ML20203F942
| ML20203F942 | |
| Person / Time | |
|---|---|
| Site: | General Atomics, 07000734 |
| Issue date: | 07/25/1986 |
| From: | Meyer A WINTHROP, STIMSON, PUTNAM & ROBERTS |
| To: | NRC OFFICE OF ADMINISTRATION (ADM) |
| Shared Package | |
| ML20203F949 | List: |
| References | |
| 27604, NUDOCS 8607310211 | |
| Download: ML20203F942 (17) | |
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s e i.Aw orr1CEs or EowiN s.wESELT WINTHROP, STIMSON, PUTNAM & ROBERTS co,,,cy, cut OrricE G ERALD D. MORGAN,JR. 440 SUMMER STREET KAYMOND S.C ALAMARO 1855 CONNECTICUT AVENUE,N.W. . WASHINGTON, D.C. 20036 sTAMroRo conn oeoos PETER r.OOLD' TELEPHONC 202-457-9500 REseoENT PARTNERS TELEX: WlHSTIM DC 316229 FLORinA OrricE TELECOPIER'.202 833-8494 sas WORTH AVENUE RGEERT REEG GRAY PALM UEACM, PLA.23 4SO MALCOLM A.MaclNTYRE MAIN OFrlCE TELEPHONE 305-655-7a97 LOUIS H. KURRELMEYER 40 WALL STREET, NEW YORet, N Y.10005 TELEPHONC212-943 0700 - C ABLE. WINSTIM, N Y. EUROPEAN OFFICE chan OLL E MsLL INTERNATIONAL TELEX. 62854 DOMEST C TELEX 96-8196
' FEDERAL PRACTICE ONLv TELEPHONC Oe-236-240s July 25, J.986 Docket No.50-089'/163 United States Nuclear Regulatory Commission Bethesda, MD 20014 Attention: Document Control Desk
Dear Sir or Madam:
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This letter is in response to Harold Bernard's recent " Request for Additional Financial Information - GA Technologies Inc." (the " Request"), addressed to John
, Pritchard of this office. The numbered paragraphs below l correspond to the numbered paragraphs in the Request.
l l 1. Because GA Technologies Inc. ("GA") is a
! wholly-owned subsidiary of Chevron U.S.A. Inc., its annual financial statements are not separately audited.
Accordingly, we are unable to provide you with audited financial statements for GA. However, GA prepares unaudited statements annually as an integral part of the preparation of audited statements for its ultimate parent, Chevron Corporation., The most recent such unaudited financial statements for the year ended December 31, 1985 are enclosed as Exhibit A. They include an income statement, balance sheet and statement l of changes in financial position. GA's results of l operations for the year ended December 31, 1984 are also reflected on the financial statements enclosed.
General Atomic Technologies Corporation ("GATC") has no operating history as of this time, and will commence operations only upon consummation of its proposed acquisition of GA. It therefore has generated no financial statements.
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, r Nucloor Ragulatory Commission July 25, 1986 Enclosed as Exhibit B are financial projections prepared by GA for planning purposes in the ordinary course of its business covering the years 1986, 1987 and 1988. Such. financial projections include an income statement, balance sheet and statement of changes in financial position and have been prepared upon the assumption that a wholly-owned subsidiary of GATC will be merged into GA, with GA surviving the merger, as set forth in GATC's application to the Nuclear Regulatory Commission for approval of a transfer of control of GA.
. GA and its predecessor entity have been in business i for over 30 years, and during this time there has always been adequate funding to operate the NRC-licensed facilities. The costs of operating such licensed
- facilities have been fully reflected in the financial statements and financial projections submitted herewith.
4 GA has a history of profitable operations after providing
, for all costs of operating the licensed facilities. The Company had income before income taxes of $7,136,000 in 1984 and of $2,599,000 in 1985. Based upon GA's projections, while it expects to lose $2,913,000 in 1986 i as the result of a one-time non-ca'sh provision for early retirement costs of $7,700,000, it projects that income i for 1986, before this unusual item and income taxes, will be $4,787,000 and for 1987 and 1988 will be $7,650,000 and $7,950,000 respectively. GA does not expect that it
- will need funds over and above those internally generated i to operate its business and the licensed facilities and i to meet its clean-up obligations.
I 4. Attached as Exhibit C is a detailed estimate of
- the costs to decommission GA's high enriched nuclear fuel
! fabrication facility (the "NFF Facility") in the form of an update of GA's cost estimate provided in its June 15, 1979 submittal to the NRC.
