Earnings Release Highlights
CHICAGO--(BUSINESS WIRE)-- Exelon Corporation (Nasdaq: EXC) today reported its financial results for the third quarter of 2021.
“We achieved several critical milestones during the third quarter, starting with passage of landmark clean energy legislation in Illinois that preserves our nuclear fleet and puts the state on a path to zero emissions by 2045,” said Chris Crane, president and CEO of Exelon. “We also remain on track to complete the separation of our utility and competitive generation businesses in the first quarter of next year, having recently named executive leadership, secured approval from the Federal Energy Regulatory Commission and completed the acquisition of EDF’s stake in three of our nuclear plants. We continue to live our values by launching a $36 millionRacial Equity Capital Fund to help minority-owned businesses in our communities finance their growth and establishing a $3 million scholarship program for local students attending Historically Black Colleges and Universities.”
“Adjusted (non-GAAP) Operating Earnings of $1.09 per share in the third quarter was $0.05 ahead of the same period last year, driven in part by rate adjustments resulting from our continued investments at the utilities to improve reliability and service for customers,” said Joseph Nigro, senior executive vice president and CFO of Exelon. “Our ongoing capital investments in technology and infrastructure continue to drive strong financial and operational results across our utilities, with each of our electric and gas distribution companies achieving top 10 percent rankings for outage frequency and high marks for customer satisfaction relative to peers. Our Generation fleet also continued to perform at a high level, with nuclear achieving a capacity factor of 96 percent and the Power fleet at a 99.4 percent dispatch match and 95.8 percent wind/solar energy capture rate. Based on our results to date, we are narrowing our 2021 earnings per share guidance range to $2.70 to $2.90 per share from $2.60 to $3.00 per share.”
Third Quarter 2021
Exelon's GAAP Net Income for the third quarter of 2021 increased to $1.23 per share from $0.51 GAAP Net Income per share in the third quarter of 2020. Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 increased to $1.09 per share from $1.04 per share in the third quarter of 2020. For the reconciliations of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, refer to the tables beginning on page 6.
Adjusted (non-GAAP) Operating Earnings in the third quarter of 2021 primarily reflect:
Operating Company Results1
ComEd
ComEd's third quarter of 2021 GAAP Net Income increased to $220 million from a GAAP Net Income of $196 million in the third quarter of 2020. ComEd's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 increased to $224 million from $197 million in the third quarter of 2020, primarily due to higher electric distribution earnings from higher rate base and higher allowed ROE due to an increase in treasury rates. Due to revenue decoupling, ComEd's distribution earnings are not affected by actual weather or customer usage patterns.
___________
1Exelon’s five business units include ComEd, which consists of electricity transmission and distribution operations in northern Illinois; PECO, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in southeastern Pennsylvania; BGE, which consists of electricity transmission and distribution operations and retail natural gas distribution operations in central Maryland; PHI, which consists of electricity transmission and distribution operations in the District of Columbia and portions of Maryland, Delaware, and New Jersey and retail natural gas distribution operations in northern Delaware; and Generation, which consists of owned and contracted electric generating facilities and wholesale and retail customer supply of electric and natural gas products and services, including renewable energy products and risk management services. |
PECO
PECO’s third quarter of 2021 GAAP Net Income decreased to $111 million from $138 million in the third quarter of 2020. PECO's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 decreased to $114 million from $141 million in the third quarter of 2020, primarily due to an increase in storm cost activity, net of tax repair deductions.
BGE
BGE’s third quarter of 2021 GAAP Net Income decreased to $36 million from $53 million in the third quarter of 2020. BGE's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 decreased to $40 million from $54 million in the third quarter of 2020. The decrease includes the impacts of higher depreciation and amortization expense partially offset by the favorable impacts of the multi-year plan. Due to revenue decoupling, BGE's distribution earnings are not affected by actual weather or customer usage patterns.
PHI
PHI’s third quarter of 2021 GAAP Net Income increased to $266 million from $216 million in the third quarter of 2020. PHI’s Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 increased to $272 million from $220 million in the third quarter of 2020, primarily due to distribution rate increases at DPL and Pepco. Due to revenue decoupling, PHI's distribution earnings related to Pepco Maryland, DPL Maryland, Pepco District of Columbia, and ACE are not affected by actual weather or customer usage patterns.
Generation
Generation's third quarter of 2021 GAAP Net Income increased to $607 million from $49 million in the third quarter of 2020. Generation's Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 decreased to $427 million from $456 million in the third quarter of 2020, primarily due to higher net unrealized and realized losses on equity investments, lower capacity revenues and increased nuclear outage days, partially offset by increased revenue from ZECs in New York and higher realized gains on NDT funds.
As of Sept. 30, 2021, the percentage of expected generation hedged is 96%-99% for the remainder of 2021.
Recent Developments and Third Quarter Highlights
GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation
Adjusted (non-GAAP) Operating Earnings for the third quarter of 2021 do not include the following items (after tax) that were included in reported GAAP Net Income:
(in millions) | Exelon Earnings per Diluted Share | Exelon | ComEd | PECO | BGE | PHI | Generation | ||||||||||||||
2021 GAAP Net Income (Loss) | $ | 1.23 |
| $ | 1,203 |
| $ | 220 |
| $ | 111 |
| $ | 36 |
| $ | 266 |
| $ | 607 |
|
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $192 and $190, respectively) | (0.57 | ) | (559 | ) | — |
| — |
| — |
| — |
| (565 | ) | |||||||
Unrealized Losses Related to NDT Fund Investments (net of taxes of $70) | 0.06 |
| 55 |
| — |
| — |
| — |
| — |
| 55 |
| |||||||
Asset Impairments (net of taxes of $11) | 0.03 |
| 33 |
| — |
| — |
| — |
| — |
| 33 |
| |||||||
Plant Retirements and Divestitures (net of taxes of $71) | 0.22 |
| 211 |
| — |
| — |
| — |
| — |
| 211 |
| |||||||
Cost Management Program (net of taxes of $1) | 0.01 |
| 6 |
| — |
| 1 |
| 1 |
| 1 |
| 3 |
| |||||||
Change in Environmental Liabilities (net of taxes of $1) | — |
| 4 |
| — |
| — |
| — |
| — |
| 4 |
| |||||||
COVID-19 Direct Costs (net of taxes of $1, $0, $0, $0, and $1, respectively) | 0.01 |
| 7 |
| — |
| 1 |
| 1 |
| 1 |
| 4 |
| |||||||
Asset Retirement Obligation (net of taxes of $12, $1, and $13, respectively) | (0.04 | ) | (35 | ) | — |
| — |
| — |
| 2 |
| (37 | ) | |||||||
Acquisition Related Costs (net of taxes of $2) | 0.01 |
| 7 |
| — |
| — |
| — |
| — |
| 7 |
| |||||||
ERP System Implementation Costs (net of taxes of $1) | — |
| 4 |
| — |
| — |
| — |
| — |
| 4 |
| |||||||
Planned Separation Costs (net of taxes of $10, $2, $1, $1, $1, and $4, respectively) | 0.03 |
| 27 |
| 4 |
| 2 |
| 2 |
| 3 |
| 12 |
| |||||||
Costs Related to Suspension of Contractual Offset (net of taxes of $33) | 0.11 |
| 107 |
| — |
| — |
| — |
| — |
| 107 |
| |||||||
Income Tax-Related Adjustments (entire amount represents tax expense) | 0.02 |
| 19 |
| — |
| — |
| — |
| — |
| (2 | ) | |||||||
Noncontrolling Interests (net of taxes of $5) | (0.02 | ) | (17 | ) | — |
| — |
| — |
| — |
| (17 | ) | |||||||
2021 Adjusted (non-GAAP) Operating Earnings | $ | 1.09 |
| $ | 1,070 |
| $ | 224 |
| $ | 114 |
| $ | 40 |
| $ | 272 |
| $ | 427 |
|
Adjusted (non-GAAP) Operating Earnings for the third quarter of 2020 do not include the following items (after tax) that were included in reported GAAP Net Income:
(in millions) | Exelon Earnings per Diluted Share | Exelon | ComEd | PECO | BGE | PHI | Generation | ||||||||||||||
2020 GAAP Net Income (Loss) | $ | 0.51 |
| $ | 501 |
| $ | 196 |
| $ | 138 |
| $ | 53 |
| $ | 216 |
| $ | 49 |
|
Mark-to-Market Impact of Economic Hedging Activities (net of taxes of $62 and $64, respectively) | (0.19 | ) | (183 | ) | — |
| — |
| — |
| — |
| (192 | ) | |||||||
Unrealized Gains Related to NDT Fund Investments (net of taxes of $161) | (0.18 | ) | (172 | ) | — |
| — |
| — |
| — |
| (172 | ) | |||||||
Asset Impairments (net of taxes of $126) | 0.38 |
| 375 |
| — |
| — |
| — |
| — |
| 375 |
| |||||||
Plant Retirements and Divestitures (net of taxes of $111) | 0.34 |
| 329 |
| — |
| — |
| — |
| — |
| 329 |
| |||||||
Cost Management Program (net of taxes of $5, $0, $0, $1, and $4, respectively) | 0.02 |
| 15 |
| — |
| 1 |
| 1 |
| 1 |
| 12 |
| |||||||
Change in Environmental Liabilities (net of taxes of $6) | 0.02 |
| 17 |
| — |
| — |
| — |
| — |
| 17 |
| |||||||
COVID-19 Direct Costs (net of taxes of $3, $1, $0, and $2, respectively) | 0.01 |
| 10 |
| — |
| 2 |
| — |
| 1 |
| 7 |
| |||||||
Asset Retirement Obligation (net of taxes of $1) | — |
| 3 |
| — |
| — |
| — |
| 3 |
| — |
| |||||||
Acquisition Related Costs (net of taxes of $1) | — |
| 2 |
| — |
| — |
| — |
| — |
| 2 |
| |||||||
Income Tax-Related Adjustments (entire amount represents tax expense) | 0.06 |
| 62 |
| — |
| — |
| — |
| (1 | ) | (28 | ) | |||||||
Noncontrolling Interests (net of taxes of $12) | 0.06 |
| 57 |
| — |
| — |
| — |
| — |
| 57 |
| |||||||
2020 Adjusted (non-GAAP) Operating Earnings | $ | 1.04 |
| $ | 1,017 |
| $ | 197 |
| $ | 141 |
| $ | 54 |
| $ | 220 |
| $ | 456 |
|
Note: Amounts may not sum due to rounding.
Unless otherwise noted, the income tax impact of each reconciling item between GAAP Net Income and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates for each Registrant, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part. For all items except the unrealized gains and losses related to NDT fund investments, the marginal statutory income tax rates for 2021 and 2020 ranged from 25.0% to 29.0%. Under IRS regulations, NDT fund investment returns are taxed at different rates for investments if they are in qualified or non-qualified funds. The effective tax rates for the unrealized gains and losses related to NDT fund investments were 56.2% and 48.3% for the three months ended Sept. 30, 2021 and 2020, respectively.
Webcast Information
Exelon will discuss third quarter 2021 earnings in a conference call scheduled for today at 9 a.m. Central Time (10 a.m. Eastern Time). The webcast and associated materials can be accessed at www.exeloncorp.com/investor-relations.
About Exelon
Exelon Corporation (Nasdaq: EXC) is a Fortune 100 energy company with the largest number of electricity and natural gas customers in the U.S. Exelon does business in 48 states, the District of Columbia, and Canada and had 2020 revenue of $33 billion. Exelon serves approximately 10 million customers in Delaware, the District of Columbia, Illinois, Maryland, New Jersey, and Pennsylvania through its Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO, and Pepco subsidiaries. Exelon is one of the largest competitive U.S. power generators, with more than 31,000 megawatts of nuclear, gas, wind, solar and hydroelectric generating capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. The company’s Constellation business unit provides energy products and services to approximately 2 million residential, public sector, and business customers, including three fourths of the Fortune 100. Follow Exelon on Twitter @Exelon.
Non-GAAP Financial Measures
In addition to net income as determined under generally accepted accounting principles in the United States (GAAP), Exelon evaluates its operating performance using the measure of Adjusted (non-GAAP) Operating Earnings because management believes it represents earnings directly related to the ongoing operations of the business. Adjusted (non-GAAP) Operating Earnings exclude certain costs, expenses, gains and losses, and other specified items. This measure is intended to enhance an investor’s overall understanding of period over period operating results and provide an indication of Exelon’s baseline operating performance excluding items that are considered by management to be not directly related to the ongoing operations of the business. In addition, this measure is among the primary indicators management uses as a basis for evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting of future periods. Adjusted (non-GAAP) Operating Earnings is not a presentation defined under GAAP and may not be comparable to other companies’ presentation. The Company has provided the non-GAAP financial measure as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. Adjusted (non-GAAP) Operating Earnings should not be deemed more useful than, a substitute for, or an alternative to the most comparable GAAP Net Income measures provided in this earnings release and attachments. This press release and earnings release attachments provide reconciliations of Adjusted (non-GAAP) Operating Earnings to the most directly comparable financial measures calculated and presented in accordance with GAAP, are posted on Exelon’s website: www.exeloncorp.com, and have been furnished to the Securities and Exchange Commission on Form 8-K on Nov. 3, 2021.
Cautionary Statements Regarding Forward-Looking Information
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties including, among others, those related to the timing, manner, tax-free nature, and expected benefits associated with the potential separation of Exelon’s competitive power generation and customer-facing energy business from its six regulated electric and gas utilities. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements.
The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Exelon Generation Company, LLC, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants) include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2020 Annual Report on Form 10-K in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 19, Commitments and Contingencies; (2) the Registrants' Third Quarter 2021 Quarterly Report on Form 10-Q (to be filed on Nov. 3, 2021) in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 15, Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants.
Investors are cautioned not to place undue reliance on these forward-looking statements, whether written or oral, which apply only as of the date of this press release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.
Exelon GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions, except per share data) | |||||||||||||||||||
| Three Months Ended September 30, 2021 |
| Three Months Ended September 30, 2020 | ||||||||||||||||
| GAAP (a) |
| Non-GAAP Adjustments |
|
|
| GAAP (a) |
| Non-GAAP Adjustments |
|
| ||||||||
Operating revenues | $ | 8,910 |
|
| $ | 635 |
|
| (b) |
| $ | 8,853 |
|
| $ | (37 | ) |
| (b) |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Purchased power and fuel |
| 3,033 |
|
|
| 1,347 |
|
| (b),(c) |
|
| 3,614 |
|
|
| 194 |
|
| (b),(c) |
Operating and maintenance |
| 1,992 |
|
|
| 90 |
|
| (c),(d),(e),(f), (g),(h),(i),(j), (k),(l) |
|
| 2,732 |
|
|
| (718 | ) |
| (c),(d),(e),(f), (g),(j),(l) |
Depreciation and amortization |
| 1,624 |
|
|
| (573 | ) |
| (c),(k) |
|
| 1,289 |
|
|
| (262 | ) |
| (c) |
Taxes other than income taxes |
| 468 |
|
|
| — |
|
|
|
|
| 452 |
|
|
| — |
|
|
|
Total operating expenses |
| 7,117 |
|
|
|
|
|
|
| 8,087 |
|
|
|
|
| ||||
Gain on sales of assets and businesses |
| 65 |
|
|
| 1 |
|
| (c) |
|
| 3 |
|
|
| — |
|
|
|
Operating income |
| 1,858 |
|
|
|
|
|
|
| 769 |
|
|
|
|
| ||||
Other income and (deductions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest expense, net |
| (397 | ) |
|
| (1 | ) |
| (b) |
|
| (404 | ) |
|
| 8 |
|
| (b) |
Other, net |
| (55 | ) |
|
| 95 |
|
| (b),(c),(k),(m) |
|
| 421 |
|
|
| (333 | ) |
| (m) |
Total other income and (deductions) |
| (452 | ) |
|
|
|
|
|
| 17 |
|
|
|
|
| ||||
Income before income taxes |
| 1,406 |
|
|
|
|
|
|
| 786 |
|
|
|
|
| ||||
Income taxes |
| 174 |
|
|
| (26 | ) |
| (b),(c),(d),(e), (f),(g),(h),(i), (j),(k),(l),(m), (n) |
|
| 216 |
|
|
| (34 | ) |
| (b),(c),(d),(e), (f),(g),(j),(l), (m),(n) |
Equity in losses of unconsolidated affiliates |
| (3 | ) |
|
| — |
|
|
|
|
| (1 | ) |
|
| — |
|
|
|
Net income |
| 1,229 |
|
|
|
|
|
|
| 569 |
|
|
|
|
| ||||
Net income attributable to noncontrolling interests |
| 26 |
|
|
| 23 |
|
| (o) |
|
| 68 |
|
|
| (57 | ) |
| (o) |
Net income attributable to common shareholders | $ | 1,203 |
|
|
|
|
|
| $ | 501 |
|
|
|
|
| ||||
Effective tax rate(p) |
| 12.4 | % |
|
|
|
|
|
| 27.5 | % |
|
|
|
| ||||
Earnings per average common share |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Basic | $ | 1.23 |
|
|
|
|
|
| $ | 0.51 |
|
|
|
|
| ||||
Diluted | $ | 1.23 |
|
|
|
|
|
| $ | 0.51 |
|
|
|
|
| ||||
Average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Basic |
| 979 |
|
|
|
|
|
|
| 976 |
|
|
|
|
| ||||
Diluted |
| 980 |
|
|
|
|
|
|
| 977 |
|
|
|
|
|
__________ | |
(a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
(b) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations. |
(c) | In 2021, adjustment to exclude primarily accelerated depreciation and amortization associated with Generation's decisions to early retire Byron and Dresden, partially offset by reversal of one-time charges resulting from the reversal of the previous decision to retire Byron and Dresden on September 15, 2021. Depreciation for Byron and Dresden was adjusted beginning September 15, 2021 to reflect the extended useful life estimates. In 2020, adjustment to exclude primarily one-time charges and accelerated depreciation and amortization associated with Generation’s decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024. |
(d) | Adjustment to exclude primarily reorganization and severance costs related to cost management programs. |
(e) | In 2021, adjustment to exclude an impairment of a wind project at Generation. In 2020, adjustment to exclude primarily an impairment in the New England asset group. |
(f) | Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees. |
(g) | Adjustment to exclude costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021. |
(h) | Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation. |
(i) | Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs. |
(j) | Adjustment to exclude changes in environmental liabilities. |
(k) | Adjustment to exclude the impact of suspension of contractual offset for the Byron units beginning in the second quarter of 2021 through September 15, 2021. With Generation's September 15, 2021, reversal of the previous decision to retire Byron, Generation resumed contractual offset for Byron as of that date. |
(l) | In 2021, adjustment to exclude an adjustment to the nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update in the third quarter of 2021. In 2020, adjustment to exclude ARO updates. |
(m) | Adjustment to exclude the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory Agreement Units. |
(n) | Adjustment to exclude primarily the adjustment to deferred income taxes due to changes in forecasted apportionment. |
(o) | Adjustment to exclude elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to unrealized gains and losses on NDT fund investments for CENG units prior to Generation's acquisition of EDF's interest in CENG on August 6, 2021 and the noncontrolling interest portion of a wind project impairment. |
(p) | The effective tax rate related to Adjusted (non-GAAP) Operating Earnings is 11.6% and 15.0% for the three months ended September 30, 2021 and 2020, respectively. |
Exelon GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions, except per share data) | |||||||||||||||||||
| Nine Months Ended September 30, 2021 |
| Nine Months Ended September 30, 2020 | ||||||||||||||||
| GAAP (a) |
| Non-GAAP Adjustments |
|
|
| GAAP (a) |
| Non-GAAP Adjustments |
|
| ||||||||
Operating revenues | $ | 26,715 |
|
| $ | 958 |
|
| (b) |
| $ | 24,925 |
|
| $ | (238 | ) |
| (b) |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Purchased power and fuel | 12,017 |
|
| 2,052 |
|
| (b),(c) |
| 10,406 |
|
| 210 |
|
| (b),(c) | ||||
Operating and maintenance | 6,416 |
|
| (98 | ) |
| (c),(d),(e),(f), (g),(h),(i),(j), (k),(l) |
| 7,370 |
|
| (1,023 | ) |
