XML 42 R12.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2024
Segment Reporting [Abstract] |
Segment Information | Segment Information Our business is comprised of three reportable segments, Electric, Manufacturing and Plastics, consistent with our business strategy, organizational structure and our internal reporting and review processes. Our chief operating decision maker (CODM) is our Chief Executive Officer. Segment net income is the sole measure of segment profit or loss used by our CODM in assessing segment performance and allocating resources to our segments. Our CODM uses segment net income in assessing financial performance on a monthly basis, reviewing and approving annual operating budgets and periodic forecasts, allocating capital or financial resources to our segments, making strategic decisions and measuring returns on equity in comparison to internal thresholds or peer entities. The operations of our three reportable segments are further described below. We have aggregated two operating segments within our Manufacturing reportable segment based on the similarity between these businesses and their economic characteristics. Electric includes the production, transmission, distribution and sale of electric energy in Minnesota, North Dakota and South Dakota by OTP. In addition, OTP is a participant in the MISO markets. OTP’s operations have been our primary business since 1907. Manufacturing consists of businesses in the following manufacturing activities: contract machining, metal parts stamping, fabrication and painting, and production of plastic thermoformed horticultural containers, life science and industrial packaging, and material handling components. These businesses have manufacturing facilities in Georgia, Illinois and Minnesota and sell products primarily in the United States. Plastics consists of businesses producing PVC pipe at plants in North Dakota and Arizona. The PVC pipe is sold primarily in the western half of the United States and Canada. Segment Profit or Loss Information about each segment, including significant expenses and net income of each segment, for the years ended December 31, 2024, 2023 and 2022 are as follows: Electric Segment
(in thousands) | 2024 |  | 2023 |  | 2022
Operating Revenue | $ | 524,515 |  |  | $ | 528,359 |  |  | $ | 549,699 |
Production Fuel and Purchased Power | 122,506 |  |  | 138,631 |  |  | 165,391 |
Operating and Maintenance Expenses | 190,422 |  |  | 191,263 |  |  | 181,378 |
Depreciation and Amortization | 82,136 |  |  | 75,330 |  |  | 72,050 |
Property Taxes | 15,662 |  |  | 16,614 |  |  | 17,742 |
Interest Expense | 38,216 |  |  | 33,864 |  |  | 31,950 |
Income Tax Expense (Benefit) | (1,544) |  |  | 1,648 |  |  | 5,065 |
Other Segment Items(1) | (13,846) |  |  | (13,415) |  |  | (3,851) |
Net Income | $ | 90,963 |  |  | $ | 84,424 |  |  | $ | 79,974 |
(1) Other segment items includes nonservice components of postretirement benefits, allowance for funds used during construction, and other expenses (income).
Manufacturing Segment
(in thousands) | 2024 |  | 2023 |  | 2022
Operating Revenue | $ | 342,592 |  |  | $ | 402,781 |  |  | $ | 397,983 |
Cost of Goods Sold | 283,390 |  |  | 324,245 |  |  | 327,228 |
Selling, General, and Administrative Expenses | 40,110 |  |  | 49,396 |  |  | 41,690 |
Interest Expense | 2,516 |  |  | 2,295 |  |  | 2,796 |
Income Tax Expense | 2,895 |  |  | 5,390 |  |  | 5,321 |
Other Segment Items | — |  |  | 1 |  |  | (2) |
Net Income | $ | 13,681 |  |  | $ | 21,454 |  |  | $ | 20,950 |
Plastics Segment
(in thousands) | 2024 |  | 2023 |  | 2022
Operating Revenue | $ | 463,441 |  |  | $ | 418,026 |  |  | $ | 512,527 |
Cost of Goods Sold | 166,628 |  |  | 143,521 |  |  | 227,571 |
Selling, General, and Administrative Expenses | 24,908 |  |  | 20,103 |  |  | 20,378 |
Interest Expense | 590 |  |  | 602 |  |  | 585 |
Income Tax Expense | 70,644 |  |  | 66,066 |  |  | 68,688 |
Other Segment Items | (76) |  |  | (14) |  |  | (69) |
Net Income | $ | 200,747 |  |  | $ | 187,748 |  |  | $ | 195,374 |
