v3.4.0.3
Segment and geographic information
 3 Months Ended
Mar. 31, 2016
Segment and geographic information  
Segment and geographic information

13. Segment and geographic information

 

We have four reportable segments: East U.S., West U.S., Canada and Un-Allocated Corporate. We revised our reportable business segments in the second quarter of 2015 as the result of significant asset sales and in order to align with changes in management’s structure, resource allocation and performance assessment in making decisions regarding our operations. The Wind Projects, which made up the entirety of the former Wind segment, were sold in June 2015 and are designated as discontinued operations for the three months ended March 31, 2015. We analyze the performance of our operating segments based on Project Adjusted EBITDA which is defined as project income (loss) plus interest, taxes, depreciation and amortization (including non-cash impairment charges) and changes in fair value of derivative instruments. Project Adjusted EBITDA is not a measure recognized under GAAP and does not have a standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. We use Project Adjusted EBITDA to provide comparative information about project performance without considering how projects are capitalized or whether they contain derivative contracts that are required to be recorded at fair value. Our equity investments in unconsolidated affiliates are presented as proportionately consolidated based on our ownership percentage in the reconciliation of Project Adjusted EBITDA to project income (loss).

 

A reconciliation of Project Adjusted EBITDA to project income (loss) for the three months ended March 31, 2016 and 2015 reflecting our revised reportable business segments is included in the table below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

Un-Allocated

    

 

 

 

 

 

East U.S.

 

West U.S.

 

Canada

 

   Corporate   

 

Consolidated

 

Three Months Ended March 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Project revenues

 

$
39.4

 

$
19.1

 

$
47.7

 

$
0.2

 

$
106.4

 

Segment assets

 

 
802.5

 

 
340.4

 

 
439.4

 

 
77.7

 

 
1,660.0

 

Project Adjusted EBITDA

 

$
30.3

 

$
7.5

 

$
24.8

 

$
(0.1)

 

$
62.5

 

Change in fair value of derivative instruments

 

 
0.7

 

 

 —

 

 
(0.4)

 

 
0.9

 

 
1.2

 

Depreciation and amortization

 

 
11.0

 

 
9.9

 

 
8.8

 

 
0.2

 

 
29.9

 

Interest, net

 

 
2.5

 

 

 —

 

 

 —

 

 

 —

 

 
2.5

 

Other project expense

 

 

 —

 

 

 —

 

 

 —

 

 
0.2

 

 
0.2

 

Project income (loss)

 

 
16.1

 

 
(2.4)

 

 
16.4

 

 
(1.4)

 

 
28.7

 

Administration

 

 

 —

 

 

 —

 

 

 —

 

 
6.1

 

 
6.1

 

Interest, net

 

 

 —

 

 

 —

 

 

 —

 

 
16.6

 

 
16.6

 

Foreign exchange loss

 

 

 —

 

 

 —

 

 

 —

 

 
19.8

 

 
19.8

 

Other income, net

 

 

 —

 

 

 —

 

 

 —

 

 
(2.5)

 

 
(2.5)

 

Income (loss) from continuing operations before income taxes

 

 
16.1

 

 
(2.4)

 

 
16.4

 

 
(41.4)

 

 
(11.3)

 

Income tax expense

 

 

 —

 

 

 —

 

 

 —

 

 
1.6

 

 
1.6

 

Net income (loss) from continuing operations

 

$
16.1

 

$
(2.4)

 

$
16.4

 

$
(43.0)

 

$
(12.9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

 

 

    

 

 

    

Un-Allocated

    

 

 

 

 

 

East U.S.

 

West U.S.

 

Canada

 

   Corporate   

 

Consolidated

 

Three Months Ended March 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Project revenues

 

$
37.6

 

$
23.0

 

$
50.4

 

$
0.3

 

$
111.3

 

Segment assets

 

 
861.5

 

 
386.3

 

 
618.3

 

 
91.2

 

 
1,957.3

 

Project Adjusted EBITDA

 

$
26.7

 

$
10.0

 

$
23.7

 

$
(1.8)

 

$
58.6

 

Change in fair value of derivative instruments

 

 
2.6

 

 

 —

 

 
(1.6)

 

 
0.7

 

 
1.7

 

Depreciation and amortization

 

 
10.7

 

 
9.7

 

 
12.3

 

 
0.2

 

 
32.9

 

Interest, net

 

 
2.5

 

 

 —

 

 

 —

 

 

 —

 

 
2.5

 

Other project expense (income)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

Project income (loss)

 

 
10.9

 

 
0.3

 

 
13.0

 

 
(2.7)

 

 
21.5

 

Administration

 

 

 —

 

 

 —

 

 

 —

 

 
9.4

 

 
9.4

 

Interest, net

 

 

 —

 

 

 —

 

 

 —

 

 
25.7

 

 
25.7

 

Foreign exchange gain

 

 

 —

 

 

 —

 

 

 —

 

 
(32.2)

 

 
(32.2)

 

Other income, net

 

 

 —

 

 

 —

 

 

 —

 

 
(1.4)

 

 
(1.4)

 

Income (loss) from continuing operations before income taxes

 

 
10.9

 

 
0.3

 

 
13.0

 

 
(4.2)

 

 
20.0

 

Income tax benefit

 

 

 —

 

 

 —

 

 

 —

 

 
(4.6)

 

 
(4.6)

 

Net income (loss) from continuing operations

 

$
10.9

 

$
0.3

 

$
13.0

 

$
0.4

 

$
24.6

 

 

 

The table below provides information, by country, about our consolidated operations for each of the three months ended March 31, 2016 and 2015 and Property, Plant & Equipment as of March 31, 2016 and December 31, 2015, respectively. Revenue is recorded in the country in which it is earned and assets are recorded in the country in which they are located.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Project Revenue Three Months Ended March 31, 

 

Property, Plant and

Equipment, net of

accumulated depreciation

 

 

2016

 

2015

 

March 31, 2016

 

December 31, 2015

United States

    

$
58.7

    

$
60.8

    

$
517.4

    

$
529.6

Canada

 

 
47.7

 

 
50.5

 

 
260.4

 

 
248.1

Total

 

$
106.4

 

$
111.3

 

$
777.8

 

$
777.7

 

 

Independent Electricity System Operator (“IESO”), BC Hydro and Niagara Mohawk provided 38.1%,  14.2%, and 9.9%, respectively, of total consolidated revenues for the three months ended March 31, 2016. IESO, San Diego Gas & Electric and BC Hydro provided 33.7%,  14.4% and 11.7%, respectively, of total consolidated revenues for the three months ended March 31, 2015. IESO purchases electricity from the Calstock, Kapuskasing, Nipigon and North Bay projects in the Canada segment, San Diego Gas & Electric purchases electricity from the Naval Station, Naval Training Center, and North Island projects in the West U.S. segment, BC Hydro purchases electricity from the Mamquam, Moresby Lake, and Williams Lake projects in the Canada segment and Niagara Mohawk purchases electricity from the Curtis Palmer project in the East U.S. segment.