ComEd 2015 Annual Report Download - page 295

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
The following table summarizes the acquisition-date fair value of the consideration transferred and the assets and liabilities assumed for the
Integrys acquisition by Generation:
Total consideration transferred $ 332
Identifiable assets acquired and liabilities assumed
Working capital assets $ 390
Mark-to-market derivative assets 184
Unamortized energy contract assets 115
Customer relationships 50
Working capital liabilities (196)
Mark-to-market derivative liabilities (57)
Unamortized energy contract liabilities (110)
Deferred tax liability (16)
Total net identifiable assets, at fair value $ 360
Bargain purchase gain (after-tax) $ 28
The after-tax bargain purchase gain of $28 million is primarily the result of IES executing additional contract volumes between the date the
acquisition agreement was signed and the closing of the transaction resulting in an increase in the fair value of the net assets acquired as of the
acquisition date. The after-tax gain is included within Gain on consolidation and acquisition of businesses in Exelon’s and Generation’s
Consolidated Statements of Operations and Comprehensive Income.
IES’s operating revenues and net loss included in Exelon’s and Generation’s Consolidated Statements of Operations and Comprehensive
Income for the period from November 1, 2014 to December 31, 2014 were $386 million and $(42) million, respectively. The net loss for the period
from November 1, 2014 to December 31, 2014 includes pre-tax unrealized losses on derivative contracts of $108 million and the bargain purchase
gain of $28 million. It is impracticable to determine the overall financial statement impact of IES for 2015 due to the integration of the business into
ongoing operations. For the years ended December 31, 2015 and 2014, Exelon and Generation incurred $5 million and $7 million, respectively, of
merger and integration related costs which are included within Operating and maintenance expense in Exelon’s and Generation’s Consolidated
Statements of Operations and Comprehensive Income.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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