| (c),(d),(e),(f), (g),(j),(l),(p) | ||||
Depreciation and amortization | 4,988 |
|
| (1,848 | ) |
| (c),(k) |
| 3,312 |
|
| (275 | ) |
| (c) | ||||
Taxes other than income taxes | 1,337 |
|
| — |
|
|
|
| 1,299 |
|
| — |
|
|
| ||||
Total operating expenses | 24,758 |
|
|
|
|
|
| 22,387 |
|
|
|
|
| ||||||
Gain on sales of assets and businesses | 147 |
|
| (68 | ) |
| (c) |
| 16 |
|
| (4 | ) |
| (b),(c) | ||||
Operating income | 2,104 |
|
|
|
|
|
| 2,554 |
|
|
|
|
| ||||||
Other income and (deductions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest expense, net | (1,180 | ) |
| (4 | ) |
| (b) |
| (1,241 | ) |
| 48 |
|
| (b) | ||||
Other, net | 751 |
|
| (90 | ) |
| (b),(c),(k),(m) |
| 352 |
|
| (22 | ) |
| (m) | ||||
Total other income and (deductions) | (429 | ) |
|
|
|
|
| (889 | ) |
|
|
|
| ||||||
Income before income taxes | 1,675 |
|
|
|
|
|
| 1,665 |
|
|
|
|
| ||||||
Income taxes | 229 |
|
| 135 |
|
| (b),(c),(d),(e), (f),(g),(h),(i), (j),(k),(l),(m), (n) |
| 141 |
|
| 87 |
|
| (b),(c),(d),(e), (f),(g),(j),(m), (n) | ||||
Equity in losses of unconsolidated affiliates | (5 | ) |
| — |
|
|
|
| (5 | ) |
| — |
|
|
| ||||
Net income | 1,441 |
|
|
|
|
|
| 1,519 |
|
|
|
|
| ||||||
Net income (loss) attributable to noncontrolling interests | 126 |
|
| (10 | ) |
| (o) |
| (85 | ) |
| (15 | ) |
| (o) | ||||
Net income attributable to common shareholders | $ | 1,315 |
|
|
|
|
|
| $ | 1,604 |
|
|
|
|
| ||||
Effective tax rate(q) | 13.7 | % |
|
|
|
|
| 8.5 | % |
|
|
|
| ||||||
Earnings per average common share |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Basic | $ | 1.34 |
|
|
|
|
|
| $ | 1.64 |
|
|
|
|
| ||||
Diluted | $ | 1.34 |
|
|
|
|
|
| $ | 1.64 |
|
|
|
|
| ||||
Average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Basic | 978 |
|
|
|
|
|
| 976 |
|
|
|
|
| ||||||
Diluted | 979 |
|
|
|
|
|
| 976 |
|
|
|
|
|
__________ | |
(a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
(b) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations. |
(c) | In 2021, adjustment to exclude primarily accelerated depreciation and amortization associated with Generation's decisions to early retire Byron, Dresden, and Mystic Units 8 and 9, partially offset by reversal of one-time charges resulting from the reversal of the previous decision to retire Byron and Dresden on September 15, 2021 and a gain on sale of Generation's solar business. Depreciation for Byron and Dresden was adjusted beginning September 15, 2021 to reflect the extended useful life estimates. In 2020, adjustment to exclude primarily one-time charges and accelerated depreciation and amortization associated with Generation’s decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024. |
(d) | Adjustment to exclude primarily reorganization and severance costs related to cost management programs. |
(e) | In 2021, adjustment to exclude an impairment in the New England asset group, an impairment recorded as a result of the agreement to sell the Albany Green Energy biomass facility, and an impairment of a wind project at Generation. In 2020, adjustment to exclude an impairment at ComEd related to the acquisition of transmission assets and an impairment in the New England asset group in the third quarter of 2020. |
(f) | Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees. |
(g) | Adjustment to exclude costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021. |
(h) | Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation. |
(i) | Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs. |
(j) | Adjustment to exclude changes in environmental liabilities. |
(k) | Adjustment to exclude the impact of suspension of contractual offset for the Byron units beginning in the second quarter of 2021 through September 15, 2021. With Generation's September 15, 2021, reversal of the previous decision to retire Byron, Generation resumed contractual offset for Byron as of that date. |
(l) | In 2021, adjustment to exclude an adjustment to the nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update in the third quarter of 2021. In 2020, adjustment to exclude ARO updates. |
(m) | Adjustment to exclude the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory Agreement Units. |
(n) | Adjustment to exclude primarily the adjustment to deferred income taxes due to changes in forecasted apportionment. |
(o) | Adjustment to exclude elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to unrealized gains and losses on NDT fund investments for CENG units prior to Generation's acquisition of EDF's interest in CENG on August 6, 2021 and the noncontrolling interest portion of a wind project impairment. |
(p) | Adjustment to exclude the payments made by ComEd under the Deferred Prosecution Agreement, which ComEd entered in July 2020 with the U.S. Attorney’s Office for the Northern District of Illinois. |
(q) | The effective tax rate related to Adjusted (non-GAAP) Operating Earnings is 15.4% and 9.0% for the nine months ended September 30, 2021 and 2020, respectively. |
ComEd GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions) | |||||||||||||||||||
| Three Months Ended September 30, 2021 |
| Three Months Ended September 30, 2020 | ||||||||||||||||
| GAAP (a) |
| Non-GAAP Adjustments |
|
|
| GAAP (a) |
| Non-GAAP Adjustments |
|
| ||||||||
Operating revenues | $ | 1,789 |
|
| $ | — |
|
|
|
| $ | 1,643 |
|
| $ | — |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Purchased power and fuel | 703 |
|
| — |
|
|
|
| 606 |
|
| — |
|
|
| ||||
Operating and maintenance | 330 |
|
| (6 | ) |
| (d) |
| 321 |
|
| — |
|
|
| ||||
Depreciation and amortization | 304 |
|
| — |
|
|
|
| 294 |
|
| — |
|
|
| ||||
Taxes other than income taxes | 91 |
|
| — |
|
|
|
| 81 |
|
| — |
|
|
| ||||
Total operating expenses | 1,428 |
|
|
|
|
|
| 1,302 |
|
|
|
|
| ||||||
Operating income | 361 |
|
|
|
|
|
| 341 |
|
|
|
|
| ||||||
