Exhibit 99.1
TXU CORP. AND SUBSIDIARIES
SEGMENT CONSOLIDATING INCOME STATEMENT
Quarter to Date Ended: Sep 30, 2004
Corporate Eliminations/
Energy Electric Delivery & Other Rounding Total
-------- ----------------- ------------- -------------- -------
Operating revenues 2,517 648 7 (429) 2,743
----------------------------------------------------------------
Direct costs and expenses
Cost of energy sold and delivery fees 1,556 - - (422) 1,134
Operating costs 145 193 1 (2) 337
Depreciation and other amortization 82 116 7 (1) 204
----------------------------------------------------------------
Total direct costs and expenses 1,783 309 8 (425) 1,675
----------------------------------------------------------------
Gross margin 734 339 (1) (4) 1,068
Other costs and expenses
Selling, general and administrative expenses 182 53 48 (3) 280
Non-operating depreciation and other amortization 1 - 5 - 6
Franchise and revenue-based taxes 28 66 1 (1) 94
Other income (36) - (13) 1 (48)
Other deductions 20 3 (2) (1) 20
Interest income (13) (17) (29) 45 (14)
Interest expense and other charges 91 71 46 (45) 163
----------------------------------------------------------------
Total other costs and expenses 273 176 56 (4) 501
----------------------------------------------------------------
Income (loss) from continuing operations before income taxes
and cumulative effect of changes in accounting principles 461 163 (57) - 567
Income tax expense (benefit) 152 56 (22) 1 187
----------------------------------------------------------------
Income (loss) from continuing operations before
cumulative effect of changes in accounting principles 309 107 (35) (1) 380
Income (loss) from discontinued operations, net of tax effect (3) - 289 1 287
Extraordinary gain, net of tax effect - - - - -
Cumulative effect of changes in
accounting principles, net of tax benefit - - - - -
----------------------------------------------------------------
Net income 306 107 254 - 667
Exchangeable preferred membership interest buyback premium - - - - -
Preference stock dividends - - 5 - 5
----------------------------------------------------------------
Net income available for common stock 306 107 249 - 662
================================================================
Average shares of common stock outstanding, basic (millions) 295
Average shares of common stock outstanding, diluted (millions) 295
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations before cumulative
effect of changes in accounting principles 1.05 0.36 (0.11) - 1.30
Exchangeable preferred membership interest buyback premium - - - - -
Preference stock dividends - - (0.02) - (0.02)
Income (Loss) from discontinued operations, net of tax effect (0.01) - 0.98 - 0.97
Extraordinary gain, net of tax effect - - - - -
Cumulative effect of changes in accounting principles,
net of tax benefit - - - - -
Net income available for common stock 1.04 0.36 0.85 - 2.25
Diluted earnings:
Income (loss) from continuing operations before cumulative
effect of changes in accounting principles 1.05 0.36 (1.02)* - 0.39
Exchangeable preferred membership interest buyback premium - - - - -
Preference stock dividends - - (0.02) - (0.02)
Income (Loss) from discontinued operations, net of tax effect (0.01) - 0.98 - 0.97
Extraordinary gain, net of tax effect - - - - -
Cumulative effect of changes in accounting principles,
net of tax benefit - - - - -
Net income (loss) available for common stock 1.04 0.36 (0.06) - 1.34
Dividends declared 0.125
* Reflects the dilution adjustment ($0 million dilution adjustment / 0 million
shares) and $268 million for convertible senior note (FMV)
TXU CORP. AND SUBSIDIARIES
SEGMENT CONSOLIDATING INCOME STATEMENT
Quarter to Date Ended: Sep 30, 2003
Corporate Eliminations/
Energy Electric Delivery & Other Rounding Total
--------- ----------------- --------- ------------ -------
Operating revenues 2,437 613 5 (440) 2,615
-------------------------------------------------------------
Direct costs and expenses
Cost of energy sold and delivery fees 1,539 - - (437) 1,102
Operating costs 164 175 1 (4) 336
Depreciation and other amortization 89 75 - - 164
-------------------------------------------------------------
Total direct costs and expenses 1,792 250 1 (441) 1,602
-------------------------------------------------------------
Gross margin 645 363 4 1 1,013
Other costs and expenses
Selling, general and administrative expenses 166 49 14 (2) 227
Non-operating depreciation and other amortization 11 3 5 - 19
Franchise and revenue-based taxes 29 63 (1) 1 92
Other income (20) (2) (2) 1 (23)
Other deductions 4 - 4 (1) 7
Interest income (1) (14) (5) 15 (5)
Interest expense and other charges 83 74 51 (14) 194
-------------------------------------------------------------
Total other costs and expenses 272 173 66 - 511
-------------------------------------------------------------
Income (loss) from continuing operations before income taxes
and cumulative effect of changes in accounting principles 373 190 (62) 1 502
Income tax expense (benefit) 123 65 (19) - 169
-------------------------------------------------------------
Income (loss) from continuing operations before
cumulative effect of changes in accounting principles 250 125 (43) 1 333
Income (loss) from discontinued operations, net of tax effect (1) - 65 - 64
Extraordinary gain, net of tax effect - - - - -
Cumulative effect of changes in
accounting principles, net of tax benefit - - - - -
-------------------------------------------------------------
Net income 249 125 22 1 397
Exchangeable preferred membership interest buyback premium - - - - -
Preference stock dividends - - 5 - 5
-------------------------------------------------------------
Net income available for common stock 249 125 17 1 392
=============================================================
Average shares of common stock outstanding, basic (millions) 322
Average shares of common stock outstanding, diluted (millions) 379
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations before cumulative
effect of changes in accounting principles 0.78 0.39 (0.13) - 1.04
Exchangeable preferred membership interest buyback premium - - - - -
Preference stock dividends - - (0.02) - (0.02)
Income from discontinued operations, net of tax effect - - 0.20 - 0.20
Extraordinary gain, net of tax effect - - - - -
Cumulative effect of changes in accounting principles,
net of tax benefit - - - - -
Net income available for common stock 0.78 0.39 0.05 - 1.22
Diluted earnings:
Income (loss) from continuing operations before cumulative
effect of changes in accounting principles 0.66 0.33 (0.08) * - 0.91
Exchangeable preferred membership interest buyback premium - - - - -
Preference stock dividends - - (0.01) - (0.01)
Income from discontinued operations, net of tax effect - - 0.17 - 0.17
Extraordinary gain, net of tax effect - - - - -
Cumulative effect of changes in accounting principles,
net of tax benefit - - - - -
Net income (loss) available for common stock 0.66 0.33 0.08 - 1.07
Dividends declared 0.125
* Reflects the dilution adjustment ($13 million dilution adjustment / 57 million
shares).
