DOCSLIB.ORG

Power and Utilities Accounting, Financial Reporting, and Tax Update

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Power and Utilities Accounting, Financial Reporting, and Tax Update Power and Utilities Accounting, Financial Reporting, and Tax Research Guide July 2018 This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. As used in this document, “Deloitte” means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/ us/about for a detailed description our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2018 Deloitte Development LLC. All rights reserved. Contents Foreword iv Acknowledgments and Contact Information v Section 1 — Industry Developments 1 Section 2 — SEC Update 37 Section 3 — Industry Hot Topics 54 Section 4 — Accounting Standards Codification Update 76 Section 5 — New Revenue Recognition Model 131 Section 6 — New Lease Accounting Model 154 Section 7 — Income Tax Update 174 Section 8 — Renewable Energy Considerations 195 Appendixes 211 Appendix A — Other Resources and Upcoming Events 212 Appendix B — Titles of Standards and Other Literature 213 Appendix C — Abbreviations 220 iii Foreword July 2018 To our clients, colleagues, and other friends: We are pleased to present the most current version of our Accounting, Financial Reporting, and Tax Research Guide for the power and utilities (P&U) industry. We have revised this publication to serve principally as a reference guide for readers rather than just as an annual update. Our industry continues to face changing markets, new and revised legislation, environmental initiatives or changes, regulatory pressures, cyber and physical threats, and new technologies, in addition to new accounting standards. This publication discusses accounting, tax, and regulatory matters that P&U entities will need to consider as a result of these changes, including updates to SEC, FASB, and tax guidance, and focuses on specialized industry accounting topics that frequently affect P&U companies, including rate-regulated entities. We have expanded several sections in this year’s publication that concentrate on accounting and reporting considerations related to the new accounting standards, including the discussion of those specific industry matters that remain outstanding with the AICPA’s Power and Utility Entities Revenue Recognition Task Force. Certain sections of this publication are designed to help you understand and address potential challenges in accounting and reporting related to topics on which the FASB has recently issued (1) proposed guidance or (2) final standards that are not yet effective or available for adoption. Our publication discusses such proposed and codified standards and highlights nuances that could affect our industry. We hope you find this update a useful resource, and we welcome your feedback. As always, we encourage you to contact your Deloitte team or any of our Deloitte specialists for additional information and assistance. Sincerely, William P. Graf U.S. Power & Utilities Audit Functional Sector Leader and Industry Professional Practice Director Deloitte & Touche LLP iviv Acknowledgments and Contact Information Acknowledgments We would like to thank the following Deloitte professionals for contributing to this publication: James Barker Michael Gyoerkoe Michael Lorenzo Shahid Shah Mark Bolton John Hartman Jake Manning Lindsey Simpson David Brown Bree Hillman Roy Matsunaga Cheryl Smolinski Ashley Carpenter Chase Hodges Kenjiro Matsuo Conor Tamms Diane Castro David Horn Peter McLaughlin Allison Taylor Emily Childs Jonathan Howard Melissa McMahon Brenna Vanderloop Chris Chiriatti Jeremy Hurwitch Morgan Miles Curt Weller Sandy Cluzet Eric Jain Adrian Mills Brent Wilberts Amy Davidson Courtney Johnson-Gomez Darry Newbill Hayley Wilden Jamie Davis Mike Juergens Adam Nicholson Andrew Winters George Fackler Tom Kilkenny Taylor Paul Dave Yankee Casey Fersch Sandie Kim Jeanine Pagliaro Jason Gambone Tim Kolber Haley Reuther Bill Graf Elise Lambert Andy Roberts U.S. Energy, Resources & Industrials Contacts Stanley Porter Scott Smith U.S. Energy, Resources & Industrials National U.S. Energy, Resources & Industrials Audit Leader Industry Leader Deloitte & Touche LLP Deloitte Consulting LLP +1 619 237 6989 +1 703 251 4000 [email protected] [email protected] Katie Pavlovsky Jeff Weirens U.S. Energy, Resources & Industrials Risk and U.S. Energy, Resources & Industrials Financial Advisory Leader Consulting Leader Deloitte FAS LLP Deloitte Consulting LLP +1 713 982 4358 +1 612 397 4382 [email protected] [email protected] Todd Crawford Marlene Motyka U.S. Energy, Resources & Industrials Tax Leader Global and U.S. Renewable Energy Leader Deloitte Tax LLP Deloitte Transactions and Business Analytics LLP +1 713 982 4048 +1 973 602 5691 [email protected] [email protected] v Deloitte | Power and Utilities Accounting, Financial Reporting, and Tax Research