XML 52 R19.htm IDEA: XBRL DOCUMENT
v3.2.0.727

Segment Reporting | 6 Months Ended
--- | ---
Jun. 30, 2015
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company’s determination of reportable business segments considers the strategic operating units under which the Company makes financial decisions, allocates resources and assesses performance of its retail and asset optimization businesses. The Company’s reportable business segments are retail natural gas and retail electricity. The retail natural gas segment consists of natural gas sales to, and natural gas transportation and distribution for, residential and commercial customers. Asset optimization activities, considered an integral part of securing the lowest price natural gas to serve retail gas load, are part of the retail natural gas segment. The Company recorded asset optimization revenues of $23.0 million and $46.7 million and asset optimization cost of revenues of $23.1 million and $46.5 million for the three months ended June 30, 2015 and 2014, respectively, which are presented on a net basis in asset optimization revenues. The Company recorded asset optimization revenues of $93.0 million and $179.6 million and asset optimization cost of revenues of $91.1 million and $177.8 million for the six months ended June 30, 2015 and 2014, respectively, which are presented on a net basis in asset optimization revenues.The retail electricity segment consists of electricity sales and transmission to residential and commercial customers. Corporate and other consists of expenses and assets of the retail natural gas and retail electricity segments that are managed at a consolidated level such as general and administrative expenses. To assess the performance of the Company’s operating segments, the Chief Operating Decision Maker analyzes retail gross margin. The Company defines retail gross margin as operating income plus (i) depreciation and amortization expenses and (ii) general and administrative expenses, less (i) net asset optimization revenues, (ii) net gains (losses) on derivative instruments, and (iii) net current period cash settlements on derivative instruments. The Company deducts net gains (losses) on derivative instruments, excluding current period cash settlements, from the retail gross margin calculation in order to remove the non-cash impact of net gains and losses on derivative instruments. Retail gross margin is a primary performance measure used by our management to determine the performance of our retail natural gas and electricity business by removing the impacts of our asset optimization activities and net non-cash income (loss) impact of our economic hedging activities. As an indicator of our retail energy business’ operating performance, retail gross margin should not be considered an alternative to, or more meaningful than, operating income, as determined in accordance with GAAP. Below is a reconciliation of retail gross margin to income before income tax expense (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30,
| 2015 |  | 2014 | 2015 |  | 2014
Reconciliation of Retail Gross Margin to Income before taxes |  |  |  |  |  |
Income before income tax expense | $ | 5,084 |  |  | $ | 333 |  | $ | 18,573 |  |  | $ | 6,873 |
Interest and other income | (187 | ) |  | (1 | ) | (322 | ) |  | (71 | )
Interest expense | 207 |  |  | 222 |  | 588 |  |  | 535 |
Operating Income | 5,104 |  |  | 554 |  | 18,839 |  |  | 7,337 |
Depreciation and amortization | 5,231 |  |  | 3,252 |  | 9,508 |  |  | 6,211 |
General and administrative | 12,978 |  |  | 9,747 |  | 27,683 |  |  | 17,860 |
Less: |  |  |  |  |  |
Net asset optimization revenue | (67 | ) |  | 197 |  | 1,862 |  |  | 1,821 |
Net, Gains (losses) on non-trading derivative instruments | (4,041 | ) |  | (4,438 | ) | (5,241 | ) |  | 7,010 |
Net, Cash settlements on non-trading derivative instruments | 4,328 |  |  | (97 | ) | 8,442 |  |  | (12,998 | )
Retail Gross Margin | $ | 23,093 |  |  | $ | 17,891 |  | $ | 50,967 |  |  | $ | 35,575 |
The Company uses retail gross margin and net asset optimization revenues as the measure of profit or loss for its business segments. This measure represents the lowest level of information that is provided to the chief operating decision maker for our reportable segments. Financial data for business segments are as follows (in thousands):
Three Months Ended June 30, 2015 | Retail Electricity |  | Retail Natural Gas |  | Corporate and Other |  | Eliminations |  | Spark Retail
Total Revenues | $ | 44,072 |  |  | $ | 21,361 |  |  | $ | — |  |  | $ | — |  |  | $ | 65,433 |
Retail cost of revenues | 32,745 |  |  | 9,375 |  |  | — |  |  | — |  |  | 42,120 |
Less: |  |  |  |  |  |  |  |  |
Net asset optimization revenues | — |  |  | (67 | ) |  | — |  |  | — |  |  | (67 | )
