Carolina Power & Light Company
STATEMENTS OF CASH FLOWS Three Months Six Months Twelve Months
(In thousands) Ended Ended Ended
June 30 June 30 June 30
1997 1996 1997 1996 1997 1996
Operating Activities
Net income ........................................................$ 54,289 $ 62,656 $ 136,551 $ 181,002 $ 346,826 $ 399,611
Adjustments to reconcile net income to net cash provided by
operating activities
Depreciation and amortization ................................. 138,595 115,350 278,953 228,283 497,178 452,197
Harris Plant deferred costs ................................... 4,983 1,775 11,241 8,031 22,626 18,427
Deferred income taxes ......................................... (15,463) 12,639 (41,282) 27,265 62,271 124,457
Investment tax credit ......................................... (2,558) (2,610) (5,117) (5,221) (10,339) (9,459)
Allowance for equity funds used during construction ........... (55) (1,187) (116) (2,222) 2,096 (3,675)
Deferred fuel cost (credit) ................................... (8,851) 1,473 763 (9,936) (12,458) (26,585)
Net increase in receivables, inventories and prepaid expenses (18,703) (19,710) (35,517) (35,285) (65,025) (34,169)
Net increase (decrease) in payables and accrued expenses ...... (43,719) 29,302 (67,064) 10,687 (73,080) (22,102)
Miscellaneous ................................................. 136,900 20,488 170,957 26,232 209,576 34,633
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Net Cash Provided by Operating Activities ................... 245,418 220,176 449,369 428,836 979,671 933,335
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Investing Activities
Gross property additions .......................................... (81,333) (81,022) (173,412) (169,500) (373,220) (297,168)
Nuclear fuel additions ............................................ (12,189) (9,825) (33,805) (35,898) (85,172) (77,934)
Contributions to external decommissioning trust ................... (7,723) (7,722) (18,021) (18,020) (30,684) (29,479)
Contributions to retiree benefit trusts ........................... - - (21,096) (24,700) (21,096) (24,700)
Allowance for equity funds used during construction ............... 55 1,187 116 2,222 (2,096) 3,675
Miscellaneous ..................................................... (18) (5,328) (1,206) (18,566) (10,686) (30,559)
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Net Cash Used in Investing Activities .......................(101,208) (102,710) (247,424) (264,462) (522,954) (456,165)
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Financing Activities
Proceeds from issuance of long-term debt .......................... - 10,700 - 276,257 73,743 276,300
Net increase (decrease) in short-term notes
payable (maturity less than 90 days) ............................ (55,300) 77,109 31,676 80,749 (57,931) 71,792
Retirement of long-term debt ...................................... - (135,971) (61,427) (391,475) (137,762) (440,524)
Purchase of Company common stock .................................. (23,418) (4,676) (23,418) (6,596) (42,030) (131,042)
Dividends paid on common and preferred stock ...................... (70,007) (67,782) (139,331) (135,350) (274,799) (267,848)
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Net Cash Used in Financing Activities .......................(148,725) (120,620) (192,500) (176,415) (438,779) (491,322)
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Net Increase (Decrease) in Cash and Cash Equivalents ................ (4,515) (3,154) 9,445 (12,041) 17,938 (14,152)
Cash and Cash Equivalents at Beginning of the Period ................ 24,901 5,602 10,941 14,489 2,448 16,600
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Cash and Cash Equivalents at End of the Period ......................$ 20,386 $ 2,448 $ 20,386 $ 2,448 $ 20,386 $ 2,448
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Supplemental Disclosures of Cash Flow Information
Cash paid during the period - interest ..............................$ 36,935 $ 48,188 $ 90,037 $ 103,390 $ 245,701 $ 203,231
income taxes .........$ 96,490 $ 39,735 $ 97,294 $ 40,390 $ 149,710 $ 176,942
Noncash Activities
In June 1997, CaroCapital, Inc., a wholly-owned subsidiary, purchased all
remaining shares of Knowledge Builders, Inc. (KBI). In connection with the
purchase of KBI, the Company issued $20.5 million in common stock and paid $1.9
million in cash. (Note 4)
See Supplemental Data to Consolidated Interim Financial Statements