Note 4.- Financial information by segment

Atlantica Yield’s segment structure reflects how management currently makes financial decisions and allocates resources. Its operating and reportable segments are based on the following geographies where the contracted concessional assets are located:

North America

South America

EMEA

Based on the type of business, as of December 31, 2017 the Company had the following business sectors:

Renewable energy: Renewable energy assets include two solar plants in the United States, Solana and Mojave, each with a gross capacity of 280 MW and located in Arizona and California, respectively. The Company owns eight solar platforms in Spain: Solacor 1 and 2 with a gross capacity of 100 MW, PS10 and PS20 with a gross capacity of 31 MW, Solaben 2 and 3 with a gross capacity of 100 MW, Helioenergy 1 and 2 with a gross capacity of 100 MW, Helios 1 and 2 with a gross capacity of 100 MW, Solnova 1, 3 and 4 with a gross capacity of 150 MW, Solaben 1 and 6 with a gross capacity of 100 MW and Seville PV with a gross capacity of 1 MW. The Company also owns a solar plant in South Africa, Kaxu with a gross capacity of 100 MW. Additionally, the Company owns two wind farms in Uruguay, Palmatir and Cadonal, with a gross capacity of 50 MW each.

Efficient natural gas: The Company´s sole efficient natural gas asset is ACT, a 300 MW cogeneration plant in Mexico, which is party to a 20-year take-or-pay contract with Pemex for the sale of electric power and steam.

Electric transmission lines: Electric transmission assets include (i) three lines in Peru, ATN, ATS and ATN2, spanning a total of 1,012 miles; and (ii) three lines in Chile, Quadra 1, Quadra 2 and Palmucho, spanning a total of 87 miles.

Water: Water assets include a minority interest in two desalination plants in Algeria, Honaine and Skikda with an aggregate capacity of 10.5 M ft³ per day.

Atlantica Yield’s Chief Operating Decision Maker (CODM) assesses the performance and assignment of resources according to the identified operating segments. The CODM considers the revenues as a measure of the business activity and the Further Adjusted EBITDA as a measure of the performance of each segment. Further Adjusted EBITDA is calculated as profit/(loss) for the period attributable to the parent company, after adding back loss/(profit) attributable to non-controlling interests from continued operations, income tax, share of profit/(loss) of associates carried under the equity method, finance expense net, depreciation, amortization and impairment charges of entities included in these consolidated financial statements, and dividends received from the preferred equity investment in ACBH. Further adjusted EBITDA for 2016 and 2017 includes compensation received from Abengoa in lieu of ACBH dividends.

In order to assess performance of the business, the CODM receives reports of each reportable segment using revenues and Further Adjusted EBITDA. Net interest expense evolution is assessed on a consolidated basis. Financial expense and amortization are not taken into consideration by the CODM for the allocation of resources.

In the years ended December 31, 2017 and December 31, 2016, Atlantica Yield had three customers with revenues representing more than 10% of the total revenues, i.e., two in the renewable energy and one in the efficient natural gas business sectors.

The following tables show Revenues and Further Adjusted EBITDA by operating segments and business sectors for the years 2017, 2016 and 2015:

	Revenue									Further Adjusted EBITDA
	For the year ended December 31,									For the year ended December 31,
Geography	2017			2016			2015			2017			2016			2015
North America		$	332,705		$	337,061		$	328,139		$	282,328		$	284,691		$	279,559
South America			120,797			118,764			112,480			108,766			124,599			110,905
EMEA			554,879			515,972			350,262			388,216			354,020			233,754
Total		$	1,008,381		$	971,797		$	790,881		$	779,310		$	763,310		$	624,218

	Revenue									Further Adjusted EBITDA
	For the year ended December 31,									For the year ended December 31,
Business sectors	2017			2016			2015			2017			2016			2015
Renewable energy		$	767,226		$	724,325		$	543,012		$	569,193		$	538,427		$	413,933
Efficient natural gas			119,784			128,046			138,717			106,140			106,492			107,671
Electric transmission lines			95,096			95,137			86,393			87,695			104,795			89,047
Water			26,275			24,288			22,759			16,282			13,596			13,567
Total		$	1,008,381		$	971,797		$	790,881		$	779,310		$	763,310		$	624,218

The reconciliation of segment Further Adjusted EBITDA with the profit/(loss) attributable to the parent company is as follows:

	For the year ended December 31,
	2017			2016			2015
Loss attributable to the Company	$	(111,804	)	$	(4,855	)	$	(209,005	)
Profit attributable to non-controlling interests		6,917			6,522			10,819
Income tax		119,837			1,666			23,790
Share of profits/(losses) of associates		(5,351	)		(6,646	)		(7,844	)
Dividend from exchangeable preferred equity investment in ACBH (Note 21)		10,383			27,948			18,400
Financial expense, net		448,368			405,750			526,758
Depreciation, amortization, and impairment charges		310,960			332,925			261,301
Total segment Further Adjusted EBITDA	$	779,310		$	763,310		$	624,219

The assets and liabilities by operating segments (and business sector) at the end of 2017 and 2016 are as follows:

Assets and liabilities by geography as of December 31, 2017:

	North America		South America		EMEA		Balance as of December 31, 2017
Assets allocated
Contracted concessional assets		3,770,169		1,100,778		4,213,323		9,084,270
Investments carried under the equity method		-		-		55,784		55,784
Current financial investments		116,451		59,831		31,263		207,545
Cash and cash equivalents (project companies)		149,236		42,548		329,078		520,862
Subtotal allocated		4,035,856		1,203,157		4,629,448		9,868,461
Unallocated assets
Other non-current assets								210,378
Other current assets (including cash and cash equivalents at holding company level)								413,500
Subtotal unallocated								623,878
Total assets								10,492,339

