OG&E 2013 Annual Report Download - page 74

68 OGE Energy Corp.
Natural Gas
Electric Midstream Other
(In millions) Utility Operations Operations Eliminations Total
2013
Operating revenues $2,262.2 $÷«630.4 $÷÷÷«– $÷(24.9) $2,867.7
Cost of sales 965.9 489.0 – (26.0) 1,428.9
Other operation and maintenance 438.8 60.9 (10.5) – 489.2
Depreciation and amortization 248.4 36.8 12.1 – 297.3
Taxes other than income 83.8 10.5 4.5 – 98.8
Operating income (loss) $÷«525.3 $÷÷«33.2 $÷«(6.1) $÷÷«1.1 $÷«553.5
Equity in earnings of unconsolidated affiliates $÷÷÷÷÷– $÷«101.9 $÷÷÷«– $÷÷÷÷– $÷«101.9
Investment in unconsolidated affiliates (at historical cost) $÷÷÷÷÷– $1,298.8 $÷÷÷«– $÷÷÷÷– $1,298.8
Total assets $7,694.9 $1,348.6 $216.2 $(125.0) $9,134.7
Capital expenditures $÷«797.6 $÷«181.5 $÷11.5 $÷÷÷÷– $÷«990.6
2012
Operating revenues $2,141.2 $1,608.6 $÷÷÷«– $÷(78.6) $3,671.2
Cost of sales 879.1 1,120.1 – (80.5) 1,918.7
Other operation and maintenance 446.3 172.9 (17.7) – 601.5
Depreciation and amortization 248.7 108.8 13.5 – 371.0
Impairment of assets –0.4––0.4
Gain on insurance proceeds – (7.5) – – (7.5)
Taxes other than income 77.7 28.3 4.2 – 110.2
Operating income (loss) $÷«489.4 $÷«185.6 $÷÷÷«– $÷÷«1.9 $÷«676.9
Total assets $7,222.4 $2,681.3 $242.6 $(224.1) $9,922.2
Capital expenditures $÷«704.4 $÷«506.5 $÷18.3 $÷÷÷««– $1,229.2
2011
Operating revenues $2,211.5 $1,787.1 $÷÷÷«— $÷(82.7) $3,915.9
Cost of sales 1,013.5 1,346.6 – (82.2) 2,277.9
Other operation and maintenance 436.0 162.5 (17.3) – 581.2
Depreciation and amortization 216.1 77.6 13.4 – 307.1
Impairment of assets –6.3––6.3
Gain on insurance proceeds – (3.0) – – (3.0)
Taxes other than income 73.6 22.0 4.1 – 99.7
Operating income (loss) $÷«472.3 $÷«175.1 $÷«(0.2) $«÷«(0.5) $÷«646.7
Total assets $6,620.9 $2,289.0 $155.0 $(158.9) $8,906.0
Capital expenditures $÷«844.5 $÷«612.5 $÷13.8 $÷«÷÷«– $1,470.8
Supplemental Executive Retirement Plan
The Company provides a supplemental executive retirement plan in
order to attract and retain lateral hires or other executives designated
by the Compensation Committee of the Company’s Board of Directors
who may not otherwise qualify for a sufficient level of benefits under the
Company’s Pension Plan and Restoration of Retirement Income Plan.
The supplemental executive retirement plan is intended to be an unfunded
plan and not subject to the benefit limitations of the Code.
14. Report of Business Segments
Prior to May 1, 2013, the Company’s business was divided into
three segments as follows: (i) electric utility, which is engaged in
the generation, transmission, distribution and sale of electric energy,
(ii) natural gas transportation and storage and (iii) natural gas gathering
and processing. On March 14, 2013, OGE Energy entered into a Master
Formation Agreement with the ArcLight group and CenterPoint Energy,
Inc., pursuant to which OGE Energy, the ArcLight Group and CenterPoint
Energy, Inc., agreed to form Enable Midstream Partners to own and
operate the midstream businesses of OGE Energy and CenterPoint that
will initially be structured as a private limited partnership. The transaction
closed on May 1, 2013. As a result, effective May 1, 2013, OGE Energy
deconsolidated its interest in Enogex Holdings LLC and began account-
ing for its interest in Enable using the equity method of accounting.
The Company’s business is now divided into two segments for
financial reporting purposes as follows: (i) electric utility and (ii) natural
gas midstream operations. The former natural gas transportation and
storage segment and natural gas gathering and processing segment
have been combined into the natural gas midstream operations segment
and have been restated for all prior periods presented. Equity in earnings
of unconsolidated affiliates in the natural gas midstream operations
segment includes OGE Energy’s equity interest in Enable from May 1,
2013 through December 31, 2013. Operating income for the natural
gas midstream operations segment represents results of operations
for Enogex Holdings LLC through April 30, 2013. Investment in uncon-
solidated affiliates in the natural gas midstream operations segment
represents OGE Energy’s investment in Enable at December 31, 2013.
Other Operations primarily includes the operations of the holding
company. Intersegment revenues are recorded at prices comparable
to those of unaffiliated customers and are affected by regulatory con-
siderations. In reviewing its segment operating results, the Company
focuses on operating income and equity in earnings of unconsolidated
affiliates as its measure of segment profit and loss, and, therefore, has
presented this information below. The following tables summarize the
results of the Company’s business segments for the years ended
December 31, 2013, 2012 and 2011.