Guide U.S. Power & Utilities Contacts Scott Smith Bill Graf U.S. Power & Utilities National Sector Leader U.S. Power & Utilities Audit Functional Sector Leader Deloitte & Touche LLP and Industry Professional Practice Director +1 619 237 6989 Deloitte & Touche LLP [email protected] +1 312 486 2673 [email protected] Brian Murrell Reid Miller U.S. Power & Utilities Risk and Financial U.S. Power & Utilities Consulting Functional Sector Advisory Functional Sector Leader Leader Deloitte & Touche LLP Deloitte Consulting LLP +1 212 436 4805 +1 612 397 4156 [email protected] [email protected] Dave Yankee Tom Kilkenny U.S. Power & Utilities Tax Functional Sector Leader Power & Utilities Deputy Industry Professional Deloitte Tax LLP Practice Director +1 312 486 9842 Deloitte & Touche LLP [email protected] +1 469 417 2060 [email protected] James Barker Power & Utilities Deputy Industry Professional Practice Director Deloitte & Touche LLP +1 203 761 3550 [email protected] vi Section 1 — Industry Developments Role of M&A in the P&U Sector M&A activity in the energy sector continued to be active in 2017, with many micro- and macroeconomic factors coming together to create an opportunistic environment. The micro- and macroeconomic factors are being driven by market volatility throughout the sector, which is attributable to low natural gas and wholesale power prices and a low interest rate environment. Compounding the market volatility is the movement away from traditional fossil fuel-fired generation toward cleaner sources, coupled with changing energy market dynamics. Many regulated utilities have significant capital expenditure plans related to infrastructure needs that constitute growth potential for acquirers. All of these factors have led to shifting opportunities for energy investments by both public and private entities, including several deals between U.S. and Canadian utilities that were completed or announced in 2017. The acquisitions of public companies completed and announced in 2017 and the first quarter of 2018 had a wide range of premiums. Some examples of the premiums on transactions include the following: • Completed: o January 2017 (announced February 2016) — Liberty Utilities and The Empire District Electric Company (21 percent premium). o February 2017 (announced September 2016) — Enbridge Inc. and Spectra Energy Corp. (11 percent premium). o September 2017 (announced February 2017) — Peoples Natural Gas and Delta Natural Gas Company Inc. (17 percent premium). o March 2018 (announced August 2017) — Energy Capital Partners and Calpine Corporation (51 percent premium from May 9, 2017, price before speculation of a transaction). o April 2018 (announced October 2017) — Vistra Energy Corporation and Dynegy Inc. (43.8 percent premium). • Announced: o January 2017 — AltaGas and Washington Gas and Electric (12 percent premium). o July 2017 — Hydro One Limited and Avista Corporation (24 percent premium). o January 2018 — Dominion Energy Inc. and SCANA Corporation (42 percent premium). o April 2018 — CenterPoint Energy Inc. and Vectren Corporation (17 percent premium). o May 2018 — Southern Company (select subsidiaries and assets) and NextEra Energy (27 percent premium). M&A Activity M&A continued to play an active role in the P&U sector in 2017 and early 2018. Acquiring companies have sought to increase their financial security, reduce their risk profiles and costs, strengthen their balance sheets, diversify their state regulatory risk, and enhance their abilities to employ large capital investment programs. Some companies with regulated operations have sought to expand their rate bases and provide more stable, predictable earnings. During 2017, as in 2016, there were a significant number of 2 M&A Activity cross-border deals with Canadian entities as they sought to diversify their Canadian portfolios with U.S.-based utilities and assets. A number of significant M&A activities have been completed in the P&U sector over the past year, including the following: • Liberty Utilities and the Empire District Electric Co. — On January 1, 2017, Liberty Utilities, a subsidiary of Algonquin Power & Utilities
Load more

Recommended publications
  • Summary Report on LCA of CCA-Treated Utility Poles
