Dominion Power 2011 Annual Report Download - page 24

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Reconciliation of Operating Earnings (non-GAAP) to Reported Earnings (GAAP)
(Millions, Except Per Share Amounts) 2007 2008 2009 2010 2011
Operating Earnings (non-Gaap)* $ 1,619 $ 1,837 $ 1,942 $ 1,971 $1,754
Items excluded from operating earnings (after-tax):
Impairment of generation assets (270) — — (127) (178)
Hurricane costs — — — —(59)
Net benefit related to the sale of Appalachian E&P operations — — — 1,383 —
Work force reduction program — — — (206) —
Income (loss) from discontinued operations 36 190 26 (155) —
Reserve for rate settlement — — (435) — —
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 (506) — — — —
Charges related to early retirement of debt (148) — — — —
Extraordinary item related to the reapplication of accounting
guidance for cost-based regulation (158) — — —
—
—
Termination of power purchase and sales contracts (137) — — — —
Other items 23 (167) 35 (58) (109)
Total after-tax items 920 (3) (655) 837 (346)
Reported Earnings (GAAP) $ 2,539 $ 1,834 $ 1,287 $ 2,808 $1,408
Earnings per common share — diluted:
Operating Earnings* $ 2.47 $ 3.16 $ 3.27 $ 3.34 $ 3.05
Items excluded from operating earnings 1.41 — (1.10) 1.42 (0.60)
Reported Earnings $ 3.88 $ 3.16 $ 2.17 $ 4.76 $ 2.45
* 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.
GAAP Reconciliation of 2012 Operating Earnings Guidance
In providing its full-year 2012 operating earnings guidance, the company notes that there could be differences between expected reported earnings and estimated
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 aggregate 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 2011 Segment Operating Earnings Proportion (non-GAAP) to Reported Earnings Proportion (GAAP)
Operating Earnings* Reported Earnings
Millions % Millions %
Dominion Virginia Power $ 501 25 $ 501 36
Dominion Generation 1,003 49 1,003 71
Dominion Energy 521 26 521 37
Primary operating segments $ 2,025 100 $ 2,025 144
Corporate and Other (271) (617) (44)
Consolidated* $ 1,754 $ 1,408 100
* See Reconciliation of Operating Earnings to Reported Earnings
Reconciliation of Regulated and Unregulated Operating Earnings Mix (non-GAAP) to Reported Earnings Mix (GAAP)
2011 Operating
Earnings*
2011 As-Reported
Earnings
Millions % Millions %
Regulated $1,522 87 $1,264 90
Unregulated & Other 232 13 144 10
Consolidated* $1,754 $1,408
* See Reconciliation of Operating Earnings to Reported Earnings
Reconciliation of Operating Dividend Payout Ratio (non-GAAP) to Reported Dividend Payout Ratio (GAAP)
2011
Data per
Common Share
%
Total dividends paid per common share $1.97
Operating Earnings — Twelve months ended* $3.05
Dividend payout ratio —operating 65%
Reported Earnings — Twelve months ended $2.45
Dividend payout ratio — reported 80%
* See Reconciliation of Operating Earnings to Reported Earnings