Segment and Related Information

12 Months Ended

Dec. 31, 2019



(20) Segment and Related 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 and unregulated activity.

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 for the twelve months ended are as follows (in thousands):



December 31, 2019	Electric			Gas			Other			Eliminations		Total
Operating revenues	$	981,178		$	276,732		$	—		$	—	$	1,257,910
Cost of sales	239,589			78,431			—			—		318,020
Gross margin	741,589			198,301			—			—		939,890
Operating, general and administrative	232,424			82,732			3,073			—		318,229
Property and other taxes	134,686			37,192			10			—		171,888
Depreciation and depletion	143,262			29,661			—			—		172,923
Operating income (loss)	231,217			48,716			(3,083		)	—		276,850
Interest expense, net	(78,809		)	(6,218		)	(10,041		)	—		(95,068		)
Other (expense) income, net	(1,365		)	(814		)	2,592			—		413
Income tax (expense) benefit	(6,079		)	493			25,511			—		19,925
Net income	$	144,964		$	42,177		$	14,979		$	—	$	202,120
Total assets	$	4,685,990		$	1,220,048		$	4,664		$	—	$	5,910,702
Capital expenditures	$	241,190		$	74,826		$	—		$	—	$	316,016



December 31, 2018	Electric			Gas			Other			Eliminations		Total
Operating revenues	$	921,093		$	270,916		$	—		$	—	$	1,192,009
Cost of sales	194,608			78,275			—			—		272,883
Gross margin	726,485			192,641			—			—		919,126
Operating, general and administrative	223,598			82,864			657			—		307,119
Property and other taxes	134,681			36,569			9			—		171,259
Depreciation and depletion	144,636			29,822			18			—		174,476
Operating income (loss)	223,570			43,386			(684		)	—		266,272
Interest expense, net	(79,033		)	(5,858		)	(7,097		)	—		(91,988		)
Other income, net	2,794			962			210			—		3,966
Income tax benefit (expense)	21,686			9,268			(12,244		)	—		18,710
Net income (loss)	$	169,017		$	47,758		$	(19,815	)	$	—	$	196,960
Total assets	$	4,512,392		$	1,127,252		$	4,732		$	—	$	5,644,376
Capital expenditures	$	221,968		$	61,998		$	—		$	—	$	283,966



December 31, 2017	Electric			Gas			Other			Eliminations		Total
Operating revenues	$	1,037,053		$	268,599		$	—		$	—	$	1,305,652
Cost of sales	334,029			76,320			—			—		410,349
Gross margin	703,024			192,279			—			—		895,303
Operating, general and administrative	216,003			78,757			43			—		294,803
Property and other taxes	127,391			35,214			9			—		162,614
Depreciation and depletion	136,556			29,548			33			—		166,137
Operating income (loss)	223,074			48,760			(85		)	—		271,749
Interest expense, net	(82,454		)	(5,920		)	(3,889		)	—		(92,263		)
Other (loss) income, net	(3,487		)	(878		)	950			—		(3,415		)
Income tax (expense) benefit	(7,424		)	(6,684		)	740			—		(13,368		)
Net income (loss)	$	129,709		$	35,278		$	(2,284	)	$	—	$	162,703
Total assets	$	4,346,484		$	1,071,847		$	2,586		$	—	$	5,420,917
Capital expenditures	$	226,077		$	50,361		$	—		$	—	$	276,438