TXU CORP. AND SUBSIDIARIES
SEGMENT CONSOLIDATING INCOME STATEMENT - VARIANCE
Quarter to Date Ended Sep 30, 2004 vs Sep 30, 2003
Corporate Eliminations/
Energy Electric Delivery & Other Rounding Total
------------ ----------------- ---------- ------------- -----
Operating revenues 80 35 2 11 128
---------------------------------------------------------------
Direct costs and expenses
Cost of energy sold and delivery fees 17 - - 15 32
Operating costs (19) 18 - 2 1
Depreciation and other amortization (7) 41 7 (1) 40
----------------------------------------------------------------
Total direct costs and expenses (9) 59 7 16 73
----------------------------------------------------------------
Gross margin 89 (24) (5) (5) 55
Other costs and expenses
Selling, general and administrative expenses 16 4 34 (1) 53
Non-operating depreciation and other amortization (10) (3) - - (13)
Franchise and revenue-based taxes (1) 3 2 (2) 2
Other income (16) 2 (11) - (25)
Other deductions 16 3 (6) - 13
Interest income (12) (3) (24) 30 (9)
Interest expense and other charges 8 (3) (5) (31) (31)
----------------------------------------------------------------
Total other costs and expenses 1 3 (10) (4) (10)
----------------------------------------------------------------
Income (loss) from continuing operations before income taxes
and cumulative effect of changes in accounting principles 88 (27) 5 (1) 65
Income tax expense (benefit) 29 (9) (3) 1 18
----------------------------------------------------------------
Income (loss) from continuing operations before
cumulative effect of changes in accounting principles 59 (18) 8 (2) 47
Income (loss) from discontinued operations, net of tax effect (2) - 224 1 223
Extraordinary gain, net of tax effect - - - - -
Cumulative effect of changes in
accounting principles, net of tax benefit - - - - -
----------------------------------------------------------------
Net income (loss) 57 (18) 232 (1) 270
Exchangeable preferred membership interest buyback premium - - - - -
Preference stock dividends - - - - -
----------------------------------------------------------------
Net income (loss) available for common stock 57 (18) 232 (1) 270
================================================================
Average shares of common stock outstanding, basic (millions) (27)
Average shares of common stock outstanding, diluted (millions) (84)
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations before cumulative
effect of changes in accounting principles 0.27 (0.03) 0.02 - 0.26
Exchangeable preferred membership interest buyback premium - - - - -
Preference stock dividends - - - - -
Income (Loss) from discontinued operations, net of tax effect (0.01) - 0.78 - 0.77
Extraordinary gain, net of tax effect - - - - -
Cumulative effect of changes in accounting principles,
net of tax benefit - - - - -
Net income (loss) available for common stock 0.26 (0.03) 0.80 - 1.03
Diluted earnings:
Income (loss) from continuing operations before cumulative
effect of changes in accounting principles 0.39 0.03 (0.94) * - (0.52)
Exchangeable preferred membership interest buyback premium - -
Preference stock dividends - - (0.01) - (0.01)
Income (Loss) from discontinued operations, net of tax effect (0.01) - 0.81 - 0.80
Extraordinary gain, net of tax effect - - - - -
Cumulative effect of changes in accounting principles,
net of tax benefit - - - - -
Net income (loss) available for common stock 0.38 0.03 (0.14) - 0.27
Dividends declared -
TXU CORP. AND SUBSIDIARIES
SEGMENT CONSOLIDATING INCOME STATEMENT
Year to Date Ended: Sep 30, 2004
Corporate Eliminations/
Energy Electric Delivery & Other Rounding Total
-------- ---------------- ----------- ------------ --------
Operating revenues 6,589 1,688 24 (1,123) 7,178
-------------------------------------------------------------
Direct costs and expenses
Cost of energy sold and delivery fees 4,157 - (2) 1,102) 3,053
Operating costs 513 547 3 (6) 1,057
Depreciation and other amortization 246 283 8 - 537
-------------------------------------------------------------
Total direct costs and expenses 4,916 830 9 1,108) 4,647
-------------------------------------------------------------
Gross margin 1,673 858 15 (15) 2,531
Other costs and expenses
Selling, general and administrative expenses 491 154 175 (15) 805
Non-operating depreciation and other amortization 22 3 17 - 42
Franchise and revenue-based taxes 80 183 2 - 265
Other income (50) (4) (23) 4 (73)
Other deductions 301 23 156 (3) 477
Interest income (21) (42) (53) 96 (20)
Interest expense and other charges 263 212 142 (96) 521
-------------------------------------------------------------
Total other costs and expenses 1,086 529 416 (14) 2,017
-------------------------------------------------------------
Income (loss) from continuing operations before income taxes
and cumulative effect of changes in accounting principles 587 329 (401) (1) 514
Income tax expense (benefit) 179 109 (196) - 92
-------------------------------------------------------------
Income (loss) from continuing operations before
cumulative effect of changes in accounting principles 408 220 (205) (1) 422
Income (loss) from discontinued operations, net of tax effect (33) - 698 1 666
Extraordinary gain, net of tax effect - 16 - - 16
Cumulative effect of changes in
accounting principles, net of tax benefit - - - - -
-------------------------------------------------------------
