EX-99.EX.1-A 8 0008.txt EXHIBIT 1-A
Financial Statements Item 6(b) 1-A Page 1 of 34 GPU, Inc. and Subsidiaries Consolidated Balance Sheets Actual and Pro Forma (unaudited) September 30, 2000 ----------------------------------------- (In Thousands) ASSETS Actual Adjustments Pro Forma ------ ------ ----------- --------- Utility Plant: Utility plant in service $ 9,941,749 $ - $ 9,941,749 Accumulated depreciation (3,218,081) - (3,218,081) ----------- ----------- ----------- Net utility plant in service 6,723,668 - 6,723,668 Construction work in progress 222,281 - 222,281 Other, net 18,687 - 18,687 ----------- ----------- ----------- Net utility plant 6,964,636 - 6,964,636 ----------- ----------- ----------- Other Property and Investments: Equity investments 223,297 - 223,297 Goodwill, net 1,999,695 - 1,999,695 Nuclear decommissioning trusts, at market 389,588 - 389,588 Nuclear fuel disposal trust, at market 125,698 - 125,698 Other, net 613,667 - 613,667 ----------- ----------- ----------- Total other property and investments 3,351,945 - 3,351,945 ----------- ----------- ----------- Current Assets: Cash and temporary cash investments 398,807 87,804 486,611 Marketable securities 30,953 - 30,953 Special deposits 66,239 - 66,239 Accounts receivable: Customers, net 608,316 - 608,316 Other 211,166 - 211,166 Unbilled revenues 163,383 - 163,383 Costs and estimated earnings in excess of billings on uncompleted contracts 28,846 - 28,846 Materials and supplies, at average cost or less 78,258 - 78,258 Deferred income taxes 37,948 - 37,948 Prepayments 282,205 - 282,205 ----------- ----------- ----------- Total current assets 1,906,121 87,804 1,993,925 ----------- ----------- ----------- Deferred Debits and Other Assets: Regulatory assets, net 5,020,086 - 5,020,086 Deferred income taxes 2,501,836 - 2,501,836 Other 588,462 - 588,462 ----------- ----------- ----------- Total deferred debits and other assets 8,110,384 - 8,110,384 ----------- ----------- ----------- Total Assets $20,333,086 $ 87,804 $20,420,890 =========== =========== ===========
Financial Statements Item 6(b) 1-A Page 2 of 34 GPU, Inc. and Subsidiaries Consolidated Balance Sheets Actual and Pro Forma (unaudited) September 30, 2000 ----------------------------------------- (In Thousands) LIABILITIES AND CAPITALIZATION Actual Adjustments Pro Forma ----------- ----------- ----------- Capitalization: Common stock $ 331,958 $ - $ 331,958 Capital surplus 1,014,196 (822) 1,013,374 Retained earnings 2,317,970 (2,275) 2,315,695 Accumulated other comprehensive loss (59,628) - (59,628) ----------- ----------- ----------- Total 3,604,496 (3,097) 3,601,399 Reacquired common stock, at cost (313,643) 38,626 (275,017) ----------- ----------- ----------- Total common stockholders' equity 3,290,853 35,529 3,326,382 Cumulative preferred stock: With mandatory redemption 51,500 - 51,500 Without mandatory redemption 12,649 - 12,649 Subsidiary-obligated mandatorily redeemable preferred securities 125,000 - 125,000 Trust preferred securities 200,000 - 200,000 Long-term debt 4,268,567 - 4,268,567 ----------- ----------- ----------- Total capitalization 7,948,569 35,529 7,984,098 ----------- ----------- ----------- Current Liabilities: Securities due within one year 919,624 - 919,624 Notes payable 1,486,722 50,000 1,536,722 Bank overdraft 248,666 - 248,666 Obligations under capital leases 474 - 474 Accounts payable 456,348 - 456,348 Billings in excess of costs and estimated earnings on uncompleted contracts 21,751 - 21,751 Taxes accrued 6,379 (1,225) 5,154 Interest accrued 80,811 3,500 84,311 Other 450,383 - 450,383 ----------- ----------- ----------- Total current liabilities 3,671,158 52,275 3,723,433 ----------- ----------- ----------- Deferred Credits and Other Liabilities: Deferred income taxes 3,847,077 - 3,847,077 Unamortized investment tax credits 45,745 - 45,745 Three Mile Island Unit 2 future costs 507,577 - 507,577 Purchase power contract loss liability 3,309,791 - 3,309,791 Other 1,003,169 - 1,003,169 ----------- ----------- ----------- Total deferred credits and other liabilities 8,713,359 - 8,713,359 ----------- ----------- ----------- Total Liabilities and Capitalization $20,333,086 $ 87,804 $20,420,890 =========== =========== ===========
