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. AEL&P is a separate reportable business segment, as it has separate financial reports that are reviewed in detail by the Chief Operating Decision Maker and its operations and risks are sufficiently different from Avista Utilities and the other businesses at AERC that it cannot be aggregated with any other operating segments. The Other category, which is not a reportable segment, includes other investments and operations of various subsidiaries, as well as certain other operations of Avista Capital.

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 March 31, 2019:
Operating revenues	$	377,702	$	10,881		$	388,583	$	7,898		$	—		$	396,481
Resource costs	138,712		(1,365		)	137,347		—			—			137,347
Other operating expenses (2)	100,583		3,059			103,642		7,355			—			110,997
Depreciation and amortization	46,507		2,407			48,914		209			—			49,123
Income from operations	60,224		6,513			66,737		334			—			67,071
Interest expense (3)	24,264		1,596			25,860		588			(440		)	26,008
Income taxes	28,544		1,363			29,907		110			—			30,017
Net income attributable to Avista Corp. shareholders	111,901		3,552			115,453		341			—			115,794
Capital expenditures (4)	92,309		1,306			93,615		162			—			93,777
For the three months ended March 31, 2018:
Operating revenues	$	388,754	$	13,663		$	402,417	$	6,944		$	—		$	409,361
Resource costs	151,665		2,953			154,618		—			—			154,618
Other operating expenses (2)	75,139		2,831			77,970		6,824			—			84,794
Depreciation and amortization	43,267		1,466			44,733		181			—			44,914
Income (loss) from operations	88,145		6,122			94,267		(61		)	—			94,206
Interest expense (3)	23,965		894			24,859		335			(165		)	25,029
Income taxes	10,417		1,464			11,881		(1,171		)	—			10,710
Net income (loss) attributable to Avista Corp. shareholders	55,540		3,772			59,312		(4,422		)	—			54,890
Capital expenditures (4)	81,176		641			81,817		214			—			82,031
Total Assets:
As of March 31, 2019: (5)	$	5,524,962	$	275,488		$	5,800,450	$	107,398		$	(17,865	)	$	5,889,983
As of December 31, 2018:	$	5,458,104	$	272,950		$	5,731,054	$	87,050		$	(35,528	)	$	5,782,576


(1)	Intersegment eliminations reported as interest expense represent intercompany interest.


(2)	Other operating expenses for Avista Utilities for the three months ended March 31, 2019 include merger transaction costs of $19.7 million, which are separately disclosed on the Condensed Consolidated Statements of Income. The three months ended March 31, 2018 include merger transaction costs of $0.7 million, which are also separately disclosed.


(3)	Including interest expense to affiliated trusts.


(4)	The capital expenditures for the other businesses are included in other investing activities on the Condensed Consolidated Statements of Cash Flows.


(5)	The total assets for Other as of March 31, 2019 includes $15.9 million in assets held for sale related to the sale of METALfx. See Note 18 for further discussion.