Attached files
Exhibit 99(d)
TEXAS COMPETITIVE ELECTRIC HOLDINGS COMPANY LLC
STATEMENTS OF CONSOLIDATED INCOME (LOSS)
(Millions of Dollars)
(Unaudited)
| Successor | Predecessor | |||||||||||||||||||
| Year Ended December 31, 2009 |
Year Ended December 31, 2008 |
Period from October 11, 2007 through December 31, 2007 |
Period from January 1, 2007 through October 10, 2007 |
|||||||||||||||||
| Operating revenues |
$ | 7,911 | $ | 9,787 | $ | 1,671 | $ | 6,884 | ||||||||||||
| Fuel, purchased power costs and delivery fees |
(3,934 | ) | (5,600 | ) | (852 | ) | (3,209 | ) | ||||||||||||
| Net gain (loss) from commodity hedging and trading activities |
1,736 | 2,184 | (1,492 | ) | (554 | ) | ||||||||||||||
| Operating costs |
(693 | ) | (676 | ) | (123 | ) | (473 | ) | ||||||||||||
| Depreciation and amortization |
(1,172 | ) | (1,092 | ) | (315 | ) | (253 | ) | ||||||||||||
| Selling, general and administrative expenses |
(741 | ) | (679 | ) | (153 | ) | (451 | ) | ||||||||||||
| Franchise and revenue-based taxes |
(108 | ) | (110 | ) | (30 | ) | (81 | ) | ||||||||||||
| Impairment of goodwill |
(70 | ) | (8,000 | ) | — | — | ||||||||||||||
| Other income |
59 | 34 | 2 | 22 | ||||||||||||||||
| Other deductions |
(63 | ) | (1,263 | ) | (5 | ) | 20 | |||||||||||||
| Interest income |
64 | 60 | 10 | 271 | ||||||||||||||||
| Interest expense and related charges |
(1,833 | ) | (3,918 | ) | (587 | ) | (323 | ) | ||||||||||||
| Income (loss) before income taxes |
1,156 | (9,273 | ) | (1,874 | ) | 1,853 | ||||||||||||||
| Income tax (expense) benefit |
(447 | ) | 411 | 651 | (595 | ) | ||||||||||||||
| Net income (loss) |
709 | (8,862 | ) | (1,223 | ) | 1,258 | ||||||||||||||
| Net (income) loss attributable to noncontrolling interests |
— | — | — | — | ||||||||||||||||
| Net income (loss) attributable to TCEH |
$ | 709 | $ | (8,862 | ) | $ | (1,223 | ) | $ | 1,258 | ||||||||||
TEXAS COMPETITIVE ELECTRIC HOLDINGS COMPANY LLC
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS)
(Millions of Dollars)
(Unaudited)
| Successor | Predecessor | |||||||||||||||||||
| Year Ended December 31, 2009 |
Year Ended December 31, 2008 |
Period from October 11, 2007 through December 31, 2007 |
Period from January 1, 2007 through October 10, 2007 |
|||||||||||||||||
| Net income (loss) |
$ | 709 | $ | (8,862 | ) | $ | (1,223 | ) | $ | 1,258 | ||||||||||
| Other comprehensive income (loss), net of tax effects: |
||||||||||||||||||||
| Cash flow hedges: |
||||||||||||||||||||
| Net decrease in fair value of derivatives (net of tax benefit of $10, $98, $97 and $154) |
(20 | ) | (181 | ) | (177 | ) | (288 | ) | ||||||||||||
| Derivative value net (gains) losses related to hedged transactions recognized during the period and reported in net income (net of tax (expense) benefit of $72, $66, $— and $(48)) |
129 | 122 | — | (89 | ) | |||||||||||||||
| Total adjustments to net income (loss) |
109 | (59 | ) | (177 | ) | (377 | ) | |||||||||||||
| Comprehensive income (loss) |
818 | (8,921 | ) | (1,400 | ) | 881 | ||||||||||||||
| Comprehensive (income) loss attributable to noncontrolling interests |
— | — | — | — | ||||||||||||||||
| Comprehensive income (loss) attributable to TCEH |
$ | 818 | $ | (8,921 | ) | $ | (1,400 | ) | $ | 881 | ||||||||||
