ComEd 2015 Annual Report Download - page 134

Table of Contents
Generation’s ownership interests in Safe Harbor Water Power Corporation, Fore River and West Valley generating stations in 2014. Refer to Note 4
—Mergers, Acquisitions and Dispositions in the Combined Notes to Consolidated Financial Statements for additional information.
Gain on Consolidation and Acquisition of Businesses
. The decrease in gain on consolidation and acquisition of
businesses reflects the absence of a $261 million gain upon consolidation of CENG resulting from the difference in fair value of CENG’s net
assets as of April 1, 2014 and the equity method investment previously recorded on Generation’s and Exelon’s books and the settlement of pre-
existing transactions between Generation and CENG recorded in 2014, and the absence of a $28 million bargain-purchase gain related to the
Integrys acquisition recorded in 2014.
Interest Expense
The changes in interest expense for 2015 compared to 2014 and 2014 compared to 2013 consisted of the following:
Increase
(Decrease)
2015 vs. 2014
Increase
(Decrease)
2014 vs. 2013
Interest expense on long-term debt $ 53 $ 33
Interest expense on interest rate swaps 22 4
Interest expense on tax settlements (37) (21)
Other interest expense (29) (17)
Increase (decrease) in interest expense, net $ 9 $ (1)
Other, Net
. The decrease in Other, net primarily reflects the net decrease
in realized and unrealized gains related to the NDT fund investments of Generation’s Non-Regulatory Agreement Units as described in the table
below. Other, net also reflects $(22) million and $67 million for the year ended December 31, 2015 and 2014, respectively, related to the
contractual elimination of income tax expense associated with the NDT fund investments of the Regulatory Agreement Units. Refer to Note 15—
Asset Retirement Obligations of the Combined Notes to Consolidated Financial Statements for additional information regarding NDT fund
investments.
. The increase in Other, net primarily reflects $31 million of
favorable tax settlements related to Constellation’s pre-acquisition tax returns and the increased net realized and unrealized gains related to the
NDT fund investments of Generation’s Non-Regulatory Agreement Units compared to net realized and unrealized gains in 2013, as described in the
table below. Other, net also reflects $67 million and $122 million for the year ended December 31, 2014 and 2013, respectively, related to the
contractual elimination of income tax expense (benefit) associated with the NDT fund investments of the Regulatory Agreement Units. Refer to
Note 15—Asset Retirement Obligations of the Combined Notes to Consolidated Financial Statements for additional information regarding NDT fund
investments.
The following table provides unrealized and realized gains (losses) on the NDT fund investments of the Non-Regulatory Agreement Units
recognized in Other, net for 2015, 2014 and 2013:
2015 2014 2013
Net unrealized (losses) gains on decommissioning trust funds $(197) $134 $146
Net realized gains on sale of decommissioning trust funds $ 66 $ 77 $ 24
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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