Net income (loss) 375 236 493 - 1,104
Exchangeable preferred membership interest buyback premium - - 849 - 849
Preference stock dividends - - 16 - 16
-------------------------------------------------------------
Net income (loss) available for common stock 375 236 (372) - 239
=============================================================
Average shares of common stock outstanding, basic (millions) 313
Average shares of common stock outstanding, diluted (millions) 313
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations before cumulative
effect of changes in accounting principles 1.31 0.70 (0.65) - 1.36
Exchangeable preferred membership interest buyback premium - - (2.72) - (2.72)
Preference stock dividends - - (0.05) - (0.05)
Income (Loss) from discontinued operations, net of tax effect (0.10) - 2.23 - 2.13
Extraordinary gain, net of tax effect - 0.05 - - 0.05
Cumulative effect of changes in accounting principles,
net of tax benefit - - - - -
Net income (loss) available for common stock 1.21 0.75 (1.19) - 0.77
Diluted earnings:
Income (loss) from continuing operations before cumulative
effect of changes in accounting principles 1.31 0.70 (1.51)* - 0.50
Exchangeable preferred membership interest buyback premium - - (2.72) - (2.72)
Preference stock dividends - - (0.05) - (0.05)
Income (Loss) from discontinued operations, net of tax effect (0.10) - 2.23 - 2.13
Extraordinary gain, net of tax effect - 0.05 - - 0.05
Cumulative effect of changes in accounting principles,
net of tax benefit - - - - -
Net income (loss) available for common stock 1.21 0.75 (2.05) - (0.09)
Dividends declared 0.375
* Reflects the dilution adjustment ($0 million dilution adjustment / 0 million
shares) and $268 million for convertible senior note (FMV)
TXU CORP. AND SUBSIDIARIES
SEGMENT CONSOLIDATING INCOME STATEMENT
Year to Date Ended: Sep 30, 2003
Corporate Eliminations/
Energy Electric Delivery & Other Rounding Total
---------- ----------------- ------------ ---------- ------
Operating revenues 6,243 1,605 11 (1,168) 6,691
--------------------------------------------------------------
Direct costs and expenses
Cost of energy sold and delivery fees 4,037 - - (1,158) 2,879
Operating costs 506 524 1 (6) 1,025
Depreciation and other amortization 277 206 - - 483
--------------------------------------------------------------
Total direct costs and expenses 4,820 730 1 (1,164) 4,387
--------------------------------------------------------------
Gross margin 1,423 875 10 (4) 2,304
Other costs and expenses
Selling, general and administrative expenses 456 145 49 (6) 644
Non-operating depreciation and other amortization 29 9 13 1 52
Franchise and revenue-based taxes 84 183 12 1 280
Other income (43) (6) (3) 3 (49)
Other deductions 9 - 24 (3) 30
Interest income (3) (43) (28) 54 (20)
Interest expense and other charges 246 229 176 (54) 597
--------------------------------------------------------------
Total other costs and expenses 778 517 243 (4) 1,534
--------------------------------------------------------------
Income (loss) from continuing operations before income taxes
and cumulative effect of changes in accounting principles 645 358 (233) - 770
Income tax expense (benefit) 205 119 (81) - 243
--------------------------------------------------------------
Income (loss) from continuing operations before
cumulative effect of changes in accounting principles 440 239 (152) - 527
Income (loss) from discontinued operations, net of tax effect (2) - 86 - 84
Extraordinary gain, net of tax effect - - - - -
Cumulative effect of changes in
accounting principles, net of tax benefit (58) - - - (58)
--------------------------------------------------------------
Net income (loss) 380 239 (66) - 553
Exchangeable preferred membership interest buyback premium - - - -
Preference stock dividends - - 16 - 16
-------------------------------------------------------------
Net income (loss) available for common stock 380 239 (82) - 537
=============================================================
Average shares of common stock outstanding, basic (millions) 321
Average shares of common stock outstanding, diluted (millions) 378
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations before cumulative
effect of changes in accounting principles 1.37 0.74 (0.47) - 1.64
Exchangeable preferred membership interest buyback premium - - - - -
Preference stock dividends - - (0.05) - (0.05)
Income (Loss) from discontinued operations, net of tax effect (0.01) - 0.27 - 0.26
Extraordinary gain, net of tax effect - - - - -
Cumulative effect of changes in accounting principles,
net of tax benefit (0.18) - - - (0.18)
Net income (loss) available for common stock 1.18 0.74 (0.25) - 1.67
Diluted earnings:
Income (loss) from continuing operations before cumulative
effect of changes in accounting principles 1.16 0.63 (0.30)* - 1.49
Exchangeable preferred membership interest buyback premium - - - - -
Preference stock dividends - - (0.04) - (0.04)
Income (Loss) from discontinued operations, net of tax effect (0.01) - 0.23 - 0.22
Extraordinary gain, net of tax effect - - - - -
Cumulative effect of changes in accounting principles,
net of tax benefit (0.15) - - - (0.15)
Net income (loss) available for common stock 1.00 0.63 (0.11) - 1.52
Dividends declared 0.375
* Reflects the dilution adjustment ($40 million dilution adjustment / 57 million
shares).
TXU CORP. AND SUBSIDIARIES
SEGMENT CONSOLIDATING INCOME STATEMENT - VARIANCE Year to Date Ended Sep 30,
2004 vs Sep 30, 2003
Corporate Eliminations/
Energy Electric Delivery & Other Rounding Total
-------- ---------------- ----------- ------------- --------
Operating revenues 346 83 13 45 487
-----------------------------------------------------------------
Direct costs and expenses
Cost of energy sold and delivery fees 120 - (2) 56 174
Operating costs 7 23 2 - 32
Depreciation and other amortization (31) 77 8 - 54
-----------------------------------------------------------------
Total direct costs and expenses 96 100 8 56 260
-----------------------------------------------------------------
Gross margin 250 (17) 5 (11) 227
Other costs and expenses
Selling, general and administrative expenses 35 9 126 (9) 161
Non-operating depreciation and other amortization (7) (6) 4 (1) (10)
Franchise and revenue-based taxes (4) - (10) (1) (15)
Other income (7) 2 (20) 1 (24)
Other deductions 292 23 132 - 447
Interest income (18) 1 (25) 42 -
Interest expense and other charges 17 (17) (34) (42) (76)
-----------------------------------------------------------------
Total other costs and expenses 308 12 173 (10) 483
-----------------------------------------------------------------
Income (loss) from continuing operations before income taxes
and cumulative effect of changes in accounting principles (58) (29) (168) (1) (256)
Income tax expense (benefit) (26) (10) (115) - (151)
-----------------------------------------------------------------
Income (loss) from continuing operations before
cumulative effect of changes in accounting principles (32) (19) (53) (1) (105)
Income (loss) from discontinued operations, net of tax effect (31) - 612 1 582
Extraordinary gain, net of tax effect - 16 - - 16
Cumulative effect of changes in
accounting principles, net of tax benefit 58 - - - 58
-----------------------------------------------------------------
Net income (loss) (5) (3) 559 - 551
Exchangeable preferred membership interest buyback premium - - 849 - 849
Preference stock dividends - - - - -
-----------------------------------------------------------------
Net income (loss) available for common stock (5) (3) (290) - (298)
=================================================================
Average shares of common stock outstanding, basic (millions)
Average shares of common stock outstanding, diluted (millions) (8)
(65)
Per share of common stock:
Basic earnings:
Income (loss) from continuing operations before cumulative
effect of changes in accounting principles (0.06) (0.04) (0.18) - (0.28)
Exchangeable preferred membership interest buyback premium - - (2.72) - (2.72)
Preference stock dividends - - - - -
Income (Loss) from discontinued operations, net of tax effect (0.09) - 1.96 - 1.87
Extraordinary gain, net of tax effect - 0.05 - - 0.05
Cumulative effect of changes in accounting principles,
net of tax benefit 0.18 - - - 0.18
Net income (loss) available for common stock 0.03 0.01 (0.94) - (0.90)
Diluted earnings:
Income (loss) from continuing operations before cumulative
effect of changes in accounting principles 0.15 0.07 (1.21)* - (0.99)
Exchangeable preferred membership interest buyback premium - - (2.72) - (2.72)
Preference stock dividends - - (0.01) - (0.01)
Income (Loss) from discontinued operations, net of tax effect (0.09) - 2.00 - 1.91
Extraordinary gain, net of tax effect - 0.05 - - 0.05
Cumulative effect of changes in accounting principles,
net of tax benefit 0.15 - - - 0.15
Net income (loss) available for common stock 0.21 0.12 (1.94) - (1.61)
Dividends declared -
Nine Months Ended
September 30,
------------------------------
2004 2003
--------- -----------
(millions of dollars)
Cash flows - operating activities:
Income from continuing operations before extraordinary gain and cumulative effect of
changes in accounting principles $ 422 $ 527
Adjustments to reconcile income from continuing operations before extraordinary
gain and cumulative
effect of changes in accounting principles to cash provided by operating activities:
Depreciation and amortization 627 591
Deferred income taxes and investment tax credits -- net (289) 72
Loss on early extinguishment of debt 54 -
Asset writedown charges 189 -
Net gain from sale of assets (65) (40)
Net effect of unrealized mark-to-market valuations of commodity contracts 46 (59)
Net equity loss from unconsolidated affiliates and joint ventures 2 18
Reduction in regulatory liability (1) (125)
Retail clawback accrual - (19)
Changes in operating assets and liabilities 99 845
--------- --------
Cash provided by operating activities 1,084 1,810
--------- --------
Cash flows - financing activities:
Issuances of securities:
Long-term debt 1,590 2,425
Common stock 9 27
Retirements/repurchases of securities:
Long-term debt held by subsidiary trust (237) -
Equity-linked debt securities (423) -
Other long-term debt (1,826) (1,585)
Exchangeable preferred membership interests (750) -
Preferred stock of subsidiary, subject to mandatory redemption - (91)
Common stock (1,226) -
Change in notes payable:
Banks 565 (2,305)
Cash dividends paid:
