Segment Information

12 Months Ended

Dec. 31, 2015

14. Segment Information

TECO Energy is primarily an electric and gas utility holding company. Its diversified activities have been classified as discontinued operations. Segments are determined based on how management evaluates, measures and makes decisions with respect to the operations of the entity. The management of TECO Energy reports segments based on each segment’s contribution of revenues, net income and total assets as required by the accounting guidance for disclosures about segments of an enterprise and related information. All significant intercompany transactions are eliminated in the Consolidated Financial Statements of TECO Energy, but are included in determining reportable segments.

Tampa Electric provides retail electric utility services to almost 719,000 customers in West Central Florida. PGS is engaged in the purchase and distribution of natural gas for approximately 361,000 residential, commercial, industrial and electric power generation customers in the State of Florida. NMGC is engaged in the purchase and distribution of natural gas for more than 516,000 residential, commercial, industrial customers in the State of New Mexico.

	Tampa						TECO											TECO
(millions)	Electric		PGS		NMGC ⁽⁴⁾		Coal ⁽²⁾				Other ^(4),(5)			Eliminations ⁽⁵⁾				Energy
2015
Revenues—external	$	2,014.9	$	401.5	$	316.5	$	0.0			$	10.6		$	0.0			$	2,743.5
Sales to affiliates		3.4		6.0		0.0		0.0				0.1			(9.5	)			0.0
Total revenues		2,018.3		407.5		316.5		0.0				10.7			(9.5	)			2,743.5
Depreciation and amortization		256.7		56.8		33.8		0.0				1.7			0.0				349.0
Total interest charges ⁽¹⁾		95.1		14.5		13.0		0.0				65.1			(1.3	)			186.4
Internally allocated interest ⁽¹⁾		0.0		0.0		0.0		0.0				1.3			(1.3	)			0.0
Provision for income taxes		143.6		21.9		15.4		0.0				(25.6	)		0.0				155.3
Net income from continuing operations		241.0		35.3		24.1		0.0				(59.2	)		0.0				241.2
Discontinued operations, net of tax		0.0		0.0		0.0		(69.6	)			1.9			0.0				(67.7	)
Net income		241.0		35.3		24.1		(69.6	)			(57.3	)		0.0				173.5
Goodwill		0.0		0.0		408.4		0.0				0.0			0.0				408.4
Total assets		7,020.7		1,137.4		1,231.3		0.0		⁽³⁾		1,947.9			(2,376.2	)	⁽⁶⁾		8,961.1
Capital expenditures		592.6		94.0		48.7		3.7				0.7			0.0				739.7
2014
Revenues—external	$	2,019.9	$	398.5	$	137.5	$	0.0			$	10.5		$	0.0			$	2,566.4
Sales to affiliates		1.1		1.1		0.0		0.0				0.2			(2.4	)			0.0
Total revenues		2,021.0		399.6		137.5		0.0				10.7			(2.4	)			2,566.4
Depreciation and amortization		248.6		54.0		11.0		0.0				1.7			0.0				315.3
Total interest charges ⁽¹⁾		92.8		13.8		4.2		0.0				66.1			(5.8	)			171.1
Internally allocated interest ⁽¹⁾		0.0		0.0		0.0		0.0				5.8			(5.8	)			0.0
Provision for income taxes		133.2		22.7		7.1		0.0				(24.1	)		0.0				138.9
Net income from continuing operations		224.5		35.8		10.5		0.0				(64.4	)		0.0				206.4
Discontinued operations, net of tax		0.0		0.0		0.0		(82.0	)			6.0			0.0				(76.0	)
Net income		224.5		35.8		10.5		(82.0	)			(58.4	)		0.0				130.4
Goodwill		0.0		0.0		408.3		0.0				0.0			0.0				408.3
Total assets		6,565.4		1,082.8		1,237.2		227.7		⁽³⁾		1,611.6			(1,998.5	)	⁽⁶⁾		8,726.2
Capital expenditures		582.1		88.9		18.2		14.6				0.0			0.0				703.8
2013
Revenues—external	$	1,949.6	$	392.7	$	0.0	$	0.0			$	12.8		$	0.0			$	2,355.1
Sales to affiliates		0.9		0.8		0.0		0.0				0.5			(2.2	)			0.0
Total revenues		1,950.5		393.5		0.0		0.0				13.3			(2.2	)			2,355.1
Depreciation and amortization		238.8		51.5		0.0		0.0				1.5			0.0				291.8
Total interest charges ⁽¹⁾		91.8		13.5		0.0		0.0				63.9			(7.8	)			161.4
Internally allocated interest ⁽¹⁾		0.0		0.0		0.0		0.0				7.8			(7.8	)			0.0
Provision for income taxes		116.9		21.9		0.0		0.0				(26.2	)		0.0				112.6
Net income from continuing operations		190.9		34.7		0.0		0.0				(36.9	)		0.0				188.7
Discontinued operations, net of tax		0.0		0.0		0.0		9.0				0.0			0.0				9.0
Net income		190.9		34.7		0.0		9.0				(36.9	)		0.0				197.7
Total assets		6,126.9		1,021.2		0.0		316.3		⁽³⁾		1,739.2			(1,755.6	)	⁽⁶⁾		7,448.0
Capital expenditures		422.3		79.0		0.0		22.4				2.4			0.0				526.1

(1)

Segment net income is reported on a basis that includes internally allocated financing costs. Total interest charges include internally allocated interest costs that for 2015, 2014 and 2013 were at a pretax rate of 6.00%, based on an average of each subsidiary’s equity and indebtedness to TECO Energy assuming a 50/50 debt/equity capital structure.

(2)	All periods have been adjusted to reflect the reclassification of results from operations to discontinued operations for TECO Coal and certain charges at Other, including Parent and TECO Diversified, that directly relate to TECO Coal or TECO Guatemala. See Note 19.

(3)	The carrying value of mineral rights as of Dec. 31, 2015, 2014 and 2013 was $0.0 million, $10.9 million and $12.1 million, respectively.

(4)	NMGI is included in the Other segment.

(5)	Certain prior year amounts have been reclassified to conform to current year presentation.

(6)	Amounts primarily relate to consolidated tax eliminations.

Tampa Electric Company [Member]

Segment Information

11. Segment Information

TEC is a public utility operating within the State of Florida. Through its Tampa Electric division, it is engaged in the generation, purchase, transmission, distribution and sale of electric energy to almost 719,000 customers in West Central Florida. Its PGS division is engaged in the purchase, distribution and marketing of natural gas for approximately 361,000 residential, commercial, industrial and electric power generation customers in the State of Florida.

	Tampa
(millions)	Electric		PGS		Eliminations			TEC
2015
Revenues - external	$	2,017.7	$	401.5	$	0.0		$	2,419.2
Sales to affiliates		0.6		6.0		(6.6	)		0.0
Total revenues		2,018.3		407.5		(6.6	)		2,419.2
Depreciation and amortization		256.7		56.8		0.0			313.5
Total interest charges		95.1		14.5		0.0			109.6
Provision for income taxes		143.6		21.9		0.0			165.5
Net income		241.0		35.3		0.0			276.3
Total assets		6,637.1		1,099.0		(9.4	)		7,726.7
Capital expenditures		592.6		94.0		0.0			686.6
2014
Revenues - external	$	2,020.5	$	398.5	$	0.0		$	2,419.0
Sales to affiliates		0.5		1.1		(1.6	)		0.0
Total revenues		2,021.0		399.6		(1.6	)		2,419.0
Depreciation and amortization		248.6		54.0		0.0			302.6
Total interest charges		92.8		13.8		0.0			106.6
Provision for income taxes		133.2		22.7		0.0			155.9
Net income		224.5		35.8		0.0			260.3
Total assets		6,234.4		1,047.0		(7.1	)		7,274.3
Capital expenditures		582.1		88.9		0.0			671.0
2013
Revenues - external	$	1,950.1	$	392.7	$	0.0		$	2,342.8
Sales to affiliates		0.4		0.8		(1.2	)		0.0
Total revenues		1,950.5		393.5		(1.2	)		2,342.8
Depreciation and amortization		238.8		51.5		0.0			290.3
Total interest charges		91.8		13.5		0.0			105.3
Provision for income taxes		116.9		21.9		0.0			138.8
Net income		190.9		34.7		0.0			225.6
Total assets		5,895.4		989.3		(8.9	)		6,875.8
Capital expenditures		422.3		79.0		0.0			501.3

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details