Segment and geographic information

6 Months Ended

Jun. 30, 2017

Segment and geographic information

Segment and geographic information

11. Segment and geographic information

We have four reportable segments: East U.S., West U.S., Canada and Un-Allocated Corporate. We analyze the performance of our operating segments based on Project Adjusted EBITDA, which is defined as project income (loss) plus interest, taxes, depreciation and amortization (including non-cash impairment charges) and changes in fair value of derivative instruments. We use Project Adjusted EBITDA to provide comparative information about segment performance without considering how projects are capitalized or whether they contain derivative contracts that are required to be recorded at fair value. Our equity investments in unconsolidated affiliates are presented as proportionately consolidated based on our ownership percentage in the reconciliation of Project Adjusted EBITDA to project income (loss).

A reconciliation of Project Adjusted EBITDA to net loss for the three months ended June 30, 2017 and 2016 is included in the table below:

							Un-Allocated
	East U.S.		West U.S.		Canada		Corporate		Consolidated
Three Months Ended June 30, 2017
Project revenues	$	40.4	$	27.9	$	55.4	$	0.3	$	124.0
Segment assets		688.5		299.3		281.9		104.4		1,374.1
Project Adjusted EBITDA	$	29.1	$	10.6	$	45.2	$	0.5	$	85.4
Change in fair value of derivative instruments		0.7		—		0.9		1.0		2.6
Depreciation and amortization		11.4		10.0		13.2		0.1		34.7
Interest, net		2.6		(0.1)		—		—		2.5
Impairment		57.7		—		—		—		57.7
Project (loss) income		(43.3)		0.7		31.1		(0.6)		(12.1)
Administration		—		—		—		5.7		5.7
Interest expense, net		—		—		—		18.4		18.4
Foreign exchange loss		—		—		—		5.9		5.9
(Loss) income from continuing operations before income taxes		(43.3)		0.7		31.1		(30.6)		(42.1)
Income tax benefit		—		—		—		(22.3)		(22.3)
Net (loss) income from continuing operations	$	(43.3)	$	0.7	$	31.1	$	(8.3)	$	(19.8)

							Un-Allocated
	East U.S.		West U.S.		Canada		Corporate		Consolidated
Three Months Ended June 30, 2016
Project revenues	$	33.7	$	25.5	$	38.8	$	0.2	$	98.2
Segment assets		775.7		335.9		430.3		168.0		1,709.9
Project Adjusted EBITDA	$	20.9	$	14.5	$	10.9	$	(0.1)	$	46.2
Change in fair value of derivative instruments		(2.5)		—		(11.6)		1.9		(12.2)
Depreciation and amortization		10.9		9.9		9.6		—		30.4
Interest, net		2.9		—		—		—		2.9
Other project expense		—		—		—		(0.1)		(0.1)
Project income (loss)		9.6		4.6		12.9		(1.9)		25.2
Administration		—		—		—		5.8		5.8
Interest expense, net		—		—		—		51.2		51.2
Foreign exchange loss		—		—		—		2.6		2.6
Other income, net		—		—		—		0.3		0.3
Income (loss) from continuing operations before income taxes		9.6		4.6		12.9		(61.8)		(34.7)
Income tax benefit		—		—		—		(18.4)		(18.4)
Net income (loss) from continuing operations	$	9.6	$	4.6	$	12.9	$	(43.4)	$	(16.3)

