Note 34 – Transco plc additional US GAAP disclosures
The following condensed consolidating financial information, comprising income statements, balance sheets and cash flow statements, is given in respect of Transco plc (‘Subsidiary Guarantor’), which became joint full and unconditional guarantor on 11 May 2004 with National Grid Transco plc (‘Parent Guarantor’) of the 6.625% Guaranteed Notes due 2018 issued in June 1998 by British Transco Finance Inc. (then known as British Gas Finance Inc.) (‘Issuer of notes’). Transco plc and British Transco Finance Inc. are wholly-owned subsidiaries of National Grid Transco plc.
The following financial information for National Grid Transco plc, Transco plc and British Transco Finance Inc. on a condensed consolidating basis is intended to provide investors with meaningful and comparable financial information and is provided pursuant to Rule 3-10 of Regulation S-X in lieu of the separate financial statements of each subsidiary issuer of public debt securities.
Summary income statements are presented, on a consolidating basis, for the three years ended 31 March 2005. Summary income statements of National Grid Transco plc and Transco plc are presented under UK and US GAAP measurement principles, as modified by the inclusion of the results of subsidiary undertakings on the basis of equity accounting principles.
The summary balance sheets of National Grid Transco plc and Transco plc include the investments in subsidiaries recorded under the equity method for the purposes of presenting condensed consolidating financial information under UK and US GAAP. The UK GAAP balance sheet presents these investments as ‘Net assets/(liabilities) of subsidiaries (equity accounted)’. The US GAAP summary balance sheet presents these investments within ‘Investments’.
The consolidation adjustments column includes the necessary amounts to eliminate the inter-company balances and transactions between National Grid Transco plc, Transco plc, British Transco Finance Inc. and other subsidiaries.
Transco plc and British Transco Finance Inc. were treated as acquired (as part of the business combination with Lattice Group plc) under US GAAP. As a consequence, under US GAAP, their results only feature in the following tables for the period after acquisition on 21 October 2002.
- Summary income statement for the twelve months to 31 March 2005 - UK GAAP
- Summary income statement for the twelve months to 31 March 2005 - US GAAP
- Summary income statement for the twelve months to 31 March 2004 - UK GAAP
- Summary income statement for the twelve months to 31 March 2004 - US GAAP
- Summary income statement for the twelve months to 31 March 2003 - UK GAAP
- Summary income statement for the twelve months to 31 March 2003 - US GAAP
- Balance sheet as at 31 March 2005 - UK GAAP
- Balance sheet as at 31 March 2005 - US GAAP
- Balance sheet as at 31 March 2004 - UK GAAP
- Balance sheet as at 31 March 2004 - US GAAP
- Cash flow statements
Summary income statement for the twelve months to 31 March 2005 – UK GAAP
| Parent Guarantor |
Issuer of notes |
Subsidiary Guarantor |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| |
National Grid Transco plc £m |
British Transco Finance Inc. £m |
Transco plc £m |
Other subsidiaries £m |
Consolidation adjustments £m |
National Grid Transco Group £m |
|||||
| Turnover | 1 | – | 3,135 | 5,899 | (514) | 8,521 | |||||
| Operating costs | |||||||||||
| Depreciation | – | – | (404) | (456) | – | (860) | |||||
| Payroll costs | (2) | – | (389) | (550) | – | (941) | |||||
| Purchases of electricity | – | – | – | (1,678) | – | (1,678) | |||||
| Purchases of gas | – | – | (113) | (272) | – | (385) | |||||
| Rates and property taxes | – | – | (244) | (246) | – | (490) | |||||
| Electricity transmission services scheme direct costs |
– | – | – | (301) | – | (301) | |||||
| EnMO direct costs | – | – | – | – | – | – | |||||
| Replacement expenditure | – | – | (474) | – | – | (474) | |||||
| Provision for doubtful debts | – | – | 3 | (45) | – | (42) | |||||
| Other operating charges (including exceptional items) |
(29) | – | (3,616) | (1,210) | 3,350 | (1,505) | |||||
| (31) | – | (5,237) | (4,758) | 3,350 | (6,676) | ||||||
