Vectren 2010 Annual Report Download - page 61

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Long-Term Debt Puts
Certain long-term debt issues contain put and call provisions that can be exercised on various dates before maturity. Other than
certain instruments that can be put to the company upon the death of the holder (death puts), these put or call provisions are not
triggered by specific events, but are based upon dates stated in the note agreements. During 2010, 2009 and 2008, the
Company repaid approximately $1.8 million, $3.0 million, and $1.6 million, respectively, related to death puts. Debt which may
be put to the Company for reasons other than a death during the years following 2010 (in millions) is $30.0 in 2011, zero in 2012
and thereafter. Investors had the one-time option to put $10 million in May 2010; however, no notice was received during the
notification period and such debt is classified as long-term at December 31, 2010. Debt that can be put to the Company within
one year or that is supported by a credit facility that expires within one year is classified in current liabilities in Long-term debt
subject to tender.
Investing Cash Flow
Cash flow required for investing activities was $269.0 million in 2010, $431.1 million in 2009, and $402.4 million in 2008. Capital
expenditures are the primary component of investing activities and totaled $277.2 million in 2010, $432.0 million in 2009
compared to $391.0 million in 2008. The decrease in capital expenditures in 2010 compared to 2009 reflects the roughly $20
million spent in 2009 associated with the January 2009 ice storm restoration projects and approximately $55 million in lower
other utility capital spending as well as approximately $90 million in lower expenditures relating to Coal Mining, primarily
Oaktown mine development costs. The increase in capital expenditures in 2009 compared to 2008 reflects increased
expenditures for coal mine development and the ice storm. Other investments in 2009 and 2008 include minor acquisitions by
Miller, among other items.
Forward-Looking Information
A “safe harbor” for forward-looking statements is provided by the Private Securities Litigation Reform Act of 1995 (Reform Act of
1995). The Reform Act of 1995 was adopted to encourage such forward-looking statements without the threat of litigation,
provided those statements are identified as forward-looking and are accompanied by meaningful cautionary statements
identifying important factors that could cause the actual results to differ materially from those projected in the statement. Certain
matters described in Management’s Discussion and Analysis of Results of Operations and Financial Condition are forward-
looking statements. Such statements are based on management’s beliefs, as well as assumptions made by and information
currently available to management. When used in this filing, the words “believe”, “anticipate”, “endeavor”, “estimate”, “expect”,
“objective”, “projection”, “forecast”, “goal”, “likely”, and similar expressions are intended to identify forward-looking statements.
In addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements,
factors that could cause the Company’s actual results to differ materially from those contemplated in any forward-looking
statements include, among others, the following:
 Factors affecting utility operations such as unusual weather conditions; catastrophic weather-related damage; unusual
maintenance or repairs; unanticipated changes to fossil fuel costs; unanticipated changes to gas transportation and storage
costs, or availability due to higher demand, shortages, transportation problems or other developments; environmental or
pipeline incidents; transmission or distribution incidents; unanticipated changes to electric energy supply costs, or
availability due to demand, shortages, transmission problems or other developments; or electric transmission or gas
pipeline system constraints.
 Catastrophic events such as fires, earthquakes, explosions, floods, ice storms, tornados, terrorist acts or other similar
occurrences could adversely affect Vectren’s facilities, operations, financial condition and results of operations.
 Increased competition in the energy industry, including the effects of industry restructuring and unbundling.
 Regulatory factors such as unanticipated changes in rate-setting policies or procedures, recovery of investments and costs
made under traditional regulation, and the frequency and timing of rate increases.
 Financial, regulatory or accounting principles or policies imposed by the Financial Accounting Standards Board; the
Securities and Exchange Commission; the Federal Energy Regulatory Commission; state public utility commissions; state
entities which regulate electric and natural gas transmission and distribution, natural gas gathering and processing, electric
power supply; and similar entities with regulatory oversight.
 Economic conditions including the effects of an economic downturn, inflation rates, commodity prices, and monetary
fluctuations.
 Economic conditions surrounding the current economic uncertainty, including significantly lower levels of economic activity;
uncertainty regarding energy prices and the capital and commodity markets; volatile changes in the demand for natural gas,