Vectren 2008 Annual Report Download - page 103

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101
18. Segment Reporting
The Company segregates its operations into three groups: 1) Utility Group, 2) Nonutility Group, and 3) Corporate
and Other.
The Utility Group is comprised of Vectren Utility Holdings, Inc.’s operations, which consist of the Company’s
regulated operations and other operations that provide information technology and other support services to those
regulated operations. The Company segregates its regulated operations into a Gas Utility Services operating
segment and an Electric Utility Services operating segment. The Gas Utility Services segment provides natural gas
distribution and transportation services to nearly two-thirds of Indiana and to west central Ohio. The Electric
Utility Services segment provides electric distribution services primarily to southwestern Indiana, and includes the
Company’s power generating and wholesale power operations. The Company manages its regulated operations as
separated between Energy Delivery, which includes the gas and electric transmission and distribution functions,
and Power Supply, which includes the power generating and wholesale power operations. In total, regulated
operations supply natural gas and /or electricity to over one million customers.
The Nonutility Group is comprised of one operating segment that includes various subsidiaries and affiliates
investing in energy marketing and services, coal mining, and energy infrastructure services, among other energy-
related opportunities.
Corporate and Other includes unallocated corporate expenses such as advertising and charitable contributions,
among other activities, that benefit the Company’s other operating segments. Net income is the measure of
profitability used by management for all operations.
Information related to the Company’s business segments is summarized below:
(In millions) 2008 2007 2006
Revenues
Utility Group
Gas Utility Services 1,432.7$ 1,269.4$ 1,232.5$
Electric Utility Services 524.2 487.9 422.2
Other Operations 36.8 40.4 36.6
Eliminations (35.0) (38.7) (34.8)
Total Utility Group 1,958.7 1,759.0 1,656.5
Nonutility Group 664.7 643.4 503.2
Eliminations (138.7) (120.5) (118.1)
Consolidated Revenues 2,484.7$ 2,281.9$ 2,041.6$
Profitability Measures - Net Income
Gas Utility Services 53.3$ 41.7$ 41.5$
Electric Utility Services 50.7 52.6 41.6
Other Operations 7.1 12.2 8.3
Utility Group Net Income 111.1 106.5 91.4
Nonutility Group Net Income 18.9 37.0 18.1
Corporate & Other Net Loss (1.0) (0.4) (0.7)
Consolidated Net Income 129.0$ 143.1$ 108.8$
Year Ended December 31,