TEXAS COMPETITIVE ELECTRIC HOLDINGS COMPANY LLC
STATEMENTS OF CONSOLIDATED CASH FLOWS
(Millions of Dollars)
(Unaudited)
| Successor | Predecessor | |||||||||||||||||||
| Year Ended December 31, 2009 |
Year Ended December 31, 2008 |
Period from October 11, 2007 through December 31, 2007 |
Period from January 1, 2007 through October 10, 2007 |
|||||||||||||||||
| Cash flows — operating activities |
||||||||||||||||||||
| Net income (loss) |
$ | 709 | $ | (8,862 | ) | $ | (1,223 | ) | $ | 1,258 | ||||||||||
| Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: |
||||||||||||||||||||
| Depreciation and amortization |
1,568 | 1,536 | 442 | 306 | ||||||||||||||||
| Deferred income tax expense (benefit) — net |
373 | (378 | ) | (451 | ) | (81 | ) | |||||||||||||
| Impairment of goodwill |
70 | 8,000 | — | — | ||||||||||||||||
| Impairment of trade name intangible asset |
— | 481 | — | — | ||||||||||||||||
| Impairment of emission allowances intangible assets |
— | 501 | — | — | ||||||||||||||||
| Impairment of natural gas-fueled generation facilities |
— | 229 | — | — | ||||||||||||||||
| Impairment of land |
34 | — | — | — | ||||||||||||||||
| Charge related to Lehman bankruptcy |
— | 26 | — | — | ||||||||||||||||
| Net effect of unrealized mark-to-market valuations of commodity positions — losses (gains) |
(1,225 | ) | (2,329 | ) | 1,556 | 722 | ||||||||||||||
| Unrealized net (gain) loss on mark-to-market valuations of interest rate swaps |
(696 | ) | 1,477 | — | — | |||||||||||||||
| Increase in Toggle Notes in lieu of cash interest |
202 | — | — | — | ||||||||||||||||
| Bad debt expense |
116 | 81 | 13 | 44 | ||||||||||||||||
| Stock-based incentive compensation expense |
4 | 10 | — | 6 | ||||||||||||||||
| Reversal of reserve recorded in purchase accounting |
(34 | ) | — | — | — | |||||||||||||||
| Losses on dedesignated cash flow hedges (interest rate swaps) |
183 | 66 | 1 | 8 | ||||||||||||||||
| Credit related to impaired leases |
— | — | — | (48 | ) | |||||||||||||||
| Net (gains) losses on sale of assets |
(5 | ) | — | — | (1 | ) | ||||||||||||||
| Net equity loss from unconsolidated affiliate |
7 | 10 | 2 | 5 | ||||||||||||||||
| Other — net |
2 | (22 | ) | 2 | 6 | |||||||||||||||
| Changes in operating assets and liabilities: |
||||||||||||||||||||
| Affiliate accounts receivable/payable — net |
49 | 42 | (79 | ) | 87 | |||||||||||||||
| Accounts receivable — trade |
(104 | ) | (491 | ) | (211 | ) | 308 | |||||||||||||
| Impact of accounts receivable sales program |
(33 | ) | 53 | (223 | ) | 45 | ||||||||||||||
| Inventories |
(32 | ) | (12 | ) | (14 | ) | (33 | ) | ||||||||||||
| Accounts payable — trade |
(142 | ) | 366 | 260 | (444 | ) | ||||||||||||||
| Commodity and other derivative contractual assets and liabilities |
(64 | ) | (28 | ) | (10 | ) | (167 | ) | ||||||||||||
| Margin deposits – net |
248 | 595 | (614 | ) | (569 | ) | ||||||||||||||
| Other — net assets |
109 | 355 | (276 | ) | 2 | |||||||||||||||
| Other — net liabilities |
53 | (46 | ) | 433 | (189 | ) | ||||||||||||||
| Cash provided by (used in) operating activities |
1,392 | 1,660 | (392 | ) | 1,265 | |||||||||||||||
TEXAS COMPETITIVE ELECTRIC HOLDINGS COMPANY LLC
STATEMENTS OF CONSOLIDATED CASH FLOWS (CONT.)
