ComEd 2006 Annual Report Download - page 255

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)
For the Year Ended December 31, 2005 Exelon Generation ComEd PECO
Plant basis differences ............................ $(4,291) $(861) $(1,891) $(1,361)
Stranded cost recovery ............................ (1,465) — — (1,465)
Unrealized losses (gains) on derivative financial
instruments ................................... 195 194 — (6)
Deferred pension and postretirement obligations ....... 396 (177) (281) 21
Emission allowances .............................. — (40) — —
Deferred debt refinancing costs ..................... (49) — (34) (15)
Excess of tax value over book value of impaired
assets (a) ...................................... 41 — — —
Decommissioning and decontamination obligations ..... 105 105 — (5)
Goodwill ........................................ 6 — — —
Other, net ....................................... 326 151 72 57
Deferred income tax liabilities (net) ...................... $(4,736) $(628) $(2,134) $(2,774)
Unamortized investment tax credits ..................... (262) (202) (43) (17)
Total deferred income tax liabilities (net) and unamortized
investment tax credits ............................... $(4,998) $(830) $(2,177) $(2,791)
(a) In 2006, includes write-downs of certain Enterprises investments and the impairment of the intangible asset related to the
synthetic fuel-producing facilities and, in 2005, includes the write-downs of certain Enterprises investments.
In accordance with regulatory treatment of certain temporary differences, Exelon, ComEd and
PECO have recorded net regulatory assets associated with deferred income taxes, pursuant to SFAS
No. 71 and SFAS No. 109, “Accounting for Income Taxes” (SFAS No. 109) as presented below:
For the Year Ended December 31,
2006 (a) 2005 (a)
ComEd ..................................................... $ 11 $ 8
PECO ...................................................... 790 781
Exelon ...................................................... $801 $789
(a) See Note 19—Supplemental Financial Information for further discussion of Exelon, ComEd and PECO’s regulatory assets
associated with deferred income taxes.
ComEd and PECO have certain tax returns that are under review at the audit or appeals level of
the Internal Revenue Service (IRS), and certain state authorities. These reviews by governmental
taxing authorities are not expected to have an adverse impact on the financial condition or results of
operations of Exelon, ComEd or PECO.
At December 31, 2006 and 2005, Exelon had recorded valuation allowances of $37 million and
$37 million, respectively, and Generation had recorded valuation allowances of approximately $33
million and $34 million, respectively, with respect to deferred taxes associated with separate company
state taxes.
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