GAAP EPS Reconciliation 2003-2004
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$1.38
2003 GAAP Reported EPS
Boston Generating impairment
Charges associated with investment in Sithe Energies, Inc.
Severance
Cumulative effect of adopting SFAS No. 143
Property tax accrual reductions
Enterprises’ Services goodwill impairment
Enterprises’ impairments due to anticipated sale
March 3 ComEd Settlement Agreement
2003 Adjusted (non-GAAP) Operating EPS
2004 GAAP Reported EPS
Charges associated with debt repurchases
Investments in synthetic fuel-producing facilities
Severance
Cumulative effect of adopting FIN No. 46-R
Settlement associated with the storage of spent nuclear fuel
Boston Generating 2004 impact
Charges associated with investment in Sithe Energies, Inc.
Costs related to proposed merger with PSEG
2004 Adjusted (non-GAAP) Operating EPS
0.87
0.27
0.24
(0.17)
(0.07)
0.03
0.03
0.03
$2.61
$2.78
0.12
(0.10)
0.07
(0.05)
(0.04)
(0.03)
0.02
0.01
$2.78
Total Increase in Cash and Cash Equivalents
to Free Cash Flow Reconciliation ($ in millions)
GAAP Increase in Cash and Cash Equivalents
Adjustments for Goal:
Discretionary Debt Activity:
- Change in Short-Term Debt
- Net Long-Term Debt Retirements(1)
- Other Financing Activities
Cash from Long-Term Incentive Plan(2)
Other Discretionary Adjustments(3)
Total Adjustments
Free Cash Flow
Includes net long-term debt issuances and payment on the acquisition note to Sithe Energies, Inc.
and excludes ComEd Transitional Funding Trust and PECO Energy Transition Trust Retirements.
Net of treasury shares purchased.
Includes the incremental increase in dividend payments over 2003, exclusion of Sithe cash,
severance payments, call premiums associated with the redemption of debt as a result of
the accelerated liability management plan, and the tax effect of discretionary items.
$ 35
(164)
1,424
(34)
(158)
283
1,351
$ 1,386
Full Year 2004 Cash Reconciliation
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(1)
(2)
(3)
Cash Flow Definitions
We define free cash flow as:
Cash from operations (which includes pension contributions
Cash used in investing activities, less
Transition debt maturities
Common stock dividend payments at 2003 rates
Other routine activities (e.g., severance payments, tax
effect of discretionary items, etc.)
and the benefit of synthetic fuel investments), less
We define available cash flow as:
Cash from operations less capital expenditures, less common
stock dividend payments, less securitized debt retired
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