Information By Business Segments

9 Months Ended

Sep. 30, 2014

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. Ecova was a provider of facility information and cost management services for multi-site customers throughout North America. The Ecova business segment has been disposed of as of June 30, 2014. All income statement amounts have been reclassified to discontinued operations on the Condensed Consolidated Statements of Income for all periods presented. The Other category, which is not a reportable segment, includes Spokane Energy, other investments and operations of various subsidiaries, as well as certain other operations of Avista Capital. On July 1, 2014, the Company completed its acquisition of AERC. Based on the way AERC is managed and the financial reports that are reviewed by the Chief Operating Decision Maker, AEL&P, the primary subsidiary of AERC is considered a separate reportable business segment and the remaining activities of AERC are included in the Other category. All goodwill associated with the AERC acquisition has been assigned to the AEL&P reportable business segment.

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, 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 three months ended September 30, 2013:
Operating revenues	$	278,923	$	—	$	278,923	$	11,004		$	(450	)	$	289,477
Resource costs	131,136		—		131,136		—			—			131,136
Other operating expenses	69,596		—		69,596		10,662			(450		)	79,808
Depreciation and amortization	29,823		—		29,823		171			—			29,994
Income from operations	29,657		—		29,657		170			—			29,827
Interest expense (2)	18,837		—		18,837		525			(77		)	19,285
Income taxes	3,945		—		3,945		(578		)	—			3,367
Net income (loss) from continuing operations attributable to Avista Corp. shareholders	9,447		—		9,447		(1,074		)	77			8,450
Capital expenditures (3)	75,368		—		75,368		24			—			75,392
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

	Avista Utilities		Alaska Electric Light and Power Company		Total Utility		Other			Intersegment Eliminations (1)			Total
For the nine months ended September 30, 2013:
Operating revenues	$	1,008,669	$	—	$	1,008,669	$	30,145		$	(1,350	)	$	1,037,464
Resource costs	487,277		—		487,277		—			—			487,277
Other operating expenses	200,824		—		200,824		30,322			(1,350		)	229,796
Depreciation and amortization	86,783		—		86,783		536			—			87,319
Income (loss) from operations	167,648		—		167,648		(713		)	—			166,935
Interest expense (2)	56,635		—		56,635		1,801			(230		)	58,206
Income taxes	43,278		—		43,278		(1,349		)	—			41,929
Net income (loss) from continuing operations attributable to Avista Corp. shareholders	76,265		—		76,265		(2,613		)	230			73,882
Capital expenditures (3)	220,712		—		220,712		139			—			220,851
Total Assets:
As of September 30, 2014:	$	3,991,330	$	261,402	$	4,252,732	$	83,614		$	—		$	4,336,346
As of December 31, 2013 (4):	$	3,940,998	$	—	$	3,940,998	$	81,282		$	—		$	4,022,280

(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 are related to Ecova.

(4) The consolidated total assets presented here as of December 31, 2013 exclude total assets at Ecova of $339.6 million.