    Conclusions and Summary Report: Environmental Life Cycle Assessment of Chromated Copper Arsenate-Treated Utility Poles with Comparisons to Concrete, Galvanized Steel, and Fiber- Reinforced Composite Utility Poles Prepared by: AquAeTer, Inc. © 2013 Arch Wood Protection, Inc. Project Name: Environmental Life Cycle Assessment of CCA-Treated Utility Poles Comparisons to Concrete, Galvanized Steel, and Fiber-Reinforced Composite Utility Poles Conclusions and Summary Report Arch Wood Protection commissioned AquAeTer, Inc., an independent consulting firm, to prepare a quantitative evaluation of the environmental impacts associated with the national production, use, and disposition of chromated copper arsenate (CCA)-treated, concrete, galvanized steel, and fiber- reinforced composite utility poles using life cycle assessment (LCA) methodologies and following ISO 14044 standards. The comparative results confirm: • Less Energy & Resource Use: CCA-treated utility poles require less total energy and less fossil fuel than concrete, galvanized steel, and fiber-reinforced composite utility poles. CCA-treated utility poles require less water than concrete and fiber-reinforced composite utility poles. • Lower Environmental Impacts: CCA-treated utility poles have lower environmental impacts in comparison to concrete, steel, and fiber-reinforced composite utility poles for all six impact indicator categories assessed: anthropogenic greenhouse gas, net greenhouse gas, acid rain, smog, ecotoxicity, and eutrophication-causing emissions. • Decreases Greenhouse Gas Levels: Use of CCA- treated utility poles lowers greenhouse gas levels in the atmosphere whereas concrete, galvanized steel, and fiber-reinforced composite utility poles increase greenhouse gas levels in the atmosphere. • Offsets Fossil Fuel Use: Reuse of CCA-treated utility poles for energy recovery in permitted facilities with appropriate emission controls will further reduce greenhouse gas levels in the atmosphere, while offsetting the use of fossil fuel energy.
    [Show full text]
  • Energy & Power Industry Update
    Energy & Power Industry Update February 2012 Member FINRA/SIPC www.harriswilliams.com Energy & Power Industry Update February 2012 What We’ve Been Reading • Despite a warm embrace of the natural gas industry from President Obama in his 2012 State of the Union Address, January has been a tough month for fuel. An unusually mild winter has dampened demand, sent prices to new lows, and accelerated rig count shifts towards liquids-rich plays. Most notably, Chesapeake Energy, self-proclaimed as “America’s Champion of Natural Gas,” announced that it would divert approximately $2 billion of capital slated for natural gas drilling to more profitable oil-directed drilling. The net effect on North American drilling activity from this shift is expected to be minimal. In fact, many of the oilfield services majors offered bullish commentary on North American activity despite some pricing headwinds in dry gas basins. We’ve included some of that commentary on the following pages for reference. • While natural gas may be encountering some near-term hurdles, the long-term view is certainly positive. This is made particularly clear in Black & Veatch’s (“B&V”) Energy Market Perspective 2011 Fall Forecast Overview: Adapting to the “New Normal,” which deserves mention for the length of its title alone. The report notes that approximately 300,000 MW of natural gas capacity could be added over the next 25 years. Part of this growth is due to the fact that more than 61,500 MW of coal capacity in the continental U.S. may be retired by 2020 (28,000 MW of coal plant retirements have already been announced).
    [Show full text]
  • Video Games and Financial Literacy
    Video Games and Financial Literacy The following games can be used to enhance 86 percent. Less than half of players financial literacy. Background on using real understood finance charges before playing, games in financial learning from recent while 82 percent did so afterward. And literature on the topic follows the game list. women said they felt more confident about handling finances after playing EverFi. www.everfi.com Practical Money Skills EverFi is a web-based simulation game http://www.practicalmoneyskills.com/games/ designed for individuals ages 16-24 that trainingcamp/. covers a wide range of financial topics. This This website contains seven free games that link: can be embedded at no cost in other http://www.everfi.com/images/screenShots/EverFi websites. The most widely used is Financial LifeMap.jpg provides a screenshot. EverFi Football, a joint venture between Visa and contains many “virtual worlds” and the NFL. The game is accompanied by a interactive activities including a tour of the classroom curriculum designed for high NY Stock Exchange and a used-car school students. Teams compete by dealership. EverFi offers a five-hour series of answering multiple-choice questions to earn Web tutorials. This is a SimCity-style game in yardage and score touchdowns. Financial which they control characters‟ spending Football has been distributed by 23 state habits, rewarding good choices and suffering governments to every public high school in the consequences of bad ones. those states. Building on the success of Financial Football, Visa recently released Doorways to Dream’s (D2D’s) Celebrity Financial Soccer (Financial Football outside of the US), an interactive FIFA-themed video Calamity game that tests users‟ knowledge of personal www.celebritycalamity.com.
