Segmentation, a new approach based on successive edge contraction is introduced for extract method refactoring. It targets identification of distinct functionalities implemented within a method. Segmentation builds upon data and control dependencies among statements to extract functionalities from code by successive contraction of edges in the Structure Dependence Graph (SDG). Three edge contractions are explored, namely structural control edge contraction, exclusive data dependence edge contraction, and sequential data dependence edge contraction. The SDG is first constructed from the program, which is then collapsed into a segment graph that captures dependence between subtasks. An intermediate representation for data and control dependencies among statements keeps the technique language independent. The approach is evaluated on four case studies, including three from the open source domain, and the findings are reported.