Business Segments

12 Months Ended

Oct. 31, 2013

Business Segments Disclosure [Abstract]

Segment Reporting Disclosure Text Block

14. Business Segments

We have two reportable business segments, regulated utility and non-utility activities. Our segments are identified based on products and services, regulatory environments and our current corporate organization and business decision-making activities. The regulated utility segment is the gas distribution business, where we include the operations of merchandising and its related service work and home warranty programs, with activities conducted by the parent company. Operations of our non-utility activities segment are comprised of our equity method investments in joint ventures that are held by our wholly owned subsidiaries.

Operations of the regulated utility segment are reflected in “Operating Income” in the Consolidated Statements of Comprehensive Income. Operations of the non-utility activities segment are included in the Consolidated Statements of Comprehensive Income in “Other Income (Expense)” in “Income from equity method investments” and “Non-operating income.”All of our operations are within the United States. No single customer accounts for more than 10% of our consolidated revenues.

We evaluate the performance of the regulated utility segment based on margin, O&M expenses and operating income. We evaluate the performance of the non-utility activities segment based on earnings from and our cash flows in the ventures.

Operations by segment for the years ended October 31, 2013, 2012 and 2011, and as of October 31, 2013,2012and 2011 are presented below.

	Regulated		Non-Utility
In thousands	Utility		Activities		Total
2013
Revenues from external customers	$	1,278,229	$	-	$	1,278,229
Margin		621,490		-		621,490
Operations and maintenance expenses		253,120		181		253,301
Depreciation		112,207		18		112,225
Income from equity method investments		-		26,056		26,056
Interest expense		24,938		-		24,938
Operating income (loss) before income taxes		221,528		(352)		221,176
Income before income taxes		194,659		25,704		220,363
Total assets		4,053,591		128,832		4,182,423
Equity method investments in non-utility activities		-		128,469		128,469
Construction expenditures		599,999		-		599,999

	Regulated		Non-Utility
In thousands	Utility		Activities		Total
2012
Revenues from external customers	$	1,122,780	$	-	$	1,122,780
Margin		575,446		-		575,446
Operations and maintenance expenses		242,599		102		242,701
Depreciation		103,192		18		103,210
Income from equity method investments		-		23,904		23,904
Interest expense		20,097		-		20,097
Operating income (loss) before income taxes		194,824		(264)		194,560
Income before income taxes		174,424		23,640		198,064
Total assets		3,475,640		88,247		3,563,887
Equity method investments in non-utility activities		-		87,867		87,867
Construction expenditures		529,576		-		529,576

	Regulated		Non-Utility
In thousands	Utility		Activities		Total
2011
Revenues from external customers	$	1,433,905	$	-	$	1,433,905
Margin		573,639		-		573,639
Operations and maintenance expenses		225,351		109		225,460
Depreciation		102,829		28		102,857
Income from equity method investments		-		24,027		24,027
Interest expense		43,992		-		43,992
Operating income (loss) before income taxes		207,079		(120)		206,959
Income before income taxes		161,925		23,929		185,854
Total assets		2,968,574		85,519		3,054,093
Equity method investments in non-utility activities		-		85,121		85,121
Construction expenditures		243,641		-		243,641

Reconciliations to the consolidated financial statements for the years ended October 31, 2013, 2012 and 2011, and as of October 31, 2013 and 2012 are as follows.

In thousands	2013		2012		2011
Operating Income:
Segment operating income before income taxes	$	221,176	$	194,560	$	206,959
Utility income taxes		(77,334)		(69,101)		(64,068)
Non-utility activities operating loss before income taxes		352		264		120
Total	$	144,194	$	125,723	$	143,011

Net Income:
Income before income taxes for reportable segments	$	220,363	$	198,064	$	185,854
Income taxes		(85,946)		(78,217)		(72,286)
Total	$	134,417	$	119,847	$	113,568

In thousands	2013		2012
Consolidated Assets:
Total assets for reportable segments	$	4,182,423	$	3,563,887
Eliminations/Adjustments		186,186		206,052
Total	$	4,368,609	$	3,769,939