Segment financial information for continuing operations at and for the years ended December 31, 2014, 2013 and 2012, is as follows:


	Year Ended December 31, 2014
	Power Delivery		Pepco Energy Services			Corporate and Other (a)			PHI Consolidated
	*(millions of dollars)*
Operating Revenue	$	4,607	$	278		$	(7	)	$	4,878
Operating Expenses (b)		3,916		354	(c)		4			4,274
Operating Income (Loss)		691		(76	)		(11	)		604
Interest Expense		226		1			41			268
Other Income		40		2			2			44
Income Tax Expense (Benefit)		185		(36	)		(11	)		138
Net Income (Loss) from Continuing Operations		320		(39	)		(39	)		242
Total Assets		13,719		244			1,704			15,667
Construction Expenditures	$	1,144	$	3		$	76		$	1,223

(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 $(7) million for Operating Revenue, $(7) million for Operating Expenses and $(4) million for Interest Expense.

(b)	Includes depreciation and amortization expense of $549 million, consisting of $511 million for Power Delivery, $7 million for Pepco Energy Services and $31 million for Corporate and Other.

(c)	Includes impairment losses of $81 million ($48 million after-tax) associated with Pepco Energy Services’ combined heat and power thermal generating facilities and operations in Atlantic City.


	Year Ended December 31, 2013
	Power Delivery		Pepco Energy Services			Corporate and Other (a)			PHI Consolidated
	*(millions of dollars)*
Operating Revenue	$	4,472	$	203		$	(9	)	$	4,666
Operating Expenses (b)		3,828		201	(c)		(31	)		3,998
Operating Income		644		2			22			668
Interest Expense		228		1			44			273
Other Income		28		3			3			34
Income Tax Expense (d)		155		1			163	(e)		319
Net Income (Loss) from Continuing Operations		289		3			(182	)		110
Total Assets		13,027		335			1,486			14,848
Construction Expenditures	$	1,194	$	4		$	112		$	1,310

(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 $(10) million for Operating Revenue, $(9) million for Operating Expenses and $(5) million for Interest Expense.

(b)	Includes depreciation and amortization expense of $473 million, consisting of $439 million for Power Delivery, $6 million for Pepco Energy Services and $28 million for Corporate and Other.

(c)	Includes impairment losses of $4 million ($3 million after-tax) associated with Pepco Energy Services’ landfill gas-fired electric generation facility.

(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 $66 million for Corporate and Other.

(e)	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.


	Year Ended December 31, 2012
	Power Delivery		Pepco Energy Services			Corporate and Other (a)			PHI Consolidated
	*(millions of dollars)*
Operating Revenue	$	4,378	$	256	(b)	$	(9	)	$	4,625
Operating Expenses (c)		3,847		271	(b)(d)		(34	)		4,084
Operating Income (Loss)		531		(15	)		25			541
Interest Income		1		1			(1	)		1
Interest Expense		219		2			35			256
Impairment Losses		—		—			(1	)		(1	)
Other Income		32		1			3			36
Income Tax Expense (Benefit)		110		(7	)		—			103
Net Income (Loss) from Continuing Operations		235		(8	)		(9	)		218
Total Assets (excluding Assets Held for Disposition)		12,149		342			2,028			14,519
Construction Expenditures	$	1,168	$	11		$	37		$	1,216

(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 $(11) million for Operating Revenue, $(10) million for Operating Expenses, $(21) million for Interest Income and $(18) million for Interest Expense.

(b)	Includes $9 million of intra-company revenues (and associated costs) previously eliminated in consolidation which will continue to be recognized from third parties subsequent to the completion of the wind-down of the Pepco Energy Services’ retail electric and natural gas supply businesses.

(c)	Includes depreciation and amortization expense of $454 million, consisting of $416 million for Power Delivery, $14 million for Pepco Energy Services and $24 million for Corporate and Other.

(d)	Includes impairment losses of $12 million ($7 million after-tax) associated primarily with investments in Pepco Energy Services’ landfill gas-fired electric generation facilities and its combustion turbines at Buzzard Point.