v2.4.0.8
Segment Information
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
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. During the third quarter of 2014, we altered the composition of our geographic segments to combine our former North and Southeast segments into one segment which was renamed the East segment. This change reflects the manner in which our geographic information is presented internally to our chief operating decision maker following the sale of six power plants in July 2014 from what was formerly our Southeast segment. Thus, beginning in the third quarter of 2014, our reportable segments are West (including geothermal), Texas and East (including North, Southeast and Canada). Our segment data below has been revised to present our segments on this revised basis for all periods.
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 nine months ended September 30, 2014; however, segment amounts previously reported for the three and nine months ended September 30, 2013 were adjusted by immaterial amounts. Our segment data for the three and nine months ended September 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 September 30, 2014
 
West
 
Texas
 
East
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
714

 
$
985

 
$
488

 
$
—

 
$
2,187

Intersegment revenues
1

 
4

 
2

 
(7
)
 
—

Total operating revenues
$
715

 
$
989

 
$
490

 
$
(7
)
 
$
2,187

Commodity Margin(1)
$
361

 
$
346

 
$
237

 
$
—

 
$
944

Add: Mark-to-market commodity activity, net and other(2)
41

 
(64
)
 
4

 
(6
)
 
(25
)
Less:
 
 
 
 
 
 
 
 
 
Plant operating expense
91

 
77

 
55

 
(8
)
 
215

Depreciation and amortization expense
65

 
51

 
38

 
(1
)
 
153

Sales, general and other administrative expense
11

 
18

 
8

 
—

 
37

Other operating expenses
12

 
1

 
6

 
4

 
23

Impairment losses
—

 
—

 
123

 
—

 
123

(Gain) on sale of assets, net
—

 
—

 
(753
)
 
—

 
(753
)
(Income) from unconsolidated investments in power plants
—

 
—

 
(5
)
 
—

 
(5
)
Income from operations
223

 
135

 
769

 
(1
)
 
1,126

Interest expense, net of interest income
 
 
 
 
 
 
 
 
154

Debt extinguishment costs and other (income) expense, net
 
 
 
 
 
 
 
 
344

Income before income taxes
 
 
 
 
 
 
 
 
$
628

 
Three Months Ended September 30, 2013
 
West
 
Texas
 
East
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
620

 
$
842

 
$
588

 
$
—

 
$
2,050

Intersegment revenues
1

 
(6
)
 
43

 
(38
)
 
—

Total operating revenues
$
621

 
$
836

 
$
631

 
$
(38
)
 
$
2,050

Commodity Margin(1)
$
337

 
$
328

 
$
320

 
$
—

 
$
985

Add: Mark-to-market commodity activity, net and other(2)
16

 
(5
)
 
3

 
(8
)
 
6

Less:
 
 
 
 
 
 
 
 
 
Plant operating expense
84

 
56

 
67

 
(7
)
 
200

Depreciation and amortization expense
58

 
41

 
51

 
—

 
150

Sales, general and other administrative expense
9

 
13

 
10

 
1

 
33

Other operating expenses
12

 
2

 
9

 
(3
)
 
20

(Income) from unconsolidated investments in power plants
—

 
—

 
(9
)
 
—

 
(9
)
Income from operations
190

 
211

 
195

 
1

 
597

Interest expense, net of interest income
 
 
 
 
 
 
 
 
174

Other (income) expense, net
 
 
 
 
 
 
 
 
7

Income before income taxes
 
 
 
 
 
 
 
 
$
416





 
Nine Months Ended September 30, 2014
 
West
 
Texas
 
East
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
1,692

 
$
2,592

 
$
1,807

 
$
—

 
$
6,091

Intersegment revenues
4

 
19

 
46

 
(69
)
 
—

Total operating revenues
$
1,696

 
$
2,611

 
$
1,853

 
$
(69
)
 
$
6,091

Commodity Margin(3)
$
791

 
$
644

 
$
786

 
$
—

 
$
2,221

Add: Mark-to-market commodity activity, net and other(4)
91

 
74

 
(31
)
 
(23
)
 
111

Less:
 
 
 
 
 
 
 
 
 
Plant operating expense
291

 
250

 
237

 
(24
)
 
754

Depreciation and amortization expense
183

 
141

 
129

 
—

 
453

Sales, general and other administrative expense
28

 
48

 
32

 
—

 
108

Other operating expenses
39

 
4

 
22

 
1

 
66

Impairment losses
—

 
—

 
123

 
—

 
123

(Gain) on sale of assets, net
—

 
—

 
(753
)
 
—

 
(753
)
(Income) from unconsolidated investments in power plants
—

 
—

 
(18
)
 
—

 
(18
)
Income from operations
341

 
275

 
983

 
—

 
1,599

Interest expense, net of interest income
 
 
 
 
 
 
 
 
486

 Debt extinguishment costs and other (income) expense, net
 
 
 
 
 
 
 
 
361

Income before income taxes
 
 
 
 
 
 
 
 
$
752

 
Nine Months Ended September 30, 2013
 
West
 
Texas
 
East
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
1,482

 
$
1,820

 
$
1,561

 
$
—

 
$
4,863

Intersegment revenues
2

 
(24
)
 
101

 
(79
)
 
—

Total operating revenues
$
1,484

 
$
1,796

 
$
1,662

 
$
(79
)
 
$
4,863

Commodity Margin(3)
$
737

 
$
537

 
$
705

 
$
—

 
$
1,979

Add: Mark-to-market commodity activity, net and other(4)
(2
)
 
18

 
12

 
(24
)
 
4

Less:
 
 
 
 
 
 
 
 
 
Plant operating expense
271

 
214

 
221

 
(22
)
 
684

Depreciation and amortization expense
164

 
125

 
153

 
(1
)
 
441

Sales, general and other administrative expense
24

 
43

 
34

 
1

 
102

Other operating expenses
33

 
4

 
25

 
(4
)
 
58

(Income) from unconsolidated investments in power plants
—

 
—

 
(25
)
 
—

 
(25
)
Income from operations
243


169


309


2

 
723

Interest expense, net of interest income
 
 
 
 
 
 
 
 
517

 Debt extinguishment costs and other (income) expense, net
 
 
 
 
 
 
 
 
83

Income before income taxes
 
 
 
 
 
 
 
 
$
123

_________
(1)
Commodity Margin related to the six power plants sold in our East segment on July 3, 2014, was not significant for the three months ended September 30, 2014. Commodity Margin related to these plants was $65 million for the three months ended September 30, 2013.
(2)
Includes $49 million and $44 million of lease levelization and $4 million and $4 million of amortization expense for the three months ended September 30, 2014 and 2013, respectively.
(3)
Our East segment includes Commodity Margin of $81 million and $122 million for the nine months ended September 30, 2014 and 2013, respectively, related to the six power plants in our East segment that were sold in July 2014.
(4)
Includes $(7) million and $17 million of lease levelization and $11 million and $11 million of amortization expense for the nine months ended September 30, 2014 and 2013, respectively.