Xcel Energy 2005 Annual Report Download - page 25

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STATEMENT OF OPERATIONS ANALYSIS –DISCONTINUED OPERATIONS (NET OF TAX)
A summary of the various components of discontinued operations is as follows for the years ended Dec. 31:
2005 2004 2003
Income (loss) in millions
Viking Gas Transmission Co. $– $1.3 $21.9
Black Mountain Gas –– 2.4
Cheyenne Light, Fuel and Power Co. 0.2 (10.3) 2.5
Regulated utility segments – income (loss) 0.2 (9.0) 26.8
NRG segment – loss (1.1) – (251.4)
NRG-related tax benefits (expense) 17.2 (12.8) 404.4
Xcel Energy International 0.1 7.3 (45.5)
e prime (0.1) (1.8) (17.8)
Seren 1.8 (156.6) (18.3)
Utility Engineering / Quixx Corp. (4.4) 4.7 3.0
Other 0.2 1.9 (1.6)
Nonregulated/other – income (loss) 14.8 (157.3) 324.2
Total income (loss) from discontinued operations $13.9 $(166.3) $ 99.6
Income (loss) per share
Viking Gas Transmission Co. $– $ – $ 0.05
Black Mountain Gas –– 0.01
Cheyenne Light, Fuel and Power Co. –(0.02) –
Regulated utility segments – income per share –(0.02) 0.06
NRG segment – loss per share –– (0.60)
NRG-related tax benefits (expense) 0.04 (0.03) 0.96
Xcel Energy International –0.02 (0.11)
e prime –– (0.04)
Seren –(0.37) (0.04)
Utility Engineering / Quixx Corp. (0.01) 0.01 0.01
Other –––
Nonregulated/other – income (loss) per share 0.03 (0.37) 0.78
Total income (loss) per share from discontinued operations $0.03 $ (0.39) $ 0.24
REGULATED UTILITY RESULTS –DISCONTINUED OPERATIONS
In January 2004, Xcel Energy agreed to sell Cheyenne. Consequently, Xcel Energy reported Cheyenne results as a component of discontinued
operations for all periods presented. The sale was completed in January 2005 and resulted in an after-tax loss of approximately $13 million,
or 3 cents per share, which was accrued in December 2004.
During 2003, Xcel Energy sold Viking and BMG. After-tax disposal gains of $23.3 million, or 6 cents per share, were recorded primarily related
to the sale of Viking. Xcel Energy recorded minimal income related to Viking in 2003, due to its sale in January of that year.
NRG RESULTS –DISCONTINUED OPERATIONS
Xcel Energy’s share of NRG results for 2003 is shown as a component of discontinued operations due to NRG’s emergence from bankruptcy
in December 2003 and Xcel Energy’s corresponding divestiture of its ownership interest in NRG. Xcel Energy financial statements do not
contain any results of NRG operations in 2005 and 2004.
NRG’s results included in Xcel Energy’s earnings for 2003 were as follows:
(Millions of dollars) Six months ended June 30, 2003
Total NRG loss $(621)
Losses not recorded by Xcel Energy under the equity method
*
370
Equity in losses of NRG included in Xcel Energy results for 2003 $(251)
* These represent NRG losses incurred in the first and second quarters of 2003 that were in excess of the amounts recordable by Xcel Energy under
the equity method of accounting limitations.
As of the bankruptcy filing date (May 14, 2003), Xcel Energy had recognized $263 million of NRG’s impairments and related charges as these
charges were recorded by NRG prior to May 14, 2003. Consequently, Xcel Energy recorded its equity in NRG results in excess of its financial
commitment to NRG under the settlement agreement reached in March 2003 among Xcel Energy, NRG and NRG’s creditors. These excess
losses were reversed upon NRG’s emergence from bankruptcy in December 2003.
XCEL ENERGY 2005 ANNUAL REPORT 23
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS