Vectren 2013 Annual Report Download - page 115
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113
Under current regulatory treatment, call premiums on reacquisition of long-term debt are generally recovered in customer rates
over the life of the refunding issue or over a 15-year period. Accordingly, any reacquisition would not be expected to have a
material effect on the Company's results of operations.
Because of the nature of certain other investments and lack of a readily available market, it is not practical to estimate the fair
value of these financial instruments at specific dates without considerable effort and cost. At December 31, 2013 and 2012, the
fair value for these financial instruments was not estimated. The carrying value of these investments was approximately $10.4
million and $2.1 million at December 31, 2013 and 2012, respectively.
21. 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 between 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. Regulated operations supply natural gas and/or electricity to over one million customers. In total, the Utility
Group is comprised of three operating segments: Gas Utility Services, Electric Utility Services, and Other operations.
The Nonutility Group is comprised of five operating segments: Infrastructure Services, Energy Services, Coal Mining, Energy
Marketing,and Other Businesses. Results in the Energy Marketing segment include the results of the Company's investment in
ProLiance through June 18, 2013 when it exited the natural gas marketing business (see Note 7 for more details of this
transaction). The acquisition of Minnesota Limited was completed on March 31, 2011 (See Note 5) and is included in the
Infrastructure Services operating segment. The sale of Vectren Source was completed on December 31, 2011 (See Note 6) and
the results of Vectren Source's operations are included in the Energy Marketing operating segment in 2011.
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 as follows: