EX-99.(B) 10 efhcorp-2012930xexhibit99b.htm ADJUSTED EBITDA RECONCILIATION ENERGY FUTURE HOLDINGS CORP. EFHCorp-2012.9.30-Exhibit 99(b)


Exhibit 99(b)

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

 
Nine Months Ended
September 30, 2012
 
Nine Months Ended
September 30, 2011
 
Twelve Months Ended
September 30, 2012
 
Twelve Months Ended
September 30, 2011
Net loss
$
(1,408
)
 
$
(1,776
)
 
$
(1,545
)
 
$
(1,615
)
Income tax benefit
(879
)
 
(1,042
)
 
(971
)
 
(989
)
Interest expense and related charges
2,746

 
3,467

 
3,573

 
3,929

Depreciation and amortization
1,015

 
1,119

 
1,395

 
1,483

EBITDA
$
1,474

 
$
1,768

 
$
2,452

 
$
2,808

Oncor distributions/dividends
100

 
64

 
152

 
91

Interest income
(2
)
 
(2
)
 
(2
)
 
(3
)
Amortization of nuclear fuel
124

 
104

 
162

 
142

Purchase accounting adjustments (a)
74

 
182

 
96

 
233

Impairment and write-down of assets (b)
9

 
429

 
13

 
441

Debt extinguishment gains
—

 
(25
)
 
(26
)
 
(673
)
Equity in earnings of unconsolidated subsidiary
(249
)
 
(235
)
 
(300
)
 
(272
)
Unrealized net loss resulting from hedging and trading transactions
1,290

 
247

 
985

 
641

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

 
—

 
—

 
(2
)
Noncash compensation expense (c)
11

 
8

 
16

 
13

Severance expense
1

 
54

 
(46
)
 
54

Transition and business optimization costs (d)
31

 
30

 
40

 
36

Transaction and merger expenses (e)
29

 
27

 
39

 
38

Restructuring and other (f)
7

 
74

 
6

 
(41
)
Expenses incurred to upgrade or expand a generation station (g)
69

 
100

 
100

 
100

Adjusted EBITDA per Incurrence Covenant
$
2,968

 
$
2,825

 
$
3,687

 
$
3,606

Add Oncor Adjusted EBITDA (reduced by Oncor Holdings distributions)
1,254

 
1,206

 
1,571

 
1,508

Adjusted EBITDA per Restricted Payments Covenant
$
4,222

 
$
4,031

 
$
5,258

 
$
5,114

___________
(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. Nine and twelve months ended 2011 includes $46 million related to an asset sale.
(b)
Impairment of assets in the nine and twelve months ended 2011 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.