Information By Business Segments

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Information by Business Segments

INFORMATION BY BUSINESS SEGMENTS

The business segment presentation reflects the basis used by the Company's management to analyze performance and determine the allocation of resources. The Company's management evaluates performance based on income (loss) from operations before income taxes as well as net income (loss) attributable to Avista Corp. shareholders. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Avista Utilities' business is managed based on the total regulated utility operation; therefore, it is considered one segment. AEL&P (acquired in the AERC acquisition on July 1, 2014) is a separate reportable business segment as it has separate financial reports that are reviewed in detail by the Chief Operating Decision Maker and its operations and risks are sufficiently different from Avista Utilities and the other businesses at AERC that it cannot be aggregated with any other operating segments. All goodwill associated with the AERC acquisition was assigned to the AEL&P reportable business segment. The Other category, which is not a reportable segment, includes Spokane Energy, which was dissolved during the third quarter of 2015, other investments and operations of various subsidiaries, as well as certain other operations of Avista Capital.

Ecova is a provider of facility information and cost management services for multi-site customers throughout North America. The Ecova business segment was disposed of as of June 30, 2014. All income statement amounts were reclassified to discontinued operations on the Condensed Consolidated Statements of Income for all periods presented.

The following table presents information for each of the Company’s business segments (dollars in thousands):

	Avista Utilities		Alaska Electric Light and Power Company		Total Utility		Other			Intersegment Eliminations (1)			Total
For the three months ended September 30, 2015:
Operating revenues	$	298,132	$	9,273	$	307,405	$	6,244		$	—		$	313,649
Resource costs	135,048		3,162		138,210		—			—			138,210
Other operating expenses	71,536		2,779		74,315		6,462			—			80,777
Depreciation and amortization	34,986		1,317		36,303		178			—			36,481
Income (loss) from operations	34,800		1,508		36,308		(396		)	—			35,912
Interest expense (2)	19,054		896		19,950		150			(29		)	20,071
Income taxes	5,980		229		6,209		(94		)	—			6,115
Net income (loss) from continuing operations attributable to Avista Corp. shareholders	12,525		394		12,919		(197		)	—			12,722
Capital expenditures (3)	92,271		2,778		95,049		348			—			95,397
For the three months ended September 30, 2014:
Operating revenues	$	282,555	$	9,157	$	291,712	$	10,296		$	(450	)	$	301,558
Resource costs	128,591		2,997		131,588		—			—			131,588
Other operating expenses	69,403		3,106		72,509		10,701			(450		)	82,760
Depreciation and amortization	32,006		1,288		33,294		154			—			33,448
Income (loss) from operations	32,048		1,273		33,321		(559		)	—			32,762
Interest expense (2)	18,247		485		18,732		186			(163		)	18,755
Income taxes	7,146		329		7,475		(174		)	—			7,301
Net income (loss) from continuing operations attributable to Avista Corp. shareholders	10,349		511		10,860		(354		)	—			10,506
Capital expenditures (3)	92,197		1,053		93,250		194			—			93,444
For the nine months ended September 30, 2015:
Operating revenues	$	1,042,913	$	32,279	$	1,075,192	$	22,829		$	(550	)	$	1,097,471
Resource costs	479,604		9,282		488,886		—			—			488,886
Other operating expenses	212,293		8,306		220,599		23,474			(550		)	243,523
Depreciation and amortization	102,334		3,945		106,279		512			—			106,791
Income (loss) from operations	175,003		9,001		184,004		(1,157		)	—			182,847
Interest expense (2)	56,991		2,695		59,686		461			(81		)	60,066
Income taxes	45,500		2,504		48,004		(626		)	—			47,378
Net income (loss) from continuing operations attributable to Avista Corp. shareholders	81,387		3,953		85,340		(1,119		)	—			84,221
Capital expenditures (3)	264,283		8,518		272,801		852			—			273,653

	Avista Utilities		Alaska Electric Light and Power Company		Total Utility		Other		Intersegment Eliminations (1)			Total
For the nine months ended September 30, 2014:
Operating revenues	$	1,023,684	$	9,157	$	1,032,841	$	29,225	$	(1,350	)	$	1,060,716
Resource costs	478,010		2,997		481,007		—		—			481,007
Other operating expenses	204,089		3,106		207,195		21,864		(1,350		)	227,709
Depreciation and amortization	93,912		1,288		95,200		452		—			95,652
Income from operations	177,653		1,273		178,926		6,909		—			185,835
Interest expense (2)	55,215		485		55,700		899		(330		)	56,269
Income taxes	48,068		329		48,397		2,877		—			51,274
Net income from continuing operations attributable to Avista Corp. shareholders	85,030		511		85,541		3,528		167			89,236
Capital expenditures (3)	228,711		1,053		229,764		296		—			230,060
Total Assets:
As of September 30, 2015:	$	4,422,431	$	265,578	$	4,688,009	$	51,197	$	—		$	4,739,206
As of December 31, 2014:	$	4,367,926	$	264,195	$	4,632,121	$	80,210	$	—		$	4,712,331

(1) Intersegment eliminations reported as operating revenues and resource costs represent intercompany purchases and sales of electric capacity and energy. Intersegment eliminations reported as interest expense and net income (loss) attributable to Avista Corp. shareholders represent intercompany interest.

(2) Including interest expense to affiliated trusts.

(3) The capital expenditures for the other businesses are included as other capital expenditures on the Condensed Consolidated Statements of Cash Flows. The remainder of the balance included in other capital expenditures on the Condensed Consolidated Statements of Cash Flows in 2014 are related to Ecova.