OPERATING SEGMENTS

Dominion and Virginia Power are organized primarily on the basis of products and services sold in the U.S. A description of the operations included in the Companies' primary operating segments is as follows:



Primary Operating Segment	Description of Operations	Dominion	Virginia Power
DVP	Regulated electric distribution	X	X
	Regulated electric transmission	X	X
Dominion Generation	Regulated electric fleet	X	X
	Merchant electric fleet	X
	Nonregulated retail energy marketing (electric and gas)⁽¹⁾	X
Dominion Energy	Gas transmission and storage	X
	Gas distribution and storage	X
	LNG services	X
	Producer services	X


(1)	As a result of Dominion's decision to realign its business units effective for 2013 year-end reporting, nonregulated retail energy marketing operations were moved from DVP to the Dominion Generation segment.

In addition to the operating segments above, the Companies also report a Corporate and Other segment.

The Corporate and Other Segment of Virginia Power primarily includes specific items attributable to its operating segments that are not included in profit measures evaluated by executive management in assessing the segments' performance or allocating resources among the segments.

The Corporate and Other Segment of Dominion includes its corporate, service company and other functions (including unallocated debt) and the net impact of operations that are discontinued, which are discussed in Note 3. In addition, Corporate and Other includes specific items attributable to Dominion's operating segments that are not included in profit measures evaluated by executive management in assessing the segments' performance or allocating resources among the segments.

In the second quarter of 2013, Dominion commenced a restructuring of its producer services business, which aggregates natural gas supply, engages in natural gas trading and marketing activities and natural gas supply management and provides price risk management services to Dominion affiliates. The restructuring resulted in the termination of natural gas trading and certain energy marketing activities. As a result, the earnings impact from natural gas trading and certain energy marketing activities has been included in the Corporate and Other Segment of Dominion.

DOMINION

In 2013, Dominion reported after-tax net expense of $452 million in the Corporate and Other segment, with $184 million of these net expenses attributable to specific items related to its operating segments.

The net expenses for specific items in 2013 primarily related to the impact of the following items:

•

A $135 million ($92 million after-tax) net loss from discontinued operations of Brayton Point and Kincaid, including debt extinguishment of $64 million ($38 million after-tax) related to the sale, impairment charges of $48 million ($28 million after-tax), a $17 million ($18 million after-tax) loss on the sale which includes a $16 million write-off of goodwill, and a $6 million ($8 million after-tax) loss from operations, attributable to Dominion Generation; and


•	A $182 million ($109 million after-tax) net loss, including a $55 million ($33 million after-tax) impairment charge related to certain natural gas infrastructure assets and a $127 million ($76 million after-tax) loss related to the producer services business discussed above, attributable to Dominion Energy; partially offset by


•	An $81 million ($49 million after-tax) net gain on investments held in nuclear decommissioning trust funds, attributable to Dominion Generation.

In 2012, Dominion reported after-tax net expense of $1.7 billion in the Corporate and Other segment, with $1.5 billion of these net expenses attributable to specific items related to its operating segments.

The net expenses for specific items in 2012 primarily related to the impact of the following items:


•	A $1.7 billion ($1.1 billion after-tax) net loss from discontinued operations, including impairment charges, of Brayton Point and Kincaid, which were sold in 2013, attributable to Dominion Generation;


•	A $467 million ($303 million after-tax) net loss, including impairment charges, primarily resulting from management's decision to cease operations and begin decommissioning Kewaunee in 2013, attributable to Dominion Generation;


•	An $87 million ($53 million after-tax) charge reflecting restoration costs associated with damage caused by severe storms, attributable to DVP; and


•	A $49 million ($22 million after-tax) loss from discontinued operations of State Line and Salem Harbor which were sold in 2012, attributable to Dominion Generation.

In 2011, Dominion reported after-tax net expense of $607 million for specific items in the Corporate and Other segment, with $364 million of these net expenses attributable to specific items related to its operating segments.

The net expenses for specific items in 2011 primarily related to the impact of the following items:


•	A $228 million ($139 million after-tax) charge reflecting plant balances that are not expected to be recovered in future periods due to the anticipated retirement of certain utility coal-fired generating units, attributable to Dominion Generation;


•	A $96 million ($59 million after-tax) charge reflecting restoration costs associated with damage caused by Hurricane Irene, primarily attributable to DVP;


•	A $66 million ($39 million after-tax) loss from the operations of Kewaunee, attributable to Dominion Generation;


•	A $57 million ($33 million after-tax) net loss from discontinued operations of Brayton Point and Kincaid, which were sold in 2013, attributable to Dominion Generation;


•	A $43 million ($26 million after-tax) charge related to the impairment of SO₂ emissions allowances not expected to be consumed due to CSAPR, attributable to Dominion Generation; and


•	A $34 million ($25 million after-tax) loss from discontinued operations of State Line and Salem Harbor which were sold in 2012, attributable to Dominion Generation.

