Dominion Power 2010 Annual Report Download - page 19

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Reconciliation of 2010 Segment Operating Earnings Proportion (non-GAAP) to Reported Earnings Proportion (GAAP)
Operating Earnings* Reported Earnings
Millions %Millions %
Dominion Virginia Power $448 20 $448 16
Dominion Generation 1,291 58 1,291 46
Dominion Energy 475 22 475 17
Primary operating segments $ 2,214 100 $2,214 79
Corporate and Other (243)594 21
Consolidated* $ 1,971 $2,808 100
* See Reconciliation of Operating Earnings to Reported Earnings
Reconciliation of Operating Earnings (non-GAAP) to Reported Earnings (GAAP)*
(Millions, Except Per Share Amounts) 2006 2007 2008 2009 2010
Operating Earnings (non-GAAP)** $ 1,734 $ 1,619 $ 1,837 $ 1,942 $1,971
Items excluded from operating earnings (after-tax):
Net benefit related to the sale of Appalachian E&P operations — — — — 1,383
Work force reduction program — — — — (206)
Reserve for rate refunds — — — (435)—
Impairment of merchant generation assets —(270) — — (127)
Income (loss) from discontinued operations (345)36 190 26 (155)
Impairment of gas and oil properties — — — (281)—
Net gain on sale of U.S. non-Appalachian E&P business —2,080 (26) — —
Charges related to the E&P divestitures (5)(506) — — —
Charges related to early retirement of debt —(148) — — —
Net gains (losses) or impairments related to
the decommissioning trusts (15)(19)(109) 2 12
Extraordinary item related to the reapplication of accounting
guidance for cost-based regulation —(158) — — —
Termination of power purchase and sales contracts —(137) — — —
Other items 11 42 (58)33 (70)
Total after-tax items(354)920 (3)(655)837
Reported Earnings (GAAP) $1,380 $2,539 $1,834 $1,287 $2,808
Earnings per common share – diluted:
Operating Earnings** $2.47 $2.47 $3.16 $3.27 $3.34
Items excluded from operating earnings (0.51)1.41 —(1.10)1.42
Reported Earnings $1.96 $3.88 $3.16 $2.17 $4.76
*Prior years’ amounts have been recast due to the reclassification of Peoples Natural Gas Company’s results to discontinued operations.
** Dominion uses operating earnings as the primary performance measurement of its earnings outlook and results for public communications with analysts and investors.
Dominion management believes operating earnings provide a more meaningful representation of the company’s fundamental earnings power.
Reconciliation of Operating Dividend Payout Ratio (non-GAAP) to Reported Dividend Payout Ratio (GAAP)
2010
Data per
Common Share %
Total dividends paid per common share $1.83
Operating Earnings – Twelve months ended* $3.34
Dividend payout ratio – operating 55%
Reported Earnings – Twelve months ended $4.76
Dividend payout ratio – reported 38%
* See Reconciliation of Operating Earnings to Reported Earnings
GAAP Reconciliation of 2011 Operating Earnings Guidance
In providing its full-year 2011 operating earnings guidance, the company notes that there could be differences between expected reported earnings and esti-
mated operating earnings for matters such as, but not limited to, divestitures or changes in accounting principles. At this time, Dominion management is not
able to estimate the impact, if any, of these items on reported earnings. Accordingly, the company is not able to provide a corresponding GAAP equivalent for
its operating earnings guidance.
Reconciliation of Regulated and Unregulated Operating Earnings Mix (non-GAAP) to Reported Earnings Mix (GAAP)
2006 2006 2010 2010
Operating As-Reported Operating As-Reported
Earnings* Earnings Earnings* Earnings
Millions % Millions % Millions % Millions %
Regulated* $732 42 $ 718 52 $1,404 71 $1,894 67
Unregulated & Other 1,002 58 662 48 567 29 914 33
Consolidated** $1,734 $1,380 $1,971 $2,808
*Excludes Peoples discontinued operations
** See Reconciliation of Operating Earnings to Reported Earnings