| Operating profit | (30) | – | (2,102) | 1,141 | 2,836 | 1,845 | |||||
| Share of joint ventures’ operating profit |
– | – | – | 7 | – | 7 | |||||
| Non-operating exceptional items |
– | – | – | 83 | – | 83 | |||||
| Profit before interest and taxation |
(30) | – | (2,102) | 1,231 | 2,836 | 1,935 | |||||
| Net interest | (20) | – | (427) | (336) | – | (783) | |||||
| Dividends receivable | – | – | – | 500 | (500) | – | |||||
| Profit on ordinary activities before taxation |
(50) | – | (2,529) | 1,395 | 2,336 | 1,152 | |||||
| Taxation | 23 | – | (86) | (182) | – | (245) | |||||
| Profit on ordinary activities after taxation |
(27) | – | (2,615) | 1,213 | 2,336 | 907 | |||||
| Minority interests | – | – | – | 1 | – | 1 | |||||
| Interest in Group undertakings on an equity accounted basis |
935 | – | 2,918 | – | (3,853) | – | |||||
| Net income for the year | 908 | – (i) | 303 | 1,214 | (1,517) | 908 |
| (i) | Net income for the year for British Transco Finance Inc. is £nil as interest payable to external bondholders is offset by interest receivable on loans to Transco plc. |
|---|
Summary income statement for the twelve months to 31 March 2005 – US GAAP
| Parent Guarantor |
Issuer of notes |
Subsidiary Guarantor |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| |
National Grid Transco plc £m |
British Transco Finance Inc. £m |
Transco plc £m |
Other subsidiaries £m |
Consolidation adjustments £m |
National Grid Transco Group £m |
|||||
| Turnover | 1 | – | 3,151 | 5,896 | (514) | 8,534 | |||||
| Operating costs | |||||||||||
| Depreciation | – | – | (711) | (468) | – | (1,179) | |||||
| Payroll and severance costs | (2) | – | (408) | (587) | – | (997) | |||||
| Purchases of electricity | – | – | – | (1,678) | – | (1,678) | |||||
| Purchases of gas | – | – | (113) | (272) | – | (385) | |||||
| Rates and property taxes | – | – | (244) | (246) | – | (490) | |||||
| Electricity transmission services scheme direct costs |
– | – | – | (301) | – | (301) | |||||
| Provision for doubtful debts | – | – | 3 | (45) | – | (42) | |||||
| Other operating charges | (29) | – | (3,530) | (1,091) | 3,350 | (1,300) | |||||
| (31) | – | (5,003) | (4,688) | 3,350 | (6,372) | ||||||
| Operating profit | (30) | – | (1,852) | 1,208 | 2,836 | 2,162 | |||||
| Non-operating expenses | – | – | – | 37 | – | 37 | |||||
| Profit before interest and taxation |
(30) | – | (1,852) | 1,245 | 2,836 | 2,199 | |||||
| Net interest | 123 | – | (443) | (146) | 6 | (460) | |||||
| Dividends receivable | – | – | – | 500 | (500) | – | |||||
| Profit on ordinary activities before taxation |
93 | – | (2,295) | 1,599 | 2,342 | 1,739 | |||||
| Taxation | (20) | – | (160) | (249) | (2) | (431) | |||||
| Profit on ordinary activities after taxation |
73 | – | (2,455) | 1,350 | 2,340 | 1,308 | |||||
| Minority interests | – | – | – | (2) | – | (2) | |||||
| Interest in equity accounted affiliates |
1,231 | – | 2,930 | (2) | (4,161) | (2) | |||||
| Net income from continuing operations |
1,304 | – | 475 | 1,346 | (1,821) | 1,304 | |||||
| Net loss from discontinued operations |
– | – | – | – | – | – | |||||
| Net income for the year | 1,304 | – (i) | 475 | 1,346 | (1,821) | 1,304 |
| (i) | Net income for the year for British Transco Finance Inc. is £nil as interest payable to external bondholders is offset by interest receivable on loans to Transco plc. |
|---|
Summary income statement for the twelve months to 31 March 2004 – UK GAAP
| Parent Guarantor |
Issuer of notes |
Subsidiary Guarantor |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| |
National Grid Transco plc (restated) £m |
British Transco Finance Inc. £m |
Transco plc (restated) £m |
Other subsidiaries (restated) £m |
Consolidation adjustments (restated) £m |
National Grid Transco Group (restated) £m |
|||||
| Turnover | – | – | 3,194 | 6,310 | (471) | 9,033 | |||||
| Operating costs | |||||||||||
| Depreciation | – | – | (423) | (443) | – | (866) | |||||
| Payroll costs | – | – | (407) | (638) | – | (1,045) | |||||
| Purchases of electricity | – | – | – | (1,998) | – | (1,998) | |||||
| Purchases of gas | – | – | (86) | (285) | – | (371) | |||||
| Rates and property taxes | – | – | (238) | (278) | – | (516) | |||||
