SELECTED QUARTERLY FINANCIAL DATA (Unaudited)

The Company’s energy operations are significantly affected by weather conditions. Consequently, there can be large variances in revenues, expenses and net income between quarters based on seasonal factors such as, but not limited to, temperatures and streamflow conditions.

A summary of quarterly operations (in thousands, except per share amounts) for 2016 and 2015 follows:



	Three Months Ended
	March 31			June 30			September 30			December 31
2016
Operating revenues	$	418,173		$	318,838		$	303,349		$	402,123
Operating expenses	312,088			257,247			263,755			319,590
Income from operations	$	106,085		$	61,591		$	39,594		$	82,533
Net income (1)	57,665			27,287			12,261			40,103
Net income attributable to noncontrolling interests	(16		)	(33		)	(27		)	(12		)
Net income attributable to Avista Corporation shareholders (1)	$	57,649		$	27,254		$	12,234		$	40,091
Outstanding common stock:
weighted-average, basic	62,605			63,386			63,857			64,185
weighted-average, diluted	62,907			63,783			64,325			64,620
Earnings per common share attributable to Avista Corp. shareholders, diluted (1)	$	0.92		$	0.43		$	0.19		$	0.62



	Three Months Ended
	March 31			June 30			September 30			December 31
2015
Operating revenues from continuing operations	$	446,490		$	337,332		$	313,649		$	387,305
Operating expenses from continuing operations	356,915			279,972			277,737			316,938
Income from continuing operations	$	89,575		$	57,360		$	35,912		$	70,367
Net income from continuing operations	$	46,462		$	25,078		$	12,754		$	33,876
Net income from discontinued operations	—			196			289			4,662
Net income	46,462			25,274			13,043			38,538
Net income attributable to noncontrolling interests	(13		)	(28		)	(32		)	(17		)
Net income attributable to Avista Corporation shareholders	$	46,449		$	25,246		$	13,011		$	38,521
Amounts attributable to Avista Corp. shareholders:
Net income from continuing operations attributable to Avista Corp. shareholders	$	46,449		$	25,050		$	12,722		$	33,859
Net income from discontinued operations attributable to Avista Corp. shareholders	—			196			289			4,662
Net income attributable to Avista Corp. shareholders	$	46,449		$	25,246		$	13,011		$	38,521
Outstanding common stock:
weighted-average, basic	62,318			62,281			62,299			62,308
weighted-average, diluted	62,889			62,600			62,688			62,758
Earnings per common share attributable to Avista Corp. shareholders, diluted:
Earnings per common share from continuing operations	$	0.74		$	0.40		$	0.21		$	0.54
Earnings per common share from discontinued operations	—			—			—			0.07
Total earnings per common share attributable to Avista Corp. shareholders, diluted	$	0.74		$	0.40		$	0.21		$	0.61

(1)

The Company adopted ASU 2016-09 during the second quarter of 2016, with a retrospective effective date of January 1, 2016. The adoption of this standard resulted in a recognized income tax benefit of $1.6 million in 2016 associated with excess tax benefits on settled share-based employee payments. Because this standard was adopted in the second quarter of 2016, but has a retrospective effective date of January 1, 2016, the effects from the adoption were pushed back to the first quarter of 2016 and the results for that quarter were recast in the presentation above. In all future reports which include the first quarter of 2016, the results for that quarter will be recast to include the effects of the excess tax benefits recognized.