EX-99.1 2 dex991.htm EDISON INTERNATIONAL PRESS RELEASE Edison International Press Release

Exhibit 99.1

 

LOGO    News Release

FOR IMMEDIATE RELEASE

Media Relations: Charles Coleman, (626) 302-7982

www.edisonnews.com

Investor Relations: Scott Cunningham, (626) 302-2540

www.edisoninvestor.com

Edison International Reports Strong 2007 Operating Performance

 

  •  

2007 GAAP earnings were $3.33 per share compared to $3.58 per share in 2006.

 

  •  

Excluding non-core items, 2007 core earnings increased 20 percent to $3.69 per share from $3.07 per share last year, reflecting strong operating performance at Southern California Edison (SCE) and Edison Mission Group (EMG).

 

  •  

EMG’s May 2007 $2.7 billion debt restructuring, which extended debt maturities at attractive pricing and terms, largely drove the 2007 non-core charge of $0.36 per share, resulting in the difference between GAAP and core earnings. Non-core items were a positive $0.51 per share in 2006.

 

  •  

Fourth quarter 2007 GAAP earnings were $0.64 per share versus $0.87 per share in the prior year. Core earnings were $0.65 per share in both periods, and exclude non-core items of $(0.01) per share in 2007 and $0.22 per share in 2006.

 

  •  

The company announced 2008 earnings guidance of $3.61 - $4.01 per share.

Edison International Fourth Quarter and 2007 Financial Highlights

 

     Quarter Ended
December 31,		     Full Year  

(In millions, except per share data)

    2007    2006    Change     2007    2006    Change  

GAAP earnings per share

    $ 0.64    $ 0.87    $ (0.23 )   $ 3.33    $ 3.58    $ (0.25 )

Core earnings per share

    $ 0.65    $ 0.65      —       $ 3.69    $ 3.07    $ 0.62  

GAAP earnings

    $ 211    $ 288    $ (77 )   $ 1,098    $ 1,181    $ (83 )

Core earnings

    $ 214    $ 215    $ (1 )   $ 1,217    $ 1,015    $ 202  

ROSEMEAD, Calif., February 27, 2008 – Edison International (NYSE: EIX) today reported 2007 earnings of $3.33 per share. Excluding non-core items, 2007 core earnings were $3.69 per share, up 20 percent compared with $3.07 per share last year. This increase was driven mainly by higher energy margins at EMG and solid operating results at SCE.

“Edison International performed well in 2007, reflecting completion of record utility infrastructure improvements and strong performance in our competitive power generation business,” said John Bryson, chairman and CEO. “During the year, our team also significantly moved forward our leading national positions in advanced smart grid and meter technologies, energy efficiency, and renewable energy.”

 

Note: GAAP earnings refers to net income and GAAP earnings per share refers to basic earnings per share throughout this release. Core earnings is a non-GAAP financial measure; see reconciliation of core earnings to GAAP earnings and reconciliation of core earnings guidance to GAAP earnings guidance.

 

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EDISON INTERNATIONAL REPORTS 2007 FINANCIAL RESULTS

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FOURTH QUARTER EARNINGS DETAIL

Fourth quarter 2007 GAAP earnings were $0.64 per share, compared to $0.87 in the fourth quarter of 2006 as the result of non-core items in the fourth quarter of last year. Excluding non-core items, fourth quarter core earnings were $0.65 per share, unchanged from the same period a year ago, as higher earnings at SCE were offset by lower results at EMG.

Earnings from Continuing Operations

SCE fourth quarter 2007 earnings from continuing operations were $0.37 per share compared to earnings of $0.48 per share in the same period last year, primarily from the favorable resolution of a state tax issue in the 2006 period. Excluding 2006 non-core benefits, SCE’s core earnings increased $0.05 per share to $0.37 per share. This increase was primarily due to settlement of a tariff dispute.

