Energy Future Holdings Corp /TX/ - FORM 10-Q - EX-99.(C) - TCEH CONSOLIDATED ADJUSTED EBITDA - May 3, 2010

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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-99.(B) - ENERGY FUTURE HOLDINGS CORP. CONSOLIDATED ADJUSTED EBITDA - Energy Future Holdings Corp /TX/dex99b.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-31.(A) - SECTION 302 CERTIFICATION - PEO - Energy Future Holdings Corp /TX/dex31a.htm

Exhibit 99(c)

TCEH Consolidated

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)

    $ 450      $ 576      $ 583      $ (7,087 ) 

Income tax expense (benefit)

      258        367        339        600   

Interest expense and related charges

      749        399        2,182        3,717   

Depreciation and amortization

      337        276        1,233        1,099   
                                

EBITDA

    $ 1,794      $ 1,618      $ 4,337      $ (1,671 ) 

Interest income

      (22 )      (8 )      (78 )      (58 ) 

Amortization of nuclear fuel

      37        24        108        82   

Purchase accounting adjustments (a)

      44        86        258        372   

Impairment of goodwill

      —          70        —          8,070   

Impairment of assets and inventory write down (b)

      —          —          36        1,210   

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 )      —     

Corporate depreciation, interest and income tax expenses included in SG&A expense

      2        —          8        —     

Losses on sale of receivables

      —          4        8        25   

Noncash compensation expense (c)

      7        2        6        10   

Severance expense (d)

      3        7        6        9   

Transition and business optimization costs (e)

      1        11        14        36   

Transaction and merger expenses (f)

      11        1        14        11   

Insurance settlement proceeds (g)

      —          —          —          (21 ) 

Restructuring and other (h)

      (11 )      2        (29 )      35   

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

      23        34        100        100   
                                

Adjusted EBITDA per Incurrence Covenant

    $ 891      $ 823      $ 3,585      $ 3,258   

Expenses related to unplanned generation station outages (i)

      59        33        117        225   

Pro forma adjustment for Sandow 5 and Oak Grove 1 reaching 70% capacity in Q1 (j)

      —          —          84        —     

Other adjustments allowed to determine Adjusted EBITDA per Maintenance Covenant (k)

      3        5        36        19   
                                

Adjusted EBITDA per Maintenance Covenant

    $ 953      $ 861      $ 3,822      $ 3,502   
                                

 

(a) 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.
(b) Impairment of assets includes impairments of emission allowances and trade name intangible assets and impairment of land and the natural gas-fueled generation fleet.
(c) Noncash compensation expenses are accounted for under accounting standards related to stock compensation and exclude capitalized amounts.
(d) Severance expense includes amounts incurred related to outsourcing, restructuring and other amounts deemed to be in excess of normal recurring amounts.
(e) Transition and business optimization costs include professional fees primarily for retail billing and customer care systems enhancements and incentive compensation.
(f) Transaction and merger expenses include costs related to the Merger, outsourcing transition costs and costs related to certain growth initiatives.
(g) Insurance settlement proceeds include the amount received for property damage to certain mining equipment.
(h) Restructuring and other for the 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 charge related to the bankruptcy of a subsidiary of Lehman Brothers Holdings Inc. and other restructuring initiatives and nonrecurring activities.
(i) Expenses incurred to upgrade or expand a generation station reflect noncapital outage costs.
(j) Pro forma adjustment for Sandow 5 and Oak Grove 1 represents the annualization of the actual three months ended March 31, 2010 EBITDA results for these two units.
(k) Primarily pre-operating expenses relating to Oak Grove 2.

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