XML 59 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Information
 6 Months Ended
Jun. 30, 2012
Segment Information [Abstract]  
Segment Information
7. 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.

 

                                 
    Three Months Ended     Six Months Ended  

For the Periods Ended June 30,

   2012     2011     2012     2011  
(in thousands)                        

Operating Revenues, Unaffiliated Customers

                                

Regulated Energy

   $ 54,330     $ 54,011     $ 126,348     $ 138,695  

Unregulated Energy\

     25,176       29,692       70,063       88,442  

Other

     4,391       3,128       8,400       6,292  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total operating revenues, unaffiliated customers

   $ 83,897     $ 86,831     $ 204,811     $ 233,429  
   

 

 

    

 

 

    

 

 

    

 

 

  

Intersegment Revenues (1)

                                

Regulated Energy

   $ 1,223     $ 182     $ 1,501     $ 368  

Unregulated Energy

     —         —         —         —    

Other

     221       195       456       389  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total intersegment revenues

   $ 1,444     $ 377     $ 1,957     $ 757  
   

 

 

    

 

 

    

 

 

    

 

 

  

Operating Income

                                

Regulated Energy

   $ 10,505     $ 7,787     $ 25,303     $ 24,020  

Unregulated Energy

     (401 )      80       4,753       8,669  

Other and eliminations

     351       (91 )      472       (74 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Total operating income

     10,455       7,776       30,528       32,615  
         

Other income, net of other expenses

     153       27       349       50  

Interest

     2,241       2,114       4,532       4,265  
   

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

     8,367       5,689       26,345       28,400  
         

Income taxes

     3,307       2,169       10,558       11,133  
   

 

 

    

 

 

    

 

 

    

 

 

  

Net income

   $ 5,060     $ 3,520     $ 15,787     $ 17,267  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(1)

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

 

                 
    June 30,
2012		     December 31,
2011		  
(in thousands)            

Identifiable Assets

                

Regulated energy

   $ 572,073     $ 565,563  

Unregulated energy

     70,166       107,916  

Other

     37,461       35,587  
   

 

 

    

 

 

  

Total identifiable assets

   $ 679,700     $ 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.