							Un-Allocated
	East U.S.		West U.S.		Canada		Corporate		Consolidated
Six Months Ended June 30, 2017
Project revenues	$	76.5	$	51.3	$	94.1	$	0.5	$	222.4
Segment assets		688.5		299.3		281.9		104.4		1,374.1
Project Adjusted EBITDA	$	56.2	$	19.8	$	72.8	$	0.5	$	149.3
Change in fair value of derivative instruments		1.3		—		4.1		(1.6)		3.8
Depreciation and amortization		22.7		19.8		26.4		0.4		69.3
Interest, net		5.3		—		—		—		5.3
Impairment		57.7		—		—		—		57.7
Project (loss) income		(30.8)		—		42.3		1.7		13.2
Administration		—		—		—		12.1		12.1
Interest expense, net		—		—		—		35.7		35.7
Foreign exchange loss		—		—		—		8.3		8.3
(Loss) income from continuing operations before income taxes		(30.8)		—		42.3		(54.4)		(42.9)
Income tax benefit		—		—		—		(22.6)		(22.6)
Net (loss) income from continuing operations	$	(30.8)	$	—	$	42.3	$	(31.8)	$	(20.3)

							Un-Allocated
	East U.S.		West U.S.		Canada		Corporate		Consolidated
Six Months Ended June 30, 2016
Project revenues	$	73.1	$	44.5	$	86.5	$	0.5	$	204.6
Segment assets		775.7		335.9		430.3		168.0		1,709.9
Project Adjusted EBITDA	$	51.2	$	22.0	$	35.7	$	(0.2)	$	108.7
Change in fair value of derivative instruments		(1.7)		—		(12.1)		2.8		(11.0)
Depreciation and amortization		21.9		19.7		18.5		0.2		60.3
Interest, net		5.4		—		—		—		5.4
Other project expense		—				—		0.1		0.1
Project income (loss)		25.6		2.3		29.3		(3.3)		53.9
Administration		—		—		—		11.9		11.9
Interest expense, net		—		—		—		67.8		67.8
Foreign exchange loss		—		—		—		22.5		22.5
Other income, net		—		—		—		(2.2)		(2.2)
Income (loss) from continuing operations before income taxes		25.6		2.3		29.3		(103.3)	$	(46.1)
Income tax benefit		—		—		—		(16.8)		(16.8)
Net income (loss) from continuing operations	$	25.6	$	2.3	$	29.3	$	(86.5)	$	(29.3)

The table below provides information, by country, about our consolidated operations for each of the three and six months ended June 30, 2017 and 2016 and Property, Plant & Equipment as of June 30, 2017 and December 31, 2016, respectively. Revenue is recorded in the country in which it is earned and assets are recorded in the country in which they are located.

	Project Revenue Three Months Ended June 30,				Project Revenue Six Months Ended June 30,				Property, Plant and Equipment, net of accumulated depreciation
	2017		2016		2017		2016		June 30, 2017		December 31, 2016
United States	$	68.6	$	59.4	$	128.3	$	118.1	$	486.7	$	499.2
Canada		55.4		38.8		94.1		86.5		219.1		234.0
Total	$	124.0	$	98.2	$	222.4	$	204.6	$	705.8	$	733.2

Independent Electricity System Operator (“IESO”), Ontario Electricity Financial Corporation (“OEFC”) and Niagara Mohawk provided 17.8%,  17.8% and 11.8%, respectively, of total consolidated revenues for the three months ended June 30, 2017. IESO, Niagara Mohawk and OEFC provided 20.9%,  12.1% and 11.5%, respectively, of total consolidated revenues for the six months ended June 30, 2017. IESO, BC Hydro and San Diego Gas & Electric provided 31.3%,  14.0% and 11.1%, respectively, of total consolidated revenues for the three months ended June 30, 2016. IESO, BC Hydro and Niagara Mohawk provided 34.8%,  14.1% and 8.7%, respectively, of total consolidated revenues for the six months ended June 30, 2016. IESO and OEFC purchase electricity from the Calstock, Kapuskasing, Nipigon and North Bay projects in the Canada segment, San Diego Gas & Electric purchases electricity from the Naval Station, Naval Training Center, and North Island projects in the West U.S. segment, Niagara Mohawk purchases electricity from the Curtis Palmer project in the East U.S. segment, and BC Hydro purchases electricity from the Mamquam, Moresby Lake, and Williams Lake projects in the Canada segment.