Dominion Power 2002 Annual Report Download - page 25

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23
Dominion ’02 Annual Report
Identification of 2002, 2001 Earnings Adjustments
Operating earnings for the 12 months ended December 31, 2002, of $4.83 per share ($1.365 billion)
exclude the following after-tax items: a charge of 3 cents per share ($8 million) related to a Dominion
Capital asset impairment; and a positive adjustment of 2 cents per share ($5 million) to restructuring
liabilities accrued in 2001, reflecting a reduction in the amounts originally expected to be incurred.
Including the impact of these items, reported earnings for the 12 months ended December 31, 2002 were
$4.82 per share ($1.362 billion).
Operating earnings for the 12 months ended 2001 of $4.17 per share ($1.053 billion)
exclude the following after-tax items: a charge of 38 cents per share ($97 million) resulting from
Dominion’s estimated Enron exposure; 54 cents per share ($136 million) related to the buyout of power
purchase contracts and non-utility generating units previously serving the company under long-term
contracts; 10 cents per share ($25 million) associated with the divestiture of Saxon Capital Inc.;
27 cents per share ($68 million) in restructuring charges associated with a senior management restructur-
ing initiative announced in November of 2001 and other restructuring costs; and 73 cents per share
($183 million) from a write-down of Dominion Capital assets. Including the impact of these items,
reported earnings for the 12 months ended 2001 were $2.15 per share ($544 million).
Operating results for the 12 months ended December 31, 1999, of $3.01 per share
($577 million) exclude the following after-tax items: a charge of $1.33 per share ($255 million) for
the write-off of regulatory assets and liabilities created by an accounting change resulting from a Virginia
law, effective July 1, 1999, which establishes a timeline for competition among electric generators;
an 11 cent per share ($21 million) charge related to the sale of the company’s Latin American power
generation businesses; transition costs of 2 cents per share ($4 million) associated with the company’s
merger with Consolidated Natural Gas; and 7 cents per share related to the dilutive effect of an equity
swap. Including the impact of these items, reported earnings for the 12 months ended 1999 were
$1.48 per share ($297 million).
Page 3 and page 6 2002 reported earnings per share of $4.82 were 124% higher than
2001 reported earnings per share of $2.15 as compared to a 16% increase in operating earnings per share.
Page 3 2002 reported earnings per share of $4.82 were 226% higher than 1999
(pre-CNG) reported earnings per share of $1.48.
The proportion of operating segment earnings referenced on pages 5 and 6 are approxi-
mations and exclude the corporate and other segment. The percentage of as-reported earnings of
$1.362 billion by segment is as follows: Delivery ($455 million or 33 percent), E&P ($380 million or
28 percent), Energy ($770 million or 57 percent), and corporate/other (-$243 million or -18 percent).