Exhibit 99.1
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| FOR IMMEDIATE RELEASE | | Media relations contact: Charles Coleman, (626) 302-7982 |
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| | Investor relations contact: Scott Cunningham, (626) 302-2540 |
Edison International Reports 2011 Results
| | • | | Company reported full-year 2011 basic losses of $(0.11) per share, compared to earnings of $3.84 per share in 2010. Core earnings for 2011 were $3.22 per share, compared to $3.48 per share last year. |
| | • | | Company reported fourth quarter 2011 basic losses of $(2.57) per share, compared to earnings of $0.51 per share in the same quarter last year. Fourth quarter core earnings for 2011 were $0.75 per share, compared to $0.58 per share in the same quarter last year. |
| | • | | The basic losses primarily relate to Edison Mission Group’s (EMG) impairment of its Homer City plant and three Midwest Generation stations. |
ROSEMEAD, Calif., Feb. 29, 2012 – Edison International (NYSE: EIX) today reported fourth quarter 2011 basic losses of $(2.57) per share, compared to basic earnings of $0.51 per share in the same quarter last year. Fourth quarter 2011 core earnings were $0.75 per share, compared to core earnings of $0.58 per share in the fourth quarter of 2010. Higher fourth quarter core earnings at Southern California Edison (SCE) were partially offset by losses at EMG driven by lower energy prices, capacity prices, and generation.
For 2011, the company reported basic losses of $(0.11) per share compared to basic earnings of $3.84 per share in 2010, while core earnings for 2011 decreased 7 percent to $3.22 per share compared to $3.48 per share in 2010. The increase in core earnings at SCE was more than offset by losses at EMG driven by lower energy prices, capacity prices, and generation.
“For 2011, Edison International posted core earnings above its earnings guidance range and above Street consensus, although we reported a full-year loss due to impairment charges at our competitive generation subsidiary, EMG,” said Ted Craver, chairman and chief executive officer of Edison International. “Southern California Edison continued to contribute strong earnings growth from its ongoing capital investment program. Given the challenging market conditions facing EMG, we have taken important steps at EMG to preserve and enhance liquidity.”
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Note: GAAP earnings and losses refer to net income or losses attributable to Edison International throughout this release. Core earnings are a non-GAAP financial measure. See Reconciliation of Core Earnings to GAAP Earnings and Reconciliation of Core Earnings Per Share Guidance to Basic Earnings Per Share Guidance.
Edison International ReportsFourth Quarterand Full Year2011 Financial Results
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Fourth Quarter Earnings Detail
SCE’s fourth quarter 2011 basic and core earnings were $0.76 per share compared to $0.56 per share in the fourth quarter of 2010. Core earnings increased primarily due to rate base growth and also included a $0.09 per share benefit related to cumulative changes to deferred income taxes.
EMG’s fourth quarter 2011 basic losses were $(3.29) per share compared to earnings of $0.03 per share in the fourth quarter of 2010. Core losses were $(0.03) per share compared to earnings of $0.10 per share in the same quarter last year. Core losses resulted from lower capacity revenues, realized energy prices, and generation, and higher interest expense, partially offset by higher trading and renewables project income. Fourth quarter 2011 results included the following non-core items: impairment charges for Homer City, three Midwest Generation facilities, and certain wind assets, charges resulting from reduced wind development activity, and charges from the write-off of an American Airlines aircraft lease receivable. Also included was a benefit related to the prior March Point sale. Fourth quarter 2010 results included a non-core charge related to the write-off of capitalized costs at Midwest Generation.
The Homer City impairment charge reflects EMG’s expectation that it is likely to lose substantially all beneficial economic interest in Homer City as a result of an inability to secure third-party financing of environmental controls and the current process underway to transfer Homer City to the owner-lessors. Reflecting low power prices and required retrofits which are less economical for some smaller coal-fired generation stations, EMG decided to shut down Midwest Generation’s Fisk by the end of 2012 and Crawford by the end of 2014. It also concluded it was less likely to retrofit Waukegan than the remaining larger stations, though no final decision has been made. These decisions resulted in impairments of all three Midwest Generation stations.
Edison International parent company and other reported a fourth quarter 2011 basic loss of $(0.04) per share compared to a $(0.08) per share basic loss in the same quarter last year. Core earnings were $0.02 per share in the fourth quarter of 2011 compared to core losses of $(0.08) per share in the fourth quarter of 2010. Non-core charges in the fourth quarter of 2011 included a $(0.06) per share consolidated deferred tax adjustment related to EMG asset impairments.
Full-Year Earnings Detail
SCE’s basic earnings in 2011 were $3.33 per share compared to $3.19 per share in 2010. Core earnings were $3.33 per share compared to $3.01 per share in 2010. The increase in core earnings was primarily driven by rate base growth.
EMG’s basic losses in 2011 were $(3.34) per share compared to earnings of $0.69 per share in 2010. Core losses were $(0.07) per share compared to earnings of $0.59 per share in 2010. EMG’s core losses were driven by lower average realized energy prices, capacity prices, and generation for the merchant coal plants, higher interest expense, and lower trading revenue. Losses were partially offset by an increase in renewable project income. Non-core items in 2011 included the fourth quarter non-core items discussed above together with impacts from discontinued operations. Non-core items in 2010 included benefits from tax settlements and discontinued operations, and a charge from the write-off of capitalized costs.
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Edison International ReportsFourth Quarterand Full Year2011 Financial Results
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Edison International parent company and other reported 2011 basic losses of $(0.10) per share compared to a loss of $(0.04) per share in 2010. Core losses were $(0.04) per share in 2011 compared to a loss of $(0.12) per share in 2010. Non-core items included a charge for consolidated deferred tax adjustment related to asset impairment in 2011 and a benefit associated with the global settlement in 2010.
2012 Earnings Guidance
The company will provide 2012 earnings guidance after SCE has received a final decision on its 2012 General Rate Case from the California Public Utilities Commission. See the risk disclosure statement on page 4 and the financial teleconference presentation accompanying the company’s earnings conference call for further information.
About Edison International
Edison International, through its subsidiaries, is a generator and distributor of electric power and an investor in infrastructure and energy assets, including renewable energy. Headquartered in Rosemead, Calif., Edison International is the parent company of Southern California Edison, one of the nation’s largest electric utilities, and Edison Mission Group, a competitive power generation business.
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Edison International ReportsFourth Quarterand Full Year2011 Financial Results
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Appendix
Use of Non-GAAP Financial Measures
Edison International’s earnings are prepared in accordance with generally accepted accounting principles used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our management uses core earnings and core earnings per share (core EPS) by principal operating subsidiary internally for financial planning and for analysis of performance. We also use core earnings and core EPS by principal operating subsidiary when communicating with analysts and investors regarding our earnings results and outlook to facilitate comparisons of the Company’s performance from period to period. Financial measures referred to net income, basic EPS, core earnings, or core EPS also applies to the description of losses or losses per share.
Core earnings are a non-GAAP financial measure and may not be comparable to those of other companies. Core earnings and core EPS are defined as GAAP earnings and basic EPS excluding income or loss from discontinued operations and income or loss from significant discrete items that management does not consider representative of ongoing earnings. GAAP earnings refer to net income attributable to Edison International common shareholders or attributable to the common shareholders of each subsidiary. Core earnings are reconciled to GAAP earnings in the attached tables. EPS by principal operating subsidiary is based on the principal operating subsidiaries’ net income attributable to the common shareholders of each operating subsidiary, respectively, and Edison International’s weighted average outstanding common shares. The impact of participating securities (vested stock options that earn dividend equivalents that may participate in undistributed earnings with common stock) for each principal operating subsidiary is not material to each principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which we refer to as EIX parent company and other. EIX core EPS and core EPS by principal operating subsidiary are reconciled to basic EPS.
About Asset Impairment Charges
Long-lived assets, including intangible assets, are evaluated for impairment in accordance with applicable authoritative guidance. Authoritative guidance requires that if the undiscounted expected future cash flow from a company’s assets or group of assets (without interest charges) is less than its carrying value, asset impairment must be recognized on the financial statements. The impairment charges, if applicable, are calculated as the excess of the asset’s carrying value over its fair value, which represents the discounted expected future cash flows attributable to the asset or, in the case of assets expected to be sold, at fair value less costs to sell. Long-lived assets for impairment are evaluated whenever indicators of impairment exist or when there is a commitment to sell or dispose of the asset. These evaluations may result from significant decreases in the market price of an asset, a significant adverse change in the extent or manner in which an asset is being used in its physical condition, a significant adverse change in legal factors or in the business climate that could affect the value of an asset, as well as economic or operational analyses.
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Edison International ReportsFourth Quarterand Full Year2011 Financial Results
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Risk Disclosure Statement
Forward-looking statements about the financial outlook for Edison International and its subsidiaries are included in this news release. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. Important factors that could cause different results are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Edison International’s 2011 Form 10-K and other reports filed with the Securities and Exchange Commission which are available at: www.edisoninvestor.com. These forward-looking statements represent our expectations only as of the date of this news release, and Edison International assumes no duty to update them to reflect new information, events or circumstances.
Reminder: Edison International Will Hold a Conference Call Today
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When: | | Wednesday, February 29, 2012, 2:00 p.m. (Pacific Standard Time) |
Telephone Numbers: | | 1-800-369-2198 (US) and 1-773-756-4618 (Int’l) - Passcode: Edison |
Telephone Replay: | | 1-800-839-4843 (US) and 1-203-369-3590 (Int’l) - Passcode: 468529 Telephone replay available through March 9, 2012 |
Webcast: | | www.edisoninvestor.com |
The prepared remarks made on the conference call by Ted Craver, chairman and chief executive officer of Edison International, will be available at www.edisoninvestor.com.
Edison International ReportsFourth Quarterand Full Year2011 Financial Results
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Summary Financial Schedules
Fourth Quarter Basic Earnings (Loss) Per Share
| | | | | | | | | | | | | | |
| | | Quarter Ended December 31, | |
Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited) | | | | 2011 | | | 2010 | | | Change | |
SCE | | | | | $0.76 | | | | $0.56 | | | | $0.20 | |
EMG | | | | | (3.29) | | | | 0.03 | | | | (3.32) | |
EIX parent company and other | | | | | (0.04) | | | | (0.08) | | | | 0.04 | |
EIX earnings (loss) from continuing operations | | | | | (2.57) | | | | 0.51 | | | | (3.08) | |
EIX earnings (loss) from discontinued operations | | | | | — | | | | — | | | | — | |
EIX basic earnings (loss)1 | | | | | $(2.57) | | | | $0.51 | | | | $(3.08) | |
| | | | | | | | | | | | | | | |
EIX diluted earnings (loss) | | | | | $(2.57) | | | | $0.51 | | | | $(3.08) | |
| | | | | | | | | | | | | | | |
| 1 | The impact of participating securities on the per share amounts is included in EIX parent company and other and was zero per share for both quarters. |
Fourth Quarter Reconciliation of Core Earnings (Loss) Per Share
to Basic Earnings (Loss) Per Share
| | | | | | | | | | | | | | |
| | | Quarter Ended December 31, | |
Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited) | | | | 2011 | | | 2010 | | | Change | |
Core Earnings (Loss)1 | | | | | | | | | | | | | | |
SCE | | | | | $0.76 | | | | $0.56 | | | | $0.20 | |
EMG | | | | | (0.03) | | | | 0.10 | | | | (0.13) | |
EIX parent company and other | | | | | 0.02 | | | | (0.08) | | | | 0.10 | |
EIX core earnings | | | | | 0.75 | | | | 0.58 | | | | 0.17 | |
| | | | | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | | | |
EMG – write-off of capitalized costs | | | | | — | | | | (0.07) | | | | 0.07 | |
EMG – gain on sale of March Point | | | | | 0.02 | | | | — | | | | 0.02 | |
EMG – impairment of three Midwest Generation facilities | | | | | (1.19) | | | | — | | | | (1.19) | |
EMG – impairment of Homer City | | | | | (1.91) | | | | — | | | | (1.91) | |
EMG – impairment of wind portfolio and charges | | | | | (0.13) | | | | — | | | | (0.13) | |
EMG – write-off of American Airlines aircraft lease receivable | | | | | (0.05) | | | | — | | | | (0.05) | |
EIX – deferred tax adjustment related to impairment | | | | | (0.06) | | | | — | | | | (0.06) | |
Total non-core items | | | | | (3.32) | | | | (0.07) | | | | (3.25) | |
EIX basic earnings (loss)1 | | | | | $(2.57) | | | | $0.51 | | | | $(3.08) | |
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| 1 | See Use of Non-GAAP Financial Measures on page 4. The impact of participating securities on the per share amounts is included in EIX parent company and other and was zero per share for both quarters. |
Edison International ReportsFourth Quarterand Full Year2011 Financial Results
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Fourth Quarter Basic Earnings (Loss)
| | | | | | | | | | | | | | |
| | | Quarter Ended December 31, | | | | |
Earnings (Loss) (in millions) Attributable to Edison International (Unaudited) | | | | 2011 | | | 2010 | | | Change | |
SCE | | | | | $ 247 | | | | $ 181 | | | | $ 66 | |
EMG | | | | | (1,071) | | | | 10 | | | | (1,081) | |
EIX parent company and other | | | | | (15) | | | | (25) | | | | 10 | |
| | | | | | | | | | | | | | | |
EIX earnings (loss) from continuing operations | | | | | (839) | | | | 166 | | | | (1,005) | |
| | | | | | | | | | | | | | | |
EIX earnings (loss) from discontinued operations | | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | |
EIX basic earnings (loss) | | | | | $ (839) | | | | $ 166 | | | | $ (1,005) | |
| | | | | | | | | | | | | | | |
Fourth Quarter Reconciliation of Core Earnings (Loss) to Basic Earnings (Loss)
| | | | | | | | | | | | | | |
| | | Quarter Ended December 31, | | | | |
Earnings (Loss) (in millions) Attributable to Edison International (Unaudited) | | | | 2011 | | | 2010 | | | Change | |
Core Earnings (Loss)1 | | | | | | | | | | | | | | |
SCE | | | | | $ 247 | | | | $ 181 | | | | $ 66 | |
EMG | | | | | (10) | | | | 34 | | | | (44) | |
EIX parent company and other | | | | | 6 | | | | (25) | | | | 31 | |
| | | | | | | | | | | | | | | |
EIX core earnings | | | | | 243 | | | | 190 | | | | 53 | |
| | | | | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | | | |
EMG – write-off of capitalized costs | | | | | — | | | | (24) | | | | 24 | |
EMG – gain on sale of March Point | | | | | 5 | | | | — | | | | 5 | |
EMG – impairment of three Midwest Generation
facilities | | | | | (386) | | | | — | | | | (386) | |
EMG – impairment of Homer City | | | | | (623) | | | | — | | | | (623) | |
EMG – impairment of wind portfolio and charges | | | | | (41) | | | | — | | | | (41) | |
EMG – write-off of American Airlines aircraft lease
receivable | | | | | (16) | | | | — | | | | (16) | |
EIX – deferred tax adjustment related to impairment | | | | | (21) | | | | — | | | | (21) | |
| | | | | | | | | | | | | | | |
Total non-core items | | | | | (1,082) | | | | (24) | | | | (1,058) | |
| | | | | | | | | | | | | | | |
EIX basic earnings (loss) | | | | | $ (839) | | | | $ 166 | | | | $ (1,005) | |
| | | | | | | | | | | | | | | |
1 See Use of Non-GAAP Financial Measures on page 4.
Edison International ReportsFourth Quarterand Full Year2011 Financial Results
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Full-Year Basic Earnings (Loss) Per Share
| | | | | | | | | | | | | | |
| | | Year Ended December 31, | |
Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited) | | | | 2011 | | | 2010 | | | Change | |
SCE | | | | | $ 3.33 | | | | $ 3.19 | | | | $ 0.14 | |
EMG | | | | | (3.33) | | | | 0.68 | | | | (4.01) | |
EIX parent company and other | | | | | (0.10) | | | | (0.04) | | | | (0.06) | |
| | | | | | | | | | | | | | | |
EIX earnings (loss) from continuing operations | | | | | (0.10) | | | | 3.83 | | | | (3.93) | |
| | | | | | | | | | | | | | | |
EIX earnings (loss) from discontinued operations | | | | | (0.01) | | | | 0.01 | | | | (0.02) | |
| | | | | | | | | | | | | | | |
EIX basic earnings (loss)1 | | | | | $ (0.11) | | | | $ 3.84 | | | | $ (3.95) | |
| | | | | | | | | | | | | | | |
EIX diluted earnings (loss) | | | | | $ (0.11) | | | | $ 3.82 | | | | $ (3.93) | |
| | | | | | | | | | | | | | | |
| | | | | | | | |
| 1 | | The impact of participating securities is included in EIX parent company and other and was zero per share for 2011 and $(0.01) for 2010. |
Full-Year Reconciliation of Core Earnings (Loss) Per Share
to Basic Earnings (Loss) Per Share
| | | | | | | | | | | | | | |
| | | Year Ended December 31, | |
Earnings (Loss) Per Common Share Attributable to Edison International (Unaudited) | | | | 2011 | | | 2010 | | | Change | |
Core Earnings (Loss)1 | | | | | | | | | | | | | | |
SCE | | | | | $ 3.33 | | | | $ 3.01 | | | | $ 0.32 | |
EMG | | | | | (0.07) | | | | 0.59 | | | | (0.66) | |
EIX parent company and other | | | | | (0.04) | | | | (0.12) | | | | 0.08 | |
| | | | | | | | | | | | | | | |
EIX core earnings | | | | | 3.22 | | | | 3.48 | | | | (0.26) | |
| | | | | | | | | | | | | | | |