EMG fourth quarter 2007 earnings from continuing operations were $0.30 per share compared to $0.35 per share in the same period last year. Excluding non-core items, EMG’s core earnings were $0.30 per share compared to $0.36 per share a year earlier. The decrease was primarily due to lower earnings from Edison Capital and higher EMG corporate costs, partially offset by lower interest expense and higher trading margin.

Results of Discontinued Operations

Edison International’s loss from discontinued operations was $0.01 per share in the fourth quarter of 2007 compared to earnings of $0.07 per share in the fourth quarter of 2006. Discontinued operations relate to adjustments resulting from the sale of EMG’s former international projects.

 

     Quarter Ended
December 31,		        
     2007     2006     Change  

Earnings (Loss) Per Share (Unaudited)

       

Southern California Edison Company

    $ 0.37     $ 0.48     $ (0.11 )

Edison Mission Group

      0.30       0.35       (0.05 )

EIX parent company and other

      (0.02 )     (0.03 )     0.01  
                        

EIX GAAP earnings per share from continuing operations

      0.65       0.80       (0.15 )
                        

Earnings (loss) from discontinued operations

      (0.01 )     0.07       (0.08 )
                        

EIX GAAP earnings per share

    $ 0.64     $ 0.87     $ (0.23 )
                        

EIX diluted earnings per share

    $ 0.64     $ 0.87     $ (0.23 )
                        
     Quarter Ended
December 31,		        
     2007     2006     Change  

Earnings (Loss) (in millions) (Unaudited)

       

Southern California Edison Company

    $ 120     $ 158     $ (38 )

Edison Mission Group

      99       113       (14 )

EIX parent company and other

      (5 )     (5 )     —    
                        

EIX income from continuing operations

      214       266       (52 )
                        

Earnings (loss) from discontinued operations

      (3 )     22       (25 )
                        

EIX net income

    $ 211     $ 288     $ (77 )
                        

 

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EDISON INTERNATIONAL REPORTS 2007 FINANCIAL RESULTS

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Fourth Quarter Reconciliation of Core Earnings to GAAP Earnings

 

     Quarter Ended
December 31,		        
     2007     2006     Change  

Core Earnings1 (Loss) Per Share (Unaudited)

      

Southern California Edison Company

    $ 0.37     $ 0.32     $ 0.05  

Edison Mission Group

      0.30       0.36       (0.06 )

EIX parent company and other

      (0.02 )     (0.03 )     0.01  
                        

EIX core earnings per share

      0.65       0.65       —    
                        

Non-core items

       

SCE – tax item

      —         0.15       (0.15 )

SCE – generator refund incentive

      —         0.01       (0.01 )

EMG – early debt extinguishment

      —         (0.01 )     0.01  

Discontinued operations

      (0.01 )     0.07       (0.08 )
                        

Total non-core items

      (0.01 )     0.22       (0.23 )
                        

EIX GAAP earnings per share

    $ 0.64     $ 0.87     $ (0.23 )
                        
     Quarter Ended
December 31,		        
     2007     2006     Change  

Core Earnings1 (Loss) (in millions) (Unaudited)

       

Southern California Edison Company

    $ 120     $ 105     $ 15  

Edison Mission Group

      99       115       (16 )

EIX parent company and other

      (5 )     (5 )     —    
                        

EIX core earnings

      214       215       (1 )
                        

Non-core items

       

SCE – tax item

      —         49       (49 )

SCE – generator refund incentive

      —         4       (4 )

EMG – early debt extinguishment

      —         (2 )     2  

Discontinued operations

      (3 )     22       (25 )
                        

Total non-core items

      (3 )     73       (76 )
                        

Total EIX net income

    $ 211     $ 288     $ (77 )
                        

1

See Use of Non-GAAP Financial Measures on page 6. The impact of participating securities is included in EIX parent company and other and was $(0.01) and $(0.01) per share for the quarter ended December 31, 2007 and 2006, respectively.

