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Segment Information (Tables)

12 Months Ended

Dec. 31, 2020

Segment information as of and for the year ended December 31, 2020 consisted of:


For the year ended December 31, 2020	Networks		Renewables		Other(a)		AVANGRID Consolidated
(Millions)
Revenue - external	$	5,187	$	1,132	$	1	$	6,320
Revenue - intersegment	1		—		(1)		—
Depreciation and amortization	592		394		1		987
Operating income	877		(16)		8		869
Earnings (losses) from equity method investments	10		(13)		—		(3)
Interest expense, net of capitalization	234		7		75		316
Income tax expense (benefit)	120		(80)		(11)		29
Capital expenditures	1,838		943		—		2,781
Adjusted net income	568		115		(58)		625
As of December 31, 2020
Property, plant and equipment	17,079		9,662		10		26,751
Equity method investments	134		534		—		668
Total assets	$	24,592	$	12,867	$	364	$	37,823

(a)Includes Corporate and intersegment eliminations.

Segment information as of and for the year ended December 31, 2019 consisted of:


For the year ended December 31, 2019	Networks		Renewables		Other(a)		AVANGRID Consolidated
(Millions)
Revenue - external	$	5,150	$	1,184	$	2	$	6,336
Revenue - intersegment	14		—		(14)		—
Depreciation and amortization	549		383		1		933
Operating income	890		93		15		998
Earnings (losses) from equity method investments	11		(8)		—		3
Interest expense, net of capitalization	269		14		27		310
Income tax expense (benefit)	152		28		(11)		169
Capital expenditures	1,610		1,122		3		2,735
Adjusted net income	465		193		(17)		640
As of December 31, 2019
Property, plant and equipment	15,829		9,357		10		25,196
Equity method investments	139		506		—		645
Total assets	$	23,239	$	13,152	$	(1,997)	$	34,394

(a)Includes Corporate and intersegment eliminations.

Segment information for the year ended December 31, 2018 consisted of:


For the year ended December 31, 2018	Networks		Renewables		Other (a)		AVANGRID Consolidated
(Millions)
Revenue - external	$	5,304	$	1,136	$	37	$	6,477
Revenue - intersegment	6		2		(8)		—
Loss from assets held for sale	—		—		16		16
Depreciation and amortization	503		352		—		855
Operating income	968		132		16		1,116
Earnings (losses) from equity method investments	13		(3)		—		10
Interest expense, net of capitalization	260		33		10		303
Income tax expense (benefit)	167		(32)		32		167
Capital expenditures	1,370		407		—		1,777
Adjusted net income	$	481	$	182	$	13	$	676

(a)Includes Corporate, Gas and intersegment eliminations.

Schedule of Reconciliation of Consolidated EBITDA to Consolidated Net Income

Reconciliation of Adjusted Net Income to Net Income attributable to AVANGRID for the years ended December 31, 2020, 2019 and 2018 is as follows:


Years Ended December 31,	2020		2019		2018
(Millions)
Adjusted Net Income Attributable to Avangrid, Inc.	$	625	$	640	$	676
Adjustments:
Restructuring charges (1)	(6)		(6)		(4)
Mark-to-market adjustments - Renewables (2)	(5)		76		(25)
Loss from held for sale measurement (3)	—		—		(16)
Impact of the Tax Act (4)	—		—		(46)
Accelerated depreciation from repowering (5)	(9)		(33)		(3)
Impact of COVID-19 (6)	(29)		—		—
Merger costs (7)	(6)		—		—
Legal settlement - Gas storage (8)	(5)		—		—
Income tax impact of adjustments	16		(10)		(6)
Gas Storage, net of tax (8)	—		—		11
Net Income Attributable to Avangrid, Inc.	$	581	$	667	$	587

(1)Restructuring and severance related charges relate to costs resulted from restructuring actions involving initial targeted voluntary workforce reductions and related costs in our plan to vacate a lease, predominantly within the Networks segment and costs to implement an initiative to mitigate costs and achieve sustainable growth (See Note 27 - Restructuring and Severance Related Expenses – for further details).

(2)Mark-to-market earnings relates to earnings impacts from changes in the fair value of Renewables' derivative instruments associated with electricity and natural gas.

(3)Represents loss from measurement of assets and liabilities held for sale in connection with the committed plan to sell the gas trading and storage businesses.

(4)Represents the impact from measurement of deferred income tax balances as a result of the Tax Act enacted by the U.S. federal government on December 22, 2017.

(5)Represents the amount of accelerated depreciation derived from repowering wind farms in Renewables.

(6)Represents costs incurred in connection with the COVID-19 pandemic.

(7)Pre-merger costs incurred.

(8)Removal of the impact from Gas activity in the reconciliation to AVANGRID Net Income.