Earnings Release Highlights
- GAAP Net Income of $0.53 per share and Adjusted (non-GAAP)
Operating Earnings of $0.55 per share for the second quarter of
2020
- Reaffirming full year 2020 adjusted (non-GAAP) operating
earnings guidance of $2.80-$3.10 per share
- Strong utility reliability and customer operations performance
- every utility achieved top quartile in outage frequency &
duration, customer satisfaction, abandon rate and gas odor
response
- Generation’s nuclear fleet capacity factor of 95.4% was the
highest Q2 value in over a decade
- First Multi-Year Plan rate filing in Maryland was filed by BGE
in May; filing proposes flat rates through 2022
- The annual Benchmarking Air Emissions report published in July
showed that Exelon continues to have the lowest carbon intensity
among major electricity producers in the United States with an
intensity that is 90 percent lower than the industry average
- Exelon Utilities announced that by 2025, 30 percent of vehicle
fleets will be electrified. By 2030, that number will increase to
50 percent.
Exelon Corporation (Nasdaq: EXC) today reported its financial
results for the second quarter of 2020.
“From a financial and operational standpoint, we finished the
quarter strong, with each of our utilities maintaining high
reliability in the face of a particularly active storm season and
our nuclear fleet delivering its highest capacity factor in a
decade,” said Christopher M. Crane, president and CEO of Exelon.
“We also reached an agreement with the U.S. Attorney’s Office to
resolve its investigation into ComEd’s past lobbying practices in
Illinois. The conduct cited in the agreement did not live up to our
values, and we took immediate action to identify deficiencies and
implement new policies to ensure it won’t happen again. As we go
forward, our employees remain focused on doing their essential work
safely during this pandemic, and serving our customers and
communities with the highest standards of ethics, integrity and
performance.”
“Accelerated cost savings at Exelon Generation helped offset the
impact of damaging storms that affected utility earnings in the
mid-Atlantic, resulting in solid adjusted (non-GAAP) earnings of
$0.55 per share, which exceeded our guidance range of $0.35 to
$0.45 per share,” said Joseph Nigro, senior executive vice
president and CFO of Exelon. “Despite challenges caused by the
pandemic, we continue to move forward with capital projects at our
utilities, investing $1.5 billion during the second quarter to
improve infrastructure, increase reliability and deliver better
service to customers.”
Second Quarter 2020
Exelon's GAAP Net Income for the second quarter of 2020
increased to $0.53 per share from $0.50 per share in the second
quarter of 2019. Adjusted (non-GAAP) Operating Earnings for the
second quarter of 2020 decreased to $0.55 per share from $0.60 per
share in the second quarter of 2019. For the reconciliations of
GAAP Net Income to Adjusted (non-GAAP) Operating Earnings, refer to
the tables beginning on page 5.
Adjusted (non-GAAP) Operating Earnings in the second quarter of
2020 primarily reflect:
- Lower utility earnings primarily due to higher storm costs at
PECO related to the June 2020 storms, higher credit loss expense at
PECO and PHI that includes the impact of COVID-19, and distribution
formula rate timing at ComEd, partially offset by favorable weather
conditions at PECO; and
- Higher Generation earnings due to lower operating and
maintenance expense, partially offset by lower capacity revenues
and reduction in load due to COVID-19.
Operating Company Results1
ComEd
ComEd had a GAAP Net Loss of $61 million in the second quarter
of 2020 compared with GAAP Net Income of $186 million in the second
quarter of 2019. ComEd's Adjusted (non-GAAP) Operating Earnings for
the second quarter of 2020 decreased to $150 million from $186
million in the second quarter of 2019, primarily due to
distribution formula rate timing. Due to revenue decoupling,
ComEd's distribution earnings are not affected by actual weather or
customer usage patterns.
PECO
PECO’s second quarter of 2020 GAAP Net Income decreased to $39
million from $102 million in the second quarter of 2019. PECO’s
Adjusted (non-GAAP) Operating Earnings for the second quarter of
2020 decreased to $44 million from $103 million in the second
quarter of 2019, primarily due to increased storm costs related to
the June 2020 storms and credit loss expense that includes the
impacts of COVID-19, partially offset by favorable weather
conditions.
