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Segment Information
 12 Months Ended
Dec. 31, 2014
Segment Information

Note 3: Segment Information

 

Unitil reports three segments: utility gas operations, utility electric operations and non-regulated. Unitil’s principal business is the local distribution of electricity in the southeastern seacoast and state capital regions of New Hampshire and the greater Fitchburg area of north central Massachusetts and the local distribution of natural gas in southeastern New Hampshire, portions of southern Maine to the Lewiston-Auburn area and in the greater Fitchburg area of north central Massachusetts. Unitil has three distribution utility subsidiaries, Unitil Energy, which operates in New Hampshire, Fitchburg, which operates in Massachusetts and Northern Utilities, which operates in New Hampshire and Maine.

 

Granite State is an interstate natural gas transmission pipeline company, operating 86 miles of underground gas transmission pipeline primarily located in Maine and New Hampshire. Granite State provides Northern Utilities with interconnection to three major natural gas pipelines and access to domestic natural gas supplies in the south and Canadian natural gas supplies in the north. Granite State derives its revenues principally from the transmission services provided to Northern Utilities and, to a lesser extent, third-party marketers.

 

Unitil Resources is the Company’s wholly-owned non-regulated subsidiary. Usource, Inc. and Usource L.L.C. (collectively, Usource) are wholly-owned subsidiaries of Unitil Resources. Usource provides brokering and advisory services to a national client base of large commercial and industrial customers. Unitil Realty and Unitil Service provide centralized facilities, operations and administrative services to support the affiliated Unitil companies. Unitil Resources and Usource are included in the Non-Regulated column below.

 

Unitil Realty, Unitil Service and the holding company are included in the “Other” column of the table below. Unitil Service provides centralized management and administrative services, including information systems management and financial record keeping. Unitil Realty owns certain real estate, principally the Company’s corporate headquarters. The earnings of the holding company are principally derived from income earned on short-term investments and real property owned for Unitil and its subsidiaries’ use.

 

The segments follow the same accounting policies as described in the Summary of Significant Accounting Policies. Intersegment sales take place at cost and the effects of all intersegment and/or intercompany transactions are eliminated in the consolidated financial statements. Segment profit or loss is based on profit or loss from operations after income taxes and preferred stock dividends. Expenses used to determine operating income before taxes are charged directly to each segment or are allocated based on cost allocation factors included in rate applications approved by the FERC, NHPUC, MDPU, and MPUC. Assets allocated to each segment are based upon specific identification of such assets provided by Company records.

 

The following table provides significant segment financial data for the years ended December 31, 2014, 2013 and 2012 (millions):

 

Year Ended December 31, 2014

    Gas      Electric      Non-
Regulated		      Other     Total  

Revenues

    $ 201.4       $ 218.7       $ 5.7       $ —      $ 425.8   

Interest Income

      0.3         0.6         0.1         0.3        1.3   

Interest Expense

      11.5         9.1         —         1.6        22.2   

Depreciation & Amortization Expense

      18.8         22.3         —         1.0        42.1   

Income Tax Expense (Benefit)

      10.8         4.5         0.6         (1.9 )      14.0   

Segment Profit

      15.8         6.8         0.9         1.2        24.7   

Segment Assets

      566.3         414.1         6.3         13.5        1,000.2   

Capital Expenditures

      62.3         24.8         0.3         5.2        92.6   

Year Ended December 31, 2013

                                  

Revenues

    $ 170.4       $ 190.7       $ 5.8       $ —      $ 366.9   

Interest Income

      0.5         2.2         0.1         0.4        3.2   

Interest Expense

      11.0         9.5         —         1.5        22.0   

Depreciation & Amortization Expense

      17.2         20.3         —         1.0        38.5   

Income Tax Expense (Benefit)

      7.5         5.1         0.8         (0.7 )      12.7   

Segment Profit

      12.5         7.6         1.2         0.3        21.6   

Segment Assets

      502.3         402.8         6.2         9.3        920.6   

Capital Expenditures

      61.1         23.6         —         4.8        89.5   

Year Ended December 31, 2012

                                  

Revenues

    $ 160.6       $ 187.0       $ 5.5       $ —      $ 353.1   

Interest Income

      0.8         2.9         0.1         0.4        4.2   

Interest Expense

      11.1         9.5         —         1.7        22.3   

Depreciation & Amortization Expense

      15.7         18.9         —         1.4        36.0   

Income Tax Expense (Benefit)

      5.8         4.8         0.9         (0.5 )      11.0   

Segment Profit

      8.9         7.6         1.3         0.3        18.1   

Segment Assets

      471.7         409.3         5.7         5.6        892.3   

Capital Expenditures

      43.9         21.2         —         3.4        68.5