TXU CORP. AND SUBSIDIARIES
SEGMENT CONSOLIDATING INCOME STATEMENT
Quarter to Date Ended: June 30, 2005
TXU Energy TXU Electric Corporate Eliminations /
Holdings Delivery & Other Rounding Total
---------- ------------ --------- -------------- ------
Operating revenues 2,227 564 6 (311) 2,486
-----------------------------------------------------------
Direct costs and expenses
Cost of energy sold including delivery fees 1,216 -- -- (306) 910
Operating costs 177 180 2 1 360
Depreciation and amortization 76 108 2 -- 186
-----------------------------------------------------------
Total direct costs and expenses 1,469 288 4 (305) 1,456
-----------------------------------------------------------
Gross margin 758 276 2 (6) 1,030
Other costs and expenses
Selling, general and administrative expenses 113 43 33 (5) 184
Non-operating depreciation and other amortization 1 -- 2 -- 3
Franchise and revenue-based taxes 24 56 -- 1 81
Other income (6) -- (12) -- (18)
Other deductions 12 2 13 (1) 26
Interest income (11) (14) (16) 41 --
Interest expense and related charges 94 68 69 (42) 189
-----------------------------------------------------------
Total other costs and expenses 227 155 89 (6) 465
-----------------------------------------------------------
Income (loss) from continuing operations before income taxes
and extraordinary gain 531 121 (87) -- 565
Income tax expense (benefit) 186 35 (39) -- 182
-----------------------------------------------------------
Income (loss) from continuing operations before extraordinary gain 345 86 (48) -- 383
Income (loss) from discontinued operations, net of tax effect (1) -- (3) -- (4)
Extraordinary gain, net of tax -- -- -- -- --
-----------------------------------------------------------
Net income (loss) 344 86 (51) -- 379
Exchangeable preferred membership interest buyback premium -- -- -- --
Preference stock dividends -- -- 4 -- 4
-----------------------------------------------------------
Net income (loss) available to common shareholders 344 86 (55) -- 375
===========================================================
Average shares of common stock outstanding, basic (millions) 238
Average shares of common stock outstanding, diluted (millions) 243
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations before extraordinary gain 1.45 0.36 (0.20) 0.00 1.61
Exchangeable preferred membership interest buyback premium -- -- -- -- --
Preference stock dividends -- -- (0.02) -- (0.02)
---------- ---------- ---------- ----------- ----------
Net income (loss) from continuing operations
available for common stock 1.45 0.36 (0.22) 0.00 1.59
Income (loss) from discontinued operations, net of tax effect -- -- (0.02) -- (0.02)
Extraordinary gain, net of tax -- -- -- -- --
---------- ---------- ---------- ----------- ----------
Net income (loss) available for common stock 1.45 0.36 (0.24) -- 1.57
Diluted earnings:
Income (loss) from continuing operations before extraordinary gain 1.42 0.35 (0.34)* 0.00 1.43
Exchangeable preferred membership interest buyback premium -- -- -- -- --
Preference stock dividends -- -- (0.02) -- (0.02)
---------- ---------- ---------- ----------- ----------
Net income (loss) from continuing operations
available for common stock 1.42 0.35 (0.36) 0.00 1.41
Income (loss) from discontinued operations, net of tax effect -- -- (0.02) -- (0.02)
Extraordinary gain, net of tax -- -- -- -- --
---------- ---------- ---------- ----------- ----------
Net income (loss) available for common stock 1.42 0.35 (0.38) -- 1.39
Dividends declared 0.563
* Reflects the dilution adjustment [ ($36) million / 5 million shares]
Page 1 of 3
TXU CORP. AND SUBSIDIARIES
SEGMENT CONSOLIDATING INCOME STATEMENT
Quarter to Date Ended: June 30, 2004
TXU Energy TXU Electric Corporate Eliminations /
Holdings Delivery & Other Rounding Total
---------- ------------ --------- -------------- ------
Operating revenues 2,115 518 11 (341) 2,303
-----------------------------------------------------------
Direct costs and expenses
Cost of energy sold including delivery fees 1,348 -- (2) (333) 1,013
Operating costs 200 180 4 (5) 379
Depreciation and amortization 82 84 1 -- 167
-----------------------------------------------------------
Total direct costs and expenses 1,630 264 3 (338) 1,559
-----------------------------------------------------------
Gross margin 485 254 8 (3) 744
Other costs and expenses
Selling, general and administrative expenses 163 53 88 (4) 300
Non-operating depreciation and other amortization 6 (1) 6 -- 11
Franchise and revenue-based taxes 27 59 1 (1) 86
Other income (12) (2) (3) 1 (16)
Other deductions 261 19 159 (1) 438
Interest income (7) (14) (20) 39 (2)
Interest expense and related charges 93 71 48 (38) 174
-----------------------------------------------------------
Total other costs and expenses 531 185 279 (4) 991
-----------------------------------------------------------
Income (loss) from continuing operations before income taxes
and extraordinary gain (46) 69 (271) 1 (247)
Income tax expense (benefit) (27) 22 (152) -- (157)
-----------------------------------------------------------
Income (loss) from continuing operations before extraordinary gain (19) 47 (119) 1 (90)
Income (loss) from discontinued operations, net of tax effect (27) -- 357 -- 330
Extraordinary gain, net of tax -- 16 -- -- 16
-----------------------------------------------------------
Net income (loss) (46) 63 238 1 256
Exchangeable preferred membership interest buyback premium -- -- 849 849
Preference stock dividends -- -- 5 -- 5
-----------------------------------------------------------
