Duke Energy 2006 Annual Report Download - page 13

FINANCIAL HIGHLIGHTS a
(In millions, except per-share amounts) 2006 2005 2004 2003 c 2002
Statement of Operations
Operating revenues $ 15,184 $ 16,297 $ 19,596 $ 17,623 $ 14,757
Operating expenses 12,493 13,416 16,441 16,632 12,313
Gains on sales of investments in commercial and multi-family real estate 201 191 192 84 106
Gains (losses) on sales of other assets and other, net 276 534 (416) (199) 32
Operating income 3,168 3,606 2,931 876 2,582
Other income and expenses, net 1,008 1,809 304 550 352
Interest expense 1,253 1,066 1,282 1,331 1,116
Minority interest expense 61 538 200 62 91
Earnings from continuing operations before income taxes 2,862 3,811 1,753 33 1,727
Income tax expense (benefit) from continuing operations 843 1,282 507 (52) 544
Income from continuing operations 2,019 2,529 1,246 85 1,183
(Loss) income from discontinued operations, net of tax (156) (701) 244 (1,246) (149)
Income (loss) before cumulative effect of change in accounting principle 1,863 1,828 1,490 (1,161) 1,034
Cumulative effect of change in accounting principle,
net of tax and minority interest — (4) — (162) —
Net income (loss) 1,863 1,824 1,490 (1,323) 1,034
Dividends and premiums on redemption of preferred and preference stock — 12 9 15 13
Earnings (loss) available for common stockholders $ 1,863 $ 1,812 $ 1,481 $ (1,338) $ 1,021
Ratio of Earnings to Fixed Charges d 3.2 4.7 2.3 — b 2.0
Common Stock Data
Shares of common stock outstanding e
Year-end 1,257 928 957 911 895
Weighted average – basic 1,170 934 931 903 836
Weighted average – diluted 1,188 970 966 904 838
Earnings (loss) per share
Basic $ 1.59 $ 1.94 $ 1.59 $ (1.48) $ 1.22
Diluted $ 1.57 $ 1.88 $ 1.54 $ (1.48) $ 1.22
Dividends per share $ 1.26 $ 1.17 $ 1.10 $ 1.10 $ 1.10
Balance Sheet
Total assets $ 68,700 $ 54,723 $ 55,770 $ 57,485 $ 60,122
Long-term debt including capital leases, less current maturities $ 18,118 $ 14,547 $ 16,932 $ 20,622 $ 20,221
Capitalization
Common equity 55% 50% 45% 37% 36%
Preferred stock 0% 0% 0% 0% 1%
Trust preferred securities 0% 0% 0% 0% 3%
Total common equity and preferred securities 55% 50% 45% 37% 40%
Minority interests 2% 2% 4% 5% 5%
Total debt 43% 48% 51% 58% 55%
a Significant transactions reflected in the results above include: 2006 merger with Cinergy (see Note 2 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K, “Acquisitions and
Dispositions”), 2006 Crescent joint venture transaction and subsequent deconsolidation effective September 7, 2006 (see Note 2 to the Consolidated Financial Statements in Duke Energy’s 2006
Form 10-K, “Acquisitions and Dispositions”), 2005 DENA disposition (see Note 13 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K, “Discontinued Operations and Assets
Held for Sale”), 2005 deconsolidation of DEFS effective July 1, 2005 (see Note 2 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K, “Acquisitions and Dispositions”), 2005
DEFS sale of TEPPCO (see Note 2 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K, “Acquisitions and Dispositions”) and 2004 DENA sale of the Southeast plants (see
Note 2 to the Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K, “Acquisitions and Dispositions”).
b Earnings were inadequate to cover fixed charges by $241 million for the year ended December 31, 2003.
c As of January 1, 2003, Duke Energy adopted the remaining provisions of Emerging Issues Task Force (EITF) 02-03, “Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes
and for Contracts Involved in Energy Trading and Risk Management Activities” (EITF 02-03) and SFAS No. 143, “Accounting for Asset Retirement Obligations” (SFAS No. 143). In accordance with
the transition guidance for these standards, Duke Energy recorded a net-of-tax and minority interest cumulative effect adjustment for change in accounting principles. (See Note 1 to the Consolidated
Financial Statements in Duke Energy’s 2006 Form 10-K, “Summary of Significant Accounting Policies,” for further discussion.)
d Includes pre-tax gains of approximately $0.9 billion, net of minority interest, related to the sale of TEPPCO GP and LP in 2005 (see Note 2 to the Consolidated Financial Statements in Duke Energy’s
2006 Form 10-K, “Acquisitions and Dispositions”).
e 2006 increase primarily attributable to issuance of approximately 313 million shares in connection with Duke Energy’s merger with Cinergy (see Note 2 to the Consolidated Financial Statements in
Duke Energy’s 2006 Form 10-K, “Acquisitions and Dispositions”).
See Notes to Consolidated Financial Statements in Duke Energy’s 2006 Form 10-K.
DUKE ENERGY 2006 SUMMARY ANNUAL REPORT 11