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Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Information

Note 2: Segment Information

The Company’s Chief Operating Decision Maker (CODM), consists of the Company’s Chairman and Chief Executive Officer, President and Chief Administrative Officer, Chief Financial Officer, and Chief Accounting Officer. These individuals assess financial performance and make decisions, including the allocation of resources to the various business segments, based on meeting with the managers of each segment and through their review of reports and analyses that are regularly provided to the CODM. Unitil reports two segments: utility electric operations and utility gas operations. 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 85 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.

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting – Improvements to Reportable Segment Disclosures (ASU 2023-07). The amendments in ASU 2023-07 are intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company does not expect this new guidance to have a material effect on the Company’s Consolidated Financial Statements.

The following tables provide significant segment financial data for the years ended December 31, 2023, 2022 and 2021 (millions):

 

Year Ended December 31, 2023

 

Electric

 

 

Gas

 

 

Other

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Billed and Unbilled Revenue

 

$

311.7

 

 

$

253.8

 

 

$

—

 

 

$

565.5

 

Rate Adjustment Mechanism Revenue

 

 

(5.2

)

 

 

(3.2

)

 

 

—

 

 

 

(8.4

)

Total Operating Revenues

 

 

306.5

 

 

 

250.6

 

 

 

—

 

 

 

557.1

 

Interest Income

 

 

2.6

 

 

 

2.4

 

 

 

1.2

 

 

 

6.2

 

Interest Expense

 

 

11.2

 

 

 

20.7

 

 

 

3.0

 

 

 

34.9

 

Depreciation & Amortization Expense

 

 

26.0

 

 

 

40.4

 

 

 

1.0

 

 

 

67.4

 

Income Tax Expense (Benefit)

 

 

4.0

 

 

 

9.4

 

 

 

(0.2

)

 

 

13.2

 

Segment Profit (Loss)

 

 

17.9

 

 

 

28.8

 

 

 

(1.5

)

 

 

45.2

 

Segment Assets

 

 

612.6

 

 

 

1,031.8

 

 

 

26.0

 

 

 

1,670.4

 

Capital Expenditures

 

 

44.2

 

 

 

92.7

 

 

 

4.1

 

 

 

141.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

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