Net income (loss) available to common shareholders (46) 63 (616) 1 (598)
===========================================================
Average shares of common stock outstanding, basic (millions) 320
Average shares of common stock outstanding, diluted (millions) 320
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations before extraordinary gain (0.06) 0.15 (0.37) -- (0.28)
Exchangeable preferred membership interest buyback premium -- -- (2.65) -- (2.65)
Preference stock dividends -- -- (0.02) -- (0.02)
---------- ---------- ---------- ----------- ----------
Net income (loss) from continuing operations
available for common stock (0.06) 0.15 (3.04) -- (2.95)
Income (loss) from discontinued operations, net of tax effect (0.08) -- 1.11 -- 1.03
Extraordinary gain, net of tax -- 0.05 -- -- 0.05
---------- ---------- ---------- ----------- ----------
Net income (loss) available for common stock (0.14) 0.20 (1.93) -- (1.87)
Diluted earnings:
Income (loss) from continuing operations before extraordinary gain (0.06) 0.15 (0.37) -- (0.28)
Exchangeable preferred membership interest buyback premium -- -- (2.65) -- (2.65)
Preference stock dividends -- -- (0.02) -- (0.02)
---------- ---------- ---------- ----------- ----------
Net income (loss) from continuing operations
available for common stock (0.06) 0.15 (3.04) -- (2.95)
Income (loss) from discontinued operations, net of tax effect (0.08) -- 1.11 -- 1.03
Extraordinary gain, net of tax -- 0.05 -- -- 0.05
---------- ---------- ---------- ----------- ----------
Net income (loss) available for common stock (0.14) 0.20 (1.93) -- (1.87)
Dividends declared 0.125
Page 2 of 3
TXU CORP. AND SUBSIDIARIES
SEGMENT CONSOLIDATING INCOME STATEMENT - VARIANCE
Quarter to Date Ended June 30, 2005 vs June 30, 2004
TXU Energy TXU Electric Corporate Eliminations /
Holdings Delivery & Other Rounding Total
---------- ------------ --------- -------------- ------
Operating revenues 112 46 (5) 30 183
-----------------------------------------------------------
Direct costs and expenses
Cost of energy sold including delivery fees (132) -- 2 27 (103)
Operating costs (23) -- (2) 6 (19)
Depreciation and amortization (6) 24 1 -- 19
-----------------------------------------------------------
Total direct costs and expenses (161) 24 1 33 (103)
-----------------------------------------------------------
Gross margin 273 22 (6) (3) 286
Other costs and expenses
Selling, general and administrative expenses (50) (10) (55) (1) (116)
Non-operating depreciation and other amortization (5) 1 (4) -- (8)
Franchise and revenue-based taxes (3) (3) (1) 2 (5)
Other income 6 2 (9) (1) (2)
Other deductions (249) (17) (146) -- (412)
Interest income (4) -- 4 2 2
Interest expense and related charges 1 (3) 21 (4) 15
-----------------------------------------------------------
Total other costs and expenses (304) (30) (190) (2) (526)
-----------------------------------------------------------
Income (loss) from continuing operations before income taxes
and extraordinary gain 577 52 184 (1) 812
Income tax expense (benefit) 213 13 113 -- 339
-----------------------------------------------------------
Income (loss) from continuing operations before extraordinary gain 364 39 71 (1) 473
Income (loss) from discontinued operations, net of tax effect 26 -- (360) -- (334)
Extraordinary gain, net of tax -- (16) -- -- (16)
-----------------------------------------------------------
Net income (loss) 390 23 (289) (1) 123
Exchangeable preferred membership interest buyback premium -- -- (849) -- (849)
Preference stock dividends -- -- (1) -- (1)
-----------------------------------------------------------
Net income (loss) available to common shareholders 390 23 561 (1) 973
===========================================================
Average shares of common stock outstanding, basic (millions)
Average shares of common stock outstanding, diluted (millions) (82)
(78)
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations before extraordinary gain 1.51 0.21 0.17 0.00 1.89
Exchangeable preferred membership interest buyback premium -- -- 2.65 -- 2.65
Preference stock dividends -- -- -- -- --
---------- ---------- ---------- ----------- ----------
Net income (loss) from continuing operations
available for common stock 1.51 0.21 2.82 4.54
Income (loss) from discontinued operations, net of tax effect 0.08 -- (1.13) -- (1.05)
Extraordinary gain, net of tax -- (0.05) -- -- (0.05)
---------- ---------- ---------- ----------- ----------
Net income (loss) available for common stock 1.59 0.16 1.69 -- 3.44
Diluted earnings:
Income (loss) from continuing operations before extraordinary gain 1.48 0.20 0.03 0.00 1.71
Exchangeable preferred membership interest buyback premium -- -- 2.65 -- 2.65
Preference stock dividends -- -- -- -- --
---------- ---------- ---------- ----------- ----------
Net income (loss) from continuing operations
available for common stock 1.48 0.20 2.68 4.36
Income (loss) from discontinued operations, net of tax effect 0.08 -- (1.13) -- (1.05)
Extraordinary gain, net of tax -- (0.05) -- -- (0.05)
---------- ---------- ---------- ----------- ----------
Net income (loss) available for common stock 1.56 0.15 1.55 -- 3.26
Dividends declared 0.438
Page 3 of 3
TXU CORP. AND SUBSIDIARIES
SEGMENT CONSOLIDATING INCOME STATEMENT
Year to Date Ended: June 30, 2005
TXU Energy TXU Electric Corporate Eliminations /
Holdings Delivery & Other Rounding Total
---------- ------------ --------- -------------- ------
Operating revenues 4,030 1,114 12 (630) 4,526
-----------------------------------------------------------