BGE
BGE’s second quarter of 2020 GAAP Net Income and Adjusted
(non-GAAP) Operating Earnings remained relatively consistent with
the second quarter of 2019. Due to revenue decoupling, BGE's
distribution earnings are not affected by actual weather or
customer usage patterns.
PHI
PHI’s second quarter of 2020 GAAP Net Income decreased to $94
million from $106 million in the second quarter of 2019. PHI’s
Adjusted (non-GAAP) Operating Earnings for the second quarter of
2020 decreased to $98 million from $107 million in the second
quarter of 2019, primarily due to credit loss expense that includes
the impacts of COVID-19. Due to revenue decoupling, PHI's
distribution earnings related to Pepco Maryland, DPL Maryland and
Pepco District of Columbia are not affected by actual weather or
customer usage patterns.
Generation
Generation's second quarter of 2020 GAAP Net Income increased to
$476 million from $108 million in the second quarter of 2019.
Generation’s Adjusted (non-GAAP) Operating Earnings for the second
quarter of 2020 increased to $252 million from $202 million in the
second quarter of 2019, primarily due to lower operating and
maintenance expense, partially offset by lower capacity revenues
and reduction in load due to COVID-19.
As of June 30, 2020, the percentage of expected generation
hedged is 98%-101% and 76%-79% for 2020 and 2021, respectively.
___________
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.
Recent Developments and Second Quarter Highlights
- COVID-19: Exelon continues to monitor developments
related to the global outbreak (pandemic) of the 2019 novel
coronavirus (COVID-19) pandemic and has taken proactive measures to
protect the health and safety of employees, contractors and
customers. As a provider of critical resources, Exelon has robust
plans and contingencies in place to ensure business and operational
continuity across a wide range of potentially disruptive events,
including extensive preparedness for major public health crises.
Exelon and its operating companies are working in close
coordination with designated state and local emergency preparedness
and health officials, and at the federal level through the Electric
Subsector Coordinating Council. All Exelon employees have access to
up-to-date information and resources and are following Centers for
Disease Control guidelines to ensure safety. In addition, Exelon
utilities have established incident command centers to address
emergent customer and employee needs in real time. The estimated
impact of COVID-19 to Exelon utilities’ and Generation’s GAAP Net
income as a result of COVID-19 is approximately $100 million and
$50 million, respectively, for the second quarter of 2020 and
primarily reflects the impact of reduction in load, incremental
credit loss expense and direct costs related to COVID-19. Direct
costs related to COVID-19 are excluded from Adjusted (non-GAAP)
Operating Earnings. The Utility Registrants and Generation also
expect a reduction in operating revenues for the second half of
2020 due to expected reduction in electric load. Further,
Generation expects an increase in credit loss expense in the second
half of 2020. There remains significant uncertainty in the economic
forecast for the remainder of the year and its impact on Exelon’s
operating revenues. However, Exelon identified and is pursuing
approximately $250 million in cost savings across its operating
companies to offset part of the expected unfavorable impacts on
operating revenues.
- BGE Maryland Electric and Natural Gas Rate Case: On May
15, 2020, BGE filed an application for a three-year cumulative
multi-year plan for 2021 through 2023 with the Maryland Public
Service Commission (MDPSC) to increase its electric distribution
rates by $140 million and natural gas distribution rates by $95
million in 2023 to recover capital investments made in late 2019
and planned capital investments from 2020 to 2023, reflecting an
ROE of 10.1%. BGE currently expects a decision in the fourth
quarter of 2020 but cannot predict if the MDPSC will approve the
application as filed or the requested schedule.
- DPL Maryland Electric Distribution Rate Case: On July
14, 2020, the MDPSC approved an increase in DPL's annual electric
distribution rates of $12 million with an effective date of July
16, 2020, and reflecting an ROE of 9.6%.
- Nuclear Operations: Generation’s nuclear fleet,
including its owned output from the Salem Generating Station and
100% of the CENG units, produced 43,416 gigawatt-hours (GWhs) in
the second quarter of 2020, compared with 44,748 GWhs in the second
quarter of 2019. Excluding Salem, the Exelon-operated nuclear
plants at ownership achieved a 95.4% capacity factor for the second
quarter of 2020, compared with 95.1% for the second quarter of
2019. The number of planned refueling outage days in the second
quarter of 2020 totaled 92, compared with 56 in the second quarter
of 2019. There were no non-refueling outage days in the second
quarter of 2020 and 28 in the second quarter of 2019.
