Exelon 2014 Annual Report Download - page 81

Year Ended December 31, 2013 Compared to Year Ended December 31, 2012. The year-over-year change in Gain (loss) on sales
of assets primarily reflects an $8 million gain recorded on the sale of Maryland Clean Coal in 2013.
Gain on Consolidation and Acquisition of Businesses
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013. The increase in Gain on consolidation and
acquisition of businesses is primarily related to a $261 million gain upon consolidation of CENG resulting from the difference in fair
value of CENG’s net assets as of April 1, 2014 and the equity method investment previously recorded on Generation’s and Exelon’s
books and the settlement of pre-existing transactions between Generation and CENG, and a $28 million bargain-purchase gain
related to the lntegrys acquisition.
Interest Expense
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013. Interest expense for the year ended December 31,
2014 compared to the same period in 2013 remained relatively level.
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012. The increase in interest expense is primarily due to
the increase in long-term debt as a result of the merger and increased project financing.
Other, Net
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013. The increase in Other, net primarily reflects $31
million of favorable tax settlements related to Constellation’s pre-acquisition 2009-2012 tax returns and the net increase in realized
and unrealized gains related to the NDT funds of Generation’s Non-Regulatory Agreement Units as described in the table
below. Other, net also reflects $67 million and $122 million for the year ended December 31, 2014 and 2013, respectively, related to
the contractual elimination of income tax expense associated with the NDT funds of the Regulatory Agreement Units. Refer to Note
15—Asset Retirement Obligations of the Combined Notes to Consolidated Financial Statements for additional information regarding
NDT funds.
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012. The increase in Other, net primarily reflects $85
million of credit facility termination fees recorded in 2012 and increased net realized and unrealized gains related to the NDT funds of
Generation’s Non-Regulatory Agreement Units compared to net realized and unrealized gains in 2012, as described in the table
below. Other, net also reflects $122 million and $117 million for the year ended December 31, 2013 and 2012, respectively, related
to the contractual elimination of income tax expense (benefit) associated with the NDT funds of the Regulatory Agreement Units.
Refer to Note 15—Asset Retirement Obligations of the Combined Notes to Consolidated Financial Statements for additional
information regarding NDT funds.
The following table provides unrealized and realized gains (losses) on the NDT funds of the Non-Regulatory Agreement Units
recognized in Other, net for 2014, 2013 and 2012:
2014 2013 2012
Net unrealized gains on decommissioning trust funds ............................................... $134 $146 $105
Net realized gains on sale of decommissioning trust funds ........................................... $ 77 $ 24 $ 51
Effective Income Tax Rate.
Generation’s effective income tax rates for the years ended December 31, 2014, 2013 and 2012 were 16.9%, 36.7% and 47.3%,
respectively. See Note 14—Income Taxes of the Combined Notes to Consolidated Financial Statements for additional information
regarding the components of the effective income tax rates.
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