TXU 2002 Annual Report - Financial Report

Quarterly Information (unaudited) The results of operations by quarter are summarized below and reflect the discontinuance of the Europe operations and the effect of EITF Issue No. 02-3 to report certain trading activities on a net basis. Net income was not affected by the accounting rule change as the decrease in revenues was offset in cost of energy sold and delivery fees. In the opinion of TXU Corp., all other adjustments (consisting of normal recurring accruals) necessary for a fair statement of such amounts have been made. Quarterly results are not necessarily indicative of a full year’s operations because of seasonal and other factors.

	QUARTER ENDED
	March 31	June 30	Sept. 30	Dec. 31


2002:
Operating revenues	$2,453	$2,505	$2,918	$2,158
Income (loss) from continuing operations before extraordinary loss	$274	$178	$256	$(533)
Income (loss) from discontinued operations, net of tax effect	$(2)	$23	$(44)	$(4,187)
Extraordinary loss, net of tax effect	$(17)	$—	$(1)	$(157)
Net income (loss) before preference stock dividends	$255	$201	$211	$(4,877)
Net income (loss) available for common stock	$250	$195	$206	$(4,883)
Basic and diluted per share of common stock:
Income (loss) from continuing operations before extraordinary
loss after provision for preference dividends	$1.02	$0.64	$0.88	$(1.81)
Income (loss) from discontinued operations, net of tax effect	$(0.01)	$0.09	$(0.15)	$(14.10)
Extraordinary loss, net of tax effect	$(0.07)	$—	$—	$(0.53)
Net income (loss) available for common stock	$0.94	$0.73	$0.73	$(16.44)

2001:
Operating revenues	$2,777	$2,381	$2,738	$2,153
Income from continuing operations before extraordinary loss	$125	$126	$310	$78
Income from discontinued operations, net of tax effect	$76	$81	$29	$ 6
Extraordinary loss, net of tax effect	$—	$—	$—	$(154)
Net income (loss) before preference stock dividends	$201	$207	$339	$(70)
Net income (loss) available for common stock	$196	$201	$334	$(76)
Basic and diluted per share of common stock:
Income from continuing operations before extraordinary
loss after provision for preference dividends	$0.47	$0.47	$1.17	$0.27
Income from discontinued operations, net of tax effect	$0.29	$0.31	$0.11	$0.02
Extraordinary loss, net of tax effect	$—	$—	$—	$(0.58)
Net income (loss) available for common stock	$0.76	$0.78	$1.28	$(0.29)

Also included in fourth quarter 2002 results were a $185 million ($120 million after-tax) accrual for regulatory-related retail clawback, a $237 million ($154 million after-tax) writedown of an investment in generation plant construction projects and $187 million ($174 million after-tax) in charges related to the Pinnacle joint venture to reflect the loss in value of the business.