| Segment Information |
Segment Information We assess our business on a regional basis due to the impact on our financial performance of the differing characteristics of these regions, particularly with respect to competition, regulation and other factors impacting supply and demand. At June 30, 2014, our reportable segments were West (including geothermal), Texas, North (including Canada) and Southeast. On July 3, 2014, we announced the closing of the sale of six power plants in our Southeast segment. Accordingly, during the third quarter of 2014, we plan to reflect the results of operations of the remaining four power plants in our Southeast segment, along with the historical results of the six power plants that were sold, in our North segment and change the name of this geographic segment to “East”. Thus, beginning in the third quarter of 2014, our reportable segments will be West (including geothermal), Texas and East (including North, Southeast and Canada). These changes will be made in conjunction with the manner in which our geographic information will be presented internally to our chief operating decision maker. Commodity Margin is a key operational measure reviewed by our chief operating decision maker to assess the performance of our segments. During the fourth quarter of 2013, we changed the methodology previously used during 2013 for allocating corporate expenses to our segments. This change had no impact on our Consolidated Condensed Statements of Operations for the three and six months ended June 30, 2014; however, segment amounts previously reported for the three and six months ended June 30, 2013 were adjusted by immaterial amounts. Our segment data for the three and six months ended June 30, 2013 have been recast to reflect these changes. The tables below show our financial data for our segments for the periods indicated (in millions). | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2014 | | West | | Texas | | North | | Southeast | | Consolidation
and
Elimination | | Total | Revenues from external customers | $ | 487 |
| | $ | 960 |
| | $ | 332 |
| | $ | 160 |
| | $ | — |
| | $ | 1,939 |
| Intersegment revenues | 1 |
| | 3 |
| | 12 |
| | 57 |
| | (73 | ) | | — |
| Total operating revenues | $ | 488 |
| | $ | 963 |
| | $ | 344 |
| | $ | 217 |
| | $ | (73 | ) | | $ | 1,939 |
| Commodity Margin(1) | $ | 228 |
| | $ | 177 |
| | $ | 175 |
| | $ | 52 |
| | $ | — |
| | $ | 632 |
| Add: Mark-to-market commodity activity, net and other(2) | 21 |
| | 184 |
| | (23 | ) | | (1 | ) | | (8 | ) | | 173 |
| Less: | | | | | | | | | | | | Plant operating expense | 95 |
| | 83 |
| | 65 |
| | 38 |
| | (7 | ) | | 274 |
| Depreciation and amortization expense | 58 |
| | 48 |
| | 32 |
| | 8 |
| | 1 |
| | 147 |
| Sales, general and other administrative expense | 7 |
| | 18 |
| | 6 |
| | 6 |
| | 1 |
| | 38 |
| Other operating expenses | 15 |
| | 1 |
| | 8 |
| | 1 |
| | (4 | ) | | 21 |
| (Income) from unconsolidated investments in power plants | — |
| | — |
| | (4 | ) | | — |
| | — |
| | (4 | ) | Income (loss) from operations | 74 |
| | 211 |
| | 45 |
| | (2 | ) | | 1 |
| | 329 |
| Interest expense, net of interest income | | | | | | | | | | | 167 |
| Other (income) expense, net | | | | | | | | | | | 6 |
| Income before income taxes | | | | | | | | | | | $ | 156 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2013 | | West | | Texas | | North | | Southeast | | Consolidation and Elimination | | Total | Revenues from external customers | $ | 479 |
| | $ | 571 |
| | $ | 348 |
| | $ | 174 |
| | $ | — |
| | $ | 1,572 |
| Intersegment revenues | — |
| | (25 | ) | | 8 |
| | 71 |
| | (54 | ) | | — |
| Total operating revenues | $ | 479 |
| | $ | 546 |
| | $ | 356 |
| | $ | 245 |
| | $ | (54 | ) | | $ | 1,572 |
| Commodity Margin(1) | $ | 198 |
| | $ | 133 |
| | $ | 159 |
| | $ | 43 |
| | $ | — |
| | $ | 533 |
| Add: Mark-to-market commodity activity, net and other(2) | 19 |
| | 34 |
| | (12 | ) | | 7 |
| | (9 | ) | | 39 |
| Less: | | | | | | | | | | | | Plant operating expense | 92 |
| | 93 |
| | 46 |
| | 34 |
| | (8 | ) | | 257 |
| Depreciation and amortization expense | 53 |
| | 42 |
| | 32 |
| | 18 |
| | — |
| | 145 |
| Sales, general and other administrative expense | 8 |
| | 16 |
| | 6 |
| | 6 |
| | — |
| | 36 |
| Other operating expenses | 12 |
| | 1 |
| | 7 |