FULL-YEAR EARNINGS DETAIL

Earnings from Continuing Operations

SCE’s earnings from continuing operations in 2007 were $2.17 per share compared with $2.38 per share a year ago. SCE’s 2007 results include a non-core tax benefit of $0.10 per share primarily related to the income tax treatment of certain costs associated with environmental remediation. SCE’s 2006 results include $0.49 per share in benefits related primarily to favorable resolution of tax and regulatory matters and generator settlements. Excluding these non-core items, SCE’s core earnings in 2007 were $2.07 per share, compared with $1.89 per share in 2006. The increase is mainly due to higher operating margin, lower income taxes, and the tariff settlement, partially offset by higher net interest expense.

 

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EMG’s earnings from continuing operations in 2007 were $1.27 per share compared with $1.02 per share in 2006. Both 2007 and 2006 results were impacted by non-core early debt extinguishment costs. Excluding non-core items, EMG’s core earnings in 2007 were $1.72 per share compared with $1.30 per share in 2006. This increase primarily reflects higher operating income at Midwest Generation and Homer City, lower interest expense, and higher project income and trading margin, partially offset by higher development and other corporate costs and lower earnings from Edison Capital.

Results of Discontinued Operations

Edison International’s loss per share from discontinued operations was $0.01 for 2007, compared with earnings per share from discontinued operations of $0.30 per share for 2006. 2006 results include distributions from EMG’s Lakeland project in administrative receivership in the United Kingdom.

 

     Full Year        
     2007     2006     Change  

Earnings (Loss) Per Share (Unaudited)

       

Southern California Edison Company

    $ 2.17     $ 2.38     $ (0.21 )

Edison Mission Group

      1.27       1.02       0.25  

EIX parent company and other

      (0.10 )     (0.12 )     0.02  
                        

EIX GAAP earnings per share from continuing operations

      3.34       3.28       0.06  
                        

Earnings/(Loss) from discontinued operations

      (0.01 )     0.30       (0.31 )
                        

EIX GAAP earnings per share

    $ 3.33     $ 3.58       (0.25 )
                        

EIX diluted earnings per share

    $ 3.31     $ 3.57       (0.26 )
                        
     Full Year        
     2007     2006     Change  

Earnings (Loss) (in millions) (Unaudited)

       

Southern California Edison Company

    $ 707     $ 776     $ (69 )

Edison Mission Group

      412       334       78  

EIX parent company and other

      (19 )     (27 )     8  
                        

EIX income from continuing operations

      1,100       1,083       17  
                        

Income/(Loss) from discontinued operations

      (2 )     97       (99 )

Cumulative effect of accounting change – net of tax

      —         1       (1 )
                        

EIX net income

    $ 1,098     $ 1,181     $ (83 )
                        

 

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Full Year Reconciliation of Core Earnings to GAAP Earnings

 

     Full Year        
     2007     2006     Change  

Core Earnings1 (Loss) Per Share (Unaudited)

      

Southern California Edison Company

    $ 2.07     $ 1.89     $ 0.18  

Edison Mission Group

      1.72       1.30       0.42  

EIX parent company and other

      (0.10 )     (0.12 )     0.02  
                        

EIX core earnings per share

      3.69       3.07       0.62  
                        

Non-core items

       

SCE – tax and regulatory items

      0.10       0.40       (0.30 )

SCE – generator settlement and refund incentive

      —         0.09       (0.09 )

EMG – early debt extinguishment

      (0.45 )     (0.28 )     (0.17 )

Discontinued operations

      (0.01 )     0.30       (0.31 )
                        

Total non-core items

      (0.36 )     0.51       (0.87 )
                        

EIX GAAP earnings per share

    $ 3.33     $ 3.58     $ (0.25 )
                        
     Full Year        
     2007     2006     Change  

Core Earnings1 (Loss) (in millions) (Unaudited)

       

Southern California Edison Company

    $ 676     $ 618     $ 58  

Edison Mission Group

      560       424       136  

EIX parent company and other

      (19 )     (27 )     8  
                        

EIX core earnings

      1,217       1,015       202  
                        

Non-core items

       

SCE – tax and regulatory items

      31       130       (99 )

