Segment financial information for the three and nine months ended September 30, 2015 and 2014 are as follows:


	Three Months Ended September 30, 2015
	Power Delivery		Pepco Energy Services			Corporate and Other (a)			PHI Consolidated
	*(millions of dollars)*
Operating Revenue	$	1,316	$	47		$	(1	)	$	1,362
Operating Expenses (b)		1,131		49			(1	)		1,179
Operating Income (Loss)		185		(2	)		—			183
Interest Expense		59		—			12			71
Other Income		11		—			17	(c)		28
Income Tax Expense (Benefit)		49		(2	)		2			49
Net Income		88		—			3			91
Total Assets		14,330		218			2,009			16,557
Construction Expenditures	$	286	$	—		$	7		$	293

(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 $(1) million for Operating Revenue, $1 million for Operating Expenses and $(1) million for Interest and Dividend Income.

(b)	Includes depreciation and amortization expense of $178 million, consisting of $165 million for Power Delivery, $1 million for Pepco Energy Services and $12 million for Corporate and Other.

(c)	Includes $15 million ($10 million after-tax) increase in fair value of preferred stock derivative.


	Three Months Ended September 30, 2014
	Power Delivery		Pepco Energy Services			Corporate and Other (a)			PHI Consolidated
	*(millions of dollars)*
Operating Revenue	$	1,242	$	73		$	(2	)	$	1,313
Operating Expenses (b)		1,021		126	(c)		—			1,147
Operating Income (Loss)		221		(53	)		(2	)		166
Interest Expense		58		1			9			68
Other Income		14		1			—			15
Income Tax Expense (Benefit)		65		(26	)		(5	)		34
Net Income (Loss)		112		(27	)		(6	)		79
Total Assets		13,697		255			1,346			15,298
Construction Expenditures	$	272	$	1		$	20		$	293

(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, $(2) million for Interest Expense and $(2) million for Interest Income.

(b)	Includes depreciation and amortization expense of $145 million, consisting of $135 million for Power Delivery, $2 million for Pepco Energy Services and $8 million for Corporate and Other.

(c)	Includes an impairment loss of $53 million ($32 million after-tax) at Pepco Energy Services associated with its combined heat and power thermal generating plant and operation assets in Atlantic City.


	Nine Months Ended September 30, 2015
	Power Delivery		Pepco Energy Services			Corporate and Other (a)			PHI Consolidated
	*(millions of dollars)*
Operating Revenue	$	3,707	$	170		$	(4	)	$	3,873
Operating Expenses (b)		3,238		172			(1	)		3,409
Operating Income (Loss)		469		(2	)		(3	)		464
Interest Expense		177		—			33			210
Other Income		32		—			17	(c)		49
Income Tax Expense (Benefit)		113		(7	)		—			106
Net Income (Loss)		211		5			(19	)		197
Total Assets		14,330		218			2,009			16,557
Construction Expenditures	$	832	$	2		$	21		$	855

(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 $(4) million for Operating Revenue, $(4) million for Operating Expenses, $(2) million for Interest Expense and $(5) million for Interest and Dividend Income.

(b)	Includes depreciation and amortization expense of $494 million, consisting of $459 million for Power Delivery, $2 million for Pepco Energy Services and $33 million for Corporate and Other.

(c)	Includes $15 million ($10 million after-tax) increase in fair value of preferred stock derivative.


	Nine Months Ended September 30, 2014
	Power Delivery		Pepco Energy Services			Corporate and Other (a)			PHI Consolidated
	*(millions of dollars)*
Operating Revenue	$	3,554	$	212		$	(6	)	$	3,760
Operating Expenses (b)		3,005		263	(c)		2			3,270
Operating Income (Loss)		549		(51	)		(8	)		490
Interest Expense		169		1			30			200
Other Income		39		2			1			42
Income Tax Expense (Benefit)		157		(25	)		(7	)		125
Net Income (Loss)		262		(25	)		(30	)		207
Total Assets		13,697		255			1,346			15,298
Construction Expenditures	$	789	$	2		$	55		$	846

(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 $(6) million for Operating Revenue, $(5) million for Operating Expenses, $(2) million for Interest Expense and $(3) million for Interest Income.

(b)	Includes depreciation and amortization expense of $410 million, consisting of $381 million for Power Delivery, $6 million for Pepco Energy Services and $23 million for Corporate and Other.

(c)	Includes an impairment loss of $53 million ($32 million after-tax) at Pepco Energy Services associated with its combined heat and power thermal generating plant and operation assets in Atlantic City.