Allegheny Power 2011 Annual Report Download - page 50

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35
Cash Flows From Operating Activities
FirstEnergy’s consolidated net cash from operating activities is provided primarily by its regulated distribution, regulated independent
transmission and competitive energy services businesses (see Results of Operations above). Net cash provided from operating
activities was $3.1 billion in 2011, $3.1 billion in 2010 and $2.5 billion in 2009, as summarized in the following table:
Operating Cash Flows
Net income
Non-cash charges
Pension trust contributions
Working capital and other
2011
(In millions)
$ 869
2,424
(372)
142
$ 3,063
2010
$ 718
2,343
—
15
$ 3,076
2009
$ 856
2,095
(500)
14
$ 2,465
The 2011 increase in non-cash charges is primarily due to increased pensions and OPEB mark-to-market adjustment charges from
higher actuarial losses ($317 million), increased deferred taxes resulting from bonus depreciation ($348 million) and increased
depreciation attributable to the acquired Allegheny companies ($353 million). These increases were partially offset by gains from
the sale of assets, mostly due to the sale of Signal Peak ($543 million), and lower amortization of regulatory assets from reduced
net PJM transmission cost and transition cost recovery ($393 million).
The 2011 increase in cash flows from working capital and other is primarily due to decreased receivables from higher customer
collections ($324 million) partially offset by the absence of interest rate swap activity transacted in 2010 ($129 million).
Cash Flows From Financing Activities
In 2011, cash used for financing activities was $2,924 million compared to $983 million in 2010. The following table summarizes
security issuances (net of any discounts) and redemptions:
Securities Issued or Redeemed
New Issues
PCRBs
Long-term revolving credit
Senior secured notes
FMBs
Unsecured Notes
Redemptions
PCRBs
Long-term revolving credit
Senior secured notes
FMBs
Unsecured notes
Net repayment of short-term borrowings
2011
$ 272
70
—
—
262
$ 604
$ 792
495
460
15
147
$ 1,909
$ (700)
2010
(In millions)
$ 740
—
350
—
9
$ 1,099
$ 741
—
141
32
101
$ 1,015
$ (378)
2009
$ 940
—
297
398
2,997
$ 4,632
$ 884
—
217
1
1,508
$ 2,610
$ (1,246)
Cash Flows From Investing Activities
Cash used for investing activities in 2011 resulted from cash used for property additions, partially offset by the cash acquired in the
Allegheny merger and proceeds from asset sales. The following table summarizes investing activities for 2011, 2010 and 2009 by
business segment: