Xcel Energy 2005 Annual Report Download - page 83

17. SEGMENTS AND RELATED INFORMATION
Xcel Energy has the following reportable segments: Regulated Electric Utility, Regulated Natural Gas Utility and All Other.
– Xcel Energy’s Regulated Electric Utility segment generates, transmits and distributes electricity in Minnesota, Wisconsin, Michigan,
North Dakota, South Dakota, Colorado, Texas, New Mexico, Kansas and Oklahoma. In addition, this segment includes sales for resale
and provides wholesale transmission service to various entities in the United States. Regulated Electric Utility also includes commodity
trading operations.
– Xcel Energy’s Regulated Natural Gas Utility segment transports, stores and distributes natural gas primarily in portions of Minnesota,
Wisconsin, North Dakota, Michigan and Colorado.
Revenues from operating segments not included above are below the necessary quantitative thresholds and are therefore included in the All
Other category. Those primarily include steam revenue, appliance repair services, nonutility real estate activities, revenues associated with
processing solid waste into refuse-derived fuel and investments in rental housing projects that qualify for low-income housing tax credits.
To report income from continuing operations for Regulated Electric and Regulated Natural Gas Utility segments, Xcel Energy must assign or
allocate all costs and certain other income. In general, costs are:
– directly assigned wherever applicable;
– allocated based on cost causation allocators wherever applicable; and
– allocated based on a general allocator for all other costs not assigned by the above two methods.
The accounting policies of the segments are the same as those described in Note 1 to the Consolidated Financial Statements. These segments
are managed separately because the revenue streams are dependent upon regulated rate recovery, which are separately determined for each
segment. Xcel Energy evaluates performance by each legal entity based on profit or loss generated from the product or service provided.
Regulated
Regulated Natural Reconciling Consolidated
(Thousands of dollars) Electric Utility Gas Utility All Other Eliminations Total
2005
Operating revenues from external customers $7,243,637 $2,307,385 $ 74,455 $ – $9,625,477
Intersegment revenues 767 17,732 – (18,499) –
Total revenues $7,244,404 $2,325,117 $ 74,455 $(18,499) $9,625,477
Depreciation and amortization $ 662,236 $ 89,174 $ 15,911 $ – $ 767,321
Financing costs, mainly interest expense 301,185 47,145 108,538 (14,242) 442,626
Income tax expense (benefit) 258,161 32,923 (117,545) – 173,539
Income (loss) from continuing operations $ 440,578 $ 71,213 $ 35,733 $(48,486) $ 499,038
2004
Operating revenues from external customers $6,225,245 $1,915,514 $ 74,802 $ – $8,215,561
Intersegment revenues 1,132 8,735 – (9,867) –
Total revenues $6,226,377 $1,924,249 $ 74,802 $ (9,867) $8,215,561
Depreciation and amortization $ 610,127 $ 82,012 $ 13,816 $ – $ 705,955
Financing costs, mainly interest expense 299,768 48,757 100,784 (14,829) 434,480
Income tax expense (benefit) 235,743 29,286 (103,094) – 161,935
Income (loss) from continuing operations $ 466,307 $ 86,091 $ 12,173 $(42,307) $ 522,264
2003
Operating revenues from external customers $5,919,938 $1,677,768 $133,561 $ – $ 7,731,267
Intersegment revenues 1,123 10,868 – (11,991) –
Total revenues $5,921,061 $1,688,636 $133,561 $(11,991) $ 7,731,267
Depreciation and amortization $ 625,132 $ 80,688 $ 21,487 $ – $ 727,307
Financing costs, mainly interest expense 312,432 57,673 103,825 (22,911) 451,019
Income tax expense (benefit) 239,671 31,314 (100,293) – 170,692
Income (loss) from continuing operations $ 461,363 $ 94,056 $ 4,984 $ (37,579) $ 522,824
XCEL ENERGY 2005 ANNUAL REPORT 81
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS