Segment financial information for continuing operations for the three months ended March 31, 2014 and 2013 is as follows:


	Three Months Ended March 31, 2014
	Power Delivery		Pepco Energy Services		Corporate and Other (a)			PHI Consolidated
	*(millions of dollars)*
Operating Revenue	$	1,272	$	60	$	(2	)	$	1,330
Operating Expenses (b)		1,103		60		(6	)		1,157
Operating Income		169		—		4			173
Interest Expense		55		—		10			65
Other Income		12		—		1			13
Income Tax Expense (Benefit)		47		—		(1	)		46
Net Income (Loss) from Continuing Operations		79		—		(4	)		75
Total Assets (excluding Assets Held for Disposition)		13,438		286		1,279			15,003
Construction Expenditures	$	264	$	—	$	18		$	282

(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 Corporate and Other and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(2) million for Operating Revenue, $(1) million for Operating Expenses and $(1) million for Interest Expense.

(b)	Includes depreciation and amortization expense of $133 million, consisting of $124 million for Power Delivery, $2 million for Pepco Energy Services and $7 million for Corporate and Other.


	Three Months Ended March 31, 2013
	Power Delivery		Pepco Energy Services		Corporate and Other (a)			PHI Consolidated
	*(millions of dollars)*
Operating Revenue	$	1,124	$	56	$	—		$	1,180
Operating Expenses (b)		1,001		54		(8	)		1,047
Operating Income		123		2		8			133
Interest Expense		56		—		11			67
Other Income		6		1		1			8
Income Tax Expense (c)		15		1		169	(d)		185
Net Income (Loss) from Continuing Operations		58		2		(171	)		(111	)
Total Assets (excluding Assets Held for Disposition)		12,453		346		1,965			14,764
Construction Expenditures	$	282	$	1	$	13		$	296

(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 Corporate and Other and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of zero for Operating Revenue, $(1) million for Operating Expenses and $(4) million for Interest Expense.

(b)	Includes depreciation and amortization expense of $112 million, consisting of $104 million for Power Delivery, $2 million for Pepco Energy Services and $6 million for Corporate and Other.

(c)	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 $66 million for Corporate and Other.

(d)	Includes non-cash charges of $101 million representing the establishment of valuation allowances against certain deferred tax assets of PCI included in Corporate and Other.