Sa. GA entered into a Services Agreement with Valley i
Pines Association ("VPA") in 1982 at the time of the reorganization of VPA which resulted in the formation of GA. Prior to the reorganization, VPA was known as General Atomic Company. VPA retained certain of its assets and liabilities after the reorganization and in the Services Agreement contracted to have GA perform l certain tasks for it. Among the obligations retained by i VPA was the responsibility to decommission the NFF l Facility. In an amendment to the Services Agreement to I be entered into as of the Closing of GATC's acquisition 1 of GA, VPA's obligations to pay the full cost of the 1
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Nuclear Rsgulatory Commission July 25, 1986 decommissioning are re-affirmed subject only to (i) GA's orderly shut-down of the NFF Facility within a reasonable time and (ii) the payment by CA of the incremental cost of decommissioning caused by work for. third parties not under contract as of the date of General Atomic's acquisition of GA. If GA elects to keep any portion of the NFF Facility open for its own business reasons after it receives notice of VPA's desire to shut it down, VPA is then relieved of the responsibility to fund the decommissioning of such portion. General Atomic intends to shut down all portions of the NFF Facility requiring decommissioning within a time period that would result in VPA funding the full cost thereof. It does not intend to engage in any third party contracts unless such third parties undertake to assume any additional decommissioning costs,
- b. The general partners of VPA are Chevron U.S.A.
Inc. ("CUSA"), a wholly-owned subsidiary of Chevron Corporation that was formerly known as Gulf Oil Corporation, and Scallop Corporation (" Scallop"), a subsidiary of the Royal Dutch /Shell Group. As general partners, CUSA and Scallop are jointly and severally liable for the obligations of VPA. In addition, VPA has a contract with Public Service Company of Colorado
("PSC") pursuant to which PSC will reimburse VPA in excess of 80% of the full cost of decommissioning the NFF l Facility, subject only to tne conditions described above I with respect to VPA's obligations.
- c. As described above, VPA is obligated to fund the full cost of the decommissioning of the NFF Facility.
- Given the size of the two general partners of VPA and
- PSC's contractual obligations to VPA, it is an extremely remote possibility that VPA will have insufficient funds to fund the decommissioning. If such funds are inadequate, however, the projections contained in Exhibit B demonstrate that GA will have the funds to pay the decommissioning costs.
- d. GA will be reimbursed for costs after they are incurred in decommissioning the NFF Facility; diversion
- of funds is therefore not possible.
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- 6. Attached as Exhibit C is an estimate of the l combined decommissioning costs for the hot cell, the two l Triga research reactors and the low enriched nuclear fuel fabrication facility in the form of an update of GA's cost estimates in its June 15, 1979 submittal to the i NRC. GA expects that funds will be available from l internally generated sources for decommissioning each facility.
Nuclocr Regulatory Commission July 25, 1986
- 7. In view of the type of decommissioning contemplated, no post-decommissioning maintenance or surveillance of any such facilities will be required.
I trust that the enclosed information is responsive to your Request. Please let John Pritchard or me know if it would be helpful for you to speak with representatives of the Company who are familiar with GA's historical and projected financial condition.
Very truly yours, h
Aileen Meyer Sworn to before me this 25th day of July, 1986 bh Notary Public
% OWw4m Exvirn Taly 71,1990 Enclosures l
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GA TECHNOLOGIES INC.
Balance Sheet Thousands of Dollars Before Income Taxes , December 31 Unaudited ' 1985 1984 Assets Current Assets Cash and Cash Investments S 8,478 $13,658 Accounts Receivable - Billed, Net of Allowance for Doubtful Accounts of $776 and $1,660 in 1985 and 1984, respectively 13,268 16,099 Amounts Receivable from Affiliated Companies 1,115 824 Accounts Receivable - Unbilled, Including i
Retention of $1,807 and $1,240 in 1985 and 1984, respectively 19,405 18,220 Inventories (Note 3) 7,054 4,305 Total Current Assets 49,320 53,106 Property, Plant and Equipment, Net of Accumulated Depreciation (Note 4) 24,031 23,175 Investments in Affiliated Companies (Note 5) 255 312 Long-Term Receivables from Affiliated Companies (Note 9) 4,199 3,629 Other Long-Term Receivables 2,858 2,204 Total Assets 80,663 82,426
Liabilities and Stockholder's Equity Current Liabilities Accounts Payable and Accrued Liabilities (Note 12) 11,860 11,563 Employee Compensation and Benefits 13,163 11,850 Customer Advances 10,895 8,334 Amounts. Payable to Affiliated Companies 207 310 Total Current Liabilities 36,125 32,057 Other Long-Term Liabilities (Note 9) 4,199 3,629 Commitments and Contingent Liabilities (Notes 10 and 11)
Total Liabilities 40,324 35,686 Stockholder's Equity Common Stock, $100 Par Value,100 Shares Authorized, 20 Shares Issued (Note 1) 2 2 l Paid-In Capital 31,357 31,357 i
Retained Earnings 8,980 15,381 Stockholder's Equity 40,339 46,740
, Total Liabilities and Stockholder's Equity $80,663 $82,426 l ======= =======
The accompanying Notes are an integral part of the financial statements.