- Fossil and Renewables Operations: The Dispatch Match
rate for Generation’s fossil and hydro fleet was 97.4% in the
second quarter of 2020, compared with 99.7% in the second quarter
of 2019. The lower performance in the quarter was primarily due to
outages at gas units in Texas. Energy Capture for the wind and
solar fleet was 92.7% in the second quarter of 2020, compared with
96.0% in the second quarter of 2019. The lower performance in the
quarter was attributed to turbines in outage awaiting parts to
perform repairs.
- Financing Activities:
- On June 8, 2020, PECO issued $350 million of its First and
Refunding Mortgage Bonds, 2.80% Series due June 15, 2050. PECO used
the proceeds for general corporate purposes.
- On June 5, 2020, BGE issued $400 million of its 2.90% Senior
Notes due June 15, 2050. BGE used the proceeds to repay commercial
paper obligations and for general corporate purposes.
- On June 9, 2020, DPL issued $100 million of its First Mortgage
Bonds, 2.53% Series due June 9, 2030. DPL used the proceeds to
repay existing indebtedness and for general corporate
purposes.
- On July 1, 2020, DPL issued $78 million of its 1.05% Tax-Exempt
Bonds due January 1, 2031. DPL used the proceeds to repay existing
indebtedness.
- On June 2, 2020, ACE issued $23 million of its 2.25% Tax-Exempt
First Mortgage Bonds due June 1, 2029. ACE used the proceeds to
repay existing indebtedness.
- On June 9, 2020, ACE issued $100 million of its First Mortgage
Bonds, 3.24% Series due June 9, 2050. ACE used the proceeds to
repay existing indebtedness and for general corporate
purposes.
- On May 15, 2020, Generation issued $900 million of its 3.25%
Senior Notes due June 1, 2025. Generation used the proceeds to
repay existing indebtedness and for general corporate
purposes.
GAAP/Adjusted (non-GAAP) Operating Earnings
Reconciliation
Adjusted (non-GAAP) Operating Earnings for the second 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)
$
0.53
$
521
$
(61
)
$
39
$
39
$
94
$
476
Mark-to-Market Impact of Economic Hedging
Activities (net of taxes of $18 and $20, respectively)
(0.05
)
(51
)
—
—
—
—
(60
)
Unrealized Gains Related to Nuclear
Decommissioning Trust (NDT) Fund Investments (net of taxes of
$275)
(0.31
)
(305
)
—
—
—
—
(305
)
Asset Impairments (net of taxes of $7, $4
and $3, respectively)
0.02
19
11
—
—
—
8
Plant Retirements and Divestitures (net of
taxes of $2)
0.01
7
—
—
—
—
7
Cost Management Program (net of taxes of
$3, $1 and $2, respectively)
0.01
6
—
—
—
1
5
Change in Environmental Liabilities (net
of taxes of $0)
—
1
—
—
—
—
1
COVID-19 Direct Costs (net of taxes of
$10, $2, $2, $1 and $6, respectively)
0.03
27
—
5
4
3
16
Deferred Prosecution Agreement Payments
(net of taxes of $0)
0.20
200
200
—
—
—
—
Income Tax-Related Adjustments (entire
amount represents tax expense)
0.01
5
—
—
—
—
—
Noncontrolling Interests (net of taxes of
$20)
0.11
104
—
—
—
—
104
2020 Adjusted (non-GAAP) Operating
Earnings
$
0.55
$
536
$
150
$
44
$
43
$
98
$
252
Adjusted (non-GAAP) Operating Earnings for the second quarter of
2019 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
2019 GAAP Net Income
$
0.50
$
484
$
186
$
102
$
45
$
106
$
108
Mark-to-Market Impact of Economic Hedging
Activities (net of taxes of $22 and $20, respectively)
0.07
68
—
—
—
—
65
Unrealized Losses Related to NDT Fund
Investments (net of taxes of $28)
0.05
52
—
—
—
—
52
Asset Impairments (net of taxes of $1)
—
1
—
—
—
—
1
Plant Retirements and Divestitures (net of
taxes of $37 and $38, respectively)
(0.02
)
(24
)
—
—
—
—
(23
)
Cost Management Program (net of taxes of
$1, $0, $0, $0 and $1, respectively)
0.01
6
—
1
1
1
3
Litigation Settlement Gain (net of taxes
of $7)
(0.02
)
(19
)
—
—
—
—
(19
)
Noncontrolling Interests (net of taxes of
$3)
0.02
15
—
—
—
—
15
2019 Adjusted (non-GAAP) Operating
Earnings
$
0.60
$
583
$
186
$
103
$
46
$
107
$
202
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 2020
and 2019 ranged from 26.0% 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 47.4% and 35.1% for the three months
ended June 30, 2020 and 2019, respectively.