Direct costs and expenses
Cost of energy sold including delivery fees 2,272 -- 1 (619) 1,654
Operating costs 330 362 -- -- 692
Depreciation and amortization 154 213 4 -- 371
-----------------------------------------------------------
Total direct costs and expenses 2,756 575 5 (619) 2,717
-----------------------------------------------------------
Gross margin 1,274 539 7 (11) 1,809
Other costs and expenses
Selling, general and administrative expenses 227 91 59 (9) 368
Non-operating depreciation and other amortization 2 -- 4 -- 6
Franchise and revenue-based taxes 50 114 2 (1) 165
Other income (8) (2) (59) -- (69)
Other deductions 13 6 11 (1) 29
Interest income (21) (29) (49) 80 (19)
Interest expense and related charges 185 136 143 (80) 384
-----------------------------------------------------------
Total other costs and expenses 448 316 111 (11) 864
-----------------------------------------------------------
Income (loss) from continuing operations before income taxes
and extraordinary gain 826 223 (104) -- 945
Income tax expense (benefit) 278 66 (189) -- 155
-----------------------------------------------------------
Income (loss) from continuing operations before extraordinary gain 548 157 85 -- 790
Income (loss) from discontinued operations, net of tax effect (4) -- 15 -- 11
Extraordinary gain, net of tax -- -- -- -- --
-----------------------------------------------------------
Net income (loss) 544 157 100 -- 801
Exchangeable preferred membership interest buyback premium -- -- -- --
Preference stock dividends -- -- 10 -- 10
-----------------------------------------------------------
Net income (loss) available to common shareholders 544 157 90 -- 791
===========================================================
Average shares of common stock outstanding, basic (millions) 238
Average shares of common stock outstanding, diluted (millions) 243
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations before extraordinary gain 2.30 0.66 0.36 -- 3.32
Exchangeable preferred membership interest buyback premium -- -- -- -- --
Preference stock dividends -- -- (0.04) -- (0.04)
---------- ---------- ---------- ----------- ----------
Net income (loss) from continuing operations
available for common stock 2.30 0.66 0.32 -- 3.28
Income (loss) from discontinued operations, net of tax effect (0.01) -- 0.05 -- 0.04
Extraordinary gain, net of tax -- -- -- -- --
---------- ---------- ---------- ----------- ----------
Net income (loss) available for common stock 2.29 0.66 0.37 -- 3.32
Diluted earnings:
Income (loss) from continuing operations before extraordinary gain 2.26 0.65 (1.71) -- 1.20
Exchangeable preferred membership interest buyback premium -- -- -- -- --
Preference stock dividends -- -- (0.04) -- (0.04)
---------- ---------- ---------- ----------- ----------
Net income (loss) from continuing operations
available for common stock 2.26 0.65 (1.75) -- 1.16
Income (loss) from discontinued operations, net of tax effect (0.02) -- 0.07 -- 0.05
Extraordinary gain, net of tax -- -- -- -- --
---------- ---------- ---------- ----------- ----------
Net income (loss) available for common stock 2.24 0.65 (1.68) -- 1.21
Dividends declared 1.125
* Reflects the dilution adjustment [ ($498) million / 5 million shares]
Page 1 of 3
TXU CORP. AND SUBSIDIARIES
SEGMENT CONSOLIDATING INCOME STATEMENT
Year to Date Ended: June 30, 2004
TXU Energy TXU Electric Corporate Eliminations /
Holdings Delivery & Other Rounding Total
---------- ------------ --------- -------------- ------
Operating revenues 4,072 1,041 17 (695) 4,435
-----------------------------------------------------------
Direct costs and expenses
Cost of energy sold including delivery fees 2,602 -- (2) (680) 1,920
Operating costs 367 355 2 (5) 719
Depreciation and amortization 164 167 1 1 333
-----------------------------------------------------------
Total direct costs and expenses 3,133 522 1 (684) 2,972
-----------------------------------------------------------
Gross margin 939 519 16 (11) 1,463
Other costs and expenses
Selling, general and administrative expenses 310 103 127 (11) 529
Non-operating depreciation and other amortization 21 3 12 -- 36
Franchise and revenue-based taxes 53 117 1 -- 171
Other income (13) (4) (10) 2 (25)
Other deductions 281 19 158 (1) 457
Interest income (8) (25) (24) 51 (6)
Interest expense and related charges 172 141 96 (51) 358
-----------------------------------------------------------
Total other costs and expenses 816 354 360 (10) 1,520
-----------------------------------------------------------
Income (loss) from continuing operations before income taxes
and extraordinary gain 123 165 (344) (1) (57)
Income tax expense (benefit) 26 52 (174) -- (96)
-----------------------------------------------------------
Income (loss) from continuing operations before extraordinary gain 97 113 (170) (1) 39
Income (loss) from discontinued operations, net of tax effect (30) -- 409 1 380
Extraordinary gain, net of tax -- 16 -- -- 16
-----------------------------------------------------------
Net income (loss) 67 129 239 -- 435
Exchangeable preferred membership interest buyback premium -- -- 849 849
Preference stock dividends -- -- 11 -- 11
-----------------------------------------------------------
Net income (loss) available to common shareholders 67 129 (621) -- (425)
===========================================================
Average shares of common stock outstanding, basic (millions) 322
Average shares of common stock outstanding, diluted (millions) 322
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations before extraordinary gain 0.30 0.35 (0.53) -- 0.12
