ComEd 2015 Annual Report Download - page 140

Table of Contents
Depreciation and Amortization Expense
The changes in Depreciation and amortization 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
Depreciation expense $ 43 $ 46
Amortization regulatory assets (28) (21)
Other 5 (7)
Increase in depreciation and amortization expense $ 20 $ 18
(a) Depreciation expense increased due to ongoing capital expenditure during the years ended December 31, 2015 and 2014.
(b) For the years ended December 31, 2015 and 2014, primarily relates to a decrease in MGP regulatory asset amortization and ComEd’s severance regulatory assets fully amortizing
during 2014.
Taxes Other Than Income
Taxes other than income, which can vary year to year, include municipal and state utility taxes, real estate taxes, and payroll taxes. Taxes
other than income remained relatively consistent for the year ended December 31, 2015, compared to the same period in 2014, and for the year
ended December 31, 2014, compared to the same period in 2013.
Interest Expense, Net
The changes in Interest expense, net, for the year ended 2015 compared to the same period in 2014, and for the year ended 2014 compared
to the same period in 2013, consisted of the following:
Increase
(Decrease)
2015 vs. 2014
Increase
(Decrease)
2014 vs. 2013
Interest expense related to uncertain tax positions $ 2 $ (275)
Interest expense on debt (including financing trusts) 13 16
Other (4) 1
Increase (decrease) in interest expense, net $ 11 $ (258)
(a) The reduction in interest expense in 2014 from 2013 is primarily attributable to the remeasurement of Exelon’s like-kind exchange tax position recorded in the first quarter of 2013.
See Note 15—Income Taxes of the Combined Notes to Consolidated Financial Statements for additional information.
(b) Primarily reflects an increase in interest expense due to the issuance of First Mortgage Bonds for the years ended December 31, 2015 and 2014. See Note 14—Debt and Credit
Agreements of the Combined Notes to Consolidated Financial Statements for additional information on ComEd’s debt obligations.
Effective Income Tax Rate
ComEd’s effective income tax rates for the years ended December 31, 2015, 2014 and 2013, were 39.7%, 39.6% and 37.9%, respectively.
See Note 15—Income Taxes of the Combined Notes to Consolidated Financial Statements for additional information regarding the components of
the effective income tax rates.
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(a)
(b)
(a)
(b)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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