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Segment Reporting | 3 Months Ended
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Mar. 31, 2017
Segment Reporting [Abstract] |
Segment Reporting | 14. 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 $61.9 million and $42.3 million and asset optimization cost of revenues of $62.1 million and $41.8 million for the three months ended March 31, 2017 and 2016, 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 (loss) plus (i) depreciation and amortization expenses and (ii) general and administrative expenses, less (i) net asset optimization revenues (expenses), (ii) net gains (losses) on non-trading derivative instruments, and (iii) net current period cash settlements on non-trading derivative instruments. The Company deducts net gains (losses) on non-trading 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 non-trading 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 March 31,
| 2017 |  | 2016
Reconciliation of Retail Gross Margin to Income before taxes |  |  |
Income before income tax expense | $ | 13,792 |  |  | $ | 16,729 |
Interest and other income | (199 | ) |  | 95 |
Interest expense | 3,445 |  |  | 753 |
Operating Income | 17,038 |  |  | 17,577 |
Depreciation and amortization | 9,232 |  |  | 6,789 |
General and administrative | 24,377 |  |  | 17,380 |
Less: |  |  |
Net asset optimization (expenses) revenues | (194 | ) |  | 527 |
Net, Losses on non-trading derivative instruments | (21,037 | ) |  | (9,620 | )
Net, Cash settlements on non-trading derivative instruments | 7,574 |  |  | 11,277 |
Retail Gross Margin | $ | 64,304 |  |  | $ | 39,562 |
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 March 31, 2017 | Retail Electricity |  | Retail Natural Gas |  | Corporate and Other |  | Eliminations |  | Spark Retail
Total Revenues | $ | 131,733 |  |  | $ | 62,612 |  |  | $ | — |  |  | $ | — |  |  | $ | 194,345 |
Retail cost of revenues | 106,780 |  |  | 36,918 |  |  | — |  |  | — |  |  | 143,698 |
Less: |  |  |  |  |  |  |  |  |
Net asset optimization expenses | — |  |  | (194 | ) |  | — |  |  | — |  |  | (194 | )
Losses on non-trading derivatives | (19,287 | ) |  | (1,750 | ) |  | — |  |  | — |  |  | (21,037 | )
Current period settlements on non-trading derivatives | 7,764 |  |  | (190 | ) |  | — |  |  | — |  |  | 7,574 |
Retail Gross Margin | $ | 36,476 |  |  | $ | 27,828 |  |  | $ | — |  |  | $ | — |  |  | $ | 64,304 |
Total Assets at March 31, 2017 | $ | 666,742 |  |  | $ | 272,045 |  |  | $ | 163,806 |  |  | $ | (736,776 | ) |  | $ | 365,817 |
Goodwill at March 31, 2017 | $ | 76,877 |  |  | $ | 2,530 |  |  | $ | — |  |  | $ | — |  |  | $ | 79,407 |
Three Months Ended March 31, 2016 | Retail Electricity |  | Retail Natural Gas |  | Corporate and Other |  | Eliminations |  | Spark Retail
Total revenues | $ | 61,933 |  |  | $ | 48,613 |  |  | $ | — |  |  | $ | — |  |  | $ | 110,546 |
Retail cost of revenues | 46,300 |  |  | 22,500 |  |  | — |  |  | — |  |  | 68,800 |
Less: |  |  |  |  |  |  |  |  |
Net asset optimization revenues | — |  |  | 527 |  |  | — |  |  | — |  |  | 527 |
Losses on non-trading derivatives | (9,390 | ) |  | (230 | ) |  | — |  |  | — |  |  | (9,620 | )
Current period settlements on non-trading derivatives | 9,617 |  |  | 1,660 |  |  | — |  |  | — |  |  | 11,277 |
Retail Gross Margin | $ | 15,406 |  |  | $ | 24,156 |  |  | $ | — |  |  | $ | — |  |  | $ | 39,562 |
Total Assets at December 31, 2016 | $ | 577,695 |  |  | $ | 242,739 |  |  | $ | 169,404 |  |  | $ | (613,670 | ) |  | $ | 376,168 |
Goodwill at December 31, 2016 | $ | 76,617 |  |  | $ | 2,530 |  |  | $ | — |  |  | $ | — |  |  | $ | 79,147 |
Three Months Ended March 31, 2017 | Retail Electricity |  | Retail Natural Gas |  | Corporate and Other |  | Eliminations |  | Spark Retail
Total revenues |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Retail cost of revenues |  |  |  | — |  |  | — |  |  | — |  |  |  |
Less: |  |  |  |  |  |  |  |  |
Net asset optimization expenses | — |  |  | — |  |  | — |  |  | — |  |  |  |
(Losses) gains on non-trading derivatives |  |  |  | 2,519 |  |  | — |  |  | — |  |  | 2,519 |
Current period settlements on non-trading derivatives |  |  |  | 3,341 |  |  | — |  |  | — |  |  | 3,341 |
Retail Gross Margin | $ | — |  |  | $ | (5,860 | ) |  | $ | — |  |  | $ | — |  |  | $ | (5,860 | )
Total Assets at March 31, 2017 | $ | 666,742 |  |  | $ | 272,045 |  |  | $ | 163,806 |  |  | $ | (736,776 | ) |  | $ | 365,817 |
Goodwill at March 31, 2017 | $ | 76,877 |  |  | $ | 2,530 |  |  | $ | — |  |  | $ | — |  |  | $ | 79,407 |
Three Months Ended March 31, 2016 | Retail Electricity |  | Retail Natural Gas |  | Corporate and Other |  | Eliminations |  | Spark Retail
Total revenues |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Retail cost of revenues |  |  |  | — |  |  | — |  |  | — |  |  |  |
Less: |  |  |  |  |  |  |  |  |
Net asset optimization revenues | — |  |  | — |  |  | — |  |  | — |  |  |  |
(Losses) gains on non-trading derivatives |  |  |  | (5,876 | ) |  | — |  |  | — |  |  | (5,876 | )
Current period settlements on non-trading derivatives |  |  |  | 12,643 |  |  | — |  |  | — |  |  | 12,643 |
Retail Gross Margin | $ | — |  |  | $ | (6,767 | ) |  | $ | — |  |  | $ | — |  |  | $ | (6,767 | )
Total Assets at December 31, 2016 |  |  |  |  | $ | 376,168 |  |  |  |  |  |  |  |  |  |  | $ | 376,168 |
Goodwill at December 31, 2016 |  |  |  |  | $ | 79,147 |  |  | $ | — |  |  | $ | — |  |  | $ | 79,147 |

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- 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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&loc=d3e8906-108599 + Details
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