Exchangeable preferred membership interest buyback premium -- -- (2.64) -- (2.64)
Preference stock dividends -- -- (0.03) -- (0.03)
---------- ---------- ---------- ----------- ----------
Net income (loss) from continuing operations
available for common stock 0.30 0.35 (3.20) -- (2.55)
Income (loss) from discontinued operations, net of tax effect (0.09) -- 1.27 -- 1.18
Extraordinary gain, net of tax -- 0.05 -- -- 0.05
---------- ---------- ---------- ----------- ----------
Net income (loss) available for common stock 0.21 0.40 (1.93) -- (1.32)
Diluted earnings:
Income (loss) from continuing operations before extraordinary gain 0.30 0.35 (0.53) -- 0.12
Exchangeable preferred membership interest buyback premium -- -- (2.64) -- (2.64)
Preference stock dividends -- -- (0.03) -- (0.03)
---------- ---------- ---------- ----------- ----------
Net income (loss) from continuing operations
available for common stock 0.30 0.35 (3.20) -- (2.55)
Income (loss) from discontinued operations, net of tax effect (0.09) -- 1.27 -- 1.18
Extraordinary gain, net of tax -- 0.05 -- -- 0.05
---------- ---------- ---------- ----------- ----------
Net income (loss) available for common stock 0.21 0.40 (1.93) -- (1.32)
Dividends declared 0.250
Page 2 of 3
TXU CORP. AND SUBSIDIARIES
SEGMENT CONSOLIDATING INCOME STATEMENT - VARIANCE
Year to Date Ended June 30, 2005 vs June 30, 2004
TXU Energy TXU Electric Corporate Eliminations /
Holdings Delivery & Other Rounding Total
---------- ------------ --------- -------------- ------
Operating revenues (42) 73 (5) 65 91
-----------------------------------------------------------
Direct costs and expenses
Cost of energy sold including delivery fees (330) -- 3 61 (266)
Operating costs (37) 7 (2) 5 (27)
Depreciation and amortization (10) 46 3 (1) 38
-----------------------------------------------------------
Total direct costs and expenses (377) 53 4 65 (255)
-----------------------------------------------------------
Gross margin 335 20 (9) -- 346
Other costs and expenses
Selling, general and administrative expenses (83) (12) (68) 2 (161)
Non-operating depreciation and other amortization (19) (3) (8) -- (30)
Franchise and revenue-based taxes (3) (3) 1 (1) (6)
Other income 5 2 (49) (2) (44)
Other deductions (268) (13) (147) -- (428)
Interest income (13) (4) (25) 29 (13)
Interest expense and related charges 13 (5) 47 (29) 26
-----------------------------------------------------------
Total other costs and expenses (368) (38) (249) (1) (656)
-----------------------------------------------------------
Income (loss) from continuing operations before income taxes
and extraordinary gain 703 58 240 1 1,002
Income tax expense (benefit) 252 14 (15) -- 251
-----------------------------------------------------------
Income (loss) from continuing operations before extraordinary gain 451 44 255 1 751
Income (loss) from discontinued operations, net of tax effect 26 -- (394) (1) (369)
Extraordinary gain, net of tax -- (16) -- -- (16)
-----------------------------------------------------------
Net income (loss) 477 28 (139) -- 366
Exchangeable preferred membership interest buyback premium -- -- (849) -- (849)
Preference stock dividends -- -- (1) -- (1)
-----------------------------------------------------------
Net income (loss) available to common shareholders 477 28 711 -- 1,216
===========================================================
Average shares of common stock outstanding, basic (millions) (84)
Average shares of common stock outstanding, diluted (millions) (79)
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations before extraordinary gain 2.00 0.31 0.89 -- 3.20
Exchangeable preferred membership interest buyback premium -- -- 2.64 -- 2.64
Preference stock dividends -- -- (0.01) -- (0.01)
---------- ---------- ---------- ----------- ----------
Net income (loss) from continuing operations
available for common stock 2.00 0.31 3.52 -- 5.83
Income (loss) from discontinued operations, net of tax effect 0.08 -- (1.22) -- (1.14)
Extraordinary gain, net of tax -- (0.05) -- -- (0.05)
---------- ---------- ---------- ----------- ----------
Net income (loss) available for common stock 2.08 0.26 2.30 -- 4.64
Diluted earnings:
Income (loss) from continuing operations before extraordinary gain 1.96 0.30 (1.18) -- 1.08
Exchangeable preferred membership interest buyback premium -- -- 2.64 -- 2.64
Preference stock dividends -- -- (0.01) -- (0.01)
---------- ---------- ---------- ----------- ----------
Net income (loss) from continuing operations
available for common stock 1.96 0.30 1.45 -- 3.71
Income (loss) from discontinued operations, net of tax effect 0.07 -- (1.20) -- (1.13)
Extraordinary gain, net of tax -- (0.05) -- -- (0.05)
---------- ---------- ---------- ----------- ----------
Net income (loss) available for common stock 2.03 0.25 0.25 -- 2.53
Dividends declared 0.875
Page 3 of 3
TXU CORP. AND SUBSIDIARIES
================================================================================
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(UNAUDITED)
Six Months Ended
June 30,
-----------------------
2005 2004
------- -------
(MILLIONS OF DOLLARS)
Cash flows - operating activities:
Income from continuing operations $ 790 $ 39
Adjustments to reconcile income from continuing operations to cash provided by
operating activities:
Depreciation and amortization 407 400
Deferred income taxes and investment tax credits -- net 4 (143)
(Gain) loss on early extinguishment of debt (1) 49
Net effect of unrealized mark-to-market valuations of commodity contracts (18) 31
