v3.3.0.814
Segment Information
 9 Months Ended
Sep. 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. At September 30, 2015, 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 September 30, 2015
 
West
 
Texas
 
East
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
736

 
$
709

 
$
503

 
$
—

 
$
1,948

Intersegment revenues
1

 
4

 
3

 
(8
)
 
—

Total operating revenues
$
737

 
$
713

 
$
506

 
$
(8
)
 
$
1,948

Commodity Margin
$
385

 
$
264

 
$
325

 
$
—

 
$
974

Add: Mark-to-market commodity activity, net and other(1)
68

 
(98
)
 
(62
)
 
(7
)
 
(99
)
Less:
 
 
 
 
 
 
 
 
 
Plant operating expense
87

 
62

 
57

 
(6
)
 
200

Depreciation and amortization expense
61

 
58

 
48

 
(1
)
 
166

Sales, general and other administrative expense
7

 
15

 
10

 
1

 
33

Other operating expenses
8

 
2

 
8

 
(2
)
 
16

(Income) from unconsolidated investments in power plants
—

 
—

 
(6
)
 
—

 
(6
)
Income from operations
290

 
29

 
146

 
1

 
466

Interest expense, net of interest income
 
 
 
 
 
 
 
 
158

Other (income) expense, net
 
 
 
 
 
 
 
 
1

Income before income taxes
 
 
 
 
 
 
 
 
$
307


 
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(2)
$
361

 
$
346

 
$
237

 
$
—

 
$
944

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

 
Nine Months Ended September 30, 2015
 
West
 
Texas
 
East
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
1,672

 
$
1,860

 
$
1,504

 
$
—

 
$
5,036

Intersegment revenues
3

 
12

 
7

 
(22
)
 
—

Total operating revenues
$
1,675

 
$
1,872

 
$
1,511

 
$
(22
)
 
$
5,036

Commodity Margin
$
843

 
$
583

 
$
740

 
$
—

 
$
2,166

Add: Mark-to-market commodity activity, net and other(3)
173

 
(47
)
 
(84
)
 
(21
)
 
21

Less:
 
 
 
 
 
 
 
 
 
Plant operating expense
313

 
233

 
206

 
(20
)
 
732

Depreciation and amortization expense
193

 
157

 
135

 
(1
)
 
484

Sales, general and other administrative expense
23

 
47

 
29

 
1

 
100

Other operating expenses
28

 
6

 
24

 
(2
)
 
56

(Income) from unconsolidated investments in power plants
—

 
—

 
(18
)
 
—

 
(18
)
Income from operations
459

 
93

 
280

 
1

 
833

Interest expense, net of interest income
 
 
 
 
 
 
 
 
468

Debt modification and extinguishment costs and other (income) expense, net
 
 
 
 
 
 
 
 
40

Income before income taxes
 
 
 
 
 
 
 
 
$
325


 
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(2)
$
791

 
$
644

 
$
786

 
$
—

 
$
2,221

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

_________
(1)
Includes $41 million and $49 million of lease levelization and $4 million and $4 million of amortization expense for the three months ended September 30, 2015 and 2014, respectively.
(2)
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. The Commodity Margin related to those power plants was $81 million for the nine months ended September 30, 2014.
(3)
Includes $(1) million and $(7) million of lease levelization and $11 million and $11 million of amortization expense for the nine months ended September 30, 2015 and 2014, respectively.