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EXHIBIT A
GA TECHNOLOGIES INC.
FINANCIAL STATEMENTS Statement of Income Thousands of Dollars Before Income Taxes Year Ended December 31 Unaudited 1985 1984 Revenues $154,593 $168,920 Costs & Expenses Cost of Revenues 113,253 125,354 i Selling, General & Administrative Expense 27,560 27,363 Continuing Design, Research & Development Costs 7,815 9,067 148,628 161,784 Income Before Unusual Item and Income Taxes 5,965 7,136 Unusual Item - Early Retirement Bonus (Note 6) 3,366 -
Income Before Income Taxes $ 2,599 $ 7,136
== ==
Statement of Retained Earnings l Thousands of Dollars Before Income Taxes Year Ended December 31 Unaudited 1985 1984 Retained Earnings at Beginning of, Year $15,381 $ 8,245 Net Income 2,599 7,136 Dividends Paid (9,000)
Retained Earnings at End of Year S 8,980 $15,381
= =
The accompanying Notes are an integral part of the financial statements.
GA TECHNOLOGIES INC.
Statement of Changes in Financial Position Thousands of Dollars Before Income Taxes J Year Ended December 31 Unaudited 1985 1984 Cash from Operations Income Before Income Taxes $2,599 $ 7,136 Depreciation 3,467 2,938 Cash from Operations Before Working Capital 6,066 10,074 Increase (Decrease) in Cash Due to Working Capital Changes Accounts and Notes Receivable 1,355 (4,375)
Inventories (2,749) (797)
Accounts Payable and Accrued Liabilities 194 _(1,808)
Accrued Employee Compensation and Benefits 1,313 675 Customer Advances 2,561 5,086 Cash from Operations $8,740 $ 8,855 Invesdnent Activities Capital Expenditures (4,480) (6,129)
Net Book Value of Plant and Equipment Sold or Retired 157 70 Decrease in Investments 57 3,084 (Increase) in Long-Term Receivables (1,224) (2,798)
Financing Activities Increase in Long-Term Liabilities 570 594 Cash Dividends (9,000)
Net Increase (Decrease) in Cash and Marketable Securities ($5,180) $3,676
==
The accompanying Notes are an integral part of the financial statements.
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Note 3 to Financia_1 Statements Note 1: Organization and Capitalization GA Technologies Inc. (the Company) is a wholly-owned subsidiary of Chevron USA, Inc. (Chevron), which is a wholly-owned subsidiary of Chevron Corporation. The Company was formed effective 1/1/82 pursuant to a Reorganization Agreement between Gulf Oil Corporation (now Chevron) and Scallop Nuclear Inc. (Scallop), which amended a Partnership Agreement between them, and provided for the distribution of certain businesses and assets of the Partnership (General Atomic Company) to the Partneta. Under the Reorganization Agreement, most of the ongoing business of General Atomic Company, including the technology and assets, were assigned to the Company. Chevron and Scallop elected to transfer title to the land held by the Partnership to the Partners as tenants in common. Fifty-seven acres of land not used by the Company are to be distributed to Scallop under the Reorganization. Necessary papers have not yet been filed to transfer title to the remaining realty (buildings) to the Company, although those assets are included in these financial statements. Chevron and scallop retained the remaining businesses and assets under the existing Partnership Agreement, as amended, adopting a new name, Valley Pines Associates.