Other income and (deductions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest expense, net | (98 | ) |
| — |
|
|
|
| (95 | ) |
| — |
|
|
| ||||
Other, net | 13 |
|
| — |
|
|
|
| 10 |
|
| — |
|
|
| ||||
Total other income and (deductions) | (85 | ) |
|
|
|
|
| (85 | ) |
|
|
|
| ||||||
Income before income taxes | 276 |
|
|
|
|
|
| 256 |
|
|
|
|
| ||||||
Income taxes | 56 |
|
| 2 |
|
| (d) |
| 60 |
|
| — |
|
|
| ||||
Net income | $ | 220 |
|
|
|
|
|
| $ | 196 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Nine Months Ended September 30, 2021 |
| Nine Months Ended September 30, 2020 | ||||||||||||||||
| GAAP (a) |
| Non-GAAP Adjustments |
|
|
| GAAP (a) |
| Non-GAAP Adjustments |
|
| ||||||||
Operating revenues | $ | 4,840 |
|
| $ | — |
|
|
|
| $ | 4,499 |
|
| $ | — |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Purchased power and fuel | 1,728 |
|
| — |
|
|
|
| 1,557 |
|
| — |
|
|
| ||||
Operating and maintenance | 969 |
|
| (10 | ) |
| (d) |
| 1,173 |
|
| (215 | ) |
| (b), (c) | ||||
Depreciation and amortization | 893 |
|
| — |
|
|
|
| 841 |
|
| — |
|
|
| ||||
Taxes other than income taxes | 243 |
|
| — |
|
|
|
| 227 |
|
| — |
|
|
| ||||
Total operating expenses | 3,833 |
|
|
|
|
|
| 3,798 |
|
|
|
|
| ||||||
Operating income | 1,007 |
|
|
|
|
|
| 701 |
|
|
|
|
| ||||||
Other income and (deductions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest expense, net | (292 | ) |
| — |
|
|
|
| (287 | ) |
| — |
|
|
| ||||
Other, net | 35 |
|
| — |
|
|
|
| 32 |
|
| — |
|
|
| ||||
Total other income and (deductions) | (257 | ) |
|
|
|
|
| (255 | ) |
|
|
|
| ||||||
Income before income taxes | 750 |
|
|
|
|
|
| 446 |
|
|
|
|
| ||||||
Income taxes | 141 |
|
| 3 |
|
| (d) |
| 142 |
|
| 4 |
|
| (b) | ||||
Net income | $ | 609 |
|
|
|
|
|
| $ | 304 |
|
|
|
|
|
__________ | |
(a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
(b) | Adjustment to exclude an impairment related to the acquisition of transmission assets. |
(c) | Adjustment to exclude the payments made by ComEd under the Deferred Prosecution Agreement, which ComEd entered in July 2020 with the U.S. Attorney’s Office for the Northern District of Illinois. |
(d) | Represents costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs. |
PECO GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions) | |||||||||||||||||||
| Three Months Ended September 30, 2021 |
| Three Months Ended September 30, 2020 | ||||||||||||||||
| GAAP (a) |
| Non-GAAP Adjustments |
|
|
| GAAP (a) |
| Non-GAAP Adjustments |
|
| ||||||||
Operating revenues | $ | 818 |
|
| $ | — |
|
|
|
| $ | 813 |
|
| $ | — |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Purchased power and fuel | 277 |
|
| — |
|
|
|
| 269 |
|
| — |
|
|
| ||||
Operating and maintenance | 263 |
|
| (5 | ) |
| (b),(c) |
| 251 |
|
| (4 | ) |
| (b),(e) | ||||
Depreciation and amortization | 86 |
|
| — |
|
|
|
| 85 |
|
| — |
|
|
| ||||
Taxes other than income taxes | 51 |
|
| — |
|
|
|
| 53 |
|
| — |
|
|
| ||||
Total operating expenses | 677 |
|
|
|
|
|
| 658 |
|
|
|
|
| ||||||
Operating income | 141 |
|
|
|
|
|
| 155 |
|
|
|
|
| ||||||
Other income and (deductions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest expense, net | (40 | ) |
| — |
|
|
|
| (39 | ) |
| — |
|
|
| ||||
Other, net | 7 |
|
| — |
|
|
|
| 6 |
|
| — |
|
|
| ||||
Total other income and (deductions) | (33 | ) |
|
|
|
|
| (33 | ) |
|
|
|
| ||||||
Income before income taxes | 108 |
|
|
|
|
|
| 122 |
|
|
|
|
| ||||||
Income taxes | (3 | ) |
| 1 |
|
| (b),(c) |
| (16 | ) |
| 1 |
|
| (b),(e) | ||||
Net income | $ | 111 |
|
|
|
|
|
| $ | 138 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Nine Months Ended September 30, 2021 |
| Nine Months Ended September 30, 2020 | ||||||||||||||||
| GAAP (a) |
| Non-GAAP Adjustments |
|
|
| GAAP (a) |
| Non-GAAP Adjustments |
|
| ||||||||
Operating revenues | $ | 2,399 |
|
| $ | — |
|
|
|
| $ | 2,306 |
|
| $ | — |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Purchased power and fuel | 800 |
|
| — |
|
|
|
| 768 |
|
| — |
|
|
| ||||
Operating and maintenance | 706 |
|
| (11 | ) |
| (b),(c),(d) |
| 742 |
|
| (13 | ) |
| (b),(e) | ||||
Depreciation and amortization | 259 |
|
| — |
|
|
|
| 259 |
|
| — |
|
|
| ||||
Taxes other than income taxes | 143 |
|
| — |
|
|
|
| 131 |
|
| — |
|
|
| ||||
Total operating expenses | 1,908 |
|
|
|
|
|
| 1,900 |
|
|
|
|
| ||||||
Operating income | 491 |
|
|
|
|
|
| 406 |
|
|
|
|
| ||||||
Other income and (deductions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest expense, net | (119 | ) |
| — |
|
|
|
| (108 | ) |
| — |
|
|
| ||||
Other, net | 20 |
|
| — |
|
|
|
| 12 |
|
| — |
|
|
| ||||
Total other income and (deductions) | (99 | ) |
|
|
|
|
| (96 | ) |
|
|
|
| ||||||
Income before income taxes | 392 |
|
|
|
|
|
| 310 |
|
|
|
|
| ||||||
Income taxes | 9 |
|
| 3 |
|
| (b),(c),(d) |
| (7 | ) |
| 4 |
|
| (b),(e) | ||||
Net income | $ | 383 |
|
|
|
|
|
| $ | 317 |
|
|
|
|
|
__________ | |
(a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
(b) | Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees. |
(c) | Represents costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs. |
(d) | Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation. |
(e) | Adjustment to exclude reorganization costs related to cost management programs. |
BGE GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions) | |||||||||||||||||||
| Three Months Ended September 30, 2021 |
| Three Months Ended September 30, 2020 | ||||||||||||||||
| GAAP (a) |
| Non-GAAP Adjustments |
|
|
| GAAP (a) |
| Non-GAAP Adjustments |
|
| ||||||||
Operating revenues | $ | 770 |
|
| $ | — |
|
|
|
| $ | 731 |
|
| $ | — |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Purchased power and fuel | 290 |
|
| — |
|
|
|
| 250 |
|
| — |
|
|
| ||||
Operating and maintenance | 205 |
|
| (5 | ) |
| (b),(c) |
| 191 |
|
| (1 | ) |
| (b),(e) | ||||