    [Show full text]
  • Next-Gen Technology Transformation in Financial Services
    April 2020 Next-gen Technology transformation in Financial Services Introduction Financial Services technology is currently in the midst of a profound transformation, as CIOs and their teams prepare to embrace the next major phase of digital transformation. The challenge they face is significant: in a competitive environment of rising cost pressures, where rapid action and response is imperative, financial institutions must modernize their technology function to support expanded digitization of both the front and back ends of their businesses. Furthermore, the current COVID-19 situation is putting immense pressure on technology capabilities (e.g., remote working, new cyber-security threats) and requires CIOs to anticipate and prepare for the “next normal” (e.g., accelerated shift to digital channels). Most major financial institutions are well aware of the imperative for action and have embarked on the necessary transformation. However, it is early days—based on our experience, most are only at the beginning of their journey. And in addition to the pressures mentioned above, many are facing challenges in terms of funding, complexity, and talent availability. This collection of articles—gathered from our recent publishing on the theme of financial services technology—is intended to serve as a roadmap for executives tasked with ramping up technology innovation, increasing tech productivity, and modernizing their platforms. The articles are organized into three major themes: 1. Reimagine the role of technology to be a business and innovation partner 2. Reinvent technology delivery to drive a step change in productivity and speed 3. Future-proof the foundation by building flexible and secure platforms The pace of change in financial services technology—as with technology more broadly—leaves very little time for leaders to respond.
    [Show full text]
  • Argus Research (July 2020)
    EQUITY RESEARCH REPORT July 13, 2020 MOLECULAR DATA INC. (NCM: MKD) Founded in 2013, China-based Molecular Data operates an e-commerce platform that KEY STATISTICS connects and serves participants of the Chinese chemicals industry across the value chain. Key Stock Statistics COMPANY HIGHLIGHTS Recent price (7/7/20) $2.40 * MKD: Connecting China’s Chemical Industry Value Chain 52 week high/low $11.80/$0.57 ADS Outstanding (M) 115 * In our view, Molecular Data has assembled a comprehensive network that can capture value across multiple previous pain points in China’s fragmented chemicals industry. Market cap (M) $276.0 Dividend Nil * After several years of organically building platform capabilities to include financial services, warehousing, logistics and software as a service (SaaS) offerings, Molecular Yield Nil Data should now be able to diversify its revenue stream beyond its core chemical direct e-commerce sales. This should lead to enhanced profit margins and, ultimately, sustainable Sector Overview profitability. Sector Materials * At the end of 2019, Molecular Data completed an initial public offering that yielded net Sector % of S&P 500 2.5% proceeds of approximately $55 million. As a result, we view the company as well posi- tioned to invest in its integrated e-commerce platform with new higher-margin services, and to pursue the acquisition of new capabilities and services globally. Financials ($M) * Although we expect near-term financial results to be impacted by the COVID-19 outbreak, Cash & Mkt Securities 8.3 which forced many customers and suppliers to halt operations throughout the first half of Debt 2.0 2020, we are encouraged by continued robust traffic on the Molbase platform.
    [Show full text]
  • Technical Bulletin
    NORTH AMERICAN WOOD POLE COUNCIL No. 17-D-202 TECHNICAL BULLETIN Wood Pole Design Considerations Prepared by: W. Richard Lovelace Executive Consultant Hi-Line Engineering a GDS Company About NAWPC The North American Wood Pole Council (NAWPC) is a federation of three organizations representing the wood preserving industry in the U.S. and Canada. These organizations provide a variety of services to support the use of preservative-treated wood poles to carry power and communications to consumers. The three organization are: Western Wood Preservers Institute With headquarters in Vancouver, Wash., WWPI is a non-profi t trade association founded in 1947. WWPI serves the interests of the preserved wood industry in the 17 western states, Alberta, British Columbia and Mexico so that renewable resources exposed to the elements can maintain favorable use in aquatic, building, commercial and utility applications. WWPI works with federal, state and local agencies, as well as designers, contractors, utilities and other users over the entire preserved wood life cycle, ensuring that these products are used in a safe, responsible and environmentally friendly manner. Southern Pressure Treaters’ Association SPTA was chartered in New Orleans in 1954 and its members supply vital wood components for America’s infrastructure. These include pressure treated wood poles and wood crossarms, and pressure treated timber piles, which continue to be the mainstay of foundation systems for manufacturing plants, airports, commercial buildings, processing facilities, homes, piers, wharfs, bulkheads or simple boat docks. The membership of SPTA is composed of producers of industrial treated wood products, suppliers of AWPA-approved industrial preservatives and preservative components, distributors, engineers, manufacturers, academia, inspection agencies and producers of untreated wood products.