GA is currently engaged in research and development for Nuclear Fission, Nuclear Fusion, Waste Management, and Defense Systems. It is also engaged in Electronics and TRIGA Reactor manufacturing and providing engineering services. A prime customer is the U.S. Government which provided $94,312 of the $154,593 revenue recorded in 1985.
The Articles of Incorporation authorized the Company to issue 100 shares of
$100 par value capital stock. Chevron owns the 20 shares issued and outstanding.
Note 2: Summary of Significant Accounting Policies Revenue Recognition. Long-term contracts are accounted for on the percentage-of-completion basis. Provisions for any anticipated losses on contracts are recorded when the loss becomes apparent.
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! Receivables. Unbilled receivables are established generally when revenue i is recognized on contracts which are accounted for by the percentage-of-completion method. At such time as the customer is invoiced, unbilled receivables are transferred to the billed category. Contracts for which revenues recognized exceed amounts billed are reflected in the aggregate Accounts Receivable - Unbilled in these financial statements, while contracts for which amounts billed exceed revenues recognized are shown as Customer Advances in the financial statements.
l Inventories. Inventories are stated at the lower of average cost or market. (Note 3)
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Property, Plf,nt cnd Equipment. Property, plant cnd equipment 10 ct& tad Et cost and depreciation is computed using principally the straight-line method over estimated useful lives which range from 12 to 30 years for buildings and improvements and 3 to 12 years for machinery and equipment.
The cost of additions and improvements which substantially extend the useful life of a particular asset is capitalized. Repair and maintenance l
costs are charged to expense. Upon sale, the cost and related accumulated '
depreciation are removed from the accounts and any gain or loss is included j in income. (Note 4) i Research and Development Costs. Continuing design, research and development costs, including costs of improving existing products, are expensed as incurred.
Subsidiaries. The equity method of accounting is used for investments in GA's wholly owned subsidiaries GA Technologies-Europe and Componentes Industriales Mexicanos, S.A. because their operations have an immaterial effect on the Company.
Note 3: Inventories Inventories included the following at December 31:
Thousands of Dollars 1985 1984 Finished goods S 632 $ 429 Work in process 4,072 1,659 Raw materials and supplies 2,310 1,943 Prepaid Expenses 40 274
$7,054 $4,305
l Note 4: Property, Plant and Equipment Property, plant and equipment consisted of the following at December 31:
Thousands of Dollars 1985 1984 Buildings $25,285 $23,978
. Equipment 31,196 30,293 Construction in progress 1,703 600 Subtotal 58,184 54,871 Less accumulated depreciation 34,153 31,696
$24,031 $23,175
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Nota 5: Inv2stments <
l Investments in subsidiary companies consisted of the following at December l 31: '
Thousands of Dollars '
1985 1984 GA Technologies Europe $14k $119 l Componentes Industriales Mexicanos, S.A. 110 80 General Atomic Europe Development Corp. -
112 Hochtemperatur Reaktorbau GmbH 1 1
$255 $312
General Atomic Europe Development Corp. was dissolved during 1986.
Note 6: Early Retirement Bonus In order for GA to meet its financial and business objectives, it was necessary for GA to reduce its staff during 1985. A Special Voluntary Early Retirement Bonus equal to two weeks of pay for each year of time service was offered in July to employees (11gible for early or regular retirement. This offer was accepted by 86 employees with a bonus cost to GA of $3,336 thousand. Payments of $729, $1,983, and $654 thousand were scheduled for 1985, 1986, and 1987, respectively.
Note 7: Income Tax <!s These financial statements reflect the operations of the Company before income taxes. The operating results of the Company are included with Chevron Corporation in preparation of its consolidated income tax return.
Note 8: Employee Benefit Plans '
The Company has a noncontributory pension plan covering substantially all employees. The Company's policy is to fully fund accrued pension costs.