SCE – generator settlement and refund incentive

      —         28       (28 )

EMG – early debt extinguishment

      (148 )     (90 )     (58 )

Discontinued operations

      (2 )     97       (99 )
                        

Total non-core items

      (119 )     165       (284 )
                        

Cumulative effect of accounting change – net of tax

      —         1       (1 )
                        

Total EIX net income

    $ 1,098     $ 1,181     $ (83 )
                        

 

1

See Use of Non-GAAP Financial Measures on page 6. The impact of participating securities is included in EIX parent company and other and was $(0.04) per share and $(0.05) per share for 2007 and 2006, respectively.

2008 EARNINGS GUIDANCE

The company announced 2008 earnings guidance of $3.61 - $4.01 per share for GAAP earnings and core earnings. See the risk disclosure statement on page 7 and the presentation accompanying the company’s conference call for further information.

 

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Reconciliation of Core Earnings Guidance to GAAP Earnings Guidance

 

     2008 Guidance  

Core Earnings Per Share1

   

Southern California Edison

    $ 2.18 – 2.28  

Edison Mission Group

    $ 1.57 – 1.87  

EIX parent company and other

    $ (0.14 )
        

EIX core earnings per share

    $ 3.61 – $4.01  
        

Non-core items

    $ —    
        

EIX GAAP earnings per share

    $ 3.61 - $4.01  
        

1

Guidance excludes discontinued operations and change in GAAP accounting rules. The expected impact of participating securities is ($0.05) per share and is included in EIX parent company and other.

Use of Non-GAAP Financial Measures

Edison International’s earnings are prepared in accordance with generally accepted accounting principles used in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. Our management uses core earnings and EPS by principal operating subsidiary internally for financial planning and for analysis of performance. We also use core earnings and EPS by principal operating subsidiary as primary performance measurements when communicating with analysts and investors regarding our earnings results and outlook, as it allows us to more accurately compare the company’s ongoing performance across periods. Core earnings exclude discontinued operations and other non-core items and are reconciled to GAAP earnings per share.

EPS by principal operating subsidiary is based on the principal operating subsidiary net income and Edison International's weighted average outstanding common shares. The impact of participating securities (vested stock options that earn dividend equivalents that may participate in undistributed earnings with common stock) for each principal operating subsidiary is not material to each principal operating subsidiary’s EPS and is therefore reflected in the results of the Edison International holding company, which we refer to as EIX parent company. EPS and core EPS by principal operating subsidiary are reconciled to GAAP earnings per share.

Reminder: Edison International Will Hold a Conference Call Today

Today, Edison International will hold a conference call to discuss its fourth quarter 2007 financial results and 2008 earnings guidance at 8 a.m. (Pacific Standard Time). Two-way participation in the telephone call is limited to financial analysts and investors, while all other interested parties are invited to participate in a simultaneous webcast at www.edisoninvestor.com. A presentation accompanying management’s comments on the conference call will be available on the web site as well at www.edisoninvestor.com. The domestic call-in number is (800) 356-8584 and the ID# is 11500. In addition to the live simulcast, the webcast will remain posted at www.edisoninvestor.com and telephone replays will be available through Wednesday, March 5, 2008, at the following numbers: (877) 693-4277 – for callers in the U.S.; and (402) 220-0042 – for international callers. The ID# is 11501.

 

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Risk Disclosure Statement

Statements contained in this news release about future performance, including, without limitation, earnings, asset and rate base growth, load growth, capital investments, and other statements that are not purely historical, are forward-looking statements. These forward-looking statements reflect our current expectations; however, such statements involve risks and uncertainties. Actual results could differ materially from current expectations. Important factors that could cause different results are discussed under the headings “Risk Factors” and “Management’s Discussion and Analysis” in Edison International’s most recent Form 10-K and other reports filed with the Securities and Exchange Commission and are available on our website: www.edisoninvestor.com. These forward-looking statements represent our expectations only as of the date of this news release, and Edison International assumes no duty to update them to reflect new information, events or circumstances.