(Millions of Dollars)
(Unaudited)
| Successor | Predecessor | |||||||||||||||||||
| Year Ended December 31, 2009 |
Year Ended December 31, 2008 |
Period from October 11, 2007 through December 31, 2007 |
Period from January 1, 2007 through October 10, 2007 |
|||||||||||||||||
| Cash flows — financing activities |
||||||||||||||||||||
| Issuances of long-term borrowings: |
||||||||||||||||||||
| Merger-related debt financing |
— | — | 33,732 | — | ||||||||||||||||
| Pollution control revenue bonds |
— | 242 | — | — | ||||||||||||||||
| Other long-term debt |
522 | 1,443 | — | 1,000 | ||||||||||||||||
| Retirements/repurchases of long-term borrowings: |
||||||||||||||||||||
| Merger-related debt repurchases |
— | — | (8,992 | ) | — | |||||||||||||||
| Pollution control revenue bonds |
— | (242 | ) | — | (143 | ) | ||||||||||||||
| Other long-term debt |
(272 | ) | (612 | ) | (45 | ) | (15 | ) | ||||||||||||
| Increase (decrease) in short-term borrowings: |
||||||||||||||||||||
| Bank |
53 | 462 | (1,617 | ) | 1,860 | |||||||||||||||
| Commercial paper |
— | — | — | (623 | ) | |||||||||||||||
| Decrease in income tax-related note payable to Oncor |
(35 | ) | (34 | ) | (9 | ) | (24 | ) | ||||||||||||
| Distribution paid to parent |
— | — | (21,000 | ) | (1,135 | ) | ||||||||||||||
| Contributions from noncontrolling interests |
48 | — | — | — | ||||||||||||||||
| Debt discount, financing and reacquisition expenses – net |
(34 | ) | (1 | ) | (576 | ) | (12 | ) | ||||||||||||
| Advances from affiliates |
(1 | ) | 5 | — | — | |||||||||||||||
| Other — net |
4 | 37 | — | — | ||||||||||||||||
| Cash provided by financing activities continuing operations |
$ | 285 | $ | 1,300 | $ | 1,493 | $ | 908 | ||||||||||||
| Cash flows — investing activities |
||||||||||||||||||||
| Net loans (to) from affiliates. |
$ | (834 | ) | $ | (572 | ) | $ | 9 | $ | 67 | ||||||||||
| Capital expenditures |
(1,324 | ) | (1,908 | ) | (496 | ) | (1,409 | ) | ||||||||||||
| Nuclear fuel purchases |
(197 | ) | (166 | ) | (23 | ) | (54 | ) | ||||||||||||
| Money market fund redemptions (investments) |
142 | (142 | ) | — | — | |||||||||||||||
| Purchase of mining-related assets |
— | — | — | (122 | ) | |||||||||||||||
| Net proceeds from sale of assets |
1 | 29 | 14 | 2 | ||||||||||||||||
| Net proceeds from sale of controlling interest in natural gas gathering pipeline business |
40 | — | — | — | ||||||||||||||||
| Reduction of (proceeds from) letter of credit facility posted with trustee (restricted cash) |
115 | — | (1,250 | ) | — | |||||||||||||||
| Reduction of restricted cash related to pollution control revenue bonds |
— | 29 | 13 | 202 | ||||||||||||||||
| Other changes in restricted cash |
3 | (4 | ) | 1 | (1 | ) | ||||||||||||||
| Proceeds from sales of environmental allowances and credits |
19 | 39 | — | — | ||||||||||||||||
| Purchases of environmental allowances and credits |
(19 | ) | (34 | ) | — | — | ||||||||||||||
| Proceeds from sales of nuclear decommissioning trust fund securities |
3,064 | 1,623 | 831 | 602 | ||||||||||||||||
| Investments in nuclear decommissioning trust fund securities |
(3,080 | ) | (1,639 | ) | (835 | ) | (614 | ) | ||||||||||||
| Cash settlements related to outsourcing contract termination |
— | 41 | — | — | ||||||||||||||||
| Other — net |
8 | 8 | (6 | ) | 3 | |||||||||||||||
| Cash used in investing activities |
(2,062 | ) | (2,696 | ) | (1,742 | ) | (1,324 | ) | ||||||||||||
| Net change in cash and cash equivalents |
(385 | ) | 264 | (641 | ) | 849 | ||||||||||||||
| Cash and cash equivalents — beginning balance |
479 | 215 | 856 | 7 | ||||||||||||||||
| Cash and cash equivalents — ending balance |
$ | 94 | $ | 479 | $ | 215 | $ | 856 | ||||||||||||
TEXAS COMPETITIVE ELECTRIC HOLDINGS COMPANY LLC
CONSOLIDATED BALANCE SHEETS
(Millions of Dollars)
(Unaudited)
| Successor | ||||||||
| December 31, 2009 |
December 31, 2008 |
|||||||
| ASSETS | ||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 94 | $ | 479 | ||||
| Investments held in money market fund |
— | 142 | ||||||
| Restricted cash |
1 | 4 | ||||||
| Trade accounts receivable — net |
1,009 | 994 | ||||||
| Notes receivable from parents |
1,432 | 598 | ||||||
| Inventories |
393 | 361 | ||||||
| Commodity and other derivative contractual assets |
2,339 | 2,391 | ||||||
| Accumulated deferred income taxes |
— | 21 | ||||||
| Margin deposits related to commodity positions |
187 | 439 | ||||||
| Other current assets |