Components of the Company's annual accrued pension costs include normal costs, an amortized portion of prior service costs and actuarial gains or losses, and an interest equivalent on related unamortized amounts. The amortization period is 15 years. The total amount charged to expense for the Company-sponsored pension plan, computed by independent actuaries under the projected unit credit cost method, was $4,542,000 in 1985 and
$4,688,000 in 1984. Accumulated benefits and net assets for the plan at December 31 are presented below:
Thousands of Dollars 1985 1984 Actuarial present value of accumulated plan benefits:
Vested $32,059 $27,495 Nonvested 5,576 5,373
$37,635 $32,868
= =
Net assets available for benefits $79,706 $63,945
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Tha actuarial prsesnt valua of accumulated plan bensfits chown tbova was calculated as of the balance sheet date in accordance with Statement of Financial Accounting Standards No. 36 using rates of 8.0% for 1985 and 1984. As required by the Standard, no projection for future salary levels or service is made; and the interest rate used for determining accumulated plan benefits is significantly higher than the more conservative earnings assumption rate used by the actuary in determining funding requirements of the plan. '
The Company also has an employee Savings-Stock Purchase Plan which is available to eligible employees. Employee contributions of 3% of salary are invested in U.S. Savings Bonds. The Company contributes an equal amount to a trust for investment in Chevron common stock. Contributions made by the Company vest in the employees upon contribution. The Company expense under the Savings-Stock Purchase Plan amounted to $1,623,000 in 1985 and $1,589,000 in 1984.
In addition to providing pension benefits, the Company provides certain health care and life insurance benefits for retired employees. Substan-tially all of the Company's employees may become eligible for those benefits if they reach normal retirement age or qualify for early retirement while working for the Company. Those and similar benefits for active employees are provided through an insurance company whose premiums are based on the benefits paid during the year or through a local Health Maintenance Organization whose premiums are community rated. The Company recognizes the cost of providing those benefits by expensing the annual insurance premiums, which were $2,813,136 for 1985. The cost of providing those benefits for 386 retirees is not separable from the cost of providing benefits for the 1,449 active employees.
Note 9: Transactions with Affiliated Companies The Company is providing certain services to Valley Pines Associates (Note 1). The Company charged Valley Pines Associates $6,760,000 during 1985 for the full cost of these services.
Valley Pines Associates has retained financial responsibility for the cost of decommissioning the Fuel Manufacturing facility and of collecting
- amounts due from Public Service Company of Colorado at time of decommis-sioning. Because the facility (buildings and equipment) is owned by the Company, a long-term receivable from Valley Pines and an offsetting liability for fuel manufacturing decommissioning is recorded on the books of GA Technologies Inc. in the amount of $4,199,000 at December 31, 1985.
During 1985, Chevron provided the Company with loaned personnel and other services at cost in the amount of $467,000; technical services and product sales to Chevron totaled $888,000.
Note 10: Long-Term Lease Commitments The Ccmpany leases computer, telecommunications and other equipment and a portion of its facilities under operating leases expiring between 1985 and 1989. Many of these leases contain escalation clauses, and/or renewal or purchase options. "he computer equipment lease provides the Company an option to purchase the equipment at various prices which may exceed. its market value.
Tha sppecximits futurs Eininum rintal commitments far all nonc:ncIltblo leases as of December 31, 1985 which aggregate $22,025,000 are as follows (thousands of dollars):
Facilities Computer Telecommunications Other Total 1986 598 4,232 492 176 5,498 1987 393 4,132 492) 133 5,150 1988 371 3,339 492 5 4,207 1989 - 3,339 492 - 3,831 1990 - 3,339 - - 3,339 After 1990 - - -
Total 1,362 18,381 1,968 314 22,025
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Rent expense incurred for operating leases for the year ended December 31, 1985 and 1984 amounted to approximately $4,430,000 and $3,790,000, respectively.
GA leases a Cray computer from G.E. Credit Corporation for the San Diego Supercomputer Center. This lease is $16.7 million of the total $18.4 million computer lease commitment. The remainder is primarily for the Company-used Univac 1182. The San Diego Supercomputer Center is operated by GA under a cost reimbursable contract for the Naticnal Science Foundatien. The National Science Foundal en is obligated to assume the lease payments in the event its operating contract with GA is terminated.
Note 11: Contingent Liabilities The California Board of Equalization has indicated an intent to seek additional use tax from GA on materials and equipment incorporated into the
, U.S. Government owned Doublet III research project. The San Diego County Assessor also intends to tax GA's use of the Doublet III equipment as a possessory interest. The tax claims of these agencies could be in excess of $2 million at December 31, 1985. GA will strongly dispute payment of these taxes. The probable outcome cannot be determined at this time.
Various claims and legal proceedings, arising in the course of business, are pending against the Company seeking monetary damages and other relief.
The amount of the liability, if any, from all claims and actions cannot be determined with certainty; but in the opinion of management, the ultimate liability for all pending legal proceedings and asserted legal claims should not materially affect the financial position of the Company at December 31, 1985.
