Business Segment Data

The Company's reportable segments are those that are based on the Company's method of internal reporting, which generally segregates the strategic business units due to differences in products, services and regulation. The internal reporting of these operating segments is defined based on the reporting and review process used by the Company's chief executive officer. The vast majority of the Company's operations are located within the United States.

The electric segment generates, transmits and distributes electricity in Montana, North Dakota, South Dakota and Wyoming. The natural gas distribution segment distributes natural gas in those states as well as in Idaho, Minnesota, Oregon and Washington. These operations also supply related value-added services.

The pipeline and midstream segment provides natural gas transportation, underground storage, gathering and processing services, as well as oil gathering, through regulated and nonregulated pipeline systems and processing facilities primarily in the Rocky Mountain and northern Great Plains regions of the United States. This segment also provides cathodic protection and other energy-related services.

The construction materials and contracting segment mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mixed concrete, cement, asphalt, liquid asphalt and other value-added products. It also performs integrated contracting services. This segment operates in the central, southern and western United States and Alaska and Hawaii.

The construction services segment provides utility construction services specializing in constructing and maintaining electric and communication lines, gas pipelines, fire suppression systems, and external lighting and traffic signalization. This segment also provides utility excavation and inside electrical and mechanical services, and manufactures and distributes transmission line construction equipment and other supplies.

The Other category includes the activities of Centennial Capital, which insures various types of risks as a captive insurer for certain of the Company's subsidiaries. The function of the captive insurer is to fund the deductible layers of the insured companies' general liability, automobile liability and pollution liability coverages. Centennial Capital also owns certain real and personal property. The Other category also includes certain general and administrative costs (reflected in operation and maintenance expense) and interest expense which were previously allocated to the refining business and Fidelity and do not meet the criteria for income (loss) from discontinued operations. The Other category also includes Centennial Resources' former investment in the Brazilian Transmission Lines.

Discontinued operations includes the results of Dakota Prairie Refining and Fidelity other than certain general and administrative costs and interest expense as described above. Dakota Prairie Refining refined crude oil and produced and sold diesel fuel, naphtha, ATBs and other by-products of the production process. In the second quarter of 2016, the Company sold all of the outstanding membership interests in Dakota Prairie Refining. Fidelity engaged in oil and natural gas development and production activities in the Rocky Mountain and Mid-Continent/Gulf States regions of the United States. Between September 2015 and March 2016, the Company entered into purchase and sale agreements to sell all of Fidelity's oil and natural gas assets. The completion of these sales occurred between October 2015 and April 2016. Discontinued operations also includes legal expenses and a benefit related to the vacation of an arbitration award in 2014 related to Centennial Resources. For more information on discontinued operations, see Note 2.

The information below follows the same accounting policies as described in the Summary of Significant Accounting Policies. Information on the Company's businesses as of December 31 and for the years then ended was as follows:



	2016			2015			2014
				(In thousands)
External operating revenues:
Regulated operations:
Electric	$	322,356		$	280,615		$	277,874
Natural gas distribution	766,115			817,419			921,986
Pipeline and midstream	52,983			51,004			47,043
	1,141,454			1,149,038			1,246,903
Nonregulated operations:
Pipeline and midstream	39,602			54,281			64,494
Construction materials and contracting	1,873,696			1,901,530			1,740,089
Construction services	1,072,663			907,767			1,062,055
Other	1,413			1,436			1,532
	2,987,374			2,865,014			2,868,170
Total external operating revenues	$	4,128,828		$	4,014,052		$	4,115,073

Intersegment operating revenues:
Regulated operations:
Electric	$	—		$	—		$	—
Natural gas distribution	—			—			—
Pipeline and midstream	48,794			49,065			45,013
	48,794			49,065			45,013
Nonregulated operations:
Pipeline and midstream	223			554			742
Construction materials and contracting	574			2,752			25,241
Construction services	609			18,660			57,474
Other	7,230			7,755			7,832
	8,636			29,721			91,289
Intersegment eliminations	(57,430		)	(78,786		)	(136,302		)
Total intersegment operating revenues	$	—		$	—		$	—

