ComEd 2013 Annual Report Download - page 198

Tabular reconciliation of unrecognized tax benefits
Thefollowingtable providesareconciliation ofExelon’s unrecognizedtaxbenefitsasofDecember 31,2013,2012 and2011:
Unrecognizedtaxbenefitsat January1,2013 .................................................................. $1,024
Increasesbasedon taxpositionsrelatedto 2013 ............................................................... 19
Changetopositionsthat onlyaffecttiming..................................................................... 649
Increasesbasedon taxpositionsprior to 2013 ................................................................. 493
Decreasesbasedon taxpositionsprior to 2013 ................................................................ (6)
Decreasesfromexpiration ofstatute oflimitations .............................................................. (4)
Unrecognizedtaxbenefitsat December 31,2013 ............................................................... $2,175
Unrecognizedtaxbenefitsat January1,2012 .................................................................. $ 807
Merger BalanceTransfer ................................................................................... 195
Increasesbasedon taxpositionsrelatedto 2012 ............................................................... 34
Changetopositionsthat onlyaffecttiming..................................................................... (88)
Increasesbasedon taxpositionsprior to 2012 ................................................................. 91
Decreasesbasedon taxpositionsprior to 2012 ................................................................ (6)
Decreasesrelatedto settlementswithtaxingauthorities ......................................................... (2)
Decreasesfromexpiration ofstatute oflimitations .............................................................. (7)
Unrecognizedtaxbenefitsat December 31,2012 ............................................................... $1,024
Unrecognizedtaxbenefitsat January1,2011 .................................................................. $ 787
Increasesbasedon taxpositionsrelatedto 2011 ............................................................... 5
Changetopositionsthat onlyaffecttiming..................................................................... 21
Decreasesbasedon taxpositionsprior to 2011 ................................................................ (3)
Decreasefromexpiration ofstatute oflimitations ............................................................... (3)
Unrecognizedtaxbenefitsat December 31,2011 ............................................................... $ 807
IncludedinExelon’s unrecognizedtaxbenefitsbalanceatDecember 31,2013 and2012 are approximately$1,387 million and$730
million,respectively, oftaxpositionsfor which the ultimate taxbenefitis highlycertain,but for which there is uncertaintyabout the
timingofsuch benefits. Thedisallowanceofsuch positionswouldnot materiallyaffectthe annual effectivetaxrate but would
accelerate thepayment ofcash to,or defer thereceipt ofthecash taxbenefitfrom, thetaxingauthorityto an earlier or later period
respectively.
Unrecognized tax benefits that if recognized would affect the effective tax rate
Exelon andGeneration have$788 million and $768 million,respectively, ofunrecognizedtaxbenefitsat December 31,2013 that,if
recognized, woulddecreasethee
ffectivetaxrate.Exelon andGeneration had$294 million and$263million,respectively, of
unrecognizedtaxbenefitsat December 31,2012 that,ifrecognized, woulddecreasetheeffectivetaxrate.
Reasonably possible that total amount of unrecognized tax benefits could significantly increase or decrease within 12
months after the reporting date
Nuclear Decommissioning Liabilities
AmerGen filedincometaxrefundclaims takingtheposition that nuclear decommissioningliabilitiesassumedaspart ofitsacquisition
ofnuclear power plantsare taken into account indeterminingthetaxbasis intheassetsitacquired. Theadditional basis results
primarilyinreducedcapital gainsor increasedcapital losseson thesale ofassetsin nonqualifieddecommissioningfunds and
increasedtaxdepreciation andamortization deductions. TheIRS disagreeswiththis position andhas disallowedtheclaims. In
November 2008, Generation receivedafinal determination fromthe Appeals division oftheIRS(IRSAppeals) disallowing
AmerGen’s refundclaims. Generation filedacomplaint intheUnitedStatesCourt ofFederal Claims on February20,2009to contest
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