NOTE 24. INFORMATION BY BUSINESS SEGMENTS

The business segment presentation reflects the information reviewed by the Company's Chief Operating Decision Maker (CODM, the Company's President and Chief Executive Officer). Such information is the basis for the analysis of segment performance and the allocation of resources. Performance is evaluated based on net income (loss) and variances of actual performance from the Company's budget and/or forecast when making decisions. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Avista Utilities' business is managed based on the total regulated utility operation; therefore, it is considered one segment. AEL&P is a separate reportable business segment since it has separate financial information and its operations and risks are sufficiently different from Avista Utilities and the other businesses at AERC that it cannot be aggregated with other operating segments. The Other category, which is not a reportable segment, includes other investments and operations of various subsidiaries, as well as certain other operations of Avista Capital. Decisions by the CODM are made in consultation with other members of management, as appropriate, and are subject to the general oversight and strategic direction of the Board of Directors.

The following table presents information for each of the Company’s business segments (dollars in millions):


	Reportable Segments
	Avista Utilities			Alaska Electric Light and Power Company		Total Utility			Other Non-Reportable Segment Items			Eliminations (1)			Total
2025
Operating revenues	$	1,916		$	47	$	1,963		$	1		$	—		$	1,964
Resource costs		689			2		691			—			—			691
Other operating expenses		487			17		504			5			—			509
Depreciation and amortization		277			12		289			—			—			289
Interest income		13			—		13			1			(2	)		12
Interest expense (2)		147			6		153			3			(2	)		154
Other segment expenses (3)		102			2		104			12			—			116
Income tax expense (benefit)		26			2		28			(4	)		—			24
Net income (loss)		201			6		207			(14	)		—			193
Capital expenditures (4)		553			17		570			—			—			570
2024
Operating revenues	$	1,887		$	50	$	1,937		$	1		$	—		$	1,938
Resource costs		794			4		798			—			—			798
Other operating expenses		426			17		443			1			—			444
Depreciation and amortization		263			11		274			—			—			274
Interest income		15			—		15			1			(2	)		14
Interest expense (2)		143			6		149			3			(2	)		150
Other segment expenses (3)		95			1		96			7			—			103
Income tax expense (benefit)		2			3		5			(2	)		—			3
Net income (loss)		179			8		187			(7	)		—			180
Capital expenditures (4)		510			23		533			—			—			533
2023
Operating revenues	$	1,703		$	48	$	1,751		$	1		$	—		$	1,752
Resource costs		698			4		702			—			—			702
Other operating expenses		399			15		414			3			—			417
Depreciation and amortization		254			11		265			—			—			265
Interest income		15			—		15			1			(1	)		15
Interest expense (2)		137			6		143			2			(1	)		144
Other segment expenses (3)		98			—		98			4			—			102
Income tax expense (benefit)		(35	)		3		(32	)		(2	)		—			(34	)
Net income (loss)		167			9		176			(5	)		—			171
Capital expenditures (4)		485			14		499			0			—			499
Total Assets:
As of December 31, 2025	$	7,917		$	289	$	8,206		$	177		$	(24	)	$	8,359
As of December 31, 2024		7,494			283		7,777			194			(30	)		7,941
As of December 31, 2023		7,263			270		7,533			191			(22	)		7,702

(1)

Eliminations reported as interest expense and interest income represent intercompany interest. Eliminations reported as assets represent intersegment accounts receivable.

(2)

Including interest expense to affiliated trusts.

(3)

Other segment items include taxes other than income tax, AFUDC equity, other miscellaneous expenses, and earnings (losses) from investments.

(4)

The capital expenditures for the other businesses are included in other investing activities on the Consolidated Statements of Cash Flows.

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

AVISTA CORP Segments Disclosure

About Segments Disclosures

Other Available Disclosures