Exelon 2006 Annual Report Download - page 33

Download and view the complete annual report

Please find page 33 of the 2006 Exelon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 46

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46

Discussion of Financial Results – Exelon
(continued)
Discontinued Operations. On January 31, 2005, subsidiaries of Generation completed a series of transactions that resulted in
Generation’s sale of its investment in Sithe. In addition, Exelon has sold or wound down substantially all components of
Enterprises. Accordingly, the results of operations and any gain or loss on the sale of these entities have been presented as
discontinued operations within Exelon’s (for Sithe Energies, Inc. (Sithe) and Exelon Enterprises Company, LLC (Enterprises))
and Generation’s (for Sithe) Consolidated Statements of Operations and Comprehensive Income. See Notes 2 and 3 of the
Combined Notes to Consolidated Financial Statements within Exelon’s 2006 Form 10-K for further information regarding the
presentation of Sithe and certain Enterprises businesses as discontinued operations.
The income from discontinued operations decreased by $12 million for 2006 compared to 2005 primarily due to the gain on the
sale of Sithe in 2005 partially offset by an adjustment to the gain on the sale of Sithe in 2006 as a result of the expiration of
certain tax indemnifications.
Cumulative Effect of Changes in Accounting Principles. The cumulative effect of changes in accounting principles reflects the
impact of adopting FIN 47 as of December 31, 2005. See Note 13 of the Combined Notes to Consolidated Financial Statements
within Exelon’s 2006 Form 10-K for further discussion of the adoption of FIN 47.
EXELON CORPORATION AND SUBSIDIARY COMPANIES 31