EN1 | Enron Corp. 2000 Form 10-K. Filed 2001-04-02; fiscal year ended December 31, 2000. Source: https://www.sec.gov/Archives/edgar/data/1024401/000102440101500010/ene10-k.txt The following passages are exact excerpts of the filing (original line breaks retained), omitting unrelated rows. Dollar amounts in millions unless indicated. Read the original at the URL for full context. [Consolidated statement of comprehensive income, F-4] (In millions) 2000 1999 1998 Net Income $ 979 $ 893 $ 703 [Consolidated balance sheet, F-5, liabilities] (In millions, except shares) 2000 1999 Short-term debt 1,679 1,001 Long-Term Debt 8,550 7,151 Company-Obligated Preferred Securities of Subsidiaries 904 1,000 [Consolidated statement of cash flows, F-6] (In millions) 2000 1999 1998 Cash Flows From Operating Activities Net income $ 979 $ 893 $ 703 Depreciation, depletion and amortization 855 870 827 Impairment of long-lived assets (including equity investments) 326 441 - Changes in components of working capital 1,769 (1,000) (233) Net assets from price risk management activities (763) (395) 350 Merchant assets and investments: Realized gains on sales (104) (756) (628) Proceeds from sales 1,838 2,217 1,434 Additions and unrealized gains (1,295) (827) (721) Other operating activities 1,113 174 (97) Net Cash Provided by Operating Activities 4,779 1,228 1,640 Cash Flows From Investing Activities Capital expenditures (2,381) (2,363) (1,905) Net Cash Used in Investing Activities (4,264) (3,507) (3,965) [Management's discussion, liquidity and capital resources] Net cash provided by operating activities increased $3,551 million in 2000, primarily reflecting decreases in working capital, positive operating results and a receipt of cash associated with the assumption of a contractual obligation. [Note 15, Commitments] Firm Transportation Obligations. Enron has firm transportation agreements with various joint venture and other pipelines. Under these agreements, Enron must make specified minimum payments each month. At December 31, 2000, the estimated aggregate amounts of such required future payments were $91 million, $88 million, $89 million, $85 million and $77 million for 2001 through 2005, respectively, and $447 million for later years. Other Commitments. Enron leases property, operating facilities and equipment under various operating leases, certain of which contain renewal and purchase options and residual value guarantees. Future commitments related to these items at December 31, 2000 were $123 million, $98 million, $69 million, $66 million and $49 million for 2001 through 2005, respectively, and $359 million for later years. Guarantees under the leases total $556 million at December 31, 2000. Enron guarantees the performance of certain of its unconsolidated equity affiliates in connection with letters of credit issued on behalf of those entities. At December 31, 2000, a total of $264 million of such guarantees were outstanding, including $103 million on behalf of EOTT Energy Partners, L.P. (EOTT). In addition, Enron is a guarantor on certain liabilities of unconsolidated equity affiliates and other companies totaling approximately $1,863 million at December 31, 2000, including $538 million related to EOTT trade obligations. The EOTT letters of credit and guarantees of trade obligations are secured by the assets of EOTT. Enron has also guaranteed $386 million in lease obligations for which it has been indemnified by an "Investment Grade" company. Management does not consider it likely that Enron would be required to perform or otherwise incur any losses associated with the above guarantees. [Note 16, Related Party Transactions] In 2000 and 1999, Enron entered into transactions with limited partnerships (the Related Party) whose general partner's managing member is a senior officer of Enron. The limited partners of the Related Party are unrelated to Enron. Management believes that the terms of the transactions with the Related Party were reasonable compared to those which could have been negotiated with unrelated third parties. In 2000, Enron entered into transactions with the Related Party to hedge certain merchant investments and other assets. As part of the transactions, Enron (i) contributed to newly-formed entities (the Entities) assets valued at approximately $1.2 billion, including $150 million in Enron notes payable, 3.7 million restricted shares of outstanding Enron common stock and the right to receive up to 18.0 million shares of outstanding Enron common stock in March 2003 (subject to certain conditions) and (ii) transferred to the Entities assets valued at approximately $309 million, including a $50 million note payable and an investment in an entity that indirectly holds warrants convertible into common stock of an Enron equity method investee. In return, Enron received economic interests in the Entities, $309 million in notes receivable, of which $259 million is recorded at Enron's carryover basis of zero, and a special distribution from the Entities in the form of $1.2 billion in notes receivable, subject to changes in the principal for amounts payable by Enron in connection with the execution of additional derivative instruments. In 2000, Enron entered into derivative transactions with the Entities with a combined notional amount of approximately $2.1 billion to hedge certain merchant investments and other assets. Enron's notes receivable balance was reduced by $36 million as a result of premiums owed on derivative transactions. Enron recognized revenues of approximately $500 million related to the subsequent change in the market value of these derivatives, which offset market value changes of certain merchant investments and price risk management activities. In 2000, Enron sold a portion of its dark fiber inventory to the Related Party in exchange for $30 million cash and a $70 million note receivable that was subsequently repaid. Enron recognized gross margin of $67 million on the sale.