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, including the impact on electric and natural gas commodity prices.

A summary of quarterly operations (in thousands, except per share amounts) for 2018 and 2017 follows:



	Three Months Ended
	March 31			June 30			September 30			December 31
2018
Operating revenues	$	409,361		$	319,298		$	296,013		$	372,221
Operating expenses	315,155			266,019			259,569			295,037
Income from operations	$	94,206		$	53,279		$	36,444		$	77,184
Net income	54,956			25,644			10,129			45,869
Net income attributable to noncontrolling interests	(66		)	(67		)	(10		)	(26		)
Net income attributable to Avista Corporation shareholders	$	54,890		$	25,577		$	10,119		$	45,843
Outstanding common stock:
weighted-average, basic	65,639			65,677			65,688			65,688
weighted-average, diluted	65,931			65,983			66,026			65,846
Earnings per common share attributable to Avista Corp. shareholders, diluted	$	0.83		$	0.39		$	0.15		$	0.70



	Three Months Ended
	March 31			June 30		September 30			December 31
2017
Operating revenues	$	436,470		$	314,501	$	297,096		$	397,862
Operating expenses (1)	319,043			256,555		264,197			313,955
Income from operations (1)	$	117,427		$	57,946	$	32,899		$	83,907
Net income	62,137			21,722		4,458			27,615
Net loss (income) attributable to noncontrolling interests	(21		)	49		(7		)	(37		)
Net income attributable to Avista Corporation shareholders	$	62,116		$	21,771	$	4,451		$	27,578
Outstanding common stock:
weighted-average, basic	64,362			64,401		64,412			64,809
weighted-average, diluted	64,469			64,553		64,892			65,308
Earnings per common share attributable to Avista Corp. shareholders, diluted	$	0.96		$	0.34	$	0.07		$	0.42

(1)

Effective January 1, 2018, the Company adopted ASU No. 2017-07, which resulted in the reclassification of the non-service cost component of pension and other postretirement benefit costs from utility other operating expenses to other expense (income) - net on the Consolidated Statements of Income. There was no impact on net income. The Company reclassified $2.0 million, $1.8 million, $1.9 million and $2.0 million for the first through fourth quarters of 2017, respectively. See Note 2 for further discussion of the adoption of ASU No. 2017-07.