Non-GAAP Financial Information
Management believes the adjusted net income from continuing operations and related per share data are representative of Pepco Holdings’ ongoing business operations. Management uses this information internally to evaluate Pepco Holdings’ period-over-period financial performance and, therefore, believes that this information is useful to investors. The presentation of adjusted net income from continuing operations and related per share data is intended to complement, and should not be considered as an alternative to, reported earnings and related per share data presented in accordance with accounting principles generally accepted in the United States (GAAP).
|Reconciliation of GAAP Financial Information to Adjusted Financial Information|
|Three Months||Six Months|
|Net Income from Continuing Operations – Millions of dollars||June 30,||June 30,|
|Reported (GAAP) Net Income from Continuing Operations||$||62||$||95||$||130||$||157|
|--||Mark-to-market (gains)/losses from Pepco Energy Services retail energy economic hedging activities (($12) million, $3 million, ($12) million, and $7 million pre-tax, respectively)||(7||)||2||(7||)||4|
|--||Impairment charges related to Pepco Energy Services long-lived assets ($3 million pre-tax)||2||-||2||-|
|Adjusted Net Income from Continuing Operations (Non-GAAP)||$||57||$||97||$||125||$||161|
|Three Months||Six Months|
|Earnings per Share from Continuing Operations||June 30,||June 30,|
|Reported (GAAP) Earnings per Share from Continuing Operations||$||0.27||$||0.42||$||0.57||$||0.69|
|--||Mark-to-market (gains)/losses from Pepco Energy Services retail energy economic hedging activities||(0.03||)||0.01||(0.03||)||0.02|
|--||Impairment charges related to Pepco Energy Services long-lived assets||0.01||-||0.01||-|
|Adjusted Earnings per Share from Continuing Operations (Non-GAAP)||$||0.25||$||0.43||$||0.55||$||0.71|
The income tax effect with respect to the foregoing adjustments was calculated using a composite income tax rate of approximately 40 percent.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV