Exelon 2014 Annual Report Download - page 44

Financial Results. The following consolidated financial results reflect the results of Exelon for the year ended December 31, 2014
compared to the same period in 2013. The 2014 financial results only include the operations of CENG on a fully consolidated basis
from the date Generation assumed operational control, April 1, 2014, through December 31, 2014. All amounts presented below are
before the impact of income taxes, except as noted.
The Years Ended December 31,
Favorable
(Unfavorable)
Variance
2014 2013
Generation (a) ComEd PECO BGE Other Exelon Exelon
Operating revenues ........................... $17,393 $4,564 $3,094 $3,165 $(787) $27,429 $24,888 $ 2,541
Purchased power and fuel expense ............. 9,925 1,177 1,261 1,417 (777) 13,003 10,724 (2,279)
Revenue net of purchased power and fuel
expense (b) ................................. 7,468 3,387 1,833 1,748 (10) 14,426 14,164 262
Other operating expenses
Operating and maintenance .................. 5,566 1,429 866 717 (10) 8,568 7,270 (1,298)
Depreciation and amortization ................ 967 687 236 371 53 2,314 2,153 (161)
Taxes other than income .................... 465 293 159 221 16 1,154 1,095 (59)
Total other operating expenses ........... 6,998 2,409 1,261 1,309 59 12,036 10,518 (1,518)
Equity in (losses) earnings of unconsolidated
affiliates ................................... (20) — — — — (20) 10 (30)
Gain (loss) on sales of assets .................. 437 2 — — (2) 437 13 424
Gain on consolidation and acquisition of
businesses ................................. 289 — — — — 289 — 289
Operating income (loss) ....................... 1,176 980 572 439 (71) 3,096 3,669 (573)
Other income and (deductions)
Interest expense, net ....................... (356) (321) (113) (106) (169) (1,065) (1,356) 291
Other, net ................................. 406 17 7 18 7 455 460 (5)
Total other income and (deductions) ....... 50 (304) (106) (88) (162) (610) (896) 286
Income (loss) before income taxes .............. 1,226 676 466 351 (233) 2,486 2,773 (287)
Income taxes ................................. 207 268 114 140 (63) 666 1,044 378
Net income (loss) ............................. 1,019 408 352 211 (170) 1,820 1,729 91
Net income attributable to noncontrolling interests,
preferred security dividends and preference stock
dividends ................................... 184 — — 13 — 197 10 (187)
Net income (loss) attributable to common
shareholders ............................... $ 835 $ 408 $ 352 $ 198 $(170) $ 1,623 $ 1,719 $ (96)
(a) On April 1, 2014, Generation assumed operational control of CENG’s nuclear fleet. As a result, the 2014 financial results include CENG’s results of operations on a
fully consolidated basis from April 1, 2014 through December 31, 2014.
(b) The Registrants’ evaluate operating performance using the measure of revenue net of purchased power and fuel expense. The Registrants’ believe that revenue net
of purchased power and fuel expense is a useful measurement because it provides information that can be used to evaluate its operational performance. Revenue
net of purchased power and fuel expense is not a presentation defined under GAAP and may not be comparable to other companies’ presentations or deemed more
useful than the GAAP information provided elsewhere in this report.
Exelon’s net income attributable to common shareholders was $1,623 million for the year ended December 31, 2014 as compared to
$1,719 million for the year ended December 31, 2013, and diluted earnings per average common share were $1.88 for the year
ended December 31, 2014 as compared to $2.00 for the year ended December 31, 2013.
Operating revenue net of purchased power and fuel expense, which is a non-GAAP measure discussed below, increased by $262
million as compared to 2013. The year-over-year increase reflects the inclusion of CENG’s results beginning April 1, 2014 and was
primarily due to the following favorable factors:
• Increase of $815 million at Generation primarily due to the inclusion of CENG’s results beginning April 1, 2014 through
December 31, 2014, a decrease in fuel costs related to the cancellation of DOE spent nuclear fuel disposal fees, increased
40