Depreciation and amortization | 142 |
|
| — |
|
|
|
| 133 |
|
| — |
|
|
| ||||
Taxes other than income taxes | 72 |
|
| — |
|
|
|
| 68 |
|
| — |
|
|
| ||||
Total operating expenses | 709 |
|
|
|
|
|
| 642 |
|
|
|
|
| ||||||
Operating income | 61 |
|
|
|
|
|
| 89 |
|
|
|
|
| ||||||
Other income and (deductions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest expense, net | (36 | ) |
| — |
|
|
|
| (34 | ) |
| — |
|
|
| ||||
Other, net | 7 |
|
| — |
|
|
|
| 6 |
|
| — |
|
|
| ||||
Total other income and (deductions) | (29 | ) |
|
|
|
|
| (28 | ) |
|
|
|
| ||||||
Income before income taxes | 32 |
|
|
|
|
|
| 61 |
|
|
|
|
| ||||||
Income taxes | (4 | ) |
| 1 |
|
| (b),(c) |
| 8 |
|
| — |
|
|
| ||||
Net income | $ | 36 |
|
|
|
|
|
| $ | 53 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Nine Months Ended September 30, 2021 |
| Nine Months Ended September 30, 2020 | ||||||||||||||||
| GAAP (a) |
| Non-GAAP Adjustments |
|
|
| GAAP (a) |
| Non-GAAP Adjustments |
|
| ||||||||
Operating revenues | $ | 2,426 |
|
| $ | — |
|
|
|
| $ | 2,284 |
|
| $ | — |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Purchased power and fuel | 840 |
|
| — |
|
|
|
| 731 |
|
| — |
|
|
| ||||
Operating and maintenance | 595 |
|
| (11 | ) |
| (b),(c),(d) |
| 567 |
|
| (8 | ) |
| (b),(e) | ||||
Depreciation and amortization | 434 |
|
| — |
|
|
|
| 405 |
|
| — |
|
|
| ||||
Taxes other than income taxes | 211 |
|
| — |
|
|
|
| 200 |
|
| — |
|
|
| ||||
Total operating expenses | 2,080 |
|
|
|
|
|
| 1,903 |
|
|
|
|
| ||||||
Operating income | 346 |
|
|
|
|
|
| 381 |
|
|
|
|
| ||||||
Other income and (deductions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest expense, net | (103 | ) |
| — |
|
|
|
| (99 | ) |
| — |
|
|
| ||||
Other, net | 23 |
|
| — |
|
|
|
| 17 |
|
| — |
|
|
| ||||
Total other income and (deductions) | (80 | ) |
|
|
|
|
| (82 | ) |
|
|
|
| ||||||
Income before income taxes | 266 |
|
|
|
|
|
| 299 |
|
|
|
|
| ||||||
Income taxes | (24 | ) |
| 3 |
|
| (b),(c),(d) |
| 26 |
|
| 2 |
|
| (b),(e) | ||||
Net income | $ | 290 |
|
|
|
|
|
| $ | 273 |
|
|
|
|
|
__________ | |
(a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
(b) | Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees. |
(c) | Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs. |
(d) | Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation. |
(e) | Adjustment to exclude reorganization costs related to cost management programs. |
PHI GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions) | |||||||||||||||||||
| Three Months Ended September 30, 2021 |
| Three Months Ended September 30, 2020 | ||||||||||||||||
| GAAP (a) |
| Non-GAAP Adjustments |
|
|
| GAAP (a) |
| Non-GAAP Adjustments |
|
| ||||||||
Operating revenues | $ | 1,470 |
|
| $ | — |
|
|
|
| $ | 1,368 |
|
| $ | — |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Purchased power and fuel | 540 |
|
| — |
|
|
|
| 506 |
|
| — |
|
|
| ||||
Operating and maintenance | 278 |
|
| (9 | ) |
| (b),(c),(d),(e),(f) |
| 275 |
|
| (7 | ) |
| (d),(e),(f) | ||||
Depreciation and amortization | 210 |
|
| — |
|
|
|
| 200 |
|
| — |
|
|
| ||||
Taxes other than income taxes | 127 |
|
| — |
|
|
|
| 121 |
|
| — |
|
|
| ||||
Total operating expenses | 1,155 |
|
|
|
|
|
| 1,102 |
|
|
|
|
| ||||||
Operating income | 315 |
|
|
|
|
|
| 266 |
|
|
|
|
| ||||||
Other income and (deductions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest expense, net | (67 | ) |
| — |
|
|
|
| (67 | ) |
| — |
|
|
| ||||
Other, net | 16 |
|
| — |
|
|
|
| 16 |
|
| — |
|
|
| ||||
Total other income and (deductions) | (51 | ) |
|
|
|
|
| (51 | ) |
|
|
|
| ||||||
Income before income taxes | 264 |
|
|
|
|
|
| 215 |
|
|
|
|
| ||||||
Income taxes | (2 | ) |
| 2 |
|
| (b),(c),(d),(e),(f) |
| (1 | ) |
| 3 |
|
| (d),(e),(f),(g) | ||||
Net income | $ | 266 |
|
|
|
|
|
| $ | 216 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Nine Months Ended September 30, 2021 |
| Nine Months Ended September 30, 2020 | ||||||||||||||||
| GAAP (a) |
| Non-GAAP Adjustments |
|
|
| GAAP (a) |
| Non-GAAP Adjustments |
|
| ||||||||
Operating revenues | $ | 3,854 |
|
| $ | — |
|
|
|
| $ | 3,554 |
|
| $ | — |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Purchased power and fuel | 1,414 |
|
| — |
|
|
|
| 1,316 |
|
| — |
|
|
| ||||
Operating and maintenance | 790 |
|
| (15 | ) |
| (b),(c),(d),(e),(f) |
| 813 |
|
| (17 | ) |
| (d),(e),(f) | ||||
Depreciation and amortization | 614 |
|
| — |
|
|
|
| 585 |
|
| — |
|
|
| ||||
Taxes other than income taxes | 349 |
|
| — |
|
|
|
| 343 |
|
| — |
|
|
| ||||
Total operating expenses | 3,167 |
|
|
|
|
|
| 3,057 |
|
|
|
|
| ||||||
Gain on sales of assets | — |
|
| — |
|
|
|
| 2 |
|
| — |
|
|
| ||||
Operating income | 687 |
|
|
|
|
|
| 499 |
|
|
|
|
| ||||||
Other income and (deductions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest expense, net | (201 | ) |
| — |
|
|
|
| (201 | ) |
| — |
|
|
| ||||
Other, net | 52 |
|
| — |
|
|
|
| 42 |
|
| — |
|
|
| ||||
Total other income and (deductions) | (149 | ) |
|
|
|
|
| (159 | ) |
|
|
|
| ||||||
Income before income taxes | 538 |
|
|
|
|
|
| 340 |
|
|
|
|
| ||||||
Income taxes | 3 |
|
| 4 |
|
| (b),(c),(d),(e),(f) |
| (77 | ) |
| 6 |
|
| (d),(e),(f),(g) | ||||
Equity in earnings of unconsolidated affiliates | — |
|
|
|
|
|
| 1 |
|
|
|
|
| ||||||
Net income | $ | 535 |
|
|
|
|
|
| $ | 418 |
|
|
|
|
|
__________ | |
(a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
(b) | Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation. |
(c) | Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs. |
(d) | Adjustment to exclude reorganization and severance costs related to cost management programs. |
(e) | Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees. |
(f) | Adjustment to exclude an ARO update. |
(g) | Adjustment to exclude deferred income taxes due to changes in forecasted appointment. |
