ComEd 2006 Annual Report Download - page 243

Exelon Corporation and Subsidiary Companies
Exelon Generation Company, LLC and Subsidiary Companies
Commonwealth Edison Company and Subsidiary Companies
PECO Energy Company and Subsidiary Companies
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
The amounts of net unrealized holding gains that were included in Exelon’s regulatory liabilities or
accumulated other comprehensive income during the period totaled $567 million, $132 million, and
$293 million for the years ended December 31, 2006, 2005 and 2004, respectively. The amounts of net
unrealized holding gains that were included in Generation’s noncurrent payables to affiliates or
accumulated other comprehensive income during the period totaled $567 million, $132 million, and
$293 million for the years ended December 31, 2006, 2005 and 2004, respectively.
10. Severance Accounting (Exelon, Generation, ComEd and PECO)
The Registrants provide severance and health and welfare benefits to terminated employees
pursuant to pre-existing severance plans primarily based upon each individual employee’s years of
service and compensation level. The Registrants account for their ongoing severance plans in
accordance with SFAS No. 112 and SFAS No. 88 and accrue amounts associated with severance
benefits that are considered probable and that can be reasonably estimated.
Following the termination of the proposed Merger, Exelon evaluated its organizational structure
and resource needs on a standalone basis (see Note 2—Acquisitions and Dispositions for further
information on the Merger termination). As a result of that evaluation, management concluded that
certain positions will be eliminated. Therefore, Exelon recorded $29 million of severance charges in
2006.
During 2006, ComEd recorded a regulatory asset associated with previously incurred severance
costs that ComEd was granted recovery of in the December 20, 2006 ICC order. See Note 4—
Regulatory Issues and Note 18—Commitments and Contingencies.
The following tables present total salary continuance severance costs (benefits), recorded as an
operating and maintenance expense, during 2006, 2005 and 2004:
Salary Continuance Severance Exelon Generation ComEd PECO Other (a)
Expense recorded—2006 ................ $21 $6
(b) $— $2 $13(c)
Expense (income) recorded—2005 ........ (14)(d) (e) (4)(d) (e) (9)(d) 1 (2)(d)
Expense recorded—2004 ................ 32 2 10 3 17
(a) Other includes corporate operations, shared service entities, including BSC, Enterprises and investments in synthetic fuel-
producing facilities.
(b) Does not include $2 million of severance related to stock-based compensation.
(c) Does not include $4 million of severance related to stock-based compensation and $3 million of severance related to SFAS
88.
(d) Represents a reduction in previously recorded severance reserves.
(e) Excludes severance charges of $5 million related to Salem, of which Generation owns 42.59% and which is operated by
PSEG Nuclear, LLC (PSEG Nuclear).
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