XML 59 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
Reportable Business Segments
 12 Months Ended
Dec. 31, 2012
Reportable Business Segments [Abstract]  
Reportable Business Segments
Reportable Business Segments

Because CERC is an indirect wholly owned subsidiary of CenterPoint Energy, CERC’s determination of reportable business segments considers the strategic operating units under which CenterPoint Energy manages sales, allocates resources and assesses performance of various products and services to wholesale or retail customers in differing regulatory environments. The accounting policies of the business segments are the same as those described in the summary of significant accounting policies except that some executive benefit costs have not been allocated to business segments.  CERC uses operating income as the measure of profit or loss for its business segments.

CERC’s reportable business segments include the following: Natural Gas Distribution, Competitive Natural Gas Sales and Services, Interstate Pipelines, Field Services and Other Operations.  Natural Gas Distribution consists of intrastate natural gas sales to, and natural gas transportation and distribution for, residential, commercial, industrial and institutional customers. Competitive Natural Gas Sales and Services represents CenterPoint Energy’s non-rate regulated gas sales and services operations. The Interstate Pipelines business segment includes the interstate natural gas pipeline operations. The Field Services business segment includes the non-rate regulated natural gas gathering, processing and treating operations. The Other Operations business segment includes unallocated corporate costs and inter-segment eliminations.

Long-lived assets include net property, plant and equipment, net goodwill and other intangibles and equity investments in unconsolidated subsidiaries. Intersegment sales are eliminated in consolidation.

Financial data for business segments and products and services are as follows (in millions):

 
Revenues
from
External
Customers
 
Inter-segment
Revenues
 
Depreciation
and
Amortization
 
Operating
Income
(Loss)
 
Total Assets
 
Expenditures
for Long-
Lived Assets
As of and for the year ended December 31, 2010:
 
 
 
 
 
 
 
 
 
 
 
Natural Gas Distribution
$
3,199

 
$
14

 
$
166

 
$
231

 
$
4,575

 
$
202

Competitive Natural Gas Sales and Services
2,617

 
34

 
4

 
16

 
1,190

 
2

Interstate Pipelines (1)
464

 
137

 
52

 
270

 
3,672

 
102

Field Services (2)
289

 
49

 
25

 
151

 
1,803

 
668

Other
—

 
—

 
1

 
(1
)
 
659

 
—

Reconciling Eliminations
—

 
(234
)
 
—

 
—

 
(1,361
)
 
—

Consolidated
$
6,569

 
$
—

 
$
248

 
$
667

 
$
10,538

 
$
974

As of and for the year ended December 31, 2011:
 

 
 

 
 

 
 

 
 

 
 

Natural Gas Distribution
$
2,823

 
$
18

 
$
166

 
$
226

 
$
4,636

 
$
295

Competitive Natural Gas Sales and Services
2,488

 
23

 
5

 
6

 
1,089

 
5

Interstate Pipelines (1)
421

 
132

 
54

 
248

 
3,867

 
98

Field Services (2)
370

 
42

 
37

 
189

 
1,894

 
201

Other
—

 
—

 
—

 
(7
)
 
660

 
—

Reconciling Eliminations
—

 
(215
)
 
—

 
—

 
(1,459
)
 
—

Consolidated
$
6,102

 
$
—

 
$
262

 
$
662

 
$
10,687

 
$
599

As of and for the year ended December 31, 2012:
 

 
 

 
 

 
 

 
 

 
 

Natural Gas Distribution
$
2,320

 
$
22

 
$
173

 
$
226

 
$
4,775

 
$
359

Competitive Natural Gas Sales and Services
1,758

 
26

 
6

 
(250
)
 
839

 
6

Interstate Pipelines (1)
356

 
146

 
56

 
207

 
4,004

 
132

Field Services (2)
467

 
39

 
50

 
214

 
2,453

 
52

Other
—

 
—

 
—

 
(3
)
 
647

 
—

Reconciling Eliminations
—

 
(233
)
 
—

 
—

 
(1,528
)
 
—

Consolidated
$
4,901

 
$
—

 
$
285

 
$
394

 
$
11,190

 
$
549

________________
(1)
Interstate Pipelines recorded equity income of $19 million, $21 million and $26 million in the years ended December 31, 2010, 2011 and 2012, respectively, from its 50% interest in SESH, a jointly-owned pipeline. These amounts are included in Equity in earnings of unconsolidated affiliates under the Other Income (Expense) caption.  Interstate Pipelines’ investment in SESH was $413 million, $409 million and $404 million as of December 31, 2010, 2011 and 2012, respectively, and is included in Investment in unconsolidated affiliates.

(2)
Field Services recorded equity income of $10 million, $9 million and $5 million for the years ended December 31, 2010, 2011 and 2012, respectively, from its 50% interest in a jointly-owned gas processing plant. These amounts are included in Equity in earnings of unconsolidated affiliates under the Other Income (Expense) caption.  Field Services’ investment in the jointly-owned gas processing plant was $55 million and $63 million as of December 31, 2010 and 2011, respectively, and is included in Investment in unconsolidated affiliates. Beginning on August 1, 2012, financial results for Waskom are included in operating income due to the July 31, 2012 purchase of the 50% interest in Waskom that CERC did not already own.
 
Year Ended December 31,
Revenues by Products and Services:
2010
 
2011
 
2012
 
(in millions)
Retail gas sales
$
4,412

 
$
4,019

 
$
3,328

Wholesale gas sales
1,250

 
1,149

 
613

Gas transportation and processing
785

 
824

 
847

Energy products and services
122

 
110

 
113

Total
$
6,569

 
$
6,102

 
$
4,901