Webcast Information
Exelon will discuss second quarter 2020 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 2019 revenue of $34 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 Aug. 4, 2020.
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 expected or potential impact of the
novel coronavirus (COVID-19) pandemic, and the related responses of
various governments and regulatory bodies, our customers, and the
company, on our business, financial condition and results of
operations; any such forward-looking statements, whether concerning
the COVID-19 pandemic or otherwise, involve risks, assumptions and
uncertainties. 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' 2019 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 18, Commitments and Contingencies; (2) the Registrants' Second
Quarter 2020 Quarterly Report on Form 10-Q (to be filed on Aug. 4,
2020) 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 14, 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 June 30,
2020
Three Months Ended June 30,
2019
GAAP (a)
Non-GAAP Adjustments
GAAP (a)
Non-GAAP Adjustments
Operating revenues
$
7,322
$
(21
)
(b)
$
7,689
$
(38
)
(b)
Operating expenses
Purchased power and fuel
2,924
64
(b),(c)
3,225
(117
)
(b),(d)
Operating and maintenance
2,433
(280
)
(c),(d),(e),(f),(g),(m)
2,159
(2
)
(c),(d),(f),(l)
Depreciation and amortization
1,001
(4
)
(d)
1,079
(99
)
(d)
Taxes other than income taxes
411
—
418
—
Total operating expenses
6,769
6,881
Gain on sales of assets and
businesses
12
(4
)
(b),(d)
33
(33
)
(d)
Operating income
565
841
Other income and (deductions)
Interest expense, net
(427
)
23
(b),(h)
(409
)
14
(b)
Other, net
656
(569
)
(b),(i)
212
(68
)
(b),(d),(i)
Total other income and
(deductions)
229
(197
)
Income before income taxes
794
644
Income taxes
219
(262
)
(b),(c),(d),(f),(g),(h),(i)
144
9
(b),(c),(d),(f),(i),(l)
Equity in losses of unconsolidated
affiliates
(1
)
—
(6
)
—
Net income
574
494
Net income attributable to
noncontrolling interests
53
(103
)
(k)
10
(15
)
(k)
Net income attributable to common
shareholders
$
521
$
484
Effective tax rate(j)
27.6
%
22.4
%
Earnings per average common
share
Basic
$
0.53
$
0.50
Diluted
$
0.53
$
0.50
Average common shares
outstanding
Basic
976
972
Diluted
976
974
__________
(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)
Adjustment to exclude reorganization costs
related to cost management programs.
(d)
In 2020, adjustment to exclude accelerated
depreciation and amortization expenses associated with the early
retirement of certain fossil sites. In 2019, adjustment to exclude
net realized gains related to Oyster Creek's NDT fund investments
in conjunction with the Holtec sale on July 1, 2019 and a gain on
the sale of certain wind assets, partially offset by accelerated
depreciation and amortization expenses associated with the early
retirement of the TMI nuclear facility.
(e)
Adjustment to exclude a change in
environmental liabilities.
(f)
In 2020, adjustment to exclude an
impairment at ComEd related to the acquisition of transmission
assets and the impairment of certain wind assets at Generation. In
2019, adjustment to exclude other asset impairments.
(g)
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.
(h)
Adjustment to exclude income tax related
adjustments.
(i)
Adjustment to exclude the impact of net
unrealized gains and losses on Generation’s NDT fund investments
for Non-Regulatory and Regulatory Agreement Units. The impacts of
the Regulatory Agreement Units, including the associated income
taxes, are contractually eliminated, resulting in no earnings
impact.
(j)
The effective tax rate related to Adjusted
(non-GAAP) Operating Earnings is (9.7)% and 20.8% for the three
months ended June 30, 2020 and 2019, respectively.
(k)
Adjustment to exclude elimination from
Generation’s results of the noncontrolling interest related to
certain exclusion items, primarily related to the impact of
unrealized gains and losses on NDT fund investments at CENG.
