Segment Reporting |
Segment information and Corporate activities included in the accompanying Condensed Consolidated Statements of Income were as follows (in thousands): | | | | | | | | | | | | | | Three Months Ended September 30, 2017 | | External Operating Revenue | | Inter-company Operating Revenue | | Net Income (Loss) Available for Common Stock | Segment: | | | | | | | Electric | | $ | 181,238 |
| | $ | 2,333 |
| | $ | 27,324 |
| Gas | | 142,821 |
| | 73 |
| | (4,329 | ) | Power Generation (b) | | 1,810 |
| | 21,117 |
| | 6,155 |
| Mining | | 9,742 |
| | 7,751 |
| | 3,477 |
| Oil and Gas | | 6,527 |
| | — |
| | (2,712 | ) | Corporate activities (c) | | — |
| | — |
| | (2,252 | ) | Inter-company eliminations | | — |
| | (31,274 | ) | | — |
| Total | | $ | 342,138 |
| | $ | — |
| | $ | 27,663 |
|
| | | | | | | | | | | | | | Three Months Ended September 30, 2016 | | External Operating Revenue | | Inter-company Operating Revenue | | Net Income (Loss) Available for Common Stock | Segment: | | | | | | | Electric. | | $ | 171,754 |
| | $ | 2,747 |
| | $ | 24,181 |
| Gas | | 141,445 |
| | — |
| | (2,939 | ) | Power Generation (b) | | 1,906 |
| | 21,431 |
| | 5,642 |
| Mining | | 9,042 |
| | 7,778 |
| | 3,307 |
| Oil and Gas (e) | | 9,639 |
| | — |
| | (8,828 | ) | Corporate activities (c) | | — |
| | — |
| | (7,232 | ) | Inter-company eliminations | | — |
| | (31,956 | ) | | — |
| Total | | $ | 333,786 |
| | $ | — |
| | $ | 14,131 |
|
| | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2017 | | External Operating Revenue | | Inter-company Operating Revenue | | Net Income (Loss) Available for Common Stock | Segment: | | | | | | | Electric | | $ | 518,925 |
| | $ | 9,123 |
| | $ | 68,386 |
| Gas (a) | | 674,161 |
| | 90 |
| | 41,409 |
| Power Generation (b) | | 5,382 |
| | 62,907 |
| | 18,017 |
| Mining | | 26,500 |
| | 22,485 |
| | 9,048 |
| Oil and Gas | | 19,151 |
| | — |
| | (7,609 | ) | Corporate activities (c)(d) | | — |
| | — |
| | (2,870 | ) | Inter-company eliminations | | — |
| | (94,605 | ) | | — |
| Total | | $ | 1,244,119 |
| | $ | — |
| | $ | 126,381 |
|
| | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2016 | | External Operating Revenue | | Inter-company Operating Revenue | | Net Income (Loss) Available for Common Stock | Segment: | | | | | | | Electric | | $ | 493,845 |
| | $ | 9,413 |
| | $ | 62,625 |
| Gas (a) | | 563,879 |
| | — |
| | 29,975 |
| Power Generation (b) | | 5,304 |
| | 63,055 |
| | 19,907 |
| Mining | | 20,498 |
| | 23,651 |
| | 6,969 |
| Oil and Gas (e) | | 25,660 |
| | — |
| | (35,277 | ) | Corporate activities (c)(d) | | — |
| | — |
| | (29,397 | ) | Inter-company eliminations | | — |
| | (96,119 | ) | | — |
| Total | | $ | 1,109,186 |
| | $ | — |
| | $ | 54,802 |
|
___________ | | (a) | Gas Utility revenue increased for the nine months ended September 30, 2017 compared to the same period in the prior year primarily due to the addition of the SourceGas utilities on February 12, 2016. |
| | (b) | Net income (loss) available for common stock for the three and nine months ended September 30, 2017 and September 30, 2016 was net of net income attributable to noncontrolling interests of $3.9 million and $11 million, and $3.8 million and $6.4 million, respectively. |
| | (c) | Net income (loss) available for common stock for the three and nine months ended September 30, 2017 and September 30, 2016 included incremental, non-recurring acquisition costs, net of tax of $0.2 million and $1.5 million, and $4.0 million and $24 million respectively. The nine months ended September 30, 2017 and the three and nine months ended September 30, 2016 included $0.4 million, $1.7 million and $7.4 million, respectively, of after-tax internal labor costs attributable to the acquisition. |
| | (d) | Net income (loss) available for common stock for the nine months ended September 30, 2017 included a $1.4 million tax benefit recognized from carryback claims for specified liability losses involving prior tax years. Net income (loss) available for common stock for the nine months ended September 30, 2016 included tax benefits of approximately $4.4 million as a result of the re-measurement of the liability for uncertain tax positions predicated on an agreement reached with IRS Appeals in early 2016. See Note 18. |
| | (e) | Net income (loss) available for common stock for the three and nine months ended September 30, 2016 included non-cash after-tax impairments of oil and gas properties of $7.9 million and $33 million, respectively. See Note 17 to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q. |
|
Reconciliation of Assets from Segment to Consolidated |
Segment information and Corporate balances included in the accompanying Condensed Consolidated Balance Sheets were as follows (in thousands): | | | | | | | | | | | | | Total Assets (net of inter-company eliminations) as of: | September 30, 2017 | | December 31, 2016 | | September 30, 2016 | Segment: | | | | | | Electric (a) | $ | 2,911,919 |
| | $ | 2,859,559 |
| | $ | 2,814,408 |
| Gas | 3,288,104 |
| | 3,307,967 |
| | 3,170,571 |
| Power Generation (a) | 64,357 |
| | 73,445 |
| | 77,570 |
| Mining | 66,700 |
| | 67,347 |
| | 66,804 |
| Oil and Gas (b) | 105,963 |
| | 96,435 |
| | 158,981 |
| Corporate activities | 114,134 |
| | 110,691 |
| | 132,652 |
| Total assets | $ | 6,551,177 |
| | $ | 6,515,444 |
| | $ | 6,420,986 |
|
__________ | | (a) | The PPA under which Black Hills Colorado IPP provides generation to support Colorado Electric customers from the Pueblo Airport Generation Station is accounted for as a capital lease. As such, assets owned by our Power Generation segment are recorded at Colorado Electric under accounting for a capital lease. |
| | (b) | As a result of continued low commodity prices and our decision to divest non-core oil and gas assets, we recorded non-cash impairments of $107 million for the year ended December 31, 2016 and $52 million for the nine months ended September 30, 2016. See Note 17 to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q. |
|