Exelon 2014 Annual Report Download - page 252

Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Amounts included in the table below represent the severance liability recorded by Exelon:
Severance liability Exelon
Balance at December 31, 2012 ............................................................................. $111
Severance charges (a) ..................................................................................... 5
Stock compensation ...................................................................................... 1
Payments ............................................................................................... (64)
Balance at December 31, 2013 ............................................................................. $ 53
Payments ............................................................................................... (41)
Balance at December 31, 2014 ............................................................................. $ 12
(a) Includes salary continuance and health and welfare severance benefits. Amounts primarily represent benefits provided for under Exelon’s ongoing severance plan.
One-time termination benefits were not material for the years ended December 31, 2014 and December 31, 2013.
Substantially all cash payments under the plan are expected to be made by the end of 2016.
Ongoing Severance Plans
The Registrants provide severance, health and welfare benefits under Exelon’s ongoing severance benefit plans to terminated
employees in the normal course of business, which were not directly related to the merger with Constellation or with the integration
of CENG. These benefits are accrued for when the benefits are considered probable and can be reasonably estimated.
For the years ended December 31, 2014, 2013, and 2012, Exelon recorded severance costs of $7 million, $18 million, and $19
million, respectively, associated with these ongoing severance benefits within Operating and maintenance expense in their
Consolidated Statements of Operations and Comprehensive Income:
The severance liability balances associated with these ongoing severance benefits as of December 31, 2014 and 2013 are not
material.
18. Preferred and Preference Securities
At December 31, 2014 and 2013, Exelon was authorized to issue up to 100,000,000 shares of preferred securities, none of which
were outstanding.
Preferred and Preference Securities of Subsidiaries
At December 31, 2014 and 2013, ComEd prior preferred securities and ComEd cumulative preference securities consisted of
850,000 shares and 6,810,451 shares authorized, respectively, none of which were outstanding.
On May 1, 2013, PECO redeemed all of its outstanding preferred securities. PECO had $87 million of cumulative preferred securities
that were redeemable at its option at any time for the redemption price established when each series was issued. The redemption
premium was treated as a reduction to Net income to arrive at Net income attributable to common shareholders utilized in the
calculation of the earnings per share for Exelon.
At December 31, 2014 and 2013, BGE cumulative preference stock, $100 par value, consisted of 6,500,000 shares authorized and
the outstanding amounts set forth below. Shares of BGE preference stock have no voting power except for the following:
• The preference stock has one vote per share on any charter amendment which would create or authorize any shares of stock
ranking prior to or on a parity with the preference stock as to either dividends or distribution of assets, or which would
substantially adversely affect the contract rights, as expressly set forth in BGE’s charter, of the preference stock, each of which
requires the affirmative vote of two-thirds of all the shares of preference stock outstanding; and
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