Dominion Power 2004 Annual Report Download - page 55

D 2004/Page 53
Selected Financial Data
2004(1) 2003(2) 2002 2001(3) 2000(4)
(millions, except per share amounts)
Operating revenue $13,972 $12,078 $10,218 $10,558 $ 9,246
Income from continuing operations before cumulative effect of changes in
accounting principles 1,264 949 1,362 544 415
Loss from discontinued operations, net of taxes(5) (15) (642) ———
Cumulative effect of changes in accounting principles, net of taxes — 11 — — 21
Net income 1,249 318 1,362 544 436
Income from continuing operations before cumulative effect of changes in accounting
principles per common share — basic 3.84 2.99 4.85 2.17 1.76
Net income per common share — basic 3.80 1.00 4.85 2.17 1.85
Income from continuing operations before cumulative effect of changes in accounting
principles per common share — diluted 3.82 2.98 4.82 2.15 1.76
Net income per common share — diluted 3.78 1.00 4.82 2.15 1.85
Dividends paid per share 2.60 2.58 2.58 2.58 2.58
Total assets 45,446 43,546 39,239 36,044 30,449
Long-term debt(6) 15,507 15,776 12,060 12,119 10,101
Preferred securities of subsidiary trusts(6) —— 1,397 1,132 385
(1) Dominion’s 2004 results include a $112 million after-tax charge reflecting Dominion’s valuation of its interest in a long-term power tolling contract and $61 million of after-tax losses related to the
discontinuance of hedge accounting for certain oil hedges, resulting from an interruption of oil production in the Gulf of Mexico caused by Hurricane Ivan, and subsequent changes in the fair value of
those hedges.
(2) Dominion’s 2003 results include $122 million of after-tax incremental restoration expenses associated with Hurricane Isabel. Also in 2003, Dominion adopted accounting standards that resulted in the
recognition of the cumulative effect of changes in accounting principles. See Note 3 to the Consolidated Financial Statements.
(3) Dominion’s 2001 results include a $97 million after-tax charge representing exposure to the Enron Corp. bankruptcy and $68 million of after-tax charges associated with a senior management
restructuring initiative.
(4) Dominion’s 2000 results include $198 million of after-tax restructuring and other acquisition-related costs resulting from the merger with Consolidated Natural Gas Company.
(5) Reflects the net impact of Dominion’s discontinued telecommunications operations that were sold in May 2004. See Note 9 to the Consolidated Financial Statements.
(6) Upon adoption of Financial Accounting Standards Board Interpretation No. 46 (revised December 2003), Consolidation of Variable Interest Entities, on December 31, 2003 with respect to special
purpose entities, Dominion began reporting as long-term debt its junior subordinated notes held by five capital trusts, rather than the trust preferred securities issued by those trusts. See Note 3 to the
Consolidated Financial Statements.
accounting standards could be issued that could change the way Dominion
records revenues, expenses, assets and liabilities. These changes in
accounting standards could adversely affect Dominion’s reported earnings
or could increase reported liabilities.
Failure to retain and attract key executive officers and other skilled
professional and technical employees could have an adverse effect on the
operations of Dominion. Implementation of Dominion’s growth strategy is
dependent on its ability to recruit, retain and motivate employees. Compe-
tition for skilled employees in some areas is high and the inability to retain
and attract these employees could adversely affect Dominion’s business
and future financial condition.