Gains (losses) on non-trading derivatives | (4,692 | ) |  | 651 |  |  | — |  |  | — |  |  | (4,041 | )
Current period settlements on non-trading derivatives | 2,357 |  |  | 1,971 |  |  | — |  |  | — |  |  | 4,328 |
Retail gross margin | $ | 13,662 |  |  | $ | 9,431 |  |  | $ | — |  |  | $ | — |  |  | $ | 23,093 |
Total Assets | $ | 62,457 |  |  | $ | 93,852 |  |  | $ | 33,724 |  |  | $ | (81,493 | ) |  | $ | 108,540 |
Three Months Ended June 30, 2014 | Retail Electricity |  | Retail Natural Gas |  | Corporate and Other |  | Eliminations |  | Spark Retail
Total revenues | $ | 42,771 |  |  | $ | 23,169 |  |  | $ | — |  |  | $ | — |  |  | $ | 65,940 |
Retail cost of revenues | 35,753 |  |  | 16,634 |  |  | — |  |  | — |  |  | 52,387 |
Less: |  |  |  |  |  |  |  |  |
Net asset optimization revenues | — |  |  | 197 |  |  | — |  |  | — |  |  | 197 |
Gains (losses) on non-trading derivatives | (4,297 | ) |  | (141 | ) |  | — |  |  | — |  |  | (4,438 | )
Current period settlements on non-trading derivatives | 542 |  |  | (639 | ) |  | — |  |  | — |  |  | (97 | )
Retail gross margin | $ | 10,773 |  |  | $ | 7,118 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,891 |
Total Assets | $ | 38,606 |  |  | $ | 79,570 |  |  | $ | 1,623 |  |  | $ | (33,341 | ) |  | $ | 86,458 |
Six Months Ended June 30, 2015 | Retail Electricity |  | Retail Natural Gas |  | Corporate and Other |  | Eliminations |  | Spark Retail
Total revenues | $ | 88,521 |  |  | $ | 78,716 |  |  | $ | — |  |  | $ | — |  |  | $ | 167,237 |
Retail cost of revenues | 68,365 |  |  | 42,842 |  |  | — |  |  | — |  |  | 111,207 |
Less: |  |  |  |  |  |  |  |  |
Net asset optimization revenues | — |  |  | 1,862 |  |  | — |  |  | — |  |  | 1,862 |
Gains (losses) on non-trading derivatives | (5,324 | ) |  | 83 |  |  | — |  |  | — |  |  | (5,241 | )
Current period settlements on non-trading derivatives | 2,258 |  |  | 6,184 |  |  | — |  |  | — |  |  | 8,442 |
Retail gross margin | $ | 23,222 |  |  | $ | 27,745 |  |  | $ | — |  |  | $ | — |  |  | $ | 50,967 |
Total Assets | $ | 62,457 |  |  | $ | 93,852 |  |  | $ | 33,724 |  |  | $ | (81,493 | ) |  | $ | 108,540 |
Six Months Ended June 30, 2014 | Retail Electricity |  | Retail Natural Gas |  | Corporate and Other |  | Eliminations |  | Spark Retail
Total revenues | $ | 86,219 |  |  | $ | 85,697 |  |  | $ | — |  |  | $ | — |  |  | $ | 171,916 |
Retail cost of revenues | 73,370 |  |  | 67,138 |  |  | — |  |  | — |  |  | 140,508 |
Less: |  |  |  |  |  |  |  |  |
Net asset optimization revenues | — |  |  | 1,821 |  |  | — |  |  | — |  |  | 1,821 |
Gains (losses) on non-trading derivatives | 5,596 |  |  | 1,414 |  |  | — |  |  | — |  |  | 7,010 |
Current period settlements on non-trading derivatives | (10,496 | ) |  | (2,502 | ) |  | — |  |  | — |  |  | (12,998 | )
Retail gross margin | $ | 17,749 |  |  | $ | 17,826 |  |  | $ | — |  |  | $ | — |  |  | $ | 35,575 |
Total Assets | $ | 38,606 |  |  | $ | 79,570 |  |  | $ | 1,623 |  |  | $ | (33,341 | ) |  | $ | 86,458 |
Significant Customers For the three and six months ended June 30, 2015, we had one significant customer that individually accounted for more than 10% of the Company’s consolidated net asset optimization revenues. For the three and six months ended June 30, 2014, we had four and one significant customers, respectively, that individually accounted for more than 10% of the Company’s combined net asset optimization revenues. For the three and six months ended June 30, 2015 and 2014, no individual customer accounted for more than 10% of the Company's combined and consolidated retail electricity or retail natural gas total revenues. Significant Suppliers For the three and six months ended June 30, 2015, we had three and one individual suppliers, respectively, that individually accounted for more than 10% of the Company’s consolidated net asset optimization revenues cost of revenues. For the three and six months ended June 30, 2014, we had three and two significant suppliers, respectively, that individually accounted for more than 10% of the Company’s combined net asset optimization revenues cost of revenues. For the three and six months ended June 30, 2015, the Company had two and three significant suppliers, respectively, that individually accounted for more than 10% of the Company’s consolidated retail electricity retail cost of revenues. For the three and six months ended June 30, 2014, the Company had one significant supplier that individually accounted for more than 10% of the Company's combined retail electricity retail cost of revenues. For the three and six months ended June 30, 2015 and 2014, no individual supplier accounted for more than 10% of the Company's combined and consolidated retail natural gas retail cost of revenues.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration