Segment Information

12 Months Ended

Dec. 31, 2019

5. SEGMENT INFORMATION

Emera manages its reportable segments separately due in part to their different operating, regulatory and geographical environments. Segments are reported based on each subsidiary’s contribution of revenues, net income attributable to common shareholders and total assets, as reported to the Company’s chief operating decision maker.

Effective January 1, 2019, Emera revised its reportable segments to align with strategic priorities and internal governance. These new reporting segments align with how the Company assesses financial performance and makes decisions about resource allocations. All comparative segment financial information has been restated with no impact to reported consolidated results.

The five new reportable segments are:

Florida Electric Utility;

Canadian Electric Utilities;

Other Electric Utilities;

Gas Utilities and Infrastructure; and

Other

	Florida		Canadian		Other		Gas Utilities				Inter-
	Electric		Electric		Electric		and				Segment
millions of Canadian dollars	Utility		Utilities		Utilities		Infrastructure		Other		Eliminations		Total
For the year ended December 31, 2019
Operating revenues from external customers (1)	$	2,596	$	1,429	$	744	$	1,097	$	245	$	-	$	6,111
Inter-segment revenues (1)		11		1		-		22		37		(71)		-
Total operating revenues		2,607		1,430		744		1,119		282		(71)		6,111
AFUDC - debt and equity		20		6		5		2		-		-		33
Depreciation and amortization		445		231		107		109		11		-		903
Interest expense, net		154		142		52		59		331		-		738
Internally allocated interest (2)		-		-		-		14		(14)		-		-
Income from equity investments		-		91		5		22		36		-		154
Income tax expense (recovery)		79		(10)		11		48		(67)		-		61
Operating, maintenance and general ("OM&G")		554		313		195		319		130		(47)		1,464
GBPC impairment charge		-		-		34		-		-		-		34
Net income (loss) attributable to common shareholders		419		229		45		183		(213)		-		663
Capital expenditures		1,393		384		195		448		63		-		2,483
As at December 31, 2019
Total assets		16,214		6,717		3,069		5,489		1,459		(1,106)	⁽³⁾	31,842
Investments subject to significant influence		-		1,133		41		138		-		-		1,312
Goodwill		4,544		-		70		1,218		3		-		5,835
(1) All significant inter-company balances and inter-company transactions have been eliminated on consolidation except for certain transactions between non-regulated and regulated entities that have not been eliminated because management believes the elimination of these transactions would understate property, plant and equipment, OM&G expenses, or regulated fuel for generation and purchased power. Inter-company transactions that have not been eliminated are measured at the amount of consideration established and agreed to by the related parties. Eliminated transactions are included in determining reportable segments.
(2) Segment net income is reported on a basis that includes internally allocated financing costs.
(3) Primarily relates to consolidated deferred tax reclassifications. Deferred tax assets are reclassified and netted with deferred tax liabilities upon consolidation.

	Florida		Canadian		Other		Gas Utilities				Inter-
	Electric		Electric		Electric		and				Segment
millions of Canadian dollars	Utility		Utilities		Utilities		Infrastructure		Other		Eliminations		Total
For the year ended December 31, 2018
Operating revenues from external customers (1)	$	2,670	$	1,437	$	745	$	1,062	$	610	$	-	$	6,524
Inter-segment revenues (1)		9		3		-		36		51		(99)		-
Total operating revenues		2,679		1,440		745		1,098		661		(99)		6,524
AFUDC - debt and equity		20		6		3		1		-		-		30
Depreciation and amortization		405		219		114		129		49		-		916
Interest expense, net		132		139		48		55		339		-		713
Internally allocated interest (2)		-		-		-		14		(14)		-		-
Income from equity investments		-		87		6		22		39		-		154
Income tax expense (recovery)		85		8		9		47		(80)		-		69
OM&G		667		286		188		295		206		(62)		1,580
Net income (loss) attributable to common shareholders		381		218		85		135		(109)		-		710
Capital expenditures		1,217		345		187		330		72		-		2,151
As at December 31, 2018
Total assets		15,997		6,275		3,094		5,404		2,653		(1,109)	⁽³⁾	32,314
Investments subject to significant influence		-		1,079		77		155		5		-		1,316
Goodwill		4,774		-		260		1,279		-		-		6,313
(1) All significant inter-company balances and inter-company transactions have been eliminated on consolidation except for certain transactions between non-regulated and regulated entities that have not been eliminated because management believes the elimination of these transactions would understate property, plant and equipment, OM&G expenses, or regulated fuel for generation and purchased power. Inter-company transactions that have not been eliminated are measured at the amount of consideration established and agreed to by the related parties. Eliminated transactions are included in determining reportable segments.
(2) Segment net income is reported on a basis that includes internally allocated financing costs.
(3) Primarily relates to consolidated deferred tax reclassifications. Deferred tax assets are reclassified and netted with deferred tax liabilities upon consolidation.

Geographical Information

Revenues (1):

For the	Year ended December 31
millions of Canadian dollars		2019		2018
Canada	$	1,497	$	1,520
United States		4,140		4,537
Barbados		320		319
The Bahamas		112		121
Dominica		42		27
	$	6,111	$	6,524
(1) Revenues are based on country of origin of the product or service sold.

Property Plant and Equipment:

As at	December 31		December 31
millions of Canadian dollars	2019		2018
Canada	$	4,248	$	4,128
United States (1)		13,095		13,739
Barbados		462		446
The Bahamas		282		315
Dominica		80		84
	$	18,167	$	18,712
(1) Excludes Emera Maine balances classified as held for sale as at December 31, 2019. Refer to note 4 for further details.