# # #

Edison International, through its subsidiaries, is a generator and distributor of electric power and an investor in infrastructure and energy assets, including renewable energy. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison, the largest electric utility in California, and Edison Mission Group, a competitive power generation business and parent company to Edison Mission Energy and Edison Capital.

 

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Edison International

Consolidated Statements of Income

 

     Quarter Ended     Year Ended  
     December 31,     December 31,  

In millions, except per-share amounts

    2007     2006     2007     2006  

Electric utility

    $ 2,581     $ 2,494     $ 10,476     $ 10,312  

Nonutility power generation

      623       554       2,575       2,228  

Financial services and other

      7       19       62       82  
                                

Total operating revenue

      3,211       3,067       13,113       12,622  
                                

Fuel

      449       431       1,875       1,757  

Purchased power

      694       590       3,124       3,409  

Provisions for regulatory adjustment clauses – net

      82       281       271       25  

Other operation and maintenance

      1,176       1,034       4,067       3,762  

Depreciation, decommissioning and amortization

      327       258       1,264       1,181  

Net loss (gain) on sale of utility property and plant

      2       (1 )     3       (2 )
                                

Total operating expenses

      2,730       2,593       10,604       10,132  
                                

Operating income

      481       474       2,509       2,490  

Interest and dividend income

      29       48       154       169  

Equity in income from partnerships and unconsolidated subsidiaries – net

      7       26       79       79  

Other nonoperating income

      21       43       95       133  

Interest expense – net of amounts capitalized

      (175 )     (200 )     (752 )     (807 )

Other nonoperating deductions

      (13 )     (28 )     (45 )     (63 )

Loss on early extinguishment of debt

      —         (3 )     (241 )     (146 )
                                

Income from continuing operations before tax and minority interest

      350       360       1,799       1,855  

Income tax expense

      100       66       492       582  

Dividends on preferred and preference stock of utility not subject to mandatory redemption

      13       13       51       51  

Minority interest

      23       15       156       139  
                                

Income from continuing operations

      214       266       1,100       1,083  

Income (loss) from discontinued operations – net of tax

      (3 )     22       (2 )     97  
                                

Income before accounting change

      211       288       1,098       1,180  

Cumulative effect of accounting change – net of tax

      —         —         —         1  
                                

Net income

    $ 211     $ 288     $ 1,098     $ 1,181  
                                

Weighted-average shares of common stock outstanding

      326       326       326       326  

Basic earnings (loss) per share:

         

Continuing operations

    $ 0.65     $ 0.80     $ 3.34     $ 3.28  

Discontinued operations

      (0.01 )     0.07       (0.01 )     0.30  
                                

Total

    $ 0.64     $ 0.87     $ 3.33     $ 3.58  
                                

Weighted-average shares, including effect of dilutive securities

      330       330       331       330  

Diluted earnings (loss) per share:

         

Continuing operations

    $ 0.65     $ 0.80     $ 3.32     $ 3.27  

Discontinued operations

      (0.01 )     0.07       (0.01 )     0.30  
                                

Total

    $ 0.64     $ 0.87     $ 3.31     $ 3.57  
                                

Dividends declared per common share

    $ 0.305     $ 0.29     $ 1.175     $ 1.10  

 

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Edison International

Consolidated Balance Sheets

 

In millions

    December 31,
2007		     December 31,
2006		  

ASSETS

     

Cash and equivalents

    $ 1,441     $ 1,795  

Restricted cash

      3       59  

Margin and collateral deposits

      141       124  

Receivables, less allowances of $34 and $29 for uncollectible accounts at respective dates

      1,033       1,014  

Accrued unbilled revenue

      370       303  

Fuel inventory

      116       122  

Materials and supplies

      316       270  

Accumulated deferred income taxes – net

      167       203  

Derivative assets

      110       328  

Regulatory assets

      197       554  

Short-term investments

      81       558  

Other current assets

      290       152  
                

Total current assets

      4,265       5,482  
                

Nonutility property – less accumulated provision for depreciation of $1,765 and $1,627 at respective dates

