XML 27 R16.htm IDEA: XBRL DOCUMENT v3.3.1.900
Operating Segments
 6 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Operating Segments
Operating Segments

Our Company has two reportable segments:  a regulated segment and a non-regulated segment. Our regulated segment includes our natural gas distribution and transportation services, which are regulated by the Kentucky Public Service Commission. Our non-regulated segment includes our natural gas marketing activities and the sales of natural gas liquids. The non-regulated segment produces a portion of the natural gas it markets to its customers. The division of these segments into separate revenue generating components is based upon regulation, products and services. Both segments operate in the single geographic area of central and southeastern Kentucky. Our chief operating decision maker is our Chief Executive Officer. We evaluate performance based on net income of the respective segment.

The reportable segments follow the same accounting policies as described in the Summary of Significant Accounting Policies in Note 1 of the Notes to Consolidated Financial Statements that are included in our Annual Report on Form 10-K for the year ended June 30, 2015.  Intersegment revenues and expenses represent the natural gas transportation costs from the regulated segment to the non-regulated segment at our tariff rates.  Operating expenses, taxes and interest are allocated to the non-regulated segment.
 
Segment information is shown in the following table:
 
Three Months Ended
 
Six Months Ended
 
 
 
December 31,
 
December 31,
 
 
($000)
2015
 
2014
 
2015
 
2014
 
 
Operating Revenues
 
 
 
 
 
 
 
 
 
Regulated
 
 
 
 
 
 
 
 
 
External customers
10,873

 
16,103

 
16,708

 
22,247

 
 
Intersegment
918

 
1,064

 
1,590

 
1,788

 
 
Total regulated
11,791

 
17,167

 
18,298

 
24,035

 
 
Non-regulated

 

 

 

 
 
External customers
5,800

 
9,772

 
10,359

 
16,950

 
 
 
 
 
 
 
 
 
 
 
 
Eliminations for intersegment
(918
)
 
(1,064
)
 
(1,590
)
 
(1,788
)
 
 
Consolidated operating revenues
16,673

 
25,875

 
27,067

 
39,197

 
 
 

 

 

 

 
 
Net Income

 

 

 

 
 
Regulated
1,702

 
2,412

 
1,185

 
2,029

 
 
Non-regulated
101

 
245

 
94

 
316

 
 
Consolidated net income
1,803

 
2,657

 
1,279

 
2,345