OG&E 2010 Annual Report Download - page 35

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Ÿ An effective tax rate of 28 percent.
The Company has significant seasonality in its earnings. The Company typically shows minimal earnings in the first and
fourth quarters with a majority of earnings in the third quarter due to the seasonal nature of air conditioning demand.
Results of Operations
The following discussion and analysis presents factors that affected the Company’s results of operations for the years ended
December 31, 2010, 2009 and 2008 and the Company’s financial position at December 31, 2010 and 2009. The following information
should be read in conjunction with the Financial Statements and Notes thereto. Known trends and contingencies of a material nature
are discussed to the extent considered relevant.
Year ended December 31 (In millions) 2010 2009 2008
Operating income $ 413.7 $ 354.1 $ 278.3
Net income $ 215.7 $ 200.4 $ 143.0
In reviewing its operating results, the Company believes that it is appropriate to focus on operating income as reported in its
Statements of Income as operating income indicates the ongoing profitability of the Company excluding the cost of capital and income
taxes.
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