CenterPoint Energy 2008 Annual Report Download - page 125

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103
costs have not been allocated to business segments. The Company uses operating income as the measure of profit or
loss for its business segments.
The Company’s reportable business segments include the following: Electric Transmission & Distribution,
Natural Gas Distribution, Competitive Natural Gas Sales and Services, Interstate Pipelines, Field Services and Other
Operations. The rate-regulated electric transmission and distribution function (CenterPoint Houston) is reported in
the Electric Transmission & Distribution business segment. Natural Gas Distribution consists of rate-regulated
intrastate natural gas sales to, and natural gas transportation and distribution for, residential, commercial, industrial
and institutional customers. Competitive Natural Gas Sales and Services represents the Company’s non-rate
regulated gas sales and services operations, which consist of three operational functions: wholesale, retail and
intrastate pipelines. The Interstate Pipelines business segment includes the interstate natural gas pipeline operations.
The Field Services business segment includes the natural gas gathering operations. Other Operations consists
primarily of other corporate operations which support all of the Company’s business operations.
Long-lived assets include net property, plant and equipment, net goodwill and other intangibles and equity
investments in unconsolidated subsidiaries. Intersegment sales are eliminated in consolidation.
Financial data for business segments and products and services are as follows (in millions):
Revenues
from
External
Customers
Intersegment
Revenues
Depreciation
and
Amortization
Operating
Income
(Loss)
Total
Assets
Expenditures
for Long-Lived
Assets
As of and for the year ended
December 31, 2006:
Electric Transmission &
Distribution ..........................................................
$ 1,781(1)
$ —
$ 379
$ 576
$ 8,463
$ 389
Natural Gas Distribution ................................
3,582
11
152
124
4,463
187
Competitive Natural Gas Sales and
Services ................................................................
3,572
79
1
77
1,501
18
Interstate Pipelines(2) ................................
255
133
37
181
2,738
437
Field Services(3) .....................................................
119
31
10
89
608
65
Other................................................................
10
—
5
20
(2)
2,047(4)
25
Reconciling Eliminations ................................
(259)
—
—
(2,187)
—
Consolidated ...........................................................
$ 9,319
$ —
$ 599
$ 1,045
$ 17,633
$ 1,121
As of and for the year ended
December 31, 2007:
Electric Transmission &
Distribution ..........................................................
$ 1,837(1)
$ —
$ 398
$ 561
$ 8,358
$ 401
Natural Gas Distribution ................................
3,749
10
155
218
4,332
191
Competitive Natural Gas Sales and
Services ................................................................
3,534
45
5
75
1,221
7
Interstate Pipelines(2) ................................
357
143
44
237
3,007
308
Field Services(3) .....................................................
136
39
11
99
669
74
Other................................................................
10
—
18
(5)
1,956(4)
30
Reconciling Eliminations ................................
—
(237)
—
—
(1,671)
—
Consolidated ...........................................................
$ 9,623
$ —
$ 631
$ 1,185
$ 17,872
$ 1,011
As of and for the year ended
December 31, 2008:
Electric Transmission &
Distribution ..........................................................
$ 1,916(1)
$ —
$ 460
$ 545
$ 8,880
$ 481(5)
Natural Gas Distribution ................................
4,217
9
157
215
4,961
214
Competitive Natural Gas Sales and
Services ................................................................
4,488
40
3
62
1,315
8
Interstate Pipelines(2) ................................
477
173
46
293
3,578
189
Field Services(3) .....................................................
213
39
12
147
826
122
Other................................................................
11
—
30
11
2,185(4)
39
Reconciling Eliminations ................................
—
(261)
—
—
(2,069)
—
Consolidated ...........................................................
$ 11,322
$ —
$ 708
$ 1,273
$ 19,676
$ 1,053
__________
(1) Sales to subsidiaries of RRI in 2006, 2007 and 2008 represented approximately $737 million, $661 million
and $635 million, respectively, of CenterPoint Houston’s transmission and distribution revenues.
(2) Interstate Pipelines recorded equity income of $6 million and $36 million (including $6 million and
$33 million related to pre-operating allowance for funds used during construction) in the years ended
December 31, 2007 and 2008, respectively, from its 50 percent interest in SESH, a jointly-owned pipeline.