| Segment and Significant Customer Information |
| | | Segment and Significant Customer 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, at December 31, 2014, our reportable segments were West (including geothermal), Texas and East (including Canada). We continue to evaluate the optimal manner in which we assess our performance including our segments and future changes may result. Commodity Margin is a key operational measure reviewed by our chief operating decision maker to assess the performance of our segments. The tables below show our financial data for our segments for the periods indicated (in millions). | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2014 | | West | | Texas | | East | | Consolidation and Elimination | | Total | Revenues from external customers | $ | 2,352 |
| | $ | 3,229 |
| | $ | 2,449 |
| | $ | — |
| | $ | 8,030 |
| Intersegment revenues | 6 |
| | 23 |
| | 47 |
| | (76 | ) | | — |
| Total operating revenues | $ | 2,358 |
| | $ | 3,252 |
| | $ | 2,496 |
| | $ | (76 | ) | | $ | 8,030 |
| Commodity Margin(1) | $ | 1,050 |
| | $ | 760 |
| | $ | 949 |
| | $ | — |
| | $ | 2,759 |
| Add: Mark-to-market commodity activity, net and other(2) | 220 |
| | 142 |
| | 48 |
| | (31 | ) | | 379 |
| Less: | | | | | | | | | | Plant operating expense | 385 |
| | 313 |
| | 302 |
| | (31 | ) | | 969 |
| Depreciation and amortization expense | 245 |
| | 191 |
| | 168 |
| | (1 | ) | | 603 |
| Sales, general and other administrative expense | 41 |
| | 64 |
| | 39 |
| | — |
| | 144 |
| Other operating expenses | 50 |
| | 5 |
| | 32 |
| | 1 |
| | 88 |
| Impairment loss | — |
| | — |
| | 123 |
| | — |
| | 123 |
| (Gain) on sale of assets, net | — |
| | — |
| | (753 | ) | | — |
| | (753 | ) | (Income) from unconsolidated investments in power plants | — |
| | — |
| | (25 | ) | | — |
| | (25 | ) | Income from operations | 549 |
| | 329 |
| | 1,111 |
| | — |
| | 1,989 |
| Interest expense, net of interest income | | | | | | | | | 639 |
| Debt extinguishment costs and other (income) expense, net | | | | | | | | | 367 |
| Income before income taxes | | | | | | | | | $ | 983 |
|
| | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2013 | | West | | Texas | | East | | Consolidation and Elimination | | Total | Revenues from external customers | $ | 1,937 |
| | $ | 2,347 |
| | $ | 2,017 |
| | $ | — |
| | $ | 6,301 |
| Intersegment revenues | 5 |
| | (4 | ) | | 117 |
| | (118 | ) | | — |
| Total operating revenues | $ | 1,942 |
| | $ | 2,343 |
| | $ | 2,134 |
| | $ | (118 | ) | | $ | 6,301 |
| Commodity Margin(1) | $ | 1,020 |
| | $ | 632 |
| | $ | 916 |
| | $ | — |
| | $ | 2,568 |
| Add: Mark-to-market commodity activity, net and other(2) | (50 | ) | | 51 |
| | 27 |
| | (31 | ) | | (3 | ) | Less: | | | | | | | | | | Plant operating expense | 365 |
| | 269 |
| | 292 |
| | (31 | ) | | 895 |
| Depreciation and amortization expense | 227 |
| | 165 |
| | 203 |
| | (2 | ) | | 593 |
| Sales, general and other administrative expense | 37 |
| | 56 |
| | 42 |
| | 1 |
| | 136 |
| Other operating expenses | 45 |
| | 3 |
| | 33 |
| | — |
| | 81 |
| Impairment loss | 16 |
| | — |
| | — |
| | — |
| | 16 |
| (Income) from unconsolidated investments in power plants | — |
| | — |
| | (30 | ) | | — |
| | (30 | ) | Income from operations | 280 |
| | 190 |
| | 403 |
| | 1 |
| | 874 |
| Interest expense, net of interest income | | | | | | | | | 690 |
| Debt extinguishment costs and other (income) expense, net | | | | | | | | | 164 |
| Income before income taxes | | | | | | | | | $ | 20 |
|
| | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2012 | | West | | Texas | | East | | Consolidation and Elimination | | Total | Revenues from external customers | $ | 1,668 |
| | $ | 1,857 |
| | $ | 1,953 |
| | $ | — |
| | $ | 5,478 |
| Intersegment revenues | 10 |
| | 61 |
| | 38 |
| | (109 | ) | | — |
| Total operating revenues | $ | 1,678 |
| | $ | 1,918 |
| | $ | 1,991 |
| | $ | (109 | ) | | $ | 5,478 |
| Commodity Margin(1)(3)(4) | $ | 994 |
| | $ | 570 |
| | $ | 974 |
| | $ | — |
| | $ | 2,538 |
| Add: Mark-to-market commodity activity, net and other(2) | (93 | ) | | 87 |
| | (47 | ) | | (31 | ) | | (84 | ) | Less: | | | | | | | | | | Plant operating expense | 368 |
| | 247 |
| | 337 |
| | (30 | ) | | 922 |
| Depreciation and amortization expense | 203 |
| | 142 |
| | 219 |
| | (2 | ) | | 562 |
| Sales, general and other administrative expense | 36 |
| | 47 |
| | 57 |
| | — |
| | 140 |
| Other operating expenses | 42 |
| | 5 |
| | 34 |
| | (3 | ) | | 78 |
| (Gain) on sale of assets, net | — |
| | — |
| | (222 | ) | | — |
| | (222 | ) | (Income) from unconsolidated investments in power plants | — |
| | — |
| | (28 | ) | | — |
| | (28 | ) | Income from operations | 252 |
| | 216 |
| | 530 |
| | 4 |
| | 1,002 |
| Interest expense, net of interest income | | | | | | | | | 725 |
| Loss on interest rate derivatives | | | | | | | | | 14 |
| Debt extinguishment costs and other (income) expense, net | | | | | | | | | 45 |
| Loss before income taxes | | | | | | | | | $ | 218 |
|
__________ | | (1) | Our East segment includes Commodity Margin of $81 million, $152 million and $131 million for the years ended December 31, 2014, 2013 and 2012, respectively, related to the six power plants in our East segment that were sold in July 2014. |
| | (2) | Includes $(5) million, $6 million and $1 million of lease levelization and $14 million, $14 million and $14 million of amortization expense for the years ended December 31, 2014, 2013 and 2012, respectively. |
| | (3) | Our East segment includes Commodity Margin of $52 million for the year ended December 31, 2012, related to Broad River, which was sold in December 2012. |
| | (4) | Our East segment includes Commodity Margin of $73 million for the year ended December 31, 2012, related to Riverside Energy Center, LLC, which was sold in December 2012. |
Significant Customers For the years ended December 31, 2014 and 2012, we had only one significant customer, PJM Settlement, Inc. that individually accounted for more than 10% of our annual consolidated revenues. For the year ended December 31, 2013, we had two significant customers, PJM Settlement, Inc. and PG&E, that individually accounted for more than 10% of our annual consolidated revenues. Our revenues from PJM Settlement, Inc. for the years ended December 31, 2014, 2013 and 2012 were approximately $1.0 billion, $820 million and $713 million respectively, and were attributed to our East segment. Our revenues from PG&E was approximately $694 million for the year ended December 31, 2013, which was attributed to our West segment. |