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Segment Information
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
Our segment reporting structure uses our management reporting structure as its foundation to reflect how AVANGRID manages the business internally and is organized by type of business. We report our financial performance based on the following two reportable segments:
•Networks: includes all of the energy transmission and distribution activities, any other regulated activity originating in New York and Maine and regulated electric distribution, electric transmission and gas distribution activities originating in Connecticut and Massachusetts. The Networks reportable segment includes eight rate regulated operating segments. These operating segments generally offer the same services distributed in similar fashions, have the same types of customers, have similar long-term economic characteristics and are subject to similar regulatory requirements, allowing these operations to be aggregated into one reportable segment.
•Renewables: activities relating to renewable energy, mainly wind energy generation and trading related with such activities.
The chief operating decision maker evaluates segment performance based on segment adjusted net income defined as net income adjusted to exclude restructuring charges, mark-to-market earnings from changes in the fair value of derivative instruments, accelerated depreciation derived from repowering of wind farms and costs incurred in connection with the COVID-19 pandemic.
Products and services are sold between reportable segments and affiliate companies at cost. Segment income, expense and assets presented in the accompanying tables include all intercompany transactions that are eliminated in our condensed consolidated financial statements. Refer to Note 4 - Revenue for more detailed information on revenue by segment.
Segment information as of and for the three and nine months ended September 30, 2020, consisted of:
Three Months Ended September 30, 2020NetworksRenewablesOther (a)AVANGRID Consolidated
(Millions)    
Revenue - external$1,194 $275 $1 $1,470 
Revenue - intersegment3 1 (4)— 
Depreciation and amortization151 104 — 255 
Operating income (loss)160 7 (2)165 
Earnings (losses) from equity method investments3 (2)— 1 
Interest expense, net of capitalization63 (1)24 86 
Income tax expense (benefit)20 (7)2 15 
Adjusted net income$99 $32 $(31)$100 
Nine Months Ended September 30, 2020NetworksRenewablesOther (a)AVANGRID Consolidated
(Millions)    
Revenue - external$3,775 $875 $1 $4,651 
Revenue - intersegment4 1 (5)— 
Depreciation and amortization446 301 1 748 
Operating income617 24 6 647 
Earnings (losses) from equity method investments8 (11)— (3)
Interest expense, net of capitalization199 (1)53 251 
Income tax expense (benefit)75 (53)(1)21 
Adjusted net income379 108 (53)434 
Capital expenditures1,312 648 — 1,960 
As of September 30, 2020
Property, plant and equipment16,640 9,782 10 26,432 
Equity method investments138 530 — 668 
Total assets$24,178 $12,694 $(1,232)$35,640 
(a) Includes Corporate and intersegment eliminations.
Segment information for the three and nine months ended September 30, 2019 and as of December 31, 2019, consisted of:
Three Months Ended September 30, 2019NetworksRenewablesOther (a)AVANGRID Consolidated
(Millions)    
Revenue - external$1,139 $347 $1 $1,487 
Revenue - intersegment1 — (1)— 
Depreciation and amortization138 98 1 237 
Operating income182 53 4 239 
Earnings (losses) from equity method investments3 (4)— (1)
Interest expense, net of capitalization66 (1)7 72 
Income tax expense28 2 3 33 
Adjusted net income$89 $46 $(12)$123 
Nine Months Ended September 30, 2019NetworksRenewablesOther (a)AVANGRID
Consolidated
(Millions)    
Revenue - external$3,831 $896 $2 $4,729 
Revenue - intersegment6 — (6)— 
Depreciation and amortization407 273 1 681 
Operating income668 115 4 787 
Earnings (losses) from equity method investments8 (7)— 1 
Interest expense, net of capitalization201 6 19 226 
Income tax expense (benefit)117 (15)1 103 
Adjusted net income355 115 (28)442 
Capital expenditures1,086 959 — 2,045 
As of December 31, 2019    
Property, plant and equipment15,840 9,368 10 25,218 
Equity method investments139 506 — 645 
Total assets$23,250 $13,163 $(1,997)$34,416 
(a) Includes Corporate and intersegment eliminations.
Reconciliation of Adjusted Net Income to Net Income attributable to AVANGRID for the three and nine months ended September 30, 2020 and 2019, respectively, is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
(Millions)    
Adjusted Net Income Attributable to Avangrid, Inc.$100 $123 $434 $442 
Adjustments:
Mark-to-market earnings - Renewables (1)(7)42 9 66 
Restructuring charges (2)(1)(2)(5)(4)
Accelerated depreciation from repowering (3)(3)(5)(9)(15)
Impact of COVID-19 (4)(8)— (21)— 
Income tax impact of adjustments5 (9)7 (12)
Net Income Attributable to Avangrid, Inc.$87 $150 $415 $477 
(1)Mark-to-market earnings relates to earnings impacts from changes in the fair value of Renewables' derivative instruments associated with electricity and natural gas.
(2)Restructuring and severance related charges relate to costs to implement an initiative to mitigate costs and achieve sustainable growth.
(3)Represents the amount of accelerated depreciation derived from repowering of wind farms in Renewables.
(4)Represents costs incurred in connection with the COVID-19 pandemic.