Non-core items | | | | | | | | | | | | | | |
SCE – regulatory items | | | | | — | | | | (0.12) | | | | 0.12 | |
Global settlement | | | | | | | | | | | | | | |
SCE | | | | | — | | | | 0.30 | | | | (0.30) | |
EMG | | | | | — | | | | 0.16 | | | | (0.16) | |
EIX parent company and other | | | | | — | | | | 0.08 | | | | (0.08) | |
EMG – write-off of capitalized costs | | | | | — | | | | (0.07) | | | | 0.07 | |
EMG – gain on sale of March Point | | | | | 0.02 | | | | — | | | | 0.02 | |
EMG – impairment of three Midwest Generation
facilities | | | | | (1.19) | | | | — | | | | (1.19) | |
EMG – impairment of Homer City | | | | | (1.91) | | | | — | | | | (1.91) | |
EMG – impairment of wind portfolio and charges | | | | | (0.13) | | | | — | | | | (0.13) | |
EMG – write-off of American Airlines aircraft lease
receivable | | | | | (0.05) | | | | — | | | | (0.05) | |
EMG – discontinued operations | | | | | (0.01) | | | | 0.01 | | | | (0.02) | |
EIX – deferred tax adjustment related to impairment | | | | | (0.06) | | | | — | | | | (0.06) | |
| | | | | | | | | | | | | | | |
Total non-core items | | | | | (3.33) | | | | 0.36 | | | | (3.69) | |
| | | | | | | | | | | | | | | |
EIX basic earnings (loss)1 | | | | | $ (0.11) | | | | $ 3.84 | | | | $ (3.95) | |
| | | | | | | | | | | | | | | |
| | | | | | | | |
| 1 | | See Use of Non-GAAP Financial Measures on page 4. The impact of participating securities is included in EIX parent company and other and was zero per share for 2011 and $(0.01) for 2010. |
Edison International ReportsFourth Quarterand Full Year2011 Financial Results
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Full-Year Basic Earnings (Loss)
| | | | | | | | | | | | | | |
| | | Year Ended December 31, | |
Earnings (Loss) (in millions) Attributable to Edison International (Unaudited) | | | | 2011 | | | 2010 | | | Change | |
SCE | | | | | $ 1,085 | | | | $ 1,040 | | | | $ 45 | |
EMG | | | | | (1,086) | | | | 220 | | | | (1,306) | |
EIX parent company and other | | | | | (33) | | | | (8) | | | | (25) | |
EIX earnings (loss) from continuing operations | | | | | (34) | | | | 1,252 | | | | (1,286) | |
EIX earnings (loss) from discontinued operations | | | | | (3) | | | | 4 | | | | (7) | |
EIX basic earnings (loss) | | | | | $ (37) | | | | $1,256 | | | | $ (1,293) | |
| | | | | | | | | | | | | | | |
Full-Year Reconciliation of Core Earnings (Loss) to Basic Earnings (Loss)
| | | | | | | | | | | | | | |
| | | Year Ended December 31, | |
Earnings (Loss) (in millions) Attributable to Edison International (Unaudited) | | | | 2011 | | | 2010 | | | Change | |
Core Earnings (Loss)1 | | | | | | | | | | | | | | |
SCE | | | | | $ 1,085 | | | | $ 984 | | | | $ 101 | |
EMG | | | | | (25) | | | | 192 | | | | (217) | |
EIX parent company and other | | | | | (12) | | | | (36) | | | | 24 | |
EIX core earnings | | | | | 1,048 | | | | 1,140 | | | | (92) | |
Non-core items | | | | | | | | | | | | | | |
SCE – regulatory items | | | | | — | | | | (39) | | | | 39 | |
Global settlement | | | | | | | | | | | | | | |
SCE | | | | | — | | | | 95 | | | | (95) | |
EMG | | | | | — | | | | 52 | | | | (52) | |
EIX parent company and other | | | | | — | | | | 28 | | | | (28) | |
EMG – write-off of capitalized costs | | | | | — | | | | (24) | | | | 24 | |
EMG – gain on sale of March Point | | | | | 5 | | | | — | | | | 5 | |
EMG – impairment of three Midwest Generation
facilities | | | | | (386) | | | | — | | | | (386) | |
EMG – impairment of Homer City | | | | | (623) | | | | — | | | | (623) | |
EMG – impairment of wind portfolio and charges | | | | | (41) | | | | — | | | | (41) | |
EMG – write-off of American Airlines aircraft lease
receivable | | | | | (16) | | | | — | | | | (16) | |
EMG – discontinued operations | | | | | (3) | | | | 4 | | | | (7) | |
EIX – deferred tax adjustment related to impairment | | | | | (21) | | | | — | | | | (21) | |