| Electricity transmission services scheme direct costs |
– | – | – | (277) | – | (277) | |||||
| EnMO direct costs | – | – | – | (158) | – | (158) | |||||
| Replacement expenditure | – | – | (388) | – | – | (388) | |||||
| Provision for doubtful debts | – | – | 2 | (64) | – | (62) | |||||
| Other operating charges (including exceptional items) |
(13) | – | (634) | (1,343) | 468 | (1,522) | |||||
| (13) | – | (2,174) | (5,484) | 468 | (7,203) | ||||||
| Operating profit | (13) | – | 1,020 | 826 | (3) | 1,830 | |||||
| Share of joint ventures’ operating profit |
– | – | – | 7 | – | 7 | |||||
| Non-operating exceptional items |
– | – | – | 322 | – | 322 | |||||
| Profit before interest and taxation |
(13) | – | 1,020 | 1,155 | (3) | 2,159 | |||||
| Net interest | (17) | – | (304) | (501) | – | (822) | |||||
| Dividends receivable | – | – | – | 70 | (70) | – | |||||
| Profit on ordinary activities before taxation |
(30) | – | 716 | 724 | (73) | 1,337 | |||||
| Taxation | 13 | – | (184) | (90) | – | (261) | |||||
| Profit on ordinary activities after taxation |
(17) | – | 532 | 634 | (73) | 1,076 | |||||
| Minority interests | – | – | – | (2) | – | (2) | |||||
| Interest in Group undertakings on an equity accounted basis |
1,091 | – | 11 | – | (1,102) | – | |||||
| Net income for the year | 1,074 | – (i) | 543 | 632 | (1,175) | 1,074 |
| (i) | Net income for the year for British Transco Finance Inc. is £nil as interest payable to external bondholders is offset by interest receivable on loans to Transco plc. |
|---|
Summary income statement for the twelve months to 31 March 2004 – US GAAP
| Parent Guarantor |
Issuer of notes |
Subsidiary Guarantor |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| |
National Grid Transco plc £m |
British Transco Finance Inc. £m |
Transco plc £m |
Other subsidiaries £m |
Consolidation adjustments £m |
National Grid Transco Group £m |
|||||
| Turnover | – | – | 3,186 | 6,151 | (471) | 8,866 | |||||
| Operating costs | |||||||||||
| Depreciation | – | – | (726) | (438) | – | (1,164) | |||||
| Payroll and severance costs | – | – | (484) | (813) | – | (1,297) | |||||
| Purchases of electricity | – | – | – | (1,998) | – | (1,998) | |||||
| Purchases of gas | – | – | (86) | (285) | – | (371) | |||||
| Rates and property taxes | – | – | (238) | (278) | – | (516) | |||||
| Electricity transmission services scheme direct costs |
– | – | – | (277) | – | (277) | |||||
| Provision for doubtful debts | – | – | 2 | (64) | – | (62) | |||||
| Other operating charges | (13) | – | (553) | (1,161) | 468 | (1,259) | |||||
| (13) | – | (2,085) | (5,314) | 468 | (6,944) | ||||||
| Operating profit | (13) | – | 1,101 | 837 | (3) | 1,922 | |||||
| Non-operating expenses | – | – | – | 32 | – | 32 | |||||
| Profit before interest and taxation |
(13) | – | 1,101 | 869 | (3) | 1,954 | |||||
| Net interest | (34) | – | (365) | (273) | – | (672) | |||||
| Dividends receivable | – | – | – | 70 | (70) | – | |||||
| Profit on ordinary activities before taxation |
(47) | – | 736 | 666 | (73) | 1,282 | |||||
| Taxation | 18 | – | (189) | (111) | – | (282) | |||||
| Profit on ordinary activities after taxation |
(29) | – | 547 | 555 | (73) | 1,000 | |||||
| Minority interests | – | – | – | (2) | – | (2) | |||||
| Interest in equity accounted affiliates |
1,027 | – | 64 | – | (1,091) | – | |||||
| Net income from continuing operations |
998 | – | 611 | 553 | (1,164) | 998 | |||||
| Net loss from discontinued operations |
– | – | – | – | – | – | |||||
| Net income for the year | 998 | – (i) | 611 | 553 | (1,164) | 998 |
| (i) | Net income for the year for British Transco Finance Inc. is £nil as interest payable to external bondholders is offset by interest receivable on loans to Transco plc. |
|---|
Summary income statement for the twelve months to 31 March 2003 – UK GAAP
| Parent Guarantor |
Issuer of notes |
Subsidiary Guarantor |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| |
National Grid Transco plc (restated) £m |
British Transco Finance Inc. £m |
Transco plc (restated) £m |
Other subsidiaries (restated) £m |
Consolidation adjustments (restated) £m |
National Grid Transco Group (restated) £m |
