Xcel Energy 2003 Annual Report Download - page 69

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
XCEL ENERGY 2003 ANNUAL REPORT 85
20. 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, Wyoming, Kansas and Oklahoma. It also makes sales for resale and provides wholesale transmission
service to various entities in the United States. Regulated Electric Utility also includes electric trading.
–Xcel Energy’s Regulated Natural Gas Utility segment transports, stores and distributes natural gas and propane primarily in portions of Minnesota,
Wisconsin, North Dakota, Michigan, Colorado and Wyoming.
To r eport 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. Xcel Energy evaluates
performance by each legal entity based on profit or loss generated from the product or service provided.
Regulated Regulated
Electric Natural Gas All Reconciling Consolidated
(Thousands of dollars) Utility Utility Other Eliminations Total
2003
Operating revenues from external customers $5,969,356 $1,710,272 $ 257,888 $ – $7,937,516
Intersegment revenues 1,123 10,868 53,866 (65,857) –
Total revenues $5,970,479 $1,721,140 $ 311,754 $ (65,857) $7,937,516
Depreciation and amortization $628,108 $ 81,794 $ 46,098 $ – $ 756,000
Financing costs, mainly interest expense 313,456 58,259 104,022 (23,435) 452,302
Income tax expense (benefit) 240,186 31,928 (113,472) – 158,642
Income (loss) from continuing operations $462,528 $ 94,873 $ (10,142) $ (37,239) $ 510,020
2002
Operating revenues from external customers $5,437,017 $1,363,359 $ 234,749 $ – $7,035,125
Intersegment revenues 987 5,396 94,304 (100,684) 3
Total revenues $5,438,004 $1,368,755 $ 329,053 $ (100,684) $7,035,128
Depreciation and amortization $ 649,020 $ 87,259 $ 34,986 $ – $ 771,265
Financing costs, mainly interest expense 286,872 49,075 125,667 (39,207) 422,407
Income tax expense (benefit) 297,420 44,789 (106,595) – 235,614
Income (loss) from continuing operations $ 486,811 $ 89,026 $ (2,067) $ (46,077) $ 527,693
2001
Operating revenues from external customers $6,463,411 $2,020,530 $ 236,846 $ – $8,720,787
Intersegment revenues 1,189 9,932 85,891 (93,772) 3,240
Total revenues $6,464,600 $2,030,462 $ 322,737 $ (93,772) $8,724,027
Depreciation and amortization $ 616,283 $ 87,906 $ 22,606 $ – $ 726,795
Financing costs, mainly interest expense 265,999 45,723 101,318 (46,604) 366,436
Income tax expense (benefit) 343,488 39,509 (78,655) – 304,342
Income (loss) from continuing operations $ 555,976 $ 63,051 $ 4,813 $ (44,640) $ 579,200
In 2003, the process to allocate common costs of the Regulated Electric and Natural Gas Utility segments was revised. Segment results for 2002 and
2001 have been restated to reflect the revised cost allocation process.
Prior to its divestiture in 2003, NRG was previously considered a reportable segment of Xcel Energy. NRG is now reported as a discontinued operation,
as discussed in Note 3 to the Consolidated Financial Statements. See Note 3 for summarized financial information regarding NRG.