Exelon 2015 Annual Report Download - page 248

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
The following table summarizes total incurred interest, capitalized interest and credits to AFUDC by year:
Exelon Generation ComEd PECO BGE
2015 Total incurred interest $ 1,170 $ 445 $ 336 $116 $113
Capitalized interest 79 79 — — —
Credits to AFUDC debt and equity 44 — 9 7 28
2014 Total incurred interest $ 1,144 $ 419 $ 323 $115 $118
Capitalized interest 63 63 — — —
Credits to AFUDC debt and equity 37 — 5 8 24
2013 Total incurred interest $ 1,423 $ 411 $ 584 $117 $129
Capitalized interest 54 54 — — —
Credits to AFUDC debt and equity 35 — 16 6 13
(a) On April 1, 2014, Generation assumed operational control of CENG’s nuclear fleet. As a result, the 2014 financial results include CENG’s financial position and results of
operations beginning April 1, 2014.
(b) Includes interest expense to affiliates.
Guarantees (Exelon, Generation, ComEd, PECO and BGE)
The Registrants recognize, at the inception of a guarantee, a liability for the fair market value of the obligations they have undertaken by
issuing the guarantee, including the ongoing obligation to perform over the term of the guarantee in the event that the specified triggering events or
conditions occur.
The liability that is initially recognized at the inception of the guarantee is reduced as the Registrants are released from risk under the
guarantee. Depending on the nature of the guarantee, the release from risk of the Registrant may be recognized only upon the expiration or
settlement of the guarantee or by a systematic and rational amortization method over the term of the guarantee. See Note 23—Commitments and
Contingencies for additional information.
Asset Impairments (Exelon, Generation, ComEd, PECO and BGE)
Long-Lived Assets. The Registrants evaluate the carrying value of their long-lived assets or asset groups, excluding goodwill, when
circumstances indicate the carrying value of those assets may not be recoverable. Indicators of impairment may include a deteriorating business
climate, including, but not limited to, declines in energy prices, condition of the asset, specific regulatory disallowance, or plans to dispose of a
long-lived asset significantly before the end of its useful life. The Registrants determine if long-lived assets and asset groups are impaired by
comparing the undiscounted expected future cash flows to the carrying value. When the undiscounted cash flow analysis indicates a long-lived
asset or asset group is not recoverable, the amount of the impairment loss is determined by measuring the excess of the carrying amount of the
long-lived asset or asset group over its fair value less costs to sell.
Cash flows for long-lived assets and asset groups are determined at the lowest level for which identifiable cash flows are largely independent
of the cash flows of other assets and liabilities. The cash flows from the generating units are generally evaluated at a regional portfolio level along
with cash flows generated from the customer supply and risk management activities, including cash flows from related intangible assets and
liabilities on the balance sheet. In certain cases, generating assets
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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