The following table presents segment information pertaining to Dominion's operations:



Year Ended December 31,	DVP⁽¹⁾		Dominion Generation⁽¹⁾⁽²⁾			Dominion Energy		Corporate and Other⁽²⁾			Adjustments & Eliminations⁽¹⁾			Consolidated Total
(millions)
2013
Total revenue from external customers	$	1,825	$	8,445		$	1,783	$	3		$	1,064		$	13,120
Intersegment revenue	9		68			1,063		609			(1,749		)	—
Total operating revenue	1,834		8,513			2,846		612			(685		)	13,120
Depreciation, depletion and amortization	427		518			228		35			—			1,208
Equity in earnings of equity method investees	—		(14		)	21		7			—			14
Interest income	—		66			12		42			(66		)	54
Interest and related charges	175		220			26		522			(66		)	877
Income taxes	287		483			409		(287		)	—			892
Loss from discontinued operations, net of tax	—		—			—		(92		)	—			(92		)
Net income (loss) attributable to Dominion	475		1,031			643		(452		)	—			1,697
Investment in equity method investees	—		280			615		21			—			916
Capital expenditures	1,361		1,605			1,043		95			—			4,104
Total assets (billions)	11.9		22.0			12.1		8.5			(4.4		)	50.1
2012
Total revenue from external customers	$	1,846	$	8,170		$	1,813	$	155		$	851		$	12,835
Intersegment revenue	9		104			930		608			(1,651		)	—
Total operating revenue	1,855		8,274			2,743		763			(800		)	12,835
Depreciation, depletion and amortization	392		483			216		36			—			1,127
Equity in earnings of equity method investees	—		3			23		(1		)	—			25
Interest income	1		65			30		71			(106		)	61
Interest and related charges	187		177			47		511			(106		)	816
Income taxes	278		576			352		(395		)	—			811
Loss from discontinued operations, net of tax	—		—			—		(1,125		)	—			(1,125		)
Net income (loss) attributable to Dominion	439		1,021			551		(1,709		)	—			302
Investment in equity method investees	—		414			141		3			—			558
Capital expenditures	1,158		1,615			1,350		22			—			4,145
Total assets (billions)	11.5		21.8			11.2		12.6			(10.3		)	46.8
2011
Total revenue from external customers	$	1,791	$	8,759		$	2,044	$	56		$	1,115		$	13,765
Intersegment revenue	63		123			1,077		595			(1,858		)	—
Total operating revenue	1,854		8,882			3,121		651			(743		)	13,765
Depreciation, depletion and amortization	369		413			207		29			—			1,018
Equity in earnings of equity method investees	—		3			23		9			—			35
Interest income	10		65			27		71			(106		)	67
Interest and related charges	183		148			57		514			(106		)	796
Income taxes	264		655			323		(464		)	—			778
Loss from discontinued operations, net of tax	—		—			—		(58		)	—			(58		)
Net income (loss) attributable to Dominion	416		1,078			521		(607		)	—			1,408
Capital expenditures	1,091		1,593			907		61			—			3,652

(1) Amounts have been recast to reflect nonregulated retail energy marketing operations in the Dominion Generation segment.

(2) Segment information for 2012 and 2011 has been recast to reflect Brayton Point and Kincaid as discontinued operations, as discussed in Note 3.

At December 31, 2013, 2012, and 2011, none of Dominion's long-lived assets and no significant percentage of its operating revenues were associated with international operations.

VIRGINIA POWER

The majority of Virginia Power's revenue is provided through tariff rates. Generally, such revenue is allocated for management reporting based on an unbundled rate methodology among Virginia Power's DVP and Dominion Generation segments.

In 2013, Virginia Power reported after-tax net expenses of $47 million for specific items attributable to its operating segments in the Corporate and Other segment.

The net expenses for specific items in 2013 primarily related to the impact of the following:


•	A $40 million ($28 million after-tax) charge in connection with the 2013 Biennial Review Order, attributable to Dominion Generation.

In 2012, Virginia Power reported after-tax net expenses of $51 million for specific items attributable to its operating segments in the Corporate and Other segment.

The net expenses for specific items in 2012 primarily related to the impact of the following:


•	An $87 million ($53 million after-tax) charge reflecting restoration costs associated with damage caused severe storms, attributable to DVP.

In 2011, Virginia Power reported after-tax net expenses of $268 million for specific items attributable to its operating segments in the Corporate and Other segment.

The net expenses for specific items in 2011 primarily related to the impact of the following:


•	A $228 million ($139 million after-tax) charge reflecting plant balances that are not expected to be recovered in future periods due to the anticipated retirement of certain coal-fired generating units, attributable to Dominion Generation;


•	A $96 million ($59 million after-tax) charge reflecting restoration costs associated with damage caused by Hurricane Irene, primarily attributable to DVP; and


•	A $43 million ($26 million after-tax) charge related to the impairment of SO₂ emissions allowances not expected to be consumed due to CSAPR, attributable to Dominion Generation.

The following table presents segment information pertaining to Virginia Power's operations:



Year Ended December 31,	DVP		Dominion Generation		Corporate and Other			Adjustments & Eliminations			Consolidated Total
(millions)
2013
Operating revenue	$	1,826	$	5,475	$	(6	)	$	—		$	7,295
Depreciation and amortization	427		425		1			—			853
Interest income	—		6		—			—			6
Interest and related charges	175		192		2			—			369
Income taxes	286		399		(26		)	—			659
Net income (loss)	483		702		(47		)	—			1,138
Capital expenditures	1,360		1,173		—			—			2,533
Total assets (billions)	12.0		15.1		—			(0.1		)	27.0
2012
Operating revenue	$	1,847	$	5,379	$	—		$	—		$	7,226
Depreciation and amortization	392		390		—			—			782
Interest income	1		7		—			—			8
Interest and related charges	186		199		—			—			385
Income taxes	277		403		(27		)	—			653
Net income (loss)	448		653		(51		)	—			1,050
Capital expenditures	1,142		1,146		—			—			2,288
Total assets (billions)	11.4		14.8		—			(1.4		)	24.8
2011
Operating revenue	$	1,793	$	5,546	$	(93	)	$	—		$	7,246
Depreciation and amortization	368		350		—			—			718
Interest income	10		8		—			—			18
Interest and related charges	182		199		(50		)	—			331
Income taxes	265		447		(172		)	—			540
Net income (loss)	426		664		(268		)	—			822
Capital expenditures	1,081		1,009		—			—			2,090