EX-99.(B) 11 efhcorp-2012630xexhibit99b.htm ADJUSTED EBITDA RECONCILIATION ENERGY FUTURE HOLDINGS CORP. EFHCorp-2012.6.30-Exhibit 99(b)


Exhibit 99(b)

Energy Future Holdings Corp. Consolidated
Adjusted EBITDA Reconciliation
(millions of dollars)

 
Six Months Ended
June 30, 2012
 
Six Months Ended
June 30, 2011
 
Twelve Months Ended
June 30, 2012
 
Twelve Months Ended
June 30, 2011
Net loss
$
(1,000
)
 
$
(1,066
)
 
$
(1,847
)
 
$
(3,807
)
Income tax benefit
(583
)
 
(599
)
 
(1,118
)
 
(175
)
Interest expense and related charges
1,804

 
1,945

 
4,153

 
3,425

Depreciation and amortization
679

 
740

 
1,438

 
1,455

EBITDA
$
900

 
$
1,020

 
$
2,626

 
$
898

Oncor distributions/dividends
69

 
32

 
153

 
114

Interest income
(1
)
 
(2
)
 
(1
)
 
(3
)
Amortization of nuclear fuel
83

 
69

 
156

 
145

Purchase accounting adjustments (a)
41

 
138

 
107

 
234

Impairment of goodwill
—

 
—

 
—

 
4,100

Impairment and write-down of other assets (b)
1

 
1

 
433

 
14

Debt extinguishment gains
—

 
(25
)
 
(26
)
 
(1,696
)
Net income attributable to noncontrolling interests
—

 
—

 
—

 
(1
)
Equity in earnings of unconsolidated subsidiary
(141
)
 
(122
)
 
(305
)
 
(276
)
Unrealized net loss resulting from hedging and trading transactions
765

 
385

 
322

 
13

Amortization of "day one" net loss on Sandow 5 power purchase agreement
—

 
—

 
—

 
(11
)
Noncash compensation expense (c)
7

 
3

 
17

 
8

Severance expense
1

 
5

 
3

 
5

Transition and business optimization costs (d)
19

 
14

 
44

 
18

Transaction and merger expenses (e)
19

 
18

 
38

 
41

Restructuring and other (f)
(4
)
 
73

 
(4
)
 
(42
)
Expenses incurred to upgrade or expand a generation station (g)
60

 
100

 
100

 
100

Adjusted EBITDA per Incurrence Covenant
$
1,819

 
$
1,709

 
$
3,663

 
$
3,661

Add Oncor Adjusted EBITDA (reduced by Oncor Holdings distributions)
764

 
723

 
1,564

 
1,446

Adjusted EBITDA per Restricted Payments Covenant
$
2,583

 
$
2,432

 
$
5,227

 
$
5,107

___________
(a)
Purchase accounting adjustments include amortization of the intangible net asset value of retail and wholesale power sales agreements, environmental credits, coal purchase contracts, nuclear fuel contracts and power purchase agreements and the stepped up value of nuclear fuel. Also include certain credits and gains on asset sales not recognized in net income due to purchase accounting. Twelve months ended 2011 includes $46 million related to an asset sale.
(b)
Impairment of assets in the twelve months ended 2012 includes impairment of emission allowances and certain mining assets due to EPA rule issued in July 2011.
(c)
Noncash compensation expenses represent amounts recorded under stock-based compensation accounting standards and exclude capitalized amounts.
(d)
Transition and business optimization costs include certain incentive compensation expenses, as well as professional fees and other costs related to generation plant reliability and supply chain efficiency initiatives.
(e)
Transaction and merger expenses primarily represent Sponsor Group management fees.
(f)
Restructuring and other includes gains on termination of a long-term power sales contract and settlement of amounts due from hedging/trading counterparty, fees related to the April 2011 amendment and extension of the TCEH Senior Secured Facilities, and reversal of certain liabilities accrued in purchase accounting.
(g)
Expenses incurred to upgrade or expand a generation station reflect noncapital outage costs.