Note 12: Accounts Payable and Accrued Liabilities Accrued liabilities include a $1.7 million provision to dispose of about 85,000 cubic feet of dirt contaminated with uranium and thorium. The disposal effort will commence in 1986 and be concluded in 1987.
i GA TECHNOLOGIES INC.
FINANCIAL PROJECTIONS Balance Slieet j 3-Year Pro Forma Thousands of Dollars Year Ended December 31 1986 1987 1988 Assets Current Assets Cash and Cash Investments $11,865 $13,715 $14,677 Accounts Receivable - Billed 14,901 15,601 16,301 Accounts Receivable - Unbilled 13,768 14,568 15,368 Inventories 5,512 5,512 5,512 Total Current Assets 46,046 49,396 51,858 Property, Plant and Equipment, Net of Accumulated Depreciation 14,278 16,478 18,678 Investments in Affiliated Companies 255 255 255 Other Long-Term Receivables 7,795 8,195 8,595 Total Assets 68,374 74,324 79,386
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Liabilities and Stockholder's Equity Current Liabilities Accounts Payable and Accrued Liabilities 10,900 9,300 9,300 Employee Compensation and Benefits 8,951 8,951 8,951 Customer Advances 9,081 9,081 9,081 Total Current Liabilities 28,932 27,332 27,332 Long-Term Debt 13,500 , 13,500 11,700 Other Long-Term Liabilities 11,969 11,869 11,769 Deferred Income Taxes 2,548 Total Liabilities 54,401 52,701 53,349 Stockholder's Equity 13,973 21,623 26,037 Total Liabilities and Stockholder's Equity $68,374 $74,324 $79,386
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EXHIBIT B
GA TECHNOLOGIES INC.
FINANCIAL PROJECTIONS Statement of Changes in Financial Position 3-Year Pro Forma /
Thousands of Dollars Year Ended December 31 1986 1987 1988 Cash from Operations Income After Income Taxes ($2,913) $7,650 $4,414 Depreciation 3,200 2,800 2,800 Cash from Operations Before Working Capital 287 10,450 7,214 Increase (Decrease) in Cash Due to Working Capital Changes
-l Accounts and Notes Receivable 5,119 (1,500) (1,500)
Inventories 1,542 Accounts Payable and Accrued Liabilities (1,167) (1,600)
Accrued Employee Compensation and Benefits (4,212)
Customer Advances (1,814)
Deferred Income Taxes 2,548 Cash from Operations (245) 7,350 8,262 Investment Activities Capital Expenditures (4,400) (5,000) (5,000)
Net Book Value of Plant and Equipment Sold or Retired 10,953 (Increase) in Long Term Receivables (738) (400) (400)
Financing Activities Increase in Long-Term Debt 13,500 (1,800) ,
Increase in Long-Term Liabilities 7,770 (100) (100)
Disposition of Building (9,953)
Redemption of Common Stock (13,500)
Net Increase (Decrease) in Cash and Marketable Securities $3,387 $1,850 $ 962
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GA TECHNOLOGIES INC.
FINANCIAL PROJECTIONS
_ Statement of Income j 3-Year Pro Forma Thousands of Dollars Year Ended Decenber 31 1986 1987 1988 Revenues $135,400 $141,000 $144,900 Costs & Expenses Cost of Revenues 100,100 102,000 104,800 Selling, General & Administrative Expense 23,800 24,000 24,600 Continuing Design, Research &
Development Costs 5,700 6,000 6,200 Interest Expense 1,013 1,350 1,350 130,613 133,350 136,950 Income Before Unusual Item and Income Tax 4,787 7,650 7,950 Unusual Item - Early Retirement Bonus 7,700 Income Before Income Tax (2,913) 7,650 7,950 Income Tax - Current 988 Income Tax - Deferred 2,548 Net Income After Taxes ($2,913) $7,650 $4,414
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l GA TECHNOLOGIES INC.
3-YEAR FINANCIAL PROJECTION ASSUMPTIONS J
Assumptions
- 1. The GA sale is consummated resulting in the transfer of GA buildings to a subsidiary of its parent and recording long-term debt of $13.5 million.
2.
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GA becomes liable for income taxes after the sale, and income tax rates remain at 46%.
- 3. Hazardous Waste business is abandoned in 1986 and related assets are written off.
- 4. The contaminated dirt is disposed of during 1986-1987 at a cost of $2.0 million, as set forth in GA's license application to the NRC.
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