Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information

Note 8: Segment Information

Unitil reports four segments: utility electric operations, utility gas operations, other, and non-regulated. 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 86 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.

Unitil Resources is the Company’s wholly-owned non-regulated subsidiary. Usource, Inc. and Usource L.L.C. (collectively, Usource) are wholly-owned subsidiaries of Unitil Resources. Usource provides brokering and advisory services to a national client base of large commercial and industrial customers. Unitil Realty and Unitil Service provide centralized facilities, operations and administrative services to support the affiliated Unitil companies. Unitil Resources and Usource are included in the Non-Regulated column below.

Unitil Realty, Unitil Service and the holding company are included in the “Other” column of the table below. Unitil Service provides centralized management and administrative services, including information systems management and financial record keeping. 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 NHPUC, MDPU, and MPUC. Assets allocated to each segment are based upon specific identification of such assets provided by Company records.

The following table provides significant segment financial data for the years ended December 31, 2012, 2011 and 2010 (Millions):

Year Ended December 31, 2012	Electric		Gas			Other			Non- Regulated		Total
Revenues	$	187.0	$	160.6		$	—		$	5.5	$	353.1
Interest Income		2.4		0.8			0.4			0.1		3.7
Interest Expense		9.0		11.1			1.7			—		21.8
Depreciation & Amortization Expense		18.0		15.7			1.4			—		35.1
Income Tax Expense (Benefit)		4.8		5.8			(0.5	)		0.9		11.0
Segment Profit (Loss)		7.6		8.9			0.3			1.3		18.1
Segment Assets		403.7		471.6			5.6			5.7		886.6
Capital Expenditures		21.2		43.9			3.4			—		68.5
Year Ended December 31, 2011
Revenues	$	188.1	$	159.2		$	—		$	5.5	$	352.8
Interest Income		0.7		0.5			0.1			0.1		1.4
Interest Expense		9.4		10.7			1.7			—		21.8
Depreciation & Amortization Expense		14.2		13.6			1.5			—		29.3
Income Tax Expense (Benefit)		5.2		4.3			(0.6	)		1.1		10.0
Segment Profit (Loss)		7.8		6.7			0.1			1.7		16.3
Segment Assets		393.8		440.9			6.5			5.5		846.7
Capital Expenditures		20.3		33.6			3.2			—		57.1
Year Ended December 31, 2010
Revenues	$	203.7	$	150.1		$	—		$	4.6	$	358.4
Interest Income		3.2		0.5			0.2			0.1		4.0
Interest Expense		9.6		10.5			2.0			—		22.1
Depreciation & Amortization Expense		13.9		14.2			0.8			—		28.9
Income Tax Expense		3.7		(0.7	)		0.5			1.0		4.5
Segment Profit		8.0		1.4			(1.4	)		1.5		9.5
Segment Assets		388.2		401.1			5.7			5.4		800.4
Capital Expenditures		19.8		27.4			2.4			—		49.6