Exelon 2014 Annual Report Download - page 189

Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Other Intangible Assets
Exelon, Generation and ComEd’s other intangible assets and liabilities, included in Unamortized energy contract assets and Other
long-term assets and liabilities in their Consolidated Balance Sheets, consisted of the following as of December 31, 2014:
Weighted
Average
Amortization
Years (h) Gross
Accumulated
Amortization Net
Estimated amortization expense
2015 2016 2017 2018 2019
Unamortized Energy Contracts (a)
Exelon Wind (b) ................................ 18.0 $ 224 $ (55) $169 $ 14 $ 14 $ 14 $ 14 $ 14
Antelope Valley (c) ............................. 25.0 190 (12) 178 88888
Constellation (d) ............................... 1.5 1,499 (1,451) 48 19 (31) (21) 11 8
CENG (e) ..................................... 1.7 (97) 29 (68) (20) (11) (15) (18) (15)
Integrys (d) .................................... 2.4 6 (5) 1 (8) 6 1 1 —
Customer Relationships
Constellation (d) ............................... 12.4 214 (58) 156 18 18 18 18 17
Integrys (d) .................................... 10.0 48 (1) 47 55555
Trade Names
Constellation (d) ............................... 10.0 243 (79) 164 23 23 23 23 23
Chicago settlement—1999 agreement (f) ............... 21.8 100 (79) 21 33444
Chicago settlement—2003 agreement (g) .............. 17.9 62 (40) 22 44333
Total intangible assets ............................. $2,489 $(1,751) $738 $ 66 $ 39 $ 40 $ 69 $ 67
(a) Includes unamortized energy contract assets and liabilities on Exelon’s Consolidated Balance Sheets. Excludes $26 million of other miscellaneous unamortized
energy contracts that have been acquired at various points in time. The estimated amortization for these miscellaneous unamortized energy contracts is $4 million,
$3 million, $0 million, $2 million and $2 million for 2015, 2016, 2017, 2018 and 2019, respectively.
(b) In December 2010, Generation acquired all of the equity interests of John Deere Renewables, LLC (later named Exelon Wind), adding 735MWs of installed,
operating wind capacity located in eight states.
(c) In September 2011, Generation acquired all of the interest in Antelope Valley Solar Ranch One, a 230 MW solar project under development in northern Los Angeles
County, CA from First Solar, Inc.
(d) See Note 4—Mergers, Acquisitions, and Dispositions for further information on these acquisitions.
(e) See Note 5—Investment in Constellation Energy Nuclear Group, LLC for additional information.
(f) In March 1999, ComEd entered into a settlement agreement with the City of Chicago associated with ComEd’s franchise agreement. Under the terms of the
settlement, ComEd agreed to make payments to the City of Chicago each year from 1999 to 2002. The intangible asset recognized as a result of these payments is
being amortized ratably over the remaining term of the franchise agreement, which ends in 2020.
(g) In February 2003, ComEd entered into separate agreements with the City of Chicago and with Midwest Generation, LLC (Midwest Generation). Under the terms of
the settlement agreement with the City of Chicago, ComEd agreed to pay the City of Chicago a total of $60 million over a ten-year period, beginning in 2003. The
intangible asset recognized as a result of the settlement agreement is being amortized ratably over the remaining term of the City of Chicago franchise agreement,
which ends in 2020. As required by the settlement, ComEd also made a payment of $2 million to a third-party on the City of Chicago’s behalf. Under the terms of the
agreement with Midwest Generation, ComEd received payments of $32 million from Midwest Generation to relieve Midwest Generation’s obligation under the 1999
fossil sale agreement with ComEd to build the generation facility in the City of Chicago. The payments received by ComEd, which have been recorded in Other
deferred credits and other liabilities, and other long-term liabilities on Exelon’s Consolidated Balance Sheets are being recognized ratably (approximately $2 million
annually) as an offset to amortization expense over the remaining term of the franchise agreement.
(h) Weighted-average amortization period was calculated at the date of a) acquisition for acquired assets or b) settlement agreement.
The following table summarizes the amortization expense related to intangible assets and liabilities for each of the years ended
December 31, 2014, 2013 and 2012:
For the Year Ended
December 31,
2014 (a) ....................................................................................... $ 179
2013 (a) ....................................................................................... 478
2012 (a) ....................................................................................... 1,150
(a) Amortization of unamortized energy contracts totaling $135 million, $430 million and $1,110 million for the years ended December 31, 2014, 2013 and 2012,
respectively, was recorded in Purchase power and fuel expense or Operating revenues within Exelon’s Consolidated Statement of Operations and Comprehensive
Income.
185