    [Show full text]
  • Utility Pole Assessment and Tagging at Ameren
    Utility Pole Assessment and Tagging at Ameren Utility pole inspection and treatment varies among Utilities. Ameren takes a pro -active approach to inspection and remedial treatment. Distribution, sub -transmission and transmission poles are inspected in cycles and receive inspection methods that are distinct to the pole species. Inspection and treatment helps to; 1. Identify failing utility poles and assess the overall condition of the system. 2. Treatment helps to extend the life of the utility pole. 3. Both together provide for greater system reliability. The industry standard for a safe utility pole requires 2 inches of good shell depth. Studies show that the greatest strength of a utility pol es lies in the outer 2 inches of shell. Please note that this pole was cut to displa y it ’s remaining shell of approximately one inch. Proper pole assessment employs at least 3 different forms of inspection. 1. A visual inspection as depicted below. 2. Sounding of the pole. 3. and boring the pole to measure remaining shell depth. Hammer sounding the pole. Depending on the specs, a pole will be hammer sounded from groundline to about 76 ” above groundline on all sides to detect any internal decay pockets. Groundline treatment of a sub transmission pole. The pole is excavated to a depth of 18 ”. Decayed wood and rotted material is removed and a Copper Napthenate wrap is applied. Pole tags play an important part in supporting the inspection cycle and AM/FM system. Pole tags fall into a few different categories; • Asset tags, used to support the AMFM system and Asset Management.
    [Show full text]
  • UNITED STATES SECURITIES and EXCHANGE COMMISSION Washington, DC 20549
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 November 1, 2004 Date of Report (Date of earliest event reported) Commission File Exact Name of Registrant as Specified in Its Charter; State of IRS Employer Number Incorporation; Address of Principal Executive Offices; and Identification Number Telephone Number - ------------------ -------------------------------------------------------------- ---------------------- 1-16169 EXELON CORPORATION 23-2990190 (a Pennsylvania corporation) 10 South Dearborn Street--37th Floor P.O. Box 805379 Chicago, Illinois 60680-5379 (312) 394-7398 333-85496 EXELON GENERATION COMPANY, LLC 23-3064219 (a Pennsylvania limited liability company) 300 Exelon Way Kennett Square, Pennsylvania 19348 (610) 765-6900 - ---------------------------------------------------------------------------------------------------------- Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Section 1 - Registrant's Business and Operations Item 1.01. Entry into a Material Definitive Agreement On September 29, 2004, Exelon Corporation (Exelon) and Exelon Generation Company, LLC (Generation), announced that Generation had exercised its call option to acquire Reservoir Capital Group's (Reservoir) 50% interest in Sithe Energies, Inc.
    [Show full text]
  • Lazard Ltd (Exact Name of Registrant As Specified in Its Charter)
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 23, 2014 Lazard Ltd (Exact name of registrant as specified in its charter) Bermuda (State or other jurisdiction of incorporation) 001-32492 98-0437848 (Commission (IRS Employer File Number) Identification No.) Clarendon House, 2 Church Street, Hamilton, Bermuda HM 11 (Address of Principal Executive Offices) (Zip Code) Registrant’s telephone number, including area code 441-295-1422 Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition. On October 23, 2014, Lazard Ltd (the “Company”) issued a press release announcing financial results for its third quarter ended September 30, 2014. A copy of the Company’s press release containing this information is being furnished as Exhibit 99.1 to this Report on Form 8-K and is incorporated herein by reference.
    [Show full text]
  • Financial Services Capabilities Brochure
    WE GET FINANCIAL SERVICES See how we can help you orchestrate an IT strategy to mitigate risk, transform the customer experience and drive data insights. DEPOSITORY INSTITUTIONS | CAPITAL MARKETS | INSURANCE 2 EMBRACING THE NEW FINANCIAL SERVICES DISRUPTION The financial services industry is being challenged with the need to innovate the way services are delivered, embrace analytics to drive more personalized experiences and protect against unprecedented security challenges. Not to mention navigating complex merger and acquisition (M&A) opportunities that increase business value and growth, without disrupting the customer experience. All the while operating within an evolving regulatory environment. That’s why we offer you the solutions and support you need to embrace the latest industry trends and technology initiatives, including transforming the customer experience, addressing data privacy compliance and improving data management with AI. We can advise you on how to select the best partners, solutions and services to help you reach your business goals. CDW.com/finance | 888.706.4239 3 CDW WORKS WITH MORE THAN 12,700 WHAT ARE THE TOP STRATEGIC PRIORITIES DEPOSITORY INSTITUTIONS, CAPITAL MARKETS FOR FINANCIAL INSTITUTIONS? FIRMS AND SPECIALTY SERVICE COMPANIES: 84% improve digital experience for customers • Supports 99% of the top U.S. banks enhance data analytics capabilities • Supports 55% of the top U.S. credit unions 42% • Supports more than 7,500 U.S. capital markets firms reduce operating costs • 75+ dedicated CDW Financial Services account managers 32% 31% improve innovation culture 28% digitize back-office operations Source: thefinancialbrand.com, Top 10 Retail Banking Trends for 2019, January 7, 2019 COMPREHENSIVE FINANCIAL SERVICES EXPERTISE Whether you’re looking to upgrade your security framework to address new data privacy regulations, break down data silos with the power of AI and machine learning tools, improve the customer experience in the branch or assess IT compatibility during a merger or acquisition, CDW Financial Services can help.