	North America		South America		EMEA		Balance as of December 31, 2017
Liabilities allocated
Long-term and short-term project debt		1,821,102		876,063		2,778,043		5,475,208
Grants and other liabilities		1,593,048		810		42,202		1,636,060
Subtotal allocated		3,414,150		876,873		2,820,245		7,111,268
Unallocated liabilities
Long-term and short-term corporate debt								643,083
Other non-current liabilities								657,345
Other current liabilities								185,190
Subtotal unallocated								1,485,618
Total liabilities								8,596,886
Equity unallocated								1,895,453
Total liabilities and equity unallocated								3,381,071
Total liabilities and equity								10,492,339

Assets and liabilities by geography as of December 31, 2016:

	North America		South America		EMEA		Balance as of December 31, 2016
Assets allocated
Contracted concessional assets		3,920,106		1,144,712		3,859,454		8,924,272
Investments carried under the equity method		-		-		55,009		55,009
Current financial investments		136,665		62,215		29,158		228,038
Cash and cash equivalents (project companies)		185,970		40,015		246,671		472,656
Subtotal allocated		4,242,741		1,246,942		4,190,291		9,679,975
Unallocated assets
Other non-current assets								272,664
Other current assets (including cash and cash equivalents at holding company level)								345,160
Subtotal unallocated								617,824
Total assets								10,297,799

	North America		South America		EMEA		Balance as of December 31, 2016
Liabilities allocated
Long-term and short-term project debt		1,870,861		895,316		2,564,290		5,330,467
Grants and other liabilities		1,575,303		1,512		35,230		1,612,045
Subtotal allocated		3,446,164		896,828		2,599,520		6,942,512
Unallocated liabilities
Long-term and short-term corporate debt								668,201
Other non-current liabilities								546,053
Other current liabilities								181,922
Subtotal unallocated								1,396,176
Total liabilities								8,338,688
Equity unallocated								1,959,111
Total liabilities and equity unallocated								3,355,287
Total liabilities and equity								10,297,799

Assets and liabilities by business sectors as of December 31, 2017:

	Renewable energy		Efficient natural gas		Electric transmission lines		Water		Balance as of December 31, 2017
Assets allocated
Contracted concessional assets		7,436,362		660,387		897,269		90,252		9,084,270
Investments carried under the equity method		12,419		-		-		43,365		55,784
Current financial investments		17,249		116,430		59,289		14,577		207,545
Cash and cash equivalents (project companies)		452,792		39,064		15,325		13,681		520,862
Subtotal allocated		7,918,822		815,881		971,883		161,875		9,868,461
Unallocated assets
Other non-current assets										210,378
Other current assets (including cash and cash equivalents at holding company level)										413,500
Subtotal unallocated										623,878
Total assets										10,492,339

	Renewable energy		Efficient natural gas		Electric transmission lines		Water		Balance as of December 31, 2017
Liabilities allocated
Long-term and short-term project debt		4,162,596		579,173		698,346		35,093		5,475,208
Grants and other liabilities		1,635,508		552		-		-		1,636,060
Subtotal allocated		5,798,104		579,725		698,346		35,093		7,111,268
Unallocated liabilities
Long-term and short-term corporate debt										643,083
Other non-current liabilities										657,345
Other current liabilities										185,190
Subtotal unallocated										1,485,618
Total liabilities										8,596,886
Equity unallocated										1,895,453
Total liabilities and equity unallocated										3,381,071
Total liabilities and equity										10,492,339

Assets and liabilities by business sectors as of December 31, 2016:

	Renewable energy		Efficient natural gas		Electric transmission lines		Water		Balance as of December 31, 2016
Assets allocated
Contracted concessional assets		7,255,308		646,927		929,005		93,032		8,924,272
Investments carried under the equity method		12,953		-		-		42,056		55,009
Current financial investments		13,661		136,644		62,215		15,518		228,038
Cash and cash equivalents (project companies)		420,215		30,295		11,357		10,789		472,656
Subtotal allocated		7,702,137		813,866		1,002,577		161,395		9,679,975
Unallocated assets
Other non-current assets										272,664
Other current assets (including cash and cash equivalents at holding company level)										345,160
Subtotal unallocated										617,824
Total assets										10,297,799

	Renewable energy		Efficient natural gas		Electric transmission lines		Water		Balance as of December 31, 2016
Liabilities allocated
Long-term and short-term project debt		3,979,096		598,256		711,517		41,598		5,330,467
Grants and other liabilities		1,611,067		239		739		-		1,612,045
Subtotal allocated		5,590,163		598,495		712,256		41,598		6,942,512
Unallocated liabilities
Long-term and short-term corporate debt										668,201
Other non-current liabilities										546,053
Other current liabilities										181,922
Subtotal unallocated										1,396,176
Total liabilities										8,338,688
Equity unallocated										1,959,111
Total liabilities and equity unallocated										3,355,287
Total liabilities and equity										10,297,799

The amount of depreciation, amortization and impairment charges recognized for the years ended December 31, 2017, 2016 and 2015 are as follows:

	For the year ended December 31,
Depreciation, amortization and impairment by geography	2017			2016			2015
North America		(123,726	)		(129,478	)		(129,091	)
South America		(40,880	)		(62,387	)		(41,274	)
EMEA		(146,354	)		(141,060	)		(90,936	)
Total		(310,960	)		(332,925	)		(261,301	)

	For the year ended December 31,
Depreciation, amortization and impairment by business sectors	2017			2016			2015
Renewable energy		(282,376	)		(304,235	)		(232,699	)
Electric transmission lines		(28,584	)		(28,690	)		(28,602	)
Total		(310,960	)		(332,925	)		(261,301	)