BUSINESS SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2011

BUSINESS SEGMENTS [Abstract]

BUSINESS SEGMENTS [Text Block]

12. BUSINESS SEGMENT INFORMATION

Financial data by reportable segment is as follows (in millions):

Nicor Inc.
Business Segments - Financial Data
	Three months ended						Six months ended
	June 30						June 30
	2011			2010			2011			2010
Gas distribution
Operating revenues
External customers	$	350.5		$	292.3		$	1,250.3		$	1,342.3
Intersegment		8.4			7.2			24.4			26.0
	$	358.9		$	299.5		$	1,274.7		$	1,368.3
Operating income	$	27.9		$	27.4		$	93.8		$	120.6
Shipping
Operating revenues
External customers	$	79.9		$	86.0		$	160.7		$	169.5
Intersegment		-			-			-			-
	$	79.9		$	86.0		$	160.7		$	169.5
Operating income (loss)	$	(.3	)	$	4.2		$	(1.5	)	$	3.7
Other Energy Ventures
Wholesale marketing
Operating revenues
External customers	$	7.1		$	7.8		$	11.2		$	13.4
Intersegment		1.5			2.5			7.7			8.2
	$	8.6		$	10.3		$	18.9		$	21.6
Operating income	$	1.5		$	2.7		$	4.6		$	7.4
Other
Operating revenues
External customers	$	39.5		$	39.5		$	91.8		$	93.3
Intersegment		.4			.5			.8			1.1
	$	39.9		$	40.0		$	92.6		$	94.4
Operating income	$	7.9		$	8.7		$	9.3		$	8.4
Corporate and eliminations
Operating revenues
External customers	$	-		$	-		$	-		$	-
Intersegment		(10.3	)		(10.2	)		(32.9	)		(35.3	)
	$	(10.3	)	$	(10.2	)	$	(32.9	)	$	(35.3	)
Operating income (loss)	$	(1.8	)	$	.4		$	(5.2	)	$	(.7	)
Consolidated
Operating revenues
External customers	$	477.0		$	425.6		$	1,514.0		$	1,618.5
Intersegment		-			-			-			-
	$	477.0		$	425.6		$	1,514.0		$	1,618.5
Operating income	$	35.2		$	43.4		$	101.0		$	139.4

Intersegment revenues include gas distribution revenues related to customers entering into utility-bill management contracts with Nicor Solutions and wholesale marketing revenues from the sale of natural gas to Nicor Advanced Energy.  Under the utility-bill management contracts, Nicor Solutions bills a fixed amount to a customer, regardless of changes in natural gas prices or weather, and in exchange pays the customer’s utility bills from Nicor Gas.  Nicor Advanced Energy provides natural gas and related services on an unregulated basis to residential and small commercial customers and purchases most of its natural gas supplies from Nicor Enerchange.  Intersegment revenues are eliminated in the Condensed Consolidated Financial Statements.

Benefits (costs) associated with Nicor’s other energy ventures’ utility-bill management contracts attributable to variances from normal weather for the three and six months ended June 30, 2011 were $(0.6) million and $(2.3) million, respectively, and $0.9 million and $(0.4) million, respectively, for the same periods in 2010.  The weather impact of these contracts generally serves to partially offset the gas distribution segment’s weather risk.  This benefit (cost) is recorded primarily at the corporate level as a result of an agreement between the parent company and certain of its subsidiaries.  Additionally, operating income of corporate and eliminations includes merger transaction costs of approximately $0.9 million and $2.4 million, respectively, for the three and six months ended June 30, 2011.