Generation GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions) | |||||||||||||||||||
| Three Months Ended September 30, 2021 |
| Three Months Ended September 30, 2020 | ||||||||||||||||
| GAAP (a) |
| Non-GAAP Adjustments |
|
|
| GAAP (a) |
| Non-GAAP Adjustments |
|
| ||||||||
Operating revenues | $ | 4,406 |
|
| $ | 635 |
|
| (b) |
| $ | 4,659 |
|
| $ | (37 | ) |
| (b) |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Purchased power and fuel | 1,546 |
|
| 1,347 |
|
| (b),(c) |
| 2,314 |
|
| 194 |
|
| (b),(c) | ||||
Operating and maintenance | 938 |
|
| 121 |
|
| (c),(d),(e),(f), (g),(h),(i),(j), (k),(l) |
| 1,737 |
|
| (706 | ) |
| (c),(d),(e),(f), (g),(j) | ||||
Depreciation and amortization | 866 |
|
| (573 | ) |
| (c),(k) |
| 558 |
|
| (262 | ) |
| (c) | ||||
Taxes other than income taxes | 115 |
|
| — |
|
|
|
| 118 |
|
| — |
|
|
| ||||
Total operating expenses | 3,465 |
|
|
|
|
|
| 4,727 |
|
|
|
|
| ||||||
Gain on sales of assets and businesses | 65 |
|
| 1 |
|
| (c) |
| — |
|
| — |
|
|
| ||||
Operating income (loss) | 1,006 |
|
|
|
|
|
| (68 | ) |
|
|
|
| ||||||
Other income and (deductions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest expense, net | (77 | ) |
| (1 | ) |
| (b) |
| (80 | ) |
| (2 | ) |
| (b) | ||||
Other, net | (115 | ) |
| 91 |
|
| (c),(k),(m) |
| 367 |
|
| (333 | ) |
| (m) | ||||
Total other income and (deductions) | (192 | ) |
|
|
|
|
| 287 |
|
|
|
|
| ||||||
Income before income taxes | 814 |
|
|
|
|
|
| 219 |
|
|
|
|
| ||||||
Income taxes | 177 |
|
| (11 | ) |
| (b),(c),(d),(e), (f),(g),(h),(i), (j),(k),(l),(m), (n) |
| 100 |
|
| 52 |
|
| (b),(c),(d),(e), (f),(g),(j),(m), (n) | ||||
Equity in losses of unconsolidated affiliates | (4 | ) |
| — |
|
|
|
| (2 | ) |
| — |
|
|
| ||||
Net income | 633 |
|
|
|
|
|
| 117 |
|
|
|
|
| ||||||
Net income attributable to noncontrolling interests | 26 |
|
| 23 |
|
| (o) |
| 68 |
|
| (57 | ) |
| (o) | ||||
Net income attributable to membership interest | $ | 607 |
|
|
|
|
|
| $ | 49 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Nine Months Ended September 30, 2021 |
| Nine Months Ended September 30, 2020 | ||||||||||||||||
| GAAP (a) |
| Non-GAAP Adjustments |
|
|
| GAAP (a) |
| Non-GAAP Adjustments |
|
| ||||||||
Operating revenues | $ | 14,117 |
|
| $ | 958 |
|
| (b) |
| $ | 13,272 |
|
| $ | (238 | ) |
| (b) |
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Purchased power and fuel | 8,103 |
|
| 2,052 |
|
| (b),(c) |
| 6,961 |
|
| 210 |
|
| (b),(c) | ||||
Operating and maintenance | 3,413 |
|
| (40 | ) |
| (c),(d),(e),(f), (g),(h),(i),(j), (k),(l) |
| 4,188 |
|
| (773 | ) |
| (c),(d),(e),(f), (g),(j) | ||||
Depreciation and amortization | 2,735 |
|
| (1,848 | ) |
| (c),(k) |
| 1,161 |
|
| (275 | ) |
| (c) | ||||
Taxes other than income taxes | 354 |
|
| — |
|
|
|
| 364 |
|
| — |
|
|
| ||||
Total operating expenses | 14,605 |
|
|
|
|
|
| 12,674 |
|
|
|
|
| ||||||
Gain on sales of assets and businesses | 144 |
|
| (68 | ) |
| (c) |
| 12 |
|
| (4 | ) |
| (b),(c) | ||||
Operating (loss) income | (344 | ) |
|
|
|
|
| 610 |
|
|
|
|
| ||||||
Other income and (deductions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest expense, net | (225 | ) |
| (4 | ) |
| (b) |
| (277 | ) |
| 10 |
|
| (b) | ||||
Other, net | 561 |
|
| (96 | ) |
| (c),(k),(m) |
| 199 |
|
| (22 | ) |
| (m) | ||||
Total other income and (deductions) | 336 |
|
|
|
|
|
| (78 | ) |
|
|
|
| ||||||
(Loss) income before income taxes | (8 | ) |
|
|
|
|
| 532 |
|
|
|
|
| ||||||
Income taxes | 108 |
|
| 139 |
|
| (b),(c),(d),(e), (f),(g),(h),(i), (j),(k),(l),(m), (n) |
| 41 |
|
| 149 |
|
| (b),(c),(d),(e), (f),(g),(j),(m), (n) | ||||
Equity in losses of unconsolidated affiliates | (6 | ) |
| — |
|
|
|
| (6 | ) |
| — |
|
|
| ||||
Net (loss) income | (122 | ) |
|
|
|
|
| 485 |
|
|
|
|
| ||||||
Net income (loss) attributable to noncontrolling interests | 125 |
|
| (10 | ) |
| (o) |
| (85 | ) |
| (15 | ) |
| (o) | ||||
Net (loss) income attributable to membership interest | $ | (247 | ) |
|
|
|
|
| $ | 570 |
|
|
|
|
|
__________ | |
(a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
(b) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations. |
(c) | In 2021, adjustment to exclude primarily accelerated depreciation and amortization associated with Generation's decisions to early retire Byron, Dresden, and Mystic Units 8 and 9, partially offset by reversal of one-time charges resulting from the reversal of the previous decision to retire Byron and Dresden on September 15, 2021 and a gain on sale of Generation's solar business. Depreciation for Byron and Dresden was adjusted beginning September 15, 2021 to reflect the extended useful life estimates. In 2020, adjustment to exclude primarily one-time charges and accelerated depreciation and amortization associated with Generation’s decisions in the third quarter of 2020 to early retire Byron and Dresden nuclear facilities in 2021 and Mystic Units 8 and 9 in 2024. |
(d) | Adjustment to exclude primarily reorganization and severance costs related to cost management programs. |
(e) | In 2021, adjustment to exclude an impairment in the New England asset group, an impairment recorded as a result of the agreement to sell the Albany Green Energy biomass facility, and an impairment of a wind project at Generation. In 2020, adjustment to exclude primarily an impairment in the New England asset group in the third quarter of 2020. |
(f) | Adjustment to exclude direct costs related to COVID-19 consisting primarily of costs to acquire personal protective equipment, costs for cleaning supplies and services, and costs to hire healthcare professionals to monitor the health of employees. |
(g) | Adjustment to exclude costs related to the acquisition of Electricite de France SA's (EDF's) interest in CENG, which was completed in the third quarter of 2021. |
