Dominion Power 2005 Annual Report Download - page 53

Dominion 2005 51
Selected Financial Data
2005(1) 2004(2) 2003(3) 2002 2001(4)
(millions, except per share amounts)
Operating revenue $18,041 $13,991 $12,095 $10,215 $10,560
Income from continuing operations before cumulative effect of changes in
accounting principles 1,034 1,264 949 1,362 544
Income (loss) from discontinued operations, net of tax(5) 5(15) (642) ——
Cumulative effect of changes in accounting principles, net of tax (6) — 11 ——
Net income 1,033 1,249 318 1,362 544
Income from continuing operations before cumulative effect of changes in accounting
principles per common share — basic 3.02 3.84 2.99 4.85 2.17
Net income per common share — basic 3.02 3.80 1.00 4.85 2.17
Income from continuing operations before cumulative effect of changes in accounting
principles per common share — diluted 3.00 3.82 2.98 4.82 2.15
Net income per common share — diluted 3.00 3.78 1.00 4.82 2.15
Dividends paid per share 2.68 2.60 2.58 2.58 2.58
Total assets 52,660 45,418 43,546 39,239 36,044
Long-term debt(6) 14,653 15,507 15,776 12,060 12,119
Preferred securities of subsidiary trusts(6) ——— 1,397 1,132
(1) Includes a $272 million after-tax loss related to the discontinuance of hedge accounting for certain gas and oil hedges, resulting from an interruption of gas and oil production in the Gulf of Mexico
caused by Hurricanes Katrina and Rita. Also in 2005, we adopted a new accounting standard that resulted in the recognition of the cumulative effect of a change in accounting principle. See Note 3 to
our Consolidated Financial Statements.
(2) Includes a $112 million after-tax charge related to our interest in a long-term power tolling contract that was divested in 2005 and a $61 million after-tax loss 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 during the
third quarter.
(3) Includes $122 million of after-tax incremental restoration expenses associated with Hurricane Isabel. Also in 2003, we adopted accounting standards that resulted in the recognition of the cumulative
effect of changes in accounting principles. See Note 3 to our Consolidated Financial Statements.
(4) Includes 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.
(5) Reflects the net impact of our discontinued telecommunications operations that were sold in May 2004. See Note 9 to our 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, we began reporting as long-term debt our junior subordinated notes held by five capital trusts, rather than the trust preferred securities issued by those trusts. See Note 3 to our
Consolidated Financial Statements.
credit ratings or the credit ratings of our Virginia Power and CNG
subsidiaries by Standard & Poor’s, Moody’s or Fitch could increase
our borrowing costs and adversely affect operating results and
could require us to post additional collateral in connection with
some of our trading and marketing activities.
Potential changes in accounting practices may adversely
affect our financial results. We cannot predict the impact that
future changes in accounting standards or practices may have on
public companies in general, the energy industry or our operations
specifically. New accounting standards could be issued that could
change the way we record revenues, expenses, assets and liabili-
ties. These changes in accounting standards could adversely affect
our 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 our operations. Implementation of
our growth strategy is dependent on our ability to recruit, retain and
motivate employees. Competition for skilled employees in some
areas is high and the inability to retain and attract these employees
could adversely affect our business and future financial condition.