Asset write-down charges -- 189
Decrease in accrued lease liability for out-of-service assets (12) --
Net (gain) loss from sale of assets (25) 15
Net equity income from unconsolidated affiliates and joint ventures -- (1)
Change in regulatory-related liabilities (41) (40)
Net litigation settlement charge (credit) (35) 100
Charge for contract counterparty nonperformance 12 --
Stock-based compensation expense 15 22
Amortization of losses on de-designated cash flow hedges 12 13
Bad debt expense 19 47
Changes in operating assets and liabilities (533) (234)
------- -------
Cash provided by operating activities 594 487
------- -------
Cash flows - financing activities:
Issuances of securities:
Long-term debt 71 790
Common stock 4 18
Retirements/repurchases of securities:
Long-term debt held by subsidiary trusts -- (237)
Equity-linked debt (31) (427)
Other long-term debt (92) (1,069)
Exchangeable preferred membership interests -- (750)
Common stock (530) (978)
Preference stock (300) --
Change in notes payable:
Banks 1,110 2,675
Cash dividends paid:
Common stock (274) (80)
Preference stock (11) (11)
Premium paid for redemption of exchangeable preferred membership interests -- (1,093)
Debt premium, discount, financing and reacquisition expenses (29) 3
------- -------
Cash used in financing activities (82) (1,159)
------- -------
Cash flows - investing activities:
Capital expenditures (507) (355)
Nuclear fuel (26) (47)
Dispositions of businesses -- 991
Other 23 19
------- -------
Cash provided by (used in) investing activities (510) 608
------- -------
Discontinued operations:
Cash provided by (used in) operating activities (21) 55
Cash used in financing activities -- (116)
Cash used in investing activities (2) (13)
------- -------
Cash used in discontinued operations (23) (74)
------- -------
Net change in cash and cash equivalents (21) (138)
Cash and cash equivalents -- beginning balance 106 829
------- -------
Cash and cash equivalents -- ending balance $ 85 $ 691
======= =======
================================================================================
Page 1 of 1
TXU CORP. AND SUBSIDIARIES
================================================================================
CONSOLIDATING BALANCE SHEET
JUNE 30, 2005
(DOLLARS IN MILLIONS)
(UNAUDITED)
Electric Eliminations/
Energy Delivery Other Rounding Total
----------- ------------ ---------- ------------- ----------
ASSETS
Current assets
Cash and cash equivalents 64 3 19 (1) 85
Restricted cash 9 34 -- -- 43
Advances to affiliates 1,620 -- -- (1,620) --
Accounts receivable - trade 1,033 115 321 (279) 1,190
Income taxes receivable -- -- 111 (111) --
Accounts receivable - affiliates -- 344 11 (355) --
Notes or other receivables due from affiliates -- 32 -- (32) --
Inventories 293 51 3 -- 347
Commodity contract assets 999 -- -- -- 999
Accumulated deferred income taxes 81 -- 93 (24) 150
Other current assets 184 63 50 (2) 295
----------------------------------------------------------------
Total current assets 4,283 642 608 (2,424) 3,109
----------------------------------------------------------------
Investments
Restricted cash 12 11 4 1 28
Other investments 546 78 6,808 (6,750) 682
Property, plant and equipment - net 9,802 6,845 121 18 16,786
Notes or other receivables due from affiliates -- 371 -- (371) --
Goodwill 517 25 -- -- 542
Regulatory assets - net -- 1,852 -- -- 1,852
Commodity contract assets 338 -- -- -- 338
Cash flow hedge and other derivative assets 30 -- 52 -- 82
Other noncurrent assets 236 106 924 (949) 317
Assets held for sale 14 -- -- -- 14
----------------------------------------------------------------
Total assets 15,778 9,930 8,517 (10,475) 23,750
================================================================
LIABILITIES, PREFERRED SECURITIES OF SUBSIDIARIES
& SHAREHOLDERS' EQUITY
Current liabilities
Notes payable - banks 1,160 160 -- -- 1,320
Advances from affiliates -- 42 1,578 (1,620) --
Long-term debt due currently 431 184 698 -- 1,313
Accounts payable - trade 730 102 296 (279) 849
Accounts payable - affiliates 359 -- -- (359) --
Notes or other liabilities due to affiliates 32 -- -- (32) --
Commodity contract liabilities 726 -- -- -- 726
Litigation and other settlement accruals 13 221 -- 234
Other current liabilities 757 306 237 (137) 1,163
----------------------------------------------------------------
Total current liabilities 4,195 807 3,030 (2,427) 5,605
----------------------------------------------------------------
Accumulated deferred income taxes 2,106 1,473 -- (887) 2,692
Investment tax credits 334 60 -- 1 395
Commodity contract liabilities 526 -- -- -- 526
Cash flow hedge and other derivative liabilities 125 -- 15 1 141
Notes or other liabilities due to affiliates 371 -- -- (371) --
Long-term debt, less amounts due currently 2,855 4,153 4,317 -- 11,325
Other noncurrent liabilities and deferred credits 890 563 1,201 (66) 2,588
Liabilities held for sale 4 -- -- -- 4
----------------------------------------------------------------
Total liabilities 11,406 7,056 8,563 (3,749) 23,276
----------------------------------------------------------------
Preferred securities of subsidiaries 519 -- (481) -- 38
Shareholders' equity
Preferred stock - not subject to mandatory redemption -- -- -- -- --
Common stock -- -- 2 -- 2
Additional paid in capital 2,263 2,092 2,325 (4,355) 2,325
Retained earnings (deficit) 1,687 810 (1,760) (2,496) (1,759)
Accumulated other comprehensive income (loss) (97) (28) (132) 125 (132)
----------------------------------------------------------------
