Dominion Power 2007 Annual Report Download - page 65

Consolidated Statements of Income
Year Ended December 31, 2007 2006 2005
(millions, except per share amounts)
Operating Revenue $15,674 $16,297 $17,809
Operating Expenses
Electric fuel and energy purchases 3,511 3,236 4,670
Purchased electric capacity 439 481 504
Purchased gas 2,766 2,937 3,941
Other energy-related commodity purchases 252 1,022 1,391
Other operations and maintenance 4,854 3,178 2,980
Gain on sale of U.S. non-Appalachian E&P business (3,635) ——
Depreciation, depletion and amortization 1,368 1,557 1,359
Other taxes 552 568 577
Total operating expenses 10,107 12,979 15,422
Income from operations 5,567 3,318 2,387
Other income 102 173 163
Interest and related charges:
Interest expense(1) 1,032 888 822
Interest expense—junior subordinated notes payable(2) 127 124 106
Subsidiary preferred dividends 16 16 16
Total interest and related charges 1,175 1,028 944
Income from continuing operations before income tax expense, minority interest, extraordinary
item and cumulative effect of change in accounting principle 4,494 2,463 1,606
Income tax expense 1,783 927 573
Minority interest 66—
Income from continuing operations before extraordinary item and cumulative effect of change in
accounting principle 2,705 1,530 1,033
Income (loss) from discontinued operations(3) (8) (150) 6
Extraordinary item(4) (158) ——
Cumulative effect of change in accounting principle(5) —— (6)
Net Income $ 2,539 $ 1,380 $ 1,033
Earnings Per Common Share—Basic(6):
Income from continuing operations before extraordinary item and cumulative effect of change in
accounting principle $ 4.15 $ 2.19 $ 1.51
Income (loss) from discontinued operations (0.01) (0.22) 0.01
Extraordinary item (0.24) ——
Cumulative effect of change in accounting principle —— (0.01)
Net income $ 3.90 $ 1.97 $ 1.51
Earnings Per Common Share—Diluted(6):
Income from continuing operations before extraordinary item and cumulative effect of change in
accounting principle $ 4.13 $ 2.17 $ 1.50
Income (loss) from discontinued operations (0.01) (0.21) 0.01
Extraordinary item (0.24) ——
Cumulative effect of change in accounting principle —— (0.01)
Net income $ 3.88 $ 1.96 $ 1.50
Dividends paid per common share $ 1.46 $ 1.38 $ 1.34
(1) In 2007, we incurred $242 million of expenses associated with the completion of a debt tender offer, $234 million of which is included in Interest expense.
(2) Includes $73 million, $104 million and $106 million incurred with affiliated trusts in 2007, 2006 and 2005, respectively.
(3) Net of income tax expense (benefit) of $115 million, ($107) million and $13 million in 2007, 2006 and 2005, respectively. The 2007 expense includes $76
million and $56 million for U.S. federal and Canadian taxes, respectively, related to the gain on the sale of the Canadian E&P operations.
(4) Net of income tax benefit of $101 million in 2007.
(5) Net of income tax benefit of $4 million in 2005.
(6) All per share amounts have been adjusted to reflect a two-for-one stock split distributed in November 2007.
The accompanying notes are an integral part of our Consolidated Financial Statements.
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