Segment financial information for continuing operations for the three and six months ended June 30, 2013 and 2012 is as follows:


	Three Months Ended June 30, 2013
	*(millions of dollars)*
	Power Delivery		Pepco Energy Services		Other Non- Regulated			Corporate and Other (a)			PHI Consolidated
Operating Revenue	$	1,006	$	49	$	3		$	(5	)	$	1,053
Operating Expenses (b)		866		47		18			(10	)		921
Operating Income (Loss)		140		2		(15	)		5			132
Interest Income		—		—		1			(1	)		—
Interest Expense		58		—		—			12			70
Other Income		7		—		—			1			8
Income Tax Expense (Benefit)		33		1		1			(3	)		32
Net Income (Loss) from Continuing Operations		56		1		(15	)		(4	)		38
Total Assets (excluding Assets Held for Disposition)		12,535		350		765			1,325			14,975
Construction Expenditures	$	281	$	—	$	—		$	39		$	320

(a)

Total Assets in this column includes Pepco Holdings’ goodwill balance of $1.4 billion, all of which is allocated to Power Delivery for purposes of assessing impairment. Total assets also include capital expenditures related to certain hardware and software expenditures which primarily benefit Power Delivery. These expenditures are recorded as incurred in the Corporate and Other segment and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(5) million for Operating Revenue, $(5) million for Operating Expenses and $(2) million for Interest Income.

(b)	Includes depreciation and amortization expense of $116 million, consisting of $107 million for Power Delivery, $2 million for Pepco Energy Services, $1 million for Other Non-Regulated and $6 million for Corporate and Other.


	Three Months Ended June 30, 2012
	*(millions of dollars)*
	Power Delivery		Pepco Energy Services			Other Non- Regulated		Corporate and Other (a)			PHI Consolidated
Operating Revenue	$	984	$	76		$	14	$	(4	)	$	1,070
Operating Expenses (b)		860		77	(c)		2		(6	)		933
Operating Income (Loss)		124		(1	)		12		2			137
Interest Income		—		—			1		(1	)		—
Interest Expense		53		—			4		8			65
Other Income		8		—			—		2			10
Income Tax Expense		25		—			2		2			29
Net Income (Loss) from Continuing Operations		54		(1	)		7		(7	)		53
Total Assets (excluding Assets Held for Disposition)		11,734		480			1,499		1,652			15,365
Construction Expenditures	$	285	$	5		$	—	$	8		$	298

(a)

Total Assets in this column includes Pepco Holdings’ goodwill balance of $1.4 billion, all of which is allocated to Power Delivery for purposes of assessing impairment. Total assets also include capital expenditures related to certain hardware and software expenditures which primarily benefit Power Delivery. These expenditures are recorded as incurred in the Corporate and Other segment and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(4) million for Operating Revenue, $(1) million for Operating Expenses, $(6) million for Interest Income and $(5) million for Interest Expense.

(b)	Includes depreciation and amortization expense of $111 million, consisting of $100 million for Power Delivery, $4 million for Pepco Energy Services and $7 million for Corporate and Other.

(c)	Includes impairment losses of $3 million associated primarily with Pepco Energy Services’ investment in a landfill gas-fired electric generation facility.


	Six Months Ended June 30, 2013
	*(millions of dollars)*
	Power Delivery		Pepco Energy Services		Other Non- Regulated			Corporate and Other (a)			PHI Consolidated
Operating Revenue	$	2,130	$	106	$	(365	)(b)	$	(6	)	$	1,865
Operating Expenses (c)		1,867		101		18			(17	)		1,969
Operating Income (Loss)		263		5		(383	)		11			(104	)
Interest Income		—		—		2			(2	)		—
Interest Expense		114		—		1			22			137
Other Income		13		1		1			1			16
Preferred Stock Dividends		—		—		1			(1	)		—
Income Tax Expense (d)		48		2		54	(e)		63			167
Net Income (Loss) from Continuing Operations		114		4		(436	)		(74	)		(392	)
Total Assets (excluding Assets Held for Disposition)		12,535		350		765			1,325			14,975
Construction Expenditures	$	563	$	1	$	—		$	52		$	616

(a)

Total Assets in this column includes Pepco Holdings’ goodwill balance of $1.4 billion, all of which is allocated to Power Delivery for purposes of assessing impairment. Total assets also include capital expenditures related to certain hardware and software expenditures which primarily benefit Power Delivery. These expenditures are recorded as incurred in the Corporate and Other segment and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(6) million for Operating Revenue, $(6) million for Operating Expenses, $(5) million for Interest Income, $(4) million for Interest Expense and $(1) million for Preferred Stock Dividends.

(b)	Includes a non-cash pre-tax charge of $373 million to reduce the carrying value of the cross-border energy lease investments.

(c)	Includes depreciation and amortization expense of $228 million, consisting of $211 million for Power Delivery, $4 million for Pepco Energy Services, $1 million for Other Non-Regulated and $12 million for Corporate and Other.

(d)

Includes after-tax interest associated with uncertain and effectively settled tax positions allocated to each member of the consolidated group, including a $12 million interest benefit for Power Delivery and interest expense of $16 million and $66 million for Other Non-Regulated and Corporate and Other, respectively.

(e)

Includes non-cash charges of $64 million primarily for the tax consequences associated with PHI’s change in intent regarding foreign investment opportunities associated with the cross-border energy lease investments and $101 million representing the establishment of valuation allowances against certain deferred tax assets of PCI included in Other Non-Regulated.


	Six Months Ended June 30, 2012
	*(millions of dollars)*
	Power Delivery		Pepco Energy Services			Other Non- Regulated		Corporate and Other (a)			PHI Consolidated
Operating Revenue	$	2,039	$	148		$	27	$	(8	)	$	2,206
Operating Expenses (b)		1,814		145	(c)		3		(19	)		1,943
Operating Income		225		3			24		11			263
Interest Income		—		—			2		(2	)		—
Interest Expense		106		1			7		16			130
Other Income		16		—			1		1			18
Preferred Stock Dividends		—		—			1		(1	)		—
Income Tax Expense		34		1			2		1			38
Net Income (Loss) from Continuing Operations		101		1			17		(6	)		113
Total Assets (excluding Assets Held for Disposition)		11,734		480			1,499		1,652			15,365
Construction Expenditures	$	565	$	10		$	—	$	14		$	589

(a)

Total Assets in this column includes Pepco Holdings’ goodwill balance of $1.4 billion, all of which is allocated to Power Delivery for purposes of assessing impairment. Total assets also include capital expenditures related to certain hardware and software expenditures which primarily benefit Power Delivery. These expenditures are recorded as incurred in the Corporate and Other segment and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(8) million for Operating Revenue, $(7) million for Operating Expenses, $(11) million for Interest Income, $(10) million for Interest Expense and $(1) million for Preferred Stock Dividends.

(b)	Includes depreciation and amortization expense of $221 million, consisting of $199 million for Power Delivery, $10 million for Pepco Energy Services, $1 million for Other Non-Regulated and $11 million for Corporate and Other.

(c)	Includes impairment losses of $3 million associated primarily with Pepco Energy Services’ investment in a landfill gas-fired electric generation facility.