Total shareholders' equity 3,853 2,874 435 (6,726) 436
----------------------------------------------------------------
Total liabilities, preferred securities of subsidiaries &
shareholders' equity 15,778 9,930 8,517 (10,475) 23,750
================================================================
================================================================================
Page 1 of 3
TXU CORP. AND SUBSIDIARIES
================================================================================
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2004
(DOLLARS IN MILLIONS)
(UNAUDITED)
Electric Eliminations/
Energy Delivery Other Rounding Total
----------- ------------ ---------- ------------- ----------
ASSETS
Current assets
Cash and cash equivalents 70 -- 36 -- 106
Restricted cash 6 43 -- -- 49
Advances to affiliates 686 -- -- (686) --
Accounts receivable - trade 1,139 72 400 (337) 1,274
Income taxes receivable -- -- 234 (209) 25
Accounts receivable - affiliates -- 194 -- (194) --
Notes or other receivables due from affiliates -- 49 -- (49) --
Inventories 284 33 3 -- 320
Commodity contract assets 546 -- -- -- 546
Accumulated deferred income taxes 94 -- 130 -- 224
Other current assets 139 31 85 (6) 249
----------------------------------------------------------------
Total current assets 2,964 422 888 (1,481) 2,793
----------------------------------------------------------------
Investments
Restricted cash 15 13 19 -- 47
Other investments 538 49 6,354 (6,277) 664
Property, plant and equipment - net 9,920 6,609 147 -- 16,676
Notes or other receivables due from affiliates -- 386 -- (386) --
Goodwill 517 25 -- -- 542
Regulatory assets - net -- 1,891 -- -- 1,891
Commodity contract assets 315 -- -- -- 315
Cash flow hedge and other derivative assets 8 -- (2) -- 6
Other noncurrent assets 221 98 725 (761) 283
Assets held for sale 17 -- 7 -- 24
----------------------------------------------------------------
Total assets 14,515 9,493 8,138 (8,905) 23,241
================================================================
LIABILITIES, PREFERRED SECURITIES OF SUBSIDIARIES
& SHAREHOLDERS' EQUITY
Current liabilities
Notes payable - banks 210 -- -- -- 210
Advances from affiliates -- 63 623 (686) --
Long-term debt due currently 31 182 15 1 229
Accounts payable - trade 956 89 370 (338) 1,077
Accounts payable - affiliates 191 -- 2 (193) --
Notes or other liabilities due to affiliates 49 -- -- (49) --
Commodity contract liabilities 491 -- -- -- 491
Litigation and other settlement accruals 21 370 -- 391
Other current liabilities 803 362 368 (215) 1,318
----------------------------------------------------------------
Total current liabilities 2,731 717 1,748 (1,480) 3,716
----------------------------------------------------------------
Accumulated deferred income taxes 1,927 1,524 -- (730) 2,721
Investment tax credits 342 63 -- -- 405
Commodity contract liabilities 347 -- -- -- 347
Cash flow hedge and other derivative liabilities 178 -- 17 -- 195
Notes or other liabilities due to affiliates 386 -- -- (386) --
Long-term debt, less amounts due currently 3,226 4,199 4,987 -- 12,412
Other noncurrent liabilities and deferred credits 1,270 303 1,219 (30) 2,762
Liabilities held for sale 6 -- -- -- 6
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Total liabilities 10,413 6,806 7,971 (2,626) 22,564
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Preferred securities of subsidiaries 511 -- (473) -- 38
Shareholders' equity
Preferred stock - not subject to mandatory redemption -- -- 300 -- 300
Common stock -- -- 2 -- 2
Additional paid in capital 2,781 2,061 2,806 (4,842) 2,806
Retained earnings (deficit) 961 653 (2,283) (1,614) (2,283)
Accumulated other comprehensive income (loss) (151) (27) (185) 177 (186)
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Total shareholders' equity 3,591 2,687 640 (6,279) 639
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Total liabilities, preferred securities of subsidiaries &
shareholders' equity 14,515 9,493 8,138 (8,905) 23,241
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Page 2 of 3
TXU CORP. AND SUBSIDIARIES
================================================================================
CONSOLIDATING BALANCE SHEET - VARIANCE
JUNE 30, 2005 VS DECEMBER 31, 2004
(DOLLARS IN MILLIONS)
(UNAUDITED)
Electric Eliminations/
Energy Delivery Other Rounding Total
----------- ------------ ---------- ------------- ----------
ASSETS
Current assets
Cash and cash equivalents (6) 3 (17) (1) (21)
Restricted cash 3 (9) -- -- (6)
Advances to affiliates 934 -- -- (934) --
Accounts receivable - trade (106) 43 (79) 58 (84)
Income taxes receivable -- -- (123) 98 (25)
Accounts receivable - affiliates -- 150 11 (161) --
Notes or other receivables due from affiliates -- (17) -- 17 --
Inventories 9 18 -- -- 27
Commodity contract assets 453 -- -- -- 453
Accumulated deferred income taxes (13) -- (37) (24) (74)
Other current assets 45 32 (35) 4 46
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Total current assets 1,319 220 (280) (943) 316
----------------------------------------------------------------
Investments
Restricted cash (3) (2) (15) 1 (19)
Other investments 8 29 454 (473) 18
Property, plant and equipment - net (118) 236 (26) 18 110
Notes or other receivables due from affiliates -- (15) -- 15 --
Goodwill -- -- -- -- --
Regulatory assets - net -- (39) -- -- (39)
Commodity contract assets 23 -- -- -- 23
Cash flow hedge and other derivative assets 22 -- 54 -- 76
Other noncurrent assets 15 8 199 (188) 34
Assets held for sale (3) -- (7) -- (10)
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Total assets 1,263 437 379 (1,570) 509
================================================================
LIABILITIES, PREFERRED SECURITIES OF SUBSIDIARIES
& SHAREHOLDERS' EQUITY
Current liabilities
Notes payable - banks 950 160 -- -- 1,110
Advances from affiliates -- (21) 955 (934) --
Long-term debt due currently 400 2 683 (1) 1,084
Accounts payable - trade (226) 13 (74) 59 (228)
Accounts payable - affiliates 168 -- (2) (166) --
Notes or other liabilities due to affiliates (17) -- -- 17 --
Commodity contract liabilities 235 -- -- -- 235
Litigation and other settlement accruals -- (8) (149) -- (157)
Other current liabilities (46) (56) (131) 78 (155)
----------------------------------------------------------------
Total current liabilities 1,464 90 1,282 (947) 1,889
----------------------------------------------------------------
Accumulated deferred income taxes 179 (51) -- (157) (29)
Investment tax credits (8) (3) -- 1 (10)
Commodity contract liabilities 179 -- -- -- 179
Cash flow hedge and other derivative liabilities (53) -- (2) 1 (54)
Notes or other liabilities due to affiliates (15) -- -- 15 --
Long-term debt, less amounts due currently (371) (46) (670) -- (1,087)
Other noncurrent liabilities and deferred credits (380) 260 (18) (36) (174)
Liabilities held for sale (2) -- -- -- (2)
----------------------------------------------------------------
Total liabilities 993 250 592 (1,123) 712
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Preferred securities of subsidiaries 8 -- (8) -- --
Shareholders' equity
Preferred stock - not subject to mandatory redemption -- -- (300) -- (300)
Common stock -- -- -- -- --
Additional paid in capital (518) 31 (481) 487 (481)
Retained earnings (deficit) 726 157 523 (882) 524
Accumulated other comprehensive income (loss) 54 (1) 53 (52) 54
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Total shareholders' equity 262 187 (205) (447) (203)
----------------------------------------------------------------
Total liabilities, preferred securities of subsidiaries &
shareholders' equity 1,263 437 379 (1,570) 509
================================================================
================================================================================
Page 3 of 3
TXU CORP. REGULATORY SUMMARY
================================================================================
COMPANY SUMMARY/EVENTS
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TXU Energy PRICE TO BEAT (PTB) applies to former franchise area
residential and small/medium business (< 1MW of load)
customers. Until 1/1/05 TXU Energy was permitted to offer
only one rate -- the PTB -- to residential customers. TXU
Energy has been permitted to offer rates other than the
PTB to small/medium commercial customers since 2004, and
as of 1/1/05, has been permitted to offer rates other
than the PTB to residential customers. TXU Energy must
also make service at the PTB price available until
1/1/07. The fuel component of the PTB can be changed
twice per year if gas prices (20-day average of NYMEX
12-month strip) change by more than 5% (10% after 11/15
of any year) from the current price upon which PTB fuel
factor is based. Changes in the PTB fuel factor are
initiated by TXU Energy through a filing with the PUC.
PUC NO. 31004 - Application of TXU Energy Retail Company
to Increase Price to Beat Fuel Factor filed April 15,
2005
+ Requested 20.8% increase in PTB fuel factor.
+ Resulted in a 9.9% increase to residential customers
using 1,000 kWh per month.
+ Approved by the PUC on May 11, 2005.
TXU Electric TXU ELECTRIC DELIVERY GENERAL RATE CASE: Authorized ROE
Delivery of 11.25%, Capital structure of 60% Debt, 40% Equity.
Reports are filed annually for review with the PUC. In
2004, certain cities within TXU Electric Delivery's
historical service territory, acting in their role as a
regulatory authority (with original jurisdiction),
initiated inquiries to determine if the rates of TXU
Electric Delivery, which have been established by the
Public Utility Commission, are just and reasonable.
Twenty-three cities passed such resolutions (and eleven
passed resolutions supporting the other cities). TXU
Electric Delivery has the right to appeal any city action
to the Public Utility Commission. In the fourth quarter
of 2004, TXU Electric Delivery recorded a $21 million
charge, reported in other deductions, for estimated
settlement payments arising from the resolution of these
inquiries. The settlement agreement, which was finalized
February 22, 2005, avoids any immediate rate actions, but
requires TXU Electric Delivery to file a rate case in
2006, based on a 2005 test year, unless the Cities and
TXU Electric Delivery mutually agree that such a filing
is unnecessary. TXU Electric Delivery has offered the
benefits of the settlement to non-litigant cities. The
final settlement amount is undetermined; however, TXU
Electric Delivery believes it will approximate the amount
accrued.
PUC NO. 30655 - Petition of TXU Electric Delivery
Company for Approval of Transmission Cost Recovery Factor
(TCRF) Update
+ The PUC approved TXU Electric Delivery's proposed TCRF
on February 23, 2005 (with new TCRF rates effective
March 1, 2005)
+ The increase will recover an additional $1.6 million
in annual revenue.
PUC NO. 31371 - Petition of TXU Electric Delivery
Company for Approval of Transmission Cost Recovery Factor
(TCRF) Update
+ Filed July 18, 2005, new TCRF rates to be effective
September 1, 2005
+ Decrease of $9 million annually, due to reduction in
LCRA's transmission service rate.