|||||
| Turnover | – | – | 3,083 | 6,764 | (447) | 9,400 | |||||
| Operating costs | |||||||||||
| Depreciation | – | – | (385) | (466) | – | (851) | |||||
| Payroll costs | – | – | (440) | (704) | – | (1,144) | |||||
| Purchases of electricity | – | – | – | (1,901) | – | (1,901) | |||||
| Purchases of gas | – | – | (108) | (249) | – | (357) | |||||
| Rates and property taxes | – | – | (235) | (302) | – | (537) | |||||
| Electricity transmission services scheme direct costs |
– | – | – | (252) | – | (252) | |||||
| EnMO direct costs | – | – | – | (530) | – | (530) | |||||
| Replacement expenditure | – | – | (405) | – | – | (405) | |||||
| Provision for doubtful debts | – | – | (4) | (20) | – | (24) | |||||
| Other operating charges (including exceptional items) |
(21) | – | (735) | (1,521) | 450 | (1,827) | |||||
| (21) | – | (2,312) | (5,945) | 450 | (7,828) | ||||||
| Operating profit | (21) | – | 771 | 819 | 3 | 1,572 | |||||
| Share of joint ventures’ operating profit |
– | – | – | 124 | – | 124 | |||||
| Non-operating exceptional items |
(32) | – | (12) | (51) | (4) | (99) | |||||
| Profit before interest and taxation |
(53) | – | 759 | 892 | (1) | 1,597 | |||||
| Net interest | 21 | – | (343) | (648) | – | (970) | |||||
| Dividends receivable | – | – | – | 244 | (244) | – | |||||
| Profit on ordinary activities before taxation |
(32) | – | 416 | 488 | (245) | 627 | |||||
| Taxation | (5) | – | (140) | (100) | – | (245) | |||||
| Profit on ordinary activities after taxation |
(37) | – | 276 | 388 | (245) | 382 | |||||
| Minority interests | – | – | – | (31) | – | (31) | |||||
| Interest in Group undertakings on an equity accounted basis |
388 | – | 23 | – | (411) | – | |||||
| Net income for the year | 351 | – (i) | 299 | 357 | (656) | 351 |
| (i) | Net income for the year for British Transco Finance Inc. is £nil as interest payable to external bondholders is offset by interest receivable on loans to Transco plc. |
|---|
Summary income statement for the twelve months to 31 March 2003 – US GAAP
| Parent Guarantor |
Issuer of notes |
Subsidiary Guarantor |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| |
National Grid Transco plc £m |
British Transco Finance Inc. £m |
Transco plc £m |
Other subsidiaries £m |
Consolidation adjustments £m |
National Grid Transco Group £m |
|||||
| Turnover | – | – | 1,673 | 5,945 | (217) | 7,401 | |||||
| Operating costs | |||||||||||
| Depreciation | – | – | (311) | (420) | – | (731) | |||||
| Payroll and severance costs | – | – | (191) | (913) | – | (1,104) | |||||
| Purchases of electricity | – | – | – | (1,901) | – | (1,901) | |||||
| Purchases of gas | – | – | (56) | (248) | – | (304) | |||||
| Rates and property taxes | – | – | (105) | (302) | – | (407) | |||||
| Electricity transmission services scheme direct costs |
– | – | – | (252) | – | (252) | |||||
| Provision for doubtful debts | – | – | (3) | (20) | – | (23) | |||||
| Other operating charges | (21) | – | (298) | (864) | 221 | (962) | |||||
| (21) | – | (964) | (4,920) | 221 | (5,684) | ||||||
| Operating profit | (21) | – | 709 | 1,025 | 4 | 1,717 | |||||
| Non-operating expenses | (32) | – | (10) | 37 | – | (5) | |||||
| Profit before interest and taxation |
(53) | – | 699 | 1,062 | 4 | 1,712 | |||||
| Net interest | 21 | – | (97) | (588) | – | (664) | |||||
| Dividends receivable | – | – | – | 120 | (120) | – | |||||
| Profit on ordinary activities before taxation |
(32) | – | 602 | 594 | (116) | 1,048 | |||||
| Taxation | (5) | – | (193) | (60) | – | (258) | |||||
| Profit on ordinary activities after taxation |
(37) | – | 409 | 534 | (116) | 790 | |||||
| Minority interests | – | – | – | (3) | – | (3) | |||||
| Interest in equity accounted affiliates |
788 | – | 17 | 3 | (805) | 3 | |||||
| Net income from continuing operations |
751 | – | 426 | 534 | (921) | 790 | |||||
| Net loss from discontinued operations |
– | – | – | (39) | – | (39) | |||||
| Net income for the year | 751 | – (i) | 426 | 495 | (921) | 751 |
| (i) | Net income for the year for British Transco Finance Inc. is £nil as interest payable to external bondholders is offset by interest receivable on loans to Transco plc. |
|---|
Balance sheet as at 31 March 2005 – UK GAAP