Common stock (120) (120)
Preference stock (16) (16)
Premium paid for redemption of exchangeable preferred membership interests (1,102) -
Redemption deposits applied to debt retirements - 210
Debt premium, discount financing and reacquisition expenses (42) (26)
-------- --------
Cash used in financing activities (3,578) (1,481)
-------- --------
Cash flow-investing activities:
Capital expenditures (543) (489)
Disposition of businesses 2,805 18
Acquisition of telecommunications partner's interest - (150)
Investment in collateral trust - (525)
Nuclear fuel (46) (45)
Other 183 (12)
Cash provided by (used in) investing activities 2,399 (1,203)
Effect of exchange rate changes on cash and cash equivalents - 1
Cash contributions to discontinued operations (142) (19)
-------- ---------
Net change in cash and cash equivalents (237) (892)
Cash and cash equivalents--beginning balance 829 1,513
-------- ---------
Cash and cash equivalents--ending balance $ 592 $ 621
======== =========
TXU CORP. AND SUBSIDIARIES
- -----------------------------------------------------------------------------------------------------------------------------------
Consolidating Balance Sheet
September 30, 2004
(Dollars in millions)
(Unaudited)
Electric Corporate Eliminations/
Energy Delivery & Other Rounding Total
---------- ----------- ----------- ------------ -------
ASSETS
Current assets
Cash and cash equivalents 5 26 562 (1) 592
Restricted cash - 29 - - 29
Advances to affiliates 1,524 - (41) (1,483) -
Accounts receivable - trade 989 69 424 (396) 1,086
Income taxes receivable - - - - -
Accounts receivable - affiliates 15 244 19 (278) -
Notes or other receivables due from affiliat - 30 - (30) -
Inventories 296 30 3 1 330
Commodity contract assets 707 - - - 707
Assets of telecommunications holding company - - - - -
Other current assets 318 56 143 (34) 483
-----------------------------------------------------------
Total current assets 3,854 484 1,110 (2,221) 3,227
-----------------------------------------------------------
Investments
Restricted cash - 15 564 - 579
Other investments 578 73 5,826 (5,802) 675
Property, plant and equipment - net 9,833 6,467 188 - 16,488
Notes or other receivables due from affiliates - 407 - (407) -
Goodwill 517 25 - - 542
Regulatory assets - net - 1,922 - - 1,922
Commodity contract assets 229 - - - 229
Cash flow hedge and other derivative assets 24 - - - 24
Other noncurrent assets 134 48 1,466 (1,347) 301
Assets held for sale 27 - 2,134 - 2,161
-----------------------------------------------------------
Total assets 15,196 9,441 11,288 (9,777) 26,148
===========================================================
LIABILITIES, PREFERRED SECURITIES OF SUBSIDIARIES
& SHAREHOLDERS' EQUITY
Current liabilities
Notes payable - banks 565 - - - 565
Advances from affiliates - 8 1,475 (1,483) -
Long-term debt due currently 31 283 1,265 - 1,579
Accounts payable - trade 844 46 416 (396) 910
Accounts payable - affiliates 259 21 - (280) -
Notes or other liabilities due to affiliates 30 - - (30) -
Commodity contract liabilities 545 - - - 545
Liabilities of telecommunications holding company - - - - -
Other current liabilities 711 364 908 (32) 1,951
-----------------------------------------------------------
Total current liabilities 2,985 722 4,064 (2,221) 5,550
-----------------------------------------------------------
Accumulated deferred income taxes 1,892 1,469 - (1,312) 2,049
Investment tax credits 346 64 2 1 413
Commodity contract liabilities 309 - - - 309
Cash flow hedge and other derivative liabilities 218 - 8 - 226
Notes or other liabilities due to affiliates 407 - - (407) -
Long-term debt held by subsidiary trusts - - 309 - 309
All other long-term debt, less amounts due currently 3,630 4,228 1,661 - 9,519
Other noncurrent liabilities and deferred credits 1,184 314 1,202 (18) 2,682
Liabilities held for sale 8 - 250 - 258
-----------------------------------------------------------
Total liabilities 10,979 6,797 7,496 (3,957) 21,315
-----------------------------------------------------------
Preferred securities of subsidiaries 508 - (395) - 113
Shareholders' equity
Preferred stock - not subject to mandatory redemption - - 300 - 300
Common stock - - (1,026) 1,090 64
Additional paid in capital 2,928 2,051 6,340 (5,224) 6,095
Retained earnings (deficit) 958 616 (1,055) (2,042) (1,523)
Accumulated other comprehensive income (loss) (177) (23) (372) 356 (216)
-----------------------------------------------------------
Total shareholders' equity 3,709 2,644 4,187 (5,820) 4,720
-----------------------------------------------------------
Total liabilities, preferred securities of
subsidiaries & shareholders' equity 15,196 9,441 11,288 (9,777) 26,148
===========================================================
TXU CORP. AND SUBSIDIARIES
- ------------------------------------------------------------------------------------------------------------------------------------
Consolidating Balance Sheet
December 31, 2003
(Dollars in millions)
(Unaudited)
Electric Corporate Eliminations/
Energy Delivery & Other Rounding Total
--------- ----------- ------------ ----------- --------
ASSETS