| | 1 |
| | (1 | ) | | 20 |
| (Income) from unconsolidated investments in power plants | — |
| | — |
| | (8 | ) | | — |
| | — |
| | (8 | ) | Income (loss) from operations | 52 |
| | 15 |
| | 64 |
| | (9 | ) | | — |
| | 122 |
| Interest expense, net of interest income | | | | | | | | | | | 169 |
| Debt extinguishment costs and other (income) expense, net | | | | | | | | | | | 71 |
| Loss before income taxes | | | | | | | | | | | $ | (118 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2014 | | West | | Texas | | North | | Southeast | | Consolidation and Elimination | | Total | Revenues from external customers | $ | 978 |
| | $ | 1,607 |
| | $ | 971 |
| | $ | 348 |
| | $ | — |
| | $ | 3,904 |
| Intersegment revenues | 3 |
| | 15 |
| | 27 |
| | 138 |
| | (183 | ) | | — |
| Total operating revenues | $ | 981 |
| | $ | 1,622 |
| | $ | 998 |
| | $ | 486 |
| | $ | (183 | ) | | $ | 3,904 |
| Commodity Margin(3) | $ | 430 |
| | $ | 298 |
| | $ | 442 |
| | $ | 107 |
| | $ | — |
| | $ | 1,277 |
| Add: Mark-to-market commodity activity, net and other(4) | 50 |
| | 138 |
| | (40 | ) | | 5 |
| | (17 | ) | | 136 |
| Less: | | | | | | | | | | | | Plant operating expense | 200 |
| | 173 |
| | 117 |
| | 65 |
| | (16 | ) | | 539 |
| Depreciation and amortization expense | 118 |
| | 90 |
| | 65 |
| | 26 |
| | 1 |
| | 300 |
| Sales, general and other administrative expense | 17 |
| | 30 |
| | 12 |
| | 12 |
| | — |
| | 71 |
| Other operating expenses | 27 |
| | 3 |
| | 14 |
| | 2 |
| | (3 | ) | | 43 |
| (Income) from unconsolidated investments in power plants | — |
| | — |
| | (13 | ) | | — |
| | — |
| | (13 | ) | Income from operations | 118 |
| | 140 |
| | 207 |
| | 7 |
| | 1 |
| | 473 |
| Interest expense, net of interest income | | | | | | | | | | | 332 |
| Debt extinguishment costs and other (income) expense, net | | | | | | | | | | | 17 |
| Income before income taxes | | | | | | | | | | | $ | 124 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2013 | | West | | Texas | | North | | Southeast | | Consolidation and Elimination | | Total | Revenues from external customers | $ | 862 |
| | $ | 978 |
| | $ | 654 |
| | $ | 319 |
| | $ | — |
| | $ | 2,813 |
| Intersegment revenues | 1 |
| | (18 | ) | | 15 |
| | 104 |
| | (102 | ) | | — |
| Total operating revenues | $ | 863 |
| | $ | 960 |
| | $ | 669 |
| | $ | 423 |
| | $ | (102 | ) | | $ | 2,813 |
| Commodity Margin(3) | $ | 400 |
| | $ | 209 |
| | $ | 301 |
| | $ | 84 |
| | $ | — |
| | $ | 994 |
| Add: Mark-to-market commodity activity, net and other(4) | (18 | ) | | 23 |
| | (5 | ) | | 14 |
| | (16 | ) | | (2 | ) | Less: | | | | | | | | | | | | Plant operating expense | 187 |
| | 158 |
| | 89 |
| | 65 |
| | (15 | ) | | 484 |
| Depreciation and amortization expense | 106 |
| | 84 |
| | 65 |
| | 37 |
| | (1 | ) | | 291 |
| Sales, general and other administrative expense | 15 |
| | 30 |
| | 12 |
| | 12 |
| | — |
| | 69 |
| Other operating expenses | 21 |
| | 2 |
| | 14 |
| | 2 |
| | (1 | ) | | 38 |
| (Income) from unconsolidated investments in power plants | — |
| | — |
| | (16 | ) | | — |
| | — |
| | (16 | ) | Income (loss) from operations | 53 |
|
| (42 | ) |
| 132 |
|
| (18 | ) |
| 1 |
| | 126 |
| Interest expense, net of interest income | | | | | | | | | | | 343 |
| Debt extinguishment costs and other (income) expense, net | | | | | | | | | | | 76 |
| Loss before income taxes | | | | | | | | | | | $ | (293 | ) |
_________ | | (1) | Our Southeast segment includes Commodity Margin of $42 million and $32 million for the three months ended June 30, 2014 and 2013, respectively, related to the six power plants in our Southeast segment that were sold in July 2014. |
| | (2) | Includes $(27) million and $(11) million of lease levelization and $3 million and $3 million of amortization expense for the three months ended June 30, 2014 and 2013, respectively. |
| | (3) | Our Southeast segment includes Commodity Margin of $81 million and $57 million for the six months ended June 30, 2014 and 2013, respectively, related to the six power plants in our Southeast segment that were sold in July 2014. |
| | (4) | Includes $(56) million and $(27) million of lease levelization and $7 million and $7 million of amortization expense for the six months ended June 30, 2014 and 2013, respectively. |
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