| Parent Guarantor |
Issuer of notes |
Subsidiary Guarantor |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| |
National Grid Transco plc £m |
British Transco Finance Inc. £m |
Transco plc £m |
Other subsidiaries £m |
Consolidation adjustments £m |
National Grid Transco Group £m |
|||||
| Fixed assets | |||||||||||
| Intangible assets | – | – | – | 2,003 | – | 2,003 | |||||
| Tangible assets | – | – | 7,942 | 9,811 | (7) | 17,746 | |||||
| Investments | – | – | – | 13,732 | (13,584) | 148 | |||||
| Net (liabilities)/assets of subsidiaries (equity accounted) |
(5,414) | – | 1,708 | – | 3,706 | – | |||||
| (5,414) | – | 9,650 | 25,546 | (9,885) | 19,897 | ||||||
| Current assets | |||||||||||
| Stocks | – | – | 30 | 71 | – | 101 | |||||
| Debtors (amounts falling due within one year) |
10,697 | – | 373 | 6,166 | (15,691) | 1,545 | |||||
| Debtors (amounts falling due after one year) |
– | 194 | 2,648 | 3,334 | (3,678) | 2,498 | |||||
| Current asset investments | 118 | – | 201 | 451 | (200) | 570 | |||||
| Cash at bank and in hand | – | – | 3 | 97 | – | 100 | |||||
| 10,815 | 194 | 3,255 | 10,119 | (19,569) | 4,814 | ||||||
| Creditors (amounts falling due within one year) |
|||||||||||
| Borrowings | (781) | – | (1,212) | (1,662) | 399 | (3,256) | |||||
| Other creditors | (2,233) | – | (3,601) | (12,278) | 15,220 | (2,892) | |||||
| (3,014) | – | (4,813) | (13,940) | 15,619 | (6,148) | ||||||
| Net current assets/(liabilities) | 7,801 | 194 | (1,558) | (3,821) | (3,950) | (1,334) | |||||
| Total assets less current liabilities |
2,387 | 194 | 8,092 | 21,725 | (13,835) | 18,563 | |||||
| Creditors (amounts falling due after more than one year) |
|||||||||||
| Borrowings | (1,020) | (194) | (2,757) | (7,264) | 272 | (10,963) | |||||
| Other creditors | (8) | – | (1,941) | (3,566) | 3,678 | (1,837) | |||||
| (1,028) | (194) | (4,698) | (10,830) | 3,950 | (12,800) | ||||||
| Provisions for liabilities and charges |
– | – | (1,448) | (2,924) | – | (4,372) | |||||
| Net assets employed | 1,359 | – | 1,946 | 7,971 | (9,885) | 1,391 | |||||
| Capital and reserves | |||||||||||
| Called up share capital | 309 | – | 45 | 2,191 | (2,236) | 309 | |||||
| Share premium account | 1,289 | – | 204 | 1,830 | (2,034) | 1,289 | |||||
| Other reserves | (5,131) | – | 1,332 | (181) | (1,151) | (5,131) | |||||
| Profit and loss account | 4,892 | – | 365 | 4,099 | (4,464) | 4,892 | |||||
| Equity shareholders’ funds | 1,359 | – | 1,946 | 7,939 | (9,885) | 1,359 | |||||
| Minority interests | |||||||||||
| Equity | – | – | – | 10 | – | 10 | |||||
| Non-equity | – | – | – | 22 | – | 22 | |||||
| – | – | – | 32 | – | 32 | ||||||
| 1,359 | – | 1,946 | 7,971 | (9,885) | 1,391 |
Balance sheet as at 31 March 2005 – US GAAP
| Parent Guarantor |
Issuer of notes |
Subsidiary Guarantor |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| |
National Grid Transco plc £m |
British Transco Finance Inc. £m |
Transco plc £m |
Other subsidiaries £m |
Consolidation adjustments £m |
National Grid Transco Group £m |
|||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | 118 | – | 204 | 403 | (200) | 525 | |||||
| Marketable securities | – | – | – | 156 | – | 156 | |||||
| Accounts and notes receivable | – | – | 37 | 516 | – | 553 | |||||
| Inventories | – | – | 30 | 71 | – | 101 | |||||
| Amounts owed by Group undertakings |
10,695 | – | 72 | 4,529 | (15,296) | – | |||||
| Regulatory assets | – | – | – | 443 | – | 443 | |||||
| Prepaid expenses and other current assets |
2 | – | 264 | 333 | – | 599 | |||||
| Total current assets | 10,815 | – | 607 | 6,451 | (15,496) | 2,377 | |||||
| Property, plant and equipment | – | – | 13,950 | 10,317 | (7) | 24,260 | |||||
| Goodwill | – | – | 3,746 | 2,313 | – | 6,059 | |||||
| Intangible assets | – | – | – | 272 | – | 272 | |||||
| Investments | 3,332 | – | 1,605 | 16,314 | (21,099) | 152 | |||||
| Amounts owed by Group undertakings |
9 | 178 | 2,644 | 840 | (3,671) | – | |||||
| Regulatory assets | – | – | – | 2,907 | – | 2,907 | |||||
| Other debtors | 226 | – | 151 | 870 | – | 1,247 | |||||
| Total assets | 14,382 | 178 | 22,703 | 40,284 | (40,273) | 37,274 | |||||
| Liabilities and shareholders’ equity | |||||||||||
