ComEd 2006 Annual Report Download - page 253

Exelon Corporation and Subsidiary Companies
Exelon Generation Company, LLC and Subsidiary Companies
Commonwealth Edison Company and Subsidiary Companies
PECO Energy Company and Subsidiary Companies
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
The effective income tax rate from continuing operations varies from the U.S. Federal statutory
rate principally due to the following:
For the Year Ended December 31, 2006 Exelon (b)(c) Generation ComEd (c) PECO
U.S. Federal statutory rate ............................. 35.0% 35.0% 35.0% 35.0%
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit . . . 4.0 4.2 16.2 (1.9)
Nondeductible goodwill impairment charge ............ 9.7 — 81.6 —
Synthetic fuel-producing facilities credit ............... (3.6) — — —
Qualified nuclear decommissioning trust fund income . . . 0.5 0.6 — —
Manufacturer’s deduction .......................... (0.7) (0.9) — —
Tax exempt income ............................... (0.4) (0.5) — —
Nontaxable postretirement benefits .................. (0.4) (0.2) (0.8) (0.2)
Amortization of investment tax credit ................. (0.4) (0.2) (0.9) (0.4)
Investment tax credit charge (refund) (a) ............... (0.1) 0.4 — (2.1)
Research and development credit charge (refund) (a) .... (0.1) 0.4 — (2.1)
Amortization of regulatory asset ..................... 0.2 — 1.9 —
Plant basis differences ............................ 0.3 — — 0.6
Other .......................................... (0.9) (0.6) 0.6 0.1
Effective income tax rate .............................. 43.1% 38.2% 133.6% 29.0%
For the Year Ended December 31, 2005 Exelon (b)(c) Generation ComEd (c) PECO
U.S. Federal statutory rate ............................. 35.0% 35.0% 35.0% 35.0%
Increase (decrease) due to:
State income taxes, net of Federal income tax benefit . . . 5.8 4.7 (13.6) (0.9)
Nondeductible goodwill impairment charge ............ 22.3 — (135.0) —
Synthetic fuel-producing facilities credit ............... (12.6) — — —
Qualified nuclear decommissioning trust fund income . . . 0.8 0.9 — —
Manufacturer’s deduction .......................... (0.8) (0.8) — —
Tax exempt income ............................... (0.6) (0.6) — —
Nontaxable postretirement benefits .................. (0.6) (0.3) 1.0 (0.3)
Amortization of investment tax credit ................. (0.5) (0.2) 1.0 (0.3)
Amortization of regulatory asset ..................... 0.3 — (2.1) —
Plant basis differences ............................ — — (0.4) (1.1)
Other .......................................... 0.7 0.3 (1.9) (0.2)
Effective income tax rate .............................. 49.8% 39.0% (116.0)% 32.2%
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