ComEd 2013 Annual Report Download - page 199

this determination.Duringthefirstandsecondquartersof2013,AmerGen andtheDOJ completedandfiledcross motionsfor
summaryjudgment.OnSeptember 17, 2013,theCourt grantedthegovernment’s motion denyingAmerGen’s claims for refund.
Exelon is expectingto appeal this decision to theUnitedStatesCourt ofAppealsfor theFederal Circuitduring2014.
Due to thepossibilityoffinal resolution through an appellate decision,Generation continuesto believethat itis reasonablypossible
that the total amount ofunrecognizedtaxbenefitswill significantlydecreaseinthenexttwelvemonths.
Settlement of Income Tax Audits and Litigation
AsofDecember 31,2013,Exelon andGeneration hadapproximately$256 million ofother federal andstate unrecognizedtax
benefitsthat could significantlyincreaseordecreasewithinthe12months after the reportingdate asaresult ofcompletingfederal
andstate auditsandexpectedstatute oflimitation expirationsthat if recognizedwoulddecreasetheeffectivetaxrate.InJanuary
2014, certainofthese unrecognizedtaxbenefitswere effectivelysettledandthuswill result inreducedtaxexpenseof$33 million at
Generation inthefirstquarter of2014.
See Other TaxMatters—LikeKind Exchangesection belowfor information regardingtheamount ofunrecognizedtaxbenefits
associatedwiththis matter that couldchangesignificantlywithinthenext12months.
Total amounts of interest and penalties recognized
Thefollowingtable representsthe net interestreceivable (payable), includinginterest relatedto uncertaintaxpositionsreflectedin
theRegistrants’ ConsolidatedBalanceSheets. Prior to themerger legacy Constellation recordedinterest relatedto uncertaintax
positionsasataxandnot interest.
Net interest receivable (payable) as of
December 31,2013 ....................................................................................... $(349)
December 31,2012 ....................................................................................... 31
Thefollowingtable setsforththe net interestexpense,includinginterest relatedto uncertaintaxpositions, recognizedininterest
expense(income)inother incomeanddeductionsintheRegistrants’ ConsolidatedStatementsofOperations. TheRegistrantshave
not accruedanypenaltieswithrespecttouncertaintaxpositions. Prior to themerger legacy Constellation recordedinterest relatedto
uncertaintaxpositionsasataxandnot interest.
Net interest expense (income) for the years ended
December 31,2013 ........................................................................................ $391
December 31,2012 ........................................................................................ (1)
December 31,2011 ........................................................................................ (56)
Description of tax years that remain open to assessment by major jurisdiction
Taxpayer Open Years
Exelon (andpredecessors) andsubsidiariesconsolidatedFederal incometaxreturns .................. 1999-2012
Constellation andsubsidiariesconsolidatedFederal incometaxreturns .............................. 2009-March 2012
Exelon andsubsidiariesIllinois unitaryincometaxreturns ......................................... 2007-2012
Constellation combinedNewYorkcorporate incometaxreturns .................................... 2008-2012
Variousseparate companyPennsylvaniacorporate net incometaxreturns ........................... 2008-2012
BGE MarylandCorporate net incometaxreturns ................................................. 2004-2007, 2009-2012
Variousother (Non-BGE) MarylandCorporate net incometaxreturns................................ 2009-2012
Other Tax Matters
Like-Kind Exchange
Exelon,through itsComEd subsidiary, tookaposition on its1999 incometaxreturn to defer approximately$2.8 billion oftaxgainon
thesale ofComEd’s fossilgeneratingassets. Thegainwasdeferredbyreinvestingthe proceeds fromthesale inqualifying
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