Exelon 2015 Annual Report Download - page 238

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
indicated above in the Index to Combined Notes to Consolidated Financial Statements and parenthetically next to each corresponding disclosure.
When appropriate, Exelon, Generation, ComEd, PECO and BGE are named specifically for their related activities and disclosures.
Each of the Registrant’s Consolidated Financial Statements includes the accounts of its subsidiaries. All intercompany transactions have
been eliminated. As a result of the Registrants’ 2014 divestiture of certain unconsolidated affiliates considered integral to their operations and the
consolidation of CENG during 2014, all Equity in earnings (losses) from unconsolidated affiliates have been presented below Income taxes in the
Registrants’ Consolidated Statements of Operations and Comprehensive Income starting in the first quarter of 2015.
Through its business services subsidiary, BSC, Exelon provides its subsidiaries with a variety of support services at cost, including legal,
human resources, financial, information technology and supply management services. The costs of BSC, including support services, are directly
charged or allocated to the applicable subsidiaries using a cost-causative allocation method. Corporate governance-type costs that cannot be
directly assigned are allocated based on a Modified Massachusetts Formula, which is a method that utilizes a combination of gross revenues,
total assets and direct labor costs for the allocation base. The results of Exelon’s corporate operations are presented as “Other” within the
consolidated financial statements and include intercompany eliminations unless otherwise disclosed.
Exelon owns 100% of all of its significant consolidated subsidiaries, either directly or indirectly, except for ComEd, of which Exelon owns
more than 99%, and BGE, of which Exelon owns 100% of the common stock but none of BGE’s preference stock. Exelon owned none of PECO’s
preferred securities, which PECO redeemed in 2013. Exelon has reflected the third-party interests in ComEd, which totaled less than $1 million at
December 31, 2015 and December 31, 2014, as equity, PECO’s preferred securities as preferred securities of subsidiary through their redemption
in 2013, and BGE’s preference stock as BGE preference stock not subject to mandatory redemption in its consolidated financial statements. BGE
is subject to some ring-fencing measures established by order of the MDPSC. As part of this arrangement, BGE common stock is held directly by
RF Holdco LLC, which is an indirect subsidiary of Exelon. GSS Holdings (BGE Utility), an unrelated party, holds a nominal non-economic interest
in RF Holdco LLC with limited voting rights on specified matters.
Generation owns 100% of all of its significant consolidated subsidiaries, either directly or indirectly, except for certain Exelon Wind projects,
of which Generation holds a majority interest of 99% for certain periods of time, and CENG, of which Generation holds a 50.01% interest. The
remaining interests are included in noncontrolling interest on Exelon’s and Generation’s Consolidated Balance Sheets. See Note 2—Variable
Interest Entities for further discussion of Exelon’s and Generation’s VIEs and the reversionary interests of the noncontrolling members for these
certain subsidiaries.
ComEd owns 100% of all of its significant consolidated subsidiaries, either directly or indirectly, except for RITELine Illinois, LLC, of which
ComEd owns 75% and an additional 12.5% is indirectly owned by Exelon. Exelon and ComEd have reflected the third-party interests of 12.5% and
25%, respectively, in RITELine Illinois, LLC, which both totaled less than $1 million at December 31, 2015 and December 31, 2014, as equity.
Exelon consolidates the accounts of entities in which Exelon has a controlling financial interest, after the elimination of intercompany
transactions. A controlling financial interest is evidenced by either a voting interest greater than 50% in which Exelon can exercise control over the
operations and
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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