    [Show full text]
  • Dynegy Earnings.Pdf
    Dynegy Announces Full-Year 2011 Results, Provides Restructuring Update Full year 2011 summary: $281 million in Adjusted EBITDA, a decrease of $258 million compared to 2010 $(20) million in Cash Flow from Operations $1,084 million in liquidity at March 2, 2012, including $860 million in cash on hand and letter of credit availability PRIDE results exceeded targets with $58 million in cash cost savings and $376 million in collateral and other balance sheet improvements Fourth quarter 2011 summary: $(14) million in Adjusted EBITDA, a decrease of $117 million compared to the fourth quarter 2010 Recent Developments: Dynegy Holdings, LLC (DH) and its wholly owned subsidiaries have been deconsolidated for accounting purposes as of November 7, 2011. As a result, the company recorded a $1,657 million non-cash loss on deconsolidation. Clint Walden will be appointed Chief Accounting Officer effective March 9, 2012; Carolyn J. Stone named Senior Vice President – Financial Planning and Analysis. Hearing to approve Dynegy Holdings Disclosure Statement is expected to be held on Monday, March 12, 2012. HOUSTON--(BUSINESS WIRE)--Mar. 8, 2012-- Dynegy Inc. (NYSE:DYN) announced a $236 million operating loss for the full twelve months of 2011 compared to an operating loss of $11 million for 2010. These results include pre- tax, unrealized, net mark-to-market losses of $175 million ($107 million after-tax) and mark-to-market gains of $18 million ($11 million after-tax) during the years ended December 31, 2011 and 2010, respectively. 2011 Adjusted EBITDA was $281 million compared to $539 million for 2010. The reduced operating results can be attributed to a $31 million decrease in energy margins, $50 million in lower capacity revenues in all markets, a $123 million decrease in premium revenue due to fewer options sold, and a $34 million loss related to natural gas during the fourth quarter.
    [Show full text]
  • Dynegy July 6 PR.Pdf
    July 06, 2012 04:53 AM Eastern Daylight Time Dynegy Inc. Files Voluntary Petition to Reorganize Under Chapter 11; Sets Stage for Merger with Dynegy Holdings, LLC HOUSTON--(BUSINESS WIRE)--Dynegy Inc. (Dynegy) (NYSE:DYN) today filed a voluntary petition to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, Poughkeepsie Division. The Chapter 11 case of Dynegy’s wholly-owned subsidiary, Dynegy Holdings, LLC (Dynegy Holdings) is pending in the same court. The filing was made to facilitate the implementation of the transactions contemplated under the Amended and Restated Settlement Agreement entered into, by and among Dynegy, Dynegy Holdings, and certain Dynegy Holdings Debtors and the primary creditor constituencies in the Dynegy Holdings Chapter 11 case. Among other things, the settlement, which has already been approved by the court, provides for Dynegy and Dynegy Holdings to merge and for the administrative claim granted to Dynegy in the Dynegy Holdings Chapter 11 case to be transferred out of Dynegy for the benefit of its shareholders. Both of these matters are the subject of a pending motion in Dynegy Holdings’ case. Subject to obtaining additional relief from the court in Dynegy’s case, the filing will also permit the solicitation of votes on the Companies’ joint Chapter 11 plan to commence. It is contemplated that upon completion of the merger, Dynegy Inc. will be the surviving entity. All assets will then be held under a single holding company, thus eliminating a layer from the corporate structure. Dynegy subsidiaries that own and operate the Company’s coal-fired and gas-fired businesses were separately financed during 2011 and are therefore not included in today’s Chapter 11 filing.
    [Show full text]