Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting Information [Line Items]

Segment Reporting Disclosure [Text Block]

Segment Information

Our reportable business segments are primarily engaged in the electric and natural gas business. The remainder of our operations are presented as other, which primarily consists of unallocated corporate costs.

We evaluate the performance of these segments based on gross margin. The accounting policies of the operating segments are the same as the parent except that the parent allocates some of its operating expenses to the operating segments according to a methodology designed by management for internal reporting purposes and involves estimates and assumptions.

Financial data for the business segments are as follows (in thousands):

Three Months Ended
March 31, 2017	Electric			Gas			Other			Eliminations		Total
Operating revenues	266,239			$	101,073		$	—		$	—	$	367,312
Cost of sales	85,385			34,432			—			—		119,817
Gross margin	180,854			66,641			—			—		247,495
Operating, general and administrative	58,619			21,629			714			—		80,962
Property and other taxes	31,161			8,764			3			—		39,928
Depreciation and depletion	34,070			7,383			8			—		41,461
Operating income (loss)	57,004			28,865			(725		)	—		85,144
Interest expense	(21,037		)	(1,546		)	(817		)	—		(23,400		)
Other income	706			228			566			—		1,500
Income tax (expense) benefit	(2,887		)	(6,951		)	3,161			—		(6,677		)
Net income	$	33,786		$	20,596		$	2,185		$	—	$	56,567
Total assets	$	4,388,267		$	1,106,062		$	5,972		—		$	5,500,301
Capital expenditures	$	41,041		$	10,478		$	—		—		$	51,519

Three Months Ended
March 31, 2016	Electric			Gas			Other			Eliminations		Total
Operating revenues	$	241,342		$	91,197		$	—		$	—	$	332,539
Cost of sales	83,624			31,810			—			—		115,434
Gross margin	157,718			59,387			—			—		217,105
Operating, general and administrative	55,443			21,912			2,506			—		79,861
Property and other taxes	27,429			7,989			3			—		35,421
Depreciation and depletion	32,521			7,361			8			—		39,890
Operating income (loss)	42,325			22,125			(2,517		)	—		61,933
Interest expense	(22,055		)	(1,955		)	(499		)	—		(24,509		)
Other income	467			309			2,326			—		3,102
Income tax (expense) benefit (1)	(1,015		)	(3,021		)	3,377			—		(659		)
Net income (1)	$	19,722		$	17,458		$	2,687		$	—	$	39,867
Total assets	$	4,180,672		$	1,073,778		$	6,723		$	—	$	5,261,173
Capital expenditures	$	41,625		$	9,693		$	—		$	—	$	51,318

_____________________

(1)         We adopted the provisions of ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, during the fourth quarter of 2016, which resulted in the recognition of $1.8 million in excess tax benefits. In accordance with the guidance, the $1.8 million impact of this adoption is reflected as of January 1, 2016, which resulted in an increase in net income for the three months ended March 31, 2016 above.