Total non-core items | | | | | (1,085) | | | | 116 | | | | (1,201) | |
EIX basic earnings (loss) | | | | | $ (37) | | | | $ 1,256 | | | | $ (1,293) | |
| | | | | | | | | | | | | | | |
1 See Use of Non-GAAP Financial Measures on page 4.
Edison International ReportsFourth Quarterand Full Year2011 Financial Results
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| | | | | | | | | | | | | | | | |
| Consolidated Statements of Income | | Edison International | |
| | |
| | | Quarter Ended December 31, | | | Year Ended December 31, | |
| (in millions, except per-share amounts) | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
Electric utility | | $ | 2,513 | | | $ | 2,479 | | | $ | 10,574 | | | $ | 9,980 | |
Competitive power generation | | | 500 | | | | 590 | | | | 2,186 | | | | 2,429 | |
Total operating revenue | | | 3,013 | | | | 3,069 | | | | 12,760 | | | | 12,409 | |
Fuel | | | 299 | | | | 295 | | | | 1,166 | | | | 1,172 | |
Purchased power | | | 568 | | | | 593 | | | | 2,989 | | | | 2,930 | |
Operation and maintenance | | | 1,252 | | | | 1,327 | | | | 4,776 | | | | 4,612 | |
Depreciation, decommissioning and amortization | | | 449 | | | | 395 | | | | 1,737 | | | | 1,522 | |
Asset impairments, lease terminations and other | | | 1,764 | | | | 45 | | | | 1,772 | | | | 47 | |
Total operating expenses | | | 4,332 | | | | 2,655 | | | | 12,440 | | | | 10,283 | |
Operating income (loss) | | | (1,319) | | | | 414 | | | | 320 | | | | 2,126 | |
Interest and dividend income (expense) | | | (1) | | | | 3 | | | | 37 | | | | 31 | |
Equity in income from unconsolidated affiliates – net | | | 19 | | | | 6 | | | | 86 | | | | 106 | |
Other income | | | 45 | | | | 46 | | | | 156 | | | | 148 | |
Interest expense | | | (207) | | | | (185) | | | | (808) | | | | (703) | |
Other expenses | | | (18) | | | | (13) | | | | (55) | | | | (51) | |
Income (loss) from continuing operations before income taxes | | | (1,481) | | | | 271 | | | | (264) | | | | 1,657 | |
Income tax expense (benefit) | | | (657) | | | | 93 | | | | (288) | | | | 354 | |
Income (loss) from continuing operations | | | (824) | | | | 178 | | | | 24 | | | | 1,303 | |
Income (loss) from discontinued operations – net of tax | | | — | | | | — | | | | (3) | | | | 4 | |
Net income (loss) | | | (824) | | | | 178 | | | | 21 | | | | 1,307 | |
Dividends on preferred and preference stock of utility | | | 15 | | | | 13 | | | | 59 | | | | 52 | |
Other noncontrolling interest | | | — | | | | (1) | | | | (1) | | | | (1) | |
Net income (loss) attributable to Edison International common
shareholders | | $ | (839) | | | $ | 166 | | | $ | (37) | | | $ | 1,256 | |
Amounts attributable to Edison International common shareholders: | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations, net of tax | | $ | (839) | | | $ | 166 | | | $ | (34) | | | $ | 1,252 | |
Income (loss) from discontinued operations, net of tax | | | — | | | | — | | | | (3) | | | | 4 | |
Net income (loss) attributable to Edison International common
shareholders | | $ | (839) | | | $ | 166 | | | $ | (37) | | | $ | 1,256 | |
Basic earnings (loss) per common share attributable to Edison
International common shareholders: | | | | | | | | | | | | | | | | |
Weighted-average shares of common stock outstanding | | | 326 | | | | 326 | | | | 326 | | | | 326 | |
Continuing operations | | $ | (2.57) | | | $ | 0.51 | | | $ | (0.10) | | | $ | 3.83 | |
Discontinued operations | | | — | | | | — | | | | (0.01) | | | | 0.01 | |
Total | | $ | (2.57) | | | $ | 0.51 | �� | | $ | (0.11) | | | $ | 3.84 | |
Diluted earnings per common share attributable to Edison
International common shareholders: | | | | | | | | | | | | | | | | |
Weighted-average shares of common stock outstanding, including
effect of dilutive securities | | | 326 | | | | 329 | | | | 326 | | | | 329 | |
Continuing operations | | $ | (2.57) | | | $ | 0.51 | | | $ | (0.10) | | | $ | 3.81 | |
Discontinued operations | | | — | | | | (0.01) | | | | (0.01) | | | | 0.01 | |
Total | | $ | (2.57) | | | $ | 0.50 | | | $ | (0.11) | | | $ | 3.82 | |
Dividends declared per common share | | | $ 0.325 | | | $ | 0.320 | | | | $ 1.285 | | | $ | 1.265 | |
Edison International ReportsFourth Quarterand Full Year2011 Financial Results
Page 11 of 14
| | | | | | | | |
| Consolidated Balance Sheets | | Edison International | |
| |
| | | December 31, | |
