Dominion Power 2000 Annual Report Download - page 71

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Notes to Consolidated Financial Statements (concluded)
Under SFAS No. 131, Disclosures About Segments of an Enterprise
and Related Informations, Dominion has defined segments based
on product, geographic location and regulatory environment.
On March 3, 2000, Dominion announced a new business struc-
ture that integrates CNG’s businesses, streamlines operations, and
positions Dominion for long-term growth in the competitive market-
place. Under the structure, Dominion operates three principal busi-
ness units:
•Dominion Energy manages Dominion’s 19,000-megawatt
generation portfolio, consisting of generating units and power
purchase agreements. It also manages the Company’s genera-
tion growth strategy; energy trading, marketing, hedging and
arbitrage activities; and gas pipeline and storage operations.
•Dominion Delivery manages Dominion’s electric and gas distrib-
ution systems, as well as customer service and electric trans-
mission. The Company’s telecommunications business is also
included in the Dominion Delivery segment.
•Dominion Exploration & Production manages Dominion’s
onshore and offshore oil and gas exploration, development
and production operations. Operations are located on the outer
continental shelf and deep water areas of the Gulf of Mexico
and in selected regions in the lower 48 states and Canada.
In addition, Dominion also reviews the following as
business segments:
•the financial services businesses of DCI; and
•Corporate Operations.
The Corporate Operations category includes:
•corporate costs of Dominion’s and CNG’s holding companies;
•Corby Power (UK) operations, prior to its sale on September
29, 2000;
•intercompany eliminations;
•restructuring and acquisition related costs (see Note 6);
•cumulative effect of a change in the method of accounting for
pensions (see Note 3);
•impairment and re-valuation of DCI’s assets (see Note 6);
•the write-off of generation-related assets and liabilities at
Dominion in 1999 (see Note 7); and
•the impairment of regulatory assets and one-time base rate
refund resulting from the settlement of Virginia Power’s 1998
Virginia jurisdictional rate proceedings (see Note 7).
While Dominion manages its daily operations as described
above, assets remain wholly owned by its legal subsidiaries.
Selected Consolidated Financial Data
(millions, except per share amounts) 2000 1999 1998 1997 1996
Operating revenue and income $ 9,260 $ 5,520 $ 6,081 $ 7,263 $ 4,815
Income before extraordinary item and cumulative
effect of a change in accounting principle $ 415 $ 552 $ 548 $ 412 $ 482
Extraordinary item (net of income taxes of $197) $ (255)
Cumulative effect of change in accounting principle
(net of income taxes of $11) $21
Net income $ 436 $ 297 $ 548 $ 412 $ 482
Total assets $29,348 $17,782 $17,549 $20,184 $14,911
Long-term debt, preferred stock subject to
mandatory redemption and preferred
securities of a subsidiary trust(1) $10,486 $ 7,321 $ 6,817 $ 7,761 $ 5,362
Common stock data:
Earnings per share — basic $ 1.85 $ 1.55 $ 2.81 $ 2.22 $ 2.70
Dividends paid per share $ 2.58 $ 2.58 $ 2.58 $ 2.58 $ 2.58
Note:
(1) In 1999, preferred stock subject to mandatory redemption is included in Securities due within one year and is excluded from this amount.