| Current liabilities | |||||||||||
| Bank overdrafts | – | – | – | 18 | – | 18 | |||||
| Accounts payable | – | – | 342 | 769 | – | 1,111 | |||||
| Short-term borrowings | 792 | – | 1,233 | 1,204 | – | 3,229 | |||||
| Accrued income taxes | – | – | 22 | 57 | – | 79 | |||||
| Purchased power obligations | – | – | – | 54 | – | 54 | |||||
| Liability for index-linked swap contracts |
– | – | – | 99 | – | 99 | |||||
| Amounts owed to Group undertakings |
1,752 | – | 2,777 | 10,695 | (15,224) | – | |||||
| Other accrued liabilities | 63 | – | 552 | 725 | (77) | 1,263 | |||||
| Total current liabilities | 2,607 | – | 4,926 | 13,621 | (15,301) | 5,853 | |||||
| Long-term borrowings | 1,168 | 178 | 2,811 | 7,591 | (273) | 11,475 | |||||
| Amounts owed to Group undertakings |
– | – | 840 | 2,831 | (3,671) | – | |||||
| Purchased power obligations | – | – | – | 90 | – | 90 | |||||
| Liability for index-linked swap contracts |
– | – | – | 228 | – | 228 | |||||
| Post-retirement benefits | – | – | – | 1,515 | – | 1,515 | |||||
| Deferred income taxes | 8 | – | 3,421 | 2,046 | – | 5,475 | |||||
| Other liabilities | 8 | – | 158 | 1,843 | – | 2,009 | |||||
| Total liabilities | 3,791 | 178 | 12,156 | 29,765 | (19,245) | 26,645 | |||||
| Minority interest - equity | – | – | – | 10 | – | 10 | |||||
| Cumulative preference stock issued by Group undertakings |
– | – | – | 28 | – | 28 | |||||
| Shareholders’ equity | |||||||||||
| Common stock | 309 | – | 45 | 2,191 | (2,236) | 309 | |||||
| Additional paid in capital | 7,793 | – | 9,680 | 8,072 | (17,752) | 7,793 | |||||
| Other reserves | 359 | – | – | – | – | 359 | |||||
| Retained earnings | 3,377 | – | 822 | 1,357 | (2,179) | 3,377 | |||||
| Other comprehensive loss | (1,218) | – | – | (1,110) | 1,110 | (1,218) | |||||
| Treasury stock | (29) | – | – | (29) | 29 | (29) | |||||
| Equity shareholders’ funds | 10,591 | – | 10,547 | 10,481 | (21,028) | 10,591 | |||||
| Total liabilities and shareholders’ equity |
14,382 | 178 | 22,703 | 40,284 | (40,273) | 37,274 |
Balance sheet as at 31 March 2004 – UK GAAP
| Parent Guarantor |
Issuer of notes |
Subsidiary Guarantor |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| |
National Grid Transco plc £m |
British Transco Finance Inc. £m |
Transco plc £m |
Other subsidiaries £m |
Consolidation adjustments £m |
National Grid Transco Group £m |
|||||
| Fixed assets | |||||||||||
| Intangible assets | – | – | – | 1,537 | – | 1,537 | |||||
| Tangible assets | – | – | 7,880 | 8,829 | (3) | 16,706 | |||||
| Investments | – | – | – | 7,303 | (7,152) | 151 | |||||
| Net assets of subsidiaries (equity accounted) |
534 | – | 22 | – | (556) | – | |||||
| 534 | – | 7,902 | 17,669 | (7,711) | 18,394 | ||||||
| Current assets | |||||||||||
| Stocks | – | – | 32 | 59 | – | 91 | |||||
| Debtors (amounts falling due within one year) |
3,884 | – | 292 | 4,291 | (6,879) | 1,588 | |||||
| Debtors (amounts falling due after one year) |
– | 168 | 2,544 | 3,792 | (3,796) | 2,708 | |||||
| Current asset investments | 6 | – | 264 | 440 | (190) | 520 | |||||
| Cash at bank and in hand | – | 1 | – | 95 | – | 96 | |||||
| 3,890 | 169 | 3,132 | 8,677 | (10,865) | 5,003 | ||||||
| Creditors (amounts falling due within one year) |
|||||||||||
| Borrowings | (388) | – | (861) | (947) | 490 | (1,706) | |||||
| Other creditors | (2,056) | (4) | (1,801) | (5,286) | 6,340 | (2,807) | |||||
| (2,444) | (4) | (2,662) | (6,233) | 6,830 | (4,513) | ||||||
| Net current assets/(liabilities) | 1,446 | 165 | 470 | 2,444 | (4,035) | 490 | |||||
| Total assets less current liabilities |
1,980 | 165 | 8,372 | 20,113 | (11,746) | 18,884 | |||||
| Creditors (amounts falling due after more than one year) |
|||||||||||
| Borrowings | (746) | (165) | (2,768) | (8,103) | 240 | (11,542) | |||||
| Other creditors | (13) | – | (2,111) | (3,593) | 3,795 | (1,922) | |||||
| (759) | (165) | (4,879) | (11,696) | 4,035 | (13,464) | ||||||
| Provisions for liabilities and charges |
– | – | (1,352) | (2,797) | – | (4,149) | |||||
| Net assets employed | 1,221 | – | 2,141 | 5,620 | (7,711) | 1,271 | |||||
| Capital and reserves | |||||||||||
| Called up share capital | 309 | – | 45 | 540 | (585) | 309 | |||||
