Exelon 2014 Annual Report Download - page 102

The following table provides a summary of the major items affecting Exelon’s cash flows from operations for the years ended
December 31, 2014, 2013 and 2012:
2014 (d) 2013
2014 vs. 2013
Variance
2012
(c)
2013 vs. 2012
Variance
Net income ................................................... $1,820 $1,729 $ 91 1,171 $ 558
Add (subtract):
Non-cash operating activities (a) .............................. 5,884 4,159 1,725 5,588 (1,429)
Pension and non-pension postretirement benefit contributions ..... (617) (422) (195) (462) 40
Income taxes .............................................. (143) 883 (1,026) 544 339
Changes in working capital and other noncurrent assets and
liabilities (b) .............................................. (1,047) (185) (862) (731) 546
Option premiums paid, net ................................... 38 (36) 74 (114) 78
Counterparty collateral received (paid), net ..................... (1,478) 215 (1,693) 135 80
Net cash flows provided by operations ............................. $4,457 $6,343 $(1,886) $6,131 $ 212
(a) Represents depreciation, amortization, depletion and accretion, net fair value changes related to derivatives, deferred income taxes, provision for uncollectible
accounts, pension and non-pension postretirement benefit expense, equity in earnings and losses of unconsolidated affiliates and investments, decommissioning-
related items, stock compensation expense, impairment of long-lived assets, and other non-cash charges. See note 23 —Supplemental Financial Information for
further detail on non-cash operating activity.
(b) Changes in working capital and other noncurrent assets and liabilities exclude the changes in commercial paper, income taxes and the current portion of long-term
debt.
(c) Exelon’s 2012 activity includes the activity of Constellation from the merger effective date of March 12, 2012 through December 31, 2012.
(d) On April 1, 2014, Generation assumed operational control of CENG’s nuclear fleet. As a result, the 2014 activity includes CENG on a fully consolidated basis
beginning April 1, 2014.
Cash flows provided by operations for the year ended December 31, 2014, 2013 and 2012 by Registrant were as follows:
2014 2013 2012
Exelon (a)(b) .............................................................................. $4,457 $6,343 $6,131
Generation (a)(b) .......................................................................... 1,826 3,887 3,581
ComEd ................................................................................. 1,326 1,218 1,334
PECO .................................................................................. 712 747 878
BGE (b) ................................................................................. 740 561 485
(a) On April 1, 2014, Generation assumed operational control of CENG’s nuclear fleet. As a result, the 2014 activity includes CENG on a fully consolidated basis
beginning April 1, 2014.
(b) Exelon’s and Generation’s 2012 activity includes the activity of Constellation, and BGE in the case of Exelon, from the merger effective date of March 12, 2012
through December 31, 2012. BGE’s 2012 activity includes its activity for the twelve months ended December 31, 2012.
Changes in Exelon’s, Generation’s, ComEd’s, PECO’s and BGE’s cash flows from operations were generally consistent with
changes in each Registrant’s respective results of operations, as adjusted by changes in working capital in the normal course of
business, except as discussed below. In addition, significant operating cash flow impacts for the Registrants for 2014, 2013 and
2012 were as follows:
Generation
• Depending upon whether Generation is in a net mark-to-market liability or asset position, collateral may be required to be posted
with or collected from its counterparties. In addition, the collateral posting and collection requirements differ depending on
whether the transactions are on the exchange or in the OTC markets. During 2014, 2013 and 2012, Generation had net
collections (payments) receipts of counterparty cash collateral of $(1,507) million, $162 million and $95 million, respectively. Net
collections (payments) each year were primarily due to market conditions that resulted in changes to Generation’s net mark-to-
market position. In addition, in 2014 the exchanges increased initial margin rates, which required Generation to post higher
amounts of initial margin.
• During 2014, 2013 and 2012, Generation had net collections (payments) of approximately $38 million, $(36) million and $(114)
million, respectively, related to purchases and sales of options. The level of option activity in a given year may vary due to
several factors, including changes in market conditions as well as changes in hedging strategy.
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