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Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Information

Note 2: Segment Information

Unitil reports two segments: utility electric operations and utility gas operations. Unitil previously reported a non-regulated segment. Unitil divested its non-regulated business in the first quarter of 2019. Since 2019 information is no longer presented, the Company has restated prior periods to remove the non-regulated segment as that segment did not have any continuing significance in the periods presented. 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. Granite State is included in the utility gas operations segment.

Unitil Service, Unitil Resources, Unitil Realty and the holding company are included in Other. Unitil Service provides centralized management and administrative services, including information systems management and financial record keeping. Unitil Resources is the Company’s wholly-owned non-regulated subsidiary, which currently does not have any activity. 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 tables provide significant segment financial data for the years ended December 31, 2022, 2021 and 2020 (millions):

 

Year Ended December 31, 2022

 

Electric

 

 

Gas

 

 

Other

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Billed and Unbilled Revenue

 

$

290.2

 

 

$

263.3

 

 

$

—

 

 

$

553.5

 

Rate Adjustment Mechanism Revenue

 

 

7.7

 

 

 

2.0

 

 

 

—

 

 

 

9.7

 

Total Operating Revenues

 

 

297.9

 

 

 

265.3

 

 

 

—

 

 

 

563.2

 

Interest Income

 

 

0.9

 

 

 

1.0

 

 

 

0.9

 

 

 

2.8

 

Interest Expense

 

 

9.1

 

 

 

16.8

 

 

 

2.4

 

 

 

28.3

 

Depreciation & Amortization Expense

 

 

25.4

 

 

 

36.3

 

 

 

0.9

 

 

 

62.6

 

Income Tax Expense (Benefit)

 

 

3.1

 

 

 

8.2

 

 

 

(0.1

)

 

 

11.2

 

Segment Profit (Loss)

 

 

15.7

 

 

 

26.5

 

 

 

(0.8

)

 

 

41.4

 

Segment Assets

 

 

580.9

 

 

 

988.8

 

 

 

20.7

 

 

 

1,590.4

 

Capital Expenditures

 

 

33.8

 

 

 

87.6

 

 

 

0.7

 

 

 

122.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Billed and Unbilled Revenue

 

$

248.5

 

 

$

217.6

 

 

$

—

 

 

$

466.1

 

Rate Adjustment Mechanism Revenue

 

 

—

 

 

 

7.2

 

 

 

—

 

 

 

7.2

 

Total Operating Revenues

 

 

248.5

 

 

 

224.8

 

 

 

—

 

 

 

473.3

 

Interest Income

 

 

0.8

 

 

 

0.5

 

 

 

0.3

 

 

 

1.6

 

Interest Expense

 

 

9.0

 

 

 

15.3

 

 

 

2.9

 

 

 

27.2

 

Depreciation & Amortization Expense

 

 

25.9

 

 

 

32.6

 

 

 

1.0

 

 

 

59.5

 

Income Tax Expense (Benefit)

 

 

4.5

 

 

 

7.7

 

 

 

(0.7

)

 

 

11.5

 

Segment Profit (Loss)

 

 

14.0

 

 

 

23.2

 

 

 

(1.1

)

 

 

36.1

 

Segment Assets

 

 

584.0

 

 

 

935.9

 

 

 

20.4

 

 

 

1,540.3

 

Capital Expenditures

 

 

38.1

 

 

 

75.8

 

 

 

1.1

 

 

 

115.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Billed and Unbilled Revenue

 

$

226.7

 

 

$

185.2

 

 

$

—

 

 

$

411.9

 

Rate Adjustment Mechanism Revenue

 

 

0.5

 

 

 

6.2

 

 

 

—

 

 

 

6.7

 

Total Operating Revenues

 

 

227.2

 

 

 

191.4

 

 

 

—

 

 

 

418.6

 

Interest Income

 

 

1.1

 

 

 

1.1

 

 

 

0.4

 

 

 

2.6

 

Interest Expense

 

 

8.7

 

 

 

14.2

 

 

 

3.5

 

 

 

26.4

 

Depreciation & Amortization Expense

 

 

23.8

 

 

 

29.8

 

 

 

0.9

 

 

 

54.5

 

Income Tax Expense (Benefit)

 

 

4.7

 

 

 

7.3

 

 

 

(1.8

)

 

 

10.2

 

Segment Profit

 

 

12.9

 

 

 

19.3

 

 

 

—

 

 

 

32.2

 

Segment Assets

 

 

571.8

 

 

 

886.3

 

 

 

19.8

 

 

 

1,477.9

 

Capital Expenditures

 

 

45.5

 

 

 

71.1

 

 

 

6.0

 

 

 

122.6