14,932		18,973
Total operating revenues, unaffiliated customers	$	459,244	$	498,834	$	444,306
Intersegment Revenues(1)
Regulated Energy	$	1,228	$	1,097	$	1,064
Unregulated Energy	3,537		404		4,963
Other businesses	880		979		1,017
Total intersegment revenues	$	5,645	$	2,480	$	7,044
Operating Income
Regulated Energy	$	60,985	$	50,451	$	50,084
Unregulated Energy	16,355		11,723		12,353
Other businesses and eliminations	418		105		297
Operating Income	77,758		62,279		62,734
Gains from sales of businesses	—		7,139		—
Other income, net of other expenses	293		101		372
Interest charges	10,006		9,482		8,234
Income Before Income taxes	68,045		60,037		54,872
Income taxes	26,905		23,945		22,085
Net Income	$	41,140	$	36,092	$	32,787
Depreciation and Amortization
Regulated Energy	$	24,195	$	21,915	$	19,822
Unregulated Energy	5,679		3,994		3,686
Other businesses and eliminations	98		407		457
Total depreciation and amortization	$	29,972	$	26,316	$	23,965
Capital Expenditures
Regulated Energy	$	98,372	$	84,959	$	95,944
Unregulated Energy	38,347		9,648		4,829
Other businesses	5,994		3,450		7,266
Total capital expenditures	$	142,713	$	98,057	$	108,039

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

	As of December 31,
	2015		2014
Identifiable Assets
Regulated Energy	$	870,559	$	796,021
Unregulated Energy	172,803		84,732
Other businesses	25,224		23,716
Total identifiable assets	$	1,068,586	$	904,469

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