      4,906       4,356  

Nuclear decommissioning trusts

      3,378       3,184  

Investments in partnerships and unconsolidated subsidiaries

      272       308  

Investments in leveraged leases

      2,473       2,495  

Other investments

      96       91  
                

Total investments and other assets

      11,125       10,434  
                

Utility plant, at original cost:

     

Transmission and distribution

      18,940       17,606  

Generation

      1,767       1,465  

Accumulated provision for depreciation

      (5,174 )     (4,821 )

Construction work in progress

      1,693       1,486  

Nuclear fuel, at amortized cost

      177       177  
                

Total utility plant

      17,403       15,913  
                

Regulatory assets

      2,721       2,818  

Restricted cash

      48       91  

Margin and collateral deposits

      18       4  

Derivative assets

      122       131  

Rent payments in excess of levelized rent expense under plant operating leases

      716       556  

Other long-term assets

      1,144       832  
                

Total long-term assets

      4,769       4,432  
                

Total assets

    $ 37,562     $ 36,261  
                

 

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Edison International

Consolidated Balance Sheets

 

In millions, except share amounts

    December 31,
2007		     December 31,
2006

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Short-term debt

    $ 500     $ —  

Long-term debt due within one year

      18       488

Accounts payable

      979       926

Accrued taxes

      49       155

Accrued interest

      160       196

Counterparty collateral

      42       36

Customer deposits

      219       198

Book overdrafts

      212       140

Derivative liabilities

      149       181

Regulatory liabilities

      1,019       1,000

Other current liabilities

      933       983
              

Total current liabilities

      4,280       4,303
              

Long-term debt

      9,016       9,101
              

Accumulated deferred income taxes – net

      5,196       5,297

Accumulated deferred investment tax credits

      114       122

Customer advances

      155       160

Derivative liabilities

      116       86

Power-purchase contracts

      22       32

Accumulated provision for pensions and benefits

      1,089       1,099

Asset retirement obligations

      2,892       2,759

Regulatory liabilities

      3,433       3,140

Other deferred credits and other long-term liabilities

      1,595       1,267
              

Total deferred credits and other liabilities

      14,612       13,962
              

Total liabilities

      27,908       27,366
              

Minority interest

      295       271
              

Preferred and preference stock of utility not subject to mandatory redemption

      915       915
              

Common stock, no par value (325,811,206 shares outstanding at each date)

      2,225       2,080

Accumulated other comprehensive income (loss)

      (92 )     78

Retained earnings

      6,311       5,551
              

Total common shareholders’ equity

      8,444       7,709
              

Total liabilities and shareholders’ equity

    $ 37,562     $ 36,261
              

 

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EDISON INTERNATIONAL REPORTS 2007 FINANCIAL RESULTS

Page 11 of 12

 

Edison International

Consolidated Statements of Cash Flows

 

     Year Ended December 31,  

In millions

    2007     2006     2005  

Cash flows from operating activities:

       

Net income

    $ 1,098     $ 1,181     $ 1,137  

Less: income (loss) from discontinued operations

      (2 )     97       30  
                        

Income from continuing operations

      1,100       1,084       1,107  
                        

Adjustments to reconcile to net cash provided by operating activities:

       

Cumulative effect of accounting change – net of tax

      —         (1 )     1  

Depreciation, decommissioning and amortization

      1,264       1,181       1,061  

Loss on impairment of nuclear decommissioning trusts

      58       54       —    

Other amortization

      111       99       107  

Stock-based compensation

      37       47       48  

Minority interest

      156       139       167  

Deferred income taxes and investment tax credits

      (39 )     (136 )     160  

Equity in income from partnerships and unconsolidated subsidiaries

      (75 )     (76 )     (136 )

Income from leveraged leases

      (49 )     (67 )     (71 )

Regulatory assets – long-term

      148       92       387  

Regulatory liabilities – long-term

      157       18       (168 )

