EX-99.(C) 24 efh-2013331xexhibit99c.htm ADJUSTED EBITDA RECONCILIATION TEXAS COMPETITIVE ELECTRIC HOLDINGS COMPANY EFH-2013.3.31-Exhibit 99(c)


Exhibit 99(c)

Texas Competitive Electric Holdings Company LLC Consolidated
Adjusted EBITDA Reconciliation
(millions of dollars)

 
Three Months Ended
March 31, 2013
 
Three Months Ended
March 31, 2012
 
Twelve Months Ended
March 31, 2013
 
Twelve Months Ended
March 31, 2012
Net loss
$
(524
)
 
$
(238
)
 
$
(3,234
)
 
$
(1,677
)
Income tax benefit
(378
)
 
(115
)
 
(1,157
)
 
(877
)
Interest expense and related charges
586

 
622

 
2,716

 
3,823

Depreciation and amortization
344

 
330

 
1,357

 
1,438

EBITDA
$
28

 
$
599

 
$
(318
)
 
$
2,707

Interest income
(4
)
 
(17
)
 
(33
)
 
(77
)
Amortization of nuclear fuel
39

 
42

 
153

 
147

Purchase accounting adjustments (a)
5

 
9

 
51

 
128

Impairment of goodwill
—

 
—

 
1,200

 
—

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

 
—

 
6

 
430

Unrealized net (gain) loss resulting from commodity hedging and trading transactions
487

 
152

 
1,861

 
(222
)
EBITDA amount attributable to consolidated unrestricted subsidiaries
—

 
(2
)
 
(2
)
 
(7
)
Corporate depreciation, interest and income tax expenses included in SG&A expense
4

 
4

 
17

 
17

Noncash compensation expense (c)
2

 
3

 
6

 
15

Transition and business optimization costs (d)
5

 
9

 
29

 
45

Transaction and merger expenses (e)
10

 
10

 
38

 
36

Restructuring and other (f)
16

 
(1
)
 
31

 
88

Charges related to pension plan actions (g)
—

 
—

 
141

 
—

Expenses incurred to upgrade or expand a generation station (h)
46

 
26

 
100

 
100

Adjusted EBITDA per Incurrence Covenant
$
638

 
$
834

 
$
3,280

 
$
3,407

Expenses related to unplanned generation station outages
10

 
26

 
66

 
149

Adjusted EBITDA per Maintenance Covenant
$
648

 
$
860

 
$
3,346

 
$
3,556

___________
(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 2012 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 in the three and twelve months ended 2013 includes costs associated with the liability management program. Restructuring and other in the twelve months ended 2012 includes fees related to the amendment and extension of the TCEH Senior Secured Facilities.
(g)
Charges related to pension plan actions resulted from the termination and payout of pension obligations for active nonunion employees of EFH Corp.'s competitive businesses and the assumption by Oncor under a new Oncor pension plan of all of EFH Corp.'s pension obligations to retirees and terminated vested participants. The charges represent actuarial losses previously recorded as other comprehensive income.
(h)
Expenses incurred to upgrade or expand a generation station represent noncapital outage costs.