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Segment Information
 3 Months Ended
Mar. 31, 2012
Segment Information [Abstract]  
SEGMENT INFORMATION
6. Segment Information

We use the management approach to identify operating segments. We organize our business around differences in regulatory environment and/or products or services, and the operating results of each segment are regularly reviewed by the chief operating decision maker (our Chief Executive Officer) in order to make decisions about resources and to assess performance. The segments are evaluated based on their pre-tax operating income. Our operations comprise three operating segments:

 

  •  

Regulated Energy. The regulated energy segment includes natural gas distribution, electric distribution and natural gas transmission operations. All operations in this segment are regulated, as to their rates and services, by the PSC having jurisdiction in each operating territory or by the FERC in the case of Eastern Shore.

 

  •  

Unregulated Energy. The unregulated energy segment includes natural gas marketing, propane distribution and propane wholesale marketing operations, which are unregulated as to their rates and charges for their services.

 

  •  

Other. The “other” segment consists primarily of the advanced information services operation, unregulated subsidiaries that own real estate leased to Chesapeake and certain corporate costs not allocated to other operations.

The following table presents information about our reportable segments.

 

                 

For the Three Months Ended March 31,

   2012     2011  
(in thousands)            

Operating Revenues, Unaffiliated Customers

                

Regulated Energy

   $ 72,018     $ 84,683  

Unregulated Energy

     44,887       58,750  

Other

     4,009       3,164  
   

 

 

    

 

 

  

Total operating revenues, unaffiliated customers

   $ 120,914     $ 146,597  
   

 

 

    

 

 

  

Intersegment Revenues (1)

                

Regulated Energy

   $ 278     $ 187  

Unregulated Energy

     —         —    

Other

     235       194  
   

 

 

    

 

 

  

Total intersegment revenues

   $ 513     $ 381  
   

 

 

    

 

 

  

Operating Income

                

Regulated Energy

   $ 14,798     $ 16,233  

Unregulated Energy

     5,154       8,591  

Other and eliminations

     121       15  
   

 

 

    

 

 

  

Total operating income

     20,073       24,839  
     

Other income, net of other expenses

     196       22  

Interest

     2,291       2,150  

Income taxes

     7,251       8,964  
   

 

 

    

 

 

  

Net income

   $ 10,727     $ 13,747  
   

 

 

    

 

 

  

 

(1)

All significant intersegment revenues are billed at market rates and have been eliminated from consolidated operating revenues.

 

                 
    March 31,     December 31,  
    2012     2011  
(in thousands)            

Identifiable Assets

                

Regulated energy

   $ 562,945     $ 565,563  

Unregulated energy

     95,012       107,916  

Other

     35,170       35,587  
   

 

 

    

 

 

  

Total identifiable assets

   $ 693,127     $ 709,066  
   

 

 

    

 

 

  

Our operations are almost entirely domestic. Our advanced information services subsidiary, BravePoint, has infrequent transactions in foreign countries, primarily Canada, which are denominated and paid in U.S. dollars. These transactions are immaterial to the consolidated revenues.