Xcel Energy 2002 Annual Report Download - page 45

Year Ended Year Ended Year Ended
Dec. 31 Dec. 31 Dec. 31
(Thousands of dollars) 2002 2001 2000
Operating revenue $ 729,408 $597,181 $347,848
Operating and other expenses 1,300,131 544,837 310,007
Pretax (loss)/income from operations of discontinued components (570,723) 52,344 37,841
Income tax (benefit)/expense (8,296) 5,352 5,835
(Loss)/income from operations of discontinued components (562,427) 46,992 32,006
Estimated pretax gain on disposal of discontinued components 2,814 ––
Income tax (benefit)/expense (2,992) ––
Gain on disposal of discontinued components 5,806 ––
Net (loss)/income on discontinued operations $(556,621) $ 46,992 $ 32,006
Special charges from discontinued operations included in Operating and Other Expenses previously include the following:
(Thousands of dollars) 2002 2001 2000
Asset impairments
Killingholme $ 477,868 $ – $ –
Hsin Yu 121,864 ––
599,732 ––
Severance and other charges 7,389 ––
Total special charges $ 607,121 $ – $ –
These impairment charges relate to assets considered held for sale under SFAS No. 144, as of Dec. 31, 2002. In January 2003, Killingholme
was transferred to the project lenders. Hsin Yu has historically operated at a loss and its funding has been discontinued as of Dec. 31, 2002.
The fair values represent discounted cash flows over the remaining life of each project and reflect project-specific assumptions for long-term
power pool prices, escalated future project operating costs and expected plant operation given assumed market conditions.
The major classes of assets and liabilities held for sale are as follows as of Dec. 31:
(Thousands of dollars) 2002 2001
Cash $23,911 $ 99,171
Receivables, net 28,220 129,220
Derivative instruments valuation – at market 29,795 38,996
Other current assets 26,609 49,234
Current assets held for sale 108,535 316,621
Property, plant and equipment, net 274,544 1,383,690
Derivative instruments valuation – at market 87,803 83,588
Other noncurrent assets 17,425 62,900
Noncurrent assets held for sale 379,772 1,530,178
Current portion of long-term debt 445,656 289,269
Accounts payable – trade 55,707 97,654
Other current liabilities 18,738 42,510
Current liabilities held for sale 520,101 429,433
Long-term debt 73 561,927
Deferred income tax 129,640 154,573
Derivative instruments valuation – at market 12,302 15,131
Other noncurrent liabilities 13,947 51,666
Noncurrent liabilities held for sale $155,962 $783,297
Included in other noncurrent assets held for sale is approximately $27 million, net of $3.6 million of amortization, of goodwill and
$11 million, net of $1.9 million of amortization, of intangible assets as of Dec. 31, 2002. There are no amounts of goodwill or intangible
assets included in noncurrent assets held for sale.
losses related to nrg equity investments
As of Dec. 31, 2002, several projects of NRG incurred losses related to disposal transactions or asset impairments. In the accompanying
financial statements, the operating results of these projects are classified in equity earnings from investments in affiliates, and write-downs
of the carrying amount of the investments and losses on disposal have been classified and reported as a component of write-downs and
disposal losses from investments. During 2002, NRG recorded write-downs and losses on disposal of $196.2 million of equity investments
as follows:
notes to consolidated financial statements
xcel energy inc. and subsidiaries page 59