Exelon 2005 Annual Report Download - page 31

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Discussion of Financial Results – ComEd
Results of Operations – ComEd
2005 2004
Favorable
(unfavorable)
variance
Operating revenues $6,264 $5,803 $ 461
Operating expenses
Purchased power 3,520 2,588 (932)
Operating and maintenance 833 897 64
Impairment of goodwill 1,207 – (1,207)
Depreciation and amortization 413 410 (3)
Taxes other than income 303 291 (12)
Total operating expense 6,276 4,186 (2,090)
Operating income (loss) (12) 1,617 (1,629)
Other income and deductions
Interest expense (295) (369) 74
Equity in losses of unconsolidated affiliates (14) (19) 5
Net loss on extinguishment of long-term debt – (130) 130
Other, net 8 34 (26)
Total other income and deductions (301) (484) 183
Income (loss) before income taxes and cumulative effect of a change in accounting
principle (313) 1,133 (1,446)
Income taxes 363 457 94
Income (loss) before cumulative effect of a change in accounting principles (676) 676 (1,352)
Cumulative effect of change in accounting principle (9) — (9)
Net income (loss) $ (685) $ 676 $(1,361)
ComEd’s net loss in 2005 was driven by the impairment of goodwill and higher purchased power expense, partially offset by
higher operating revenues due to favorable weather and due to the impacts of a 2004 charge associated with the accelerated
retirement of long-term debt and lower interest expense.
EXELON CORPORATION AND SUBSIDIARY COMPANIES 29