47 | 85 | ||||||
| Total current assets |
5,502 | 5,514 | ||||||
| Restricted cash |
1,135 | 1,250 | ||||||
| Investments |
590 | 483 | ||||||
| Property, plant and equipment — net |
20,980 | 20,902 | ||||||
| Goodwill |
10,252 | 10,322 | ||||||
| Intangible assets — net |
2,593 | 2,774 | ||||||
| Commodity and other derivative contractual assets |
1,533 | 962 | ||||||
| Other noncurrent assets, principally unamortized debt issuance costs |
638 | 750 | ||||||
| Total assets |
$ | 43,223 | $ | 42,957 | ||||
| LIABILITIES AND MEMBERSHIP INTERESTS | ||||||||
| Current liabilities: |
||||||||
| Short-term borrowings |
$ | 953 | $ | 900 | ||||
| Advances from parent |
3 | 4 | ||||||
| Long-term debt due currently |
294 | 261 | ||||||
| Trade accounts payable — nonaffiliates |
748 | 1,000 | ||||||
| Trade accounts and other payables to affiliates |
203 | 168 | ||||||
| Commodity and other derivative contractual liabilities |
2,310 | 2,730 | ||||||
| Margin deposits related to commodity positions |
520 | 525 | ||||||
| Accrued income taxes payable to parent |
53 | 33 | ||||||
| Accumulated deferred income taxes |
1 | — | ||||||
| Accrued taxes other than income |
75 | 70 | ||||||
| Accrued interest |
303 | 310 | ||||||
| Other current liabilities |
338 | 276 | ||||||
| Total current liabilities |
5,801 | 6,277 | ||||||
| Accumulated deferred income taxes |
5,523 | 5,249 | ||||||
| Commodity and other derivative contractual liabilities |
1,060 | 2,095 | ||||||
| Notes or other liabilities due affiliates |
217 | 254 | ||||||
| Long-term debt held by affiliate |
143 | — | ||||||
| Long-term debt, less amounts due currently |
29,516 | 29,209 | ||||||
| Other noncurrent liabilities and deferred credits |
2,746 | 2,527 | ||||||
| Total liabilities |
45,006 | 45,611 | ||||||
| Commitments and Contingencies |
||||||||
| Membership interests |
(1,783 | ) | (2,654 | ) | ||||
| Total liabilities and membership interests |
$ | 43,223 | $ | 42,957 | ||||
TEXAS COMPETITIVE ELECTRIC HOLDINGS COMPANY LLC
STATEMENTS OF CONSOLIDATED MEMBERSHIP INTERESTS
(Millions of Dollars)
(Unaudited)
| Successor | Predecessor | |||||||||||||||||||
| Year Ended December 31, 2009 |
Year Ended December 31, 2008 |
Period from October 11, 2007 through December 31, 2007 |
Period from January 1, 2007 through October 10, 2007 |
|||||||||||||||||
| Membership interests: |
||||||||||||||||||||
| Capital account: |
||||||||||||||||||||
| Balance at beginning of period (a) |
$ | (2,418 | ) | $ | 6,393 | $ | 28,315 | $ | 6,359 | |||||||||||
| Net income (loss) |
709 | (8,862 | ) | (1,223 | ) | 1,258 | ||||||||||||||
| Effects of purchase accounting push-down |
— | 48 | — | — | ||||||||||||||||
| Effect of adoption of accounting guidance related to uncertain tax positions |
— | — | — | (36 | ) | |||||||||||||||
| Distributions paid to parent |
— | — | — | (1,135 | ) | |||||||||||||||
| Intercompany payable/receivable settlements and contributions related to the Merger |
— | — | — | (4,057 | ) | |||||||||||||||
| Dividend to parent to fund Merger |
— | — | (21,000 | ) | — | |||||||||||||||
| Merger-related transactions |
— | — | 301 | — | ||||||||||||||||
| Effects of stock-based incentive compensation plans |
5 | 3 | — | 31 | ||||||||||||||||
| Allocated pension assets |
— | — | — | 8 | ||||||||||||||||
| Balance at end of period |
(1,704 | ) | (2,418 | ) | 6,393 | 2,428 | ||||||||||||||
| Accumulated other comprehensive income (loss), net of tax effects (b): |
||||||||||||||||||||
| Balance at beginning of period |
(236 | ) | (177 | ) | — | 430 | ||||||||||||||
| Change during period |
109 | (59 | ) | (177 | ) | (377 | ) | |||||||||||||
| Balance at end of period |
(127 | ) | (236 | ) | (177 | ) | 53 | |||||||||||||
| Total TCEH membership interests at end of period |
$ | (1,831 | ) | $ | (2,654 | ) | $ | 6,216 | $ | 2,481 | ||||||||||
| Noncontrolling interests in subsidiaries: |
||||||||||||||||||||
| Balance at beginning of period |
— | — | — | — | ||||||||||||||||
| Investment |
48 | — | — | — | ||||||||||||||||
| Noncontrolling interests in subsidiaries at end of period |
48 | — | — | — | ||||||||||||||||
| Total membership interests at end of period |
$ | (1,783 | ) | $ | (2,654 | ) | $ | 6,216 | $ | 2,481 | ||||||||||
| (a) | The beginning equity balance for the Successor period reflects the application of push-down accounting as a result of the Merger. |
| (b) | All amounts relate to cash flow hedges. |