Dominion Power 2013 Annual Report Download - page 18

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RECONCILIATION OF OPERATING EARNINGS (NON-GAAP) TO REPORTED EARNINGS (GAAP)*
(Millions, Except Per Share Amounts) 2009 2010 2011 2012 2013
Operating Earnings (non-GAAP)** $ 1,981 $ 1,929 $ 1,743 $ 1,774 $ 1,881
Items excluded from operating earnings (after-tax):
Income (loss) from discontinued operations (14) (248) (58) (1,125) (92)
Impairment of generation assets — — (139) (269)
Net benefit related to the sale of Appalachian E&P operations — 1,383 — —
Workforce reduction program — (199) — —
Reserve for rate settlement (435) — — —
Impairment of gas and oil properties (281) — — —
Other items 36 (57) (138) (78) (92)
Total after-tax items (694) 879 (335) (1,472) (184)
Reported Earnings (GAAP) $ 1,287 $ 2,808 $ 1,408 $ 302 $ 1,697
Earnings per common share — diluted:
Operating Earnings** $ 3.34 $ 3.27 $ 3.03 $ 3.09 $ 3.25
Items excluded from operating earnings ( 1. 1 7) 1.49 (0.58) (2.56) (0.32)
Reported Earnings $ 2 .1 7 $ 4.76 $ 2.45 $ 0.53 $2.93
* Prior years’ amounts have been recast to reflect the results of Brayton Point and Kincaid as discontinued operations.
** Dominion uses operating earnings as the primary performance measurement of its earnings outlook and results for public communications with analysts and investors.
Dominion management believes operating earnings provide a more meaningful representation of the company’s fundamental earnings power.
GAAP Reconciliation of 2014 Operating Earnings Guidance
In providing its full-year 2014 operating earnings guidance, the company notes that there could be dierences between expected reported (GAAP) earnings
and estimated operating earnings for matters such as, but not limited to, acquisitions, divestitures or changes in accounting principles. At this time, Dominion
management is currently not able to estimate the aggregate impact, if any, of these items on reported earnings. Accordingly, Dominion is not able to provide
a corresponding GAAP equivalent for its operating earnings guidance.
RECONCILIATION OF OPERATING DIVIDEND PAYOUT RATIO (NON-GAAP) TO REPORTED DIVIDEND PAYOUT RATIO (GAAP)
2013
Data per
Common Share
%
Total dividends paid per common share $2.25
Operating Earnings— Twelve months ended* $3.25
Dividend payout ratio —operating 69%
Reported Earnings— Twelve months ended $2.93
Dividend payout ratio — reported 77%
* See Reconciliation of Operating Earnings to Reported Earnings
22 DOMINION RESOURCES, INC.