Allegheny Power 2010 Annual Report Download - page 30

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15
RESULTS OF OPERATIONS
The financial results discussed below include revenues and expenses from transactions among FirstEnergy’s business
segments. A reconciliation of segment financial results is provided in Note 15 to the consolidated financial statements.
Earnings available to FirstEnergy by major business segment were as follows:
Increase (Decrease)
2010 2009 2008 2010 vs 2009 2009 vs 2008
(In millions, except per share data)
Earnings (Loss) By Business Segment:
Energy delivery services $ 607 $ 435 $ 916 $ 172 $ (481)
Competitive energy services 258 517 472 (259) 45
Other and reconciling adjustments* (81) 54 (46) (135) 100
Total $ 784 $ 1,006 $ 1,342 $ (222) $ (336)
Basic Earnings Per Share $ 2.58 $ 3.31 $ 4.41 $ (0.73) $ (1.10)
Diluted Earnings Per Share $ 2.57 $ 3.29 $ 4.38 $ (0.72) $ (1.09)
* Consists primarily of interest expense related to holding company debt, corporate support services revenues and expenses, noncontrolling
interests and the elimination of intersegment transactions.
Summary of Results of Operations – 2010 Compared with 2009
Financial results for FirstEnergy's major business segments in 2010 and 2009 were as follows:
Energy Competitive Other and
Delivery Energy Reconciling FirstEnergy
2010 Financial Results Services Services Adjustments Consolidated
(In millions)
Revenues:
External
Electric $ 9,271 $ 3,252 $ - $ 12,523
Other 542 292 (92) 742
Internal* 139 2,301 (2,366) 74
Total Revenues 9,952 5,845 (2,458) 13,339
Expenses:
Fuel - 1,440 (8) 1,432
Purchased power 5,266 1,724 (2,366) 4,624
Other operating expenses 1,492 1,436 (78) 2,850
Provision for depreciation 451 254 41 746
A
mortization of regulatory assets 722 - - 722
Deferral of new regulatory assets - - - -
Impairment of long lived assets - 384 - 384
General taxes 653 113 10 776
Total Expenses 8,584 5,351 (2,401) 11,534
Operating Income 1,368 494 (57) 1,805
Other Income (Expense):
Investment income 102 51 (36) 117
Interest expense (496) (221) (128) (845)
Capitalized interest 5 92 68 165
Total Other Expense (389) (78) (96) (563)
Income Before Income Taxes 979 416 (153) 1,242
Income taxes 372 158 (48) 482
Net Income (Loss) 607 258 (105) 760
Loss attributable to noncontrolling interest - - (24) (24)
Earnings available to FirstEnergy Corp. $ 607 $ 258 $ (81) $ 784
* Under the accounting standard for the effects of certain types of regulation, internal revenues are not fully offset for sale of RECs by
FES to the Ohio Companies that are retained in inventory.