PUC NO. 30802 - Application of TXU Electric Delivery
Company for Interim Update of Wholesale Transmission
Rates filed February 28, 2005
+ New rate approved and effective April 29, 2005
+ Total annualized revenue increase of $23 million
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TXU CORP. SUMMARY OF SIGNIFICANT LEGAL PROCEEDINGS
================================================================================
- -----------------------------------------------------------------------------------------------------------------------------
DATE FILED CASE INFORMATION SUMMARY AND STATUS
- -----------------------------------------------------------------------------------------------------------------------------
2/18/05 UTILITY CHOICE, L.P. AND CIRRO GROUP, Claims that defendants engaged in anticompetitive conduct.
INC. V. TXU CORP, ET AL; Civil Action The Court has set a briefing schedule for motions to dismiss.
in United States District Court for the
Southern District of Texas, Houston
Division
- -----------------------------------------------------------------------------------------------------------------------------
10/19/2004 - IN RE NATURAL GAS ANTI-TRUST CASES I, Ten lawsuits filed in various California superior courts by
12/30/2004 II, III, IV, AND V; Civil Action in San purported customers v. TXU Corp. and certain subs and other
Diego Superior Court. marketers, traders, deliverers and sellers of natural gas in
California. Allege that beginning by summer of 2000,
defendants manipulated natural gas prices in California in
violation of the Cartwright Act and other California state
laws.
- -----------------------------------------------------------------------------------------------------------------------------
7/7/2003 TEXAS COMMERCIAL ENERGY V. TXU ENERGY, Filing by an ERCOT market participant against TXU Energy and
INC., ET AL.; Civil Action No. other wholesale market participants in ERCOT asserting
C-03-249; United States District Court antitrust and other claims. TXU Energy filed a motion to
for the Southern District of Texas dismiss which was granted and affirmed on appeal by the Fifth
Circuit. TCE is seeking further review of this decision.
- -----------------------------------------------------------------------------------------------------------------------------
2/3/2004 PATRICK GOODENOUGH, JAMES BRANT Plaintiffs seek to represent a class of participants in
HARGRAVE, KARI LYN SMITH AND CARL employee benefit plans claiming violation of ERISA. A second
PFEIL, ON BEHALF OF THE TXU THRIFT class certification motion is pending before the Court for
PLAN, AND ALL OTHER PERSONS SIMILARLY decision. The court has stayed discovery in this case.
SITUATED, VS. TXU CORP. ET AL.; Case
No. 3:02-CV-2573-K; United States
District Court for the Northern
District of Texas, Dallas Division
- -----------------------------------------------------------------------------------------------------------------------------
3/10/2003 KIMBERLY PAIGE KILLEBREW, ON BEHALF OF Filing made by an alleged retail consumer of electricity
HERSELF AND ALL SIMILARLY-SITUATED asserting defendants engaged in manipulation of the wholesale
INDIVIDUALS V. TXU CORP. AND TXU electric market and violation of antitrust and other laws.
PORTFOLIO MANAGEMENT COMPANY LP,; Cause The case was stayed pending the TCE appeal. With the issuance
No. 3:04cv806; United States District of the opinion in the TCE case, the TXU Defendants expect to
Court for the Northern District of seek dismissal of this litigation.
Texas, Dallas Division
- -----------------------------------------------------------------------------------------------------------------------------
10/23/2002 BRUCE GIRDAUSKAS, DERIVATIVELY ON Derivative filing made by a purported shareholder alleging
BEHALF OF TXU CORP. VS. TXU CORP. ET breach of fiduciary duty. Plaintiff failed to make a pre-suit
al; Cause No. 02-10191; 116th Judicial demand upon the directors as required by law, and the case is
District Court of Dallas County, Texas currently stayed.
- -----------------------------------------------------------------------------------------------------------------------------
Jan 2003, RICHARD SCHWARTZ, ET AL., V. TXU CORP A consolidated case alleging violations of the Securities Act
Oct 2002, ET AL.; Civil Action No.: of 1933 and the Securities Exchange Act of 1934. The case has
Nov 2002, 3:02-CV-2243-K; United States District been settled in exchange for payment of $150 million, at least
Dec 2002 Court for the Northern District of $101 million of which will be paid by TXU's D&O insurance
Texas, Dallas Division carriers. The Court granted preliminary approval of the
settlement and conducted a hearing on final approval on June
23, 2005. The Court has not yet entered an order.
- -----------------------------------------------------------------------------------------------------------------------------
Oct 2003 TXU EUROPE CLAIMS On January 28, 2005, TXU entered into a settlement agreement
providing for payment of approximately $220 million to the
administrators of TXU Europe Ltd in order to resolve the
claims and potential claims of the TXU Europe companies and
creditors of those companies against TXU and its directors and
officers associated with losses from TXU Europe. Creditor
groups approved the settlement but two creditors appealed the
overall administration plan to the court. Court action is
expected by Q3 or Q4.
- -----------------------------------------------------------------------------------------------------------------------------
3/18/2005 SEC SUBPOENA Subpoena requires documents and information from 1/1/01
through 3/31/03. Subpoena states it is a fact finding inquiry
and that no violation of law has been concluded. TXU Corp.
has substantially responded and will continue to cooperate.
- -----------------------------------------------------------------------------------------------------------------------------
(1) Although it cannot predict the outcome of each of the litigation matters
described above, TXU Corp. believes that each is without merit and intends
to vigorously defend them. Detailed descriptions of these proceedings are
available in the company's 10-K and 10-Q filings with the SEC.
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