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. 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 September 30, 2017: Operating revenues $ 280,776 $ 10,864 $ 291,640 $ 5,456 $ — $ 297,096 Resource costs 104,516 4,052 108,568 — — 108,568 Other operating expenses (2) 81,045 3,469 84,514 6,598 — 91,112 Depreciation and amortization 41,516 1,452 42,968 137 — 43,105 Income (loss) from operations 31,023 1,298 32,321 (1,279 ) — 31,042 Interest expense (3) 23,132 895 24,027 215 (71 ) 24,171 Income taxes 5,972 44 6,016 (863 ) — 5,153 Net income (loss) attributable to Avista Corp. shareholders 5,419 427 5,846 (1,395 ) — 4,451 Capital expenditures (4) 109,066 1,073 110,139 1,050 — 111,189 Avista Utilities Alaska Electric Light and Power Company Total Utility Other Intersegment Eliminations (1) Total For the three months ended September 30, 2016: Operating revenues $ 287,193 $ 9,796 $ 296,989 $ 6,360 $ — $ 303,349 Resource costs 115,228 3,509 118,737 — — 118,737 Other operating expenses 72,318 2,842 75,160 6,756 — 81,916 Depreciation and amortization 38,909 1,331 40,240 193 — 40,433 Income (loss) from operations 38,554 1,629 40,183 (589 ) — 39,594 Interest expense (3) 20,772 894 21,666 149 (19 ) 21,796 Income taxes 7,983 339 8,322 (716 ) — 7,606 Net income (loss) attributable to Avista Corp. shareholders 12,673 866 13,539 (1,305 ) — 12,234 Capital expenditures (4) 101,558 3,699 105,257 105 — 105,362 For the nine months ended September 30, 2017: Operating revenues $ 992,904 $ 38,002 $ 1,030,906 $ 17,161 $ — $ 1,048,067 Resource costs 366,590 10,315 376,905 — — 376,905 Other operating expenses (2) 231,727 9,236 240,963 19,863 — 260,826 Depreciation and amortization 123,249 4,347 127,596 482 — 128,078 Income (loss) from operations 193,629 12,080 205,709 (3,184 ) — 202,525 Interest expense (3) 68,641 2,684 71,325 558 (112 ) 71,771 Income taxes 49,881 3,582 53,463 (1,915 ) — 51,548 Net income (loss) attributable to Avista Corp. shareholders 85,623 5,961 91,584 (3,246 ) — 88,338 Capital expenditures (4) 283,081 4,772 287,853 1,219 — 289,072 For the nine months ended September 30, 2016: Operating revenues $ 989,981 $ 32,689 $ 1,022,670 $ 17,690 $ — $ 1,040,360 Resource costs 380,913 9,358 390,271 — — 390,271 Other operating expenses 221,364 8,241 229,605 18,862 — 248,467 Depreciation and amortization 115,126 3,984 119,110 573 — 119,683 Income (loss) from operations 199,661 9,354 209,015 (1,745 ) — 207,270 Interest expense (3) 61,652 2,684 64,336 459 (116 ) 64,679 Income taxes 53,004 2,910 55,914 (1,253 ) — 54,661 Net income (loss) attributable to Avista Corp. shareholders 94,431 4,885 99,316 (2,179 ) — 97,137 Capital expenditures (4) 274,041 14,031 288,072 270 — 288,342 Total Assets: As of September 30, 2017: $ 5,116,059 $ 276,426 $ 5,392,485 $ 59,747 $ — $ 5,452,232 As of December 31, 2016: $ 4,975,555 $ 273,770 $ 5,249,325 $ 60,430 $ — $ 5,309,755 (1) Intersegment eliminations reported as interest expense represent intercompany interest. (2) Other operating expenses for Avista Utilities for the three and nine months ended September 30, 2017 include acquisition costs of $6.7 million and $8.0 million , respectively, which are separately disclosed on the Condensed Consolidated Statements of Income. (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. |