(in millions) | | | 2011 | | | | 2010 | |
ASSETS | | | | | | | | |
Cash and cash equivalents | | | $ 1,469 | | | | $ 1,389 | |
Receivables, less allowances of $75 and $85 for uncollectible accounts at respective dates | | | 908 | | | | 931 | |
Accrued unbilled revenue | | | 519 | | | | 442 | |
Inventory | | | 624 | | | | 568 | |
Prepaid taxes | | | 88 | | | | 390 | |
Derivative assets | | | 106 | | | | 133 | |
Restricted cash and cash equivalents | | | 103 | | | | 2 | |
Margin and collateral deposits | | | 58 | | | | 65 | |
Regulatory assets | | | 494 | | | | 378 | |
Other current assets | | | 115 | | | | 124 | |
Total current assets | | | 4,484 | | | | 4,422 | |
Nuclear decommissioning trusts | | | 3,592 | | | | 3,480 | |
Investments in unconsolidated affiliates | | | 525 | | | | 559 | |
Other investments | | | 211 | | | | 223 | |
Total investments | | | 4,328 | | | | 4,262 | |
Utility property, plant and equipment, less accumulated depreciation of $6,894 and $6,319 at respective dates | | | 27,569 | | | | 24,778 | |
Competitive power generation and other property, plant and equipment, less accumulated depreciation of $1,408 and $1,865 at respective dates | | | 4,547 | | | | 5,406 | |
Total property, plant and equipment | | | 32,116 | | | | 30,184 | |
Derivative assets | | | 128 | | | | 437 | |
Restricted deposits | | | 51 | | | | 47 | |
Rent payments in excess of levelized rent expense under plant operating leases | | | 760 | | | | 1,187 | |
Regulatory assets | | | 5,466 | | | | 4,347 | |
Other long-term assets | | | 706 | | | | 644 | |
Total long-term assets | | | 7,111 | | | | 6,662 | |
| | |
Total assets | | | $ 48,039 | | | | $ 45,530 | |
Edison International ReportsFourth Quarterand Full Year2011 Financial Results
Page12 of14
| | | | | | | | |
| Consolidated Balance Sheets | | Edison International | |
| |
| | | December 31, | |
(in millions, except share amounts) | | | 2011 | | | | 2010 | |
LIABILITIES AND EQUITY | | | | | | | | |
Short-term debt | | | $ 429 | | | | $ 115 | |
Current portion of long-term debt | | | 57 | | | | 48 | |
Accounts payable | | | 1,419 | | | | 1,362 | |
Accrued taxes | | | 52 | | | | 52 | |
Accrued interest | | | 205 | | | | 205 | |
Customer deposits | | | 199 | | | | 217 | |
Derivative liabilities | | | 268 | | | | 217 | |
Regulatory liabilities | | | 670 | | | | 738 | |
Other current liabilities | | | 1,049 | | | | 998 | |
Total current liabilities | | | 4,348 | | | | 3,952 | |
Long-term debt | | | 13,689 | | | | 12,371 | |
Deferred income taxes | | | 5,396 | | | | 5,625 | |
Deferred investment tax credits | | | 89 | | | | 122 | |
Customer advances | | | 138 | | | | 112 | |
Derivative liabilities | | | 547 | | | | 468 | |
Pensions and benefits | | | 2,912 | | | | 2,260 | |
Asset retirement obligations | | | 2,688 | | | | 2,561 | |
Regulatory liabilities | | | 4,670 | | | | 4,524 | |
Other deferred credits and other long-term liabilities | | | 2,476 | | | | 2,041 | |
Total deferred credits and other liabilities | | | 18,916 | | | | 17,713 | |
Total liabilities | | | 36,953 | | | | 34,036 | |
Commitments and contingencies | | | | | | | | |
Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at each date) | | | 2,360 | | | | 2,331 | |
Accumulated other comprehensive income | | | (139 | ) | | | (76 | ) |
Retained earnings | | | 7,834 | | | | 8,328 | |
Total Edison International’s common shareholders’ equity | | | 10,055 | | | | 10,583 | |
Preferred and preference stock of utility | | | 1,029 | | | | 907 | |
Other noncontrolling interest | | | 2 | | | | 4 | |
Total noncontrolling interests | | | 1,031 | | | | 911 | |
| | |
Total equity | | | 11,086 | | | | 11,494 | |
| | |
Total liabilities and equity | | | $ 48,039 | | | | $ 45,530 | |
Edison International ReportsFourth Quarterand Full Year2011 Financial Results
Page13 of14
| | | | | | | | | | | | |
| Consolidated Statement of Cash Flows | | Edison International | |
| |
| | | Years Ended December 31, | |
| (in millions) | | 2011 | | | 2010 | | | 2009 | |
Cash flows from operating activities: | | | | | | | | | | | | |
Net income | | $ | 21 | | | $ | 1,307 | | | | $ 945 | |
Less: Income (loss) from discontinued operations | | | (3) | | | | 4 | | | | (7) | |
Income from continuing operations | | | 24 | | | | 1,303 | | | | 952 | |
Adjustments to reconcile to net cash provided by operating activities: | | | | | | | | | | | | |