Financial Statements Item 6(b) 1-A Page 3 of 34 GPU, Inc. and Subsidiaries Consolidated Statements of Income and Retained Earnings Actual and Pro Forma (unaudited) For The Twelve Months Ended September 30, 2000 ----------------------------------------- (In Thousands) Actual Adjustments Pro Forma ---------- -------- ---------- Operating Revenues $5,283,539 $ - $5,283,539 ---------- -------- ---------- Operating Expenses: Fuel 104,738 - 104,738 Power purchased and interchanged 2,015,721 - 2,015,721 Deferred costs, net (214,008) - (214,008) Other operation and maintenance 1,632,493 - 1,632,493 Loss on sale of business 372,492 - 372,492 Depreciation and amortization 560,693 - 560,693 Taxes, other than income taxes 219,740 - 219,740 ---------- -------- ---------- Total operating expenses 4,691,869 - 4,691,869 ---------- -------- ---------- Operating Income 591,670 - 591,670 ---------- -------- ---------- Other Income and Deductions: Allowance for other funds used during construction 1,198 - 1,198 Equity in undistributed earnings of affiliates, net 32,654 - 32,654 Other income, net 120,901 - 120,901 ---------- -------- ---------- Total other income and deductions 154,753 - 154,753 ---------- -------- ---------- Income Before Interest Charges and Preferred Dividends 746,423 - 746,423 ---------- -------- ---------- Interest Charges and Preferred Dividends: Long-term debt and notes payable 514,607 3,500 518,107 Subsidiary-obligated trust preferred securities 13,689 - 13,689 Subsidiary-obligated mandatorily redeemable preferred securities 12,900 - 12,900 Other interest 11,599 - 11,599 Allowance for borrowed funds used during construction (3,468) - (3,468) Preferred stock dividends of subsidiaries 7,891 - 7,891 ---------- -------- ---------- Total interest charges and preferred dividends 557,218 3,500 560,718 ---------- -------- ---------- Income Before Income Taxes and Minority Interest 189,205 - 185,705 Income taxes 87,514 (1,225) 86,289 Minority interest net income 4,510 - 4,510 ---------- -------- ---------- Net Income $ 97,181 $ (2,275) $ 94,906 ========== ======== ========== Retained Earnings: Balance at beginning of period $2,482,862 $ - $2,482,862 Net income/(loss) 97,181 (2,275) 94,906 Cash dividends declared on common stock (262,047) - (262,047) Other adjustments, net (26) - (26) ---------- -------- ---------- Balance at end of period $2,317,970 $ (2,275 $2,315,695 ========== ======== ==========
Financial Statements Item 6(b) 1-A Page 4 of 34 GPU, Inc. and Subsidiaries Pro Forma Journal Entries ----------------------------------------- (In Thousands) (1) Cash and temporary cash investment $ 50,000 Notes payable $ 50,000 To record the maximum amount of debt ($50 million) that could be issued by MYR under the proposed new loan agreement. (2) Interest on notes payable $ 3,500 Interest accrued $ 3,500 To record interest expense on the $50 million of debt proposed to be issued by MYR under the new loan agreement, using an assumed interest rate of 7%. (3) Taxes accrued $ 1,225 Income tax benefit $ 1,225 To record the tax effect of the interest expense on the $50 million of debt proposed to be issued by MYR under the new loan agreement, at an assumed tax rate of 35%. (4) Cash and temporary cash investments $ 31,039 Capital surplus 674 Reacquired common stock, at cost $ 31,713 To record the proposed issuance and sale of 1,146,955 shares (authorized 2,500,000 limit less 1,353,045 shares sold to date) of $2.50 par value common stock at $27.06 per share as of 6/30/2000 under the Dividend Reinvestment and Stock Purchase Plan (SEC File No. 70-7670). (5) Cash and temporary cash investments $ 6,765 Capital surplus 148 Reacquired common stock, at cost $ 6,913 To record the proposed issuance of 250,000 shares of $2.50 par valve common stock at $27.06 per share as of 6/30/2000 (SEC File No. 70-8695). Financial Statements Item 6(b) 1-A Page 5 of 34 GPU, Inc. and Subsidiaries Pro Forma Journal Entries ------------------------------------ Notes: These pro forma financial statements do not include the impact of the ----- proposed issuance of $471 million of transition bonds, by an affiliate of JCP&L, to securitize the recovery of bondable stranded costs attributable to the projected net investment in the Oyster Creek Nuclear Generating Station. The proceeds would be used to paydown outstanding debt and to fund decommissioning of the plant (SEC File No. 70-9529). The proposed declaration and payment of common stock dividends by Met-Ed and Penelec (SEC File No. 70-9593) does not have an impact on GPU's consolidated financial statements since such dividends would be paid to GPU, Inc., the parent company of Met-Ed and Penelec (SEC File No. 70-9593).