Current assets
Cash and cash equivalents 18 245 566 - 829
Restricted cash - 12 - - 12
Advances to affiliates 289 - 25 (314) -
Accounts receivable - trade 943 58 573 (511) 1,063
Income taxes receivable - - 182 (182) -
Accounts receivable - affiliates 17 205 41 (263) -
Notes or other receivables due from affiliates - 13 - (13) -
Inventories 386 29 4 - 419
Commodity contract assets 548 - - - 548
Assets of telecommunications holding company - - 110 - 110
Other current assets 225 33 69 (24) 303
--------------------------------------------------------------------
Total current assets 2,426 595 1,570 (1,307) 3,284
--------------------------------------------------------------------
Investments
Restricted cash - 13 570 (1) 582
Other investments 479 32 7,735 (7,614) 632
Property, plant and equipment - net 10,345 6,333 125 - 16,803
Notes or other receivables due from affiliates - 423 - (423) -
Goodwill 533 25 - - 558
Regulatory assets - net - 1,872 - - 1,872
Commodity contract assets 109 - - - 109
Cash flow hedge and other derivative assets 88 - - - 88
Other noncurrent assets 126 39 82 (33) 214
Assets held for sale 59 - 7,096 - 7,155
--------------------------------------------------------------------
Total assets 14,165 9,332 17,178 (9,378) 31,297
====================================================================
LIABILITIES, PREFERRED SECURITIES OF SUBSIDIARIES
& SHAREHOLDERS' EQUITY
Current liabilities
Notes payable - banks - - - - -
Advances from affiliates - 25 289 (314) -
Long-term debt due currently 1 243 433 1 678
Accounts payable - trade 712 43 546 (511) 790
Accounts payable - affiliates 228 16 19 (263) -
Notes or other liabilities due to affiliates 13 - - (13) -
Commodity contract liabilities 502 - - - 502
Liabilities of telecommunications holding company - - 603 - 603
Other current liabilities 856 387 207 (208) 1,242
--------------------------------------------------------------------
Total current liabilities 2,312 714 2,097 (1,308) 3,815
--------------------------------------------------------------------
Accumulated deferred income taxes 1,950 1,432 228 (11) 3,599
Investment tax credits 360 68 2 - 430
Commodity contract liabilities 47 - - - 47
Cash flow hedge and other derivative liabilities 140 - 100 - 240
Notes or other liabilities due to affiliates 423 - - (423) -
Long-term debt held by subsidiary trusts - - 546 - 546
All other long-term debt, less amounts due currently 3,084 3,982 3,542 - 10,608
Other noncurrent liabilities and deferred credits 1,342 280 766 (6) 2,382
Liabilities held for sale 11 - 2,941 - 2,952
--------------------------------------------------------------------
Total liabilities 9,669 6,476 10,222 (1,748) 24,619
--------------------------------------------------------------------
Preferred securities of subsidiaries 497 - 262 - 759
Shareholders' equity
Preferred stock - not subject to mandatory redemption - - 300 - 300
Common stock - - 48 - 48
Additional paid in capital 3,688 2,501 8,901 (6,993) 8,097
Retained earnings (deficit) 422 380 (2,550) (750) (2,498)
Accumulated other comprehensive income (loss) (111) (25) (5) 113 (28)
--------------------------------------------------------------------
Total shareholders' equity 3,999 2,856 6,694 (7,630) 5,919
--------------------------------------------------------------------
Total liabilities, preferred securities of
subsidiaries & shareholders' equity 14,165 9,332 17,178 (9,378) 31,297
====================================================================
TXU CORP. AND SUBSIDIARIES
- -----------------------------------------------------------------------------------------------------------------------------------
Consolidating Balance Sheet - Variance
September 30, 2004 vs December 31, 2003
(Dollars in millions)
(Unaudited)
Electric Corporate Eliminations/
Energy Delivery & Other Rounding Total
---------- --------- ----------- ------------- ----------
ASSETS
Current assets
Cash and cash equivalents (13) (219) (4) (1) (237)
Restricted cash - 17 - - 17
Advances to affiliates 1,235 - (66) (1,169) -
Accounts receivable - trade 46 11 (149) 115 23
Income taxes receivable - - (182) 182 -
Accounts receivable - affiliates (2) 39 (22) (15) -
Notes or other receivables due from affiliates - 17 - (17) -
Inventories (90) 1 (1) 1 (89)
Commodity contract assets 159 - - - 159
Assets of telecommunications holding company - - (110) - (110)
Other current assets 93 23 74 (10) 180
-------------------------------------------------------------------
Total current assets 1,428 (111) (460) (914) (57)
-------------------------------------------------------------------
Investments
Restricted cash - 2 (6) 1 (3)
Other investments 99 41 (1,909) 1,812 43
Property, plant and equipment - net (512) 134 63 - (315)
Notes or other receivables due from affiliates - (16) - 16 -
Goodwill (16) - - - (16)
Regulatory assets - net - 50 - - 50
Commodity contract assets 120 - - - 120
Cash flow hedge and other derivative assets (64) - - - (64)
Other noncurrent assets 8 9 1,384 (1,314) 87
Assets held for sale (32) - (4,962) - (4,994)
-------------------------------------------------------------------
