Summary
Exelon Corporation's (EXC) Form 10-Q/A filing for the period ending June 30, 2002, primarily serves to restate previously issued financial statements. The restatement addresses an error in deferred income taxes related to nuclear decommissioning trust fund securities and an adjustment to reflect Exelon's ownership interest in the Other Comprehensive Income of its equity investments. Importantly, these restatements do not affect net income, earnings per share, or cash flows for the reported periods. However, they do reduce Accumulated Other Comprehensive Income (AOCI) by $128 million as of December 31, 2001, and $129 million as of June 30, 2002. Financially, for the six months ended June 30, 2002, Exelon reported total operating revenues of $6.876 billion and net income of $492 million, compared to $7.439 billion in revenues and $714 million in net income for the same period in 2001. Operating income saw a decrease, reflecting higher operating expenses and a significant reduction in 'Other, net' income. Key operational developments include the acquisition of two generating plants from TXU Corp. for $443 million in April 2002 and an agreement to purchase Sithe New England Holdings, LLC, pending regulatory approval. The company also adopted new accounting standards, including SFAS No. 142, which resulted in a significant goodwill impairment charge of $357 million ($243 million net of tax) in the first quarter of 2002, primarily related to its Enterprises segment. Investors should note the ongoing legal matters and commitments, particularly environmental liabilities and energy-related contracts, which are detailed in the filing.
Key Highlights
- 1Restatement of financial statements due to errors in deferred income taxes and equity investments, impacting Accumulated Other Comprehensive Income (AOCI) but not net income or EPS.
- 2Total operating revenues for the six months ended June 30, 2002, were $6.876 billion, a decrease from $7.439 billion in the prior year's period.
- 3Net income for the six months ended June 30, 2002, was $492 million, down from $714 million in the comparable period of 2001.
- 4Acquired two natural-gas and oil-fired plants from TXU Corp. for $443 million in April 2002.
- 5Entered into an agreement to purchase Sithe New England Holdings, LLC, subject to regulatory approvals.
- 6Recorded a goodwill impairment loss of $357 million in the first quarter of 2002 due to the adoption of SFAS No. 142.
- 7Capital expenditures for the six months ended June 30, 2002, were $1.028 billion, an increase from $937 million in the prior year's period.