v3.2.0.727
Segment Information
 6 Months Ended
Jun. 30, 2015
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 that composed a substantial portion of our former Southeast segment. Thus, beginning in the third quarter of 2014, our reportable segments were West (including geothermal), Texas and East (including Canada). We continue to evaluate the manner in which we assess our performance, including our segments, which may result in future changes to the composition of our geographic segments.
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).
 
Three Months Ended June 30, 2015
 
West
 
Texas
 
East
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
421

 
$
570

 
$
451

 
$
—

 
$
1,442

Intersegment revenues
—

 
5

 
2

 
(7
)
 
—

Total operating revenues
$
421

 
$
575

 
$
453

 
$
(7
)
 
$
1,442

Commodity Margin
$
240

 
$
170

 
$
247

 
$
—

 
$
657

Add: Mark-to-market commodity activity, net and other(1)
(14
)
 
10

 
30

 
(7
)
 
19

Less:
 
 
 
 
 
 
 
 
 
Plant operating expense
120

 
82

 
77

 
(7
)
 
272

Depreciation and amortization expense
65

 
50

 
45

 
—

 
160

Sales, general and other administrative expense
6

 
15

 
9

 
—

 
30

Other operating expenses
10

 
2

 
8

 
—

 
20

(Income) from unconsolidated investments in power plants
—

 
—

 
(7
)
 
—

 
(7
)
Income from operations
25

 
31

 
145

 
—

 
201

Interest expense, net of interest income
 
 
 
 
 
 
 
 
157

 Debt modification costs and other (income) expense, net
 
 
 
 
 
 
 
 
18

Income before income taxes
 
 
 
 
 
 
 
 
$
26


 
Three Months Ended June 30, 2014
 
West
 
Texas
 
East
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
487

 
$
960

 
$
492

 
$
—

 
$
1,939

Intersegment revenues
1

 
3

 
27

 
(31
)
 
—

Total operating revenues
$
488

 
$
963

 
$
519

 
$
(31
)
 
$
1,939

Commodity Margin(2)
$
228

 
$
177

 
$
227

 
$
—

 
$
632

Add: Mark-to-market commodity activity, net and other(1)
21

 
184

 
(24
)
 
(8
)
 
173

Less:
 
 
 
 
 
 
 
 
 
Plant operating expense
95

 
83

 
103

 
(7
)
 
274

Depreciation and amortization expense
58

 
48

 
40

 
1

 
147

Sales, general and other administrative expense
7

 
18

 
12

 
1

 
38

Other operating expenses
15

 
1

 
9

 
(4
)
 
21

(Income) from unconsolidated investments in power plants
—

 
—

 
(4
)
 
—

 
(4
)
Income from operations
74

 
211

 
43

 
1

 
329

Interest expense, net of interest income
 
 
 
 
 
 
 
 
167

 Other (income) expense, net
 
 
 
 
 
 
 
 
6

Income before income taxes
 
 
 
 
 
 
 
 
$
156




 
Six Months Ended June 30, 2015
 
West
 
Texas
 
East
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
936

 
$
1,151

 
$
1,001

 
$
—

 
$
3,088

Intersegment revenues
2

 
8

 
4

 
(14
)
 
—

Total operating revenues
$
938

 
$
1,159

 
$
1,005

 
$
(14
)
 
$
3,088

Commodity Margin
$
458

 
$
319

 
$
415

 
$
—

 
$
1,192

Add: Mark-to-market commodity activity, net and other(3)
105

 
51

 
(22
)
 
(14
)
 
120

Less:
 
 
 
 
 
 
 
 
 
Plant operating expense
226

 
171

 
149

 
(14
)
 
532

Depreciation and amortization expense
132

 
99

 
87

 
—

 
318

Sales, general and other administrative expense
16

 
32

 
19

 
—

 
67

Other operating expenses
20

 
4

 
16

 
—

 
40

(Income) from unconsolidated investments in power plants
—

 
—

 
(12
)
 
—

 
(12
)
Income from operations
169

 
64

 
134

 
—

 
367

Interest expense, net of interest income
 
 
 
 
 
 
 
 
310

 Debt modification and extinguishment costs and other (income) expense, net
 
 
 
 
 
 
 
 
39

Income before income taxes
 
 
 
 
 
 
 
 
$
18


 
Six Months Ended June 30, 2014
 
West
 
Texas
 
East
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
978

 
$
1,607

 
$
1,319

 
$
—

 
$
3,904

Intersegment revenues
3

 
15

 
44

 
(62
)
 
—

Total operating revenues
$
981

 
$
1,622

 
$
1,363

 
$
(62
)
 
$
3,904

Commodity Margin(2)
$
430

 
$
298

 
$
549

 
$
—

 
$
1,277

Add: Mark-to-market commodity activity, net and other(3)
50

 
138

 
(35
)
 
(17
)
 
136

Less:
 
 
 
 
 
 
 
 
 
Plant operating expense
200

 
173

 
182

 
(16
)
 
539

Depreciation and amortization expense
118

 
90

 
91

 
1

 
300

Sales, general and other administrative expense
17

 
30

 
24

 
—

 
71

Other operating expenses
27

 
3

 
16

 
(3
)
 
43

(Income) from unconsolidated investments in power plants
—

 
—

 
(13
)
 
—

 
(13
)
Income from operations
118


140


214


1

 
473

Interest expense, net of interest income
 
 
 
 
 
 
 
 
332

 Debt extinguishment costs and other (income) expense, net
 
 
 
 
 
 
 
 
17

Income before income taxes
 
 
 
 
 
 
 
 
$
124

_________
(1)
Includes $(18) million and $(27) million of lease levelization and $3 million and $3 million of amortization expense for the three months ended June 30, 2015 and 2014, respectively.
(2)
Commodity Margin related to the six power plants sold in our East segment on July 3, 2014, was $42 million and $81 million for the three and six months ended June 30, 2014, respectively.
(3)
Includes $(42) million and $(56) million of lease levelization and $7 million and $7 million of amortization expense for the six months ended June 30, 2015 and 2014, respectively.