Capital Expenditures and Identifiable Assets The following provides capital expenditures for each reportable segment and our corporate cost center for the years ended December 31, 2024, 2023 and 2022:
(in thousands) | 2024 |  | 2023 |  | 2022
Capital Expenditures |  |  |  |  |
Electric | 301,454 |  |  | 240,695 |  |  | 147,869 |
Manufacturing | 32,159 |  |  | 23,284 |  |  | 17,954 |
Plastics | 24,749 |  |  | 23,029 |  |  | 5,245 |
Corporate | 288 |  |  | 126 |  |  | 66 |
Total | $ | 358,650 |  |  | $ | 287,134 |  |  | $ | 171,134 |
The following provides the identifiable assets by segment and corporate assets as of December 31, 2024 and 2023:
(in thousands) | 2024 |  | 2023
Identifiable Assets |  |  |
Electric | $ | 2,785,522 |  |  | $ | 2,533,831 |
Manufacturing | 254,445 |  |  | 251,343 |
Plastics | 186,043 |  |  | 164,179 |
Corporate | 426,072 |  |  | 293,215 |
Total | $ | 3,652,082 |  |  | $ | 3,242,568 |
Corporate assets consist primarily of cash and cash equivalents, prepaid expenses, investments and fixed assets. Reconciliation to Consolidated Amounts Certain costs are not allocated to our operating segments. Corporate operating costs include items such as corporate staff and overhead costs, the results of our captive insurance company and other items excluded from the measurement of operating segment performance. Corporate is not an operating segment, rather it is added to operating segment totals to reconcile to consolidated amounts. Included below is a reconciliation of certain segment information and our unallocated corporate costs to consolidated amounts for the years ended December 31, 2024, 2023 and 2022:
(in thousands) | 2024 |  | 2023 |  | 2022
Depreciation and Amortization |  |  |  |  |
Electric | $ | 82,136 |  |  | $ | 75,330 |  |  | $ | 72,050 |
Manufacturing | 20,393 |  |  | 18,495 |  |  | 16,202 |
Plastics | 4,494 |  |  | 4,027 |  |  | 4,205 |
Corporate | 98 |  |  | 102 |  |  | 140 |
Total | 107,121 |  |  | 97,954 |  |  | 92,597 |
Interest Expense |  |  |  |  |
Total Interest Expense of Reportable Segments | 41,322 |  |  | 36,761 |  |  | 35,331 |
Corporate Interest Expense | 493 |  |  | 916 |  |  | 685 |
Total | 41,815 |  |  | 37,677 |  |  | 36,016 |
Income Tax Expense (Benefit) |  |  |  |  |
Total Income Tax Expense of Reportable Segments | 71,995 |  |  | 73,104 |  |  | 79,074 |
Corporate Income Tax Benefit | (6,765) |  |  | (3,806) |  |  | (5,723) |
Total | 65,230 |  |  | 69,298 |  |  | 73,351 |
Net Income (Loss) |  |  |  |  |
Total Net Income of Reportable Segments | 305,391 |  |  | 293,626 |  |  | 296,298 |
Corporate Net Income (Loss) | (3,729) |  |  | 565 |  |  | (12,114) |
Total | 301,662 |  |  | 294,191 |  |  | 284,184 |
Concentrations Our Plastics segment businesses use PVC resin as a critical component within their PVC pipe manufacturing process. There are a limited number of PVC resin suppliers in the U.S., and in 2024 we sourced all of our PVC resin needs from four vendors. Although there are a limited number of PVC resin suppliers, we believe that other suppliers could provide PVC resin on comparable terms. Additionally, most U.S. resin production plants are located in the Gulf Coast region. These plants are subject to the risk of damage and production shutdowns because of exposure to hurricanes or other extreme weather events that occur in this region. The loss of a key vendor, or any interruption or delay in the supply of PVC resin could cause production delays, a possible loss of sales or result in increased costs to secure resin, all of which would adversely affect our operating results. For the year ended December 31, 2024, two customers combined accounted for 19% of Electric segment operating revenues, two customers combined to account for 36% of Manufacturing segment operating revenues and two customers combined to account for 52% of Plastics segment operating revenues, with one of those customers providing 11% of our consolidated operating revenues. Entity-Wide Information All of our long-lived assets are located within the United States and substantially all of our operating revenues are from customers located within the United States.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration