Segment and Related Information (Tables)

12 Months Ended

Dec. 31, 2012

Reconciling Adjustments of Income Statement Items in Consolidation

We disclose selected financial data for our reportable segments in the following tables:


	Reportable Segments
	TEP			UNS Gas			UNS Electric			Other		Reconciling Adjustments			UNS Energy
	-Millions of Dollars-
2012
Income Statement
Operating Revenues-External	$	1,145		$	129		$	189		$	—	$	(1	)	$	1,462
Operating Revenues- Intersegment		17			4			1			18		(40	)		—
Depreciation and Amortization		150			9			18			—		—			177
Interest Income		—			—			—			1		—			1
Interest Expense		88			6			8			3		—			105
Income Tax Expense		39			6			11			—		—			56
Net Income		65			9			17			—		—			91

Cash Flow Statement
Capital Expenditures		(253	)		(16	)		(38	)		—		—			(307	)

Balance Sheet
Total Assets		3,461			310			370			1,121		(1,122	)		4,140


	Reportable Segments
	TEP			UNS Gas			UNS Electric			Other			Reconciling Adjustments			UNS Energy
	-Millions of Dollars-
2011
Income Statement
Operating Revenues-External ⁽¹⁾	$	1,141		$	149		$	188		$	—		$	1		$	1,479
Operating Revenues-Intersegment		15			2			2			23			(42	)		—
Depreciation and Amortization		140			8			17			1			(1	)		165
Interest Income		4			—			—			1			—			5
Interest Expense		89			7			7			9			—			112
Income Tax Expense (Benefit)		52			7			11			(1	)		(2	)		67
Net Income		85			10			18			—			(3	)		110

Cash Flow Statement
Capital Expenditures		(352	)		(13	)		(96	)		(34	)		121			(374	)

Balance Sheet
Total Assets		3,278			320			370			1,172			(1,151	)		3,989

2010
Income Statement
Operating Revenue-External ⁽¹⁾	$	1,096		$	144		$	185		$	—		$	1		$	1,426
Operating Revenue-Intersegment		29			6			2			28			(65	)		—
Depreciation and Amortization		132			8			16			2			(2	)		156
Interest Income		7			—			—			1			—			8
Interest Expense		88			7			7			9			—			111
Net Loss from Equity Method Investments		—			—			—			(6	)		—			(6	)
Income Tax Expense		60			6			10			4			(3	)		77
Net Income (Loss)		108			9			15			(14	)		(5	)		113

Cash Flow Statement
Capital Expenditures		(277	)		(12	)		(24	)		(18	)		—			(331	)

⁽¹⁾	The amounts previously reported have been revised.

Reconciling Adjustments of Intersegment Revenues in Consolidation

Reconciling adjustments consist of the elimination of intersegment revenue resulting from the following transactions, which are eliminated in consolidation:


	Reportable Segments
	TEP		UNS Gas		UNS Electric		Other
	-Millions of Dollars-
Intersegment Revenue
2012:
Wholesale Sales—TEP to UNS Electric ⁽¹⁾	$	2	$	—	$	—	$	—
Wholesale Sales—UNS Electric to TEP ⁽¹⁾		—		—		1		—
Wholesale Sales—UNS Gas to TEP ⁽²⁾		—		1		—		—
Gas Revenue—UNS Gas to UNS Electric		—		3		—		—
Other Revenue—TEP to Affiliates⁽³⁾		12		—		—		—
Other Revenue—Millennium to TEP, UNS Electric, & UNS Gas ⁽⁴⁾		—		—		—		18
Other Revenue—TEP to UNS Electric ⁽⁵⁾		3		—		—		—

Total Intersegment Revenue	$	17	$	4	$	1	$	18

2011:
Wholesale Sales—TEP to UNS Electric ⁽¹⁾	$	2	$	—	$	—	$	—
Wholesale Sales—UNS Electric to TEP ⁽¹⁾		—		—		2		—
Wholesale Sales—UED to UNS Electric		—		—		—		5
Gas Revenue—UNS Gas to UNS Electric		—		2		—		—
Other Revenue—TEP to Affiliates⁽³⁾		10		—		—		—
Other Revenue—Millennium to TEP, UNS Electric, & UNS Gas ⁽⁴⁾		—		—		—		18
Other Revenue—TEP to UNS Electric ⁽⁵⁾		3		—		—		—

Total Intersegment Revenue	$	15	$	2	$	2	$	23

2010:
Wholesale Sales—TEP to UNS Electric ⁽¹⁾	$	18	$	—	$	—	$	—
Wholesale Sales—UNS Electric to TEP ⁽¹⁾		—		—		2		—
Wholesale Sales—UED to UNS Electric		—		—		—		11
Wholesale Sales—UNS Gas to TEP⁽²⁾		—		1		—		—
Gas Revenue—UNS Gas to UNS Electric		—		5		—		—
Other Revenue—TEP to Affiliates⁽³⁾		8		—		—		—
Other Revenue—Millennium to TEP, UNS Electric, & UNS Gas ⁽⁴⁾		—		—		—		17
Other Revenue—TEP to UNS Electric⁽⁵⁾		3		—		—		—

Total Intersegment Revenue	$	29	$	6	$	2	$	28

⁽¹⁾	TEP and UNS Electric sell power to each other at third-party market prices.

⁽²⁾	UNS Gas provides gas to TEP for generation of power at third-party market prices.

⁽³⁾	Common costs (systems, facilities, etc.) are allocated on a cost-causative basis and recorded as revenue by TEP. Management believes this method of allocation is reasonable.

⁽⁴⁾

Millennium provides a supplemental workforce and meter-reading services to TEP, UNS Gas, and UNS Electric. Amounts are based on costs of services performed and management believes that the charges for services are reasonable. Millennium charged TEP $17 million in 2012 and 2011, and $16 million in 2010 for these services.

⁽⁵⁾	TEP charged UNS Electric for control area services based on a FERC-approved tariff.