(l)
Adjustment to exclude litigation
settlement gain.
(m)
Adjustment to exclude the payments that
ComEd will make under the Deferred Prosecution Agreement, which
ComEd entered into on July 17, 2020 with the U.S. Attorney’s Office
for the Northern District of Illinois.
Exelon
GAAP Consolidated Statements
of Operations and
Adjusted (non-GAAP) Operating
Earnings Reconciling Adjustments
(unaudited)
(in millions, except per share
data)
Six Months Ended June 30,
2020
Six Months Ended June 30,
2019
GAAP (a)
Non-GAAP Adjustments
GAAP (a)
Non-GAAP Adjustments
Operating revenues
$
16,069
$
(201
)
(b)
$
17,166
$
14
(b)
Operating expenses
Purchased power and fuel
6,791
16
(b)
7,778
(97
)
(b),(c),(d)
Operating and maintenance
4,637
(304
)
(c),(d),(e),(f),(g),(m)
4,347
55
(c),(d),(l)
Depreciation and amortization
2,023
(14
)
(d)
2,154
(199
)
(d)
Taxes other than income taxes
847
—
863
—
Total operating expenses
14,298
15,142
Gain on sales of assets and
businesses
13
(4
)
(b),(d)
36
(33
)
(d)
Operating income
1,784
2,060
Other income and (deductions)
Interest expense, net
(837
)
39
(b),(h)
(813
)
29
(b)
Other, net
(68
)
310
(i)
679
(426
)
(b),(d),(i)
Total other income and
(deductions)
(905
)
(134
)
Income before income taxes
879
1,926
Income taxes
(75
)
119
(b),(c),(d),(f),(g),(h),(i)
454
(130
)
(b),(c),(d),(i),(l)
Equity in losses of unconsolidated
affiliates
(4
)
—
(12
)
—
Net income
950
1,460
Net (loss) income attributable to
noncontrolling interests
(153
)
42
(k)
69
(82
)
(k)
Net income attributable to common
shareholders
$
1,103
$
1,391
Effective tax rate(j)
(8.5
)%
23.6
%
Earnings per average common
share
Basic
$
1.13
$
1.43
Diluted
$
1.13
$
1.43
Average common shares
outstanding
Basic
975
972
Diluted
976
973
__________
(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)
Adjustment to exclude reorganization costs
related to cost management programs.
(d)
In 2020, adjustment to exclude accelerated
depreciation and amortization expenses associated with the early
retirement of certain fossil sites. In 2019, adjustment to exclude
net realized gains related to Oyster Creek's NDT fund investments
in conjunction with the Holtec sale on July 1, 2019, a benefit
associated with a remeasurement in the first quarter 2019 of the
TMI asset retirement obligation and a gain on the sale of certain
wind assets in the second quarter of 2019, partially offset by
accelerated depreciation and amortization expenses associated with
the early retirement of the TMI nuclear facility.
(e)
Adjustment to exclude a change in
environmental liabilities.
(f)
Adjustment to exclude an impairment at
ComEd related to the acquisition of transmission assets and the
impairment of certain wind assets at Generation.
(g)
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.
(h)
Adjustment to exclude income tax related
adjustments.
(i)
Adjustment to exclude the impact of net
unrealized gains and losses on Generation’s NDT fund investments
for Non-Regulatory and Regulatory Agreement Units. The impacts of
the Regulatory Agreement Units, including the associated income
taxes, are contractually eliminated, resulting in no earnings
impact.
(j)
The effective tax rate related to Adjusted
(non-GAAP) Operating Earnings is 3.3% and 18.5% for the six months
ended June 30, 2020 and 2019, respectively.
(k)
Adjustment to exclude elimination from
Generation’s results of the noncontrolling interests related to
certain exclusion items, primarily related to the impact of
unrealized gains and losses on NDT fund investments at CENG.
(l)
Adjustment to exclude litigation
settlement gain.
(m)
Adjustment to exclude the payments that
ComEd will make under the Deferred Prosecution Agreement, which
ComEd entered into on July 17, 2020 with the U.S. Attorney’s Office
for the Northern District of Illinois.
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version on businesswire.com: https://www.businesswire.com/news/home/20200804005274/en/
Paul Adams Corporate Communications 410-245-8717
Emily Duncan Investor Relations 312-394-2345
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