ComEd 2013 Annual Report Download - page 196

Upstream Gas Property Asset-Based Lending Agreement
Generation hasafiveyear asset-basedlendingagreement associatedwithcertainupstreamgaspropertiesthat itowns. The
borrowingbasecommittedunder thefacilityis$110 million andcan increase to a total of$500 million if theassetssupport a higher
borrowingbaseandGeneration is able to obtainadditional commitmentsfromlenders. Thefacilitywasamendedandextended
through January2019. Borrowings under this facilityare securedbytheupstreamgasproperties, andthe lendersdo not have
recourseagainstExelon or Generation intheevent ofadefault.AsofDecember 31,2013, $77 million wasoutstandingunder the
facilitywithinterestpayable quarterly. Thefacilityincludesa provision that requirestheGeneration entitiesowningtheupstreamgas
propertiessubjecttotheagreement to maintainacurrent ratioofone-to-one.AsofDecember 31,2013,Generation wasin
compliancewiththis provision.
14. Income Taxes
Incometaxexpense(benefit)fromcontinuingoperationsiscomprisedofthefollowingcomponents:
For the Year Ended
December 31,
2013 2012 2011
Includedin operations:
Federal
Current .............................................................................. $ 744 $ 37$ 1
Deferred ............................................................................. 140701 1,200
Investment taxcreditamortization ........................................................ (15) (11)(12)
State
Current .............................................................................. 181(25) (3)
Deferred ............................................................................. (6) (75) 271
Total ................................................................................. $1,044 $627$1,457
Theeffectiveincometaxrate fromcontinuingoperationsvariesfromtheU.S. Federal statutoryrate principallydue to thefollowing:
For the Year Ended December 31, 2013 2012 2011
U.S. Federal statutoryrate ....................................................................... 35.0%35.0%35.0%
Increase(decrease)due to:
State incometaxes, net ofFederal incometaxbenefit............................................ 4.7 (3.6) 4.4
Qualifiednuclear decommissioningtrustfundincome............................................. 3.7 5.4 0.5
Taxexempt income......................................................................... (0.2)(0.2)(0.2)
Healthcare reformlegislation ................................................................ 0.10.2(0.2)
Amortization ofinvestment taxcredit,net deferredtaxes .......................................... (1.9) (1.1)(0.3)
Production taxcreditsandother credits ........................................................ (2.1)(2.2)(0.9)
Plant basis differences ...................................................................... (1.6) (2.4) (1.0)
Merger expenses(b) ........................................................................ — 2.4 —
Finesandpenalties......................................................................... — 2.6 —
Domestic production activitiesdeduction ....................................................... — — (0.3)
Other .................................................................................... (0.1)(1.1)(0.2)
Effectiveincometaxrate ........................................................................ 37.6% 34.9% 36.8%
(a)Exelon activityfor thetwelvemonths endedDecember 31,2012 includestheresultsofConstellation and BGE for March 12,2012—December 31,2012.
(b) Prior to thecloseofthemerger,theRegistrantsrecordedthe applicable taxeson merger transaction costsassumingthemerger wouldnot becompleted. Upon
closingofthemerger,theRegistrantsreversedsuch taxesfor thosemerger transaction coststhat were determinedto be non tax-deductible upon successful
completion ofamerger.
190