Information by Business Segments

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

INFORMATION BY BUSINESS SEGMENTS

NOTE 16. 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 June 30, 2020:
Operating revenues	$	268,340		$	9,997		$	278,337		$	255		$	—		$	278,592
Resource costs		67,069			896			67,965			—			—			67,965
Other operating expenses		83,140			3,064			86,204			659			—			86,863
Depreciation and amortization		61,462			2,446			63,908			188			—			64,096
Income (loss) from operations		32,217			3,302			35,519			(593	)		—			34,926
Interest expense (2)		24,188			1,561			25,749			130			(47	)		25,832
Income taxes		(8,004	)		480			(7,524	)		(395	)		—			(7,919	)
Net income (loss) attributable to Avista    Corp. shareholders		17,605			1,328			18,933			(1,480	)		—			17,453
Capital expenditures (3)		91,867			2,087			93,954			477			—			94,431
For the three months ended June 30, 2019:
Operating revenues	$	289,808		$	8,743		$	298,551		$	2,261		$	—		$	300,812
Resource costs		88,506			(67	)		88,439			—			—			88,439
Other operating expenses (4)		84,602			3,129			87,731			6,332			—			94,063
Depreciation and amortization		53,070			2,409			55,479			155			—			55,634
Income (loss) from operations		40,978			3,016			43,994			(4,226	)		—			39,768
Interest expense (2)		24,316			1,595			25,911			148			(197	)		25,862
Income taxes		(2,947	)		380			(2,567	)		826			—			(1,741	)
Net income attributable to Avista Corp. shareholders		21,219			1,076			22,295			3,024			—			25,319
Capital expenditures (3)		103,297			3,076			106,373			22			—			106,395
For the six months ended June 30, 2020:
Operating revenues	$	645,545		$	22,199		$	667,744		$	1,078		$	—		$	668,822
Resource costs		196,625		887				197,512			—			—			197,512
Other operating expenses		174,420			6,280			180,700			2,019			—			182,719
Depreciation and amortization		110,436			4,893			115,329			423			—			115,752
Income (loss) from operations		108,935			9,548			118,483			(1,364	)		—			117,119
Interest expense (2)		49,171			3,149			52,320			262			(132	)		52,450
Income taxes		(600	)		1,781			1,181			(568	)		—			613
Net income attributable to Avista    Corp. shareholders		63,584			4,723			68,307			(2,430	)		—			65,877
Capital expenditures (3)		185,923			3,557			189,480			586			—			190,066
For the six months ended June 30, 2019:
Operating revenues	$	667,510		$	19,624		$	687,134		$	10,159		$	—		$	697,293
Resource costs		227,218			(1,432	)		225,786			—			—			225,786
Other operating expenses (4)		185,185			6,188			191,373			13,687			—			205,060
Depreciation and amortization		99,577			4,816			104,393			364			—			104,757
Income (loss) from operations		101,202			9,529			110,731			(3,892	)		—			106,839
Interest expense (2)		48,580			3,191			51,771			736			(637	)		51,870
Income taxes		25,597			1,743			27,340			936			—			28,276
Net income (loss) attributable to Avista    Corp. shareholders		133,120			4,628			137,748			3,365			—			141,113
Capital expenditures (3)		195,606			4,382			199,988			184			—			200,172
Total Assets:
As of June 30, 2020:	$	5,932,490		$	273,314		$	6,205,804		$	111,591		$	(14,771	)	$	6,302,624
As of December 31, 2019:	$	5,713,268		$	271,393		$	5,984,661		$	113,390		$	(15,595	)	$	6,082,456

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

(2) Including interest expense to affiliated trusts.

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

(4) Other operating expenses for Avista Utilities for the six months ended June 30, 2019 include merger transaction costs which are separately disclosed on the Condensed Consolidated Statements of Income.