Dominion Power 2007 Annual Report Download - page 28

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26 Dominion 2007 Annual Report
Reconciliation of Operating Earnings to Reported Earnings (GAAP)
2003* 2004* 2005* 2006* 2007
Millions EPS Millions EPS Millions EPS Millions EPS Millions EPS
Operating Earnings $1,408 $ 2.21 $ 1,504 $ 2.28 $1,557 $ 2.26 $1,781 $ 2.53 $1,678 $ 2.56
After-tax items:
Net gain from sale of
non-Appalachian E&P business — — — — — — — — 2,139 3.27
Charges related to the E&P divestitures — — — — — — (5) (0.01) (506) (0.77)
Charges related to early retirement
of debt — — — — — — — — (148) (0.23)
Extraordinary item related to the
reapplication of SFAS No. 71 — — — — — — — — (158) (0.24)
Impairment of merchant generation
assets — — — — — — — — (270) (0.41)
Income (loss) from discontinued
operations of merchant generation
plants 7 0.01 (9) (0.01) (14) (0.02) (183) (0.26) (28) (0.04)
Dominion Capital related charges (84) (0.13) (64) (0.10) (22) (0.03) (91) (0.13) (65) (0.10)
Income (loss) related to
Telecom business (750) (1.18) (13) (0.02) 5 0.01 — — — —
Termination of power purchase and
sales contracts (65) (0.10) (155) (0.23) (52) (0.08) — — (137) (0.21)
Charges related to hurricanes (122) (0.19) (50) (0.08) (375) (0.54) (11) (0.02) — —
Net benefits (charges) related to
exiting certain businesses (32) (0.05) 51 0.08 10 0.01 (41) (0.05) (32) (0.05)
Other items (44) (0.07) (15) (0.03) (76) (0.11) (70) (0.10) 66 0.10
Total after-tax items (1,090) (1.71) (255) (0.39) (524) (0.76) (401) (0.57) 861 1.32
Reported Earnings (GAAP) $ 318 $ 0.50 $ 1,249 $ 1.89 $1,033 $ 1.50 $1,380 $ 1.96 $2,539 $ 3.88
* Prior years’ amounts have been recast to exclude certain discontinued operations from operating earnings and to reflect the November 2007 2-for-1 stock split.
Reconciliation of Operating Return on Equity
to Reported Return on Equity
2006 2007
Millions % Millions %
Common Shareholders’
Equity—13 mos. average $12,059 $11,508
Operating Earnings—
Twelve months ended* 1,781 1,678
Return on average common
equity—operating 14.8% 14.6%
Reported Earnings—
Twelve months ended 1,380 2,539
Return on average common
equity—reported 11.4% 22.1%
* See Reconciliation of Operating Earnings to Reported Earnings.