Total assets 1,031 109 (5,890) (399) (5,149)
===================================================================
LIABILITIES, PREFERRED SECURITIES OF SUBSIDIARIES
& SHAREHOLDERS' EQUITY
Current liabilities
Notes payable - banks 565 - - - 565
Advances from affiliates - (17) 1,186 (1,169) -
Long-term debt due currently 30 40 832 (1) 901
Accounts payable - trade 132 3 (130) 115 120
Accounts payable - affiliates 31 5 (19) (17) -
Notes or other liabilities due to affiliates 17 - - (17) -
Commodity contract liabilities 43 - - - 43
Liabilities of telecommunications holding company - - (603) - (603)
Other current liabilities (145) (23) 701 176 709
-------------------------------------------------------------------
Total current liabilities 673 8 1,967 (913) 1,735
-------------------------------------------------------------------
Accumulated deferred income taxes (58) 37 (228) (1,301) (1,550)
Investment tax credits (14) (4) - 1 (17)
Commodity contract liabilities 262 - - - 262
Cash flow hedge and other derivative liabilities 78 - (92) - (14)
Notes or other liabilities due to affiliates (16) - - 16 -
Long-term debt held by subsidiary trusts - - (237) - (237)
All other long-term debt, less amounts due currently 546 246 (1,881) - (1,089)
Other noncurrent liabilities and deferred credits (158) 34 436 (12) 300
Liabilities held for sale (3) - (2,691) - (2,694)
-------------------------------------------------------------------
Total liabilities 1,310 321 (2,726) (2,209) (3,304)
-------------------------------------------------------------------
Preferred securities of subsidiaries 11 - (657) - (646)
Shareholders' equity
Preferred stock - not subject to mandatory redemption - - - - -
Common stock - - (1,074) 1,090 16
Additional paid in capital (760) (450) (2,561) 1,769 (2,002)
Retained earnings (deficit) 536 236 1,495 (1,292) 975
Accumulated other comprehensive income (loss) (66) 2 (367) 243 (188)
-------------------------------------------------------------------
Total shareholders' equity (290) (212) (2,507) 1,810 (1,199)
-------------------------------------------------------------------
Total liabilities, preferred securities
of subsidiaries & shareholders' equity 1,031 109 (5,890) (399) (5,149)
===================================================================
TXU Corp. Summary of Significant Legal Proceedings
Date Filed Case Information Summary and Status (1)
-------------------- -- ----------------------------------------------- -- -------------------------------------------------------
July 7, 2003 Texas Commercial Energy v. TXU Energy, Inc., Filing made by an ERCOT market participant (Texas
et al.; Civil Action No. C-03-249; United Commercial Energy or TCE) against TXU Energy and
States District Court for the Southern other wholesale market participants in ERCOT
District of Texas asserting antitrust and other claims. TXU Energy
maintains the claims are without merit and filed
a motion to dismiss which the Court granted. The
dismissal has been appealed to the Fifth Circuit
by the Plaintiff. The appeal remains pending.
April 28, 2003 William J. Murray v. TXU Corp., TXU Energy Filing made by a former employee claiming breach of
Company, LLC and TXU Portfolio Management contract and employment termination under Section 806
Company, LP f/k/a TXU Energy Trading Company of the Sarbanes-Oxley Act of 2002. The TXU Defendants
LP; Cause No. 3-03-CV-0888-P; United States believe the claims are without merit but cannot
District Court for the Northern District of predict the outcome of this action. Discovery in this
Texas, Dallas Division case is ongoing and the Court has set the case for
trial in June 2005.
February 3, 2004 Patrick Goodenough, James Brant Hargrave, Three ERISA lawsuits consolidated and a putative
Kari Lyn Smith and Carl Pfeil, on behalf of class action filing made on February 3, 2004.
the TXU Thrift Plan, and all other persons Plaintiffs seek to represent a class of participants
similarly situated, vs. TXU Corp. et al.; in employee benefit plans during the period between
Case No. 3:02-CV-2573-K; United States April 26, 2001 and July 11, 2002. The TXU Defendants
District Court for the Northern District of believe the claims are without merit but cannot
Texas, Dallas Division predict the outcome of this action. Initial class
action certification related discovery has been
completed and the Plaintiffs' initial class
certification motion was denied without prejudice
a second class certification motion is pending
before the Court for decision.
March 10, 2003 Kimberly Paige Killebrew, on Behalf of Filing made by an alleged retail consumer of
Herself and All Similarly-Situated electricity asserting defendants engaged in
Individuals v. TXU Corp. and TXU Portfolio manipulation of the wholesale electric market and
Management Company LP,; Cause No. 3:04cv806; violation of antitrust and other laws. The TXU
United States District Court for the Northern Defendants believe the claims are without merit but
District of Texas, Dallas Division cannot predict the outcome of this action. The case
has been stayed pending the final ruling in the
appeal of the TCE litigation described above.
