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10-Q - FORM 10-Q - Energy Future Holdings Corp /TX/d10q.htm
EX-99.(C) - TCEH CONSOLIDATED ADJUSTED EBITDA - Energy Future Holdings Corp /TX/dex99c.htm
EX-32.(B) - SECTION 906 CERTIFICATION - PFO - Energy Future Holdings Corp /TX/dex32b.htm
EX-31.(A) - SECTION 302 CERTIFICATION - PEO - Energy Future Holdings Corp /TX/dex31a.htm
EX-32.(A) - SECTION 906 CERTIFICATION - PEO - Energy Future Holdings Corp /TX/dex32a.htm
EX-99.(A) - CONDENSED STATEMENT OF CONSOLIDATED INCOME - Energy Future Holdings Corp /TX/dex99a.htm
EX-99.(D) - EFIH CONSOLIDATED ADJUSTED EBITDA - Energy Future Holdings Corp /TX/dex99d.htm
EX-31.(B) - SECTION 302 CERTIFICATION - PFO - Energy Future Holdings Corp /TX/dex31b.htm

 

Exhibit 99(b)

Energy Future Holdings Corp.

Adjusted EBITDA Reconciliation

 

     Nine Months
Ended
September 30, 2010
    Nine Months
Ended
September 30, 2009
    Twelve Months
Ended
September 30, 2010
    Twelve Months
Ended
September 30, 2009
 

Net income (loss) attributable to EFH Corp.

   $ (2,973   $ 207      $ (2,836   $ (8,648

Income tax expense

     336        254        449        245   

Interest expense and related charges

     3,092        2,136        3,868        4,566   

Depreciation and amortization

     1,043        1,286        1,511        1,679   
                                

EBITDA

   $ 1,498      $ 3,883      $ 2,992      $ (2,158

Oncor EBITDA

     —          (1,043     (311     (488

Oncor Holdings distributions/dividends (a)

     141        117        239        1,487   

Interest income

     (9     (30     (24     (35

Amortization of nuclear fuel

     102        73        130        95   

Purchase accounting adjustments (b)

     159        257        241        392   

Impairment of goodwill

     4,100        90        4,100        8,090   

Impairment of assets and inventory write down (c)

     3        5        40        715   

Net gain on debt exchange offers

     (1,166     —          (1,253     —     

Net income (loss) attributable to noncontrolling interests

     —          54        9        (106

Equity in earnings of unconsolidated subsidiary

     (240     —          (240     —     

EBITDA amount attributable to consolidated unrestricted subsidiaries

     —          3        1        3   

Unrealized net gain resulting from hedging transactions

     (1,615     (713     (2,127     (3,263

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

     (19     (7     (22     (7

Losses on sale of receivables

     —          9        3        17   

Noncash compensation expenses (d)

     13        9        15        11   

Severance expense (e)

     3        9        4        10   

Transition and business optimization costs (f)

     (2     22        1        29   

Transaction and merger expenses (g)

     37        65        53        84   

Insurance settlement proceeds (h)

     —          —          —          (21

Restructuring and other (i)

     (1     (10     (4     (6

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

     100        100        100        100   
                                

Adjusted EBITDA per Incurrence Covenant

   $ 3,104      $ 2,893      $ 3,947      $ 4,949   

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

     1,053        926        1,248        (148
                                

Adjusted EBITDA per Restricted Payments Covenant

   $ 4,157      $ 3,819      $ 5,195      $ 4,801   
                                

 

(a) Twelve months ended September 30, 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 impairment of trade name intangible asset, 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 September 30, 2010 includes restructuring and nonrecurring activities and for the twelve months ended September 30, 2009 primarily represents reversal of certain liabilities accrued in purchase accounting and recorded as other income, partially offset by restructuring initiatives and nonrecurring activities.
(j) Expenses incurred to upgrade or expand a generation station reflect noncapital outage costs.