Energy Future Holdings Corp /TX/ - FORM 10-Q - EX-99.(B) - ENERGY FUTURE HOLDINGS CORP. CONSOLIDATED ADJUSTED EBITDA - May 3, 2010

Attached files

file filename
10-Q - FORM 10-Q - Energy Future Holdings Corp /TX/d10q.htm
EX-32.(B) - SECTION 906 CERTIFICATION - PFO - Energy Future Holdings Corp /TX/dex32b.htm
EX-99.(A) - CONDENSED STATEMENTS OF CONSOLIDATED INCOME - Energy Future Holdings Corp /TX/dex99a.htm
EX-32.(A) - SECTION 906 CERTIFICATION - PEO - Energy Future Holdings Corp /TX/dex32a.htm
EX-31.(B) - SECTION 302 CERTIFICATION - PFO - Energy Future Holdings Corp /TX/dex31b.htm
EX-99.(C) - TCEH CONSOLIDATED ADJUSTED EBITDA - Energy Future Holdings Corp /TX/dex99c.htm
EX-31.(A) - SECTION 302 CERTIFICATION - PEO - Energy Future Holdings Corp /TX/dex31a.htm

Exhibit 99(b)

Energy Future Holdings Corp.

Adjusted EBITDA Reconciliation

 

     Three Months
Ended
March 31, 2010		     Three Months
Ended
March 31, 2009		     Twelve Months
Ended
March 31, 2010		     Twelve Months
Ended
March 31, 2009		  

Net income (loss) attributable to EFH Corp.

    $ 355      $ 442      $ 257      $ (8,127 ) 

Income tax expense (benefit)

      203        333        237        522   

Interest expense and related charges

      954        667        3,199        4,759   

Depreciation and amortization

      342        407        1,689        1,622   
                                

EBITDA

    $ 1,854      $ 1,849      $ 5,382      $ (1,224 ) 

Oncor EBITDA

      —          (298 )      (1,055 )      (479 ) 

Oncor distributions/dividends (a)

      30        25        221        1,550   

Interest income

      (10 )      (1 )      (54 )      (23 ) 

Amortization of nuclear fuel

      37        24        108        82   

Purchase accounting adjustments (b)

      56        97        305        419   

Impairment of goodwill

      —          90        —          8,090   

Impairment of assets and inventory write down (c)

      1        1        41        1,218   

Net gain on debt exchange offers

      (14 )      —          (101 )      —     

Net income (loss) attributable to noncontrolling interests

      —          12        52        (150 ) 

Equity in earnings of unconsolidated subsidiary

      (63 )      —          (63 )      —     

EBITDA amount attributable to consolidated unrestricted subsidiaries

      —          2        1        2   

Unrealized net (gain) loss resulting from hedging transactions

      (993 )      (1,030 )      (1,189 )      (4,954 ) 

Amortization of “day one” net loss on Sandow 5 power purchase agreement

      (5 )      —          (15 )      —     

Losses on sale of receivables

      —          4        8        25   

Noncash compensation expenses (d)

      9        5        14        29   

Severance expense (e)

      3        7        6        10   

Transition and business optimization costs (f)

      —          11        11        45   

Transaction and merger expenses (g)

      13        17        77        68   

Insurance settlement proceeds (h)

      —          —          —          (21 ) 

Restructuring and other (i)

      (10 )      3        (26 )      37   

Expenses incurred to upgrade or expand a generation station (j)

      23        34        100        100   
                                

Adjusted EBITDA per Incurrence Covenant

    $ 931      $ 852      $ 3,823      $ 4,824   

Add back Oncor adjusted EBITDA (reduced by Oncor distributions/dividends)

      332        264        1,193        (253 ) 
                                

Adjusted EBITDA per Restricted Payments Covenant

    $ 1,263      $ 1,116      $ 5,016      $ 4,571   
                                

 

(a) Twelve months ended March 31, 2009 amount includes $1.253 billion distribution of net proceeds from the sale of Oncor noncontrolling interests in November 2008.
(b) Purchase accounting adjustments include amortization of the intangible net asset value of retail and wholesale power sales agreements, environmental credits, coal purchase contracts, nuclear fuel contracts and power purchase agreements and the stepped up value of nuclear fuel. Also include certain credits not recognized in net income due to purchase accounting.
(c) Impairment of assets includes impairments of emission allowances and trade name intangible assets, impairments of land and the natural gas-fueled generation fleet and charges related to the cancelled development of coal-fueled generation facilities.
(d) Noncash compensation expenses are accounted for under accounting standards related to stock compensation and exclude capitalized amounts.
(e) Severance expense includes amounts incurred related to outsourcing, restructuring and other amounts deemed to be in excess of normal recurring amounts.
(f) Transition and business optimization costs include professional fees primarily for retail billing and customer care systems enhancements and incentive compensation.
(g) Transaction and merger expenses include costs related to the Merger and abandoned strategic transactions, outsourcing transition costs, administrative costs related to the cancelled program to develop coal-fueled generation facilities, the Sponsor Group management fee, costs related to certain growth initiatives and costs related to the Oncor sale of noncontrolling interests.
(h) Insurance settlement proceeds include the amount received for property damage to certain mining equipment.
(i) Restructuring and other for twelve months ended March 31, 2010 primarily represents reversal of certain liabilities accrued in purchase accounting and recorded as other income, partially offset by restructuring and nonrecurring activities and for the twelve months ended March 31, 2009 includes a litigation accrual and a charge related to the bankruptcy of a subsidiary of Lehman Brothers Holdings Inc. and other restructuring initiatives and nonrecurring activities.
(j) Expenses incurred to upgrade or expand a generation station reflect noncapital outage costs.

Energy Future Holdings Corp /TX/ Reports