EX-99.(C) 8 efih-2013630xexhibit99c.htm ADJUSTED EBITDA RECONCILIATION ENERGY FUTURE HOLDING COMPANY EFIH-2013.6.30-Exhibit 99(c)


Exhibit 99(c)

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

 
Six Months Ended
June 30, 2013
 
Six Months Ended
June 30, 2012
 
Twelve Months Ended
June 30, 2013
 
Twelve Months Ended
June 30, 2012
Net loss
$
(640
)
 
$
(1,000
)
 
$
(3,000
)
 
$
(1,847
)
Income tax benefit
(825
)
 
(583
)
 
(1,474
)
 
(1,118
)
Interest expense and related charges
1,382

 
1,804

 
3,086

 
4,153

Depreciation and amortization
695

 
679

 
1,389

 
1,438

EBITDA
$
612

 
$
900

 
$
1

 
$
2,626

Oncor Holdings distributions of earnings
80

 
69

 
158

 
153

Interest income
(1
)
 
(1
)
 
(2
)
 
(1
)
Amortization of nuclear fuel
74

 
83

 
147

 
156

Purchase accounting adjustments (a)
11

 
41

 
44

 
107

Impairment of goodwill
—

 
—

 
1,200

 
—

Impairment and write-down of other assets (b)
1

 
1

 
48

 
433

Debt extinguishment gains
—

 
—

 
—

 
(26
)
Equity in earnings of unconsolidated subsidiary (net of tax)
(141
)
 
(141
)
 
(270
)
 
(305
)
Unrealized net loss resulting from commodity hedging and trading transactions
529

 
765

 
1,290

 
322

EBITDA amount attributable to consolidated unrestricted subsidiaries
—

 
—

 
4

 
—

Noncash compensation expense (c)
3

 
7

 
7

 
17

Transition and business optimization costs (d)
13

 
19

 
29

 
44

Transaction and merger expenses (e)
19

 
19

 
39

 
38

Restructuring and other (f)
40

 
(3
)
 
58

 
(1
)
Charges related to pension plan actions (g)
—

 
—

 
285

 
—

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

 
60

 
100

 
100

Subtotal
$
1,340

 
$
1,819

 
$
3,138

 
$
3,663

Add Oncor Adjusted EBITDA (reduced by Oncor Holdings distributions)
785

 
764

 
1,621

 
1,564

Adjusted EBITDA per Restricted Payments Covenant
$
2,125

 
$
2,583

 
$
4,759

 
$
5,227

___________
(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. Twelve months ended 2013 also reflects the write-down of mineral interests in third quarter 2012.
(b)
Impairment of assets in the twelve months ended 2012 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 and information technology efficiency initiatives.
(e)
Transaction and merger expenses primarily represent Sponsor Group management fees.
(f)
Restructuring and other in the six and twelve months ended 2013 includes costs associated with EFH Corp.'s liability management program.
(g)
Charges related to pension plan actions resulted from the termination and payout of pension obligations for active nonunion employees of EFH Corp.'s competitive businesses and the assumption by Oncor under a new Oncor pension plan of all of EFH Corp.'s pension obligations to retirees and terminated vested participants. The charges represent actuarial losses previously recorded as other comprehensive income.
(h)
Expenses incurred to upgrade or expand a generation station represent noncapital outage costs.