| Share premium account | 1,280 | – | 204 | 1,557 | (1,761) | 1,280 | |||||
| Other reserves | (5,131) | – | 1,332 | (181) | (1,151) | (5,131) | |||||
| Profit and loss account | 4,763 | – | 560 | 3,654 | (4,214) | 4,763 | |||||
| Equity shareholders’ funds | 1,221 | – | 2,141 | 5,570 | (7,711) | 1,221 | |||||
| Minority interests | |||||||||||
| Equity | – | – | – | 12 | – | 12 | |||||
| Non-equity | – | – | – | 38 | – | 38 | |||||
| – | – | – | 50 | – | 50 | ||||||
| 1,221 | – | 2,141 | 5,620 | (7,711) | 1,271 |
Balance sheet as at 31 March 2004 – US GAAP
| Parent Guarantor |
Issuer of notes |
Subsidiary Guarantor |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| |
National Grid Transco plc £m |
British Transco Finance Inc. £m |
Transco plc £m |
Other subsidiaries £m |
Consolidation adjustments £m |
National Grid Transco Group £m |
|||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | 6 | 1 | 264 | 447 | (190) | 528 | |||||
| Marketable securities | – | – | – | 102 | – | 102 | |||||
| Accounts and notes receivable | – | – | 16 | 480 | – | 496 | |||||
| Inventories | – | – | 32 | 59 | – | 91 | |||||
| Amounts owed by Group undertakings |
3,883 | – | 22 | 2,430 | (6,335) | – | |||||
| Regulatory assets | – | – | – | 512 | – | 512 | |||||
| Prepaid expenses and other current assets |
1 | – | 254 | 395 | (54) | 596 | |||||
| Total current assets | 3,890 | 1 | 588 | 4,425 | (6,579) | 2,325 | |||||
| Property, plant and equipment | – | – | 13,785 | 9,343 | (3) | 23,125 | |||||
| Goodwill | – | – | 3,746 | 1,859 | – | 5,605 | |||||
| Intangible assets | – | – | – | 50 | – | 50 | |||||
| Investments | 8,851 | – | (94) | 9,881 | (18,483) | 155 | |||||
| Amounts owed by Group undertakings |
– | 161 | 2,544 | 1,084 | (3,789) | – | |||||
| Regulatory assets | – | – | – | 3,136 | – | 3,136 | |||||
| Other debtors | 161 | – | 196 | 629 | (35) | 951 | |||||
| Total assets | 12,902 | 162 | 20,765 | 30,407 | (28,889) | 35,347 | |||||
| Liabilities and shareholders’ equity | |||||||||||
| Current liabilities | |||||||||||
| Bank overdrafts | – | – | 6 | 20 | – | 26 | |||||
| Accounts payable | – | – | 406 | 630 | – | 1,036 | |||||
| Short-term borrowings | 389 | – | 856 | 399 | – | 1,644 | |||||
| Accrued income taxes | – | – | 176 | – | (54) | 122 | |||||
| Purchased power obligations | – | – | – | 57 | – | 57 | |||||
| Liability for index-linked swap contracts |
– | – | – | 100 | – | 100 | |||||
| Amounts owed to Group undertakings |
1,680 | – | 750 | 3,856 | (6,286) | – | |||||
| Other accrued liabilities | 127 | 4 | 561 | 787 | (77) | 1,402 | |||||
| Total current liabilities | 2,196 | 4 | 2,755 | 5,849 | (6,417) | 4,387 | |||||
| Long-term borrowings | 872 | 158 | 2,894 | 8,572 | (240) | 12,256 | |||||
| Amounts owed to Group undertakings |
– | – | 1,084 | 2,705 | (3,789) | – | |||||
| Purchased power obligations | – | – | – | 149 | – | 149 | |||||
| Liability for index-linked swap contracts |
– | – | – | 291 | – | 291 | |||||
| Post-retirement benefits | – | – | – | 1,681 | – | 1,681 | |||||
| Deferred income taxes | – | – | 3,312 | 1,590 | (35) | 4,867 | |||||
| Other liabilities | 13 | – | 148 | 1,680 | – | 1,841 | |||||
| Total liabilities | 3,081 | 162 | 10,193 | 22,517 | (10,481) | 25,472 | |||||
| Minority interest - equity | – | – | – | 12 | – | 12 | |||||
| Cumulative preference stock issued by Group undertakings |
– | – | – | 42 | – | 42 | |||||
| Shareholders’ equity | |||||||||||
| Common stock | 309 | – | 45 | 540 | (585) | 309 | |||||
| Additional paid in capital | 7,768 | – | 9,680 | 7,799 | (17,479) | 7,768 | |||||
| Other reserves | 359 | – | – | – | – | 359 | |||||
| Retained earnings | 2,701 | – | 847 | 712 | (1,559) | 2,701 | |||||
| Other comprehensive loss | (1,282) | – | – | (1,181) | 1,181 | (1,282) | |||||
| Treasury stock | (34) | – | – | (34) | 34 | (34) | |||||
| Equity shareholders’ funds | 9,821 | – | 10,572 | 7,836 | (18,408) | 9,821 | |||||
| Total liabilities and shareholders’ equity |
12,902 | 162 | 20,765 | 30,407 | (28,889) | 35,347 |
Cash flow statements
| Parent Guarantor |
Issuer of notes |
Subsidiary Guarantor |
||||||
|---|---|---|---|---|---|---|---|---|
| |
National Grid Transco plc £m |
