EX-99.(C) 9 efch-20111231xexhibit99c.htm EFH CORP. ADJUSTED EBITDA RECONCILIATION EFCH-2011.12.31-Exhibit 99(c)


Exhibit 99(c)

Energy Future Holdings Corp. Consolidated
Adjusted EBITDA Reconciliation
(millions of dollars)

 
Year Ended December 31,
 
2011
 
2010
Net loss
$
(1,913
)
 
$
(2,812
)
Income tax expense (benefit)
(1,134
)
 
389

Interest expense and related charges
4,294

 
3,554

Depreciation and amortization
1,499

 
1,407

EBITDA
$
2,746

 
$
2,538

Oncor distributions/dividends
116

 
169

Interest income
(2
)
 
(10
)
Amortization of nuclear fuel
142

 
140

Purchase accounting adjustments (a)
204

 
210

Impairment of goodwill
—

 
4,100

Impairment and write-down of other assets (b)
433

 
15

Debt extinguishment gains
(51
)
 
(1,814
)
Equity in earnings of unconsolidated subsidiary
(286
)
 
(277
)
Unrealized net gain resulting from hedging and trading transactions
(58
)
 
(1,221
)
EBITDA amount attributable to consolidated unrestricted subsidiaries
—

 
1

Amortization of "day one" net loss on Sandow 5 power purchase agreement
—

 
(22
)
Noncash compensation expense (c)
13

 
18

Severance expense
7

 
4

Transition and business optimization costs (d)
39

 
4

Transaction and merger expenses (e)
37

 
48

Restructuring and other (f)
73

 
(117
)
Expenses incurred to upgrade or expand a generation station (g)
100

 
100

Adjusted EBITDA per Incurrence Covenant
$
3,513

 
$
3,886

Add Oncor Adjusted EBITDA (reduced by Oncor Holdings distributions)
1,523

 
1,354

Adjusted EBITDA per Restricted Payments Covenant
$
5,036

 
$
5,240

___________
(a)
Purchase accounting adjustments include amortization of the intangible net asset value of retail and wholesale power sales agreements, environmental credits, coal purchase contracts, nuclear fuel contracts and power purchase agreements and the stepped up value of nuclear fuel. Also include certain credits and gains on asset sales not recognized in net income due to purchase accounting. 2011 includes $46 million related to an asset sale.
(b)
Impairment of assets in 2011 includes impairment of emission allowances and certain mining assets due to EPA rule issued in July 2011.
(c)
Noncash compensation expenses represent amounts recorded under stock-based compensation accounting standards and exclude capitalized amounts.
(d)
Transition and business optimization costs include certain incentive compensation expenses, as well as professional fees and other costs related to generation plant reliability and supply chain efficiency initiatives.
(e)
Transaction and merger expenses primarily represent Sponsor Group management fees.
(f)
Restructuring and other includes gains on termination of a long-term power sales contract and settlement of amounts due from hedging/trading counterparty, fees related to the April 2011 amendment and extension of the TCEH Senior Secured Facilities, and reversal of certain liabilities accrued in purchase accounting.
(g)
Expenses incurred to upgrade or expand a generation station reflect noncapital outage costs.