Seattle City Light 2016 ANNUAL REPORT | Audited Financial Statements 25 - 25 - THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT STATEMENTS OF CASH FLOWS - RECONCILIATION FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 ($ in millions) 2016 2015 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income 107.4 $ 110.9 $ Adjustments to reconcile operating income to net cash provided by operating activities: Non-cash items included in operating income: Depreciation 127.3 118.3 Amortization of other liabilities (1.1) (0.9) Amortization of other assets 26.7 24.3 Bad debt expense 7.0 3.0 Power revenues (28.5) (31.5) Power expenses 28.7 32.9 Provision for injuries and damages (1.6) 0.6 Other non-cash items 21.3 7.6 Change in: Accounts receivable (24.0) (5.6) Unbilled revenues (6.1) (5.9) Materials and supplies (3.1) (7.6) Prepayments, interest receivable, and other receivables (1.9) (0.8) Other assets 6.1 2.7 Provision for injuries and damages and claims payable (1.1) 1.4 Accounts payable and other payables (6.4) 2.1 Rate stabilization unearned revenue 0.1 (23.4) Total adjustments 143.4 117.2 Net cash provided by operating activities 250.8 $ 228.1 $ SUPPLEMENTAL DISCLOSURES OF NONCASH ACTIVITIES: In-kind capital contributions 1.5 $ 1.4 $ Amortization of debt related costs—net 10.7 9.2 Allowance for funds used during construction 10.2 8.9 Power exchange revenues 15.8 17.0 Power exchange expenses (15.8) (17.6) Power revenue netted against power expenses 6.6 6.5 Power expense netted against power revenues (5.9) (8.5) See notes to financial statements.