Depreciation, depletion and amortization:
Electric	$	50,220		$	37,583		$	35,008
Natural gas distribution	65,426			64,756			54,700
Pipeline and midstream	24,885			27,981			29,749
Construction materials and contracting	58,413			65,937			68,557
Construction services	15,307			13,420			12,874
Other	2,067			2,070			2,196
Total depreciation, depletion and amortization	$	216,318		$	211,747		$	203,084

Interest expense:
Electric	$	24,982		$	17,421		$	15,595
Natural gas distribution	30,405			29,471			27,217
Pipeline and midstream	7,903			9,895			9,946
Construction materials and contracting	15,265			15,183			16,368
Construction services	4,059			3,959			4,176
Other	5,854			15,853			13,823
Intersegment eliminations	(620		)	(603		)	(254		)
Total interest expense	$	87,848		$	91,179		$	86,871



	2016			2015			2014
				(In thousands)
Income taxes:
Electric	$	1,449		$	11,523		$	12,442
Natural gas distribution	9,181			11,377			11,350
Pipeline and midstream	12,408			7,505			12,232
Construction materials and contracting	60,625			41,619			18,586
Construction services	17,748			16,432			24,753
Other	(2,028		)	(9,834		)	(11,136		)
Intersegment eliminations	(6,251		)	(7,958		)	(3,805		)
Total income taxes	$	93,132		$	70,664		$	64,422

Earnings (loss) on common stock:
Regulated operations:
Electric	$	42,222		$	35,914		$	36,731
Natural gas distribution	27,102			23,607			30,484
Pipeline and midstream	22,060			20,680			15,440
	91,384			80,201			82,655
Nonregulated operations:
Pipeline and midstream	1,375			(7,430		)	9,226
Construction materials and contracting	102,687			89,096			51,510
Construction services	33,945			23,762			54,432
Other	(3,231		)	(14,941		)	(7,386		)
	134,776			90,487			107,782
Intersegment eliminations (a)	6,251			5,016			(6,095		)
Earnings on common stock before income (loss) from discontinued operations	232,411			175,704			184,342
Income (loss) from discontinued operations, net of tax (a)	(300,354		)	(834,080		)	109,311
Loss from discontinued operations attributable to noncontrolling interest	(131,691		)	(35,256		)	(3,895		)
Total earnings (loss) on common stock	$	63,748		$	(623,120	)	$	297,548

Capital expenditures:
Electric	$	111,134		$	332,876		$	185,121
Natural gas distribution	126,272			130,793			120,613
Pipeline and midstream	34,467			18,315			61,754
Construction materials and contracting	37,845			48,126			37,896
Construction services	60,344			38,269			26,942
Other	2,358			3,755			2,131
Total capital expenditures (b)	$	372,420		$	572,134		$	434,457

Assets:
Electric (c)	$	1,406,694		$	1,325,858		$	1,028,001
Natural gas distribution (c)	2,099,296			2,038,433			1,935,271
Pipeline and midstream	550,615			591,651			651,925
Construction materials and contracting	1,220,459			1,261,963			1,260,534
Construction services	513,093			442,845			437,322
Other (d)	283,255			287,940			315,495
Assets held for sale	211,055			616,464			2,176,857
Total assets	$	6,284,467		$	6,565,154		$	7,805,405



	2016		2015		2014
			(In thousands)
Property, plant and equipment:
Electric (c)	$	1,888,613	$	1,786,148	$	1,457,101
Natural gas distribution (c)	2,179,413		2,076,581		1,904,759
Pipeline and midstream	672,199		758,729		818,388
Construction materials and contracting	1,549,375		1,553,428		1,529,942
Construction services	171,361		163,279		144,395
Other	49,268		49,537		50,937
Less accumulated depreciation, depletion and amortization	2,578,902		2,489,322		2,385,202
Net property, plant and equipment	$	3,931,327	$	3,898,380	$	3,520,320


(a)	Includes eliminations for the presentation of income tax adjustments between continuing and discontinued operations.


(b)	Capital expenditures for 2016, 2015 and 2014 include noncash capital expenditure-related accounts payable and AFUDC, totaling $(15.8) million, $35.3 million and $5.1 million, respectively.


(c)	Includes allocations of common utility property.


(d)	Includes assets not directly assignable to a business (i.e. cash and cash equivalents, certain accounts receivable, certain investments and other miscellaneous current and deferred assets).