Segmented information

In connection with the acquisition of Empire on January 1, 2017, the Company aligned its management reporting under two primary North American business units consisting of the Liberty Power Group and the Liberty Utilities Group. The two business units are the two segments of the Company.

The Liberty Power Group owns and operates a diversified portfolio of non-regulated renewable and thermal electric generation utility assets; the Liberty Utilities Group owns and operates a portfolio of regulated electric, natural gas, water distribution and wastewater collection utility systems and transmission operations.

For purposes of evaluating divisional performance, the Company allocates the realized portion of any gains or losses on financial instruments to specific divisions. The unrealized portion of any gains or losses on derivative instruments not designated in a hedging relationship is not considered in management’s evaluation of divisional performance and is therefore allocated and reported in the corporate segment. The results of operations and assets for these segments are reflected in the tables below. The comparative information for 2016 has been reclassified to conform with the composition of the reporting segments presented in the current year.



	Year ended December 31, 2017
	Liberty Power Group			Liberty Utilities Group			Corporate			Total
Revenue	$	300,173		$	1,677,636		$	—		$	1,977,809
Fuel, power and water purchased	25,384			485,016			—			510,400
Net revenue	274,789			1,192,620			—			1,467,409
Operating expenses	86,675			511,983			—			598,658
Administrative expenses	20,777			42,900			789			64,466
Depreciation and amortization	103,038			222,088			1,321			326,447
Gain on foreign exchange	—			—			373			373
Operating income	64,299			415,649			(2,483		)	477,465
Interest expense	47,565			126,790			28,276			202,631
Interest, dividend, equity and other income	(3,723		)	(5,449		)	(2,817		)	(11,989		)
Other expenses (gain)	2,282			(4,250		)	62,751			60,783
Earnings (loss) before income taxes	$	18,175		$	298,558		$	(90,693	)	$	226,040
Property, plant and equipment	$	2,818,697		$	5,047,454		$	43,342		$	7,909,493
Equity-method investees	37,273			2,784			422			40,479
Total assets	3,103,999			7,299,576			130,060			10,533,635
Capital expenditures	211,328			528,695			—			740,023


22.	Segmented information (continued)



	Year ended December 31, 2016
	Liberty Power Group			Liberty Utilities Group			Corporate			Total
Revenue	$	265,949		$	830,069		$	—		$	1,096,018
Fuel and power purchased	21,260			274,055			—			295,315
Net revenue	244,689			556,014			—			800,703
Operating expenses	72,346			260,595			60			333,001
Administrative expenses	19,656			26,272			421			46,349
Depreciation and amortization	80,094			105,448			1,357			186,899
Gain on foreign exchange	—			—			(436		)	(436		)
Operating income	72,593			163,699			(1,402		)	234,890
Interest expense	21,847			50,671			59,074			131,592
Interest, dividend and other income	32			(5,282		)	(5,323		)	(10,573		)
Other expense (gain)	(14,403		)	(11,690		)	10,454			(15,639		)
Earnings (loss) before income taxes	$	65,117		$	130,000		$	(65,607	)	$	129,510
Property, plant and equipment	$	2,455,336		$	2,390,047		$	44,563		$	4,889,946
Equity-method investees	59,021			2,314			3,084			64,419
Total assets	2,771,651			5,388,966			88,843			8,249,460
Capital expenditures	141,420			264,323			—			405,743

The majority of non-regulated energy sales are earned from contracts with large public utilities. The Company has mitigated its credit risk to the extent possible by selling energy to large utilities in various North American locations. None of the utilities contribute more than 10% of total revenue.

APUC operates in the independent power and utility industries in both Canada and the United States. Information on operations by geographic area is as follows:



	2017		2016
Revenue
Canada	$	95,326	$	100,403
United States	1,882,483		995,615
	$	1,977,809	$	1,096,018
Property, plant and equipment
Canada	$	568,693	$	558,271
United States	7,340,800		4,331,675
	$	7,909,493	$	4,889,946
Intangible assets
Canada	$	34,654	$	36,611
United States	29,454		28,378
	$	64,108	$	64,989

Revenue is attributed to the two countries based on the location of the underlying generating and utility facilities.