EX-99.3 4 d19586exv99w3.htm COPY OF RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS TO RECURRING EARNINGS AFTER MARK-TO-MARKET ADJUSTMENTS exv99w3
 

Exhibit 99.3

Reconciliation of Income (Loss) from Continuing Operations to Recurring Earnings after MTM Adjustments

                                                 
$ millions & $ per share
   2004
   2003
    1Q
   2Q
   3Q
   1Q
   2Q
   3Q
Income (loss) from continuing operations available to common stockholders
   $ (1 )   $ (18 )   $ 16     $ (50 )   $ 91     $ 20  
Total nonrecurring items (net of tax effect)
   $ 4     $ 72     $ 120     $ 6     $ (103 )   $ (20 )
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Recurring income from continuing operations available to common shareholders
   $ 3     $ 54     $ 136     $ (44 )   $ (12 )   $ (0 )
Recurring diluted earnings per common share
   $ —     $ 0.10     $ 0.26     $ (0.08 )   $ (0.02 )   $ (0.00 )
*Mark-to-Market (MTM) adjustments for Power:
                                                
Reverse forward unrealized MTM gains/losses
     (23 )     (69 )     (187 )     40       (232 )     54  
Add realized gains/losses from MTM previously recognized
     137       10       45       (55 )     45       (45 )
 
    
 		      
 		      
 		      
 		      
 		      
 		  
Total MTM adjustments
     114       (59 )     (142 )     (15 )     (187 )     9  
Tax effect of total MTM adjustments
     44       (23 )     (55 )     (6 )     (73 )     4  
 
    
 		      
 		      
 		      
 		      
 		      
 		  
After tax MTM adjustments
     70       (36 )     (87 )     (9 )     (114 )     5  
Recurring income from continuing operations available to common shareholders after MTM adjustments
   $ 73     $ 18     $ 49     $ (53 )   $ (126 )   $ 5  
Recurring diluted earnings per share after MTM adjustments
   $ 0.14     $ 0.03     $ 0.09     $ (0.10 )   $ (0.24 )   $ 0.01  
Weighted average shares — diluted (thousands)
     525,752       521,698       529,525       517,652       534,839       524,711  

*   Adjustments have been made to reverse estimated forward unrealized MTM gains/losses and add estimated realized gains/losses from MTM previously recognized, i.e. assumes MTM accounting had never been applied to designated hedges and other derivatives.