British Transco Finance Inc. £m |
Transco plc £m |
Other subsidiaries £m |
Consolidation adjustments £m |
National Grid Transco Group £m |
||
| UK GAAP cash flow statements | ||||||||
| Twelve months to 31 March 2005 | ||||||||
| Cash flow from operating activities | – | – | 1,153 | 1,756 | – | 2,909 | ||
| Dividends from subsidiary undertakings and joint ventures |
1,139 | – | 2,883 | 505 | (4,522) | 5 | ||
| Returns on investments and servicing of finance |
(31) | – | (372) | (355) | – | (758) | ||
| Taxation | – | – | (95) | (55) | – | (150) | ||
| Capital expenditure and financial investment |
– | – | (474) | (788) | – | (1,262) | ||
| Acquisitions and disposals | (273) | – | (4,490) | (1,130) | 4,763 | (1,130) | ||
| Equity dividends paid | (628) | – | (500) | (4,022) | 4,522 | (628) | ||
| Net cash inflow/(outflow) before management of liquid resources |
207 | – | (1,895) | (4,089) | 4,763 | (1,014) | ||
| Management of liquid resources | (112) | – | 62 | (4) | – | (54) | ||
| Financing | (95) | – | 1,836 | 4,103 | (4,763) | 1,081 | ||
| Increase in cash in the year | – | – | 3 | 10 | – | 13 | ||
| Twelve months to 31 March 2004 | ||||||||
| Cash flow from operating activities | (7) | – | 1,397 | 1,420 | – | 2,810 | ||
| Dividends from subsidiary undertakings and joint ventures |
352 | – | 2 | 78 | (424) | 8 | ||
| Returns on investments and servicing of finance |
8 | – | (243) | (457) | – | (692) | ||
| Taxation | – | – | (61) | 43 | – | (18) | ||
| Capital expenditure and financial investment |
– | – | (497) | (757) | – | (1,254) | ||
| Acquisitions and disposals | – | – | – | 7 | – | 7 | ||
| Equity dividends paid | (560) | – | (70) | (354) | 424 | (560) | ||
| Net cash (outflow)/inflow before management of liquid resources |
(207) | – | 528 | (20) | – | 301 | ||
| Management of liquid resources | 117 | – | (56) | (109) | – | (48) | ||
| Financing | 90 | – | (465) | 135 | – | (240) | ||
| Increase in cash in the year | – | – | 7 | 6 | – | 13 | ||
| Twelve months to 31 March 2003 | ||||||||
| Cash flow from operating activities | (53) | – | 1,291 | 1,588 | – | 2,826 | ||
| Dividends from subsidiary undertakings and joint ventures |
1,301 | – | 28 | 348 | (1,666) | 11 | ||
| Returns on investments and servicing of finance |
14 | – | (335) | (591) | – | (912) | ||
| Taxation | – | – | (50) | (62) | – | (112) | ||
| Capital expenditure and financial investment |
– | – | (605) | (802) | – | (1,407) | ||
| Acquisitions and disposals | (90) | – | 860 | 240 | (847) | 163 | ||
| Equity dividends paid | (382) | – | (337) | (2,365) | 2,513 | (571) | ||
| Net cash inflow/(outflow) before management of liquid resources |
790 | – | 852 | (1,644) | – | (2) | ||
| Management of liquid resources | (123) | – | 2 | (17) | – | (138) | ||
| Financing | (670) | – | (833) | 1,677 | – | 174 | ||
| (Decrease)/increase in cash in the year | (3) | – | 21 | 16 | – | 34 | ||
| US GAAP cash flow statements | ||||||||
| Twelve months to 31 March 2005 | ||||||||
| Net cash provided by operating activities |
1,108 | – | 4,043 | 1,854 | (4,522) | 2,483 | ||
| Net cash used in investing activities | (385) | – | (5,376) | (1,927) | 4,763 | (2,925) | ||
| Net cash (used in)/provided by financing activities |
(723) | – | 1,336 | 68 | (241) | 440 | ||
| Net increase/(decrease) in cash and cash equivalents |
– | – | 3 | (5) | – | (2) | ||
| Twelve months to 31 March 2004 | ||||||||
| Net cash provided by operating activities |
353 | – | 1,463 | 1,106 | (422) | 2,500 | ||
| Net cash used in investing activities | 117 | – | (921) | (896) | – | (1,700) | ||
| Net cash (used in)/provided by financing activities |
(470) | – | (535) | (245) | 422 | (828) | ||
| Net increase/(decrease) in cash and cash equivalents |
– | – | 7 | (35) | – | (28) | ||
| Twelve months to 31 March 2003 | ||||||||
| Net cash provided by operating activities |
1,262 | – | 1,060 | 979 | (1,301) | 2,000 | ||
| Net cash used in investing activities | (90) | – | (438) | (108) | – | (636) | ||
| Net cash (used in)/provided by financing activities |
(1,175) | – | (601) | (487) | 1,301 | (962) | ||
| Net (decrease)/increase in cash and cash equivalents |
(3) | – | 21 | 384 | – | 402 |