Allegheny Power 2010 Annual Report Download - page 140

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125
18. SUPPLEMENTAL GUARANTOR INFORMATION
As discussed in Note 7, FES has fully and unconditionally guaranteed all of FGCO's obligations under each of the leases
associated with Bruce Mansfield Unit 1. The Consolidating Statements of Income for the three years ended
December 31, 2010, Consolidating Balance Sheets as of December 31, 2010, and December 31, 2009, and Condensed
Consolidating Statements of Cash Flows for the three years ended December 31, 2010, for FES (parent and guarantor),
FGCO and NGC (non-guarantor) are presented below. Investments in wholly owned subsidiaries are accounted for by
FES using the equity method. Results of operations for FGCO and NGC are, therefore, reflected in FES’ investment
accounts and earnings as if operating lease treatment was achieved (see Note 7). The principal elimination entries
eliminate investments in subsidiaries and intercompany balances and transactions and the entries required to reflect
operating lease treatment associated with the 2007 Bruce Mansfield Unit 1 sale and leaseback transaction.
FIRSTENERGY SOLUTIONS CORP.
CONSOLIDATING STATEMENTS OF INCOME
For the Year Ended December 31, 2010 FES FGCO NGC Eliminations Consolidated
(In thousands)
REVENUES $ 5,665,077 $ 2,435,027 $ 1,567,728 $ (3,840,218) $ 5,827,614
EXPENSES:
Fuel 30,618 1,200,432 171,789 - 1,402,839
Purchased power from affiliates 3,948,399 30,496 232,015 (3,840,218) 370,692
Purchased power from non-affiliates 1,585,207 - - - 1,585,207
Other operating expenses 315,767 377,534 537,281 48,758 1,279,340
Provision for depreciation 3,083 99,386 146,051 (5,224) 243,296
General taxes 23,869 42,337 27,571 - 93,777
Impairment of long-lived assets - 383,665 - - 383,665
Total expenses 5,906,943 2,133,850 1,114,707 (3,796,684) 5,358,816
OPERATING INCOME (LOSS) (241,866) 301,177 453,021 (43,534) 468,798
OTHER INCOME (EXPENSE):
Investment income 4,679 908 53,615 - 59,202
Miscellaneous income, including
net income from equity investees 485,467 647 56 (469,503) 16,667
Interest expense - affiliates (240) (7,830) (1,685) - (9,755)
Interest expense - other (95,825) (108,543) (65,385) 63,653 (206,100)
Capitalized interest 399 74,655 16,619 - 91,673
Total other income (expense) 394,480 (40,163) 3,220 (405,850) (48,313)
INCOME BEFORE INCOME TAXES 152,614 261,014 456,241 (449,384) 420,485
INCOME TAXES (BENEFITS) (116,814) 81,621 167,435 18,815 151,057
NET INCOME $269,428 $179,393 $288,806 $ (468,199) $269,428