(h) | Adjustment to exclude costs related to a multi-year Enterprise Resource Program (ERP) system implementation. |
(i) | Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs. |
(j) | Adjustment to exclude changes in environmental liabilities. |
(k) | Adjustment to exclude the impact of suspension of contractual offset for the Byron units beginning in the second quarter of 2021 through September 15, 2021. With Generation's September 15, 2021 reversal of the previous decision to retire Byron, Generation resumed contractual offset for Byron as of that date. |
(l) | In 2021, adjustment to exclude an adjustment to the nuclear asset retirement obligation for Non-Regulatory Agreement Units resulting from the annual update in the third quarter of 2021. |
(m) | Adjustment to exclude the impact of net unrealized gains and losses on Generation’s NDT fund investments for Non-Regulatory Agreement Units. |
(n) | Adjustment to exclude primarily the adjustment to deferred income taxes due to changes in forecasted apportionment. |
(o) | Adjustment to exclude elimination from Generation’s results of the noncontrolling interests related to certain exclusion items, primarily related to unrealized gains and losses on NDT fund investments for CENG units prior to Generation's acquisition of EDF's interest in CENG on August 6, 2021 and the noncontrolling interest portion of a wind project impairment. |
Other (a) GAAP Consolidated Statements of Operations and Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments (unaudited) (in millions) | |||||||||||||||||||
| Three Months Ended September 30, 2021 |
| Three Months Ended September 30, 2020 | ||||||||||||||||
| GAAP (b) |
| Non-GAAP Adjustments |
|
|
| GAAP (b) |
| Non-GAAP Adjustments |
|
| ||||||||
Operating revenues | $ | (343 | ) |
| $ | — |
|
|
|
| $ | (361 | ) |
| $ | — |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Purchased power and fuel | (323 | ) |
| — |
|
|
|
| (331 | ) |
| — |
|
|
| ||||
Operating and maintenance | (22 | ) |
| (6 | ) |
| (c) |
| (43 | ) |
| — |
|
|
| ||||
Depreciation and amortization | 16 |
|
| — |
|
|
|
| 19 |
|
| — |
|
|
| ||||
Taxes other than income taxes | 12 |
|
| — |
|
|
|
| 11 |
|
| — |
|
|
| ||||
Total operating expenses | (317 | ) |
|
|
|
|
| (344 | ) |
|
|
|
| ||||||
Gain on sales of assets and businesses | — |
|
| — |
|
|
|
| 3 |
|
| — |
|
|
| ||||
Operating loss | (26 | ) |
|
|
|
|
| (14 | ) |
|
|
|
| ||||||
Other income and (deductions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest expense, net | (79 | ) |
| — |
|
|
|
| (89 | ) |
| 10 |
|
| (d) | ||||
Other, net | 17 |
|
| 4 |
|
| (d) |
| 16 |
|
| — |
|
|
| ||||
Total other income and (deductions) | (62 | ) |
|
|
|
|
| (73 | ) |
|
|
|
| ||||||
Loss before income taxes | (88 | ) |
|
|
|
|
| (87 | ) |
|
|
|
| ||||||
Income taxes | (50 | ) |
| (21 | ) |
| (c),(d),(e) |
| 65 |
|
| (90 | ) |
| (d),(e) | ||||
Equity in earnings of unconsolidated affiliates | 1 |
|
| — |
|
|
|
| 1 |
|
| — |
|
|
| ||||
Net loss | (37 | ) |
|
|
|
|
| (151 | ) |
|
|
|
| ||||||
Net income attributable to noncontrolling interests | — |
|
|
|
|
|
| — |
|
|
|
|
| ||||||
Net loss attributable to common shareholders | $ | (37 | ) |
|
|
|
|
| $ | (151 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
| Nine Months Ended September 30, 2021 |
| Nine Months Ended September 30, 2020 | ||||||||||||||||
| GAAP (b) |
| Non-GAAP Adjustments |
|
|
| GAAP (b) |
| Non-GAAP Adjustments |
|
| ||||||||
Operating revenues | $ | (921 | ) |
| $ | — |
|
|
|
| $ | (990 | ) |
| $ | — |
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Purchased power and fuel | (868 | ) |
| — |
|
|
|
| (927 | ) |
| — |
|
|
| ||||
Operating and maintenance | (57 | ) |
| (11 | ) |
| (c) |
| (113 | ) |
| 3 |
|
| (f) | ||||
Depreciation and amortization | 53 |
|
| — |
|
|
|
| 61 |
|
| — |
|
|
| ||||
Taxes other than income taxes | 37 |
|
| — |
|
|
|
| 34 |
|
| — |
|
|
| ||||
Total operating expenses | (835 | ) |
|
|
|
|
| (945 | ) |
|
|
|
| ||||||
Gain on sales of assets and businesses | 3 |
|
| — |
|
|
|
| 2 |
|
| — |
|
|
| ||||
Operating loss | (83 | ) |
|
|
|
|
| (43 | ) |
|
|
|
| ||||||
Other income and (deductions) |
|
|
|
|
|
|
|
|
|
|
| ||||||||
Interest expense, net | (240 | ) |
| — |
|
|
|
| (269 | ) |
| 38 |
|
| (d),(e) | ||||
Other, net | 60 |
|
| 6 |
|
| (d) |
| 50 |
|
| — |
|
|
| ||||
Total other income and (deductions) | (180 | ) |
|
|
|
|
| (219 | ) |
|
|
|
| ||||||
Loss before income taxes | (263 | ) |
|
|
|
|
| (262 | ) |
|
|
|
| ||||||
Income taxes | (8 | ) |
| (17 | ) |
| (c),(d),(e) |
| 16 |
|
| (78 | ) |
| (d),(e),(f) | ||||
Equity in earnings of unconsolidated affiliates | 1 |
|
| — |
|
|
|
| — |
|
| — |
|
|
| ||||
Net loss | (254 | ) |
|
|
|
|
| (278 | ) |
|
|
|
| ||||||
Net income attributable to noncontrolling interests | 1 |
|
|
|
|
|
| — |
|
|
|
|
| ||||||
Net loss attributable to common shareholders | $ | (255 | ) |
|
|
|
|
| $ | (278 | ) |
|
|
|
|
__________ | |
(a) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities, and other financing and investment activities. |
(b) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
(c) | Adjustment to exclude costs related to the planned separation primarily comprised of system-related costs, third-party costs paid to advisors, consultants, lawyers, and other experts assisting in the planned separation, and employee-related severance costs. |
(d) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations. |
(e) | Adjustment to exclude primarily the adjustment to deferred income taxes due to changes in forecasted apportionment. |
(f) | Adjustment to exclude reorganization costs related to cost management programs. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20211103005309/en/
Paul Adams Corporate Communications 410-245-8717
Emily Duncan Investor Relations 312-394-2345
Source: Exelon Corporation