October 23, 2002 Bruce Girdauskas, Derivatively on Behalf of Derivative filing made by a purported shareholder
TXU Corp. vs. TXU Corp. et al; Cause No. alleging breach of fiduciary duty. TXU Corp.
02-10191; 116th Judicial District Court of believes the claims are without merit but cannot
Dallas County, Texas predict the outcome of this action. Plaintiff failed
to make a pre-suit demand upon the directors as
required by law, and the case is currently stayed.
January 2003, Richard Schwartz, et al., v. TXU Corp et al.; A number of lawsuits were filed and consolidated, and
October 2002, Civil Action No.: 3:02-CV-2243-K; United an amended consolidated complaint was filed on July
November 2002, States District Court for the Northern 21, 2003. The complaint alleges violations of the
December 2002 District of Texas, Dallas Division Securities Act of 1933 and the Securities Exchange
Act of 1934, all relating to alleged materially
false and misleading statements. TXU Corp. believes
the claims are without merit but cannot predict
the outcome of this action. On September 24, 2003
a motion to dismiss was filed. The court has not
yet ruled on the motion to dismiss.
Other Items
October, 2003 TXU Corp. received notice from certain creditors and
administrators of TXU Europe regarding potential
claims against the directors and officers for
allegedly failing to minimize the potential losses to
the creditors of TXU Europe. TXU Corp. believes the
claims are without merit and will defend such claims
if they are ultimately pursued. Discussions with the
administrators regarding the potential claims are
ongoing.
(1) Detailed descriptions of these proceedings are available in the company's
10-K and 10-Q filings with the SEC.
TXU CORP. REGULATORY SUMMARY
- --------------------------------------------------------------------------------------------------------------------------
Company Summary/Events
- ------------------- --- --------------------------------------------------------------------------------------------------
TXU Energy Price to Beat (PTB) applies to former franchise area residential and small/medium business
(<1MW of load) customers. It is TXU Energy's only rate for residential customers until 1/1/05.
TXU Energy may offer rates other than the PTB to small/medium commercial customers since it met
the requirements of the 40% threshold target calculation in December 2003. The PTB can be
changed twice per year if gas prices (20-day average of NYMEX 12-month strip) move greater than
5% (10% after 11/15 of any year) from the current price upon which PTB is based. Changes in the
PTB are initiated by TXU Energy upon filing with the
PUC.
PUC No. 29516 - Application of TXU Energy Retail Company
to Increase Price to Beat Fuel Factor filed March 25,
2004
+ Requesting 7.9% increase in PTB fuel factor.
+ Resulted in a $3.39/month or 3.4% increase to
residential customers using 1,000 kWh per month.
+ Approved by the PUC on May 19,2004 and implemented on
May 20, 2004.
PUC No. 29837 - Application of TXU Energy Retail Company
to Increase Price to Beat Fuel Factor filed June 10,
2004.
+ Requesting 12.7% increase in PTB fuel factor.
+ Resulted in a $5.87/month or 5.7% increase to
residential customers using 1000 kWh per month.
+ Approved by the PUC on July 28, 2004 and implemented
on August 4, 2004.
TXU SESCO TXU SESCO Price to Beat - TXU SESCO has entered into an agreement with FPL Energy Marketing,
Inc. for its 2005 PTB power supply. TXU SESCO has filed for recovery of the expenses associated
with the increase in purchased power costs over the current contract with Constellation. A
hearing is scheduled for October 26, 2004. Based on this request, revenues will increase by
approximately $7.5 million annually due primarily to a 12.1% increase for a residential customer
using 1,000 kWh per month. Nevertheless, TXU SESCO will continue to have the lowest Price to
Beat rates, statewide.
TXU Electric TXU Electric Delivery (formerly Oncor) general rate case: Authorized ROE of 11.25%, Capital
Delivery structure of 60% Debt, 40% Equity. Reports are filed annually for review with the PUC. The
City of Denison, acting in its role as a regulatory authority, initiated an inquiry on August 2, 2004
to determine if the rates of TXU Electric Delivery, which have been established by the PUC, are just
and reasonable. Approximately 20 cities have initiated similar requests and certain other cities
within the historical service territory are considering similar requests. TXU Electric Delivery
expects to file information responsive to the inquiries by the end of 2004, with city actions, if any,
to take place in 2005. It is too early to determine whether these inquiries will have any material
effect on TXU Electric Delivery's rates. TXU Electric Delivery has the right to appeal any
city action to the PUC.
PUC No. 29253 - 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 March 1, 2004
+ The increase will recover an additional $9.2 million
in annual revenue.
PUC No. 29425 - Application of TXU Electric Delivery
Company for Interim Update of Wholesale Transmission
Rates filed March 3, 2004
+ Approved and effective April 15, 2004.
+ Total annualized revenue increase of $14 million
2nd 2004 TCRF Update (Docket No. 29985) -
+ TXU Electric Delivery filed its 2nd 2004 TCRF request
July 26, 2004.
+ Proposed total annualized revenue increase of $29.5
million ($9.8 for the remainder of 2004).
+ Proposed effective date of September 1, 2004.