Dominion Power 2005 Annual Report Download - page 27

Dominion 2005 25
Reconciliation of Measures Prepared in Accordance with Generally Accepted Accounting
Principles (GAAP) Versus Non-GAAP Measures 1
Ratio of Total Debt to Total Capitalization
GAAP Measure Adjusted GAAP Measure Adjusted
at 12/31/04 at 12/31/04 at 12/31/05 at 12/31/05
(dollars in millions)
Securities due within one year $ 1,368 $ 1,368 $ 2,330 $ 2,330
Short-term debt 573 573 1,618 1,618
Long-term debt:
Equity-linked debt securities 330 330 330 330
Junior subordinated debentures 1,429 1,416
Other long-term debt 13,748 13,748 12,907 12,907
Long-term debt–total 15,507 14,078 14,653 13,237
Total debt 17,448 59.9%16,019 54.4%18,601 63.6%17,185 58.1%
Preferred stock 257 257 257 257
Junior subordinated debentures 1,429 1,416
Common shareholders' equity:
Common stock 10,888 10,888 11,286 11,286
Other paid-in capital 92 92 125 125
Retained earnings 1,442 1,442 1,550 1,550
Accumulated other comprehensive loss (996) (996) (2,564) (2,564)
Common shareholders’ equity—total 11,426 11,426 10,397 10,397
Equity-linked debt securities 330 330
Total equity and preferred stock 11,683 40.1%13,442 45.6% 10,654 36.4%12,400 41.9%
Total capitalization $29,131 $ 29,461 $ 29,255 $29,585
(1) Regulation G of the SEC’s rules require reconciliations to U.S. GAAP measures for certain publicly disclosed financial information. This schedule is presented to meet the requirements of
Regulation G. The ratios presented based on U.S. GAAP amounts are not measures that are normally used by Dominion in assessing performance.
Consolidated Dominion Resources, Inc.—Reconciliation of Operating Earnings to Reported Earnings (GAAP)
2001 2002 2003 2004 2005
Millions EPS Millions EPS Millions EPS Millions EPS Millions EPS
Operating Earnings $ 1,053 $ 4.17 $ 1,365 $ 4.83 $ 1,449 $ 4.55 $ 1,523 $ 4.61 $ 1,558 $ 4.53
After-tax items:
Telecom related charges (750) (2.35) (13) (0.04) 5 0.02
Dominion Capital related charges (208) (0.83) (8) (0.03) (81) (0.25) (61) (0.18) (22) (0.06)
Termination of power purchase contracts (136) (0.54) — — (65) (0.20) (43) (0.13) (44) (0.13)
Restructuring of certain electric sales contracts — — — — (39) (0.12) — — — —
Charges related to Hurricanes — — — — (122) (0.38) (50) (0.15) (375) (1.09)
Restructuring and acquisition-related charges (68) (0.27) 5 0.02 — — — — — —
Charges related to exiting certain businesses — — — — (69) (0.22) (86) (0.27) (12) (0.04)
Other asset impairments (97) (0.38) — — — — (5) (0.01) (68) (0.20)
Cumulative effect of changes in
accounting principles — — — — 11 0.03 — — (6) (0.02)
Other items — — — — (16) (0.06) (16) (0.05) (3) (0.01)
Total after-tax items (509) (2.02) (3) (0.01) (1,131) (3.55) (274) (0.83) (525) (1.53)
Reported Earnings (GAAP) $ 544 $ 2.15 $ 1,362 $ 4.82 $ 318 $ 1.00 $ 1,249 $ 3.78 $ 1,033 $ 3.00
Reconciliation of Operating Return on Equity to Reported Return on Equity
2005 2004
Millions % Millions %
Common Shareholders’ Equity–13 mos. average $10,693 $10,552
Operating Earnings–Twelve months ended* 1,558 1,523
Return on average common equity–operating 14.6% 14.4%
Reported Earnings–Twelve months ended 1,033 1,249
Return on average common equity–reported 9.7% 11.8%
* See Reconciliation of Operating Earnings to Reported Earnings.
For factors that could cause actual results to differ, see Forward-Looking Statements, Risk Factors, and Market Risk Sensitive Instruments and Risk Management in Management’s Discussion and
Analysis of Financial Condition and Results of Operations in this report.