Depreciation, decommissioning and amortization | | | 1,737 | | | | 1,522 | | | | 1,418 | |
Regulatory impacts of net nuclear decommissioning trust earnings | | | 146 | | | | 189 | | | | 158 | |
Other amortization | | | 152 | | | | 118 | | | | 120 | |
Asset impairments, lease terminations and other | | | 1,759 | | | | 47 | | | | 888 | |
Stock-based compensation | | | 30 | | | | 30 | | | | 22 | |
Equity in income unconsolidated affiliates | | | (86) | | | | (106) | | | | (42) | |
Distributions unconsolidated affiliates | | | 82 | | | | 92 | | | | 31 | |
Deferred income taxes and investment tax credits | | | (188) | | | | 1,139 | | | | (1,457) | |
Income from leveraged leases | | | (5) | | | | (5) | | | | (14) | |
Proceeds from U.S. treasure grants | | | 388 | | | | 92 | | | | — | |
Changes in operating assets and liabilities: | | | | | | | | | | | | |
Receivables | | | 19 | | | | (155) | | | | 80 | |
Inventory | | | (56) | | | | (49) | | | | 20 | |
Margin and collateral deposits – net of collateral received | | | 25 | | | | 63 | | | | 30 | |
Prepaid taxes | | | 302 | | | | (357) | | | | 178 | |
Other current assets | | | (85) | | | | (24) | | | | (45) | |
Rent payments in excess of levelized rent expense | | | (136) | | | | (149) | | | | (160) | |
Accounts payable | | | 56 | | | | (3) | | | | 152 | |
Accrued taxes | | | — | | | | (135) | | | | (402) | |
Other current liabilities | | | (33) | | | | 13 | | | | 31 | |
Derivative assets and liabilities – net | | | 383 | | | | (44) | | | | (581) | |
Regulatory assets and liabilities – net | | | (1,080) | | | | 278 | | | | 1,457 | |
Other assets | | | (120) | | | | (71) | | | | 62 | |
Other liabilities | | | 595 | | | | (315) | | | | 154 | |
Operating cash flows from discontinued operations | | | (3) | | | | 4 | | | | (7) | |
Net cash provided by operating activities | | | 3,906 | | | | 3,477 | | | | 3,045 | |
Cash flows from financing activities: | | | | | | | | | | | | |
Long-term debt issued | | | 1,376 | | | | 1,936 | | | | 939 | |
Long-term debt issuance costs | | | (35) | | | | (38) | | | | (25) | |
Long-term debt repaid | | | (67) | | | | (396) | | | | (1,044) | |
Bonds purchased | | | (86) | | | | — | | | | (219) | |
Preference stock issued – net | | | 123 | | | | — | | | | — | |
Short-term debt financing – net | | | 389 | | | | 30 | | | | (2,058) | |
Borrowing held in escrow pending completion of project construction | | | (97) | | | | — | | | | — | |
Settlements of stock-based compensation – net | | | (20) | | | | (16) | | | | (3) | |
Cash contributions from noncontrolling interests | | | — | | | | — | | | | 2 | |
Dividends and distributions to noncontrolling interests | | | (59) | | | | (52) | | | | (117) | |
Dividends paid | | | (417) | | | | (411) | | | | (404) | |
Net cash provided (used) by financing activities | | $ | 1,107 | | | $ | 1,053 | | | | $ (2,929) | |
Edison International ReportsFourth Quarterand Full Year2011 Financial Results
Page 14 of 14
| | | | | | | | | | | | |
| Consolidated Statement of Cash Flows | | Edison International | |
| |
| | | Years Ended December 31, | |
(in millions) | | | 2011 | | | | 2010 | | | | 2009 | |
Cash flows from investing activities: | | | | | | | | | | | | |
Capital expenditures | | | $ (4,808) | | | | $ (4,543) | | | | $ (3,282) | |
Purchase of interest in acquired companies | | | (3) | | | | (4) | | | | (22) | |
Proceeds from termination of leases | | | — | | | | — | | | | 1,420 | |
Proceeds from sale of nuclear decommissioning trust investments | | | 2,773 | | | | 1,432 | | | | 2,217 | |
Purchases of nuclear decommissioning trust investments and other | | | (2,940) | | | | (1,651) | | | | (2,416) | |
Proceeds from partnerships and unconsolidated subsidiaries, net of investment | | | 41 | | | | 44 | | | | 11 | |
Investments in other assets | | | 4 | | | | (1) | | | | (287) | |
Effect of consolidation and deconsolidation of variable interest entities | | | — | | | | (91) | | | | — | |
Net cash used by investing activities | | | (4,933) | | | | (4,841) | | | | (2,359) | |
Net increase (decrease) in cash and equivalents | | | 80 | | | | (284) | | | | (2,243) | |
Cash and cash equivalents, beginning of year | | | 1,389 | | | | 1,673 | | | | 3,916 | |
Cash and cash equivalents, end of year | | | $ 1,469 | | | | $ 1,389 | | | | $ 1,673 | |