Loss on early extinguishment of debt

      241       146       25  

Impairment losses

      —         —         67  

Levelized rent expense

      (160 )     (161 )     (117 )

Derivative assets – long-term

      (14 )     (8 )     (42 )

Derivative liabilities – long-term

      (67 )     50       97  

Other assets

      (180 )     (231 )     75  

Other liabilities

      197       307       1  

Margin and collateral deposits – net of collateral received

      (24 )     601       (586 )

Receivables and accrued unbilled revenue

      (59 )     208       (321 )

Derivative assets – short-term

      111       182       (233 )

Derivative liabilities – short-term

      (108 )     (103 )     137  

Inventory and other current assets

      (121 )     (68 )     (47 )

Regulatory assets – short-term

      357       (18 )     17  

Regulatory liabilities – short-term

      19       318       192  

Book overdrafts

      72       —         —    

Accrued interest and taxes

      12       (123 )     36  

Accounts payable and other current liabilities

      18       (121 )     203  

Distributions and dividends from unconsolidated entities

      33       61       58  

Operating cash flows from discontinued operations

      (2 )     94       22  
                        

Net cash provided by operating activities

      3,193       3,568       2,247  
                        

Cash flows from financing activities:

       

Long-term debt issued

      2,930       2,350       1,325  

Premiums paid on extinguishment of debt and issuance costs

      (241 )     (181 )     (25 )

Long-term debt repaid

      (3,215 )     (2,110 )     (2,071 )

Bonds repurchased

      (37 )     —         —    

Issuance of preference stock

      —         196       591  

Redemption of preferred stock

      —         —         (148 )

Rate reduction notes repaid

      (246 )     (246 )     (246 )

Book overdrafts

      —         (118 )     25  

Short-term debt financing – net

      500       —         (88 )

Shares purchased for stock-based compensation

      (215 )     (173 )     (192 )

Proceeds from stock option exercises

      86       66       85  

Excess tax benefits related to stock option exercises

      45       27       —    

Dividends to minority shareholders

      (106 )     (162 )     (174 )

Dividends paid

      (378 )     (352 )     (326 )
                        

Net cash used by financing activities

    $ (877 )   $ (703 )   $ (1,244 )
                        

 

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EDISON INTERNATIONAL REPORTS 2007 FINANCIAL RESULTS

Page 12 of 12

 

Edison International

Consolidated Statements of Cash Flows

 

     Year Ended December 31,  

In millions

    2007     2006     2005  

Cash flows from investing activities:

       

Capital expenditures

    $ (2,826 )   $ (2,536 )   $ (1,868 )

Purchase of interest of acquired companies

      (33 )     (18 )     (154 )

Proceeds from sale of property and interest in projects

      2       89       10  

Proceeds from sale of discontinued operations

      —         —         124  

Proceeds from nuclear decommissioning trust sales

      3,697       3,010       2,067  

Purchases of nuclear decommissioning trusts investments

      (3,830 )     (3,150 )     (2,159 )

Proceeds from partnerships and unconsolidated subsidiaries, net of investment

      42       25       132  

Maturities and sales of short-term investments

      9,953       7,128       2,928  

Purchases of short-term investments

      (9,476 )     (7,474 )     (2,999 )

Restricted cash

      99       13       53  

Customer advances for construction and other investments

      (298 )     (50 )     62  

Investing cash flows from discontinued operations

      —         —         5  
                        

Net cash used by investing activities

      (2,670 )     (2,963 )     (1,799 )
                        

Effect of consolidation of variable interest entities on cash

      —         —         3  
                        

Effect of exchange rate changes on cash

      —         —         (1 )
                        

Net decrease in cash and equivalents

      (354 )     (98 )     (794 )

Cash and equivalents, beginning of year

      1,795       1,893       2,689  
                        

Cash and equivalents, end of year

      1,441       1,795       1,895  

Cash and equivalents – discontinued operations

      —         —         (2 )
                        

Cash and equivalents – continuing operations

    $ 1,441     $ 1,795     $ 1,893