CenterPoint Energy 2009 Annual Report Download - page 133

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111
Year Ended December 31, 2009
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(In millions, exce
p
t
p
er share amounts)
Revenues ....................................................................................
.
$ 2,766 $ 1,640 $ 1,576 $ 2,299
Operating income.......................................................................
.
285 253 287 299
N
et income .................................................................................
.
67 86 114
105
Basic earnings per share(1) .......................................................
.
$ 0.19 $ 0.24 $ 0.31 $ 0.27
Diluted earnin
g
s per share(1) ....................................................
.
$ 0.19 $ 0.24 $ 0.31 $ 0.27
_________
(1) Quarterly earnings per common share are based on the weighted average number of shares outstanding
during the quarter, and the sum of the quarters may not equal annual earnings per common share.
CenterPoint Energy included the conversion spread related to its contingently convertible senior notes in
the calculation of diluted earnings per share when the average market price of CenterPoint Energy’s
common stock in the respective reporting period exceeds the conversion price. All of CenterPoint Energy’s
3.75% convertible senior notes were submitted for conversion on or prior to the May 30, 2008 redemption
date.
(14) Reportable Business Segments
CenterPoint Energy’s determination of reportable business segments considers the strategic operating units under
which CenterPoint Energy manages sales, allocates resources and assesses performance of various products and
services to wholesale or retail customers in differing regulatory environments. The accounting policies of the
business segments are the same as those described in the summary of significant accounting policies except that
some executive benefit costs have not been allocated to business segments. CenterPoint Energy uses operating
income as the measure of profit or loss for its business segments.
CenterPoint Energy’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 electric transmission and distribution function (CenterPoint Houston) is reported in the Electric
Transmission & Distribution business segment. Natural Gas Distribution consists of 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 CenterPoint Energy’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, treating and processing operations. Other Operations consists
primarily of other corporate operations which support all of CenterPoint Energy’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.